U2K2 Training Integrated financial planning

Date : 10 Sep 2010

Financial planning Overview - Agenda

Introduction
Facilitator Introduction

House Rules
Training Objectives Accessing SAP Productivity Pak

Course Overview

Financial planning training

Summary Questions & Answers

Facilitator Introduction

Role at Unilever Role in the U2K2 Program

House Rules
Cell Phones on silent Designated Smoking Areas

Restrooms

Emergency Exits

Questions

Parking Lot

U2K2s Enhanced Learning Approach

U2K2 utilizes a multi-step, enhanced learning and certification approach to prepare employees to perform their new responsibilities at Go-Live.
Focus Groups
(Changes, Process Improvements, SOPs)
1

Processed-Based SAP Training

2

Learning Labs

Business Simulations
Unity 2AA Financial Accounting Detailed Process Flow FI020-010 Logistics Invoice Verification Roles FSS Clerk

SAP & BW Navigation Training Materials Training (eLearning)

Start Process

Invoices in Omniflow?
No

Yes

Select SAP transaction code & Enter remaining invoice details in SAP Control 3,4 Yes

Page 2.2

Risk 1, 2

Page 5.1

Invoice match with PO/GR?

No

Post as Parked Invoice ?

No

Post Invoice (Tcode : MIRO /MRKO )

Process Page 2.1

Yes

Quantity variance?
No

Yes Yes Park Invoice (Tcode : MIR7)

Omniflow
Data will be Database sent online to Omniflow via Interface

Page 3.1

RWD Application Hands-On SAP Simulations Practice Environment

Notes

Price Variance within tolerance ?

No

Page 4.3

Inform Buyer / Vendor and FSS Clerk

Filename: VisioDocument Status: FINAL

Page: 2 of 10 Confidential

U2K2 Passports
(users must be certified before they obtain SAP IDs)
Knowledge Assessment Skill Assessment

Training Objectives
The objective of U2K2 End User Training is to ensure Unilever staff are equipped with the skills and knowledge to perform his/her business role using the U2K2 system and processes. This course will enable you to: Understand the concept of Controlling in SAP. Explain new SAP terminology related to Controlling. Understand the integration of Controlling to other areas.

Introduction to RWD uPerform (SAP Help Documents)

During this training session we will be using RWD uPerform to practice SAP transactions. RWD uPerform is an SAP training delivery and performance support tool that provides you with a variety of documents types, such as Work Instructions or Application Simulations. These documents serve as a supplement to your SAP training and as a reference guide when executing your transactions in SAP after Go-Live. There are two ways to access SAP Help uPerform documents: Before Go-Live: via the following URL : http://cgtsapp20518.s2.ms.unilever.com. After Go-Live: via the following URL : http://cgtsapp20518.s2.ms.unilever.com and for ECC modules via the Unity2AA Help option in the SAP Help menu as well.
7

Introduction to RWD uPerform (SAP Help Documents)

uPerform provides end users with SAP Help Documents such as Work Instructions, Cue Cards and Simulations.
Document Type
Work Instruction (WI) Cue Card Simulation (SIM)

Description
Step-by-step guide on how to complete a specific transaction in SAP with screenshots - available in MS Word or xhtml format Work Instruction without screenshots - available in xhtml format Flash video - available in playback and assessment mode

Work Instruction and Cue Card

Application Simulation
8

How to access RWD uPerform documents

1. Access via RWD uPerform Server Accessed via Internet Explorer Available before and after go-live Access via SAP Context Sensitive Help Accessed via SAP Main Menu in Production Environment Available only after go-live 2.

How to access RWD uPerform documents Access via RWD uPerform Server
Note: The Search Functionality will be available before and after Go-Live.
1. Open your internet browser and enter the following URL to connect to the uPerform enduser page: http://cgtsapp20518.s2.ms.unilever.com/gm/workplace The screenshot below shows the starting page of the uPerform enduser website.

2.

U2K2 Vietnam

How to access RWD uPerform documents Access via RWD uPerform Server
3. Click on the Search field in the upper right corner of the screen. Type in the t-code and the acronym of your country* in the following order <t-code>, <country acronym> For Example: VA01, VN

4.

Press the Enter key or click the Go button

to start the search.

* ANZ = Australia/New Zealand, GC = Greater China, JPN = Japan, MYSG = Malaysia/Singapore, THL = Thailand, ID = Indonesia, SA = South Africa, UAPL = Unilever Asia Private Limited, VN = Vietnam

How to access RWD uPerform documents Access via RWD uPerform Server
5. uPerform lists the search results by country* and t-code description. Access only uPerform documents that are available for your country.

Search Results

Naming convention for documents: t-code country t-code description_language.

* ANZ = Australia/New Zealand, GC = Greater China, JPN = Japan, MYSG = Malaysia/Singapore, THL = Thailand, ID = Indonesia, SA = South Africa, UAPL = Unilever Asia Private Limited, VN = Vietnam

How to access RWD uPerform documents Access via RWD uPerform Server
6. For Vietnam all uPerform documents are available in English language with English SAP GUI. Some Work Instructions are also available in Vietnamese and will be identified as VN Here the naming convention (example): VA01 VN Create Sales Order_EN VA01 VN Create Sales Order_VN (English) (Vietnamese)

* ANZ = Australia/New Zealand, GC = Greater China, JPN = Japan, MYSG = Malaysia/Singapore, THL = Thailand, ID = Indonesia, SA = South Africa, UAPL = Unilever Asia Private Limited, VN = Vietnam

How to download Work Instructions

1.

Access the uPerform enduser website as usual via the following link: http://cgtsapp20518.s2.ms.unilever.com/gm/workplace Choose the document that you would like to download.

2.

* ANZ = Australia/New Zealand, GC = Greater China, JPN = Japan, MYSG = Malaysia/Singapore, THL = Thailand, ID = Indonesia, SA = South Africa, UAPL = Unilever Asia Private Limited, VN = Vietnam

How to download Work Instructions

3.

Choose the following option in the drop-down menu at the top right corner: Work Instruction (Microsoft Word (DOC))

How to download Work Instructions

4.

The following window will pop-up:

4.

Press the Save button to save the Work Instruction on your PC.

How to access RWD uPerform documents

1. Access via RWD uPerform Server Accessed via Internet Explorer Available before and after go-live Access via SAP Context Sensitive Help Accessed via SAP Main Menu in Production Environment Available only after go-live 2.

Searching for help Note: Context Sensitive Help will only be available from Go-Live documents onwards and therefore is not accessible via the Training Environment. Access via SAP with your SAP User ID Log in to the R1P (Production) Environment and Password: Context Sensitive Help
1.

2.

Enter the t-code in the command field or access it via the SAP Easy Access Menu.

3.

Searching for help Click on the Help > Unity2AA Help menu item. documents Access via SAP Context Sensitive Help
An Internet Explorer window opens up and lists all the help documents that are available for your t-code, e.g.: VA01 VN Create Sales Order VA01 VN Create Return Sales Order VA01 VN Create a Debit Memo
Should there be only 1 help document available for a particular tcode, SAP context sensitive help will open this document directly for you. Note: Choose only documents that are available for your country.

4.

Financial planning Overview - Agenda

Introduction Course Overview
U2K2 Training Structure
Course Structure

Financial planning training Summary Questions & Answers

20

U2K2 Training Structure

Introduction to SAP and U2K2, and Business Process overview Basic PC Literacy Training (as required) SAP & BW Navigation Skills Training (e-learning) Detailed Process Training

Role Specific Transactional Training

Learner Competency Assessment

U2K2 training consists of 4 phases This course is the fourth phase of training: you should have completed the other training activities prior to attending todays session. The fourth phase of training is facilitated classroom based learning, supported by: Process Training Materials Transactional Training Materials
System simulations Work instructions & cue cards

On-line simulated competency assessments

Course structure
Integrated Financial planning overview Operational planning overview
SU Operational planning MSO Operational planning UAPL Operational planning

Monthly rolling forecast - overview

SU monthly rolling forecast MSO monthly rolling forecast UAPL monthly rolling forecast

Glossary of SAP Terminologies

ECC - Enterprise Core Component (R/3, Transactional System) - Business Intelligence - Integrated Planning (Financial Planning Tool in SAP)

BI-IP

APO

- Advanced Planning and Optimizing (Demand Planning Tool)

- Profitability Analysis (module in ECC) - Figures used for planning in CO-PA

PA

PA Value Field

Financial planning overview - Agenda

Introduction Course Overview

Financial planning training

Summary Questions & Answers

24

U2K2 - Business requirements

To have a planning process aligned with regional S&OP process & calendar. Functionality which can be integrated with regional applications (APO, ECC SD, CCA, PC, PA & BW) to perform - Split financial planning for SU UAPL MSO and consolidating to CMSO and FVC plan/forecast. - SU transfer price computation. - UAPL transfer price computation.

2 legs of Integrated financial planning

Operational Plan (OP) Performed quarterly Transfer prices are a key output of OP OP results are not submitted to the region Systems used: APO, ECC (SD, CCA, PC, PA) BI-IP & BW Monthly Rolling Fcst (MRF) Performed monthly Reads values from OP Results submitted to region monthly Systems used: APO, ECC PC, BI-IP & BW

Product Hierarchy
Division Sub Division Category Market (Sub Category) Brand Sector Corp Prod Group Sub Brand Base Pack SKU
examples

HPC Category PC Mass Hair Care Wash & Care Dove Shampoo Dove Shampoo Dove Moisture Therapy
Dove Moisture Therapy 125g
Dove Moisture Therapy (12X125g)

Customer Hierarchy
Key customer classification Trade Format classification Consumption Occassion classification

Values: 3rd Party / Concerns Values: Key Customer/Others Regional CBEs

In Home / Out of Home / Others

Values: Global KC/ Regional KC / Local KC / Others

Values: MT / DT / FS Direct / Others / Domestic Concerns / Export Concerns

In Home / Out of home / Others

Values: names of Key customers / Others

Values: MT / DT / FS Direct / 3PE, Institutional customers, Others / Domestic Concerns / Export Concerns

(Generic) Shop Formats (around 25 Formats) / Others

Banners for key customers / Local Customer (Sold to) Banners will be populated through Planetretail.net (wherever available). Other banners / Local Customers will be locally populated

(Local) Shop Formats 1 Local Sales Regions (4 Levels) Local Sales Workforce (4 Levels)

Local Level 1 (Customer wise information) Local CBE (Local) Shop Formats 2

Local Level 2 (Customer wise information)

Ship to, Bill to, Pay to, Sold to

Customer Store

RTM Partner identification for secondary sales information (in BW only)

Operational Planning
Operational Planning is performed quarterly
OP
OP 1 OP 2 OP 3 OP 4

When performed?
Nov Dec 2009 Feb Mar 2010 May Jun 2010 Aug Sep 2010

For what period?

Jan 2010 Dec 2010 Apr 2010 Dec 2010 Jul 2010 Dec 2011 Oct 2010 Dec 2011

No. of quarters planned

4 quarters 3 quarters 6 quarters 5 quarters

Integrated regional calendar

MONTH WEEK Feb / May / Aug / Nov Mar / Jun / Sep / Dec

1
Demand & supply planning

2
Regional Category Demand and Supply Reconciliation

3
MSO Demand & Supply reconciliation meeting

4
Business Unit Meeting

1
Demand & supply planning

2
Regional Category Demand and Supply Reconciliation

3
MSO Demand & Supply reconciliation meeting

4
Business Unit Meeting

S & OP

Board & S&OP meeting

Price forecast released to countries on 18th of every month

Board & S&OP meeting

RSM

RSM releases RM/PM price forecast

SU-transfer price released to UAPL / MSO on 10th Mar / Jun / Sep / Dec

UAPL transfer price released to MSO on 22nd Mar / Jun / Sep / Dec

SU MSO Operational planning activities

SU - MSO Operational planning activities

OP

UAPL Operational planning activities

MEC

Month end close & reporting

For FS countries, actuals data required for UAPL-TP computation

MRF

SU MSO Monthly forecast activities for Mar / Jun / Sep / Dec

SU MSO Monthly forecast activities for Apr / Jul / Oct / Jan

Regional S&OP Calendar - I/Os

1 24 months
Demand Planning Meeting Regional Category Demand and Supply Reconciliation MSO Demand and Supply Reconciliation Meeting Rough cut gap filling

Supply Planning
Supply Capability Review

Business Unit Meeting

Board S&OP Meeting

UDP CSP (APO)

UDP CSP (APO)

Flexed volume (BI-IP)

Load to BI-IP

Run CashUp

Load to BI-IP

Run CashUp

Flexing on BI-IP

Week 1

Week 2

Week 3 Month 1

Week 4/5

Every Month 3

Transfer Price Calculation on BI-IP

TP for ECC Actuals

Full scope model - Interdependencies

SU UAPL MSO

SU Operational Planning

MSO Operational Planning

SU Volume

MSO Volume

SU Transfer Price

UAPL Operational Plan

MSO Plan & actuals

UAPL Transfer Price

MSO Operational Planning

FULL VALUE CHAIN REPORTING

Limited scope model - interdependencies

MSO operational planning
SU-TP (for export FGs)

SU operational planning

SU volumes & SU-TP (for export FGs)

UAPL-CBS FVC P&L (SU+MSO)

UAPL-TP (for import FGs)

SU-TP (for local FGs)

MSO-P&L

SU-P&L

Supply chain P&L CMSO P&L (MSO+UAPL-FG)

Residual profits

UAPL-CBS P&L

Total FVC P&L (SU+MSO+UAPL)

SU Operational planning

SU Operational planning

Extract volumes from APO

RM / PM price forecast

Production costs planning

Product costing

Manual entries in BI-IP

Cost centre allocation

Cost centre planning for supply costs & indirects

COGS valuation

Top-down to SKU

Flexing

Transfer price computation

TC calculation

Process flow links to ARIS

Volumes extraction from APO Product cost planning Cost center planning - production costs Cost center planning - supply costs Profitability analysis functionality SU transfer price computation

APO Inputs - Volumes

SU
Plan from APO Time Horizon Time Bucket Frequency Granularity Unit of Measure Key figures Constrained Production Plan
Next 78 weeks rolling (6 quarters rolling)

Gregorian month Monthly SKU Plant Cases Total distribution receipt (STR/STO from SU -> UAPL/MSO) + Forecast minus unfulfilled demand (direct SU sales)

APO has the capability to project ending stocks per month, but this is not interfaced to BI-IP yet.

Limited scope model 1: China model

SU - China
Production 100 units

MSO - China
Sales to 3P customers 60 units

Exports to MSO-TH 15 units

Stock 5 units

Sales to MSO-China 80 units

Stock 20 units
in BI-IP

in BI-IP

From SNP 95 units

From DP 60 units

SU & MSO are 2 separate legal entities in the country. Volumes from SNP will be used for SU planning. Volumes from DP will be used for MSO planning.

Limited scope model 2 : Indonesia model

SU - Indonesia
Production 100 units

MSO - Indonesia
Sales to 3P customers 60 units

Exports to MSO-TH 15 units

Stock 25 units

Sales to MSO-ID 60 units

in BI-IP

in BI-IP

From SNP 15 units From DP 60 units

From DP 60 units

SU & MSO are under the same legal entity DP volumes will be used for MSO planning. DP volumes from MSO will be copied to SU for planning SU sales to MSO. Volumes from SNP will be used for exports by SU to other countries.

Full scope model Thailand model

Details SU-TH In-country sales SKU-A Produces 100 units Buys Sells 100 units Sells Stock in BI-IP 100 units in BI-IP Exports through UAPL SU-TH SKU-A Produces 100 units Buys Sells 60 units Sells Stock 40 units in BI-IP 60 units in BI-IP Imports through UAPL SU-ID SKU-B Produces 100 units Buys Sells Stock in BI-IP 60 units 60 units 40 units in BI-IP 60 units in BI-IP 60 units Sells UAPL-TH 100 units 60 units 40 units 60 units Sales MSO-TH 60 units

DP volumes will be used for MSO & UAPL planning. SNP volumes will be used for SU planning.

in BI-IP 60 units MSO-ID 60 units

UAPL-CBS 60 units Sales 60 units

60 units

in BI-IP

60 units MSO-TH 60 units

UAPL-CBS 60 units Sales 60 units

RM/PM price forecast

Manual process Regional Supply Management (RSM) releases RM/PM price forecast on 18th of every month to all SUs. National supply management (NSM) adds local charges like duties, taxes, etc to price forecast received. Final RM/PM prices updated in a template and uploaded into ECC.

Production costs calculation

Run long term planning (LTP) to estimate activity quantities based on production volumes from SNP
Production costs Labor Depreciation Utilities Repairs & maintenance Other production services Production Indirects Sub-contracting Nature of costs Fixed Fixed Variable Fixed Fixed Fixed Variable

Production costs planned in production cost centers.

Activity prices computed based on planned production costs and planned activity quantities. SU-TP computation during operational planning is based on activity prices fixed based on annual volume commitments (OP-1).

Product cost estimate

Calculated in ECC PC by SKU/plant quarterly as below
Routing Avtivity Quantities Labor Machine Utility Depreciation ECC BOM Material Quantities RM PM

PCE quarterly

Production Cost Centers Activity Prices Labor Machine Utility Depreciation Purchase Information Record (PIR) Sub-contracting fee

Material Price Table RM, PM costs for eight quarters

COGS valuation
PCE data extracted to BI-IP To see loaded PCE data use query ZIP_CPCE_Q0001

COGS valuation
Execute process chain to valuate COGS in BI-IP COGS = Volumes * PCE extracted

Supply costs planning

Supply costs Warehouse storage & handling Buying & planning Basis of allocation & top down distribution Volumes (pallets) Product cost

Costs are fixed in nature Planned using cost centre planning in ECC. Allocation cycles maintained in ECC. Costs planned and allocation cycles in ECC extracted to BI-IP by Local IT. Cost center allocation done in BI-IP Top down distribution done to SKU level.

Supply support costs (inc. HR/Fin/IT)

Other supply support RM/PM/spare write off FG write off

Product cost
Product cost Product cost Product cost

Supply costs planning

Transport inbound
Upload distribution costs (same template as used for list price / TTS in MSO) check upload (ZIP_MCOND_Q001 PA conditions) Valuate transport inbound.

C:\Unilever\ Templates\Condition Upload Template (AU).x

Manual entries
Supply costs Allocated charges supply chain Data entry level Market Gross Capital employed Fixed assets Data entry level Category

Stocks
Creditors Restructuring

Category
Category Category

Manual entries workbook used (WB_Manual entries SU) / upload templates used. All manual entries top down distributed to SKU level

Manual Cost Entries

Step 1. Click on drop down, select related Key figures from drop box menu

Step 4. Save Data

Step 3. Perform the manual entries at market level

Step 2. Select the required allocated charges for manual entries.

Top down distribution - SU

P&L details RM cost PM cost Production costs Supply costs Intercompany revenue Gross Profit Indirects Trading Result Finance Charge

Entry Level
material level material level SKU by Plant

IT System
ECC ECC ECC

Allocation Key
n/a n/a n/a

Level after Allocation

SKU SKU SKU

Cost Center Level

ECC & BI-IP for SC indirects, BI-IP for IWC

Product cost

SKU

SKU by Plant

ECC

n/a

SKU

Calculated

BI-IP ECC BIIP BIIP TC calc

n/a Product cost n/a n/a

SKU SKU SKU SKU

Cost Center Level

Calculated Calculated

Trading Tax
Trading Contribution GCE

Calculated

BIIP TC calc

n/a

SKU

Calculated

BIIP TC calc

n/a

SKU

Category Level

BIIP Manual Entry

Product cost

SKU

IWC, Trading tax & FC

Automated calculation in BI-IP % for calculating IWC, trading tax and FC provided by user and maintained by the RAC in a table ZIP_VARIABLES IWC = Trade working capital * % maintained TWC = Debtors + Stock + Creditors + Restructuring Trading tax = Trading result * % maintained Finance charge = GCE * % maintained GCE = TWC + Net book value of fixed assets

SU TP Calculation

TP calculated using Cost + 3% Markup by SKU by Plant by Target Country by Quarter TP valuates IC Revenue in SU IC Cost in MSO / UAPL TP used in actual billing by SU to UAPL SU to MSO (where SU and MSO are 2 separate legal entities) SU transfer price to be submitted to UAPL / MSO on 10th of every Dec / Mar / Jun / Sep.

Checks before TP computation

Review PCE to check for any abnormalities. Check PCE extracted to BI-IP for COGS valuation Review COGS valuation for any abnormalities Where SU & MSO are under the same legal entity (in a LS model), ensure final flexed MSO volumes are copied to SU ensure COGS & distribution cost (if any) valuations are run based on latest volumes ensure cost centre allocation is done based on latest values

SU TP Calculation
RM/PM costs based on replacement costs (standard cost) Fixed production costs based on OP-1 rates Fixed supply costs & indirects based on OP-1 rates. User to maintain SU mark-up % in table ZIP_TMRK_Q0006 Run process chain to calculate TP
RM costs PM costs Bought in costs SU transfer Production costs price = Supply costs Indirects Mark-up @ 3% on above costs Add Add Add Add Add Add Add

Process Chain to Calculate Transfer Price

Step 4:- Schedule Process Chain

Step 5:- View log to see the detailed status of the chain

Step 1: Transaction RSPC Step 2: Look for process chain- ID Calculate Transfer Price Step 3: Double click to select process chain

Transfer Pricing Query

Use query - ZIP_TTP_Q002 to check TP calculation results
Step 1: Click Open folder

Step 2: Select Workbook and click Open

Workbook Transfer Pricing

Step: Enter forecasting period and country and click Ok

SU-TP breakdown report

Report name - ZIP_TTP_Q008 Features of the report SKU wise SU-TP break down into cost components Total RM, PM costs broken into the material groups Production and supply costs break-up Costs per unit and total costs available SKU wise. Sample report.

TC calculation
Process chain to be run to execute TC calculation Valuates inter company revenue and concern sales based on transfer prices Computes IWC, trading tax and finance charge based on % maintained for respective items Calculates trading contribution

Roles
o RAC

Loading volumes from APO to BI-IP

o Local

IT

Copying volumes from VOL version to the respective OP version (2, 7, 8, 9)

Extracting PCE data from ECC to BI-IP Extracting cost center plan data and cost center assessment cycles from ECC to BI-IP

Copying final OP version into LPA version

o Rest

of the activities are carried out by the financial planning team.

MSO Operational planning

MSO Operational planning

Process flow links to ARIS

Volumes extraction from APO (MSO) Product cost planning Cost center planning - supply costs & indirects Profitability analysis (MSO) Other planning activities in BI-IP

APO Inputs - Volumes

MSO
Plan from APO Time Horizon Time Bucket Frequency Unconstrained Demand Plan
Next 78 weeks rolling (6 quarters rolling)

Gregorian month Monthly SKU Customer Hierarchy level is country specific Sales Organization Cases Agreed unconstrained demand

Granularity

Unit of Measure Key figure

Direct imports
Normal Scenario: SU-XX UAPL MSO-YY Exception: SU-XX MSO-YY This is referred to as direct imports. What to do in case of direct imports? - User to maintain list of SKUs directly imported in a query

Why? - To ensure that these volumes are not loaded to UAPL cube for UAPL TP computation

Direct imports
Query to maintain direct import SKUs ZIP_BOIN_Q001

Country to be entered as parameter

If SKU is a direct import enter 1 to indicate Active under Active / Passive column If SKU is not a direct import enter 0 to indicate Passive under Active / Passive column

To include SKU with new plant as a direct import item, enter the details as a new line

Direct imports
After entering new line, Right click and select transfer values

Check the details entered or changes made.

Right click and select save values to save the new details / changes made

GSV
Upload List price List price in ECC SD uploaded to BI-IP by Local IT at SKU/sales org level.

Upload changes to list price

Financial planner can upload file

To change list prices of existing SKUs. Uploaded list price for an existing SKU will overwrite the list price uploaded from ECC. To provide list price for new SKUs.

Check uploaded values

Query ZIP_MCOND_Q001 PA conditions can be used to check the uploaded conditions

Valuate GSV

Run process chain to valuate GSV (GSV = List price * Volumes)

TTS
Variable TTS same steps as GSV
Upload TTS (same template as used for list price) check upload (ZIP_MCOND_Q001 PA conditions) run process chain to valuate variable TTS

Fixed TTS
Upload TTS values Minimum PH level sub-brand check upload (ZIP_MCOND_Q001 PA conditions) run process chain to perform top down distribution. Top down distribution done on the basis of GSV.

GSV / TTS file uploads

To upload GSV / TTS / Distribution costs

Upload template for GSV / variable TTS / distribution costs Upload template for fixed TTS

C:\Unilever\ Templates\Condition Upload Template (AU).xls

C:\Unilever\ Templates\Fixed TTS Upload Template.xls

GSV / TTS file uploads

1. Upload file for LP, var TTS, Dist Condition Records via this link. a) For B4Q env: http://ab4q002a.eu.unilever.com:8021/sap/bc/webdynpro/sap/zrsplf_file_upload?saplanguage=EN&planning_sequence=ZIP_TCO01_PS01 b) For B2P env: http://ab2p004a.eu.unilever.com:8024/sap/bc/webdynpro/sap/zrsplf_file_upload?saplanguage=EN&planning_sequence=ZIP_TCO01_PS01

2.

Upload file for fixed TTS via this link.

a) For B4Q env: http://ab4q002a.eu.unilever.com:8021/sap/bc/webdynpro/sap/zrsplf_file_upload?planning_sequence=ZIP _TFIX1_PS01. b) For B2P env: http://ab2p004a.eu.unilever.com:8024/sap/bc/webdynpro/sap/zrsplf_file_upload?planning_sequence=ZIP _TFIX1_PS01

GSV / TTS valuation

Process chain run for GSV valuation. On completion of process chain GSV can be seen in the P&L.

Supply costs
Transport outbound same as Variable TTS & GSV
Upload distribution costs (same template as used for list price) check upload (ZIP_MCOND_Q001 PA conditions) Valuate distribution costs

Other fixed supply costs

Planned in cost centers in ECC Plan assessment cycles maintained in ECC Plan data and assessment cycles extracted to BI-IP by Local IT Cost center allocation done in BI-IP

Advertisement & promotion

Option - 1 Planned in Internal Order. Settled to ECC - PA. Extracted from PA to BI-IP

Option - 2 Manual entries in BI-IP / upload templates. Entered at sub-brand level or higher PH levels Top down distributed to SKU level based on turnover.

Indirects
Planned using cost centre planning in ECC. Allocation cycles maintained in ECC. Costs planned and allocation cycles in ECC extracted to BI-IP by Local IT. Cost center allocation done in BI-IP Top down distribution done to SKU level.

Cost center assessment in BI-IP

To check cost center plan data at total level run query ZIP_M81_Q001

Output of query ZIP_M81_Q001

Cost center assessment in BI-IP

To view cost center assessment cycles in BI-IP run query ZIP_TCCAL_Q002

Cost center assessment in BI-IP

To view & change cost center plan data in BI-IP run query ZIP_TCA01_Q001

Output of query ZIP_TCA01_Q001

Cost center assessment in BI-IP

To change cost center plan data in BI-IP a. run query ZIP_TCA01_Q001 b. Input new values in the query c. Right click and transfer values d. Save

Cost center assessment in BI-IP

Steps to execute Cost center assessment cycles in BI-IP: a. Run transaction ZIP_CCA_01 in relevant enviroment b. Select country c. Click View Cycles and then Execute to see cycles. d. Select cycles you want to run assessment and enter in cycle selection e. Select Execute Cycles and then Execute to run assessments f. To view the log select country and view cycles and then execute

g.To see the values after successful assessment run Version comparison Query( ZIP_M51_Q003)

Cost center assessment in BI-IP

a. Run transaction ZIP_CCA_01 in relevant enviroment b. Select country

Cost center assessment in BI-IP

c. Click View Cycles and then Execute to see cycles

Cost center assessment in BI-IP

d. Select cycles you want to run assessment and enter in cycle selection. e. Select Execute Cycles and then Execute to run assessments

Cost center assessment in BI-IP

f. To view the log select country and view cycles and then execute.

After process turns green , detailed log can be seen by clicking backround job

Cost center assessment in BI-IP

Detailed log example view

Manual entries
Supply costs Allocated charges advertising Allocated charges indirects Data entry level Market Market Gross Capital employed Fixed assets Data entry level Category

Stocks
Creditors Restructuring

Category
Category Category

Manual entries workbook used (WB_Manual entries MSO) / upload templates used. All manual entries top down distributed to SKU level

Top down distribution

P&L details GSV TTS Fixed TTS Variable Turnover

Entry Level
SKU

IT System
BI-IP BI-IP BI-IP BI-IP BI-IP ECC & BI-IP BI-IP

Allocation Key
n/a GSV GSV

Level after Allocation

SKU SKU SKU SKU SKU SKU SKU SKU SKU SKU SKU SKU SKU

Category, Market, Brand, CPG, Sub Brand, Pack Size Category,Market,Brand,Sub Brand,Pack Size

Calculated

n/a n/a Turnover n/a Turnover Turnover n/a n/a n/a n/a

Intercompany cost
Supply costs Gross Profit A&P Indirects Trading Result Finance Charge Trading Tax Trading Contribution GCE

SKU Cost Center Level

Calculated Sub brand Cost Center Level

ECC (IO) / BIIP Manual Entry

ECC BIIP BIIP TC calc BIIP TC calc BIIP TC calc BIIP Manual Entry

Calculated Calculated Calculated Calculated

Category Level

n/a

SKU

Reference data for top down distribution

Key figures required for top down distribution GSV Turnover COGS Volumes in pallets If for a certain PH in a certain period, the relevant key-figure is not available, no top-down happens Example: A&P of seasonal products like ice-cream

This functionality helps the user to provide relevant reference values to enable top down distribution.
Reference Data Entry For MSO - ZIP_M5186_Q0003_V1 Reference Data Entry For SU - ZIP_M5186_Q0001_V1

TC calculation
Process chain to be run to execute TC calculation Valuates inter company cost and bought in cost in MSO based on transfer prices Computes IWC, trading tax and finance charge based on % maintained for respective items Calculates trading contribution

Executing process chains

T-Code: RSPC

Select Financial planning ZA (OP)

List of process chains created under ZA (OP) is displayed

Executing process chains

Double click on the process chain

Click on the button to execute the process chain

After clicking on the execute button, priority screen will pop up. Click ok button with the selection of Standard Priority C.

Message at the bottom of your screen should read as below

Executing process chains

Click this button to view the logs of the process chain

Select the date to view the log

Process chain log view

Executing process chains

Double click on the process step to view the results

Versions OP in BI-IP
1. VOL Volume version: Contains the volumes extracted from DP/SNP

2. BAS Base version: Used in OP if volume flexing needs to be done.

OP PA version

3. PA version:

OP-1
OP-2 OP-3 OP-4

2
7 8 9

4. Working version: W13 W19: Used for flexing 5. F10 OP (mid - point version) F11 OP (min - point version) F12 OP (max - point version)

Final OP versions in BI-IP

Partial data copy from versions

Functionality to use when multiple users are working on same categories but different P&L line items (like GSV, TTS, A&P)

Users can work on different working versions on different P&L line items

On completion can copy the changes to one final version.

Flexing Process (Scenarios)

Different scenarios can be applied in flexing.

Below illustrates adjustments in Yellow Fats market for January. Scenario 1

Volume 10%

Scenario 2
Volume 10%

Scenario 3
Volume TTS Var. Matl Cost 10% 5% 5% 200

A&P

1000

A&P

Flexing Process (Scenario 1)

Figure Volume GSV TTS Fixed TTS Var. Turnover Mat. Cost Prod.Cost Distribution Supply Support Base 12000 24000 1000 3000 20000 6000 2000 200 800 Adj. 10% Result 13200 26400 1000 3300 22100 6600 2000 220 800

Gross Profit
A&P Indirects Unusual Items Trading Result Finance Charge Trading Tax

11000
3000 1100 0 6900 500 1380

12480
3000 1100 0 8380 500 1676

Trading Contribution

5020

6204

Flexing Process (Scenario 2)

Figure Volume GSV TTS Fixed TTS Var. Turnover Mat. Cost Base 12000 24000 1000 3000 20000 6000 Adj. 10% Result 13200 26400 1000 3300 22100 6600

Prod.Cost
Distribution Supply Support Gross Profit A&P Indirects Unusual Items Trading Result Finance Charge Trading Tax Trading Contribution

2000
200 800 11000 3000 1100 0 6900 500 1380 5020 1000

2000
220 800 12480 4000 1100 0 7380 500 1476 5404

Flexing Process (Scenario 3)

Figure Volume GSV TTS Fixed TTS Var. Turnover Mat. Cost Prod.Cost Distribution Supply Support Base 12000 24000 1000 3000 20000 6000 2000 200 800 5% 5% Adj. 10% Result 13200 26400 1000 3465 21935 6930 2000 220 800

Gross Profit
A&P Indirects Unusual Items Trading Result Finance Charge Trading Tax

11000
3000 1100 0 6900 500 1380 200

11985
3200 1100 0 7685 500 1537

Trading Contribution

5020

5648

Scenario Comparisons
Figure Base Scenario 1
Volume +10%

Scenario 2
Volume +10% A&P +1000

Scenario 3
Volume +10% TTS Var +5% Mat Cost +5% A&P +1000

Volume GSV TTS Fixed TTS Var. Turnover Mat. Cost Prod.Cost Distribution Supply Support Gross Profit A&P Indirects Unusual Items Trading Result Finance Charge Trading Tax Trading Contribution

12000 24000 1000 3000 20000 6000 2000 200 800 11000 3000 1100 0 6900 500 1380 5020

13200 26400 1000 3300 22100 6600 2000 220 800 12480 3000 1100 0 8380 500 1676 6204

13200 26400 1000 3300 22100 6600 2000 220 800 12480 4000 1100 0 7380 500 1476 5404

13200 26400 1000 3465 21935 6930 2000 220 800 11985 3200 1100 0 7685 500 1537 5648

Flexing steps
Copy VOL to BAS version Select entry levels for flexing Select the parameters for flexing Save values entered for flexing Apply adjustment Check reports to see impact of flexing Save forecast values Copy working version to final version

Flexing

Flexing can be done as a % as a value

Flexing

Changing entry level Allows user to select the - field to flex. - entry level of PH to flex.

Flexing
Changing selection Allows user to change the parameters

Helps user to select multiple markets under a category and flex selected markets at the same time Helps multiple users under the same category to work on different markets in that category at the same time

Flexing
Screen-1 User has clicked save and clicked transfer value
No values seen under forecast column Save will only save the Adj % & Adj. val Transfer values will keep the changes in buffer

Screen-2 User has clicked apply adjustments Values can be seen under forecast column.

Flexing
Get report: Allows user to see impact of flexing on P&L using different reports like:
- Quick report (ZIP_M51_Q001) - Value chain report (ZIP_M51_Q002) - Version comparison report (ZIP_M51_Q003) - Historical version comparison report (ZPA_M002_ZIP_Q011) - Monthly forecast with actuals (ZPA_M002_ZIP_Q008) - Quarterly forecast with actuals (ZPA_M002_ZIP_Q009)

Copy version: Allows the user to copy to the relevant version - can be to a final version - can be to another working version

Flexing levels & structure

Customer Hierarchy Customer Hierarchy Levels (country specific) Customer Hierarchy Levels (country specific)

Product hierarchy Group Name Volumes GSV TTS Variable TTS Fixed Material Cost Production Cost Distribution & Supply Support A&P Non-customer indirects Customer Indirects

Company level to Base pack level

Company level to base pack level

X X

X X X X X X X X X X

X X X X

X X

Flexing structure:
Regional default structure exists. Country may chose to group / ungroup and define structure based on local requirements.

Absolute amount flexing

Normal flexing functionality can be used when there is a base amount Example:
Details Case-1 Case-2 Base amount 100 0 % adjustment 10% 100 Forecast amount 110 0

Absolute amount flexing functionality allows manual entry of values where the base amount is zero.
Details Case-1 Case-2 Base amount 100 0 % adjustment 10% 100 Forecast amount 110 100

Absolute amount flexing workbook - ZIP_M5119_Q001

Extrapolation logic
In focus & Out of focus period
In 2010 OP-1 OP-2 OP-3 Forecasting Period Jan - Dec 2010 (4 quarters) Apr - Dec 2010 (3 quarters) Jul 2010 - Dec 2010 (2 quarters) Jan 2011 - Dec 2011 (4 quarters) OP-4 Oct 2010 - Dec 2010 (1 quarter) Jan 2011 - Dec 2011 (4 quarters) Planning level In Focus - detailed planning In Focus - detailed planning In Focus - detailed planning Out of Focus - extrapolation logic applies In Focus - detailed planning Out of Focus - extrapolation logic applies

Bottom-up approach (detailed planning) used for building the plan for in-focus period

For out of focus period, extrapolation logic will be used for building the plan

Extrapolation logic
- Extrapolation logic is recommended & not mandated - Flexible parameters available for country for extrapolation purposes.

Parameters available for extrapolation:

Period December of in focus period Same month of in focus period Q4 average data from in focus period Annual average of current year Product hierarchy SKU level Category level Total company level Customer hierarchy National level

Illustration of how parameters can be defined for extrapolation purposes.

Roles
o RAC

Loading volumes from APO to BI-IP

o Local

IT

Copying volumes from VOL version to BAS version or the respective OP

version (2, 7, 8, 9) Extracting list price data from ECC to BI-IP Extracting cost center plan data and cost center assessment cycles from ECC to BI-IP Copying final OP version into LPA version

o Rest

of the activities are carried out by the financial planning team.

UAPL Operational planning

UAPL Operational planning

Indirects Planning in cost centers

Copy volumes from MSO

Product costing

Top Down to SKU

Manual entries

Cost centre allocation

UAPL - TP computation

TC calculation

Process flow links to ARIS

Volumes extraction and product cost planning (UAPL) Cost center planning (UAPL) Profitability analysis planning in ECC (UAPL) UAPL transfer price computation

UAPL in-country / CBS

Details SU-TH In-country sales SKU-A Produces 100 units Buys Sells 100 units Sells Stock in BI-IP 100 units in BI-IP Exports through UAPL SU-TH SKU-A Produces 100 units Buys Sells 60 units Sells Stock 40 units in BI-IP 60 units in BI-IP Imports through UAPL SU-ID SKU-B Produces 100 units Buys Sells Stock in BI-IP 60 units 60 units 40 units in BI-IP 60 units in BI-IP 60 units Sells UAPL-TH 100 units 60 units 40 units 60 units Sales MSO-TH 60 units

DP volumes will be used for MSO & UAPL planning. SNP volumes will be used for SU planning.

in BI-IP 60 units MSO-ID 60 units

UAPL-CBS 60 units Sales 60 units

60 units

in BI-IP

60 units MSO-TH 60 units

UAPL-CBS 60 units Sales 60 units

Volumes for UAPL planning

Scenarios involved
From SU-TH SU-TH SU-TH SU-Non U2K2 Through UAPL-TH UAPL-CBS UAPL-CBS UAPL-CBS To MSO-TH MSO-ID MSO-Non U2K2 MSO-TH Volumes used for UAPL planning MSO-TH volumes MSO-ID volumes SU-TH volumes MSO-TH volumes

Volumes from MSO / SU shall be loaded into UAPL cube by RAC / RAC support

UAPL can commence planning only after SU & MSO have completed their operational planning.
SU / MSO should not make any changes in their plan after hand over to UAPL

Fixed supply costs planning

Fixed supply costs Transport inbound Basis of allocation Volumes (Number of pallets)

Fixed supply costs are planned in cost centers Allocation done in ECC using FSC allocation program Where no SNP volumes available for a SKU, DP volumes will be used for allocation Where current quarter TP is not available for allocation, last available TP is used for allocation
3P transfer price uploaded

Warehouse storage & handling

Buying & planning Supply support costs (inc. HR/Fin/IT) Other supply support

Volumes (Number of pallets)

SU / 3P Transfer price SU / 3P Transfer price SU / 3P Transfer price

BI-IP
SNP / DP volumes ZIP_TPUAP_Q002

ECC
FSC allocation program (YTHCO_PC0001)

BI-IP
SU transfer price ZIP_MPCE_Q001

Fixed supply costs

Product cost estimate & COGS valuation

PCE Calculated in ECC PC by SKU quarterly.

PCE = SU / 3P transfer price + Fixed supply costs allocated to SKU level

If current quarter TP is not available for allocation, last available TP is used for PCE computation.

Critical to ensure for all SKUs having demand volumes, PCE has been computed.

COGS valuation Done in ECC - PA COGS = PCE * Volumes retracted from BI-IP to ECC

Indirects planning & data extraction to BI-IP

Indirects planned in cost center accounting module in ECC

Allocated to PA value fields in ECC.

Data extracted from ECC to BI-IP after COGS valuation & cost center assessments are completed. Extraction to BI-IP done through a process chain.

Manual entries
Supply costs Allocated charges A&P Allocated charges Indirects Data entry level Market Market Gross Capital employed Fixed assets Data entry level Category

Stocks
Debtors Creditors Restructuring

Category
Category Category Category

Manual entries workbook used (WB_Manual entries) All manual entries top down distributed to SKU level

Manual Entries
Step 1: Click Open folder

Step 2: Select Workbook and click Open

121

Manual Entries

Step 1. Click on Allocated charges, select related Key figures from drop box menu

Step 2. Maintain Manual cost Entries (allocated charges by category, market)

Step 3. Save Data

122

Manual Entries

Step 1. Click on GCE, select related Key figures from drop box menu

Step 2. Maintain Manual cost Entries (GCE at Category, Market level)

Step 3. Save Data

123

Top down distribution UAPL in BI-IP

P&L details Volumes Inter company cost Bought in costs Supply costs Intercompany revenue Gross Profit Indirects Trading Result Finance Charge Trading Tax Trading Contribution GCE
SKU

Entry Level

IT System
APO ECC ECC ECC for SC indirects, BI-IP for IWC BI-IP BI-IP ECC BIIP BIIP TC calc BIIP TC calc

Allocation Key
n/a n/a n/a

Level after Allocation

SKU SKU SKU

SKU

SKU

Cost Center Level

Intercompany cost

SKU

SKU

n/a n/a Intercompany cost n/a n/a n/a

SKU SKU SKU SKU SKU SKU

Calculated

Cost Center Level

Calculated Calculated Calculated

Calculated

BIIP TC calc

n/a

SKU

Category Level

BIIP Manual Entry

Intercompany cost

SKU

Top down distribution process chain

Double click and Select process chain TopDown To SKU for Cost entries from the folder -Financial Planning ID (Quarterly)

Top down distribution process chain

Step 1: Schedule Process Chain

Step 2: Select Standard Priority C and click Ok

Top down distribution process chain

Process Chain after successful execution

Top down distribution process chain

Make the date selection

Top down distribution process chain

Select the log and double click to view

IWC, Trading tax & FC

Automated calculation in BI-IP % for calculating IWC, trading tax and FC provided by IWC = Trade working capital * % maintained TWC = Debtors + Stock + Creditors + Restructuring

Trading tax = Trading result * % maintained

Finance charge = GCE * % maintained GCE = TWC + Net book value of fixed assets

UAPL TP Calculation
Business scenarios FG sales to full scope MSOs' FG sales to limited scope MSOs

List price minus method of TP computation

Cost plus method of TP computation

Pre-requisites in BI-IP for List price minus TP computation

Pre-requisites
1. Volumes are planned in APO DP 2. MSO P&L (plan & forecast) 3. MSO P&L (actuals) 4. UAPL product cost

Details
If a SKU is not planned in APO-DP, UAPL-TP will not be computed for that SKU in BI-IP. Complete MSO - P&L @ SKU level Complete MSO - P&L @ SKU level If a SKU has demand volume but no UAPL product cost, no TP will be computed. If SU-TP is not available, UAPL product costing cannot be done. In the absence of Sales BoM, TP for banded products cannot be computed.

5. Bill of material

In the absence of any one of the above pre-requisites, List price minus TP cannot be computed

List price minus TP Calculation - sequence

SU
SU-TP computed UAPL standard cost computed COGS valuation Actuals data allocated to SKU level in BW

UAPL

MSO
MSO - OP completion

Absolute amount transfer price computation TP per unit before exception handling computed

Exception handling performed TP split between inter co. cost & mark-up UAPLs inter co. revenue & mark-up valuated MSOs inter co. cost & mark-up valuated

List price minus TP Calculation - Logic

Operational plan OP-1 OP-2 TP in computed Logic Based on MSO plan data (Jan Dec) Based on : Jan + Feb actuals (2 months) + March forecast from MRF-3 (1 month) + Apr Dec plan (9 months) from OP-2. Since March actuals data will be available only by first week of April, the latest forecast data for March needs to be considered from MRF-3. March MRF is submitted on the fifth working day of March. Based on: Jan - May actuals (5 months) + June forecast from MRF-6 (1 month) + Jul Dec plan (6 months) from OP-3. Since June actuals data will be available only by first week of July, the latest forecast data for June needs to be considered from MRF-6. June MRF is submitted on the fifth working day of June. Based on: Jan - Aug actuals (8 months) + September forecast from MRF-9 (1 month) + Oct Dec plan (3 months) from OP-4. Since September actuals data will be available only by first week of Sep, the latest forecast data for Sep needs to be considered from MRF-9. September MRF is submitted on the fifth working day of Sep. December March

OP-3

June

OP-4

September

MSO data used for LP minus logic

UAPL Transfer price for OP-1 MSO turnover Less Less Less Less Less = Target operating margin (% on turnover) Supply cost Advertisement & promotions Indirects Below the line items UAPL transfer price before exception handling Less Indirects Forecast + Actuals data MSO turnover Bought in cost Intercompany cost Supply cost Advertisement & promotions Indirects Below the line items Target operating margin (% on MSO turnover forecast + year to date actuals) UAPL transfer price before exception handling Less Less UAPL Transfer price for OP-2, OP-3 & OP-4 Plan data (from OP) MSO turnover Supply cost Advertisement & promotions

Add
Less Less Less Less Less Less

Less =

Exception handling
Exception handling Transfer price per unit before exception handling UAPL standard cost Custom declared price (uploaded to BI-IP) Higher of the 3 will be considered as UAPL transfer price.

List price minus TP split

UAPL transfer price UAPL standard cost Difference between UAPL transfer price & UAPL standard cost

Posted as Intercompany revenue in UAPL & Intercompany cost in MSO

Posted as Mark-up in UAPL & Mark-up in MSO

Maintained as ZUCS for billing purposes

Maintained as ZMKP for billing purposes

- ZMKP cannot be negative

LP minus TP method Illustration-1

SU Details Volumes (SU sales) Turnover RM/PM cost Production cost Intercompany cost Intercompany revenue Supply cost Gross profit A&P Indirects Mark-up TR Cost per unit RM/PM cost Production cost Supply cost Total cost per unit Mark-up @ 3%
1

Values 1,000 6,000 3,000 10,300 1,000 300 300

UAPL MSO Details Values Details Volumes (UAPL sales) 800 Volumes (MSO sales) Turnover Turnover RM/PM cost RM/PM cost Production cost Production cost Intercompany cost 8,240 3 Intercompany cost Intercompany revenue 8,400 11 Intercompany revenue Supply cost 200 Supply cost Gross profit (40) Gross profit A&P A&P Indirects 500 Indirects Mark-up 5,800 12 Mark-up TR 5,260 TR UAPL standard cost per unit 2 SU - TP 10.3 Supply cost 0.2 Total standard cost 10.5 TOM% Total Transfer price TP per unit before exception handling UAPL standard cost Custom declared price Higher of above 3 = Final TP 8 Split into intercompany cost mark-up

Values 800 16,000 8,400 200 7,400 500 300 5,800 800 5 14,200 17.8 10.5 15.0

10

6.0 3.0 1.0 10.0 0.3 10.3

5 6

SU-TP per unit

17.8 10.5 7.3

LP minus TP method Illustration-2

in OP-3 (Before UAPL-TP computation) MSO Actuals MRF OP Total Details Jan - May June July - Dec Jan - Dec Volumes (MSO sales) 500 150 750 1,400 Turnover 10,000 3,500 16,500 30,000 Intercompany cost 7,000 2,100 9,100 Supply cost 1,000 350 1,200 2,550 Gross profit 2,000 1,050 15,300 18,350 A&P 1,000 400 1,200 2,600 Indirects 500 100 700 1,300 Mark-up 200 60 260 TR 300 490 13,400 14,190

UAPL - TP computation TOM% Target TR value based on TOM% Absolute transfer price (total) July - December (volumes) Total transfer price per unit

5% 1,500 12,690 750 16.9

Exception handling a. Total transfer price per unit b. UAPL standard cost (assumed) c. Customs declared price (assumed) Final transfer price = higher of 3 above
Transfer price splitting Total transfer price per unit - Intercompany cost - Mark-up

16.9 15.0 16.0 16.9

After UAPL - TP computation MSO Actuals MRF OP Details Jan - May June July - Dec Volumes (MSO sales) 500 150 750 Turnover 10,000 3,500 16,500 Intercompany cost 7,000 2,100 11,250 Supply cost 1,000 350 1,200 Gross profit 2,000 1,050 4,050 A&P 1,000 400 1,200 Indirects 500 100 700 Mark-up 200 60 1,440 TR 300 490 710

Total Jan - Dec 1,400 30,000 20,350 2,550 7,100 2,600 1,300 1,700 1,500

16.9 15.0 1.9

Pre-requisites in BI-IP for Cost+ TP computation

Pre-requisites
1. Volumes are planned in APO DP 2. UAPL product cost

Details
If a SKU is not planned in APO-DP, UAPL-TP will not be computed for that SKU in BI-IP. If a SKU has demand volume but no UAPL product cost, no TP will be computed. If SU-TP is not available, UAPL product costing cannot be done.

3. Bill of material

In the absence of Sales BoM, TP for banded products cannot be computed.

Cost plus TP Calculation - sequence

SU
SU-TP computed UAPL standard cost computed

UAPL

MSO

COGS valuation

TP per unit computed

UAPLs inter co. revenue & mark-up valuated

MSOs inter co. cost & mark-up valuated

Cost plus TP computation

Value field Description 0G_AVV271 Bought in Total bought in cost 0G_AVV381 Intercompany Cost Total intercompany cost 0G_AVV330 Buying & Planning 0G_AVV350 Transport Inbound 0G_AVV352 Warehouse Stor &Handl 0G_AVV353 Transport Outbound 0G_AVV370 SSC inc HR, Fin & IT 0G_AVV372 RM/PM/SPARE Write-of 0G_AVV373 FG Write-off 0G_AVV379 Other Supply Support Total supply costs Group Bought in cost Intercompany cost Supply costs Supply costs Supply costs Supply costs Supply costs Supply costs Supply costs Supply costs

In summary
UAPL transfer price Bought in cost + Intercompany costs + Supply costs + Mark-up % on above = UAPL transfer price

Maintain Markup and TOM % Table

Maintain Markup and TOM % Table

Maintain Markup and TOM % Table

Input BTL Entries

Input BTL Entries

Custom Declared Price upload

Transfer Price Calculation

Transfer Price Calculation

Transfer Price Calculation

Transfer Price Calculation

Transfer Price Calculation-TOM % Adjustment

Transfer Price Calculation-TOM % Adjustment

Transfer Price Calculation-TOM % Adjustment

Transfer Price Calculation-TOM % Adjustment

Transfer Price Calculation -TOM % Adjustment

Generate Transfer Price Query Report

Generate Transfer Price Query Report

Generate Transfer Price Query Report

Generate SD _ Condition Upload Report

Generate SD _ Condition Upload Report

Generate SD _ Condition Upload Report

Other TP reports
Technical name Description

ZIP_MTTP_Q001
ZPA_M002_IP_Q005 ZPA_M002_IP_Q004 ZIP_M001_IP_Q009 ZIP_TTP_Q006 ZIP_TTP_Q007

TP Reconciliation Results
YTD Actuals TOM% Summary report Monthly Full Year TOM Report Exception Handling - Actuals Available with no subsequent forecast RPM Exception Handling: Details by SKU & % List Price Minus TP Analysis Report

TC calculation
Process chain to be run to execute TC calculation Valuates inter company revenue and concern sales based on transfer prices Computes IWC, trading tax and finance charge based on % maintained for respective items Calculates trading contribution

Roles
o RAC

Loading volumes from APO to BI-IP

o Local

IT

Retracting volumes from BI-IP to ECC Extracting plan data from ECC to BI-IP Copying final OP version into LPA version

o Rest

of the activities are carried out by the financial planning team.

Monthly Rolling Forecast

Forecast horizon
MRF MRF-1 When performed? Dec 2009 Jan 2010 For what period? Jan 2010 Dec 2010 No. of quarters forecasted 4 quarters

MRF-2
MRF-3 MRF-4 MRF-5 MRF-6 MRF-7 MRF-8 MRF-9 MRF-10 MRF-11 MRF-12

Jan Feb 2010

Feb Mar 2010 Mar Apr 2010 Apr May 2010 May Jun 2010 Jun Jul 2010 Jul Aug 2010 Aug Sep 2010 Sep Oct 2010 Oct Nov 2010 Nov Dec 2010

Feb 2010 Mar 2010

Mar 2010 Apr 2010 Dec 2010 May 2010 Jun 2010 Jun 2010 Jul 2010 - Dec 2011 Aug 2010 Sep 2010 Sep 2010 Oct 2010 Dec 2011 Nov 2010 Dec 2010 Dec 2010

2 months in current quarter

1 month in current quarter 3 quarters 2 months in current quarter 1 month in current quarter 6 quarters 2 months in current quarter 1 month in current quarter

5 quarters
2 months in current quarter 1 month in current quarter

Planning Cycle
PA Plan Data as of (OP) or Latest MRF
OP-1 Jan MRF Feb MRF OP-2 Apr MRF May MRF OP-3 Jul MRF Aug MRF OP-4 Oct MRF Nov MRF

APO Volume extracted in

Dec Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov

When MRF is done

Dec

To Forecast for future period starting with

Jan
Feb Mar Apr May Jun Jul

Jan
Feb Mar Apr May Jun

Jul Aug
Sept Oct Nov

Aug Sep
Oct Nov Dec

Versions MRF in BI-IP

1. VOL Volume version: Contains the volumes extracted from DP/SNP

2. BAS Base version: Contains the volumes valuated with relevant P&L items (GSV, TTS, etc). 3. Working version: W03 W09: Used for flexing
4. F01 MRF(mid - point version) F00 MRF(min - point version) F02 MRF(max - point version)

Final MRF versions in BI-IP

SU Monthly Rolling Forecast

SU Monthly rolling forecast

Extract volumes from APO Short term COGS forecasting Run COGS valuation Run distribution valuation

Flexing

Top down distribution

Perform manual cost entries

Run cost centre assessment

Run TP calculation

New brand planning

TC calculation

Process flow links in ARIS SU monthly forecasting process Short term COGS forecasting

Short term COGS tool

Background Significant RM/PM price fluctuations between quarterly operational plans Monthly forecasts based on RM/PM replacement cost does not reflect correct picture. Need to consider the RM/PM and FG inventory impact to forecast COGS. Helps improve the COGS forecasting accuracy.

Short term COGS forecasting process flow

APO ECC BI-IP FG Prod.Volume and Stock Outflow FG production volume and stock outflow upload to LTP

LTP run

RM PM purchase & consumption quantiy is calculated

RM/PM Price upload

Calc Avg. RM/PM Cost

Calculate FG Prod.Cost

Is it a LS country with no legal split between SU & MSO?

No

COGS valuation

Yes Calculate FG Avg. Cost

Short term COGS forecasting

T-Code for short term COGS tool YZACO_PC0004 All the steps under COGS tool can be accessed through this T-Code

Creating a new version

Short term COGS forecasting

To retrieve LTP data

Short term COGS forecasting

To upload sales volumes

Short term COGS forecasting

Screen which shows if any records are not uploaded

Short term COGS forecasting

After all records are uploaded

Short term COGS forecasting

To upload RM/PM price forecast RM / PM price forecast uploaded in monthly buckets.

Short term COGS forecasting

After all records are uploaded

Short term COGS forecasting

To maintain currency exchange rates

Short term COGS forecasting

User to enter the currency exchange rates

Short term COGS forecasting

To derive opening stock rates. Opening stock quantity will be as on date of LTP run. Opening stock rate will be the previous months actual closing stock rate For eg: If COGS tool is run for June 2010, LTP will be run on say May 24th, - op. stock quantity will be stock as on May 24th. - op. stock rate will be material ledger close rate of April.

Short term COGS forecasting

Computation of weighted average RM/PM cost.

Short term COGS forecasting

Costing run

Short term COGS forecasting

Costing runs in the COGS tool
2010 1 2 3 4 5 6 7 8 9 10 M M M M M M Q M M M M M M M M M M M M M M M M M M M M 2011 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Q Not applicable Not applicable Not applicable Q Not applicable Not applicable Not applicable M M Q Q Q Q Not applicable Not applicable M M M M M Q Q Q M M Not applicable M Not applicable No. of runs M Q Total 6 2 8 2 0 2 1 0 1 6 1 7 2 0 2 1 0 1 6 4 10 2 0 2 1 0 1 6 3 9 2 0 2 1 0 1

In 2010 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Short term COGS forecasting

Computation of weighted average FG cost

This step is applicable to only limited scope countries were SU and MSO are not separate legal entities. This step is optional and the country might chose not to compute FG average cost.

Short term COGS forecasting

Other features Custom table available for the user to manually adjust opening stock quantity opening stock rate. material receipts quantity Manufacturing costs can be planned in separate versions for MRF and can be used for costing purposes. Above 2 functionalities are optional for the country to use.

COGS valuation
Same procedure as followed during OP PCE data extracted to BI-IP by Local IT To see loaded PCE data use query ZIP_CPCE_Q0001 Execute process chain to valuate COGS in BI-IP

Distribution costs valuation

Run distribution costs valuation (transport inbound) Valuation based on last OP / MRF data Use upload template to upload data for missing records Upload template same as used during OP. Re-run distribution costs valuation to check if all relevant SKUs have the distribution costs.

CCA, manual entries & top down

If changes required in cost center plan data, make necessary changes as explained under OP. Execute cost center assessment.

Copy manual entries from the last OP / MRF and make necessary changes.
Run top down distribution. Perform flexing if required.

TP calculation & PPV forecast

SU TP computed in MRF will not be used for billing purposes in actuals will be used to update SUs intercompany revenue for sales to UAPL in-country (in full scope model) sales to local MSO (in limited scope model) will be used for computing PPV forecast SU-TP in MRF = Weighted average RM/PM costs + OP-1 production costs + OP-1 supply costs PPV forecast = MRF transfer price (-) OP transfer price

New brand planning

Short Term Planning (3-6 months) - To be done in APO - BI-IP will read demand from APO Medium to Long Term (6 months onwards) - Forecasting of NPI within an existing product portfolio to be done in APO using existing product group

- For new brands which cannot be related to existing portfolio, use manual entry in BI-IP. Manual estimation of TO and profit at Brand Level
- ZIP_M5146_Q002 New brand planning workbook to be used for manual entries

TC calculation
Valuates inter company revenue and concern sales based on transfer prices Computes IWC, trading tax and finance charge based on % maintained for respective items Calculates trading contribution

Roles
o RAC

Loading volumes from APO to BI-IP

o Local

IT

Copying volumes from VOL version to BAS version

Extracting SNP volumes to LTP

o Rest

of the activities are carried out by the financial planning team.

MSO Monthly Rolling Forecast

MSO Monthly rolling forecast

Extract volumes from APO

GSV / TTS valuation

Fixed TTS forecast

Top down distribution

Perform manual cost entries

Run cost centre assessment

Flexing

New brand planning

TC calculation

Process flow link in ARIS MSO monthly forecasting process

GSV / TTS forecast

Run GSV / variable TTS valuation Latest volumes loaded will be valuated based on list price / TTS in the latest PA version Upload GSV / TTS For SKUs with no GSV / TTS For SKUs where the GSV / TTS needs to be changed. Upload templates same as used in OP Check uploaded values

Run GSV / TTS valuation

Fixed TTS forecast

Copy fixed TTS from OP to MRF version. Upload fixed TTS for any changes (same templates as used in OP). Run top down distribution for fixed TTS Top down distribution based on GSV

CCA, manual entries & top down

If changes required in cost center plan data, make necessary changes as explained under OP. Execute cost center assessment.

Copy manual entries from the last OP / MRF and make necessary changes.
Run top down distribution. Perform flexing if required.

New brand planning

Short Term Planning (3-6 months)
- To be done in APO - BI-IP will read demand from APO

Medium to Long Term (6 months onwards)

- Forecasting of NPI within an existing product portfolio to be done in APO using existing product group - For new brands which cannot be related to existing portfolio, use manual entry in BI-IP. Manual estimation of TO and profit at Brand Level - ZIP_M5146_Q002 New brand planning workbook to be used for manual entries

TC calculation
Valuates inter company cost and bought in cost in MSO based on transfer prices Computes IWC, trading tax and finance charge based on % maintained for respective items Calculates trading contribution

OCF Planning template

- TC, IWC & FC automatically picked from P&L for MRF - Movements in working capital and GCE are automatically picked from manual entries workbook in BI-IP - Rest of the fields should be entered manually in OCF workbook

Roles
o RAC

Loading volumes from APO to BI-IP

o Local

IT

Copying volumes from VOL version to BAS version

o Rest

of the activities are carried out by the financial planning team.

UAPL Monthly Rolling Forecast

Monthly rolling forecast process flow

Load volumes from MSO

Cash-up

Zero based entries

TC calculation

New brand planning

Flexing

OCF entries

Process flow links in ARIS

UAPL monthly forecasting process

Volumes extraction & cash-up

Volumes extraction
Process same as followed in OP MSO to freeze forecast volumes before copying to UAPL Loaded volumes available in VOL version in BI-IP.

Cash-up
P&L lines gets updated based on last OP / MRF values based on their fixed / variable nature.

Variable P&L lines updated with MRF volumes * last OP / MRF cost / revenue at SKU level (Eg: intercompany revenue, bought in cost) Fixed P&L lines updated with last OP / MRF costs at total level (Eg: Indirects)

Cashed up values stored in BAS version New products / promotions (SKUs) planned during MRF will not be available in last OP / MRF Since no data available in last OP/MRF to cash-up SKUs that are new products / promotions will be stored in ZBE version.

Cash-up
Illustrated based on MSO P&L
Figure Volume GSV TTS Fixed TTS Var. Turnover Mat. Cost Prod.Cost Distribution Supply Support Gross Profit A&P PA Plan 8000 16000 1000 2000 13000 4000 2000 165 800 6000 3000 165/8000*12000 4000/8000*12000 2000/8000*12000 Calculation 12000 (DP projected volume) 16000/8000*12000 Base 12000 24000 1000 3000 20000 6000 2000 200 800 11000 3000

Indirects
Unusual Items fixed Trading Result Finance Charge Trading Tax Trading Contribution

1100
0 1900 500 380 1020 New TR * 20%

1100
0 6900 500 1380 5020

Process Chain- Cash Up

Double click and Select process chain ID Cash up from the folder Folder: Financial Planning ID

Process Chain- Cash Up

Step 1: Schedule Process Chain

Step 2: Select Standard Priority C and click Ok

Process Chain- Cash Up

Process Chain after successful execution

Process Chain- Cash Up

Step 1: View Process Chain after successful execution

Step 2: View Log to get exact status of process chain

Zero based entries & flexing

SKUs with no previous OP / MRF data stored in ZBE version. Reference SKUs can be used to input values in P&L for the ZBE. Use ZBE report ZIP_M51_Q015 to generate list of ZBE SKUs. Upload transfer prices for Zero based items using upload template. Copy values in ZBE version to BAS version. After copying, BAS version contains complete set of SKUs with P&L. Perform flexing (if required) process similar to what is done in OP.

Zero Base Item Report

Step 1. Click Open Report

Step 2. Select Zero Based Item Report above and click Open to view Zero base items

215

Zero Base Item Report

Input Country, category (Optional) and click OK

216

Zero Base Item Report

Report provides Zero base Items (For which APO volume is planned but there is no PA data available)

217

Zero Base entries workbook

Step 1. Click open to view workbooks from folder

Step 2. Select Workbook and click Open

218

Zero Base entries workbook

Step 1. Click change variable values

Step 2. Input values in Selection parameters. (*) marked are mandatory selection and click Ok

219

Zero Base entries workbook

Step 2. Calculate Trading contribution

Step 4. Copy Data from ZBE version to Base BAS Version

Step 3. Click Save to save input values

Step 1.- Input PA values for Zero Base Item in Workbook

Step 5: Double click below to view messages

220

Process chain to upload TP for ZBE

Step 4:- Schedule Process Chain

Step 5:- View log to see the detailed status of the chain

Step 1: Transaction RSPC Step 2: Look for process chain- TP Upload Step 3: Double click to select process chain

221

New brand planning

Short Term Planning (3-6 months) - To be done in APO - BI-IP will read demand from APO Medium to Long Term (6 months onwards) - Forecasting of NPI within an existing product portfolio to be done in APO using existing product group

- For new brands which cannot be related to existing portfolio, use manual entry in BI-IP. Manual estimation of costs done at Brand Level
- ZIP_M5146_Q002 New brand planning workbook to be used for manual entries

TC calculation
Valuates inter company revenue and concern sales based on transfer prices Computes IWC, trading tax and finance charge based on % maintained for respective items Calculates trading contribution

Roles
o RAC

Loading volumes from APO to BI-IP

o Local

IT

Copying volumes from VOL version to BAS version

o Rest

of the activities are carried out by the financial planning team.

BI-IP Reports
Category Forecast for Regional Reporting (BCS) ZPA_M002_ZIP_Q003_1 Division Forecast for Regional Reporting (BCS) ZPA_M002_ZIP_Q004 Monthly Forecast with Actuals ZPA_M002_ZIP_Q005 Quarterly Forecast with Actual ZPA_M002_ZIP_Q002_1

BI-IP Reports
Monthly actuals + forecast + plan data ZPA_M002_ZIP_Q008 Version Comparison with P&L indexing measures ZIP_M51_Q006 SU-TP cost component break down report ZIP_TTP_Q008 Version comparison report ZIP_M51_Q003

BI-IP Reports
Quick report ZIP_M51_Q001 GCE entries after top down distribution ZIP_M51_Q0001 Top down report ZIP_M51_Q016

Summary
S/No Discussion Subjects Done Y Y

1 Financial planning Overview 2 Operational planning overview

3 SU Operational planning
4 MSO Operational planning

Y
Y

5 UAPL Operational planning

6 Monthly rolling forecast overview

Y
Y

7 SU monthly rolling forecast

8 MSO monthly rolling forecast

Y
Y

9 UAPL monthly rolling forecast

Questions and Answers

Thank you
Please remember to fill in the training feedback form!

Version Control
Sign-off date 10 Sep 2010 CPL/PLs Tran Thi Anh Tuyet Version No. Version 1.0 Description / Reason for Change Localized for Vietnam

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