Top Down Estimate for

BAU Change Request

TT1000828

Optimisation Management Reporting via Pricing

Version Control

Document Review and Approval

Version Date Description Author Review Approval

0.1 21/10/2016 Initial Draft version -Marketing Vidya Sagar

Jagati

0.2 24/10/2016 Initial Review by IBM Team Lead Praveen

Gupta

0.3 26/10/2016 Technical Solution TT1000828 Penta Sasidhar

Amaravathi Yalamanchili

0.4 27/10/2016 MAR solution updated Rajya

Lakshmi

0.5 27/10/2016 Initial Review by IBM Finance Lead Debashish

Ghosh

0.6 28/10/2016 IBM Tier 1 Review Venkata

0.7 1/11/2016 Updated based on Bilge Mert feedback Praveen

Gupta

Monica
0.8 1/11/2016 Approved by SD Lead Designer
Paglialonga

0.9 3/11/2016 Updated Solution on requirement 1 based Praveen

on Mirco feedback Gupta

1.0 11/11/2016 Updated solution based on PET feedback Praveen

Gupta

1.1 11/11/2016 Technical Solution TT1000828 Penta Sasidhar

Amaravathi Yalamanchili

2.0 14/11/2016 TDE Costed Yinka Bello

Distribution
This document has been distributed to:

Name Role Date Version

Marcel Konings Requester

TDE TT1000828 Optimization Management Reporting via Pricing_1.1

Name Role Date Version

Daniel Penna Demand IT Manager

Stephen Hogarty Global Design Authority MKT

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TDE Acceptance

Name Signed Date

Daniel Penna Demand IT Manager

British American Shared Services (GSD) Limited Registered in England and Wales no. 5203401 Registered Office: Globe House 1 Water Street
London WC2R 3LA
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Contents

Contents ................................................................................................................................................... 5
1. Summary ....................................................................................................................................... 6
2. Effort and Cost Involved .............................................................................................................. 7
3. Scope ............................................................................................................................................. 7
4. Assumptions ................................................................................................................................. 8
5. Solution ......................................................................................................................................... 8
6. Integration ................................................................................................................................... 12
7. Technical Solution / Development ........................................................................................... 12
8. Testing ......................................................................................................................................... 13
9. Cutover ........................................................................................................................................ 15
10. Impact Assessment.................................................................................................................... 13
11. Risks and Issues ........................................................................................................................ 14
12. Delivery Schedule ...................................................................................................................... 14
13. Appendix ..................................................................................................................................... 15

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1. Summary

This CR is intended to optimize the management reporting via pricing. The requirements of this CR are
discussed below.
1. Tax on Customer Consumer discounting - when selling directly to Consumer, no indirect tax should be
reported in the Profit & Loss account.

a. New technical condition for tax on Customer consumer discounting in prompt pricing procedure.

b. This new condition in SD "VAT on Consumer Discount" should be mapped to COPA value field
VV002 (Consumer Discounting) without activating Transfer +/-.

c. This condition also to be included in indirect tax sales condition

2. Free of Charge Indirect Tax - in case of free of charge, no indirect tax should be reported in the Profit &
Loss account. All the tax is paid by BAT.

Indirect Tax should be allocated to the relevant discount bucket depending on the usage indicator (like
the ZDF1-6, conditions)

3. Indirect tax on re-allocation from Above to Below Gross Margin - indirect tax needs to be recorded when
trade payments are re-allocated from Below to Above Gross Margin.

4. Royalty calculation in the ZCRA / ZDRA order type - when making an accrual for trade payments,
royalties needs to be calculated (like it is doing with rebates).

Dimensions Output
Impacted market(s) Global
FUT/UAT market(s) FUT-Argentina & Germany, UAT-
Argentina, Germany,Colombia
RT relevancy Yes
Retrofit relevancy No
PI relevancy NA
PET relevancy Yes
S&A relevancy NA
Master data relevancy and ownership NA
Cutover relevancy NA
Special cutover tasks (*) No
Integration with Operations No
Integration with Marketing Yes
Integration with Finance Yes
Integration with Excise Duty No
Integration with Treasury NA

(*) open client, backup, downtimes etc.

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2. Effort and Cost Involved

Units Amount
Cost Item Description
(Man days) (GBP)
Project Effort

Note: All people-related costs are charged only on the actual time spent and is managed via CATS timesheets.

Solution The Designer is tasked with making sure that the requirements and
Design: design are of a high qualitative nature, conform to all documented
BAT standards and that the design satisfies the original
requirement(s). The Designer will also document their functional
solution(s).

ABAP The ABAP Developer is tasked with making sure that the
Developer requirements and technical design are coherent as well as
performing the required ABAP development changes. The
Developer will also document their technical solution(s).

CI/PI The Cast Iron/SAP PI Integration Developer is tasked with making

Integration sure that the requirements and technical design for middle ware
interfaces are coherent as well as performing the required
development changes. The Developer will also document their
technical solution(s).
Total Project Effort £11,543.92

Travel and Expenses

Grand Total £11,543.92

Grand Total incl 8% Intercompany Charge £12,467.43

3. Scope

The scope of the CR- TT1000828 is,

Marketing

• The scope of this CR has a global impact as we are making the changes in the pricing procedures
• ZBAT15, ZBAT18, ZBAT25, ZBAT60, ZBAT61, ZBAT62 & ZBAT64 pricing procedures will be updated
for the required changes.

• New condition types will be added to avoid posting of indirect tax to profit & loss account for direct sales
& free of charge items.

• Additional condition type will be added to record the indirect taxes during reallocation of trade payments
from below to above gross margin.

• Changing the from/to step of royalty base in order to take accrual value into account for accrual
postings.

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Finance: Need to assign COPA value field assignment for 7 new conditions created by marketing.
ABAP: Need to develop 2 new Formula

System scope: - ECC

Scope of the CR is as below:

• Countries in scope: Global

✓ Security - N/A
✓ PI - N/A
✓ Operation- N/A
✓ Finance- Yes
✓ Data - NA
✓ PET- Yes

• Countries in scope: Global

4. Assumptions

• CR has a global impact as we are changing Global pricing procedures.

• We need to change steps of existing condition types to accommodate new condition types
Regression testing is required.
• Integration testing is required with Finance & MAR.
• Billing document Validation is require from Marketing, Finance & COPA for FUT/UAT sign off
• For Requirement 2 W e assume to map these 6 conditions (ZID1 to ZID6) 6 different value fields without
sign activation.
• For Requirement 3 We assume that ZTI3 to ZTI6 SD conditions will be assigned to respective accounting
key –MWS, ZT1, ZT2 ZT3
• For new conditions on requirement 3 ZTI3, ZTI4,ZTI5 & ZTI6 we are not proposing any Copa value field
assignment, however if require we will assign ERLOS.
• As the changes in pricing procedures are directly impacting MAR reporting this solution needs to be
reviewed and approved by Marketing/ Finance/MAR GDA.

5. Solution
Marketing:

Solution Requirement 1:

1. Tax on Customer Consumer discounting:

a. A new condition type ZTDC will be created and will be added to pricing procedure ZBAT15, ZBAT18,
ZBAT60 & ZBAT61.
b. New calculation step to be added as part of the indirect tax calculation in order to reduce indirect tax
posting.

c. The new condition would show the proportion of the indirect tax coming from the consumer discount.

d. The calculation for ZTDC will be done via new Routine-Formula.

e. A new Formula will be developed to calculate proportion of the indirect tax

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Formula 925
= (consumer discount /(total margin+ discount) * (BAT Paid Tax – CPTO Tax)

f. A new routine- requirement 919 will be developed to trigger ZTDC only for customer having consumer
discount.

Logic: For XKOMV-KSCHL= ZDUV or ZSM1

If XKOMV-KWERT = 0
SY-SUBRC= 4
Else SY-SUBRC=0

Condition types- ZDUV & ZSM1 will be maintained in ZRCVARIABLE table.

Solution Requirement 2:

2. Free of Charge Indirect Taxation:

a. To avoid posting of indirect tax to Profit & loss we need to add one new condition type per usage
indicator (6 in total) to the indirect tax calculation. To simplify this process, we can always post it to
the relevant discount bucket.

b. These six conditions will be placed before the indirect tax conditions-ZTI in the pricing procedure.

c. Pricing procedures considered for this functionality are ZBAT15, ZBAT18, and ZBAT60 & ZBAT61.

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Solution Requirement 3:

3 Indirect tax on re-allocation from Above to Below Gross Margin - Indirect tax needs to be recorded
when trade payments are re-allocated from Below to Above Gross Margin.

a. To avoid increase in sales tax base & tax liability posting, 4 new condition Types will be
created and will be added in pricing procedure ZBAT25, ZBAT62 & ZBAT64. We will assign
respective accounting key –MWS, ZT1, ZT2 ZT3 to these new condition types in pricing
procedure. These new conditions are require to reverse finance posting for indirect tax on
reallocation.

b. These condition types will be maintained for order types ZDRF/ZCRF as 100% based on sales
organization level on the total re-allocation amount. We will develop new formula to populate
100% value to minimize price master data maintenance and improve system performance.

We will assign existing formula 930 on ZTI3, ZTI4, and ZTI5 & ZTI6 and develop new
requirement routine- 920 to trigger these condition based on logic in requirement routine.

Logic: Requirement will check Condition Type/Sales document or Condition Type/Customer

Group in ZRCVARIABLE table if found it will make condition active else inactive.

Sales document type (AUART) & condition type (KSCHL) or condition type (KSCHL) &
Customer Group (KDGRP).

Field details

Sales order types (AURAT= ZDRF/ZCRF)

Condition type (KSCHL=ZTI3, ZTI4, ZTI5 & ZTI6)

We are building this requirement so that it can be used for other condition types require 100%
value based on customer group. This can be implemented through other pricing optimization
CR in future.

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c. New condition type would need to be included in the calculation (from/to steps) of ZTPL and
ZTR1, which would do the correct cost postings.

Solution Requirement 4:

4 Royalty calculation in the ZCRA / ZDRA order type

a. Change from/to step of the royalty base in order to ensure the accrual value will be taken into account
for accrual postings. Need to exclude ZDFE calculation in the pricing procedure.

Solution Finance-MAR:

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Without activating Transfer (+/- ) sign

1. Value field proposed on new condition ZTDC - VV002- (Consumer Discounting)

2. Value field assignment to ZDI1 VV006 Cust Price – Disc-
3. Value field assignment to ZDI2 VV007 Cust Allow - Disc
4. Value field assignment to ZDI3 VV008 Trade Pay Perfor-Dis
5. Value field assignment to ZDI4 VV009 Early Pmt Allow-Disc
6. Value field assignment to ZDI5 VV082 Method of Pmt Al-Dis
7. Value field assignment to ZDI6 VV161 BSE in TO

6. Integration
Finance & COPA

7. Technical Solution / Development

Requirement 1:
Formula = (consumer discount /(total margin+ discount) * (BAT Paid Tax – CPTO Tax)
GAP ID OC_1499
For Requirement 1, New routine 925 to be created and the below formula is to be implemented.
o Formula = (consumer discount /(total margin+ discount) * (BAT Paid Tax – CPTO Tax)

o Consumer Discount:
Need to check the KOMV-KSCHL (ZSM1, ZDMA, and ZDUV) and get the corresponding KWETR
values and Sum all those values.

o Total Margin:
Need to check the KOMV-KSCHL (ZMR1, ZML1, ZML7, ZMW1, ZML3, ZML8, ZMD1, ZML5, and
ZML9) and get the corresponding KW ETR values and Sum all those values.

o Discount:
Get the KOMP-KZW I6 (Sub total value).

o BAT Paid Tax:

Get KOMP-KZW I5 (Subtotal) and check KOMV-KSCHL (ZTP3, ZTP4, ZTCD) and get the
corresponding KW ETR values and Sum all those values.

o CPTO tax:
Need to check the KOMV-KSCHL (ZTVD, ZTP1, ZTP2, ZTL1, ZTL3, and ZTL5) and get the
corresponding KW ETR values and Sum all those values.

o For the requirement 1, need to create another new routine 919.

o Check the condition Type XKOMV-KSCHL - (ZDUV or ZSM1) and XKOMV-KW ERT = 0, then
SY_SUBRC EQ 4, ELSE SY-SUBRC = 0.
o The condition Types ZDUV and ZSM1 will be maintained in ZRCAVARIABLES table.

Requirement 3,

New pricing routine 920 needs to be created

• Get the Stack values of AUART (Order type), KUNNR, VKORG, and VTWEG SPART from (SAPMV45A)
VBAK. Based on the KUNNR VKORG VTWEG SPART get the Customer Group (KDGRP) from KNVV
table.

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• Check the Sales Document Type AUART (ZDRF, ZCRF) and Condition type values KSCHL (ZTI3, ZTI4,
ZTI5 & ZTI6) or Condition Type KSCHL (ZTI3, ZTI4, ZTI5 & ZTI6) and Customer group (KDGRP) only
specific customer group we need to restrict theses logic.
• If the above condition satisfies then SY-SUBRC=0 else SY-SUBRC=4
• Condition Type/Sales document and Customer Group values will be maintained in ZRCVARIABLE table

For Requirement 2 and 4, there is no need of technical changes

8. Testing

FUT needs to be performed by Argentina and Germany for each scenario on requirement 1 to 4.
UAT needs to be done by Argentina, Germany, and Colombia for each scenario on requirement 1 to 4.
Regression Testing needs to be done by selected markets – Australia, Mexico, and Canada

9. Cutover N/A
ACTIVITY Description WHO WHEN Prerequisite Commented [A1]: To be filled in with:
N/A N/A N/A Pre – Technical Go-Live
Post – Technical Go-Live
N/A Pre – Business Go-Live

10. Impact Assessment

Functional Area O2C- Marketing, Finance-MAR

PDD (Program Design NA

Document) / ES

TaO GAP ID(s) OC_1499

COE (Configuration Object CSD277, RV_0415_XXX

IDs)

Master Data Requirements N/A

Training N/A

BI N/A

Retrofit No

Regression Yes

PI N/A

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PET Yes

Security & Authorisations Change Requirement Description N/A

User Names / OneView IDs

Names of Global Role which need N/A

to be updated

The authorisation checks which N/A

have been embedded into the
program logic.

T-Code(s) VA01,VA02,VLO1N,VF01,VF02
State ‘NEW’ for a new T-Code else
state existing T-Code(s)
In the scenario in which this
custom tcode does not exist,
what is the SAP standard tcode
which could be used to view the
required information?

11. Risks and Issues

Risk Type Risk Impact Mitigation

New formula It may possible that system System Performance ABAP team needs to review
in pricing performance may slow down during may slow down the code and make sure that
sales/Billing process system performance is not
impacted.

12. Delivery Schedule

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T# Timeline

1. This CR (change request) is scheduled for BR1.17

13. Appendix

TDI_TT1000828.xlsx

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