S4F02

S4F02
Management Accounting in SAP

S/4HANA for SAP ERP CO
Professionals
.
.
PARTICIPANT HANDBOOK
INSTRUCTOR-LED TRAINING
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Course Version: 20
Course Duration: 3 Day(s)
Material Number: 50159139
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Contents
vii Course Overview
1 Unit 1: Overview of Financials for SAP S/4HANA
3 Lesson: Getting an Overview of SAP S/4HANA

9 Lesson: Introducing SAP Fiori
21 Lesson: Understanding the New Architecture of Management
Accounting in SAP S/4HANA
35 Unit 2: Structures, Master Data, Process Control, and Reporting
37 Lesson: Managing the Structures

57 Lesson: Explaining the New Concept of Cost Elements
63 Lesson: New Hierarchies and Allocations Tools
75 Lesson: Budgeting and Period Lock
91 Lesson: SAP S/4HANA Analytics
101 Unit 3: Integrated Business Processes
103 Lesson: Understanding CO integration with Procurement

109 Lesson: Understanding CO Integration with Production
121 Lesson: Understanding CO integration with Sales
139 Lesson: Understanding Parallel Valuation and Transfer Pricing
147 Lesson: Understanding Attributed Profitability Segments
155 Lesson: Planning with SAP Analytics Cloud
© Copyright. All rights reserved. v

vi © Copyright. All rights reserved.
Course Overview
TARGET AUDIENCE
This course is intended for the following audiences:
● Application Consultant
© Copyright. All rights reserved. vii

viii © Copyright. All rights reserved.
UNIT 1 Overview of Financials for SAP
S/4HANA
Lesson 1
Getting an Overview of SAP S/4HANA 3
Lesson 2
Introducing SAP Fiori 9
Lesson 3
Understanding the New Architecture of Management Accounting in SAP S/4HANA 21
UNIT OBJECTIVES
● Provide an overview of SAP S/4HANA Finance

● Explain and modify the SAP Fiori Launchpad
● Explain different types of apps
● Explain the Universal Journal
© Copyright. All rights reserved. 1

Unit 1: Overview of Financials for SAP S/4HANA
2 © Copyright. All rights reserved.

Unit 1
Lesson 1
Getting an Overview of SAP S/4HANA
LESSON OBJECTIVES
After completing this lesson, you will be able to:
Overview of Finance with SAP S/4HANA
Figure 1: Hybrid Transaction/Analytical Processing
In the past, it was necessary to move data away from transactional applications into
dedicated systems so that data could be harmonized and cleaned. As a result, multiple copies
of the data are created. But even worse, there is latency between the systems while data is
transferred. This means that we do not have a consistent picture of data across the enterprise
at any moment.
In many business landscapes today, transactions are managed in systems where both the
hardware architecture, database design, and the data models are built around fast read/write
processing at the record level. Analysis systems take on a different design approach. The
hardware, database, and data models are built around batch loading, aggregated storage, and
a focus on read-intensive queries and caching. That is why online transaction systems (OLTP)
and online analytical processing systems (OLAP) are often separated and linked through
interfaces through which data is lifted and shifted periodically. This approach means delays in
analysis on the transactional data. It is not unusual to have to wait the next day before
analysis can begin on the transactional data.
SAP HANA is able to bring transactional and analysis requirements into one platform. The
acronym for this type of consolidated system is Hybrid Transaction/Analytical Processing

(HTAP). The database, hardware, and data model of SAP HANA are built to handle combined
transactional and analysis processing. No movement of data is necessary and transactional
and analytical users work from the same, single copy of the data. This means we have live
data available to all applications in real time. This reduces the complexity by removing the
need to move data using separate software and interfaces. It also means that new innovative
applications can be built that combine transactions and analytics such as those found in SAP
S/4HANA.
Figure 2: Complete Finance Portfolio
SAP provides a fully integrated platform, based on the latest technology trends, to allow
finance to lead the transformation to digital business. The figure, Functional Completeness of
the Solution, shows the functional completeness of SAP S/4HANA Finance. All aspects of
financial requirements across all roles are supported in granular solution areas.
Figure 3: SAP S/4HANA Highlights per Finance Area
Financial Planning and Analysis:

Lesson: Getting an Overview of SAP S/4HANA
● Planning processes and functions are integrated into transactional system, allowing for
closed-loop planning at any level.
● Real-time access to financial data with the ability to drill-down to line-item levels. Merger of
financials and controlling into a universal journal, creating a single source of the truth. A
central finance function eliminates the need for aggregates and tables and to accumulate
cost at the lowest operational levels.
● Real-time "what if" analysis and simulations to model and test the impact of changes to
profitability before committing to plans.
● The SAP Financial Statement Insights Web application provides visual analysis of financial
statements, including user-defined reporting hierarchies.
Accounting and Financial Close:

● Foundation for soft close, for example real-time derivation of profitability characteristics,
single source of the truth, extension ledger.
● One universal journal entry for general ledger, controlling, asset accounting, and material
management items enables continuous inter-company reconciliation.
● Significant reduction in the need of end-of-period batch processing to accelerate closing
activities through real- time processing.
Treasury and Financial Risk Management:

● Integrated liquidity management, including cash flow analysis and embedded liquidity
planning based on integrated business planning.
● Use of prediction, simulation, and analysis functionality to support an informed and
automated forecasting process.
Finance Operations:
● Easy integration with external data providers and other data sources to simplify,
harmonize, and improve collaboration in operations as well as provide an improved and
intuitive UX through SAP Fiori.
● Improved decision making with respect to budgets and tracking spend and expenses
through SAP RealSpend, and T&E expense through Concur.
● End-to-end automated invoice, vendor, and supplier relationship management through
SAP Ariba solutions.
Enterprise Risk & Compliance Management:

● Enables the full life cycle of fraud management from detection, investigation,
quantification, and remediation, with the ability to monitor performance and optimize the
investigation process.
● Streamlined, automated controls, aligning risk-to-business value drivers, regulations, and
policies.

Figure 4: Universal Journal Enables Continuous Accounting
The customer value proposition of SAP S/4HANA can be summarized as follows:

● Instant insight-to-action:
- In-memory-enabled single financial data source across transactional and analytical
data
- Enables real-time processes for instant insight across finance and controlling to make
timely and relevant decisions
● Accelerated close:
- Enable a soft close by solving issues throughout the month
- Integrated financial and managerial reporting
- Reduces duplications and errors minimizing the need for reconciliations
● Real-time cash management:
- Automated payment processes
- Provide rich analysis dimensions and a drill-down feature for better insight into cash
daily operations
- Bank account management
● Higher Productivity:
- Intuitive and role-based user experience for greater employee productivity
- Real-time receivables and payables reconciliation eliminating manual work
● Pre-delivered integration (for example, with HR):
- Employee and cost center data integrated immediately across SAP SuccessFactors
and SAP S/4HANA Cloud

Lesson: Getting an Overview of SAP S/4HANA
- More integration scenarios leveraging Intelligent Services and Machine Learning are
constantly developed
SAP S/4HANA Finance Learning Journey
Figure 5: Financial Accounting Learning Journey
Learning Journeys are visual guides, designed to help you complete the learning path for
particular SAP solutions. The easiest way to find learning journeys is to search for SAP
Learning Journeys in your browser.
LESSON SUMMARY
You should now be able to:


Unit 1
Lesson 2
Introducing SAP Fiori
LESSON OBJECTIVES
SAP Fiori Application and Tools

Scenario
You want to ensure that your users have the best possible experience when interacting with
SAP Business Suite. You want to ensure that users can access critical business applications
on any device without compromises. Finally, you want to ensure that the solution integrates
with your existing IT system landscape and can expand to cover your specific needs. You
want to make sure that SAP Fiori meets these requirements.
What is SAP Fiori?
Figure 6: SAP Fiori
The SAP Fiori launchpad is the single point of entry to access all applications - directly via tiles
or links, or by using Search. SAP Fiori offers a harmonized look and feel across all SAP
products with embedded intelligent user guidance with cross-product and cross-device
integration through comprehensive and adaptive home pages, and notifications.
● Role-based simplification of business processes
● From monolithic solutions to activity-based apps

● Empowerment of users and the way they work
Domain-specific information and actions

● Users can quickly get an overview of what needs their attention with Overview Pages, List
Reports, and Work Lists. Notifications provide an additional channel for alerting users of
urgent tasks or requests.
● Users can trigger quick actions – such as extending a contract, changing a delivery date –
or drill down to the next level of detail. Users can also invoke the SAP CoPilot, an intelligent
assistant supporting ad hoc tasks in the context of their business activity.
Enter details and explore in depth. Lower down the pyramid, key and differentiating use cases
will be re-imagined with the SAP Fiori user experience, for example, looking at all details of a
business object via an Object Page, or changing frequently updated fields in a sales order
(amount, date, and new items).
Figure 7: SAP Fiori Launchpad User Personalization
The following personalization options are available to users in the SAP Fiori launchpad:
● Adding applications from the catalog assigned to them
● Removing applications that they do not want to use
● Modifying and adding applications for filtered report results
For example, if the user is a group cash manager who is interested in the German market, the
user can create an application to take them directly to the cash position of the German
market. They can arrive at the cash position directly with one click from the SAP Fiori
launchpad home page.

Lesson: Introducing SAP Fiori
Figure 8: SAP Fiori Launchpad Designer
In SAP Fiori launchpad designer, you can perform the following tasks:
● Configure tiles for static app launchers, dynamic app launchers, and configure the target
mapping.
● Create preconfigured groups and catalogs for the launchpad home page and for assigning
to users.
● Transport configurations, correction request packages, or the customizing workbench.
Different Types of Apps
Figure 9: SAP Fiori Application Types
The most recent delivery of SAP Fiori (available as of May 2016) includes over 300 apps for
core transactional and analytical business functions, such as workflow approvals, information
lookups, and self-service tasks.

The apps allow the user to:

● Conduct transactions (transactional apps)
● Gain insight and take action (analytical apps)
● View factsheets and contextual information (factsheet apps)
● Analyze and evaluate strategic or operational KPIs (SAP Smart Business Cockpits)
Figure 10: Transactional App Example: Manage G/L Account Master Data

Figure 11: Transactional App Example: Manage Cost Center Master Data
With the Manage Cost Center app you can create and edit master data of cost centers. The
drop down next to Standard provides an option to save filter variants as well as list display
variants. These can be private or they can be created as Public.

Figure 12: Analytical App Example: Trial Balance
A second group of apps are "analytical apps", which perform a report with drill-down
opportunities. The drill-down characteristics are listed in the navigation panel.

Figure 13: Analytical App Example: Income Statement with Access to Line Items
Figure 14: SAP Fiori Smart Business – KPI Monitoring
New User Experience and Working Model Powered by SAP S/4HANA

● Role-based access to all relevant information, such as key performance indicators, news
feeds, and specific tasks

● New working model supporting end-to-end insight to action scenarios, including

simulation and forecasting
● An easily adaptable user interface based on drag-and-drop and a powerful tile catalog
● New coherent and responsive user experience supporting multiple channels and form
factors
● Color-coded visualization of violated thresholds
SAP Smart Business is an open framework. Customers and partners can define their own
KPIs and integrate with collaboration and analytical tools (for example, SAP BusinessObjects
Lumira) or existing applications.
A third group of apps are fact sheets. They report a multi-dimensional overview of the entered
object, for example cost center, and give the opportunity to branch out to other apps and
functions. They may also show directly key figures and KPIs.
Factsheets enable a consistent 360° view of business entities by enriching traditional
transactional business data with additional related information, such as SAP S/4HANA based
analytic views and further state-of-the-art services (for example, tagging, feeds, favorites,
bookmarking, and so on).
Figure 15: Fact Sheets Example

SAP Fiori Spaces & Pages

SAP Fiori Launchpad - One Entry Point for the User
Figure 16: SAP Fiori Launchpad - Groups
The launchpad also offers active tiles through which the user can receive updated information
directly from the front page without opening the application.
A group consists of tiles (and links) representing a subset of apps. Administrators assign tiles
from one or more catalogs to a group and groups and catalogs to a role. Users that have this
role assigned, can view the group on their launchpad home page. Users can personalize their
home page by adding or removing apps from the out-of-the-box groups or self-defined
groups.
Note:
Creating new home pages based on groups is no longer recommended. Instead,
use the Manage Launchpad Spaces and Manage Launchpad Pages apps to define
the launchpad layout and structure.

Figure 17: SAP Fiori Launchpad with Spaces and Pages
The spaces mode was developed to offer more flexibility to influence the launchpad layout for
specific user groups. Pages are assigned to users via spaces that are assigned to business
roles. The business role defines which users see a specific space. If you enable spaces for
your users and define specific spaces and pages for them, you can achieve a better fit. By
defining pages with meaningful sections, you can define in which order the apps are sorted on
the page. You can, for example, sort the most used apps in the top-level section and then
create separate sections for apps that belong together. SAP delivers predefined spaces and
pages that you can use to start.
Note:
For more information about SAP Fiori launchpad spaces and pages, see SAP Help
Portal:
Managing Launchpad Spaces and Pages - SAP Help Portal.

Figure 18: SAP Fiori Tile Types
How to Work with SAP Fiori Spaces & Pages
1. To see the SAP Fiori launchpad with spaces and pages, parameters must first be enabled.
Log on to the T4N system using the SAP Logon with the following data:
Field Name Value
System T4N
Client 001
User S4F02–##
Password Welcome1
a) Open the SAP logon pad.
b) Log on to system T4N using the data in the table above.
2. Go to transaction code /UI2/FLP_CUS_CONF and set ENABLE_HELP and

SPACES_ENABLE_USER to true.
a) In the command field, enter transaction /n/UI2/FLP_CUS_CONF.
b) For both parameters ENABLE_HELP and SPACES_ENABLE_USER, in the Property

Value entry column, enter true.
c) Save your entries.
d) Create a transport request with your user ID. (You will need to have a transport
request for your user in T4N to be able to create spaces and pages.)
3. Show the change in the SAP Fiori launchpad with user S4F02-##.
a) Logon to the SAP Fiori launchpad. If you are already logged in, reload the browser.

b) On the SAP Fiori launchpad home page, in the top right corner, choose the user
profile icon and choose Settings.
c) Choose Spaces and Pages.
d) Select Use Spaces and choose Save.
The Home page opens with an option to edit the page. If there were any spaces assigned
the user's role, they would appear as tabs.
4. Create three pages. Include at least one app per page.

a) Choose Edit Page.
b) Next to Section Title, enter Section 1 → Add Tile → Select at least one app → Go
back.
c) Add two more sections.
d) After adding the third page, close the page editor.
You should have three sections in your home page. When created an ad-hoc page the
apps that are available belong to the user's role.
5. Turn spaces off to return to the normal menu.
6. Create a new space with no page.
7. Create two new pages with the Manage Launchpad Pages app. Add apps using the four
types of tiles such as link, flat tile, etc.
8. Add the pages to your space in the app: Manage Launchpad Spaces.
9. Add the space to the Z_S4F02 role in T4N via transaction code PFCG.
10. Turn on spaces in your profile.
LESSON SUMMARY

Unit 1
Lesson 3
Understanding the New Architecture of
Management Accounting in SAP S/4HANA
LESSON OBJECTIVES
The Universal Journal

The following is an overview of the SAP Accounting architecture:
● The SAP Accounting architecture provides a single source of truth for all accounting
components.
- Reconciliation is no longer used, bringing significant cost and time savings.
● It is a simple but holistic data model.
- SAP S/4HANA can be leveraged in the best possible manner, bringing unprecedented
insight (in both speed and content).
● The Universal Journal combines and harmonizes the best qualities of all accounting
components.
- The simplification of the application is a required step and a great foundation for further
enhancements.
● The SAP Accounting architecture provides non-disruptive innovation and simplification.
- SAP strives to provide a true, next-generation application with the least possible
disruption, safeguarding customer investments and processes.

Figure 19: Challenges of the Current Architecture – Multiple Sources of Truth
In SAP ERP, for performance reasons, data is stored in different tables for different modules.
This architecture has created the following restrictions:
● The combined content of several tables represents "the truth" in SAP ERP. Reconciliation
efforts are required by design.
● Data must be moved to the appropriate table for reporting (for example, settlement).
● Different levels of detail are stored in the respective components and tables.
● Components are structured differently (for example, fields and entities differ).
● Components have different capabilities (customer fields, currencies, multi-GAAP, and so
on).
● Performance often requires the use of a data warehouse, introducing another redundant
repository.
● Multiple SAP Business Warehouse (SAP BW) extractors are needed to cover the complete
truth in the data warehouse.

Lesson: Understanding the New Architecture of Management Accounting in SAP S/4HANA
Figure 20: SAP S/4HANA Finance – Simplified Data Model
The new architecture provides a new data model to SAP S/4HANA Finance, which provides
the following benefits:
● One line item table with full detail for all components. Data is stored only once, so no
reconciliation is needed by design.
● Fast multi-dimensional reporting on the Universal Journal is possible without replicating
data to SAP BusinessObjects Business Intelligence (SAP BI). If SAP BI is in place, a single
SAP BI extractor is needed.
● The memory footprint is reduced by the elimination of redundancy.
● Technical preparation enhances the important structural capabilities of the SAP Financials
solution (for example, multi-GAAP or additional currencies).

Figure 21: Existing Programs and Interfaces
Figure 22: List of Tables Replaced by Compatibility Views
The figure, List of Tables Replaced by Compatibility Views, shows the tables that have been
removed, or are going to be removed based on the progress of the system. For example, the
COEP is still used, because only postings of some value types of CO update ACDOCA
currently.

Figure 23: Universal Journal Entry
The new journal entry consists of a header (table BKPF) and the respective items (table
ACDOCA). There are rare cases where entries in ACDOCA are written without a respective
document header (for example, carry forward or corrections in migration). These entries do
not represent standard business processes. The corresponding line items have “artificial
document numbers” beginning with letters (for example, “A”).
The ACDOCA table contains all of the fields needed for G/L, CO, AA, ML, and CO-PA,
providing a single "source of truth" for all of these modules. For CO, the Universal Journal also
contains all cost elements, including secondary cost elements, which are also in SAP S/
4HANA G/L accounts.
In addition, the Universal Journal has Multi-GAAP capability using an RLDNR dimension. It
uses a six–digit field for line item numbering and 23 digits for currency fields.
As in SAP ERP, the Universal Journal can be extended easily with customer fields. The
extensibility is available for all components that use the Universal Journal (G/L, CO, AA, and
ML):
● P&L line extension using CO-PA capabilities is provided, both for field definition
(characteristics) and the rich derivation tools from CO-PA.
● The standard General Ledger coding block extensibility can be used and affects the
Universal Journal.
● The new SAP S/4HANA based reporting of all components (G/L, AA, ML, and CO) can
access the customer fields.
The Prima Nota is the source document that triggers the creation of journal entries. It has the
following features:
● It is the single anchor that allows, for example, the reversal of the complete process
triggered by the Prima Nota.
● The Prima Nota keeps the information that has been entered into the system, before
derivations, enrichments, splits, and so on, take place in Accounting to create journal
entries.
● In many cases, the Prima Nota is a document outside SAP Financials. Examples include:
Expense Reports, Invoices, and Payroll documents.
● For posting within the SAP Financials world, a Prima Nota is needed as well.

● For classical FI postings (FB01, FB50, FB60, FB70, and so on) the Prima Nota is still stored
in table BSEG, and the corresponding journal entries (there can be several due to the
multi-GAAP capability) are written to table ACDOCA.
● For classic (manual) CO postings, the Prima Nota is still written to table COBK. The
corresponding journal entries are written to table ACDOCA. A Prima Nota is written as well
in cases, where "CO" is triggered using BAPI interfaces (AWTYP <> AFRU or CATS).
● For allocation postings (assessment, settlement, and so on), no Prima Nota is required
and data is written to table ACDOCA only. The allocation process has its own history
management (for example, canceling an allocation journal entry).
● Material price changes (MR21) or Material Debit/Credit (MR22) create a Prima Nota in the
material ledger (tables MLHD, MLIT, and so on). The respective journal entries are posted
to ACDOCA.
Figure 24: External Postings with SAP S/4HANA Finance
Postings from outside SAP Finance (except AA) into SAP Finance use a standardized
Accounting Interface, so the other applications do not focus on the changed data structure
and posting logic inside Finance.
BSEG summarization works and can be used as usual (SAP Note 2179270). BSEG is used for
storing open items and clearing details, therefore you can be quite aggressive with the
summarization. ACDOCA stores the full detail that is needed for all components that are
based on ACDOCA (G/L, AA, ML, CO, and CO-PA). The table BSEG should be summarized as
far as possible and the table ACDOCA should be summarized as little as possible to enable
reporting that is as differentiated as possible in the table ACDOCA. The summarization in the
table ACDOCA can, at most, be as large as that of the table BSEG, since line items in the table
ACDOCA cannot be summarized further than the corresponding line items in the table BSEG.
In SAP Accounting powered by SAPHANA 1503, On-Premise Edition, SPS 1511, or S/4 HANA
OP 1511 or corresponding higher releases, a function has been implemented to summarize the
line items in the table ACDOCA and to summarize CO-PA profitability segments. You can find
these along with additional documentation in customizing at Financial Accounting
(New) → Financial Accounting Global Settings (New) → Document → Document
Summarization. From here, you can also access the summarization of the table BSEG,

described in SAP Note 36353. Because the margin-based CO-PA line items including the
profitability segment number and the resolved characteristic vector are stored in the table
ACDOCA, the same summarization settings are used for CO-PA profitability segment
determination. You can, therefore, find these settings along with documentation and the
existing summarization for costing-based CO-PA line items at Controlling → Profitability
Analysis → Flows of Actual Values → Initial Values → Summarization.
LESSON SUMMARY


Unit 1
Learning Assessment
1. SAP HANA is designed for supporting both Online transactional processing and Online
analytic processing.
Determine whether this statement is true or false.
X True
X False
2. SAP S/4HANA can run on non-HANA databases but it is slower.

X True
X False
3. The on-premise edition of SAP S/4HANA can interface with SAP Cloud Platform even
though it is a cloud-only solution.
X True
X False
4. Improvements to finance with SAP S/4HANA concern core accounting functions alone
currently.
X True
X False
5. An existing SAP ERP customer can upgrade their existing system to SAP S/4HANA only if
they have already implemented new G/L accounting.
X True
X False

Unit 1: Learning Assessment
6. Thanks to the compatibility views all custom code developed in a legacy system can
continue to work in SAP S/4HANA.
X True
X False
7. An administrator can customize the default applications that a user sees in his Launchpad
with the Fiori Launchpad Designer.
X True
X False
8. The universal journal replaces all financial line item tables, including BSEG, COEP, and all
CO-PA tables.
X True
X False
9. Using physical totals tables to aggregate data gives the SAP S/4HANA an advantage in
speed and flexibility.
X True
X False

Unit 1
Learning Assessment - Answers
1. SAP HANA is designed for supporting both Online transactional processing and Online
analytic processing.
X True
X False
Correct. SAP HANA is designed for supporting both Online transactional processing and
Online analytic processing.
2. SAP S/4HANA can run on non-HANA databases but it is slower.

X True
X False
Correct. SAP S/4HANA is built natively and optimally to run only on the SAP HANA
platform.
3. The on-premise edition of SAP S/4HANA can interface with SAP Cloud Platform even
though it is a cloud-only solution.
X True
X False
Correct. The on-premise edition of SAP S/4HANA can interface with SAP Cloud Platform
even though it is a cloud-only solution.
4. Improvements to finance with SAP S/4HANA concern core accounting functions alone
currently.
X True
X False
Correct. Improvements to finance with SAP S/4HANA does not only concern core
accounting functions.

Unit 1: Learning Assessment - Answers
5. An existing SAP ERP customer can upgrade their existing system to SAP S/4HANA only if
they have already implemented new G/L accounting.
X True
X False
Correct. An existing SAP ERP customer can upgrade their existing system to SAP S/
4HANA without implementing new G/L accounting.
6. Thanks to the compatibility views all custom code developed in a legacy system can
X True
X False
Correct. With compatibility views, not all custom code developed in a legacy system
7. An administrator can customize the default applications that a user sees in his Launchpad
with the Fiori Launchpad Designer.
X True
X False
Correct. An administrator can customize the default applications that a user sees in his
Launchpad with the Fiori Launchpad Designer.
8. The universal journal replaces all financial line item tables, including BSEG, COEP, and all
CO-PA tables.
X True
X False
Correct. The universal journal does not replace all financial line item tables, including
BSEG, COEP, and all CO-PA tables.

9. Using physical totals tables to aggregate data gives the SAP S/4HANA an advantage in
speed and flexibility.
X True
X False
Correct. Using physical totals tables to aggregate data does not gives the SAP S/4HANA
an advantage in speed and flexibility.


UNIT 2 Structures, Master Data,
Process Control, and Reporting
Lesson 1
Managing the Structures 37
Lesson 2
Explaining the New Concept of Cost Elements 57
Lesson 3
New Hierarchies and Allocations Tools 63
Lesson 4
Budgeting and Period Lock 75
Lesson 5
SAP S/4HANA Analytics 91
UNIT OBJECTIVES
● Ledgers in SAP S/4HANA

● Configuring Controlling Integration
● Explain the Material Ledger
● Define cost elements and other CO Master Data
● Understand the New Hierarchies
● Understand the New Allocation Apps
● Discussing Period Lock
● Set Up Budgeting for Cost Centers
● Explain reporting options in SAP S/4HANA

Unit 2: Structures, Master Data, Process Control, and Reporting

Unit 2
Lesson 1
Managing the Structures
LESSON OBJECTIVES
Ledgers in SAP S/4HANA
Figure 25: General Ledger Technical Changes Compared to New G/L
In the new General Ledger (G/L), data previously stored in FAGLFLEXA, and FAGLFLEXT
(carry forward) is now stored in the table ACDOCA.
Data of the new G/L industry tables for Public Sector and Joint Venture Accounting
(FMGLFLEXA/T, PSGLFLEXA/T, and JVGLFLEXA/T) is now stored in the table ACDOCA.
A compatibility view is provided for table FAGLFLEXA: FGLV_FAGLFLEXA. This compatibility
view redirects select statements from FAGLFLEXA to ACDOCA.
Customer data created new G/L tables ZZ<CUST>T and ZZ<CUST>A are now stored in the
table ACDOCA.
Compatibility views for the New G/L industry tables are provided, V_<Industry>A,
V_<Industry>T.

Compatibility views are provided for the customer created new G/L tables. The views are
numbered sequentially: ZFGLV_GLTT_Cx (totals) and ZFGLV_GLSI_Cx (line items), where x is
a number.
Figure 26: Controlling – Technical Changes with SAP S/4HANA Finance
The following are the features of Actual Items:

● Actual data of COEP (value types ‘04’ Actual, and ‘11’ Statistical Actual) is stored in
ACDOCA.
● Required actual data for long running orders or projects from COSP_BAK and COSS_BAK
is stored in the table ACDOCA.
● Currently, the header table COBK is written as before. The target is to replace COBK
through BKPF.
● Compatibility views V_<TABLENAME> (for example, V_COEP) are provided to reproduce
the old structures.
● Access to data in the old tables is still possible using the views V_<TABLENAME>_ORI (for
example, V_COEP_ORI).
● COSP_BAK: Cost Totals for External Postings.
● COSS_BAK: Cost Totals for Internal Postings.
● COEP: Line Items by Period.
The following are the features of Non-actual Items:

● Value types other than 04 and 11 are still stored in COEP, COSP_BAK and COSS_BAK.
Value Types:
● 1 Plan
● 2 Plan: Splitting Among Activity Types
● 3 Actual: Splitting Among Activity Types

Lesson: Managing the Structures
● 4 Actual
● 5 Target
● 6 Target (WIP)7 Target: Splitting Among Activity Types
● 8 Plan: Correction for Internal Bus.Vol Between Cost Centers
● 9 Actual: Correction for IBV Between Cost Centers
● 10 Statistical Plan
● 11 Statistical Actual
● 12 Down Payment as Operating Expense
● 13 Statistical Down Payments as Expense
● 19 Order Receipt/Orders Balance
● 21 Commitments from Purchase Requisition
● 22 Purchase Order Commitment
● 23 Reservation Commitment
● 24 Funds Commitment
● 25 Remainder from Apportioned Orders/Networks (Order Commitmts)
● 26 Commitments from Transfer Price Agreement
● 28 Value from Customer Quotation
● 29 Value from Sales Order
● 2A Funds Reservation
Figure 27: Standard Ledger and Extension Ledger – Use Cases

In new General Ledger Accounting, different accounting principles can (still) be mapped using
the accounts approach. In addition to accounts, however, the new G/L also allows you to use
different ledgers to save the different valuation approaches. This is called the ledger
approach.
In an account approach, there is only one ledger, the leading ledger, 0L. In a ledger approach,
there are other ledgers next to the leading ledger. These ledgers are all called standard
ledgers. A standard ledger contains a full set of journal entries for all business transactions.
In addition, other extension ledgers can be added. Extension ledgers are based on underlying
ledgers.
An extension ledger is assigned to a standard ledger, and inherits all journal entries of the
standard ledger for reporting. Postings made explicitly to an extension ledger are visible in
that extension ledger, but not in the underlying standard ledger.
Note:
As of SAP S/4HANA 1909, extension ledgers can be based on other extension
ledgers. However, the first extension ledger (in the sequence) must be based on a
standard ledger.
An extension ledger stores delta values and points to another ledger, providing a flexible
mechanism for adjustments and reporting. An important use case is for management views
on top of legal data (IFRS or Local GAAP). Besides creating a master record, Extension
Ledgers need no additional configuration. Reporting on the extension ledger always includes
the data of the underlying ledger (in the figure, Standard Ledger and Extension Ledger – Use
Cases, this is the IFRS Ledger). Multiple extension ledgers can point to the same underlying
ledger. The benefit of this is a reduced data footprint and zero reconciliation effort as only
delta values are kept.
Like standard ledgers, extension ledgers are stored in the universal journal. Extension ledgers
can be assigned their own booking period variants. This means that the standard ledger can
be closed and the assigned extension ledger can be opened.

Figure 28: Extension Ledger – Basic Idea
Each specific ledger is self contained, has a special purpose, and provides a specific view of
financial data. A ledger usually stores a lot of redundant data compared to other ledgers. With
extension ledgers, you can “staple” ledgers on top of each other, providing the different views
that you need. This minimizes the data footprint and provides new flexibility for creating
additional views easily.
The underlying ledger must be a standard ledger.
When posting to a ledger group, ACDOCA is posted in any case taking the respective ledgers
into account. BSEG is only written in case open item managed accounts are affected (for
example, for cross-company postings) and the ledger group contains the leading ledger.
When posting to an extension ledger, ACDOCA stores the data for all extension ledgers, but
BSEG does not store any extension ledger data. Implementing the
BADI_FINS_APPL_RELEVANCE BAdI allows you to feed components, such as PCA, FI-SL, or
EC-CS, with the data posted to extension ledgers. This functionality should be handled with
care. It is up to the implementation in the BAdI to clearly separate extension ledger data from
other data.
Extension ledgers can have different ledger types:
● Standard journal entries: Used to store additional data, for example, used for different
accounting principles.
● Line items with technical numbers / deletion possible: used in FI to store additional data
for foreign currency valuation.
● Line items with technical numbers / no deletion possible: Used to store commitments in
table ACDOCA and to store the values of incoming sales orders and of statistical
conditions for margin-based CO-PA. More information about this functionality is provided
in Unit 3 of this course.

● Journal entries for valuation differences: Used to store the results of alternative valuation
runs in actual costing.
Figure 29: More Currencies in Universal Journal
Since SAP S/4HANA Finance OP 1605 and SAP S/4HANA OP 1610, the Universal Journal
supports the following additional new parallel currency features:
● You can configure, per company code and ledger, two fixed currencies and up to eight
freely defined currencies.
● The customer can configure new currency types in the customer name space.
● Freely defined currencies for parallel G/L ledgers do not depend on the leading ledger.
● Real-time currency conversion exists in the Accounting Interface with balance zero per
document for all currencies.
● The freely defined currencies are integrated in several business processes (for example,
Open Item Management). For some specific business processes, differences might occur
(“Clearing effects").
Currency Fields of ACDOCA

Local Currency:
● Currency type 10 *
● ACDOCA field name is HSL
Global Currency:
● Currency type of controlling area *
● ACDOCA field name is KSL
● KFSL for the fixed amount
Freely Defined Currencies 1 - 8:

● You can configure any currency type *

● There is no dependency on currency types of the leading ledger

● ACDOCA field names: OSL, VSL, BSL, CSL, DSL, ESL, FSL, and GSL
* If you activate parallel valuations with transfer prices, additional rules/constraints are valid.
In the customizing transaction for Ledgers and Currency Types, you define the following:
● Currency Types
● Currency Conversion Settings
● Ledger Master Data
● Company Code Assignment to Ledgers
● Used Currency Types per Ledger/Company Code
The list of Currency Types is now extensible with the following customer-defined currency
types:
● SAP namespace 0* - 9*
● Customer namespace Y* Z*
● Settings Def. Level: Defines whether currency conversion settings are maintained once
globally or specifically per company code.
You can define your own descriptions of the currency types in Customer namespace, which is
displayed in the user interface as a field label.
Depending on the definition level (global or per-company code) you use, the corresponding
views for the conversion settings are as follows:
● Currency: Only for a customer-defined Currency Type
● Source Currency Type (any other currency type can be used as a source)
● Exchange Rate Type
● Translation Date Type
● Real-time conversion: Operation postings in the period are converted if real-time
conversion is set. Otherwise, the currency can be filled with a foreign currency valuation in
the period-end close.
Figure 30: Ledger Master Data
You configure the available ledgers. A new ledger can be a standard ledger or an extension
ledger. For extension ledgers, you also define an underlying standard ledger.
You can assign company codes to the ledger as follows:

● Local Currency is always Currency Type 10 *

● Global Currency is always the currency type of the controlling area * (It is empty if the
company code is not assigned to a controlling area)
● Freely Defined Currency 1 - 8 can be configured here
● Definition of Fiscal Year Variant
● Posting Variant
● Flag whether the Parallel Accounting with Ledger or a GL Accounts approach is used
● Definition of the three currencies that are relevant for BSEG (formerly the T001A setting).
You can choose from the 10 configured currencies for ACDOCA
* If you activate parallel valuations with transfer prices, additional rules/constraints are valid.
Real-time currency conversion for all currency types is possible.
A balance of zero per document is guaranteed.
CO area currency is now converted for all items (including non-cost elements).
Processes with “clearing-like logic” for all items (such as open item clearing, allocations, and
so on) require that the amounts are selected from historical data. This is not yet supported for
all processes. As a fallback, the amounts are converted with the current exchange rate. In
such a case, the process might leave a leftover, caused by rounding differences or different
exchange rates.
“Clearing-like logic” for new currencies is available for the following:
● Currency conversion for new currencies types
● Open Item Management FI-AR, FI-AP, and FI-GL
● CO allocations and GL allocations
“Clearing-like logic” for new currencies is not available for the following:
● Fixed asset processes like depreciation
● ML processes
● CO settlement and reposting
● Regrouping AP/AR
New Currencies can be used in the following ways depending on the installation:
● New installations:
- You can configure the new currencies in the universal journal.
- It is important to carefully consider which currencies are integrated with BSEG, FI-AA,
CO, ML, and FI-AA, and which are generically converted.
● Migration of customer installations:
- Migration from ERP or SFIN 1503.
- Old currency configuration is migrated without changes.

- SAP S/4HANA migration is not able to introduce new currencies.

- Currency configuration of installation with Transfer Prices active makes use of the new
currency fields (see Early Knowledge Transfer for Transfer Prices for details). Migration
will set up a multi-valuation ledger.
- Usage of additional currencies is not possible without an System Landscape
Optimization (SLO) project.
Based on what kind of journal entries you want to post to the extension ledger, you can
define 3 extension ledger types:
■ Standard Journal Entries– stores journal entries with real document numbers.
These journal entries cannot be deleted and have to be reversed when required. Use
cases – management adjustments, tax adjustments, realignments.
■ P – Line items with technical numbers /no deletion possible (former Prediction) –
stores journal entry with technical numbers only, without document numbers. They
cannot be deleted and have to be reversed when required. Use cases – predictions,
commitments, statistical sales conditions.
■ S – Line items with technical numbers/deletion possible (former Simulation) –
stores journal entry with technical numbers only, without document numbers. They
can be deleted. Use cases – simulation, posting.
Customize Controlling Integration
Figure 31: Document Type and Ledger Groups in Controlling

Figure 32: Define Document Type Mapping Variants for CO Business Transactions
Assign the document type for postings in Controlling to a document type mapping variant.
You should copy the provided sample to a customer-specific entry. The entry is created
automatically in case you already use real-time integration in the new G/L.
Figure 33: Connecting the Ledger to Controlling

Figure 34: Check and Define Default Values for Postings in Controlling
Figure 35: Define Intercompany Clearing Accounts

Figure 36: Summarizing Management Accounting Customizing
Configure CO & FI Integration

Since CO transactions are included with the FI transactions in the central journal, there are
configuration settings that are required. This procedure is training landscape specific.
1. Go to the implementation guide in the SAP GUI.
2. In the Define Settings for Ledgers and Currency Types in the implementation guide, verify
the leading ledger and an extension ledger that it is assigned to it.
a) Go to Financial Accounting → Financial Accounting Global Settings.
b) Choose Ledgers → Ledger → Define settings for Ledgers and Currency Types.
c) Return to the Display IMG screen.
You see the leading ledger 0L and the extension ledger Z0 with the underlying ledger 0L.
3. In the Define Document Types for Postings in Controlling, what is unique about the CO
document type?
a) Go to Financial Accounting → Financial Accounting Global Settings → Ledgers
→ Integration of Controlling with Financial Accounting .
b) Choose Define Document Types for Postings in Controlling.
c) Double click the CO document type.
d) Return to the Display IMG screen.
The account types allowed include both G/L Accounts and Secondary Costs.
4. In the Define Document Type Mapping Variants for CO Business Transactions, look up the
default document type assignment.
a) Choose Define Document Type Mapping Variants for CO Business Transactions. The
document type mapping variant for CO-FI Real-Time Integration is displayed.
b) Highlight the variant → Double click Mapping of CO Bus. Transactions to Document

Types.
c) Return to the Display IMG screen.
Each CO business transaction has the CO document type.

5. In the Check and Define Default Values for Postings in Controlling, display the document
type mapping variant for each company code.
Each company code has the 000000A000 document type mapping variant.
6. In the Define Ledger for CO Version, what is the version and ledger assignment for
controlling area A000?
Controlling area A000 is using the 0 version and the 0L ledger. Controlling reads the
actual data (postings) from the G/L ledgers that are specified here.
The Material Ledger
Figure 37: Material Ledger: Trends in Material Management and Valuation
Figure 38: Technical Changes to the ML with SAP S/4HANA
In SAP S/4HANA, you always use inventory valuation in parallel currencies. In ERP, this was
only possible with the Material ledger. So it is said that in SAP S/4HANA, the Material Ledger
is always active, which is not entirely accurate.
What was stored in ERP in the Material Ledger tables, is now stored in ACDOCA:

● The contents of the MLIT, MLPP, MLPPF, MLCR, MLCRF, MLCD, CKMI1, and BSIM tables is
now stored in ACDOCA. MLHD data is stored in BKPF.
● The compatibility views V_<TABLENAME> (for example, V_MLIT) are provided to
reproduce the old structures.
● Access to old data in tables is still possible using the views V_<TABLENAME>_ORI (for
example, V_MLIT_ORI).
● MLHD, MLIT, MLPP, and MLCR still keep Prima Nota information, in case of manual price
changes or material debit / credit.
If the Material Ledger is used for Actual Costing purposes, as of release 1610, new tables are
used.
Figure 39: Material Valuation in SAP S/4HANA

Figure 40: Material Valuation Methods SAP S/4HANA Supports All ERP Valuation Methods
SAP S/4HANA supports all valuation methods known from SAP ERP.
Figure 41: Types of Material Ledger
Price determination 2 in the material master record indicates that the material ledger is
active, but we still use a moving average price, which can change at any time. In this case, line
items are stored in the table ACDOCA and this source is used to show prices and values in the
material master.
Price determination 3 in the material master record indicates that the material takes part in
the actual costing run and must therefore be S-price indicated. The V-price is periodic and will
be updated only with the actual costing. The data structure has been redesigned. If you

activate the functionality “Actual Costing” for a plant, you will store data in the tables MLDOC
and MLDOCCCS, in addition to the table ACDOCA.
New Programmed Actual Costing
Figure 42: Simplified Data Structure for Actual Costing
The goals of the new architecture are:

● Simplified and optimized data structure
● Removal of aggregates
● Optimization for column-based database
● Simplified handling
● Elimination of existing pain points and restrictions
● Decoupling of costing steps from ERP system
● Central actual costing in distributed systems
● Flexible granularity of material valuation (company code versus plant, group of materials
versus material number, and so on)
With the simplified and optimized data structure, it is built according to the costing scheme in
actual costing, containing all data necessary for actual costing. This simplifies the calculation
logic significantly and allows cross-system calculations. The new data structure is optimized
for column-based databases and it is easy to consume for reporting. Aggregates are
removed, therefore we achieve a higher data throughput for goods movements (insert only)
and a reduced memory footprint.

Figure 43: Data Display of Actual Costing
Material Price Analysis (CKM3N) is widely used to analyze all factors contributing to the cost
of a material.
You can switch between valuations and currencies and navigate between periods in this view.
Figure 44: Reduced Number of Steps in Costing Cockpit
The simplified calculation logic includes:

● Wrapping of a single-level calculation, multi-level calculation, WIP calculation, and

revaluation of consumption into one single closing step
● Generalized calculation logic with significantly reduced complexity
● Significant reduction of complexity in exceptional cases
● Optimized rounding logic for calculation of cost component split
● Optimization of iteration cycle calculation
● Significant reduction of complexity for cumulated alternative valuation runs (AVR)
● On-the-fly-aggregation within AVR
● About 10 times faster than the old costing procedure
Overcome existing restrictions:

● S-Price changes during the period are theoretically allowed. It works in Actual Costing, but
other modules may have problems with this, for example, variance calculation on
production orders. Therefore, it is not recommended.
● Price differences of consumptions are taken into account.
● Differences are settled to consumption even if total consumption is zero.
● No lock issues of costing run with operational transactions within the actual period.
● Preliminary valuation for actual cost component split available, therefore precise
calculation of actual cost component split.
Simplified Handling:
● Reduction of costing steps
● No problems and corrections required in the case of delayed price release
● Optimized status handling of dependent objects in the case of repeated processing
● Significant reduction of complexity in exceptional cases
Transferring the actual cost component split to margin-based CO-PA
The result of the actual costing is stored in an actual cost component split. This split can be
used to post the differences to the standard cost component split as delta postings to the
accounts.
The revaluation of COGS split postings applies delta cost component split from actual costing
to margin-based CO-PA controlled by a new checkbox in the COGS split configuration.
If you decide in actual costing settlement for revaluation, the delta is posted to the regular
COGS account. There it is split
● either based on components of the delta cost component split.
● or based on components of the standard cost component split.
We will find more information to this in Unit 3.

Inventory Accounting and the Universal Journal
Figure 45: Inventory Accounting and the Universal Journal
Classic material valuation provides balances per inventory account in company code
currency. These values are now included in the Universal Journal.
The Material Ledger provides balances per inventory account in multiple currencies. These
values are now included in the Universal Journal.
The Material Ledger also provides options to perform multilevel actual costing. This will be
performed using a costing run as before (not in scope for the Universal Journal).
LESSON SUMMARY


Unit 2
Lesson 2
Explaining the New Concept of Cost Elements
LESSON OBJECTIVES
Cost Elements
Figure 46: New Data Model for Both Master Data in SAP Accounting
In the classical data model, an account consists of charts of accounts data (SKA1), company
code specific data (SKB1), and the account’s description (SKAT).
If an account is relevant for Controlling, a cost element (primary cost element) must also be
generated. During the creation of the cost element, the tables CSKA, CSKB, and CSKU are
updated. Secondary cost elements exist only in Controlling, so only the CSK* tables are
updated.
In the new data model, only one master record is necessary, which is the account. A new field
is added (GLACCOUNT_TYPE) to differentiate between the different G/L account types.

Figure 47: Merge of Account/Cost Element in Chart of Accounts
With an intention of reducing the number of GL accounts and for simplifying the payment
process and cash reporting, SAP has introduced a new way of mapping house banks with GL
accounts. With this new method, it is possible to assign multiple house bank accounts to the
same GL account.
To facilitate this, a new GL account type called ‘Cash Account’ is provided. When a user
creates a GL account with account type ‘Cash Account’ another field appears called ‘GL
Account subtype’. The following values are possible in this field:
● B – Bank Reconciliation Account
Reconciliation account for house banks. You assign the required clearing accounts to this
reconciliation account.
● S – Bank Subaccount
Clearing account of a bank reconciliation account for payments in transfer. When you create
this subaccount, you need to enter the bank reconciliation account it is connected with.
● P – Petty Cash
Used for petty cash (accounts assigned in cash journal) accounts.

https://blogs.sap.com/2020/10/16/bank-reconciliation-accounts-in-s-4hana-2020/
There are P&L accounts for non-operating expenses and revenues, for example, those parts
of the P&L that were never associated with a cost center, order, or CO-PA characteristics in
the past.
There are P&L accounts for the primary cost elements. These are the cost elements used for
salary expenses in Cost Center Accounting, material expenses in Order and Project
Accounting, and revenues and sales deductions in margin-based CO-PA.
The new approach is that we have P&L accounts for the secondary cost elements. These are
all accounts used to post allocations in Management Accounting.

Lesson: Explaining the New Concept of Cost Elements
Figure 48: Account Type and Cost Element Specific Attributes
The figure, Account Type and Cost Element Specific Attributes, shows the new account types
and the extra fields for those accounts that represent cost elements.
Figure 49: Cost Element Categories for G/L Accounts from Type 'Primary Costs or Revenue'
The cost element category is maintained on the Control Data tab and specifies the
transactions in which the cost element can be used.

Figure 50: Cost Element Categories for G/L Accounts from Type Secondary Costs
Accounts of type Secondary Costs can be used only for internal CO allocations.
If you want to plan or budget amounts for your capital expenditure G/L accounts on costing
objects, you need to define these accounts as statistical cost elements.
Statistical cost elements (category 90) are created as follows:
● You create a Balance Sheet G/L Account.
● The Account Group is the one that is used for fixed asset or material accounts.
● The account is a reconciliation account for assets or material.
● The accounts have been set up in the Asset or Material management account assignment.
● You select the Record Account Assignment checkbox.
A default account assignment can be defined using the transaction for Default Account
Assignment (OKB9), or through substitution rules. Default account assignments maintained in
former cost element master data are migrated to transaction OKB9 as part of the migration
process.

Lesson: Explaining the New Concept of Cost Elements
Figure 51: Trial Balance with Secondary Cost Elements
The trial balance includes the secondary cost elements. Because these are a closed system
(only internal CO allocations can be done with these accounts), they always balance to zero
amongst themselves.
Figure 52: Impact on Authorizations
The merge of cost elements and G/L accounts requires adjustments to authorizations for
creating cost elements, as follows:
● If you want to maintain accounts of the account type Primary Costs or Revenue, you must
have authorization to create or change cost element master data.
● If you want to maintain accounts of the account type Secondary Costs, you must have
authorization to create or change G/L accounts.
To check or change the authorizations, use transaction PFCG. The standard delivered SAP
Role is FUCN_GL_ACCOUNTANT (G/L Accountant).
LESSON SUMMARY


Unit 2
Lesson 3
New Hierarchies and Allocations Tools
LESSON OBJECTIVES
Global Hierarchies
You can create and maintain Global Accounting Hierarchies using the app Manage Global
Hierarchies.
Figure 53: List of Existing Hierarchies
Note:
There are delivered hierarchy types and customers can also add others via the
Custom Hierarchy Types app.
You can maintain an existing hierarchy by selecting it. Choosing Create you can create a new
hierarchy. The hierarchy type determines the type of objects for which the hierarchy is
created, e.g. cost center hierarchy, G/L account hierarchy or profit center hierarchy. The

basic idea of the global hierarchy is to have one common hierarchy tool for many objects
types.
Figure 54: Creation of a New Global Hierarchy
You select the hierarchy type and the validity time frame. You can choose to keep
compatibility with the old hierarchy tools (for example, cost center standard hierarchy),
where the number of letters and numbers for a node could not exceed 14.

Lesson: New Hierarchies and Allocations Tools
Figure 55: Display of the Resulting Hierarchy
You can add:

● Manually defined subnodes with free names
● Subnodes of other global accounting hierarchies
● Single objects (of the chosen object type)
● Object ranges (of the chosen object type)
There are several options in SAP S/4HANA when it comes to hierarchies. The summary below
can be used to match up requirements with hierarchy types.

Traditionally, the cost center groups were used in ECC. SAP S/4HANA also has the flexible
and global hierarchy options available. Global hierarchies can be set as compatible to cost
center groups. For example, you can create a global cost center hierarchy and use it in the
activity price calculation.
Apps that use the SAP GUI reports can use CCGs as well as GHs set as compatible. Apps that
use BW Queries can use GHs and FHs but not CCGs. Apps that use CDS view can use CCGs as
well as GHs set as compatible. Apps that use BW Queries can use GHs and FHs but not CCGs.
BW queries and CDS views can also be executed in Analysis for Office.
Flexible Hierarchies
Beside the well-known Standard Hierarchy and Alternative Hierarchy (groups) for cost
centers and profit centers, SAP S/4HANA provides the following additional hierarchies, for
use in reporting and later in planning:
● Flexible Hierarchy
● Global Hierarchy
Flexible Hierarchy
The flexible hierarchy can be created and administrated using the app Manage Flexible
Hierarchies.
Figure 56: List of Existing Hierarchies

The app list shows all flexible hierarchies that match the filter values. You can maintain a
hierarchy by selecting it. Using the Create icon, you can create new hierarchies.
Figure 57: Edit Filter Criteria and Structure
With the hierarchy type, you select the type of cost objects for which you want to set up the
hierarchy. You can select and sort fields out of a field list to determine the structure and the
drill-down logic of the resulting hierarchy.
By changing the structure fields and their sorting, you can change the drill-down logic of the
hierarchy and therefore the created nodes.
Flexible Hierarchies are based on hierarchy rules and master data and attributes that can be
extended by the customer. After maintaining the attributes on cost centers or profit centers
and defining the hierarchy rule, you can flexibly generate multiple hierarchies with a focus on
these master data or attributes. Custom fields can be used as tags, but these cannot build a
hierarchy.
The master data sequence can be determined. So Flexible Hierarchies provide a fast and
efficient way to setup different hierarchies in parallel just by using a different sequence of
master data fields.
In Edit mode, under Master Data, select Use Existing Master Data in order to read the latest
values if needed. Then choose Preview to check the generated hierarchy on the Nodes tab. All
the entities, for example the profit centers, that miss values of certain master data attributes
are listed under the node Unassigned. You can also check their details on the Unassigned tab.
If everything looks fine, go ahead and submit the hierarchy. Otherwise, cancel and make any
necessary changes. The Update Master Data option is only applicable to master data with
extended fields.
The hierarchies can be consumed in all CDS/ BW view-based reports, Design Studio based
reports, Analysis for Office and SAP Lumira.

Where-Used Lists
You can look up where a certain object is used in the system using the respective app for the
object, for example the app Where-Used List – Cost Center.
Figure 58: Where-Used List for a Cost Center: Overview
In the figure, Where-Used List for a Cost Center: Overview, you see all of objects that the cost
center is used in and you can see the number of objects, for example, you see the assignment
to four cost center groups / hierarchy nodes.
Figure 59: Where-Used List for a Cost Center: Assignment to Cost Center Groups

In the figure, Where-Used List for a Cost Center: Assignment to Cost Center Groups, you see
the four cost center groups/ hierarchy nodes in detail.
Figure 60: Where-Used List for a Cost Center: Assignment to a Profit Center
In the figure, Where-Used List for a Cost Center: Assignment to a Profit Center, you see the
assigned profit center with some important information and the possibility to drill-down
directly to the profit center master data and the profit center group.
Universal Allocation
Figure 61: Challenges

The old transactions provide different allocation tools specialized to methods and object type.
The idea now is to simplify allocations by combining various capabilities under one umbrella
for many object types.
Figure 62: One Tool for All Allocations
The universal allocation:

● Provides one architecture for FI and CO allocations
● Combines actual and plan
● Provides simulation capabilities
● Includes actual data of ACDOCA and predictive data of extension ledgers
● Presents data in a common structure
● Provides all required reporting currencies
● Shows currency breakdown
● Can be enhanced / extended
● Provides traceability of the value flow
● Simplifies the process with guided procedures and validations
The Universal Allocation does yet not cover activity allocations and settlements, for example,
of internal orders and WBS elements.
You can use the new allocation tool using the app Manage Allocations.

Figure 63: List of Allocation Cycles
The app is the single point for the creation and maintenance of allocation cycles and
segments. Currently, the contexts of cost center and profit center allocations are supported.
As allocation types are yet offered actual and plan allocations / distributions and overhead
allocation (assessment). The application consists of list reporting of cycles and of object
pages for cycle and segment details.
After you start the app, use the Go icon to list the existing allocations cycles that match the
selected filter options. You can edit existing allocation cycles or you can create new
allocations cycles with the Create icon.

Figure 64: Creation of a New Cycle
An allocation cycle is always defined for a specific ledger. Selecting the flexible ledger
checkbox in the cycle header allows you to choose to post to a different ledger or ledgers
when you execute the cycle later during the course of business.
In the Allocation Context field, you choose cost centers or profit centers. In the Allocation
Type field, you choose overhead allocation (assessment) or distribution.
Figure 65: Rules, Senders, Receivers, and Tracing Basis
In the next screen you select segments. For each segment, you determine the senders, the
receivers, the tracing factors, the receiver basis, and the receiver weighting factors.

Figure 66: Creation of a New Allocation Run Using the Created Allocation Cycle
Based on this cycle, you create an allocation run, either using the Run icon in the Manage
Allocations app or using the Run Allocations app. After the creation of the allocation run, you
get the message Run Triggered Successfully.
In the list of competed cycle runs, your run displays with the most recent status.
Note:
There is an option to derive the functional area(FA). If it is ON, the receiver FA is
booked. If it is OFF, the sender FA is booked.
Note:
When you run several cycles together, all cycles run, one after the other. If you
want to parallelize the run of cycles, you need to assign the cycles a cycle run
group. Use the Manage Cycle Run Groups app to do this.
Figure 67: Overview of Sender – Receiver Relations
In the Run Allocations app, you can use a Network Graph (NG) to analyze the sender-receiver
relationships based on the allocation results.

Figure 68: Analysis of the Allocation Results
In the display of the network graph, you can filter the objects with their results on each side of
the relation.
LESSON SUMMARY

Unit 2
Lesson 4
Budgeting and Period Lock
LESSON OBJECTIVES
The Period Lock Concept
Figure 69: Effect on Period Lock
In SAP Accounting CO, relevant postings only check the CO Period Lock as in the past; they
also check the G/L period opening or closing. Therefore, you must allow postings to accounts
from account type “Secondary Costs” in the G/L period opening/closing.

Figure 70: Period Lock in CO
In CO, you need to specify which transactions you want to lock, and for which periods.
For example, you lock periods 1 and 2 against actual overhead assessment postings. All other
postings in these periods are allowed.
Figure 71: Period Lock in FI

Lesson: Budgeting and Period Lock
In ECC, postings within the same company code and profit center in CO can occur even if
interval 1 is closed.
In S/4HANA, postings within the same company code and profit center in CO cannot occur if
interval 1 is closed. This is due to the fact that cost elements are integrated into the G/L
Accounts.
As an example in S/4HANA, let's assume that period 3 has been closed for FI and it is now
April 15, 2022. You still need to make some adjusting entries in CO between cost objects that
belong to the same company code and profit center (ie,. no intercompany transactions are
needed).
● FI postings can be blocked for period 3 by setting interval 1 From Period to 4.
● CO postings can be allowed for period 3 by setting interval 3 From Period to 3.
In transaction OB52, you can specify for each variant which posting periods are open for
posting. For this, you can choose between period intervals 1 to 3.
You can use period intervals 1 and 2 for all normal posting processes in regular and special
periods. For period interval 1, you can enter a group of authorized users. This means that, for
month-end or year-end closing, for example, you can open posting periods for specific users
only. You make the necessary authorization settings in the optional authorization object
Accounting Document: Authorizations for posting periods (F_BKPF_BUP). We recommend
using period interval 1 for special periods because authorizations can only be managed here.
Period interval 3 is used for postings from Controlling (CO) to Financial Accounting (FI). If you
do not make an entry for period interval 3, the check on these postings is made from
Controlling against period intervals 1 and 2. If you make an entry for period interval 3, the
check on these postings is only made against period interval 3. For each interval, you specify
the lower and upper limits of the posting period as well as the fiscal year.
Instead of using transaction OB52, you can also use report RFOB5200. If you want to use
authorizations to control who is allowed to execute the program RFOB5200 for the opening
and closing of posting periods in the background, refer to SAP note 2251160.
The leading ledger works with the accounting period that is assigned to the accounting area.
Non-leading ledgers can be assigned to different posting period variants.
You must determine which version of the non-leading ledger is not only to be checked at
ledger-group-specific bookings, but also for bookings where the ledger group is blank, by
selecting the Manage Posting Period field in the global parameters of the company code.
With an SAP Fiori application, you can use the Ledger specific period lock to lock the period
per ledger, which is especially useful for working with extension ledgers.

Figure 72: Period Lock Apps
The manage posting period apps are useful for maintaining the settings for open and closed
periods. The cost accounting app is available for use as of Edition 2021 FSP1.
Since the posting period interval 1 applies to CO, the Manage Posting Periods app can be used
to display the CO Period Status.
Figure 73: Period Lock Fiori Apps

Setting Budget Availability Control for Cost Centers
Figure 74: Budget Availability Control on Cost Centers - Set up Steps
Figure 75: Configure Budget Category & Define Budget Checks for Categories
To activate the conversion into parallel currencies, exchange rate type P must be used for the
plan data. The rate is only relevant if the plan data is saved into table ACDOCP.

Note:
Plan data can be imported into table ACDOCP via the app Import Financial Plan
Data or using the API FINPLAN_API_POSTDATA. If you do not enter an exchange
rate type, the system does not convert the plan data into parallel currencies. The
fields for the parallel currencies remain empty.
Users can import financial planning data into this category using the Import Financial Plan
Data app or by exporting from SAP Analytics Cloud (SAC). Users can copy financial planning
data into the category using the Copy Financial Plan Data app. Users can also delete financial
plan data in the category using the Delete Financial Plan Data app.
Plan Category Usage: By selecting "Cost Center Budget" instead of "No specific usage" both in
Category Maintenance and in Budget Checks for categories, the system interprets a plan
category as a budget for availability control.
In Define Budget Checks for Categories, Availability Control field: If selected, the availability
control is activated, i.e. when actual data is posted, the system checks whether the budget
has already been exceeded or is still available and issues a warning or error message
according to the tolerance limit setting.
Budget Consistency Check field: ("budget deficiency check") If selected, the following two
checks are carried out by the system:
● Check 1: When entering the budget and changing the budget
If the time of budget entry is not the first of January of a fiscal year, but e.g. the first of
February of a fiscal year, actual costs are usually already posted to the (budget) cost
centers, which may be higher than the budget still to be entered on each respective
(budget) cost center. In such a situation, the system will generate an error message when
importing this budget amount according to the selected budget consistency check.
● Check 2: when changing master data of a cost center with budget responsibility
If cost centers are not budget cost centers but are assigned to a higher-level budget cost
center (i.e. cost center with budget responsibility) in their master record and this
assignment is changed, an error message is also generated in accordance with the budget
consistency check if the budget of the new budget cost center is too low in relation to the
actual costs already posted directly when changing master data.

Figure 76: Set up G/L Account Hierarchy for Budget Availability Control
The account groups to be taken into account in the budget availability control for cost centers
are defined in the SAP Fiori app Manage Global Hierarchies.
If an expense account is posted to that is included in a hierarchy assigned to the Budget
Availability Control Profile, the available budget is checked. The check is not by account.
Figure 77: Maintain Budget Availability Control Profile

Note:
The cost center budget can only be entered as an annual budget, so no period-
related availability check is possible! A period-based availability check of the
budget was built for Funds Management. This is done via a Release functionality.
The Budget Currency Type is the currency type that is used by budget availability control to
compare costs (and, if applicable, commitments) with the budget.
You can choose between the company code currency or the global currency.
Note:
The cost center budget must be posted accordingly in the same currency type.
In general, it can be decided for each tolerance limit to be set whether a warning or an error
should be displayed.
If a warning has been assigned to a budget tolerance limit, the posting can still be carried out
despite the tolerance limit being exceeded. If an error has been set, the booking will not go
through.
Note:
The warning or error text cannot be maintained.
Figure 78: Dependencies Maintaining the Tolerance Limits
You can create several profiles for budget availability control and assign these profiles to the
various cost centers that are budget-relevant. The budget maintenance is done later per cost
center and fiscal year.
Activities include FI postings by default.

The establishment of the tolerance limits and thus the checking of the available budget takes
place depending on account groups and activity group.
Note:
An existing Budget Availability Control Profile cannot be deleted and only
tolerance limits and currency settings can be changed, i.e. if changes are to be
made to the profile settings, a new profile must be created and the new profile
assigned to the cost center bearing the budget.
Validation logic in general:

If an expense is posted to an account that is part of an account group(hierarchy) and that is
assigned to the Budget Availability Control Profile, the available budget for this account group
is checked.
If the budget consumption exceeds a specified limit, a warning or an error message is issued,
depending on the settings specified in the Maintain Budget Availability Control Profile for Cost
Centers menu.
If a purchase requisition or a purchase order is created that is assigned to a cost center, a
commitment is generated. This commitment also reduces the available budget.
Figure 79: Assign Budget Availability Control Profile to Cost Centers
The budget availability control can be set up with the help of the Manage Cost Centers app.
The budget availability check can be carried out on two different levels:
● For each cost center with its own budget.
● For a budget-bearing cost center that is assigned to several cost centers for postings of
actual costs.
In this case, both the budget consumption of the budget-bearing cost center itself and the
non-budget-bearing cost centers to which the budget-bearing cost center is assigned are
included in the budget availability control of the budget-bearing cost center.

Note:
For cost centers that do not have their own budget and instead use the budget of a
budget-bearing cost center, the budget-bearing cost center must be entered in
the master record of the subordinate cost centers. The budget-bearing cost
center can only be one cost center in the same company code.
Accordingly, in the second case, only the budget-bearing cost center will display the budget
and the available budget in the Cost Center Budget Report!
Figure 80: Budget Document Type for Budget Transfers and Number Range for Budget Documents
The number range that is used to post budget transfer documents to the database must then
be maintained. The document type to which the number range number is to be assigned must
then be created.
Figure 81: Check Prediction Ledger

In Check Prediction Ledge figure, the ZP extension ledger is in the table and is therefore being
used for predictive accounting. In addition, ZP also has budget availability control activated
since Relevant for Commitment Management is selected.
With Predictive Accounting, you can use current data from areas in SAP S/4HANA outside of
Finance, e.g. sales, or integrated products such as SAP Concur or external systems, to predict
future results at any time. This will help you better understand how the accounting results
may be at the end of the current period or quarter and why.
Entering Budget & Checking the Budget Availability Control
Figure 82: Budget Entry on Cost Centers
With the help of the app Import Financial Plan Data, the cost center budget is imported and
linked to the budget availability control.
If in transaction Define Budget Consistency Checks for Categories, the Budget Consistency
Check has been activated for the relevant budget category, the availability checks described
above are carried out when the budget data is imported.
In the case of multiple import runs with the same import parameters, the existing budget data
is deleted and only the new data is imported.
Note:
The budget data is loaded into the ACDOCP table assuming that the BW
variable /ERP/P_0INFOPROV was set to the value /ERP/SFIN_V20.
What should be considered when creating the CSV file:

● Even if the budget is an annual budget, a posting period must be included in the file. The
budget availability control applies throughout the entire financial year. When importing
budget data, SAP recommends using posting period 1, which is also used for reporting.
● At least one account of the G/L Account Hierarchy created for budgeting must be included
in the CSV file.
Any unused amount of the annual budget cannot be transferred to the following year via the
menu path or app.

If a transfer is required, this must be taken into account in the import file.
Figure 83: Budget Entry on Cost Centers via Import of Financial Plan Data
The budget file is loaded into the ACDOCU table using the Import Source File push button.
The Budget Entry on Cost Centers via Import of Financial Plan Data figure above also shows
the loading log and the loaded data from the perspective of the Financial Plan Data log app.
Figure 84: Posting of Actual Data - Error Message
The figure above shows the error message if the budget is exceeded by more than 10% when
posting actual costs. A booking is then not possible.
The amount of the excess is always determined "on the fly" and is therefore not saved on the
SAP HANA database.

Note:
The content of the message text can only be controlled within the framework of a
modification.
Figure 85: Posting of Actual Data - Warning Message
The above figure shows the warning message if the budget is exceeded by more than 5% but
less than 10% when posting actual costs.
Figure 86: Cost Center Budget Report 1/2
The Cost Center Budget Report app provides information about the budget, commitments,
actual costs, and the available budget.

Figure 87: Cost Center Budget Report 2/2
In the Cost Center Budget app, you can monitor costs and the budget and compare the
budget with the actual costs and commitments in budget-bearing cost centers.
Figure 88: Cost Center 20100 & 20100 Budget 2022: 10000 EUR
The figure above shows that the budget of cost center 20100 and 30100 in fiscal year 2022 is
EUR 10.000 each.
LESSON SUMMARY



Unit 2
Lesson 5
SAP S/4HANA Analytics
LESSON OBJECTIVES
SAP S/4HANA Analytics Architecture

You want to understand the reporting options for SAP S/4HANA Finance. You want to know
how you can leverage your existing infrastructure and see what other options are available.
You want to make the best choice for both your back-end and front-end reporting and
analytics tools so that you effectively report on the data posted to the system.
Figure 89: SAP S/4HANA – Real-Time Operational Reporting
With embedded analytics in SAP S/4HANA, everything is on the same technical stack and
uses the same user interface. This structure improves the total cost of ownership (TCO) and
helps the user to be more efficient. The embedded analytics are available inside the business
processes, making the processing more efficient. The simplified data model reduces the
redundancy of data and so more space is available to keep a longer data history. The
simplified data model reduces the number of tables, making it easier to create Virtual Data
Models.

Figure 90: SAP S/4HANA Analytics Architecture
SAP S/4HANA blends transactions and analytics allowing operational reporting on live
transactional data.
Figure 91: Reporting with the VDM (Virtual Data Model)
With SAP S/4HANA, this concept is supported by SAP Core Data Services (CDS views) for
real-time operational reporting. The content is represented as a Virtual Data Model (VDM),
which is based on the transactional and master data tables of SAP S/4HANA. CDS views are
developed, maintained, and extended in the ABAP layer of the SAP S/4HANA system. The
system generates SQL-Runtime-Views in SAP HANA to execute the data read and
transformation inside the SAP HANA Database Layer.

Lesson: SAP S/4HANA Analytics
Figure 92: Reporting Big Picture
The CDS views in the VDM are distinguished by complexity (for example, basic views and
composite views) or by usage (for example, private views and interface views). CDS views can
contain other CDS views. In this course, we focus on consumption views, which are used as a
basis for reporting. If you combine a CDS view with the analytical engine (using an
annotation), it is called CDS query.
Figure 93: Reporting Floorplans
In S/4HANA, we provide different analytical floorplans that describe how an SAP Fiori report
should look. Reports based on some floorplans can be defined using specific power user tools.
Reports based on other floorplans must be defined by developers in the SAP Design Studio
with ABAP in an Eclipse environment. Another possibility is to report using SAP Analytics
tools. You can use the Query browser to select the CDS queries on which you would like to
report.

The Different Data Consumption Tools
Figure 94: Reporting Consumption Views
With the standard delivery you can use SAP UI based reports and power user tools to
consume CDS Views and CDS Queries. SAP Analytical queries always require CDS queries to
consume.
Links to Videos about Analytics Tools
Table 1:
Use the YouTube links provided to check out the look and feel of the different reporting tools.
What Link
SAP BusinessObjects Design Studio Tutori- https://www.youtube.com/playlist?

als list=PLs5htBIwERYWFt-ixnVgx-
sUGvQpR9E8hI
SAP BusinessObjects Analysis 1.x, edition for https://www.youtube.com/playlist?

MS Office Tutorials list=PLs5htBIwERYXTVP--IvbjaTJF0enYv6kK
SAP BusinessObjects Web Intelligence 4.x https://www.youtube.com/playlist?

Tutorials list=PLs5htBIwERYUjN-
LyWJR2g2U2aSWPzJBou
SAP BusinessObjects Lumira 1.17 - 1.28 Tuto- https://www.youtube.com/playlist?

rials list=PLs5htBIwERYWqmHln-
bAB6gSQ3b39JzWLa
SAP Crystal Reports for SAP Business One https://www.youtube.com/playlist?

2011 / 2013 Tutorials list=PLs5htBIwER-
YULWPdq3xdVb6R68Up_kCFu

Lesson: SAP S/4HANA Analytics
LESSON SUMMARY


Unit 2
Learning Assessment
1. You can use SAP UI based reports and power user tools to consume CDS Views and CDS
Queries.
X True
X False
2. A user that was responsible for creating Cost Elements in the SAP ERP environment will
be able to create G/L accounts in SAP S/4HANA without changes to role authorizations.
X True
X False
3. In the new Manage Allocations app, assessment cycles are referred to as overhead
allocation cycles.
X True
X False
4. In SAP S/4HANA, the use of the Material Ledger is mandatory.

X True
X False
5. Each ledger assigned to a company code can have a different posting period variant.
X True
X False

Unit 2
1. You can use SAP UI based reports and power user tools to consume CDS Views and CDS
Queries.
X True
X False
Correct. With the standard delivery you can use SAP UI based reports and power user
tools to consume CDS Views and CDS Queries.
2. A user that was responsible for creating Cost Elements in the SAP ERP environment will
be able to create G/L accounts in SAP S/4HANA without changes to role authorizations.
X True
X False
Correct. The merge of cost elements and G/L accounts requires adjustments to
authorization for creating cost elements.
3. In the new Manage Allocations app, assessment cycles are referred to as overhead
allocation cycles.
X True
X False
Correct. Overhead allocation cycles use secondary cost accounts to allocate costs.
4. In SAP S/4HANA, the use of the Material Ledger is mandatory.

X True
X False
Correct. Since SAP S/4HANA 1511 suite, the use of the Material Ledger is mandatory.

5. Each ledger assigned to a company code can have a different posting period variant.
X True
X False
Correct. Each ledger assigned to a company code can have a different posting period
variant.


UNIT 3 Integrated Business Processes
Lesson 1
Understanding CO integration with Procurement 103
Lesson 2
Understanding CO Integration with Production 109
Lesson 3
Understanding CO integration with Sales 121
Lesson 4
Understanding Parallel Valuation and Transfer Pricing 139
Lesson 5
Understanding Attributed Profitability Segments 147
Lesson 6
Planning with SAP Analytics Cloud 155
UNIT OBJECTIVES
● Perform the Procurement Process

● Create Cost Estimates
● Create Production Orders, Goods Issues, and Confirmations
● Perform Period-end closing, including variance calculation
● Explain Margin Analysis and Cost Based CO-PA
● Understand Predictive Accounting
● Analyze the Sales Process Integration
● Explain Transfer Pricing
● Understand Attributed Profitability Segments

Unit 3: Integrated Business Processes
● Plan with SAP Analytics Cloud

Unit 3
Lesson 1
Understanding CO integration with
Procurement
LESSON OBJECTIVES
Processing of Purchase to Pay
Figure 95: SAP S/4HANA Sourcing and Procurement: Overview
The process of procurement consists of several subprocesses which are reflected in different
apps of SAP S/4HANA Procurement. The apps are assigned to different roles, which you can
assign to your employees to meet their tasks.
Examples of the roles in assigned apps include the following:
● Role: Program Manager:
- Supplier

● Role: Strategic Buyer:

- Contract Expiry
- Contract Leakage
- Evaluation Responses
- Invoice Price Variance
- Non Managed Spend
- Off-contract Spend
- Overdue Purchase Order Items
- Purchase Order Average Delivery Time
- Purchase Order Value
- Purchasing Category
- Purchasing Group Analysis
- Purchasing Spend
- Spend Variance
- Supplier Evaluation
- Supplier Evaluation Price Variance
- Supplier Evaluation Quantity Variance
- Supplier Evaluation Response
- Supplier Evaluation Time Variance
- Unused Contracts

Lesson: Understanding CO integration with Procurement
Figure 96: SAP S/4HANA Supply Chain: Inventory
The key innovations and highlights include the following:

● Leverage simplified data model of inventory management for real-time, high-volume
processing.
● Easy to consume data model supporting flexible analytics.
● Real-time alerts based on current stock requirements situation.
● Decrease stock buffers due to better transparency and insight.
● Improve percentage of on-time delivery.
● Elimination of locking, increased throughput for standard price using material ledger
valuation, streamlining multi-currency usage, and multiple valuation methods.
● Post of finest granularity, such as handling unit, lot size 1, or sensor data.
● 40-digit material number extension.
● Leverage just-in-time scenarios for outbound.
Preparing Ledgers for Valuation and Commitments

Commitments to ACDOCA
If you assign purchase documents to a cost object, you can see the value and quantity on the
cost object. Commitments are not cost, but budget consumptions that are expected to
become cost later. The commitments are still written to the old commitment tables, but can
be posted additionally to ACDOCA. Since commitments are not real costs, they are separated
by assigning them to a ledger, which is called the Extension Ledger with type P Line items with
technical numbers / no deletion possible. This needs to be set up in Customizing.

Figure 97: Extension Ledger with Type “P Line items with technical numbers / no deletion possible”
An extension ledger must be assigned to an underlying ledger. In the figure, Extension Ledger
with Type “P Line items with technical numbers / no deletion possible”, the ledger ZP is used
to post commitments.
Figure 98: Activate Processing
To achieve this, you need to activate the ledger for commitment posting. You find the table in
the IMG → Financial Accounting → Predictive Accounting.

Lesson: Understanding CO integration with Procurement
Document Splitting
Figure 99: Document Entry View for Accounting Document
When posting to the general ledger in SAP S/4HANA, you can use the Document Splitting
functionality to split document line items to different characteristics proportionally to these
characteristics.
As an example, in the figure, Document Entry View for Accounting Document, you see a
document entry with a cost assigned to two different cost centers, and through this
assignment to two different segments. If you want to set up a balance sheet by segment, the
liability is not shown apportioned to the segment.
Note:
You can test document splitting with a PO / good receipt / invoice receipt. Create
the PO with two line items for cost center consumption with the following two cost
centers:
● Cost center: 1110 (profit center YB600 | segment 1000_C)
● T-CCA## (profit center T-PCA## | segment 1000_A)
When you display the accounting document for the invoice, go to More → General
Ledger View.

Figure 100: Document Split in the General Ledger View
Document splitting performs a split of the liability to the segments shown in the “General
Ledger View". Now the document is not only balanced in total, but also per segment.
Document splitting is only available if you set it up in a new installation of SAP S/4HANA or if
you migrate from an SAP ERP with new G/L and splitting is already configured. If you migrate
from an SAP ERP without document splitting (for example, one with classic G/L), document
splitting is not provided.
Note:
An SAP service can enable document splitting for customers migrating from
systems without document splitting.
LESSON SUMMARY

Unit 3
Lesson 2
Understanding CO Integration with Production
LESSON OBJECTIVES
Material Cost Estimates

Product cost planning assists employees in operational decision making for manufactured
products by providing the following detailed information:
● Cost of goods manufactured, and the cost of goods sold
● Calculation of the break-even price for the product
● Comparison of production cost in large versus small lot sizes
● Production cost breakdown and comparison, for example, material costs and wages
● Optimization of the production process
● Production cost by organizational unit
● Manufacturing cost by plant
● Effect of primary expenses on production costs
In the SAP S/4HANA application, materials can be valuated with a standard price, which can
be set by a standard cost estimate. Costing runs can be used to cost products en-masse or
the Create Material Cost Estimate app can be used to cost an individual material.

Figure 101: Create a Material Cost Estimate
The default dates come from the Costing Variant → Data Control.
Note:
The costing structure has an icon called Materials Only / All Items to see activity
values.
Figure 102: Cost Estimate Tabs
All errors can be accessed from the ribbon. Material specific errors can be accessed via the
traffic light on the costing data tab.

Lesson: Understanding CO Integration with Production
Note:
Obsolete materials will cause error messages. They are not allowed in the BOMs.
Figure 103: Cost Estimate Explanation Facilities
Figure 104: Cost Estimate - More Menu

Figure 105: Cost Estimate - Itemization Versus Cost Component Views
Production Orders, Goods Issues, and Confirmations
Figure 106: SAP S/4HANA Supply Chain: Production Planning
In SAP S/4HANA Logistics, many advantages are implemented with a focus on real-time
analysis based on a simplified data model.

Figure 107: SAP S/4HANA Manufacturing
In manufacturing, finite capacity scheduling is an approach to understanding how much work

can be produced in a certain time period, taking limitations on different resources into
consideration. The goal of finite capacity scheduling is to ensure that work proceeds at an
even and efficient pace throughout the plant. Finite scheduling tools contrast with infinite
capacity scheduling tools. Infinite scheduling tools, which are simpler, cannot account for
limitations on the system that occur in real time.
Figure 108: Sources of Cost in the Production Process

The production process (to stock) starts with the creation of the production order. With the
production order you can carry out several functionalities like cost estimate, material
availability check, and scheduling. After the release of the order, various costs will be incurred
by consuming goods and services and internal activities. After finishing the production, you
can deliver the goods to stock (or sales order stock or project stock), which will credit the
production order with the value of the delivered products according to the price in stock.
Figure 109: Variance Categories in Cost Object Controlling
When the costs of producing materials are valuated based on standard prices, production
variances can occur on production orders where there are differences between the actual
costs (debit of the order) and the target costs (credit of the order).
These production variances are calculated in Product Cost Controlling (CO-PC) and are split
into different variance categories. Depending on the reason for the differences, the system
calculates, for example, price variances, quantity variances, lot-size variances, and scrap
variances.
Figure 110: New Variance Postings in SAP Accounting Powered by SAP HANA
To provide more details in the income statement (FI) and in account based Profitability
Analysis (CO-PA), a refinement of the posting mechanism for variances is required to reflect
the different variance categories on different G/L accounts and to distinguish the reasons for
the production variances.

Figure 111: Customizing Settings
Create a splitting scheme for your controlling area and your chart of account using the new
transaction Define Accounts for Splitting Price Variances.
Enter a cost element, cost element interval, or cost element group, or a variance category,
and assign the newly created G/L accounts where you want to reflect these variances.
Multiple cost elements or variance categories can be reflected at the same G/L account.
Select the Default checkbox for one of the entries. Unassigned cost elements or variance
categories are automatically posted to this default G/L account.
Real-Time Account Based Profitability in Simple Finance
● The Universal Journal as a single source of truth in SAP Financials provides profitability
attributes for every P&L line item.
● The Operating Concern generation appends the CO-PA characteristics to the Universal
Journal.
● Profitability attributes are derived online.
● Profitability attributes can be enriched by further processes such as settlement or
allocations.
● COGS split and Price Difference Split are possible.
All of this means that you have Reconciled Profitability Reporting at any time.

Period-End Closing, Including Variance Calculation
Figure 112: New Period Close Transactions in SAP S/4HANA
The figure, New Period Close Transactions in SAP S/4HANA, shows the new programs that
replace, or can be used in parallel with, the old period close programs. The new transactions
are identifiable by the letter H (for HANA) at the end.
Figure 113: Period Close Transactions
The new simplified logic results in performance improvements between 10% and 60%
(depending on volumes and configuration).
Results Analysis for Sales Orders (Transaction: KKAKH)
● As a cost accountant dealing with the need to account for long-term contracts in the
balance sheet, you need to run results analysis to prepare the appropriate postings for
each accounting period. Depending on local legislation and sometimes corporate

guidelines, the degree of progress towards completion is measured based either on the
revenue or the incurred costs.
● Severe performance issues can occur due to the volume of sales order items to be handled
in each period.
In the first release, KKAKH supports two commonly used methods: 01 revenue-based RA
and 03 cost-based RA (out of 17 methods).
● The following are not supported:
- Some expert methods
- Customer enhancements
- Other 15 methods (other than 01 and 03 methods)
- Multiple result analysis versions
See SAP Note 1939621 for further details.
WIP Calculation (Transaction: KKAOH)
● At period-end close, the production controller calculates the value of the work in process
for the unfinished products. The number of production orders to be processed can result
in long-running jobs.
KKAOH values production orders only, at actual cost for the selected plant with defined
legal valuation for a single result analysis version.
● The following are not supported:
- Customer enhancements
- WIP calculation for product cost collectors
- Multiple result analysis versions
See SAP Note 1939621 for further details.

Figure 114: WIP Calculation: UI Differences between KKAO and KKAOH
The figure, WIP Calculation: UI Differences between KKAO and KKAOH, shows the WIP
Calculation restrictions.
The With Product Cost Collectors, With Process Orders, and All RA Versions radio buttons are
suppressed.
Collective Processing is only valuated at actual cost, with Production Order for selected plant
by single version.
You can only choose With Production Orders and a single version in the screen.
Business Scope: Variance Calculation for Production Orders (Transaction: KKS1H)
● Cumulative variance calculation compares the target costs with the cumulative control
costs.
- The target costs are calculated by adjusting the standard costs for the actual quantity
delivered.
- The control costs are calculated by subtracting the work in process and the scrap
variances from the actual costs.
● Currently product cost collectors, production orders, and process orders are supported,
but only target version 0 is supported.
Refer to SAP Note 2027639 for details of further limitations.

Variance calculation for Cost Centers provides you with detailed cost information at the
activity level.
Variance Calculation Function
● Shows the variance between target costs and control costs (the control costs can be the
net actual costs, for example).
● Determines the difference between the actual costs debited to the object and the credit
from other controlling objects (total variance).

● Shows how the cost is split at the activity level.

● Categorizes the variance into the different variance category.
The system updates the variances by object for each cost element, or for each cost element
and origin.
Costs that arise from processing an order, or project (for example, costs for material,
personnel or external services) are transferred to the settlement receiver specified in the
settlement rule in the master record of the object.
Both the selection statements for order and project settlement and for the generation of
project settlement rules have been reworked to improve performance. With SAP Simple
Finance, a mass settlement run can be executed in the foreground, where you used to only be
able to perform background processing.
Note that, to use the new transactions (CO88H, VA88H, KO8GH, CJ8GH), you will need to create
new selection variants that offer less selection options than the original selection variants. If
the new variants do not meet your requirements, then you can of course continue to use the
existing non-optimized transaction.
LESSON SUMMARY


Unit 3
Lesson 3
Understanding CO integration with Sales
LESSON OBJECTIVES
Margin Analysis and Cost Based CO-PA
Figure 115: Types of Profitability Analysis
● The business purpose of Profitability Analysis (CO-PA) is to provide the company with
profitability-oriented information on the performance of its market segments or sales
channels. This information is used to support corporate planning and decision-making,
especially in the areas of sales and marketing.
● CO-PA allows you to define market segments and performance figures, with maximum
flexibility in market evaluation.
● The definition of a market is configured in the system by selecting the characteristics that
are the subjects of analyses.

● Performance figures may be based either on profit and loss accounts (Margin-Based CO-
PA) or freely-defined value fields (Cost-Based CO-PA).
Figure 116: Profitability Analysis with SAP S/4HANA
Figure 117: HANA Acceleration of CO-PA – Report Execution
● In both types of CO-PA, you will see a great speed improvement in processing when
comparing to a non-HANA DB system.

Lesson: Understanding CO integration with Sales
Figure 118: Reporting in Profitability Accounting
● Profitability Analysis reports the result of market segments (not to be mixed up with FI-
segments) using the cost of sales method. To provide more information, a multi-level
cross margin report is used showing the cost of goods sold (COGS) and variances of
production split into several values (accounts or value fields) according to the
customizing.
Preparing Ledgers for Predictive Accounting

Explanation of Predictive Accounting
One development focus is the forecast of future revenues, cost, and maybe the set up of a
forecast P&L statement, which is called predictive accounting. So with this concept in mind,
look at enhancements to margin analysis capabilities.
Figure 119: Predictive Accounting
The goal is to utilize the company’s financial resources to optimally increase profitability and
growth, while avoiding putting the company at serious financial risk.

Figure 120: Different Types of Predictive Logic Adding Intelligence to Finance Applications
Top-down prediction uses a time series algorithm on historic data to predict future values
considering trend, cycles, and fluctuation.
Bottom-up prediction is performed on the basis of predicted documents being part of an
individual business process and its document flow.
Figure 121: Predictive Accounting – Current and Future Accounting Scope
In the figure, Predictive Accounting – Current and Future Accounting Scope, you can see an
illustration of the movement towards a Predictive Close, which includes useful values for
management reports that are not yet relevant on the basis of GAAP reporting.

Figure 122: Creating Forward Looking Margin Insights Using Predictive Accounting
Predictive accounting includes insights from expected revenue and expected expenditures.
● Accounting for incoming sales orders:
- New concept for handling of predictive data
- Financial line item details for incoming orders reporting
- Review incoming sales order report
- Provides a comprehensive overview of all orders and their values for the time period
regardless of billing status
● First commitment scenarios:
- Are stored in the same basic structure as in the Universal Journal
- Include cost assignments to work breakdown structure (WBS) element, order, cost
center, and so on, but also link to the supplier
- Can be shown for derived characteristics, such as profit center and functional area
Figure 123: Origin of Predictive and Combined KPIs

With the SAP S/4HANA architecture, it is always clear if you are looking at actual (realized)
values or values including predictions.
Predictive Accounting Limitations
Predictive Accounting only processes the following SD document categories:
● C – Order
● H – Return
● I – Order without Charge
● K – Credit Memo Request
● L – Debit Memo Request
Due to missing goods issues, predicted costs are missing in the following scenarios:
● Third-party direct shipment
● Intercompany sales (within selling company)
Predictive Accounting doesn't cover Service Sales scenarios.

There are no predictive journal entries for statistical sales conditions.
Predictive accounting does not simulate deliveries. Within goods issue simulation, the system
always passes on order data directly. Within customer invoice simulation, the system always
assumes order-related billing.
Final clearing for currencies other than transaction currency is through a batch job.
Offsetting items due to document split in the case of partial billing are only reduced during the
'final clearing' batch job.
Customizing Ledgers for Incoming Sales Orders

To predict future sales, revenues, and business development, it is important to be able to
analyze the value of the already received sales orders according to the market segments. This
was not yet available in measure-based CO-PA.
Figure 124: Defining Extension Ledgers with Type “P Line items with technical numbers / no deletion possible”
Values and Quantities of the incoming sales orders are stored in table ACDOCA using
Extension Ledgers with type P Line items with technical numbers / no deletion possible.

Figure 125: Assign and Activate Extension Ledgers for Incoming Sales Orders Processing
Activate the extension ledgers for incoming sales orders. The values will be posted to all
assigned Extension Ledgers. In a third step, in Customizing, use the option Activate Predictive
Accounting for Sales Processes to activate the functionality. You find this entry in the path
IMG → Financial Accounting → Predictive Accounting → Activate Predictive Accounting for
Sales Order Item Categories.
Controlling → Profitability Analysis → Flows of Actual Values → Transfer of Incoming Sales
Orders → Activate Predictive Accounting.
Figure 126: Determine Sales Order Item Categories to be Recognized
In the last step, the sales order item categories, which qualify for predictive accounting, must
be defined. (Use transaction code SM30 and table FINSV_PRED_FKREL).
Explaining Statistical Conditions

To predict future business development, it is important to be able to recognize probable costs
of the future already in forecasts of today. You can implement these costs or sales deductions
as real or statistical conditions in the pricing procedure of sales orders. While all conditions

can be transferred to costing-based CO-PA, the transfer of statistical conditions to measure-

based CO-PA was not possible in ECC but is possible in S/4HANA..
Figure 127: Statistical Conditions: Integrated with No Reconciliation Effort
Figure 128: Example for a Statistical Condition

Customizing Ledgers for Statistical Conditions

You can implement costs or sales deductions as conditions in the pricing procedure of sales
orders. If you do not want them to be price relevant, mark them as statistical conditions.
These statistical conditions can be transferred to costing-based CO-PA. To transfer them to
margin-based CO-PA also, you must mark them as relevant for account-determination and
you need to add an account key.
Figure 129: Defining and Activating Extension Ledgers with Type “P Line items with technical numbers / no
deletion possible”
You may choose to use a separate extension ledger for the posting of statistical conditions.
However, you can also use the same extension ledger as for incoming sales orders.

Figure 130: Assign Statistical Condition to the Pricing Procedure in SD
Note:
In the Assign Statistical Condition to the Pricing Procedure in SD figure above the
account key can be found in table 005 - Acct Key.
A statistical condition type is entered in a pricing procedure. It is marked as statistical, but

relevant for accounting. Therefore an account determination key is assigned. From the SD
revenue account determination, the FI accounts are found.

Figure 131: List of Documents in Accounting
Analysis of the Sales Process Integration
Figure 132: SAP S/4HANA Sales: Overview
The apps in Sales are assigned to different roles. Examples of the roles assigned include the
following:

● Role: Billing Clerk

- Schedule Billing Creation
- Schedule Billing Output
- Schedule Billing Release
● Role: Internal Sales Representative
- Sales Order Fulfillment Monitor
Status tables VBUK and VBUP have been eliminated. The status fields have been moved to
the corresponding header and item tables; VBAK and VBAP for sales documents, LIKP and
LIPS for deliveries, and VBRK for billing documents.
The Document Flow table VBFA is simplified.
In the field length extension of the SD document category, data element VBTYP (Char1) has
been replaced by data element VBTYPL (Char4), and the field VBTYP_EXT (Char4) has been
eliminated.
Redundancies have been eliminated in the Document Index tables VAKPA , VAPMA, VLKPA,
VLPMA, VRKPA, and VRPMA.
Redundancies have also been eliminated in the Rebate Index table VBOX: see simplification
item SI6: SD_REBATES – SD Rebate Optimization.
Figure 133: Value Flow in the Sales – Process to CO-PA
The delivery posts cost of goods sold (COGS) to FI and measure-based CO-PA. There is no
posting to costing-based CO-PA, because, in theory, there is no COGS without revenue.
The billing posts revenues to measure-based CO-PA and costing-based CO-PA. This is also
the time to post the COGS to costing-based CO-PA.

Figure 134: Value Flow of Billing Document to Costing-Based CO-PA
The COGS is posted in FI with one value. If you sell an S-price indicated material from stock,
this value is derived from the S-price, which should be the result of a material costing. In this
case, you can choose to post the COGS value split according to the cost component split to
CO-PA additionally, to provide more details of the total amount there.
Figure 135: Splitting COGS based on Standard Cost Estimates
To provide more details in the income statement, a refinement of the posting mechanism for
COGS is required to reflect the standard cost component split on the G/L account, and to
distinguish fixed and variable values. This is similar to costing-based CO-PA, where you assign
the cost components to value fields.
Note:
In the standard delivery of the SAP S/4HANA 1909 system, the maximum number
of cost components was increased from 40 to 120. You can look this up by using
transaction SE11 to display the structure of table KEPH.

Customizing the COGS- split for measure-based CO-PA

To get the COGS split along the cost components of your cost estimate, you must set up
some customizing.
Figure 136: Setting up a Cost Splitting Profile
Note:
To access the configuration screen that is displayed in the Customizing the COGS-
split for measure-based CO-PA figure above, use the menu path as provided in the
procedure below entitled: Configure the Price Difference and COGS Splitting.
The indicator ACC Based Split determines the processes for which COGS is split. If you select
this checkbox, COGS is always split when the source account is posted. Otherwise, COGS is
only split for goods movements based on sales orders.

Figure 137: Setting Up Target Accounts
The customizing steps are as follows:
1. Create new G/L accounts on which you want to reflect the single cost components of the
COGS posting.
2. Select your chart of accounts, and enter every COGS account that should be refined.
3. Select the cost component structure and the cost component, and assign it to a
refinement G/L account. One or more cost components can be assigned to one
refinement account.
4. Tag one refinement account as the default account (flag Default). Unassigned cost
components are automatically posted to that default account.
5. Assign your splitting scheme to the relevant company code with a valid from date.
Splitting COGS Based on Actual Costing

If you use actual costing, you can use the actual cost component split in measure-based CO-
PA by posting delta values to table ACDOCA.

Figure 138: Splitting COGS based on Actual Costing
The differences between the COGS split based on the standard cost estimate and the COGS
split based on the actual costing are posted.
Figure 139: Setting Up a COGS Split Based on Actual Costing
Strategy Type:

● Released Cost Estimates: With this strategy type, the system selects the released cost
estimates that are valid at the point in time when COGS is split. If no valid released cost
estimate is found, COGS is not split.
● Upcoming Released Cost Estimate: With this strategy type, if no valid released cost
estimate is available at the point in time when COGS is split, the system uses the next
available released cost estimate.
You can indicate which cost component split you use as COGS. In this case, you mark the
Split Revalued Consumption with Actual Cost Component Split option. This option allows you
to split the cost of goods sold based on the actual cost component split instead of the cost
component split for the standard cost estimate. If you do not select this option, the split is
based on the standard cost estimate.
Configure the Price Difference and COGS Splitting
1. In the SAP GUI, go to the Implementation Guide.
2. Analyze the customizing needed to settle the manufacturing variance categories to

Margin-Based Profitability Analysis.
a) Go to Financial Accounting → General Ledger Accounting → Periodic Processing
→ Integration → Materials Management → Define Accounts for Splitting Price
Differences.
b) Select the ZYA000 line item.
c) Double-click Detailed Price Difference Accounts. Each variance category has an

assigned target account.
0010 Scrap TCOST SCRP 52701000
0020 Input Price Variance TCOST PRIV 52702000
0030 Mixes Price Variance TCOST MXPV 52703000
0040 Quantity Variance Material TCOST QTYV 52704000
0060 Recource Usage Variance TCOST RSUV 52706000
0070 Remaining Input Variance TCOST INPV 52707000
0080 Lot Size Variance TCOST LSFV 52708000
0090 Output Price Variance TCOST OPPV 52709000
0100 Remaining Output Variance TCOST REMV 52710000
Note:
You need to select the Default checkbox for one of the entries. If no target
account is specified for a cost element/variance category, the system
automatically posts these amounts to the default G/L account.
d) Double-click Company Code Settings. You can see the assignment of the ZYA000
profile to company code 1010.
1010 01.01.2016 ZYA000

Note:
During the posting of the settlement documents, the system checks whether
there is a splitting scheme assigned to the company code for the posting date
of the document, and whether there are entries for transaction key PRD from
account determination. If both requirements are fulfilled, the system splits the
production variances accordingly.
3. Analyze the customizing needed to split cost of goods sold in Margin-Based Profitability
Analysis.
a) Go to Financial Accounting → General Ledger Accounting → Periodic Processing
→ Integration → Materials Management → Define Accounts for Splitting the Cost of
Goods Sold.
b) Select the 0YA000 line item.
c) Double-click Target Accounts → Continue. Each cost component has an assigned

target account.
Y1 101 Direct Material 50301000 COGS Direct Material
Y1 102 Credits (Co/By-Pr)Cr 50308000 COGS Credit Co/By-Pr
Y1 103 Third Party 50302000 COGS Third Party
Y1 109 Material Overhead 50303000 COGS Material Overhd
Y1 201 Personnel time 50304000 COGS Personnel Time
Y1 202 Machine time 50305000 COGS Machine Time
Y1 203 Set-Up time 50306000 COGS Setup Time
Y1 209 Production Overhead 50307000 COGS Productn Overhd
Y1 301 Miscellenaeous 50307800 COGS Miscellaneous
Y1 305 AdminSales overhead 50307500 COGS Sales Overhead
4. Return to the Display IMG screen.
LESSON SUMMARY

Unit 3
Lesson 4
Understanding Parallel Valuation and Transfer
Pricing
LESSON OBJECTIVES
Transfer Pricing
Figure 140: Transfer Prices – Parallel Valuations Based on Different Views
Many organizations are required to report financial results based on multiple accounting
regulations.
European-listed companies must report their consolidated financial results according to
International Financial Reporting Standards (IFRS).
Canadian, Indian, and Korean listed companies will also be required to report consolidated
financial results based on IFRS (conversion dates of 2011), with the United States not
far behind (2014).
Companies also listed in the United States or belonging to a US group of companies are
required to report according to US Generally Accepted Accounting Principles (US GAAP).

The result is quite different depending on your view and your company.
If you analyze the entire concern, you do not focus on single companies in your concern but
on the concern in total.
If you analyze single companies, the focus is on the result of a legal entity.
If you are responsible for a profit center, you focus on the result of your profit center like it
would be a separate company.
Transfer Price Solution in S/4HANA offers the following:
● Multinational groups need to report profitability for the group in total and for the individual
units based on the operational flows.
● Up to three parallel valuation methods for legal, group, and profit center valuation provide
the following different perspectives on the value chain within a group:
- Legal perspective looks at the business transactions from the point of view of the
affiliated companies including markups.
- Profit center valuation treats profit centers as if they were independent companies
using, for example, negotiated prices.
- Group valuation looks at the whole group eliminating markups.
Figure 141: Architecture for Parallel Transfer Price Valuations
SAP provides the following two options:

● Parallel valuations updated in parallel single-valuation ledgers
- Use separate ledger for each valuation

Lesson: Understanding Parallel Valuation and Transfer Pricing
- Transparent separation of postings and reporting of financial results based on the

various regulations
● Parallel valuations updated in a multi-valuation ledger
- Use separate amount columns in the same ledger
- Reduce memory footprint
- Reduce effort and time for closing activities
Figure 142: Configuration of Universal Journal for Transfer Prices
For an SAP S/4HANA system with transfer pricing you configure the following:
● Currency and Valuation Profile
● Activation of Transfer Pricing for the relevant controlling area
Figure 143: Currency Types for Transfer Price Valuations
There are specific rules for the currency settings of the Universal Journal as follows:

● Each currency type is assigned to a valuation view

● Currency types in group or PCTR valuation have an assignment to the corresponding legal
currency type
● The last digit does not represent the valuation (especially not for currency types in the
customer namespace)
Figure 144: Multiple Valuation Ledger Versus Single Valuation Ledger
Local Currency:
● Currency type 10 in multiple valuation ledgers or in ledger with legal valuation
● Currency type 11 or 12 in ledgers with group or profit centre valuation
● ACDOCA fieldname HSL
Global Currency:
● Currency type of controlling area in legal valuation in multiple valuation ledgers
● Currency type of controlling area in valuation of the ledger in single valuation ledgers
● ACDOCA fieldname KSL
Freely Defined Currencies 1 - 8:

● Any Currency type can be configured in multiple valuation ledgers
● Currency type with valuation of the ledger in single valuation ledgers
● ACDOCA fieldnames OSL, VSL, BSL, CSL, DSL, ESL, FSL, GSL
Only currency types in profit center valuation can be used in this ledger.
Local and global currency are also in profit center valuation.

Figure 145: Configuration Details – Assign CO Versions to Ledgers
How to Provide Compatibility to Classic CO World

In CO, the transfer price solution had been based on additional CO actual versions. In
universal journal the data model had been simplified and harmonized. The ledger approach is
used in universal journal for GL and all sub ledgers. So for compatibility reasons a mapping of
CO versions to ledgers is required.
All new functionality is built on the new data model. However, several historical CO
transactions still expect data in the old version format. The CO compatibility views provide the
CO data according to the old version format (calculated on the fly). So for compatibility
reasons, a mapping of CO versions to ledgers is required.
You determine which currency types are stored in which amount fields in table ACDOCA. All
currency types that CO requires (10, 11, 12, 30, 31, 32) must be entered for all versions so that
during postings they are updated and stored in the universal journal table ACDOCA in ledger
0L.
According to the Currency and Valuation Profile, only the currency types 10, 31, and 32 are
needed. However, currency types 11 and 12 must be entered as Freely Defined Currencies in
the ledger which is used by CO to read data, since these are required to complete the data in
the compatibility views for the CO tables COEP, COSP and others.
In this example, read access to CO data will read the data from ledger 0L only for versions
000 (legal valuation) and version GRP (Group Valuation). The data for the other version PRC
(PrCtr Valuation) will be read from ledger L2.
The second ledger L2 has valuation view = PrCtr Valuation in table FINSC_LEDGER. The
currency types that CO requires for version PRC must be stored in table ACDOCA in ledger
L2.
For ledger 0L, all currency types that are required by CO for versions 0 and GRP, that is,
valuation view 0 and 1 (but not 2) need to be entered in the company code settings.
For ledger L2, the currency types that are required by CO for version PRC, that is, for
valuation view 2 need to be entered in the company code settings.

Figure 146: Migration of Historic Data from ERP with Active Transfer Prices
Figure 147: Splitting of COGS in Transfer Price Environment
Cost of goods sold split in parallel valuation views as follows:

● Trigger for COGS split is delivery document with respect to sales order.
● Posting of goods delivery has to support the splitting of the COGS in local, group and/or
profit center valuation. The basis for the COGS splitting shall be the related sales order
item cost estimate or released material cost estimate of the corresponding valuation view.
● If no cost estimate exists for the related valuation view, then no COGS split will be created
for the valuation view.

Figure 148: Split Scheme Assignment
The COGS scheme can be explicitly assigned to a specific valuation view. When no
assignment of a valuation view is made, it means the COGS split scheme is relevant for all
available valuation views of this company.
In planning, multilevel cost estimates for finished materials take place with parallel valuations
that include fixed and variable costs.
On the actual side, COGS is split during goods delivery with parallel valuations that include fix
and variable costs (using the same accounts).
LESSON SUMMARY


Unit 3
Lesson 5
Understanding Attributed Profitability
Segments
LESSON OBJECTIVES
Attributed Profitability Segments
Figure 149: Profitability Characteristics in S/4HANA: General Facts
1. Profitability Characteristics in S/4HANA.
2. Business Use Cases for Attributed Profitability Segments.
3. Attributed Profitability Segment.
4. Activating Attributed Profitability Segment.
5. Reporting for Attributed Profitability Segments.
6. Realignment of Profitability Characteristics in S/4HANA.

7. Business Requirements for Realignment of Profitability Characteristics.
8. Realignment in the Universal Journal Concept.
9. Profitability Characteristics Applicable for Realignment.
10. Realignment Approach in a Nutshell.
11. Profitability characteristics are an integral part of the Universal Journal.
12. Up to 60 profitability characteristics (including fixed characteristics) can be defined in

operating concern by selecting from pre-defined and delivered characteristics from SAP
or creating your own customer fields.
13. Profitability characteristics are generated into the Universal Journal during the system set
up or migration.
14. The Universal Journal can be extended with customer fields through different methods.
Depending on the requirements, you can extend the Standard Coding Block or the
Operating Concern.
Figure 150: Examples for Attributed Profitability Segments
Profitability characteristics are derived immediately at the point in time of each "primary"
document.
Example 1: Analyze your travel expenses by customer and by product as they occur – without
waiting for the closing process and settlements to happen.
Example 2: Drilldown on your WIP account in your balance sheet and find out more about
related projects and products.

Lesson: Understanding Attributed Profitability Segments
Figure 151: Real-Time Information Without the Need of Settlement
Market segment provided for every posting (assignment of sales order item is a pre-
requisite).
WIP drilldown by project and market segment.
No CO-settlement required anymore.
No reconciliation between different tables.
Figure 152: Configuration of Attributed Profitability Segments
Activate in IMG: Controlling → Profitability Analysis → Master Data → Activate Derivation for
Items without Profitability Segment.
First select the account assignment, for which derivation logic will be activated. This selection
can be specified by individual types.
Depending on the account assignment, different derivation steps are processed in a defined
sequence – as soon as one condition matches, the program stops and derives profitability
characteristics accordingly.
Field Object Type [ACCASTY] defines the real account assignment in an income statement
item, all other account assignments are attributed.

Figure 153: Derivation Steps of Attributed Profitability Segments
Possible Usage Scenarios of Activating Attributed Profitability Segments.

Questions to be considered when activating Attributed Profitability Segments:
● Is it sufficient to have profitability characteristics only for reporting purposes?
● Is sufficient information available to derive Profitability characteristics?
● For example, can profitability characteristics be derived from maintained settlement rule?
Is the settlement rule simple (not multiple rules)? Can profitability characteristics be
derived based on assigned sales order item?
● Is it possible to maintain a high-level assignment of CO-Objects to customer/product/
sales dimensions in CO-PA derivation tool?
● Do you want to analyze profitability characteristics on Balance sheet accounts*?

Figure 154: Reporting Real vs. Attributed Profitability Segment (1)
The attributed account assignment is derived based on the real account assignment and
other document information.
Figure 155: Reporting Real vs. Attributed Profitability Segment (2)
1. Posting of costs to IO with automatically derived profitability characteristics. Real account

assignment is Internal Order (Object Type = OR). Other account assignments are attributed.
2a. Settlement of Internal Order to Profitability Segment during month end, if required due to
complex settlement rules. Real account assignment is Internal Order (1st posting line item).
2b. Settlement of Internal Order to Profitability Segment with real account assignment to
Profitability Segment (2nd posting line item).

Figure 156: Realignment in the Universal Journal Concept: General Facts
No separation of FI and CO anymore: Every Controlling document including Profitability

characteristics is also an Accounting document.
Changes in the Journal Entries have to always follow the guidelines of standard accounting
principles.
Therefore, realignment in Universal Journal can only be processed for non-GL-relevant
information (for example, Profit Center, Functional Area, Account, Values and so on will never
be changed by realignment functionality).
Changeable CO-PA characteristics are pre-defined and selection cannot be changed by users.
1. Reflect organizational changes in your product, customer, or sales structure. For example,
customer "4711" is originally assigned to sales region "North" but reassigned to sales region
"West".
2. Correct inconsistencies, if organizational information was incorrectly assigned at the time
of the original posting. For example, in the customer master data, a wrong customer group
was entered for customer "0815". During posting of a billing document, the wrong customer
group is derived from the customer master and written to profitability analysis.
3. Enrich profitability data by information not yet available at the time of the original posting.
For example, activating attributed profitability segment is a pre-requisite for this use case.
When posting time confirmation to a WBS element to which no sales order item is assigned,
only a sparse attributed profitability segment is determined in the Journal Entry. Having
assigned the sales order item, the posted data shall be enriched with customer and product
information with realignment.

Figure 157: Profitability Characteristics Applicable for Realignment
Figure 158: Selection Conditions for Realignment
Realignment Functionality
● One transaction (KEND) to process realignment in Profitability Analysis in the Universal
Journal – and if activated also in costing-based CO-PA.
● Realignment is processed at the same time in both solutions in order to keep information
in sync.

● Realigned characteristics are updated in Universal Journal (ACDOCA) and Segment table
(CE4xxxx). Therefore, there are no new line items through realignment.
● Original information from line item table ACDOCA ("as posted" view) is stored in a
dedicated table.
Figure 159: Conversion Rules for Realignment
LESSON SUMMARY

Unit 3
Lesson 6
Planning with SAP Analytics Cloud
LESSON OBJECTIVES
Planning Options with SAC
Figure 160: 25 Years History of Financial Planning @ SAP
In the past, decisions were easier: the data situation was relatively clear, the most important
key figures in the head. Decisions could therefore often be made out of the stomach. In times
of rapidly growing data volume, the resulting insights are becoming increasingly important. By
identifying trends and patterns in time, you can better plan, manage, and stay ahead of the
competition.
SAP Analytics Cloud is a software-as-a-service solution. SAC brings together business
intelligence (BI), advanced analytics, predictive analytics, and enterprise planning. It can
connect data from internal and external sources and create visualizations of that data in the
SAC.
SAP Analytics Cloud solution focuses on data reporting and analysis and brings together
multiple tools in one cloud environment:
● Predictive Analytics
● Business Intelligence
● Business planning

● Extensive planning functions

● Machine learning
As the analytics layer of SAP Business Technology Platform, it supports advanced analytics
across the enterprise.
SAP Analytics Cloud is more self-service and less skilled staff are needed.
Mobile working is also supported optimally:
● Only a Web browser with Internet access is required.
● In addition, collaborative collaboration is encouraged by the integrated collaboration tools:
chats, presentations, shared calendar, and commentary.
With SAP Analytics Cloud, it is relatively easy to connect to different data sources and thus
include all relevant data in the analysis, which increases the quality of the results.
Live Connection enables you to analyze data in SAC in real time. The data remains on the
enterprise servers and is not uploaded to the cloud.
For the creation of analytics and dashboards, SAP Analytics Cloud provides two options:
● With the help of stories and models, the specialist department can create SAC stories
without programming know-how
● The Analytics Designer enables developers to create analytic applications through
enhanced functions and connections.
Business Content for SAC is provided, i.e. Models and Stories as a starting point for project
implementations.
Figure 161: SAP Planning Solutions - Statement of Direction
SAP Analytics Cloud is SAP's strategic tool when it comes to a planning application that is
tightly integrated with SAP S/4HANA or a single cloud-based solution. SAC includes planning,
reporting, and analysis in one platform.
BPC, version for SAP B/W4HANA, on the other hand, is recommended as a point solution for
on-premise planning and consolidations.
SAP BPC Optimized for SAP S/4HANA, a mature, fully functional planning and consolidation
application, can still be used for real-time planning on SAP S/4HANA on-premise as it

Lesson: Planning with SAP Analytics Cloud
continues with enhancements and mainstream support until at least 2027. This protects BPC
investments.
Please refer to the SAP Product Availability Matrix for the support dates according to product
versions.
If you want to gain experience with the cloud solution, you can move functions from SAP BPC
Optimized for SAP S/4HANA to SAP Analytics Cloud and start with hybrid planning and/or
advanced reporting scenarios.
Figure 162: Overall Architecture
In SAP S/4HANA, the data for financial planning is based on the ACDOCP table, which is the
most important table for planning. It is the single source of truth for planning data and
supports the connection of predecessor and successor processes.
The figure above shows that you can manage financial plan data in SAP S/4HANA using
various apps to import, copy, and delete plan data in the ACDOCP table. You can also import
plan data into the ACDOCP table using OData APIs (Application Programming Interface).
For a complete list of APIs (master and transaction data), see the documentation: https://
help.sap.com/viewer/DRAFT/b3438d89db5040508a3873ad6c6e55bc/2021.000/en-S/
500bb85a61604b0882be6ad0411e4538.html.
Instead of planning directly in S/4HANA (table ACDOCP), you can use SAP Analytics Cloud
for cost center planning, product cost planning, sales and profitability planning, and project
planning.
There is a complete integration between SAP Analytics Cloud and S/4HANA using OData
(Application Programming Interfaces) APIs regarding master and actual data (comparative
data for planning) that can be imported from S/4HANA to SAP Analytics Cloud.
The content Odata Services to import Master Data from SAP S/4HANA to SAP Analytics
Cloud can be checked in the following documentation: https://help.sap.com/viewer/DRAFT/
48f4b4785b8e45938ac44a67be8032d9/2021.000/en-US/
0920cbbd90824cf596335f30786bde8c.html.
For financial planning, SAP S/4HANA provides OData services to import transaction data into
SAP Analytics Cloud models. You can import the data once, or on a recurring schedule.

Check the following documentation: https://help.sap.com/viewer/DRAFT/

48f4b4785b8e45938ac44a67be8032d9/2021.000/en-US/
647247dc5cf0407b9310bb033e04cbfa.html.
After planning in SAP Analytics Cloud compared to the imported actual data, the planning
results can be exported back to SAP S/4HANA.
Note:
The system always performs a full update when exporting transaction data. We
therefore recommend that you do not export transaction data too often, either
manually or using the job scheduler, as this can lead to high resource
consumption and performance problems.
For Financial Planning, SAP provides the following OData services to export data from SAP
Analytics Cloud to SAP S/4HANA:
Technical Name Description
API_FINANCIALPLANDATA_SRV Financial Plan Data - ACDOCP
C_ACTYTYPEPLANCOSTRATE_SRV Activity Types Plan Cost Rates - ACCO-
STRATE
C_SKF_SRV Statistical Key Figures - FINSSKF
Customers who have previously planned with SAP BPC Optimized for SAP S/4HANA, now
have the option of hybrid planning. This means that functions from SAP BPC Optimized for
SAP S/4HANA are moved to SAP Analytics Cloud and written online to the ACDOCP table via
a virtual provider.
Plan data that was planned using SAP Analytics Cloud and exported to ACDOCP can then be
forwarded to Info Providers of a SAP BW/4HANA system using a CDS view-based extraction.
Figure 163: Financial Planning Scenario 1 - SAC Only

The scenario is appropriate for:

● S/4HANA Cloud customers
● New S/4HANA On Premise customers
● Customers converting and SAP ERP system to S/4HANA On Premise that want to
implement a new planning solution.
Typical Setup:
● SAC is the primary planning tool, complete financial planning is done in SAC.
● After planning round is finished, plan data, activity cost rates and statistical key figures are
exported to S/4HANA.
● Embedded Analytics (e.g. plan-actual comparisons) runs in S/4HANA.
● In certain scenarios Universal Allocation is used in S/4HANA:
- When it is crucial that actual an plan allocation run with the same rules and when it is
too much effort to replicate the allocation rules between SAC and S/4HANA
- When required allocation features are missing in SAC
● Transfer programs between new tables (ACDOCP, ACCOSTRATE) and classic tables are
not needed.
Figure 164: Financial Planning Scenario 2 - SAC combined with Classic Planning
The scenario is appropriate for customers converting an SAP ERP system to S/4HANA On
Premise who want to modernize the existing, classic planning implementation.
Typical Setup:
● In a transition phase, migrate some planning areas to SAC and leave others with classic
planning.
● Move planning results from new planning to classic planning to be consumed in processes
like activity confirmation or cost estimate.
● Leave dedicated planning tasks with classic planning, e.g. activity cost rate calculation with
iteration and cost component split.

● Use data transfer programs between classic and new planning.
Migrate some planning areas to SAC, leave others with classic planning:
● Example: Sales and profitability planning with SAC combined with classic cost center
planning and product cost estimate
● Perform Classic cost center planning
● Transfer plan data from CO-tables to ACDOCP
● Perform cost estimate based on activity cost rates from classical planning
● Import cost estimate into SAC product plan model
● Copy cost estimate into profitability model
● Perform sales and profitability planning in SAC
● Export profitability plan data to ACDOCP
● Embedded Analytics for both cost center and profitability plan data based on ACDOCP
Activity cost rate planning or calculation in SAC:

● Complete cost center planning in SAC
● Export plan data to ACDOCP and cost rates to ACCOSTRATE
● Transfer cost rates from ACCOSTRATE to COST
● Use cost rates in COST for actual posting like activity allocation and for cost estimate
Activity cost rate calculation with iteration and/or splitting:

● Expense and activity quantity planning in SAC
● Export to ACDOCP
● Transfer from ACDOCP to CO-tables
● Activity cost rate calculation on CO-tables, result is written into COST
● Option 1:
- Perform cost estimate based on activity cost rates from classical planning
- Import cost estimate into SAC product cost model
- Copy cost estimate from product cost model into profitability model
- Perform sales and profitability planning in SAC - ultimately based on S/4 product cost
estimate
● Option 2 (Only in case splitting was not used):
- Transfer cost rates from COST to ACCOSTRATE
- Import cost rates from ACCOSTRATE to SAC
- Use cost rates in SAC for product cost planning
- Perform sales and profitability planning in SAC - based on SAC product cost planning
Classic plan allocations:

● Reasons:
- Allocations across company codes
- Actual allocations still classical and not One allocation based
● Expense and activity quantity planning in SAC
● Export to ACDOCP
● Transfer from ACDOCP to CO-tables
● Run classic allocations on CO-tables
● Transfer allocated costs from CO-tables to ACDOCP to do Embedded Analytics
● Optional:
- Import allocated costs from ACDOCP to SAC
- Use them for subsequent planning tasks
Figure 165: Planning Transfer Programs
With Scenario 2, a transfer of Financial Plan Data between the old CO tables and
the ACDOCP table in SAP S/4HANA might be necessary.
Use the following programs for this transfer:
Direction of Transfer Program Description
From ACDOCP Table to CO R_FINS_PLAN_TRANS_CO_S Transfers CO plan data from
Tables 4H_2_ERP ACDOCP table to CO tables
From CO Tables to ACDOCP R_FINS_PLAN_TRANS_CO_E Transfers CO plan data
Table RP_2_S4H from CO tables to AC-
DOCP table
From ACDOCP Table to R_FINS_PLAN_TRANS_ACT- Transfers plan activity and
COSL Table OUT_2_ERP capacity from the AC-
DOCP table to the COSL ta-
ble
From COST Table to ACCO- R_FINS_PLAN_TRANS_AC- Transfers prices
STRATE Table TY_ERP_S4H from COST table to ACCO-
STRATE table

Direction of Transfer Program Description

From ACCOSTRATE Table to R_FINS_PLAN_TRANS_AC- Transfers cost rates
COST Table TY_S4H_ERP from ACCOSTRATE table
to COST table
Integrated Financial Planning with SAC
Figure 166: Basic Equation
SAP Analytics Cloud is fully integrated with SAP S/4HANA Cloud, SAP S/4HANA, SAP
Human Resources, and SAP Integrated Business Planning (SAP IBP) and enables integrated
financial planning and budgeting processes. To exchange data, SAP Analytics Cloud connects
to OData services in SAP S/4HANA.
SAP delivers the Integrated Financial Planning for SAP S/4HANA business content which
already includes a model, stories, data actions, demo data for your planning in SAP Analytics
Cloud and allows you to import your own data from SAP S/4HANA Cloud, SAP S/4HANA,
SAP Human Resource, and SAP IBP and to export your planning results back.
Figure 167: SAP S/4HANA: Business Content Processes
The processes included in business content in SAP Analytics Cloud are:

● Cost Center Planning:

You manage the costs for different areas within a company. In addition to cost centers,
other cost objects such as internal orders or projects can be used as well. Cost center
planning serves as an important input for product cost planning because it determines the
activity cost rates, such as a machine hour to calculate the activity costs.
● Product Cost Planning:
You calculate the costs of products. The two main components of product costs are the
raw material costs and the activity costs, such as machine costs.
● Sales and Profitability Planning:
You calculate the revenues, deductions, and costs based on the planned sales quantities.
Product-related costs originate from product cost planning whereas product-independent
costs such as administration costs originate from cost center planning directly.
● Project Planning:
You plan the costs associated with a project or program. A work breakdown structure
(WBS) is used to capture the project activities. The WBS consists of WBS elements that
describe the tasks to be completed as part of the project.
● Internal Order Planning:
You enter costs that you expect to incur during the life cycle of an order. Using internal
order planning, you can plan and compare your costs on G/L account basis.
● Capital Expense Planning:
You plan profit center expenses for acquiring, maintaining, or improving fixed assets such
as buildings, vehicles, equipment, or land.
● Financial Statement Planning:
You do profit and loss planning with trading partner allocation, balance sheet planning, and
cash flow calculation.
● Integration to Workforce Planning:
This process is integrated with SAP SuccessFactors as well as with SAP S/4HANA Cloud
and SAP S/4HANA allowing you to plan resources and calculate personnel expenses.
These expenses can be transferred to the cost center planning model within Integrated
Financial Planning for SAP S/4HANA content.
● Integration to SAP Integrated Business Planning (SAP IBP):
This process enables the integration of SAP Analytics Cloud with SAP Integrated Business
Planning (SAP IBP) and with SAP S/4HANA allowing you to copy the consensus demand
plan quantity from SAP IBP to SAP Analytics Cloud and perform the profitability
calculation in SAP Analytics Cloud. The result (revenue and cost of goods sold by product)
can be passed back to SAP IBP.
● Group Reporting Planning for SAP S/4HANA Cloud and SAP S/4HANA:
This process enables you to perform profit and loss and balance sheet planning for the
dimensions of group reporting.

Figure 168: Cost Center Planning
Cost center Planning involves entering plan figures for costs, activities, prices, or statistical
key figures for a particular cost center and planning period.
You can then determine the variances against plan when you compare the plan values with
the actual costs. Variances serve as a signal to make the necessary changes to your business
processes.
Cost center planning forms part of the overall business planning process and is a prerequisite
for standard costing. The main characteristic of standard costing is that values and quantities
are planned for specified time frames, independently of the actual values from previous
periods.
You can use plan costs and plan activity quantities to determine the (activity) prices. These
prices can be used to value internal activities during the ongoing period, that is, before the
actual costs are known.
You can do the following with the Integrated Financial Planning for SAP S/4HANA business
content for Cost Center Planning in SAP Analytics Cloud:
● Expense planning
● Allocations
● Activity quantity planning
● Activity cost rate planning
● Activity cost rate calculation
After import of the Integrated Financial Planning for SAP S/4HANA business content, the
following content model and stories for cost center planning are available:
Model:
● SAP__FI_BPL_IM_COSTCENTER
Stories:
● SAP__FI_BPL_IM_COSTCENTER_PLAN_ADMIN - Administering Cost Center Planning
● SAP__FI_BPL_IM_ADDON_COPY_EXPENSES_FROM_WFP - Performing Workforce
Planning Transfer to Cost Center Planning
● SAP__FI_BPL_IM_COSTCENTER_EXPENSES - Planning Cost Center Expenses

● SAP__FI_BPL_IM_COSTCENTER_ACTIVITYPRICE_INPUT - Planning Cost Center Cost

Rates and Output Quantities
● SAP__FI_BPL_IM_COSTCENTER_ACTIVITYPRICE_CALCULATION - Calculating Cost
Center Cost Rates
● SAP__FI_BPL_IM_COSTCENTER_BUDGET - Setting Up Cost Center Budgeting
● SAP__FI_BPL_IM_COSTCENTER_ANALYTICS -Performing Cost Center Analytics
● SAP__FI_BPL_IM_COSTCENTER_REPORTS - Performing Cost Center Reporting
Figure 169: Integrated Financial Planning for SAP S/4HANA: Product Cost Planning
Product Cost Planning

You calculate the costs of products. The two main components of product costs are the raw
material costs and the activity costs, such as machine costs.
Product cost planning involves calculating the non-order-related cost of goods manufactured
and cost of goods sold for each product unit. You can establish how the costs are broken
down for each product, and calculate the value added for each step of the production
process. This enables you to optimize the cost of goods manufactured and support make-or-
buy decisions. In addition, product cost planning provides information for sales and
profitability planning as part of an integrated planning process.
The following features are supported:
● Simulation of product costs based on raw material prices and activity cost rates
● Calculation of product costs based on raw material prices and activity cost rates
● Activity cost rates as an output of the cost center planning process
following content model and stories for product cost planning are available:
Model:
● SAP__FI_BPL_IM_PRODUCTCOST
Stories:
● SAP__FI_BPL_IM_PRODUCTCOST
● SAP__FI_BPL_IM_PRODUCTCOST_PLAN_ADMIN

● SAP__FI_BPL_IM_PRODUCTCOST_RATES
● SAP__FI_BPL_IM_PRODUCTCOST_RESOURCES
● SAP__FI_BPL_IM_PRODUCTCOST_ANALYTICS
● SAP__FI_BPL_IM_PRODUCTCOST_REPORTING
Figure 170: Integrated Financial Planning for SAP S/4HANA: Sales & Profitability Planning
Sales and Profitability Planning

You calculate the revenues, deductions, and costs based on the planned sales quantities.
Product-related costs originate from product cost planning whereas product-independent
costs such as administration costs originate from cost center planning directly.
Sales and profitability planning allows you to plan sales, revenue, and profitability data for any
selected profitability segments. It is generally perceived as an integrated process involving
different roles within profitability and sales accounting (such as sales manager, regional
manager, and sales employee).
Distinctions are often made between the different approaches used, such as central top-down
planning and local bottom-up planning.
Many companies have implemented an iterative process consisting of a number of individual
planning steps, in which existing planning data is copied, projected into the future, revalued,
adjusted manually, and distributed top-down until they obtain a sales and profit plan that
fulfills the company's requirements.
The following features are supported:
● Sales price and sales quantity planning
● Calculation of revenue and deductions
● Simulation based on past actual data
following content model and stories for sales and profitability planning are available:
Model:

● SAP__FI_BPL_IM_PROFITABILITY
Stories:
● SAP__FI_BPL_IM_PROFITABILITY_PLAN_ADMIN - Administering Sales and Profitability
Planning
● SAP__FI_BPL_IM_PROFITABILITY_PROF_INPUT - Performing Profitability Planning
● SAP__FI_BPL_IM_PROFITABILITY_ANALYTICS - Performing Sales and Profitability
Analytics
● SAP__FI_BPL_IM_PROFITABILITY_REPORTS - Performing Sales and Profitability
Reporting
Figure 171: Project Planning and Internal Order Planning
Project Planning
You plan the costs associated with a project or program. A work breakdown structure (WBS)
is used to capture the project activities. The WBS consists of WBS elements that describe the
tasks to be completed as part of the project.
Project planning is used to plan the costs associated with a project or program. A work
breakdown structure (WBS) is used to capture the project activities.
The WBS consists of WBS elements that describe the tasks to be completed as part of the
project. Project planning in SAP Analytics Cloud enables planners to capture project expense
budgets and plans based on WBS elements.
Project planning in SAP Analytics Cloud is integrated with availability control functions and
budget consistency checks in SAP S/4HANA Cloud.
Internal Order Planning

During internal order planning, you enter costs that you expect to incur during the life cycle of
an order. Using internal order planning, you can plan and compare your costs on G/L account
basis.
Figure 172: CAPEX Planning
Capital Expense Planning

You plan profit center expenses for acquiring, maintaining, or improving fixed assets such as
buildings, vehicles, equipment, or land.
Capital expense planning (CAPEX) makes it easy to plan profit center expenses for acquiring,
maintaining, or improving fixed assets such as buildings, vehicles, equipment, or land.
Capital expense planning also allows the resulting depreciation plan amounts to be calculated
using the straight-line or accelerated depreciation method. The results can be transferred to
the Financial Statement Model.
After the import of the Integrated Financial Planning for SAP S/4HANA a business content, the
following content model and stories for capital expense planning are available:
Model:
● SAP__FI_BPL_IM_CAPEX
Stories:
● SAP__FI_BPL_IM_CAPEX_PLAN_ADMIN - Administering Capital Expense Planning
● SAP__FI_BPL_IM_CAPEX_PLANNING - Performing Capital Expense Planning

Figure 173: Financial Statement Planning
Financial Statement Planning

You do profit and loss planning with trading partner allocation, balance sheet planning, and
cash flow calculation.
Financial statement planning enables you to do profit and loss planning with trading partner
allocation, balance sheet planning, and cash flow calculation in SAP Analytics Cloud.
Planning administrators can pre-populate planning screens based on past actual data and on
plan data from the cost center, profitability plan, or investment plan.
After the import of the Integrated Financial Planning for SAP S/4HANA business content, the
following content model and stories for financial statement planning are available:
Models:
● SAP__FI_BPL_IM_FINANCIAL_STATEMENT
Stories:
● SAP__FI_BPL_IM_FINANCIAL_STATEMENT_PLAN_ADMIN - Administering Financial
Statement Planning
● SAP__FI_BPL_IM_FINANCIAL_STATEMENT_PLANNING - Performing Financial Statement
Planning
● SAP__FI_BPL_IM_FINANCIAL_STATEMENT_REPORTS - Performing Financial Statement
Reporting
● SAP__FI_BPL_IM_FINANCIAL_STATEMENT_ANALYTICS - Performing Financial
Statement Analytics

Figure 174: Documentation & Knowledge Sharing
To get a deep dive into the delivered content check the following links:
● Integrated Financial Planning for SAP S/4HANA - Documentation - Process: https://
help.sap.com/viewer/DRAFT/48f4b4785b8e45938ac44a67be8032d9/2021.000/en-
US/64a273e7bc2143f0930e2c3509888169.html
● Architecture Overview: Financial Planning: https://help.sap.com/viewer/DRAFT/
48f4b4785b8e45938ac44a67be8032d9/2021.000/en-US/
f900a12c7abf4c91957478cd6f6e48e8.html
● Integrated Financial Planning for SAP S/4HANA - Documentation: Introduction Videos:
https://help.sap.com/viewer/DRAFT/
48f4b4785b8e45938ac44a67be8032d9/2021.000/en-US/
a2b35263477b4895a301a8d544dea775.html
Note:
The documentation contains a deep dive into the delivered content including
recordings: https://help.sap.com/viewer/DRAFT/
48f4b4785b8e45938ac44a67be8032d9/2021.000/en-US/
82aa2e91f39f4319ae5cef1c4880785c.html.
How to Plan with SAP Analytics Cloud

This is an instructor demonstration of how to use off-the-shelf content for financial planning.
In this example a SAP Fiori app has been created that will be use to launch the story. The
underlying SAP Analytics Cloud system is a stand-alone system This is not an example of
embedded SAC.

1. Go to the SAP Fiori launchpad.
2. Launch the Finance Landing Page - SAC Finance Story.

a) Go to the Controlling tab.
b) Open the Finance Landing Page - SAC Finance Story.
Figure 175: SAC Planning General Page
An SAC Story is consists of pages that contain reports and dashboards primarily.
However, pages can also be used to provide access to other stories/pages via hyperlinks.
3. Go to the Cost Center - Planning page.
Figure 176: Cost Center Planning - Landing Page
The objective of the Cost Center Planning - Landing page is to provide an easy way to
access all of the content to carry out planning in this area.
4. Use the page drop down to access the Product Cost Planning page.

Figure 177: Product Cost Planning
5. Use the drop down for Display to view the Tab Bar. Select the Financial Statement
Planning page.
Figure 178: Financial Statement Planning
6. Choose Create Sample data to access the admin story. Generate actual data, plan data,
and calculate cash flow.

Figure 179: Financial Statement Planning - Administration
Note:
The push buttons run data actions (like planning functions) to create test data.
You will not be able to publish any data in this training landscape.
7. In the SAP Analytics Cloud Overview tab, go to the Planning story and Profit and Loss page.
Copy P&L and Balance Sheet data. Run the Apply Control Parameters to perform a mark-
up. Enter an increase of 5%. View the history of your actions.
a) Run the Copy P&L and Balance Sheet data action. A new column for Plan 2023 data
appears.
b) Run the Apply Control Parameters - For Profit and Loss data action. Operating
expenses are adjusted upwards based on a factor.
c) For Operating Expense / Plan / 2023, enter +5%.
d) Right click on a data cell in the Plan / 2023 column → Version → History.

As changes are made to the income statement, there are offsetting entries to retained
earnings in the balance sheet.
8. In the Balance Sheet Report tab, run the Calculate Balance Sheet data action.
Figure 180: Synchronize the Balance Sheet and Income Statement
Changes to retained earnings have resulted in an out-of-balance. The Calculate Balance

Sheet data action generates balancing entries into cash accounts.
9. In the Financial Statement Planning page, choose Profit & Loss Overview under Analytics.

Figure 181: Financial Statement Planning Analytics
10. In the Operating Expense per Functional Area for Plan chart, right click on Operating
Expenses for Production and choose Smart Insights. In the Smart Insights pane, expand
the groups to display the key contributors.
Figure 182: SAC Smart Insights
Smart insights can be a useful aid when planning since it provides an understanding of
why the values are so high for example.
11. In the Financial Statement page, go to the Visualize Profit & Loss page in the Analytics
story.

12. Clear the Actual and Plan data.

a) In the Financial Statement Planning page, choose Create Sample Data under Admin.
b) Choose Clear Actuals.
c) Choose Clear Plan Data.
13. Close any extra tabs and return to the home page of the SAP Fiori launchpad.
LESSON SUMMARY

Unit 3
Learning Assessment
1. How a business partner is used in accounting is defined through the business partner role.
X True
X False
2. The full functionality of the Material Ledger has been implemented in the Universal
Journal.
X True
X False
3. Cost of Goods Sold are posted to margin-based and costing–based CO-PA during billing.
X True
X False
4. The splitting scheme for Cost of Goods Sold (COGS) is assigned to the Controlling Area
directly.
X True
X False
5. The standard granularity available in logistics for reporting purposes is the single lot.
X True
X False

Unit 3: Learning Assessment
6. It is recommended to use margin-based CO-PA by default in an SAP S/4HANA system.

X True
X False
7. When the S-Price indicated goods from completion of production are transferred to stock,
the production order is credited with the value of the delivered products according to the
price in stock.
X True
X False
8. During the price variance split, unassigned cost elements are posted to the account to
which you have assigned the Default checkbox.
X True
X False
9. Where in customizing do you activate transfer pricing?

Choose the correct answer.
X A Enter Global Parameters for Company Code
X B Activate Profit Center Accounting in Controlling Area
X C Maintain Controlling Area
X D Maintain Operating Concern

Unit 3
1. How a business partner is used in accounting is defined through the business partner role.
X True
X False
Correct. How a business partner is used in accounting is defined through the business
partner role.
2. The full functionality of the Material Ledger has been implemented in the Universal
Journal.
X True
X False
Correct. The Material Ledger also provides options to perform multilevel actual costing.
This will be performed using a costing run as before (not in scope for the Universal
Journal).
3. Cost of Goods Sold are posted to margin-based and costing–based CO-PA during billing.
X True
X False
Correct. There is no posting to costing-based CO-PA, because, in theory, there is no Cost

of Goods Sold without revenue.
4. The splitting scheme for Cost of Goods Sold (COGS) is assigned to the Controlling Area
directly.
X True
X False
Correct. The splitting scheme for Cost of Goods Sold (COGS) is assigned to the relevant
company code with a valid from date.

5. The standard granularity available in logistics for reporting purposes is the single lot.
X True
X False
Correct. SAP logistics allow post of finest granularity, such as handling unit, lot size 1, or
sensor data.
6. It is recommended to use margin-based CO-PA by default in an SAP S/4HANA system.

X True
X False
Correct. It is recommended to use margin-based CO-PA by default in an SAP S/4HANA

system.
7. When the S-Price indicated goods from completion of production are transferred to stock,
the production order is credited with the value of the delivered products according to the
price in stock.
X True
X False
Correct. When the S-Price indicated goods from completion of production are transferred
to stock, the production order is credited with the value of the delivered products
according to the price in stock.
8. During the price variance split, unassigned cost elements are posted to the account to
which you have assigned the Default checkbox.
X True
X False
Correct. During the price variance split, unassigned cost elements are posted to the
account to which you have assigned the Default checkbox.

9. Where in customizing do you activate transfer pricing?

Choose the correct answer.
X A Enter Global Parameters for Company Code
X B Activate Profit Center Accounting in Controlling Area
X C Maintain Controlling Area
X D Maintain Operating Concern
Correct. The toggle the switch to activate transfer pricing, you maintain the controlling
area.

S4F02 - EN - Col20 - Management Accounting in SAP

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S4F02 - EN - Col20 - Management Accounting in SAP

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Management Accounting in SAP

© 2022 SAP SE or an SAP affiliate company. All rights reserved.

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American English is the standard used in this handbook.

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User interface control Example text

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vii Course Overview

1 Unit 1: Overview of Financials for SAP S/4HANA

3 Lesson: Getting an Overview of SAP S/4HANA

35 Unit 2: Structures, Master Data, Process Control, and Reporting

37 Lesson: Managing the Structures

101 Unit 3: Integrated Business Processes

103 Lesson: Understanding CO integration with Procurement

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● Provide an overview of SAP S/4HANA Finance

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Overview of Finance with SAP S/4HANA

Figure 1: Hybrid Transaction/Analytical Processing

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Figure 2: Complete Finance Portfolio

Figure 3: SAP S/4HANA Highlights per Finance Area

Financial Planning and Analysis:

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Accounting and Financial Close:

Treasury and Financial Risk Management:

Enterprise Risk & Compliance Management:

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Figure 4: Universal Journal Enables Continuous Accounting

The customer value proposition of SAP S/4HANA can be summarized as follows:

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SAP S/4HANA Finance Learning Journey

Figure 5: Financial Accounting Learning Journey

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SAP Fiori Application and Tools

What is SAP Fiori?

Figure 6: SAP Fiori

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● Empowerment of users and the way they work

Domain-specific information and actions

Figure 7: SAP Fiori Launchpad User Personalization

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Figure 8: SAP Fiori Launchpad Designer

Different Types of Apps

Figure 9: SAP Fiori Application Types

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The apps allow the user to:

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Figure 12: Analytical App Example: Trial Balance

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Figure 14: SAP Fiori Smart Business – KPI Monitoring

New User Experience and Working Model Powered by SAP S/4HANA

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● New working model supporting end-to-end insight to action scenarios, including

Figure 15: Fact Sheets Example

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