Open sap s4h15_week_2_unit_3_ctrlchange_presentation
- 1. Week 2: Conversion to SAP S/4HANA Finance Unit 3: Essential Changes in SAP S/4HANA Controlling
- 2. 2 PUBLIC © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ Essential Changes in SAP S/4HANA Controlling The new finance architecture in SAP S/4HANA: universal journal – Integration benefits General Ledger Ledger Company Account Profit Center Amount 1 Amount 2 Amount 3 … Profitability Analysis Operating Concern Market Segment Customer Product … Management Accounting Controlling Area Cost Element Amount 1 Amount 2 Coding Block … Asset Accounting Company Fixed Asset … Material Ledger Company Material … Ledger Company Account Profit Center Amount 1 Amount 2 Amount 3 … Controlling Area Cost Element Amount 1 Amount 2 Coding Block … Company Fixed Asset … Company Material … Operating Concern Market Segment … Profitability General Ledger Management Accounting Asset Accounting Material Ledger Benefits: ▪ With the universal journal, Controlling is now fully embedded in the general ledger ▪ One line item table with full details for all FI and CO components ▪ Data stored only once: no reconciliation needed by architecture ▪ Secondary cost elements are G/L accounts ▪ Reduction of memory footprint through elimination of redundancy ▪ Fast multi-dimensional reporting on the universal journal possible without replicating data to BI ▪ If BI is in place anyway, only one BI extractor needed (instead of many today) ▪ Technically enhanced important structural capabilities of the Financials solution to support e.g. multi-GAAP, additional currencies Prerequisite for getting the full benefit: ▪ Profitability analysis in the universal journal
- 3. 3 PUBLIC © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ Essential Changes in SAP S/4HANA Controlling Unified master data maintenance G/L account type: only one G/L master is required. G/L accounts of type “secondary costs” or “revenues” update CSK* and SK* tables The cost element category specifies which transactions can use this cost element Accounts of type “secondary costs” can be used for CO-internal allocations
- 4. 4 PUBLIC © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ Essential Changes in SAP S/4HANA Controlling Data flow – CO postings Description ▪ ACDOCA stores full details ▪ Former COEP, ANEP, MLIT etc. data is stored in ACDOCA ▪ BSEG is only written in case open item-managed accounts are affected (e.g. for cross-company postings) ▪ PCA, FI-SL work as before. If FI-SL was posted via activity “COFI” (real-time integration CO-FI), secondary cost elements (which are now G/L accounts) are posted directly and no mapping to a primary cost element is done ▪ EC-CS as before with New G/L real-time integration, but now including secondary cost elements (which are G/L accounts). The system now works with the original CO activities like RKU1 instead of using the activity “COFI” ▪ Components that have been built with FI-SL technology work as before. ▪ Cost-based CO-PA works as before ▪ (Accounting-based CO-PA has been activated) Accounting Interface CO “ACDOCA” FI-SL PCA EC-CS Cost Based CO-PA
- 5. 5 PUBLIC © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ Essential Changes in SAP S/4HANA Controlling Compatibility views for non-disruptiveness Totals, Indices,… Compatibility Views Universal Journal Read Select Custom program or report Redirect ▪ Non actuals are still stored in COEP and COS*_BAK *check limitations e.g. in material ledger for actual costing COSP_BAK V_COEP_ORI ▪ Read access from custom ABAP programs or reports to prior tables will work as before* BSEG COEP Select V_COEP_VIEW COEP COEP Select Custom program or report or SE16 GLT0_BCK ACDOCA Redirect ▪ Views for original content ▪ Back-up tables for totals tables and index tables ▪ Prima nota still in table BSEG (Document Entry view) ▪ No compatibility view exists for material ledger actual costing
- 6. 6 PUBLIC © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ Essential Changes in SAP S/4HANA Controlling Material ledger, actual costing, and transfer pricing Local GAAP US GAAP xxx xxx xxx IFRS Material Ledger ▪ Up to 3 parallel currencies ▪ Prices and stock values are automatically translated into parallel currencies ▪ Activation and migration during conversion ▪ SAP Note 2267834 Transfer Pricing ▪ Available from SAP S/4HANA 1610 ▪ Single or multi-ledger approach ▪ SAP Help Actual Costing in Material Ledger ▪ Fundamental changes in actual costing ▪ Redesign of costing steps at period end ▪ Migration during conversion ▪ SAP Note 2354768
- 7. 7 PUBLIC © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ Essential Changes in SAP S/4HANA Controlling Material ledger mandatory in SAP S/4HANA Material ledger (ML) is now obligatory for all SAP S/4HANA customers What customers understood ▪ We never needed ML and now we have to use it ▪ A lot of extra work in implementation ▪ Extra work for each month-end closing ▪ Standard price and moving average price are no longer possible What SAP wanted to say ▪ Material ledger and Finance are now responsible for material valuation ▪ Only one solution (ML) and not two in parallel material ledger + materials management (MM) ▪ The checkmark ‘Material Ledger Active’ will be set ▪ Material valuation is now stored in ML tables and not MM Reality: most customers will experience no consequences of the SAP development decision
- 8. 8 PUBLIC © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ Essential Changes in SAP S/4HANA Controlling Data model for actual costing ML Period Closing Cockpit SAP Business Suite Material Quantities Material Values Valuation in MM or Valuation ML
- 9. 9 PUBLIC © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ Essential Changes in SAP S/4HANA Controlling New data model for actual costing with SAP S/4HANA 1610 onwards ML Period Closing Cockpit Simplification ▪ Simplified Data Structures ▪ Optimized Calculation Logic ▪ Streamlined Process ▪ Easier Handling Material Values Material Quantities On-the-fly aggregation and compatibility views for indices and obsolete tables
- 10. 10 PUBLIC © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ Essential Changes in SAP S/4HANA Controlling Other key changes ¥ $ € Effect on period lock ▪ Additional 3rd period interval introduced in finance open/close period (OB52) ▪ Period interval 3 specifies the open and closed posting periods for postings from Controlling to Financial Accounting ▪ Enter period interval 3 with account type “+” Optimized transactions ▪ Optimized transactions for Controlling period-end close in SAP S4HANA ▪ These transaction programs are developed in line with new data structure and the transaction codes end with H, i.e. KO8GH, KKS1H, CO88H etc. ▪ SAP Note 2541629 Default account assignment ▪ Default account assignment, which could be maintained in cost element master, has been removed ▪ In SAP S/4HANA, default account assignment can be defined in transaction OKB9 ▪ Default accounts maintained in former cost element master data are migrated to transaction OKB9
- 11. 11 PUBLIC © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ Essential Changes in SAP S/4HANA Controlling Enhancements of Profitability Analysis Account-Based CO-PA ▪ ACDOCA can be extended by customer-specific fields (like in COPA) ▪ Split of cost-of-goods-sold posting on multiple accounts (by cost component) ▪ Split of production variances posting on multiple accounts (differentiation of price/quantity effects) ▪ Three new quantity fields in the line items + BAdI for conversion of logistic quantities to common quantities (e.g. products sold in different box sizes – but KPI in Finance is calculated on tons/KG of products) ▪ Real-time derivation of market segment information from cost postings (cost center, order, WBS element) ▪ Immediate availability for reporting (P&L, B/S) based on ACDOCA ▪ Faster soft and hard close for periods Costing-Based CO-PA ▪ Product continues to exist and be supported, but no enhancements with SAP Accounting ▪ Customers can run account-based and costing-based CO-PA in parallel ▪ Customers should assess their valuation in FI versus valuation in costing-based CO-PA Refer COPA FAQ 2176823
- 12. 12 PUBLIC © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ Essential Changes in SAP S/4HANA Controlling Our vision of universal allocation Universal allocation… ▪ provides one architecture for FI and CO allocations ▪ combines actual and plan ▪ provides simulation capabilities ▪ includes actual and predictive data (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 Universal allocation will not initially cover… ▪ activity allocations. ▪ settlements, e.g. of IO and WBS elements Universal allocation Simplify allocations by combining various capabilities under ONE umbrella
- 13. 13 PUBLIC © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ Essential Changes in SAP S/4HANA Controlling Planning: what has changed now Customers requiring an on-premise solution SAP BPC* Standalone planning and with SAP S/4HANA and other cloud apps SAP Analytics Cloud *SAP BPC optimized can still be used for real-time planning on SAP S/4HANA on-premise and SAP BPC for SAP BW/4HANA is recommended for standalone on-premise deployments
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