tackle your most common financial pain points...

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Tackle Your Most Common Financial Pain Points Using Existing and New SAP Functionality

Paul Ovigele, ERPfixers Janet Salmon, SAP SE

1

In This Session

• Reconcile profitability analysis within the controlling module with the SAP General

Ledger

• Implement parallel accounting using the ledger approach

• Make your actual cost of sales more transparent through little-known cost component

split functionality

• Pinpoint new functionality in SAP enhancement package 5 that’s now available to help

streamline profit center and segment reorganization

• Create drill-down reports for multidimensional analysis of your financial data

• Successfully utilize summarized analysis reports for product costing and controlling

2

What We’ll Cover

• Reconciling CO-PA with the General Ledger

• Implementing Parallel Accounting

• Using Cost Component Split Functionality

• Profit Center and Segment Reorganization

• Creating Drilldown Reports for Multi-Dimensional Analysis

• Utilizing Summarized Hierarchies to Aggregate Product Costs

• Wrap-Up

3

Overview of Controlling Profitability Analysis

• Collects Revenues and Costs from various modules in order to analyze profitability

• Inherits the characteristics that are associated with those revenues and costs

• Examples of Characteristics are Customer, Product, Region, Salesperson, etc.

• Excellent tool for analysis but not easily reconcilable with the General Ledger

4

Costing-Based CO-PA

• Groups costs and revenues into Value Fields

• Value fields are mapped to Conditions, G/L Accounts, Cost Components, and

Variance Categories

• This was the original model of CO-PA

• When people say CO-PA they are normally referring to “Costing-Based” CO-PA

5

Account-Based CO-PA

• Uses Accounts as a basis for reporting

• All P&L Accounts would need to be created as cost or revenue elements

• Categories of cost and revenue elements are classified according to cost element groups

• This type of CO-PA was introduced because accountants complained about not being

able to reconcile costing-based CO-PA to the general ledger

6

Advantages and Disadvantages

Advantages Disadvantages

• Splits the cost of sales value into its

different cost components

• Can classify production variances into

their different categories

• Better visibility of contribution margin

as fixed and variable costs can be

broken out

• Does not show G/L Accounts, hence, not

as easily reconcilable

• More complicated to set up as it requires

mapping of value fields to various objects

7

Advantages and Disadvantages (cont.)

Advantages Disadvantages

• Displayed according to G/L Accounts so it

is easier to reconcile to the General

Ledger

• As you can still report by characteristics,

it can also be compared with Costing-

based CO-PA reports

• You cannot break out cost of sales into

their fixed and variable costs

• You cannot analyze variances into their

respective categories

• You cannot analyze cost of sales

according to cost components

8

Data Flows into CO-PA

9

Timing Difference of Goods Issue

Transaction General Ledger CO-PA

Sales Order Not Updated* Not Updated

Goods Issue Updated (COS) Not Updated

Billing Document Updated (Revenue) Updated (COS and

Revenue)

* Note: CO-PA can be updated from sales orders if you activate “Transfer of Incoming

Sales Orders”

10

Configure Cost of Sales Condition and Account Key

• You can copy condition VPRS to ZPRS (V/06)

• Assign this condition to your pricing procedures (V/08)

• Assign Condition ZPRS to the Cost of Sales value field (KE4I)

• Create an account key “ZPR” using the menu path:

Sales and Distribution Basic Functions Account Assignment/Costing Revenue

Account Determination Define and Assign Account Key

• Assign this account key to the ZPRS condition in the pricing procedure (transaction V/08)

11

Configuring “Shipped Not Billed” Account and Cost Element

• Create “Shipped Not Billed” balance sheet account and set “Open Item managed

Account” checkbox (FS00)

• Enter this account under transaction Key GBB and Account Modification VAX (OBYC)

• Create the Cost of Sales cost element and with cost element category of “12 – Sales

Deduction” (KA01)

• Assign the account key ZPR to the G/L Accounts “Shipped not Billed” and “Cost of

Sales” (VKOA)

When you bill a customer, the “Shipped not Billed” account

will be credited and the “Cost of Sales” will be debited

12

Stock Transport Order Variance Issue

• A Stock Transport Order Variance, which is posted using transaction VL02N, does not get

posted to CO-PA

• This is because this transaction is posted as a goods issue. Goods issues do not pass to

CO-PA because they are expected to be billed.

• However, STOs are not billed, so there is a discrepancy

• You need to apply SAP Note 1167439

13

Credit/Debit Memos with No Inventory Adjustments

• Some credit/debit memos relate to price adjustments alone

• However, if you enter an inventory material number in them the system will determine

their standard cost

• This means that a cost will be transferred to CO-PA even though there has been no

inventory movement

• You may need to disable the VPRS condition for these type of Credit/Debit Memos

• Alternatively, you can use a text material (which does not have any standard cost)

14

Cost Element Category for Sales Order Condition

• Sales conditions that are mapped to value fields should be assigned to the appropriate

G/L Accounts

• These G/L accounts are mapped to sales conditions through the use of account keys

• The G/L Accounts should be set up as cost elements with Cost Element category 11 or 12

15

Making Production Variance Account a Cost Element

• Variances are posted to CO-PA through the mapping of variance categories to

value fields

• A variance G/L account is also posted to at the same time (configured in transaction

OBYC – Transaction Key: PRD-PRF)

• This G/L account should not be a cost element as this could lead to a double-posting

in CO-PA

16

Negative Discount Conditions

• A negative sales condition (i.e., deduction from Revenue) shows up in CO-PA as a

negative number

• However, Revenue shows up in CO-PA as a positive number

• This means that if your CO-PA reports contain a formula that deducts discounts from

Sales, this will be a double negative (hence an addition to sales)

• Therefore, if you add these (negative) discounts to revenue, be careful about FI-generated

discounts as they appear in CO-PA as positive amounts

• The recommendation is to use different value fields for Sales Condition Discounts, which

are negative, and FI-Generated discounts, which are positive

17

Cost Center Allocations Not Fully Absorbed

• If you have created cost center assessments to CO-PA, these need to be executed

every month

• This will ensure that all cost center costs eventually flow to CO-PA

• You need to check all the cost centers at month-end to ensure that they are zeroed out

18

Posting in CO-PA Without Corresponding G/L Entry

• CO-PA-only postings can be made using transaction KE21N

• However, if these postings are made without a corresponding FI entry, then this can lead

to an imbalance

• These postings should only be used in emergency cases or when a reconciliation issue

needs to be fixed

19

Instant Insight

in memory-enabled

Intuitive User Experience

all devices

Flexible and Non-disruptive

cloud or on-premise

” “ The world’s leading Finance solutions. Reinvented.

Financial Planning

and Analysis

Treasury and

Financial Risk

Enterprise Risk

and Compliance

Accounting and

Financial Close

Finance

Operations

SAP S/4HANA Finance

Source: SAP

20

Multiple Sources of Truth in Financials Before SAP S/4HANA Finance

Challenges: • The combined content of several tables

represents “the truth.” Reconciliation efforts are

enforced by design.

• Need “to move” data to the appropriate table for

reporting (e.g., “settlement”)

• Different level of detail stored in the respective

components/tables

• Components are structured differently (e.g.,

fields/entities differ)

• Different capabilities in the components

(customer fields, currencies, multi-GAAP, etc.)

• Multiple BI extractors needed to cover the

complete truth in BI

21

The New Architecture with SAP S/4HANA Finance: Universal Journal as the Single Source of Truth

The new architecture

• Motto: “Take the best of all worlds” (e.g.,

ledger, market segment, coding block, etc.)

• Secondary cost elements are G/L accounts

• One line item table with full detail for all

components

• Data stored only once: no reconciliation needed

by architecture

• 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 single BI

extractor needed (instead of many today)

• Technical preparation done to enhance

important structural capabilities of the

Financials solution (e.g., multi-GAAP, additional

currencies)

22

The New Journal Entry (Header and Item)

• 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 document header (e.g., carry forward,

corrections in migration). These entries do not represent

standard business processes.

The corresponding line items have “artificial document

numbers” beginning with letters (e.g., “A”)

• Table ACDOCA contains all fields needed for G/L, CO, AA,

ML, PA

• Multi-GAAP capability through “RLDNR” dimension

• 6-digit field for line item numbering

• 23 digits for currency fields

BKPF

ACDOCA

23

Merge of Account/Cost Element in Chart of Accounts

Balance Sheet

Accounts

Non-Operating

Expense/Revenues

Primary Cost

Elements

Secondary Cost

Elements

GL Account Account Types:

X: Balance Sheet

N: Non-operating expenses/revenues

P: Primary costs/revenues

S: Secondary cost elements

24

Account View of General Ledger

Balance Sheet

Profit and Loss/Primary Cost Elements

Accountability View by Cost Object

A/P

211000

800

Salary

Expenses

610000

800

Cost Center

900100

800

90100 Cost Center

Direct

postings

Real-World Event

SAP S/4HANA Finance: Accounts and Cost Objects

25

Result: Trial Balance with Cost Center Drilldown

26

Profit and Loss

Accountability by Cost Object

Assessments

416000

800

800

Cost

Center

90100

800 Profitability

Segment

XXXXXX

200

Profitability

Segment

XXXXXX

200

Profitability

Segment

XXXXXX

200

Profitability

Segment

XXXXXX

200

Allocations

from

cost centers

90100

Cost Center

Profit. Segment

Profit. Segment

Product Group

A

Profit. Segment

Profit. Segment Period-Close

Process

SAP S/4HANA Finance: Allocations

27

Result: Trial Balance Including Secondary Cost Elements

Replaces reconciliation ledger (KALC) and real-time integration in new GL!

28

What We’ll Cover







• Wrap-Up

29

Using Parallel Ledgers in the SAP General Ledger

• With SAP General Ledger, you can perform parallel accounting by running several

parallel ledgers for different accounting principles

• You can post data to all ledgers, to a specified selection of ledgers, or to a single ledger

• The leading ledger is integrated with all subsidiary ledgers and is updated in all

company codes

• You need to create an additional non-leading ledger for each parallel accounting principle

30

Setting Up Parallel Ledgers

• The leading ledger is activated at the client level

• All non-leading ledgers have to be activated at company code level

• Additional non-leading ledger can be used if the company wants to use different fiscal

year variants

• Closing activities are run separately in parallel ledger

• The leading area of Asset Accounting (Area 01) must be posted to the leading ledger

31

• Foreign Currency Valuation

• Value Adjustments Financial

Accounting

• Depreciation Areas

• Posting APC Differences Asset Accounting

• Financial Assets

• Financial Products Treasury

• Allocations

• Results Analysis Controlling

• Balance Sheet Valuation

• Alternative Valuation Run Materials

Management

SAP Components That Can Post to Parallel Ledgers

32

Setting Up Valuation Areas for Parallel Valuation

Source: SAP

33

Setting Up Depreciation Areas for Parallel Valuation

Assign the main depreciation area to the leading ledger

Assign the parallel depreciation area to a non-leading ledger

Create a delta depreciation area to post the difference

Complete the setup

34

Setting Up Depreciation Areas for Parallel Valuation (cont.)

• Go to the IMG menu path: Financial Accounting (New) Asset Accounting Valuation

Depreciation Areas Set Up Areas for Parallel Valuation

The system displays the

parallel valuation wizard

35

Assigning the Master Area to a Ledger Group

• Here you assign the main depreciation area to the leading ledger

36

Entering the Area for Parallel Valuation

• Here you enter the depreciation area for parallel valuation

37

Entering the Delta Area

• Here you assign the delta area to the parallel ledger group

38

Overview of Parallel Valuation Settings

The final stage of the

wizard shows the

book depreciation

area along with the

parallel and delta

areas

39

Activating the Depreciation Area in Asset Classes

• When the parallel depreciation area is created, it is not automatically activated in the

asset classes

You can do so by going to the following IMG menu path: Financial Accounting (New)

Asset Accounting Valuation Determine Depreciation Areas in the Asset Class

Remove the

Deactivation

indicator from the

depreciation area

40

• Go to transaction AFBN

• This transaction updates all existing assets with the new depreciation area

It does not update any existing assets under construction

Activating New Depreciation Area for Existing Assets

41

• Implement SAP Note 317806 in your system

This creates custom program ZZAFANEW1, which you can execute using

transaction SA38/SE38

Activating New Depreciation Area for AuCs

42

New Asset Accounting in SAP S/4HANA Finance (Formerly SAP Simple Finance)

• Flexibility concerning “Leading Valuation”

No more hard coupling of depreciation area 01

• Only one Depreciation Area per Valuation necessary

No further depreciation areas (Delta areas) necessary to portray a parallel valuation

• Real-time postings per accounting principle/valuation

Common understanding of posted document

Posting to different periods possible (restriction: beginning/end of FY need to be equal)

• No restrictions to set up different account determinations in different valuations

• New transactions for accounting principle (depreciation area) specific documents

• Always separate documents per accounting principle (FI-AA)

Post the values correctly right from the beginning, using multiple parallel documents

• Smooth integration with Parallel Valuation of Cost of Goods Manufactured (COGM)

Parallel valuation of acquisition values immediately with the activation of an Asset under

Construction (AuC)

43

Integrated Acquisition with Ledger Approach to Parallel Valuation (Different Amounts to Be Capitalized Due to Accounting Principle)

Asset Reconciliation Tech.Clear.Acc.Acqu.

Asset Reconciliation

AP Reconciliation

Transaction vendor invoice

1) ‘“Technical Clearing Account Acquisition’ to Vendor” LG Blank

2a) “Asset to ‘Technical Clearing Account Acquisition’” LG IFRS

2b) “Asset to ‘Technical Clearing Account Acquisition’” LG LGAAP

Transaction correction freight cost

3) “Freight expenses to Asset” LG LGAAP

2a) 10.200 2a) 10.200 1) 10.200 1) 10.200

1) 10.200 1) 10.200 2b) 10.200 2b) 10.200

IFRS

LGAAP

Freight expenses

3) 200 3) 200

• Technical account balances to zero

• Accounting Principle specific

documents

• Using different reconciliation account

per accounting principle is possible

44

FI-AA (New): Assets Activated in Only Some (But Not All) Accounting Principles

• In the new architecture:

Only relevant accounting principles need to be represented on the asset (or on the

asset class) by their corresponding depreciation areas

All postings issued within FI-AA will only affect those accounting principles which are

relevant for the involved asset(s)

P&L postings for all other accounting principles have to be handled manually by the

end user

45

What We’ll Cover







• Wrap-Up

46

Cost Component Structure

Cost Components group together costs of similar types

They are mapped to cost elements which are part of a material’s cost

Common examples are Materials, Labor, and Overhead

They are created in transaction OKTZ

47

Cost Components

• Cost components are set up to break out the standard cost into its respective elements

• Cost elements are assigned to these cost components

• These cost components are assigned to value fields

48

Uses of Cost Components

• Analyzing the cost origin across multiple production levels and assigning Cost elements

to these cost components

• Ability to view the costs by the original production factors, known as the primary cost

component split

• Structuring the costs according to the requirements of other areas, such as material

valuation or profitability analysis

Source: SAP

49

Initialization of Actual Cost Component Split

• Material Ledger’s Periodic Unit Price can also be split according to relevant

cost components

• Initialized by executing program

MLCCS_STARTUP in transaction SE38

• All materials with price determination

“3” get an initial cost component split

by standard price

Raw materials

Packing Materials

Overhead

Salaries

Depreciation

COST COMPONENTS

50

Transferring Data to Profitability Analysis

Define a valuation strategy for actual

costing and assign it to point of valuation 02

(KE4U)

Create costing keys for periodic and alternative costing runs based on specific valuation view

(SPRO)

Assign point of valuation 02 to costing keys and material types FERT,

HALB, etc.

(KE4J)

Assign point of valuation 02 to cost component structure and COPA

value fields

(KE4R)

Perform periodic valuation of costing

results with units sold in a period

(KE27)

51

You need to specify which CO-PA quantity field will be used by

the valuation strategy

Defining a Valuation Strategy

• Determines how value fields are updated in profitability analysis

• Methods for using Valuation Strategies are as follows:

CO-PA Condition Types

Transfer Prices

User Exits

Material Cost Estimates

• Valuation using Material Cost Estimates valuates the cost of sales of products sold from

billing documents that are transferred to CO-PA

52

Points of Valuation

• Identify how application functions are transferred to CO-PA

• Types of Points of Valuation are as follows:

• Point of Valuation “02” is used for updating CO-PA data with material ledger

• The combination of Point of Valuation “02” and record Type “F” (for billing documents) is

assigned to the Valuation Strategy for Actual Costing

53

Defining Costing Keys

• Costing Key determines which actual cost is to be applied to the CO-PA quantity field in

the valuation strategy

• By specifying a valuation view you can control whether the system uses the legal, group,

or profit center valuation’s actual cost

This is how you can use different actual costs based on different GAAP methods such

as US GAAP and IFRS

54

Defining Costing Keys (cont.)

• You assign the costing key to the actual cost of sales value field that you want to update

• If you have different actual costs for different valuation methods then you need to create

multiple costing keys and assign them to different value fields

• The IMG menu path for this setting is as follows:

Controlling Profitability Analysis Master Data Valuation Set

up Valuation Using Material Cost Estimate Define Access to Actual

Costing/Material Ledger

55

Assigning Costing Keys

Assign Costing Keys to Products

Assign Costing Keys to Material Types

Assign Costing Keys to Characteristics

• Up to three costing keys can be assigned to each of the steps above

• Each step overrides the other in the sequence displayed

56

Periodic Valuation

• Should be executed after your actual costing and alternative

valuation runs have been done at period-end

Record type indicates

that you are applying the

cost to posted billing

documents

Periodic Valuation

indicator will set the

valuation date as the

billing document date

57

SAP S/4HANA Finance: Detailing of Cost of Goods Sold Accounts

• New Configuration for Cost of Goods Sold Postings

• Create sub accounts per cost component

58

SAP S/4HANA Finance: Split of Cost of Goods Sold Based on Weighting of Standard Cost Components

• Delivery Document (quantity x price) posted as normal

• Cost Estimate for material selected

• New accounts updated in accordance with split

• CO document includes fix/variable split

59

What We’ll Cover







• Wrap-Up

60

SAP Reorganization Plan Provides a Unique and Complete View of the Reorganization Process

* * Make Detailed

Decisions Report Results

Monitors Status,

Triggers

Automated Steps

Management

Decision:

Corporate

Reorganization

Corporate Management (CEO)

Defines

Reorganization

Plan

Central Controller Central Controller Central Controller

Plant Manager

Sales Manager

Cost Accountant

Accountant

Business Value

• Provides a single point of entry for

defining, triggering, monitoring, and

reporting on a reorganization plan

Customer business challenges

• Break down a management decision to

reorganize into a well-defined reorganization

plan

• Align all related parties, identify their specific

responsibilities; initiate and monitor all

necessary activities

• Provide the database for audit trail

61

Reorganization Plan — Detail

• Reorganization uses a reorganization plan

to provide a central framework for the

reorganization

• The reorganization plan describes what profit

centers are to be reorganized

• It then takes account of the derivation logic in

Profit Center Accounting to determine which

objects are affected by the reorganization

• It provides executable programs that select and

update the new profit center assignment

together with detailed logs of the steps

performed

62

System Prerequisites for a Reorganization

You have assigned the Profit Center Update scenario to the relevant ledgers

In cases requiring a balance to be corrected in a specific ledger, at least one document is created for each ledger

The objects to be reorganized already have a profit center assignment

If you want to reorganize the GR/IR clearing account as well as receivables and payables, you need to have document splitting

63

System Prerequisites for a Reorganization (cont.)

• If you want to reorganize fixed assets, the following prerequisites must be met:

You have activated segment reporting for fixed assets in Customizing for

Asset Accounting

You have activated the account assignment objects Profit Center and Segment

You have set the Acct Assignment Object Same in Asset Master and Posting indicator

for both the profit center and the segment

You have filled the master data for segment reporting in Customizing for

Asset Accounting

64

Organizational Prerequisites for a Reorganization

• The reorganization date is always the first day of the posting period of the leading ledger

• There can only be one profit center reorganization per reorganization date and per

controlling area

• Before you can start the reassignment and the transfers, the closing operations of the

previous period need to have been completed

65

Organizational Prerequisites for a Reorganization (cont.)

• Before you start the reassignment, the posting periods preceding the reorganization

period must be closed

• During the transfer, postings must not be made to objects included in the reorganization

• You cannot make any future postings and settlements that fall after the scheduled

reorganization date

Specify a date that falls in the future as the reorganization date!

66

Activate Business Functions for Reorganization

• Go to the transaction SFW5

Activate the following business functions:

67

Activate Reorganization Plan Type

• SPRO Financial Accounting (New) General Ledger Accounting (New)

Reorganization Basic Settings Activate Reorganization Plan Type

• Once you activate the Profit Center plan type, it can then be used in other

Customizing activities

68

Define Reorganization Document Type


Reorganization Basic Settings Define Reorganization Document Type

• Specify the document type used in the reorganization for transferring balances and

assign it to the Plan Type

It is advisable to use a document type that is not currently used for transaction

postings

69

Define Transaction Types for Transfer Postings


Reorganization Basic Settings Define Transaction Types for

Reorganization Transfer Postings

• Specify the consolidation transaction type for acquisition and retirement and assign it to

the Plan Type

These transaction types should be set up in the “Preparation for Consolidation”

configuration settings

70

Specifying Restriction Characteristics for Plan Type


Reorganization Basic Settings Restriction Characteristics Specify

Restriction Characteristics for Reorganization Plan Type

• This is used to restrict the characteristics used in a reorganization plan

Specify which restriction characteristics are available in the General Restrictions tab

page for the definition of a reorganization plan

71

Specifying Restriction Characteristics for Object Type


Reorganization Basic Settings Restriction Characteristics Specify

Restriction Characteristics for Reorganization Object Type

• This is used to restrict the characteristics used in a reorganization plan

Specify which restriction characteristics are available in the Specific Restrictions tab

page for the definition of a reorganization plan

72

Specific Settings of Profit Center Reorganization

Sales Documents

• Specify Periods for Sales Document Selection

Work in Process

• Exclude Results Analysis Categories for Determining Balances of Cost Objects

Fixed Assets

• Activate Reorganization of Fixed Assets

• Check Profit Center Assignment in Asset Master Records

73

Create Reorganization Plan

• Go to transaction FAGL_RPLAN

Enter the

Reorganization Plan

name and description

Enter the

Reorganization Date

as the first date of a

future period

The reorganization Plan can be accessed and processed via

the SAP Business Client or SAP Enterprise Portal

74

Create Reorganization Plan (cont.)

• Click on the “Restrictions” tab

• Enter the Controlling Area, Company Code, and other characteristics (if necessary) to

restrict the selection criteria for objects that you wish to reorganize

75

Create Reorganization Plan (cont.)

• Click on the “Packages” tab

• Enter a Reorganization Package and a Package Name and assign it to a Package Type

In the ERP system, the only Package Type that exists is

“Material/Plant”

76

Change Reorganization Package

• Go to transaction FAGL_RPACK Enter the

Reorganization Plan and

the Reorganization

Package

77

Change Reorganization Package (cont.)

• Click on the “Restrictions” tab

Enter the Company

Code and the Profit

Center(s) to be

changed

78

Generate Object List

• Click on the “Objects” tab

• Click on the button

All Materials with

the profit centers

specified are

displayed

79

Update Account Assignments for Reorganization Plan

• You can change all the selected objects to the new profit center by clicking on

and choosing the “Select All” option

• Then click on and choose the “Set New Account Assignment” option

• Then enter the new profit center in the ensuing pop-up box

80

Update Account Assignments for Reorganization Plan (cont.)

• The new profit center is then updated for all the objects selected

You can also enter a different profit center in each line of the

selected objects

81

Classifying Objects as Relevant

• Click on the button again and choose the “Classify as Relevant” option

• All objects will now be classified as “Relevant”

82

Setting Reorganization Status as Complete

• Click on the button

• You will get the below message in a pop-up box

• Click on the button to get the message below

83

Creating a Snapshot of a Reorganization Plan

• By creating a snapshot, the system determines the current inventory for all material-plant

combinations of the package that are to be reorganized and saves this data

Enter the reorganization Plan and Reorganization Package and Execute the transaction

You can do this using Transaction FAGL_RPACK

84

Changing the Account Assignment

• You can change the account assignments for a package of a reorganization plan

The system changes the profit center for all material-plant combinations classified

as relevant

You can do this using Transaction FAGL_RREASSIGN_MD

85

Transferring the Balances of a Reorganization Package

• You can perform transfer postings for a package of a reorganization plan

The system performs the transfer from the source profit center to the target profit

center for all objects in the package

You can do this using Transaction FAGL_RREASSIGN_MD

86

What We’ll Cover







• Wrap-Up

87

Reasons for Drilldown Reports in SAP General Ledger • SAP General Ledger has various dimensions that can be reported on, such as profit

center, segment, functional area, etc.

• It has a “cube-like” structure similar to CO-PA as it contains several mini-ledgers (called

scenarios) in one main ledger

• You therefore need a report that is flexible enough to sort by different characteristics, and

combinations of characteristics (e.g., by G/L accounts and profit centers)

• Classical reports do not have the functionality for multi-dimensional reporting

88

Creating a Drilldown Report • The first step is to create a form, which defines the layout of the report, such as the key

figures for the rows and columns

• You can also include

additional characteristics in

each row and column which

will distinguish the values

reported by certain categories

such as “plan vs. actual,”

“Month1 vs Month2,” etc.

Source: SAP

89

Creating a Drilldown Report (cont.)

• To define a form for an SAP General Ledger drilldown report, you need to go to the

following configuration menu path:

Financial Accounting (New) General Ledger Accounting (New) Information

System Drilldown Reports (G/L Account) Form Specify Form

• To define a SAP General Ledger drilldown report, you need to go to the following

configuration menu path:

Financial Accounting (New) General Ledger Accounting (New) Information

System Drilldown Reports (G/L Account) Report Define Report

90

Creating a Drilldown Report (cont.)

Enter the form that you

want the report to be

based on

Make sure that you select

the report type based on

the SAP General Ledger

totals table “FAGLFLKEXT”

It is much easier to copy a form/report that already exists and

modify it than create one from scratch

91

Using Drilldown Reports • With drilldown reports you can choose

to display the data by different

dimensions, which are shown in the

“Navigation” section of the screen

• Simply click on the relevant

characteristic so that it is displayed on

the right of the screen

92

Viewing and Using a List of Drilldown Reports • You can display the list of SAP General Ledger reports that you want to execute by going

to transaction FGI0

• You can give this transaction

to the relevant users or

create a custom transaction

for each report (by using

transaction SE93)

93

Drilldowns Using Virtual Info Providers

UI: Analysis for Microsoft Office

Transact Analyze

ETL

Report via:

BW Query

ERP Table Structures

CE1 table (transactions)

CE4 table (dimensions)

Virtual InfoProvider

(Create using

transaction KEIP)

94

SAP S/4HANA Finance: Income Statement with Drilldown

95

Income Statement with Drilldown to Cost Center

96

Income Statement with Drilldown to Material Group

97

What We’ll Cover







• Wrap-Up

98

Types of Summarized Analysis Reports

• Product Drilldown reports

Configuration

Product groups

Data collection

Run reports

• Summarization hierarchy reports

Configuration

Selection status profile

Data collection

Run reports

Alternate summarization hierarchies

99

Product Drilldown Reports

• Product Drilldown reports allow you to slice and dice data based on characteristics,

such as:

Product group

Material

Plant

Cost component

Period

• You can easily navigate between characteristics and drill down to lower-level

characteristics

• Use predefined summarization levels

You don’t have to define summarization levels

Predefined summarization levels work for most companies

100

Product Drilldown Reports: Configuration

• You can run Product Drilldown reports without configuration

Its only purpose is to utilize one of the following groups:

1 Product Hierarchy

2 Material Group

3 CO Product Group

• Transaction OKY0

IMG

Controlling

Product Cost Controlling

Cost Object Controlling

Information System

Control Parameters

101

Product Drilldown Reports: Product Groups

• CO product groups allow you to define your own hierarchy

You can assign materials to your hierarchy

Easiest to use existing material groups and

product hierarchy

• Transaction KKC7

Accounting Controlling



Product Cost by Period

Information System Tools

Summarized Analysis: Preparation

Product Group Create

102

Product Drilldown Reports: Data Collection

• You populate the Product Drilldown dataset during data collection

• Transaction KKRV






Data Collection

For Product Drilldown

• You normally run data collection following period-end closing for the current and

previous period

Since data can change within open financial periods

103

Product Drilldown Reports: Run Reports

• Following data collection you run Product Drilldown reports

• Transaction S_ALR_87013139





Information System

Reports for Product Cost by Period

Summarized Analysis

With Product Drilldown

Variance Analysis

Target, Actual, Production Variances

104

Product Drilldown Reports: Report Analysis

• Each line represents a material

• Variance column below is sorted in descending order

• Provides visibility to materials with largest accumulated variance

• Drill down on any line to find more details by:

Period/year

Cost component

• You can analyze variance per material further by displaying details of the manufacturing

order with Transaction KKBC_PKO

105

Summarization Hierarchy Report

• Summarization hierarchies allow you flexibility in displaying data

A summarization hierarchy groups together manufacturing orders at the lowest-level

summarization nodes

The nodes are in turn grouped together at higher-level nodes

Creates a pyramid structure

• Each summarization level is set up manually in configuration

Hierarchy levels are expandable and collapsible rows in reports

• Example of hierarchy levels starting at top of pyramid:

Controlling area

Profit center

Plant

Material group

106

Summarization Hierarchy Report: Configuration — Object Types

• Transaction KKR0

IMG Controlling Product Cost Controlling Information System Cost Object

Controlling Settings for Summarized Analysis/Order Selection Maintain

Summarization Hierarchy

• Select an existing hierarchy and double-click Data Scope

107

Summarization Hierarchy Report: Configuration — Hierarchy Levels

• You specify which object types are summarized in the hierarchy

The Description in the selected row indicates the object types

• Double-click Hierarchy levels to display hierarchy level details

The system requires Controlling Area as the top hierarchy level

108

Summarization Hierarchy Report: Selection Status Profile

• Transaction BS42

IMG Controlling Product Cost Controlling Information System Cost Object

Controlling Settings for Summarized Analysis/Order Selection Define Status

Selection Profiles

• This screen shows the existing selection profiles and allows you to define new

selection profiles

• Selection status profiles allow you to select orders based on order status

109

Summarization Hierarchy Report: Selection Status Profile (cont.)

• Select an existing selection profile, and double-click on Selection conditions on the left to

display profile details

• This example results in the selection of orders with a status of:

Confirmed

Delivered

Not technically completed

110

Summarization Hierarchy Report: Data Collection

• You populate the summarization hierarchy dataset: data collection

• Transaction KKRC






Data Collection

For Summarization Hierarchy

• You normally run data collection following period-end closing for the current and

previous period

Since data can change within open financial periods

111

Summarization Hierarchy Report: Run Report

• Following data collection you run summarization reports

• Transaction KKBC_HOE




Product Cost by Order

Information System

Reports for Product Cost by Order

Summarized Analysis

With Defined Summarization Hierarchy

• You can run the report with:

Cumulated period range to display all costs

Limited period range to improve performance

112

Summarization Hierarchy Report: Report Analysis

• The hierarchy levels we defined in configuration are displayed:

Plant (0021), Order type (RM01 and ZP01)

• To display Target, Actual, and Variance columns, choose:

Settings Layout Choose

Actual debit for all orders of order type is 3,317.24

113

Summarization Hierarchy Report: Single Objects

• To see details of orders reporting to node RM01 click the node

Choose from the menu bar: Goto Single Objects

• Variance column is sorted in descending order

This provides visibility to orders with large variances

An advantage of the single objects report is that it is presented in the

user-friendly ALV (ABAP list viewer) format, which allows you to easily

sort, sum, and filter values, as well as rearrange columns

114

Summarization Hierarchy Report: Alternate Summarization Hierarchies

• Summarization reporting allows you to create multiple hierarchies

• Previously, we chose plant and order type as hierarchy levels

You can create hierarchies with an additional level of order and see the details directly

in the results screen

Long runtimes can occur if order number is set as a hierarchy level

115

SAP S/4HANA Finance: Order and Project Hierarchies Aggregated on the Fly

Define characteristics for

aggregation as before

(Transaction KKR0)

No need to run data

collection run to create

summarization objects

Simply select your

hierarchy or hierarchy

node and analyze the

aggregated values

Summarization

116

What We’ll Cover







• Wrap-Up

117

Where to Find More Information

• Paul Ovigele, 100 Things You Should Know About Financial Accounting

with SAP (Quincy, MA: SAP PRESS, 2011).

Provides little-known tips to optimize the Financial Accounting module

• ovigele.com/blog/

Contains tips and tricks on how to optimize the Controlling Module

• John Jordan, Product Cost Controlling with SAP, Second Edition (Quincy, MA: SAP

PRESS, 2012).

ISBN-10: 1-59229-399-5 (978-1-59229-399-5)

www.sap-press.com/products/Product-Cost-Controlling-with-SAP-%282nd-

Edition%29.html

http://www.ovigele.com/blog/

http://www.sap-press.com/products/Product-Cost-Controlling-with-SAP-(2nd-Edition).html















118

Where to Find More Information (cont.)

• Paul Ovigele, Reconciling SAP CO-PA to the General Ledger (Espresso Tutorials, 2014).

www.espresso-tutorials.com/?page_id=99

Provides little-known tips to reconcile CO-PA to the General Ledger

http://www.espresso-tutorials.com/?page_id=99



119


• Janet Salmon, “Controlling with SAP – Practical Guide” (2014).

ISBN 978-1-4932-1012-1

www.sap-press.com/controlling-with-sap-practical-guide_3625/

Provides general information on Controlling processes

• Janet Salmon and Ulrich Schlüter, SAP HANA for ERP Financials, Second Edition

(CreateSpace Independent Publishing Platform, 2014).

www.amazon.com/SAP-HANA-ERP-Financials-2nd-ebook/dp/B00OJDJHMQ/

ref=sr_1_1?ie=UTF8&qid=1419240780&sr=8-1&keywords=janet+salmon

Explains how SAP HANA works in the context of Finance

http://www.sap-press.com/controlling-with-sap-practical-guide_3625/











http://www.amazon.com/Controlling-SAP-Practical-Janet-Salmon/dp/1493210122/ref=sr_1_2?ie=UTF8&qid=1419240780&sr=8-2&keywords=janet+salmon

http://www.amazon.com/SAP-HANA-ERP-Financials-2nd-ebook/dp/B00OJDJHMQ/ref=sr_1_1?ie=UTF8&qid=1419240780&sr=8-1&keywords=janet+salmon















120


• Jens Krüger, SAP Simple Finance (Quincy, MA: SAP PRESS, 2015).

www.sap-press.com/sap-simple-finance_3793/

Introduces SAP’s new flagship product

https://www.sap-press.com/sap-simple-finance_3793/







121

Where to Find More Information — Key SAP Notes for SAP S/4HANA Finance (Formerly SAP Simple Finance)

• Release Information Note: 2117481 *

• Released Processes, Enterprise Extensions, Industry Solutions!: 2119188 *

• Released SAP Add-Ons: 2103558 *

• Released Partner Add-Ons: 2100133 *

• Availability of Country Versions: 2153644 *

• Release Restrictions: 2127080 *

* Requires login credentials to the SAP Service Marketplace

http://service.sap.com/sap/support/notes/2117481






122

Where to Find More Information

• Janet Salmon, “Profit Center Reorganization Is a Snap with New Functions in Enhancement Package 5”

(Financials Expert, August 2009).

http://sapexperts.wispubs.com/Financials/Articles/Profit-Center-Reorganization-Is-a-Snap-with-New-

Functions-in-Enhancement-Package-5?id=FB05F764BE994329AFEC7E436B50639B#.VMJ69kfF-y4

• Janet Salmon, “SAP Simple Finance: New Options in Profitability Analysis” (Financials Expert,

December 2014).

http://sapexperts.wispubs.com/Financials/Articles/SAP-Simple-Finance-New-Options-in-Profitability-

Analysis?id=E50C2DC3AB7F49338918823FCD43E871#.VK_UwyvF-y4

• Janet Salmon, “SAP Simple Finance: What Happened to the Cost Elements?” (Financials Expert,

October 2015).

http://sapexperts.wispubs.com/Financials/Articles/SAP-Simple-Finance-What-Happened-to-the-Cost-

Elements?id=85A791FA17CC47E89EFE90628B8908F2#.VpO0evkrKM8

http://sapexperts.wispubs.com/Financials/Articles/Profit-Center-Reorganization-Is-a-Snap-with-New-Functions-in-Enhancement-Package-5?id=FB05F764BE994329AFEC7E436B50639B.VMJ69kfF-y4



























http://sapexperts.wispubs.com/Financials/Articles/SAP-Simple-Finance-New-Options-in-Profitability-Analysis?id=E50C2DC3AB7F49338918823FCD43E871.VK_UwyvF-y4

















http://sapexperts.wispubs.com/Financials/Articles/SAP-Simple-Finance-What-Happened-to-the-Cost-Elements?id=85A791FA17CC47E89EFE90628B8908F2.VpO0evkrKM8


















123

Additional Sessions to Consider Attending

• SAP S/4HANA Finance: Map out your project and build a business case that maximizes

ROI by David Dixon, TruQua Enterprises

• Making it all work: A deep dive into the central finance deployment option

by David Dixon, TruQua Enterprises

• Calculating actual costs, transfer prices, and parallel valuations with material ledger

by Paul Ovigele, ERPfixers

124

7 Key Points to Take Home

• You can configure a “Shipped not Billed” scenario in order to deal with the timing issue

between the cost of sales account in the general ledger and CO-PA

• You can perform parallel accounting by running several parallel ledgers for different

accounting principles

• If your profit center structure changes, you can adjust your data

• SAP General Ledger has various dimensions that can be reported on using

drilldown reporting

• Summarization and production order reports allow you to analyze production data

collectively for plants

• SAP is revisiting the account-based CO-PA approach within SAP S/4HANA Finance

• SAP S/4HANA Finance provides new multi-dimensional reporting based on a new data

structure for the journal entry

125

Your Turn!

How to contact us:

Paul Ovigele

Email: [email protected]

Twitter: @erpfixers

Janet Salmon

Email: [email protected]

Please remember to complete your session evaluation

126

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