“Management Accounting” Table of Contents Index The Authors · 4 Management Accounting 124 Figure 4.1 shows the Universal Journal (table ACDOCA), which merges controlling data

Browse the BookThis chapter details management accounting in SAP S/4HANA, including the architecture, key SAP Fiori apps, and functionality. We‘ll break down management accounting by module to provide a comprehensive view of controlling in SAP S/4HANA.

Maunil Mehta, Usman Aijaz, Tanya Duncan, Sam Parikh

SAP S/4HANA Finance: An Introduction397 Pages, 2019, $79.95 ISBN 978-1-4932-1778-6

www.sap-press.com/4784

First-hand knowledge.

“Management Accounting”

Table of Contents

Index

The Authors

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123

4

Chapter 4

Management Accounting

This chapter details the changes made to management accounting

in SAP S/4HANA, including architectural changes, key SAP Fiori apps,

and functionality enhancements. We will break down management

accounting by sub-module, covering a comprehensive view of

controlling in SAP S/4HANA.

Management accounting refers to internal reporting that supports management

decision-making. This is different from financial accounting, which refers to external

accounting. Management accounting is represented in SAP within the controlling

(CO) module, and encompasses cost element accounting, overhead cost controlling,

product cost controlling, and profitability analysis.

SAP S/4HANA introduces a number of simplifications and enhanced features to man-

agement accounting, thereby improving your management reporting capabilities.

Most significant is the integration between FI and CO with the Universal Journal

(introduced in Chapter 2), which creates consistency across internal and external

reporting. This chapter details the changes across the sub-modules in controlling in

SAP S/4HANA.

Here is a summary of the impact SAP S/4HANA has on management accounting:

� Unified master data maintenance across FI and CO (internal and external account-

ing is in sync) with the integration of cost elements as general ledger accounts

� CO allocations are now a single allocation across FI and CO, including cost center,

profit center, cross-company postings, and customer fields

� Flexible hierarchies enabled for profit center and cost center hierarchies

� Cost of goods sold, work in process, variance analysis reporting enhanced

� Enhanced inventory reporting with the material ledger

� Market segment reporting provided within profitability analysis

4 Management Accounting

124

Figure 4.1 shows the Universal Journal (table ACDOCA), which merges controlling

data across cost center accounting, profit center accounting, profitability analysis,

materials management, and order management.

Figure 4.1 Universal Journal (Table ACDOCA)

4.1 Cost Element Accounting

Cost element accounting refers to the internal management reporting of costs and

revenue during direct postings, allocations, settlements, and distributions. A cost ele-

ment is a term used to describe general ledger accounts that are part of the profit and

loss financial statement. While not required, generally profit and loss accounts in

financial accounting have an associated cost element in controlling. There are several

key changes in cost element master data in SAP S/4HANA that enable the enhanced

reporting across financial and management accounting with the Universal Journal,

which are described in this section.

4.1.1 Primary and Secondary Cost Elements

There are two key types of cost element master data:

� Primary cost elements refer to costs and revenues that are directly posted to via a

general ledger account posting, whether manual or automated, in a business pro-

Universal Journal Table (ACDOCA)

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cess. This could include cost of goods sold and sales revenue posted during a sales

transaction with a customer, or a marketing expense recorded when a purchase

order goods receipt is posted.

� Secondary cost elements refer to costs and revenues that result from value flows

within an organization, for example, allocations and settlements.

Prior to SAP S/4HANA, cost elements were maintained as separate master data from

general ledger accounts. Primary cost elements were created 1:1 with the respective

general ledger account. Secondary costs elements were not directly associated to

general ledger accounts and were mapped in configuration to general ledger

accounts. Often SAP customers chose to map multiple secondary cost elements to a

single general ledger account. This created a dependency on management reports

based on cost elements separate from financial statement reports (FI-based) using

general ledger accounts in order to analyze internal value flows.

In SAP S/4HANA, primary and secondary cost element master data merges into the

chart of accounts, with cost elements defined as general ledger accounts, reducing

dual maintenance issues. Rather than creating cost elements separately and then

linking them via configuration to map to a CO-FI reconciliation account in the gen-

eral ledger, cost elements are simply created as primary costs or revenue, or as sec-

ondary cost (general ledger accounts). The general ledger account master data

contains settings to indicate the type of cost element.

4.1.2 General Ledger Account Types

When creating general ledger account master data, you select an account type that

indicates the type of balance sheet or profit and loss account. The account type desig-

nation drives the general ledger account use based on configuration settings, includ-

ing whether a general ledger account can be represented as a cost element.

There are four general ledger account types in SAP S/4HANA:

� Balance sheet accounts

� Non-operating expenses/revenues

� Primary cost elements

� Secondary cost elements

As shown in Figure 4.2, SAP S/4HANA adds a new general ledger account type for sec-

ondary cost elements.


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Figure 4.2 General Ledger Account Type for Secondary Costs

4.1.3 Profit and Loss Account Types

Specific to the profit and loss financial statement, non-operating expenses/revenues

and primary and secondary cost element general ledger account types are further

broken out by profit and loss account types in general ledger master data.

SAP S/4HANA defines profit and loss (P&L) general ledger accounts in three ways:

� P&L accounts with no reference to CO (no associated cost element)

� P&L accounts for postings to cost centers, orders, projects, CO-PA dimensions, and

so on (formerly primary cost elements)

� P&L accounts to document cost flows from senders to receivers (formerly second-

ary cost elements)

Further, there is now controlling-specific settings within the Control Data tab in gen-

eral ledger account master data. It is on this tab where the cost element category is

maintained, similar to the cost element categories within the separate cost element

master data that once existed. This is shown in Figure 4.3.

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Figure 4.3 Cost Element Category Within General Ledger Account Master Data

The classification of primary and secondary cost elements as general ledger accounts

has several impacts:

� Secondary cost elements now appear in general ledger reports

� Secondary cost elements always balance to zero

� Default account assignments previously maintained in cost element master data

are now maintained in configuration in default account assignment (Transaction

OKB9)

� Time dependency for cost elements no longer exists

� Cost element attribute mix no longer exists

� Cost element groups still exist, but cost element master data transactions (KA01,

KA02, KA03, KA06) no longer exist

Definition of Secondary Cost Elements/General Ledger Accounts

When defining secondary cost elements as general ledger accounts, consider compro-

mising on the level of detail to ensure the chart of accounts is not expanded unneces-

sarily. Especially if you are converting from another SAP system to SAP S/4HANA,

rationalize the needs of both internal and external reporting to find a compromise

rather than simply mapping secondary cost elements to general ledger accounts.


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Role Considerations for Cost Elements

Merging FI and CO reporting and cost element master data within the chart of

accounts may require changes to master data approvals within your organization.

Ensure that users have authorization to general ledger accounts and cost elements if

they will maintain primary or secondary cost elements. Additionally, there are impli-

cations to the CO business transactions maintained in Transaction OKP1. Ensure that

postings are allowed for general ledger accounts and their respective CO business

transactions.

As discussed throughout this section, cost element master data has been affected by

the merge of financial and management accounting. Cost element master data is

now part of the chart of accounts represented as general ledger accounts, enabling a

single master data element for reporting at the general ledger account/cost element

level. The changes to cost element accounting have impact on controlling processes

including overhead cost controlling, product costing, material ledger/actual costing,

profitability analysis, and reporting. Section 4.2 discusses overhead cost controlling

processes highlighting changes in SAP S/4HANA including the impact of cost ele-

ment master data changes.

4.2 Overhead Cost Controlling

Overhead cost controlling deals with planning, allocating, controlling and monitor-

ing overhead costs. Overhead costs are typically collected in cost centers. Through

appropriate allocation processes these costs are then allocated out to receivers. At the

end of the period, the planned overhead costs can be compared against the actuals

for target/actual variance analysis. With the merge of FI and CO in SAP S/4HANA,

there are a number of changes in overhead cost controlling.

4.2.1 Cost Allocations

As discussed in Section 4.1, cost element accounting, primary and secondary cost ele-

ments are now defined as general ledger account master data in the chart of

accounts. This enables the integration of financial accounting and management

accounting with the Universal Journal concept. This single source of truth for finan-

cial reporting impacts how cost allocations are performed and reported.

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In order to achieve management reporting that aligns expenses with the appropriate

cost object, costs are allocated between cost objects based on percentages, fixed

amounts, or statistical key figures. Secondary cost elements are used to facilitate cost

allocations. The sender cost object is debited with a secondary cost element and the

receiver is credited with a secondary cost element.

An example of cost allocations is the allocation of an indirect overhead expense like

warehouse expenses. Warehouse expenses may be captured at an overhead cost cen-

ter and can be allocated to the corresponding product line cost centers or profit cen-

ters on the basis of units shipped. Units shipped is referred to as a statistical key

figure.

In S/4HANA, CO allocations are now a single allocation across FI and CO. This is a fur-

ther example of the universal journal concept where financial and management

reporting are merged. CO allocations previously required the mapping of secondary

cost elements to a general ledger account in order to reflect the CO allocation within

FI. Now, in SAP S/4HANA, cost elements are part of the chart of accounts and there-

fore do not need to be mapped to general ledger accounts.

An additional change in SAP S/4HANA is the data provided in the allocation posting.

CO allocations now include partner profit center, functional areas, and customer

fields.

Table 4.1 depicts the key differences between CO allocations in SAP ERP 6.0 versus

SAP S/4HANA when considering secondary cost elements, FI-CO reconciliation, and

currency impacts.

Change SAP ERP 6.0 SAP S/4HANA

Secondary cost

elements

� Secondary cost elements are

mapped to a single general

ledger account within the

chart of accounts.

� Reporting on secondary cost

elements must be done in

CO reports.


now part of the chart of

accounts, and therefor FI-CO

reconciliation is no longer

required.

� Reporting on secondary cost

elements can be done in

general ledger reporting.

� CO is part of the Universal

Journal concept in SAP

S/4HANA.

Table 4.1 CO Allocation Changes in SAP S/4HANA


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4.2.2 Internal Orders

There is often a need for costs and revenues to be planned, collected, and settled at a

dimension other than cost center. While cost centers provide a mechanism for

reporting departmental expenses over the long term, internal orders are ideal for

shorter-term, simple projects.

Internal orders are cost objects in controlling that can be used for the purpose of

management reporting on expenses and revenues for basic internal projects. Exam-

ples of internal orders include marketing projects like tradeshows or capital projects

like system implementations. Internal orders can be contrasted with work break-

down structure (WBS) elements, part of the project system module in SAP ERP. While

internal orders are single-dimensional cost objects that can be grouped with internal

order groups, WBS elements have a project/network structure that can be repre-

sented as a hierarchy.

The Internal Orders app, shown in Figure 4.4, provides an overall view of internal

order master data, including links to navigate to relevant data such as customer,

profit center, fixed asset, and WBS element. This app provides significant benefit in

that it provides navigation links to quickly retrieve information about the internal

order.

FI-CO reconciliation � Standard FI-CO reconcilia-

tion process without FI and

CO documents logically tied

together.


mapped to a single general

ledger account within the

chart of accounts.

� With the Universal Journal

concept, financial account-

ing and controlling are con-

tinually being reconciled.

Additional upgrades � Local and global currency. � Local and global currency,

plus freely defined curren-

cies defined within the gen-

eral ledger.

Change SAP ERP 6.0 SAP S/4HANA

Table 4.1 CO Allocation Changes in SAP S/4HANA (Cont.)

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Figure 4.4 Internal Orders

4.2.3 Project Cost Reporting

Projects are a cost object available for reporting on complex projects. As discussed in

the previous section, projects are in contrast to internal orders as they provide a task

oriented, hierarchical structure for reporting on internal or customer-facing project

expense and revenue. WBS elements are often more appropriate for complex inter-

nal projects with tasks and timelines. Examples include internal projects like R&D for

a new product line, or customer-facing projects like servicing customer equipment

based on scheduled maintenance.

The Project Costs Report – Line Item app, shown in Figure 4.5, provides a means of

monitoring project costs for WBS elements and of comparing plan and actual cost

data. The app enables filtering and drill-down, including navigation to specific jour-

nal entries to further analyze costs. An overview version of the app exists as well, pro-

viding a summarized view of the same data. This line item reporting capability is an


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improvement over pre-SAP S/4HANA reporting as its drill-down capability permits

easy navigation to source transactions down to the journal entry level.

Figure 4.5 Project Cost Report – Line Item

4.2.4 Flexible Hierarchies

A new concept introduced in SAP S/4HANA is the ability to more flexibly maintain

profit center and cost center hierarchies. Maintenance of cost center and profit cen-

ter hierarchies is burdensome for many organizations, as the hierarchy levels are

maintained manually and not necessarily representative of a specific data element.

Flexible hierarchies offer the ability to build cost center and profit center hierarchies

using attributes on the associated master data.

Let's explore an example including flexible hierarchies. If cost centers are to be rolled

up using geographical dimensions like city, region, or country, then these three

dimensions on cost center master data could be used to represent these three levels

of the cost center hierarchy.

The Manage Flexible Hierarchies app, shown in Figure 4.6, provides a means of deter-

mining the structure of hierarchy levels using existing fields on cost center or profit

center master data. The fields provided in the app are standard, but they can be

amended with customer-specific details on cost center or profit center master data.

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4.3 Product Cost Controlling

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Figure 4.6 Flexible Hierarchy Maintenance

In this section on overhead cost controlling, we provided an overview of the key

changes in SAP S/4HANA to cost elements, internal order reporting, project cost

reporting, and introduced flexible hierarchies. The impacts of the Universal Journal

merging controlling and financial accounting were outlined as it relates to overhead

cost controlling. Finally, we described several new SAP Fiori apps that provide benefi-

cial drill-down reporting capabilities in SAP S/4HANA. The next chapter discusses the

key changes in SAP S/4HANA in the area of product cost controlling.


Product cost controlling details with the analysis of planning costs for new products

for each component including fixed and variable costs. Cost controlling starts from

the inception when the product is in the design phase and continues through the

entire lifecycle of the product all the way to its manufacturing.

The key improvements to product cost controlling in SAP S/4HANA include:

� Costing run enhancements

� Production cost analysis enhancements

� Cost of goods sold split by standard or actual cost component split

� Work in process analysis


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� Production variances split by variance category

� New SAP Fiori apps for material valuation, material price analysis, and production

cost analysis

4.3.1 Product Cost Controlling Process

Product cost controlling is used to calculate the internal cost of materials repre-

sented as inventory on the balance sheet and cost of goods sold on the profit and loss

statement, used in profitability analysis. Product costs are also used in comparing

target versus actual costs during production variance analysis.

Costs are planned prior to the next period or year as part of the monthly or annual

costing process. Activity type rates are the mechanism for valuing internal activities

to produce products (like production labor). Activity type rates can be manually

entered (if rates are known or calculated elsewhere) or calculated based on planned

expenses and quantities.

Once activity rates are calculated, costs are calculated in a costing run. Product costs

are calculated based on the materials specified on the bill of material (BOM) and rout-

ing (in discrete manufacturing) or a master recipe (in process manufacturing). The

material component of product cost is based on the material quantities specified in

the BOM, multiplied by the standard or moving average price of the component

materials. The activity component of product cost is based on the activity quantities

specified in the routing or master recipe multiplied by the activity rate entered or cal-

culated for the period.

Additional costs can be included in the product cost using a costing sheet configured

with rates or dollar amounts based on an overhead key, or with additive costs applied

manually by material and plant.

Within a routing or master recipe, the production activities are broken out by the

physical location where the work occurs. A work center (in a routing) or resource (in

a master recipe) identifies a machine or work area where a production process is per-

formed. Repetitive manufacturing uses rate routings to specify production activities

and product cost collectors to capture costs. Product cost collectors are created per

production version and track costs per period rather than per order.

Production versions indicate a combination of a BOM and routing or master recipe

required to produce a material since there may be multiple ways to produce a mate-

rial. The most common production scenario should be the first production version.

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Unless otherwise specified, the first production version is used in product costing.

Production versions can be used in discrete, repetitive, and process manufacturing.

At period-end, work in process, variance, and settlement are calculated. Variances

between actual and target costs may result in changes to product costs for subse-

quent periods. Costs on orders are settled and the financial and material period is

closed during period-end close to restrict material movements and accounting post-

ings in the prior period.

SAP S/4HANA enhances product cost controlling processes and reporting by provid-

ing additional insight into inventory valuation, cost of goods sold, work in process,

and production variances. This section will highlight these additional capabilities, as

well as SAP Fiori apps that demonstrate the enhanced reporting for product cost con-

trolling.

4.3.2 Costing Run Enhancements

On an annual or monthly basis, materials are costed in a costing run. The Costing Run

app is used to execute costing runs, analyze results, and mark and release costs. The

costing run must be created using a costing variant, costing version, controlling area,

company code, and transfer control. Therefore, a costing run can only be created for

one company code at a time. The costing run is also created for a particular date

range.

The costing run contains five steps:

1. Selecting

Parameters are entered which indicate which materials should be costed and

selected materials are exploded to pick up component materials from BOMs.

2. Costing

Materials selected from the previous step are costed based on their BOM and rout-

ing or master recipe.

3. Analysis

Costing results are analyzed comparing current standards to estimated standards

and including expected inventory revaluation.

4. Marking

Costs are marked, or held, to be released.

5. Release

Costs are made current and inventory is revalued.


136

Note

In earlier versions of SAP S/4HANA, the costing run functionality of Transaction CK40N

was largely the same, just provided in an SAP Fiori application. As of SAP S/4HANA

1809, several improvements have been made to the costing run application.

The new SAP Fiori app Manage Costing Runs – Estimated Costs provides a way to

manage costing runs for mass material costing. This app allows you calculate cost

estimates, mark, and release materials across multiple plants and company codes.

This app replaces the functionality of the Edit Costing Run app and the Delete Costing

Run app.

The recurrence for costing runs allows you to recreate a costing run based on a set fre-

quency (monthly, quarterly, or annually) without manually recreating the costing

run. The recurrence feature permits you to select frequency as well as the steps that

should execute automatically. For example, you may want to process a costing run

monthly for a given set of materials in a plant, but you want the system to stop at the

analysis step. This allows a cost accountant to analyze the cost estimates, then mark

and release the cost estimates manually.

An additional improvement offered in SAP S/4HANA 1809 is the consolidation of

quantity structure explosion as part of the selection step in the costing run. Quantity

structure explosion is now triggered in the selection step using the multilevel quan-

tity structure explosion option. The quantity structure explosion feature takes the

materials selected in the selection step of the costing run and ensures the component

materials specified on the BOM are included in the costing run.

4.3.3 Cost of Goods Sold Split by Cost Component

During goods issue to a customer (PGI), cost of goods sold is posted to the general led-

ger. Cost of goods sold (COGS) can be split into multiple accounts based on cost com-

ponents during goods issue and other processes in SAP S/4HANA. This functionality

allows ease of reporting, as in many manufacturing businesses, it is required to break

up COGS by cost components, whereas prior to SAP S/4HANA, users would have to

run multiple reports to get this information.

Figure 4.7 shows the configuration for Detailed COGS Accounts, where you can indi-

cate the specific general ledger accounts for cost components.

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Figure 4.7 COGS Split Configuration

Figure 4.8 is an example of an accounting document posted with COGS split, showing

the breakout out of separate general ledger accounts by cost component.

Figure 4.8 COGS Split Posting

This functionality is further enhanced in SAP S/4HANA 1809 with cost of goods split

based on actual cost component split. Prior to SAP S/4HANA 1809, cost of goods sold


138

could be split by the cost component based on the standard cost estimate. Now, cost

of goods sold can be revalued based on the actual cost components during the reval-

uation run in the post closing step after actual costing.

The actual COGS split functionality is possible for additional processes with internal

order or project specified as the account assignment. Previously, this COGS splitting

functionality was only possible for goods movements with reference to a sales order.

4.3.4 Work In Process Analysis Improvements

At period-end, several processes must be executed to value production costs not yet

received in to inventory. When an order is still active at period-end, the cost remain-

ing on the order is considered work in process (WIP). These orders remain open

during period-end assuming further production will occur on the order in the next

period.

The system calculates WIP at target costs for product cost collectors, production

orders, and process orders. Orders must not be in status deletion flag (DLFL) or

deleted (DLT) to be included in WIP calculation.

In product cost by period (repetitive manufacturing), the quantities confirmed are

valued at target cost based on the valuation variant configured for WIP and scrap. In

product cost by order (discrete manufacturing), WIP is the difference between the

debit and credit of an order that has not been fully delivered.

In product cost by order (production orders), SAP values WIP based on the total target

debits (material issuances and activity confirmations) minus total credits (finished

inventory received in to stock). If WIP is calculated as a negative value, the system cre-

ates a reserve for unrealized costs.

WIP is calculated via Transaction KKAO or the app Calculate Work In Process – Orders –

Collective.

In SAP S/4HANA, WIP positions are now available with a higher granularity that

shows the underlying primary and secondary costs. The analysis is achieved by link-

ing general ledger WIP line items with settlement line items via the order number in

the general ledger line item.

4.3.5 Production Variances Split by Variance Category

Production variances are calculated during period-end close or production/pro-

cess order completion based on target versus actual costs. Variances can only be

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calculated after WIP is calculated on relevant orders. The system will not calculate

variances on an order classified as active (with WIP balances) since it is considered in

process. Variances are calculated based on actual debits minus actual credits minus

WIP minus scrap.

Variances are calculated via Transaction KKS2 or the app Run Variance Calculation –

Order – Single.

SAP offers variance analysis on inputs and outputs to orders. Input variances include

the following:

� Input price variance

Differences between plan and actual material and activity prices. Only calculated if

material origin is selected on material master.

� Resource-usage variance

Different materials and activities than were planned in BOMs and routings/master

recipes.

� Material quantity variance

Different material quantities issued than were planned in BOMs.

� Remaining input variance

Costs are entered without a quantity or when overhead rates are changed.

� Scrap variance

Differences between operation scrap in routing and actual scrap confirmed.

The output variances include the following:

� Mixed price variance

Caused when the system determines a different mixed cost than the released cost

estimate. Must be selected in the variance variant to see.

� Output price variance

Standard price changed between delivery to stock and when variances are calcu-

lated or moving average price materials are not delivered to stock at standard

price.

� Lot size variance

Differences between the planned and actual costs that don't vary with lot size.

� Remaining variance

Differences between target and allocated actual costs that cannot be assigned to

any other category. Also used when no variance categories defined in variance

variant.


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SAP S/4HANA offers the enhanced capability of production variance split by variance

category. With this functionality, production variances can be split into multiple

accounts based on variance categories during order settlement.

This provides significant benefit for analyzing production variances at the general

ledger level and with general ledger-based reports. Previously, variances could only

be analyzed in specific variance reports within CO.

4.3.6 Manage Material Valuations

The app Manage Material Valuations provides an overview of valuation data or mate-

rials including sales order stocks. Valuation details include quantities, prices, and

total values by currency type and period for given materials, plants, and company

codes. This app provides price history, tax and commercial prices, and standard cost

estimates, and allows you to change inventory prices and release planned prices

based on thresholds.

This app replaces the functionality of the following four apps:

� Release Planned Price Changes

� Enter Future Prices

� Change Material Costs

� Debit/Credit Inventory Values

4.3.7 Material Inventory Values – Balance Summary

Inventory valuation is based on the standard cost or current moving average price of

a product multiplied by the valuated inventory on-hand. In SAP S/4HANA, inventory

valuation is stored in the Universal Journal as journal entries are posted to the gen-

eral ledger with the integrated use of the material ledger. For that reason, inventory

valuation is directly in sync with the general ledger, and reporting on material inven-

tory values can now be retrieved at an accounting document level.

The app Material Inventory Values – Balance Summary provides balance detail on

inventory value and quantity of material inventory for a particular period using

posted journal entries. This app is a balance version of the Material Inventory Values –

Line Item app, which provides line item level detail. In the Material Inventory Values –

Line Item app, you can view inventory value and quantity by company code, general

ledger account, material group, material, business transaction type, posting date,

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document number, and many more criteria. The Material Inventory Values – Bal-

ance Summary app, shown in Figure 4.9, provides company code, plant, valuation

area, material, material group, profit center, general ledger account, segment, and

key figures like quantity and amount in the general ledger currencies.

Figure 4.9 Material Inventory Values – Balance Summary

4.3.8 Material Price Analysis

Reporting on prices at a material level with material ledger is improved in SAP

S/4HANA with the Material Price Analysis app. This app, shown in Figure 4.10,

removes the plan/actual comparison formerly in Transaction CKM3. Additionally,

there is no longer a separate view for cost components, they are instead integrated

into the main screen.

Other changes to the material price analysis include the flag for selecting cost compo-

nents not relevant for material valuation, or only cost components relevant for

material valuation. By default, selection of inventory relevant cost components is

split. Technically, data is now retrieved from tables MLDOC, MLDOCCCS, and MLDOC_

EXTRACT, and, for the material price analysis report, MLDOCCCS_EXTRACT. In addition to

the status of the materials, the status of the activity types is displayed in the Process-

ing section.


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Figure 4.10 Material Price Analysis in SAP S/4HANA

4.3.9 Production Cost Analysis

Once orders have gone through the period-end close steps of WIP, variance, and set-

tlement, production order costs are analyzed to ensure orders are fully settled and

identify root causes of large variances. Production order costs were previously ana-

lyzed in Transaction KOC4. SAP S/4HANA offers a new Production Cost Analysis app,

shown in Figure 4.11, which offers enhanced analysis capabilities at a more granular

level.

The app provides a summary and detail view of production costs for production

orders, comparing plan versus target versus actual costs. The Production Cost Analy-

sis app enables order analysis at an overall and detailed level, as well as cost compo-

nent analysis, including cost component groups. This app supports variance analysis

by including the variance categories to further analyze target versus actual variances.

One useful feature of the Production Cost Analysis app in SAP S/4HANA is the ability

to analyze production costs at an operation and work center level. Costs can also now

be planned at a work center/operation level, which enables plan/actual analysis at a

more detailed level than before. This is provided by a new planning solution available

in SAP S/4HANA 1809, using the ACDOCP table which allows planning costs for man-

ufacturing orders. This functionality supports decision-making and accountability at

a detailed responsible area level.

143

4.4 Material Ledger and Actual Costing

4

Figure 4.11 Production Cost Analysis

We've provided an overview of product cost controlling, highlighting key changes in

SAP S/4HANA, including WIP, variance analysis, and product costing reporting. Sev-

eral capabilities new to SAP S/4HANA were discussed including additional quantity

fields, cost of goods sold split, and production variance split. Finally, several new SAP

Fiori apps were described, which provide enhanced product costing reporting capa-

bilities. The next chapter outlines material ledger and actual costing in SAP S/4HANA.


Material ledger accounting refers to the ability to generate financial transactions at a

material level, providing granular detail of inventory movement. Although it's called

the material ledger, the material level detail is actually stored as part of the Universal

Journal in SAP S/4HANA.

Actual costing is an optional feature that can be activated as part of material ledger to

revalue materials at their actual cost as part of period-end close. It is important to

understand that actual costing is an element of material ledger, but requires addi-

tional transaction processing to calculate and revalue inventory based on actual

costs.

4.4.1 Material Ledger

One of the major changes in SAP S/4HANA in regard to management accounting

(inventory valuation, to be specific) is that material ledger is now obligatory in SAP


144

S/4HANA. In other words, the material ledger and finance in SAP S/4HANA provide

inventory valuation, rather than material ledger and materials management, as was

the case with prior versions. Material valuation is now stored in material ledger

tables rather than materials management tables.

This change enables dynamic material ledger reporting, which is a powerful capabil-

ity, given the technical advancements of SAP HANA data. Additionally, the material

ledger supports ad-hoc reporting capabilities with SAP Fiori, as well as with other ana-

lytics tools. Now, inventory valuation is brought into the Universal Journal, serving

as a single source of truth.

While material ledger is required, activating actual costing is still optional. SAP has

made it mandatory for material ledger to be active, but the specific use of material

ledger can still be customized to suit your business’s needs. This requirement also

does not prevent you from using either standard or moving average prices to value

your inventory. In short, price control remains unchanged.

Implications of Material Ledger in SAP S/4HANA

The fact that material ledger is now obligatory in SAP S/4HANA does not mean an

additional effort on your part in terms of implementation, period-end close, or

reporting. Rather, this activation of material ledger in SAP S/4HANA enables inven-

tory valuation reporting as part of the Universal Journal. Advanced reporting capabil-

ities are just one of the benefits. The new solution enables inventory values to be

stored in multiple currencies and, if you choose to activate multiple valuation views,

according to several parallel accounting standards. Technical benefits include the

elimination of redundant data, since local currency inventory value is stored in both

material master and material ledger tables. Additionally, this offers improved scal-

ability through optimization of the locking mechanism when material documents

are created.

There are two new material ledger document tables in SAP S/4HANA: MLDOC and

MLDOCCCS. These tables replace the following periodic tables: MLHD, MLIT, MLPP, MLPPF,

MLCR, MLCRF, MLKEPH, CKMLPP, CKMLCR, MLCD, CKMLMV003, CKMLMV004, CKMLPPWIP, and CKMLKEPH.

4.4.2 Transfer Pricing and Multiple Valuation Approaches

Transfer prices allow organizations to value goods and services exchanged between

different organizational units within the corporation. By valuing the exchange of

145


4

goods and services using transfer prices, you can significantly influence the actual

success of your corporate divisions or profit centers.

For example, when company code A sells raw materials to company code B, company

B pays company A a transfer price. This transfer price may be based on company code

A’s cost plus a markup, or based on a market price. The transfer price provides com-

pany code A with a profit that aligns with legal reporting requirements and is repre-

sented in financial reporting. At a corporate level, the intercompany profit on

company code A and intercompany cost on company code B are eliminated to repre-

sent a consolidated corporate financial report. The transfer pricing and multiple val-

uation approach functionality in SAP S/4HANA enables reporting on both of these

views.

As in financial accounting, parallel valuation can be implemented in controlling to

attribute valuation approaches to a particular ledger in the general ledger. You can

manage up to three valuation approaches, or valuation views, in parallel to support

transfer pricing: legal valuation view, group valuation view, and profit center valua-

tion view.

The following valuation views are available:

� The legal valuation view provides a view of company codes as separate legal enti-

ties with transfer pricing between companies within the corporation. Aligned with

the accounting principles of the leading ledger within the general ledger.

� The group valuation view provides a view of the organization as a group reporting

entity rather than many legal entities (company codes) This view can be used to

provide a reporting view without intercompany transfer pricing for decision mak-

ing at a corporate (group) level.

� The profit center valuation view enables reporting on profit centers when profit

centers represent divisions within an organization and drive transfer pricing with

different profits and profit margins.

Activating Valuation Views

Often legal and group valuation are required for reporting, but profit center valua-

tion is not. In this case, it is recommended to only activate the valuation views that

are required or will be required in the future. Activating profit center valuation


146

requires maintenance of additional configuration to map transfer prices at a profit

center level. If not required, this additional configuration creates unnecessary addi-

tional system processing time and ongoing maintenance.

For your valuation views, you can either use separate ledgers, or map multiple valua-

tion views within a ledger as follows:

� Parallel single-valuation refers to the assignment of valuation approaches each to

a single ledger (i.e., legal valuation assigned to leading ledger). Parallel single-valu-

ation includes:

– Valuation assigned to ledger

– Option for new implementations

– Simpler authorization concept

– Separate close processing required by valuation view

� Multi-valuation ledger refers to the assignment of one ledger to all currency types

and valuation views. The multi-valuation ledger includes:

– Currency types of all valuation views can be used in that ledger

– No separate close required by valuation view

– Optimized memory

– Valuation view specified in reporting

You can select per each ledger whether you want to enable a parallel single-valuation

or multi-valuation approach. The leading ledger can be used either with the legal val-

uation view or without restriction to one valuation view. However, it cannot be con-

figured exclusively with only group or profit center valuation views.

Multiple Valuation Views

If you want to use multiple valuation views within a ledger, do not assign a valuation

view to that ledger. This enables all currency types to be available for reporting

within that ledger.

Figure 4.12 depicts how you can design your ledgers to coincide with valuation views.

147


4

Figure 4.12 Parallel Valuation Approaches

Parallel Valuation Functionality in SAP S/4HANA 1809

Parallel valuation is enhanced in SAP S/4HANA 1809 to allow multiple currencies in

journal entries, allocations (assessments and distributions), and asset capitalization

and depreciation.

4.4.3 Actual Costing Runs

The actual costing cockpit provides a way to perform the various steps included in

actual costing runs. These steps include production and process order closure, over-

head cost calculation, allocations, actual cost split, actual activity rate calculation,

and actual costing itself.

Changes within the actual costing run functionality in SAP S/4HANA include the fol-

lowing:

� A change of standard price for materials and activities within the period is now

supported

� If a material is reprocessed by settlement, the system now automatically recog-

nizes the dependent materials on higher costing levels need to be reprocessed

� Consumption price differences are now considered

� A new two-dimensional distribution logic avoids rounding errors

� Price limiter logic is accurate on the cost component split level

Ledger CompanyCURTP(Local)

CURTP(Global)

CURTP1 CURTP2

0L 1000 10 30 … … Legal View

GR 1000 11 31 … … Group View

PC 1000 12 32 … … Profit Center View

Ledger CompanyCURTP(Local)

CURTP(Global)

CURTP1 CURTP2 CURTP3 CURTP4

0L 1000 10 30 11 31 12 32

Ledger View Group View Profit Center View


148

Similar to costing run execution, the actual costing cockpit requires that you create a

costing run and enter parameters for execution. Prior to SAP S/4HANA, you would

perform the following eight steps to process the actual costing run:

1. Selection

2. Determine sequence

3. Single-level price determination

4. Multi-level price determination

5. Revaluation of consumption

6. WIP revaluation

7. Post closing

8. Mark material prices

The processing steps previously performed in Transaction CKMLCP (single level price

determination, multilevel price determination, revaluation of consumption, and

WIP revaluation) are replaced in SAP S/4HANA by a single settlement step. The settle-

ment step performs cost allocations and actual price calculations. The sequence of

reduced steps in the Material Ledger Actual Costing Cockpit app are as follows:

1. Selection

2. Determine sequence

3. Settlement

4. Post closing

5. Mark material prices

There are several other changes to the material ledger’s actual costing cockpit (Trans-

actions CKMLCP and CKMLCPAVR):

� A new parameter Application makes it possible to process alternative valuation

runs via Transaction CKMLCP, and actual costing runs via Transaction CKML-

CPAVR.

� In the toolbar of Transactions CKMLCP and CKMLCPAVR, there is a new button

next to Display <-> Change to switch the application from Costing Run to Run Ref-

erence and vice versa.

� It is no longer possible to use delta posting runs in the actual costing cockpit.

149

4.5 Profitability Analysis

4

This section on material ledger/actual costing provided an overview of the key

changes in SAP S/4HANA to material ledger, actual costing, and transfer pricing.

Several new SAP Fiori apps were described which provide enhanced capabilities

including actual costing runs and actual costing cockpit. The next chapter discusses

the key changes in SAP S/4HANA in the area of profitability analysis.


Profitability analysis (commonly shortened to CO-PA) is the analysis of the profitabil-

ity of a product within an organization. All the costs associated with manufacturing,

storing, shipping, marketing, and selling a product are recorded in different cost cat-

egories including direct and indirect costs. These are then analyzed against the reve-

nue generated from selling the production to give a complete product profitability.

Profitability analysis has undergone many changes in SAP S/4HANA, all with focused

on achieving a single source of truth for financial and management reporting and

enhanced analysis for profitability reporting.

These changes to profitability analysis include the following:

� With the Universal Journal, there is no longer a need for reconciliation between

the general ledger and CO-PA

� Finance and controlling have consistent currencies, accounts/cost elements, and

extensibility, again due to the Universal Journal

� CO-PA now offers multi-dimensional reporting by market segments

� CO-PA reporting is achieved with queries and semantic tags

� Combined profitability analysis available offering benefits of account-based and

costing-based CO-PA

One of the most significant changes in profitability analysis in SAP S/4HANA is that

account-based CO-PA is now mandatory, although costing-based CO-PA is still avail-

able. You can activate both account-based and costing-based CO-PA, but you must

implement at least account-based CO-PA if activating the module. If account-based

CO-PA is not already active in your system, you’ll need to activate it during con-

version to SAP S/4HANA in order to take advantage of the new functionalities within

CO-PA.


150

CO-PA characteristics are appended to the Universal Journal (ACDOCA table). This

enables fast, multi-dimensional profitability reporting and a seamless integration of

CO-PA with the general ledger. There is no longer a need to reconcile the general

ledger with account-based CO-PA. While separate CO-PA tables still exist for costing-

based CO-PA and (if configured), combined CO-PA the Universal Journal within SAP

S/4HANA will eliminate redundancies. We will discuss combined profitability analy-

sis in the following section. Universal Journal extensibility can be seen in Figure 4.13.

Figure 4.13 Universal Journal Extensibility for CO-PA Characteristics

4.5.1 Additional Quantity Fields

When creating master data for materials, a base unit of measure must be specified

along with alternate units of measure used for inventory movements or customer

pricing. Often the base unit of measure, defined as the smallest transactable unit of

measure, is not the most useful for cost and profitability analysis. SAP S/4HANA pro-

vides the ability to leverage additional quantity fields to report on different units of

measure than the base unit of measure.

Additional quantity fields can be defined based upon a relationship to a base dimen-

sion such as mass or time. The standard unit of measure can be specified for each

quantity field. If a standard unit of measure is specified, the quantity will be consis-

tently expressed in that unit. These additional quantity fields are available in CO-PA

top-down distribution and assessment cycles, as shown in Figure 4.14.

Figure 4.15 shows an example of a CO-PA assessment.

Universal Journal

… Standard Field X Standard Field X+1

Yycust01 … wwprof01 wwprof02 …

Coding Block extensibility CO-PA extensibility

yycust02.

151


4

Figure 4.14 Quantity Fields in CO-PA Top-Down Distribution

Figure 4.15 CO-PA Assessment


152

4.5.2 Combined Profitability Analysis

Combined profitability analysis merges the benefits of account-based CO-PA with

costing-based CO-PA. This is done by enabling reporting with value fields in multiple

currencies, an ability that is not usually possible with costing-based CO-PA. Com-

bined profitability analysis is available in SAP S/4HANA, and additionally with SAP

ERP 6.0 EHP 7 (SP13) and EHP8 (SP4).

The benefits of combined profitability analysis include:

� Reconciled view of account-based and costing-based profitability

� Enhanced quantity reporting

� Efficient reporting by cost elements and value fields

� The ability to report on value fields and quantity fields by all currencies in the Uni-

versal Journal (i.e., including freely defined currencies not available in costing-

based CO-PA)

Figure 4.16 shows the CO-PA tables that are posted with combined profitability analy-

sis. A document header table joins the account segment document, value field seg-

ment, and quantity segment, each stored in separate tables.

Figure 4.16 Combined Profitability Analysis Table Structure

In the Maintain Operating Concern screen, combined profitability analysis is activated

by selecting account-based, costing-based, or combined options (see Figure 4.17).

With combined profitability analysis, a single CO-PA document is posted, which con-

tains the account fields, value fields, and segment fields represented in a single prof-

itability document. See Figure 4.18 for an example of this document.

Document HeaderCE9XXXX_H

Value field segmentCE9XXXX_IV

Account segmentCE9XXXX_IC

Quantity segmentCE9XXXX_IQ

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4

Figure 4.17 Combined Profitability Analysis Configuration

Figure 4.18 Combined Profitability Analysis Documents

Three virtual info providers (VIPs) are available for combined CO-PA reporting:

� VIP with flat output structure (/RKE/P_XXXX)

CO-PA data is delivered in a flat structure where all characteristics, accounts, and

value field values, as well as quantity information, are shown in one line.

� VIP with flat output structure in account view (/RKE/K_XXXX)

CO-PA value fields are represented by technical reporting accounts which them-

selves cannot be posted to. This way, we can display a P&L report in an account

hierarchy.


154

� VIP with deep output structure (/RKE/S_XXXX)

CO-PA data is delivered in a deep structure in which accounting and value field val-

ues are displayed in one column providing a P&L structure.

4.5.3 Attributed Profitability Segment

SAP S/4HANA provides the ability to derive statistical profitability segments during

general ledger posting based on a real account assignment to a CO object. This pro-

vides enhanced analytical capability on objects that do not typically contain a profit-

ability segment. This is referred to as an attributed profitability segment.

For example, if you have a debit memo with an account assignment to a sales order,

you can use this functionality to post statistics to the sales order profitability seg-

ment. This enables the analysis of debit memo revenue postings using the same prof-

itability characteristics as the sales order header.

The CO objects that can be used to derive CO-PA segments are:

� Cost center

� Internal order

� Project

� Sales order

� Production order

� Service and maintenance orders

4.5.4 Real-Time Derivation of Market Segment

Market segments exist in CO-PA to provide sales, marketing, and planning with a

view of specific customers, products, and orders for strategic decision making. Mar-

ket segments provide answers to questions like product profitability by customer

type and product sales in a specific region.

Market segments can be derived from master data in real time and are posted during

journal entry creation. These derivations can come from cost center, order, and proj-

ect master data. The journaling addition to the standard and customer-defined

CO-PA characteristics, the Universal Journal also contains a column for market seg-

ment. This functionality is referred to as real-time derivation of market segment.

Specific SAP Fiori apps exist for market segment reporting as part of account-based

CO-PA. Section 4.5.7 covers one example, the Market Segments – Plan/Actual app.

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4

The subsequent sections of this chapter detail SAP Fiori apps and transaction codes

available for reporting on CO-PA in SAP S/4HANA.

4.5.5 Pivot-Browser

The Pivot Browser app, shown in Figure 4.19, is useful for ad hoc reporting and sum-

mary of CO-PA plan and actual line items (Transaction KE24N). If leveraging com-

bined CO-PA, data can be selected based on values or quantities.

Figure 4.19 Pivot Browser

4.5.6 Realignment Results – Profitability Analysis

The Realignment Results app, shown in Figure 4.20, provides insight into the adjust-

ments made to posted profitability reporting dimensions by the realignment for

profitability analysis. This shows the changes resulting from CO-PA realignment runs

by providing a before-and-after view of the realignment data.

This app allows line item analysis, as well as a graphical depiction of the realignment

entries.


156

Figure 4.20 Realignment Results – Profitability Analysis

4.5.7 Market Segments – Plan/Actual

The Market Segments – Plan/Actual app provides the ability to report on market seg-

ments that are derived based on master data by using plan and actual data. As dis-

cussed in Chapter 2, SAP Fiori’s analytical apps provide the ability to build ad-hoc

reports with an X and Y axis within the SAP Fiori screen. Analytical apps allow simple

drag-and-drop functionality to build out views and can be downloaded to Excel for

further analysis. Figure 4.21 shows the segments available within the app.

Figure 4.21 Segments – Plan/Actual Fiori

157

4.6 Summary

4

This section on profitability analysis provided an overview of the key changes in SAP

S/4HANA to CO-PA functionality and profitability analysis reporting. Several capabil-

ities new in SAP S/4HANA were detailed including market segments and combined

profitability analysis. Finally, we described several new SAP Fiori apps were described

that provide enhanced profitability reporting capabilities.

4.6 Summary

This chapter has provided an overview of the key changes to management account-

ing across cost element accounting, overhead cost controlling, product cost con-

trolling, and profitability analysis. Management accounting in SAP S/4HANA

provides improved cost and revenue analysis and direct integration between exter-

nal reporting and internal. Subsequent chapters in this book will continue to explore

the key changes across FSCM, financial planning, close and consolidations, and will

give further overview of SAP S/4HANA analytics.

7

Contents

Preface ..................................................................................................................................................... 17

1 Finance Transformation 23

1.1 Finance Transformation and the Role of a CFO ..................................................... 25

1.1.1 Steward .................................................................................................................... 27

1.1.2 Operator .................................................................................................................. 27

1.1.3 Strategist ................................................................................................................. 27

1.1.4 Catalyst .................................................................................................................... 27

1.1.5 How the Role of CFO is Changing ................................................................... 27

1.2 Evolving Finance Reporting Requirements .............................................................. 28

1.2.1 Staying Ahead of Competitors ......................................................................... 29

1.2.2 Meeting Compliance Requirements .............................................................. 30

1.3 Advancements in Information Technology ............................................................. 31

1.4 Introduction to SAP S/4HANA Finance ...................................................................... 32

1.4.1 Universal Journal .................................................................................................. 34

1.4.2 Improved User Experience with SAP Fiori .................................................... 35

1.4.3 Real-Time Reporting ............................................................................................ 37

1.4.4 Advanced Analytics .............................................................................................. 38

1.5 Central Finance ..................................................................................................................... 39

1.6 Summary ................................................................................................................................. 41

2 Architecture 43

2.1 The System: SAP S/4HANA .............................................................................................. 43

2.1.1 SAP S/4HANA Finance ......................................................................................... 44

2.1.2 Software Versions ................................................................................................ 45

2.1.3 Central Finance ..................................................................................................... 46

2.1.4 SAP Landscape Transformation Replication Server .................................. 50

Contents

8

2.1.5 SAP Master Data Governance .......................................................................... 50

2.1.6 Deployment Options .......................................................................................... 52

2.2 The Database: SAP HANA ................................................................................................ 53

2.3 The User Experience: SAP Fiori ...................................................................................... 56

2.3.1 Transactional Applications ............................................................................... 56

2.3.2 Analytical Applications ...................................................................................... 59

2.3.3 Fact Sheet Applications ...................................................................................... 60

2.4 The Table Structure: Universal Journal ..................................................................... 62

2.5 The Network: Peripheral Cloud Applications ......................................................... 64

2.5.1 SAP Ariba ................................................................................................................. 65

2.5.2 SAP Concur ............................................................................................................. 67

2.5.3 SAP Fieldglass ........................................................................................................ 70

2.5.4 SAP SuccessFactors .............................................................................................. 72

2.6 Summary ................................................................................................................................. 74

3 Financial Accounting 75

3.1 General Ledger ..................................................................................................................... 75

3.1.1 Key Processes ......................................................................................................... 75

3.1.2 General Ledger in SAP S/4HANA ..................................................................... 76


3.1.4 Finance and Controlling Merged into One .................................................. 83

3.1.5 Material Ledger ..................................................................................................... 85

3.1.6 Business Partner ................................................................................................... 85

3.1.7 Useful SAP Fiori Apps .......................................................................................... 86

3.2 Accounts Payable ................................................................................................................ 90

3.2.1 Accounts Payable Process ................................................................................. 90

3.2.2 ACDOCA Table ....................................................................................................... 91

3.2.3 Vendor Invoice Management using OpenText Vendor Invoice

Management ......................................................................................................... 91

3.2.4 SAP Ariba ................................................................................................................. 93

3.2.5 Monitor Payments ............................................................................................... 93

9

Contents

3.3 Accounts Receivable ........................................................................................................... 95

3.3.1 Accounts Receivable Process ............................................................................ 95

3.3.2 Master Data ............................................................................................................ 96

3.3.3 Updates/Mass Changes ..................................................................................... 98

3.3.4 Receivables Management and Reporting .................................................... 98

3.3.5 Financial Supply Chain Management ............................................................ 104


3.4 Asset Accounting ................................................................................................................. 111

3.4.1 Asset Accounting Process .................................................................................. 112


3.5 Central Processing ............................................................................................................... 120

3.6 Reporting ................................................................................................................................. 121

3.6.1 Flexible Reporting ................................................................................................. 121

3.6.2 Reporting on Various Hierarchies ................................................................... 122

3.7 Summary ................................................................................................................................. 122

4 Management Accounting 123

4.1 Cost Element Accounting ................................................................................................. 124

4.1.1 Primary and Secondary Cost Elements ......................................................... 124

4.1.2 General Ledger Account Types ......................................................................... 125

4.1.3 Profit and Loss Account Types .......................................................................... 126

4.2 Overhead Cost Controlling .............................................................................................. 128

4.2.1 Cost Allocations .................................................................................................... 128

4.2.2 Internal Orders ...................................................................................................... 130

4.2.3 Project Cost Reporting ........................................................................................ 131

4.2.4 Flexible Hierarchies .............................................................................................. 132

4.3 Product Cost Controlling .................................................................................................. 133

4.3.1 Product Cost Controlling Process .................................................................... 134

4.3.2 Costing Run Enhancements .............................................................................. 135

4.3.3 Cost of Goods Sold Split by Cost Component ............................................. 136

4.3.4 Work In Process Analysis Improvements ...................................................... 138

4.3.5 Production Variances Split by Variance Category ..................................... 138

4.3.6 Manage Material Valuations ............................................................................ 140

Contents

10

4.3.7 Material Inventory Values – Balance Summary ........................................ 140

4.3.8 Material Price Analysis ....................................................................................... 141

4.3.9 Production Cost Analysis ................................................................................... 142

4.4 Material Ledger and Actual Costing ........................................................................... 143

4.4.1 Material Ledger ..................................................................................................... 143

4.4.2 Transfer Pricing and Multiple Valuation Approaches .............................. 144

4.4.3 Actual Costing Runs ............................................................................................ 147

4.5 Profitability Analysis ......................................................................................................... 149

4.5.1 Additional Quantity Fields ................................................................................ 150

4.5.2 Combined Profitability Analysis ...................................................................... 152

4.5.3 Attributed Profitability Segment .................................................................... 154

4.5.4 Real-Time Derivation of Market Segment ................................................... 154

4.5.5 Pivot-Browser ........................................................................................................ 155

4.5.6 Realignment Results – Profitability Analysis .............................................. 155

4.5.7 Market Segments – Plan/Actual ..................................................................... 156

4.6 Summary ................................................................................................................................. 157

5 Treasury and Risk Management 159

5.1 Cash Management ............................................................................................................. 160

5.1.1 Cash Management Process .............................................................................. 160

5.1.2 Liquidity Forecasting ........................................................................................... 161

5.1.3 Cash and Liquidity Management ................................................................... 161

5.1.4 Liquidity Planner .................................................................................................. 161

5.1.5 In-House Cash ....................................................................................................... 163

5.1.6 Intra-Group Payments ........................................................................................ 165

5.1.7 Central Incoming Payments ............................................................................. 165

5.1.8 Central Outgoing Payments ............................................................................. 165

5.1.9 Local Outgoing Payments ................................................................................. 166

5.2 Liquidity Planning and Forecasting ............................................................................. 166

5.2.1 Liquidity Planning and Forecasting Process ................................................ 166

5.2.2 Liquidity Planning Objects ................................................................................ 170

5.2.3 Liquidity Planning Data ...................................................................................... 171

5.2.4 Cash Managers Dashboard .............................................................................. 172

11

Contents

5.2.5 Cash Flow Detailed Analysis ............................................................................. 172

5.3 Transaction and Risk Management ............................................................................. 173

5.3.1 Transaction and Risk Management Process ................................................ 173

5.3.2 Transaction Manager .......................................................................................... 174

5.3.3 Risk Analyzer .......................................................................................................... 175

5.4 Bank Account Management ........................................................................................... 176

5.4.1 Bank Account Management Process ............................................................. 176

5.4.2 Bank Account Master Data ............................................................................... 179

5.4.3 Bank Account Hierarchy and Bank Account Groups ................................. 181

5.4.4 Bank Account Management Workflow ......................................................... 182

5.4.5 Cash Concentration ............................................................................................. 183

5.4.6 Bank Reconciliation .............................................................................................. 184


5.5 Advanced Compliance Reporting ................................................................................. 187

5.5.1 SAP S/4HANA for Advanced Compliance Reporting ................................. 188

5.5.2 Define Compliance Reports .............................................................................. 189

5.5.3 Run Compliance Reports .................................................................................... 189

5.6 Summary ................................................................................................................................. 191

6 Financial Planning 193

6.1 Strategic Planning ............................................................................................................... 195

6.2 Budgeting ................................................................................................................................ 195

6.3 Forecasting ............................................................................................................................. 197

6.4 Challenges for Planning, Budgeting, and Forecasting ........................................ 198

6.4.1 Changes in Legacy Planning and Forecasting Solutions ......................... 199

6.4.2 How Does Planning, Forecasting, and Budgeting in

SAP Address Key Challenges? ........................................................................... 199

6.5 SAP Planning Product Overview ................................................................................... 201

6.5.1 SAP BPC 10.1 for SAP S/4HANA ....................................................................... 203

6.5.2 SAP BPC 11, Version for SAP BW/4HANA ..................................................... 208

6.5.3 SAP Analytics Cloud ............................................................................................. 211

6.5.4 Hybrid Deployment with SAP BPC and SAP Analytics Cloud ................. 213

Contents

12

6.6 Enhancing Planning and Forecasting Capabilities ............................................... 214

6.6.1 Profit and Loss Statement Planning .............................................................. 215

6.6.2 Balance Sheet and Cash Flow Planning ........................................................ 218

6.6.3 FP&A Predictive Modeling through SAP ....................................................... 220

6.6.4 Visualization and Mobility in FP&A ............................................................... 224

6.7 Summary ................................................................................................................................. 227

7 Financial Close and Consolidation 229

7.1 Entity Close ............................................................................................................................ 230

7.1.1 Entity Close Process ............................................................................................. 230

7.1.2 Challenges in the Typical Closing Process ................................................... 231

7.1.3 Improved Entity Close with SAP Financial Closing Cockpit .................... 233

7.1.4 Emerging Technologies in the Closing Process .......................................... 238

7.2 Settlements and Assessments ...................................................................................... 239

7.2.1 Settlements and Assessments Process ......................................................... 239

7.2.2 Assessment Versus Distribution ..................................................................... 239

7.2.3 Planning Engine .................................................................................................... 245

7.2.4 Reporting in One System ................................................................................... 245

7.2.5 Investigate Trends ............................................................................................... 246

7.2.6 Eliminated CO-FI Reconciliation ...................................................................... 246

7.2.7 Freely Defined Currencies ................................................................................. 246

7.2.8 Faster Algorithms ................................................................................................. 246

7.2.9 Simplified Planning and Allocation ............................................................... 247

7.2.10 Settlements ............................................................................................................ 247

7.3 Intercompany Eliminations ............................................................................................ 248

7.3.1 Intercompany Elimination Process ................................................................ 248

7.3.2 Intercompany Transactions .............................................................................. 249

7.3.3 Stock Transfer Orders ........................................................................................ 251

7.3.4 Intercompany Drop-Ship-Scenarios: ............................................................. 252

7.3.5 Internal Procurement Orders ........................................................................... 252

7.3.6 Intercompany Reconciliation ........................................................................... 252

7.3.7 Intercompany Eliminations .............................................................................. 260

13

Contents

7.4 Currency Translations ........................................................................................................ 263

7.4.1 Currency Translation Process ........................................................................... 263

7.4.2 Currencies and Exchange Rates ....................................................................... 263

7.4.3 Post Currency Adjustments .............................................................................. 265

7.4.4 Foreign Currency Revaluation .......................................................................... 265

7.4.5 Currency Translations ......................................................................................... 269

7.5 Consolidated Reporting .................................................................................................... 272

7.5.1 Consolidated Reporting Process ...................................................................... 272

7.5.2 Group Reporting ................................................................................................... 273

7.5.3 Consolidated Reporting User Experience ..................................................... 276

7.5.4 SAP Analysis for Microsoft Office .................................................................... 276


7.6 Summary ................................................................................................................................. 278

8 Reporting and Analytics 279

8.1 Advanced Compliance Reporting ................................................................................. 279

8.1.1 Define Advanced Compliance Reports .......................................................... 280

8.1.2 Run Advanced Compliance Reports ............................................................... 281

8.2 Management Reporting ................................................................................................... 281


8.2.2 Market Segment Reporting ............................................................................... 283

8.3 Reporting and Analytics Tools ....................................................................................... 283

8.3.1 SAP Fiori ................................................................................................................... 285

8.3.2 SAP Lumira .............................................................................................................. 293

8.3.3 SAP Analysis for Microsoft Office .................................................................... 301


8.3.5 SAP Predictive Analytics ..................................................................................... 325

8.3.6 Artificial Intelligence ........................................................................................... 333

8.4 Summary ................................................................................................................................. 335

Contents

14

9 Deployment Options 337

9.1 On-Premise Versus Public or Private Cloud ............................................................. 337

9.1.1 On-Premise ............................................................................................................. 339

9.1.2 Public Cloud ........................................................................................................... 341

9.1.3 Private Cloud ......................................................................................................... 342

9.2 Single Instance versus Multiple Instances ............................................................... 344

9.2.1 Single Global Instance ........................................................................................ 344

9.2.2 Multiple Instances ............................................................................................... 346

9.3 Rollout Options (Big Bang or Rollout) ........................................................................ 348

9.3.1 Big Bang Approach .............................................................................................. 349

9.3.2 Phased Rollout by Functionality ...................................................................... 350

9.3.3 Phased Approach by Geography or Business Unit .................................... 351

9.3.4 Rollout Strategy – Decision-Making Approach .......................................... 352

9.4 Central Finance .................................................................................................................... 354

9.4.1 SAP S/4HANA Migration Options ................................................................... 357

9.4.2 Use Cases ................................................................................................................ 360

9.4.3 Deployment Options .......................................................................................... 361

9.4.4 Limitations ............................................................................................................. 363

9.5 SAP MDG ................................................................................................................................. 364

9.5.1 SAP MDG as a Separate Instance .................................................................... 365

9.5.2 SAP MDG Deployed on the Same SAP S/4HANA Instance ..................... 365

9.6 SAP Fiori Deployment Options ...................................................................................... 366

9.6.1 SAP Fiori On-Premise .......................................................................................... 366

9.6.2 SAP Fiori Cloud ...................................................................................................... 367

9.7 Summary ................................................................................................................................. 368

10 Planning an SAP S/4HANA Finance Project 369

10.1 Designing the Landscape of the Future .................................................................... 369

10.1.1 Business Climate .................................................................................................. 370

10.1.2 Legacy Systems ..................................................................................................... 370

10.1.3 Business Segments/Markets ........................................................................... 371

15

Contents

10.1.4 Organization Stakeholders ................................................................................ 371

10.2 Anticipating Project Complexity ................................................................................... 372

10.2.1 Multi-Country Rollout ......................................................................................... 373

10.2.2 Data Conversion ................................................................................................... 374

10.2.3 Organizational Change Management ........................................................... 374

10.3 Building a Business Case for Your Organization .................................................... 376

10.3.1 Cost/Benefit Analysis .......................................................................................... 377

10.3.2 User Experience ..................................................................................................... 378

10.3.3 Reporting ................................................................................................................. 379

10.4 Choosing an Implementation Approach ................................................................... 382

10.4.1 Waterfall Versus Agile Versus Hybrid Agile ................................................. 383

10.4.2 Model Company Code ......................................................................................... 386

10.5 Learning from Existing Customers ............................................................................... 387

10.6 Summary ................................................................................................................................. 388

The Authors ........................................................................................................................................... 389

Index ........................................................................................................................................................ 391

391

Index

A

ABAP Development Tools ................................. 285

Account Payable Aging Analysis .................... 289

Account payables .................................... 47, 90, 165

Account receivable ................................. 47, 95, 165

master data ........................................................... 96

ACDOCA ................................... 76, 91, 124, 200, 263

Acknowledgements ................................................ 20

Actual costing .................................................. 85, 147

Additional quantity fields ................................. 150

Adoption ..................................................................... 18

Advanced compliance reporting .......... 187, 279

Allocation ................................................................. 242

Analytical apps ......................................... 59, 80, 285

Analytics ......................................................... 279, 283

advanced ................................................................ 38

Architecture ............................................................... 43

Ariba Network ............................................ 65, 91, 93

Artificial intelligence ........................................... 333

Assessment ................................................... 239–241

Asset accounting ................................................... 111

Asset Balances ........................................................ 117

Asset Master Worklist ......................................... 118

Assign Semantic Tags ............................................. 79

Attachments ........................................................... 178

Audit Services ............................................................ 69

Automation ................................................................ 31

B

Balance carry forward ......................................... 237

Balance sheet account ........................................... 83

Bank account

groups ................................................................... 181

hierarchy ............................................................. 181

management ..................................................... 176

master data ........................................................ 178

Bank reconciliation .............................................. 184

Big bang .......................................................... 348, 349

Blockchain .................................................................. 31

Bottom-up planning ............................................ 193

Budgeting ................................................................ 195

challenges ........................................................... 199

Business finance ...................................................... 24

Business Partner ..................................... 51, 85, 250

Business users ........................................................... 17

C

Capital expense planning ................................. 217

Cash concentration .............................................. 183

Cash Discount Utilization ................................. 380

Cash Flow Analyzer .............................................. 168

Cash Flow Statement .............................................. 79

Cash Management ............................................... 160

Cash managers ...................................................... 172

Cash pooling ........................................................... 178

Cash Position .......................................................... 169

Cash Position Dashboard .................................. 169

Cash Position Details .......................................... 381

Catalyst ................................................................. 26, 27

CDS view ................................................................... 285

Central Finance ............. 39, 46, 47, 354, 360, 363

configuration ....................................................... 47

deployment ........................................................ 354

mapping ................................................................. 48

Central incoming payments ............................ 165

Central outgoing payments ............................. 165

Central processing ............................................... 120

CFO role ................................................................ 25, 27

Closing cockpit ...................................................... 233

Closing cycle ........................................................... 231

Cognitive computing ............................................. 32

Collaboration ......................................................... 322

Collections management ........................... 95, 105

Combined profitability analysis ..................... 152

Compliance ................................................................ 30

Concur Expense ....................................................... 69

Concur Invoice ......................................................... 69

Concur Request ........................................................ 68

Concur Travel ............................................................ 68

Consolidated reporting ...................................... 272

Consolidation ................................................ 229, 272

Index

392

Contribution Margin ............................................. 79

Controlling ................................................................. 62

CO-PA ........................................................................ 149

account-based ................................................... 152

attributed profitability segment ............... 154

combined ............................................................ 152

costing-based .................................................... 152

Cost allocations ............................................ 128, 129

Cost center .......................................................... 51, 60

Cost center planning ........................................... 218

Cost Centers – Plan/Actual .................................. 59

Cost object mapping .............................................. 48

Cost of goods sold ....................................... 136, 216

split ........................................................................ 136

Costing Run ............................................................ 135

Credit management ..................................... 95, 104

Credit risk analyzer .............................................. 174

Currencies ...................................................... 246, 263

foreign currency balance sheet .................. 266

foreign currency revaluation ...................... 268

open items .......................................................... 267

post currency adjustments .......................... 265

Currency translations ................................ 263, 269

balance sheet translation ............................. 269

exchange gain ................................................... 269

exchange loss .................................................... 269

remeasurement ................................................ 269

Custom Fields and Logic .................................... 117

D

Dashboarding ........................................................... 33

Data conversion .................................................... 374

Database ...................................................................... 53

Day Beyond Terms ............................................... 102

Day Sales Outstanding .............................. 103, 381

Days Payable Outstanding ............................... 380

Days’ Payable Outstanding Analysis ............... 59

Define Compliance Reports ............................. 189

Deployment ..................................................... 52, 337

on-premise ................................................. 337, 339

private cloud ............................................. 337, 342

public cloud ............................................... 337, 341

Depreciation .............................................................. 81

Depreciation list ................................................... 119

Depreciation posting .......................................... 115

Design Studio .......................................................... 286

Display accounts receivable ............................. 111

Display financial statement ................................ 57

Dispute management .................................. 95, 107

Distribution ................................................... 239, 240

Document splitting ................................................ 49

Document table

CKMLCR ................................................................ 144

CKMLKEPH .......................................................... 144

CKMLMV003 ...................................................... 144

CKMLMV004 ...................................................... 144

CKMLPP ................................................................ 144

CKMLPPWIP ........................................................ 144

MLCD ..................................................................... 144

MLCR ..................................................................... 144

MLCRF ................................................................... 144

MLDOC .................................................................. 144

MLDOCCCS .......................................................... 144

MLHD .................................................................... 144

MLIT ....................................................................... 144

MLKEPH ............................................................... 144

MLPP ...................................................................... 144

MLPPF ................................................................... 144

Drill back ................................................................... 360

E

Entity close .............................................................. 230

Error handling ................................................. 49, 359

Event-based Revenue Recognition .................. 79

Exchange rate ......................................................... 263

realized ................................................................. 268

unrealized ............................................................ 268

Expense Pay Global ................................................ 69

F

Factsheet apps .......................................... 60, 80, 285

Finance management ............................................ 75

Finance process ........................................................ 24

Finance project ....................................................... 369

business case ...................................................... 376

complexity .......................................................... 372

Finance reporting .................................................... 28

Finance strategies ................................................... 24

Finance transformation ................................ 23, 25

393

Index

Financial accounting ....................................... 62, 75

Financial close ........................................................ 229

closing cockpit ................................................... 233

monitoring ......................................................... 234

Financial index tables ............................................ 63

Financial planning .................................. 29, 47, 193

Financial reporting .................................................. 76

Financial statement ............................................. 121

reporting ................................................................. 47

version ..................................................................... 78

Financial supply chain management ........... 104

Financial transformation .................................. 369

Fiscal year-end close ............................................ 116

Flexible reporting ................................................. 121

Forecasting .............................................................. 197

challenges ........................................................... 199

enhancing ........................................................... 214

Foreign currency revaluation .......................... 265

Functional consultants ......................................... 17

Future Payables app ............................................. 380

Fuzzy search ............................................................ 177

G

General ledger .......................................... 51, 75, 125

in SAP S/4HANA .................................................. 76

posting .................................................................... 76

reporting ................................................................. 47

H

HR Mini Master ........................................................ 73

I

Implementation .................................................... 382

agile ....................................................................... 382

approach ............................................................. 339

hybrid .................................................................... 382

waterfall .............................................................. 382

Information technology ....................................... 31

Input price variance ............................................. 139

Instances .................................................................. 344

Integrated acquisition ........................................ 113

Integrated asset acquisition ............................. 113

Intelligence ................................................................. 69

Intercompany accounting ................................ 249

Intercompany Balance Reconciliation ............ 89

Intercompany drop-ship ................................... 252

Intercompany eliminations .................... 248, 260

Intercompany matching ...................................... 37

Intercompany pass-through ............................ 252

Intercompany reconciliation ...... 229, 252, 253,

256, 259

Intercompany transactions .............................. 249

Internal Order ................................................. 60, 130

Internal procurement ......................................... 252

Intra-group payment .......................................... 165

J

Journal Entry Analyzer .......................................... 86

K

Key mapping ............................................................. 48

KPI Design ............................................................... 284

L

Legacy forecasting ................................................ 199

Legacy planning .................................................... 199

Liquidity Forecast ..................... 161, 166, 170, 381

Liquidity items ...................................................... 171

hierarchies .......................................................... 171

Liquidity planning ............................................... 161

data ....................................................................... 171

objects .................................................................. 170

types ...................................................................... 171

Local outgoing payments .................................. 166

Lot size variance .................................................... 139

M

Machine learning .......................................... 99, 333

Maintain vendors .................................................... 90

Manage Banks ........................................................ 185

Manage Cost Centers ............................................. 56

Manage Depreciation Run ................................ 118

Manage Flexible Hierarchies ........................... 132

Manage Internal Orders ........................................ 57

Manage Material Valuations ............................ 140

Index

394

Manage Supplier Line Items ............................... 57

Management accounting .................................. 123

Management reporting .............................. 47, 281

Market risk analyzer ............................................ 174

Market segment reporting ............................... 283

Market Segments – Plan/Actual ..................... 156

Master data ................................................................ 96

Master data maintenance .................................... 75

Material Inventory Values –

Balance Summary ........................................... 140

Material Inventory Values –

Line Item ...................................................... 59, 140

Material ledger ............................................... 85, 143

Material Price Analysis ....................................... 141

Material quantity variance ............................... 139

Memo records ........................................................ 171

Microservices ............................................................ 31

Migration ................................................................. 349

Mixed price variance .......................................... 139

Mobility .................................................................... 224

Monitor Payments .................................................. 93

Multi-country rollout ......................................... 373

Multi-dimensional query .................................. 285

Multiple instances ............................................... 344

Multiple valuation ............................................... 144

Multi-valuation ledger ....................................... 146

My Spend .................................................................... 56

N

Nonintegrated acquisition ............................... 113

Nonoperating expense ......................................... 83

Nonoperating income ........................................... 83

Note ............................................................................... 19

O

Online analytical processing .............................. 53

Online transaction processing ........................... 53

OpenText vendor invoice management ........ 91

Operational finance ................................................ 24

Operator ............................................................... 26, 27

Organizational change management .......... 374

Output price variance ......................................... 139

Output variances .................................................. 139

Overdraft limits .................................................... 180

Overdue payables .................................................... 47

Overdue receivables ..................... 47, 59, 101, 128

Overhead planning ............................................... 216

P

P&L – Plan/Actual ................................................... 59

Parallel valuation .................................................. 113

approaches .......................................................... 147

Payment signatures ............................................. 180

Period close ............................................................... 37

Period-end closing .................................................. 76

Peripheral cloud applications ............................ 64

Pivot Browser .......................................................... 155

Planning

challenges ............................................................ 199

engine .................................................................... 245

enhancing ............................................................ 214

functions .............................................................. 207

sequences ............................................................. 207

templates ............................................................. 206

units ....................................................................... 171

Portfolio analyzer ................................................. 174

Predictive analytics library ............................... 328

Predictive analytics models .............................. 331

Predictive modeling ............................................. 220

Primary cost .............................................................. 84

Primary Revenue ..................................................... 84

Process Collections Worklist ............................ 110

Product cost controlling .................................... 133

Product Profitability .............................................. 79

Production Cost Analysis ............................ 57, 142

Production variances ........................................... 140

Profit and loss ............................................... 126, 215

Profit center .............................................................. 51

Profitability analysis .............................................. 49

Project complexity ............................................... 372

Project Costs Report – Line Item app ............ 131

Project Profitability ................................................ 79

R

R (programming language) ............................... 221

Realignment Results ............................................ 155

Real-time consolidation ..................................... 260

Real-time reporting ................................................ 37

395

Index

Receivables management .................................... 98

Receivables Management Dashboard .......... 101

Reconciliation .......................................... 36, 49, 236

controlling .......................................................... 246

finance .................................................................. 246

Remaining input variance ................................ 139

Remaining variance ............................................. 139

Report Design ......................................................... 284

Reporting ................. 28, 37, 91, 98, 121, 245, 279,

283, 379

Reprocessing Rate of Incoming

Payments ............................................................ 101

Resource-usage variance ................................... 139

Risk analyzer ........................................................... 175

Robotics ....................................................................... 32

Rollout ....................................................................... 348

Run Advanced Compliance Reports ............. 280

Run Compliance Reports ................................... 189

S

SAP AIF ............................................................... 48, 359

SAP Analysis for Microsoft Office ....... 201, 206,

284, 301

SAP Analytics Cloud ............... 199, 200, 211, 218,

284, 311

architecture ........................................................ 211

direct connectivity ........................................... 313

import data connection ................................ 313

live connection .................................................. 313

path connectivity ............................................. 313

SAP Ariba ............................................... 44, 65, 91, 93

SAP Business Planning and

Consolidation ........ 34, 44, 199, 200, 202–204,

241, 272

SAP Business Suite ............................................... 180

SAP BW/4HANA ..................................................... 208

SAP C/4HANA ......................................................... 218

SAP Concur .......................................................... 44, 67

SAP CoPilot .............................................................. 333

SAP Customer Relationship

Management ..................................................... 218

SAP Design Studio ................................................ 284

SAP Digital Boardroom .......... 212, 225, 284, 323

SAP ERP .................................................... 35, 129, 263

SAP Fieldglass ........................................... 44, 70, 217

SAP Fiori ............ 32, 35, 56, 79, 97, 144, 208, 236,

264, 285, 288

analytical apps .................................................... 80

deployment ........................................................ 366

factsheet apps ...................................................... 80

transactional apps ............................................. 80

SAP Fiori launchpad designer .......................... 288

SAP Gateway ........................................................... 288

SAP HANA .................................................. 43, 53, 144

SAP Invoice & Goods Receipt

Reconciliation ................................................... 236

SAP Landscape Transformation ........................ 50

SAP Landscape Transformation

Replication Server .................................... 50, 362

SAP Leonardo Machine Learning

Foundation ......................................................... 333

SAP Lumira ........................ 226, 284, 293, 294, 296

SAP Master Data Governance ............................. 50

SAP MDG .................................................................. 364

SAP Model Company .......................................... 386

SAP Notes .................................................................... 47

SAP Predictive Analytics ........................... 325, 334

integration ......................................................... 222

SAP S/4HANA ............... 43, 47, 125, 284, 345, 369

asset accounting .............................................. 236

Cloud ................................................................. 45, 46

data models ....................................................... 314

management accounting allocation ....... 131

material ledger ................................................. 144

migration ............................................................ 357

releases .................................................................... 46

SAP S/4HANA Embedded Analytics .............. 284

SAP S/4HANA Employee Central ...................... 72

SAP S/4HANA Finance ............................. 32, 33, 44

SAP S/4HANA for advanced

compliance reporting .................................... 188

SAP Service Ticket Intelligence ....................... 334

SAP Simple Finance ................................................ 44

SAP Smart Business ...................................... 59, 288

custom apps ....................................................... 291

SAP Smart Business apps .................................. 288

SAP SuccessFactors ................................ 44, 72, 217

SAP SuccessFactors Compensation .................. 72

SAP SuccessFactors Learning .............................. 72

SAP SuccessFactors Onboarding ....................... 72

SAP SuccessFactors Performance & Goals .... 72

Index

396

SAP SuccessFactors Recruiting ........................... 72

SAP SuccessFactors Succession

Development ....................................................... 72

SAP SuccessFactors Workforce Analytics ...... 72

SAP System Landscape Transformation ........ 47

SAP Trade Promotion Management ............. 218

SAP Transaction and Risk Management ..... 173

Scrap variance ........................................................ 139

Secondary costs ........................................................ 84

Segment reporting ............................................... 112

Semantic tagging ..................................................... 78

Settlements .................................................... 239, 247

internal order .................................................... 247

production order .............................................. 247

Sharing ...................................................................... 322

Single instance ...................................................... 344

Single source of truth ............................................ 81

Smart business apps ............................................ 285

Smart Discovery .................................................... 320

Soft close ......................................................... 229, 235

Statistical Key Figures–Actuals .......................... 59

Steward ................................................................. 26, 27

Stock transfer orders ........................................... 251

Stories ....................................................................... 317

Strategic planning ................................................ 195

Strategist .............................................................. 26, 27

Structure ..................................................................... 18

T

TensorFlow .............................................................. 333

Top-down process ................................................ 193

Trading partners ................................................... 250

Transaction

/UI2/FLPD_CUST .............................................. 288

BP .............................................................................. 85

CK40N .................................................................. 136

CKM3 ..................................................................... 141

CKMLCP ............................................................... 148

CKMLCPAVR ...................................................... 148

FBL1N .................................................................... 259

FBL3N .................................................................... 259

FBL5N .................................................................... 259

FDXX ........................................................................ 85

FKXX ........................................................................ 85

KA01 ............................................................... 83, 127

Transaction (Cont.)

KA02 ...................................................................... 127

KA03 ...................................................................... 127

KA06 ...................................................................... 127

KE24N .................................................................... 155

KOC4 ...................................................................... 142

OKB9 ...................................................................... 127

OKP1 ....................................................................... 128

S_PL0_86000028 ............................................ 121

SE11 ......................................................................... 285

SM37 ....................................................................... 118

Transaction manager ................................ 173, 174

Transaction types .................................................. 115

Transactional applications ................................ 285

Transactional apps ........................................... 56, 80

Transfer prices ........................................................ 144

Treasury and risk management ...................... 159

Trial Balance ..................................................... 87, 381

Type-ahead search .................................................. 76

U

Unilateral asset concepts ................................... 115

Universal Journal ............. 34, 36, 55, 62, 76, 124,

150, 201, 229, 282

Universal ledger ....................................................... 80

Updates/Mass Changes ........................................ 98

Upload Journal Entries .......................................... 88

User experience ....................................... 35, 56, 378

V

Value mapping ......................................................... 48

Verify Journal Entries ............................................ 88

Version coding ......................................................... 46

Virtual info provider ............................................ 153

/RKE/K_XXXX .................................................... 153

/RKE/P_XXXX .................................................... 153

/RKE/S_XXXX .................................................... 154

flat output structure ....................................... 153

flat output structure in account

view ......................................................... 153, 154

Visualization ........................................................... 224

397

Index

W

Warning ....................................................................... 19

WBS elements ..................................................... 49, 60

Web Dynpro Floor Plan Manager ................... 286

Work in progress analysis ................................. 138

Working Capital Analytics ................................ 109

Y

Year-end closing .................................................... 238

First-hand knowledge.

We hope you have enjoyed this reading sample. You may recommend or pass it on to others, but only in its entirety, including all pages. This reading sample and all its parts are protected by copyright law. All usage and exploitation rights are reserved by the author and the publisher.

Maunil Mehta is a principal at Deloitte Consulting. For over 16 years, he has been a trusted advisor to chief executives of Fortune 500 companies, helping them define and achieve their finance transformation vision. He leads Deloitte’s SAP Finance practice for leading technology and media companies.

Tanya Duncan is a manager in the SAP practice of Deloitte Consulting, focused on delivering finance transformation projects for consumer products, high tech, and life sciences clients. She is experienced in SAP S/4HANA implementations and specializes in Cont-rolling.

Usman Aijaz is a senior manager at Deloitte Consul-ting where he leads SAP S/4HANA Finance engage-ments. He has more than 15 years of consulting experience managing, designing, developing, and im-plementing SAP solutions for some of Deloitte’s largest global clients.

Maunil Mehta, Usman Aijaz, Tanya Duncan, Sam Parikh

SAP S/4HANA Finance: An Introduction397 Pages, 2019, $79.95 ISBN 978-1-4932-1778-6

www.sap-press.com/4784

Sam Parikh is a managing director at Deloitte Consul-ting. He has over 20 years of experience driving lar-ge-scale finance transformations enabled by ERP systems and is well versed in all aspects of the transfor-mation–from developing a vision and an integrated de-sign to successful implementation and user adoption.

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