SAP CO S/4 HANA 2023 -Complete End to End Scenario of SAP CO

Added LATEST- Universal Parallel Accounting (UPA) SAP CO S/4 HANA 2023 -Complete End to End Scenario of SAP CO

Added LATEST SAP CO S/4 HANA 2023 -Complete End to End Scenario of SAP CO

SAP S/4 HANA 2023: In-depth CONTROLLING Module Training

Syllabus Overview

Overview and Significance in the SAP Environment

This course offers comprehensive training on the CONTROLLING module in SAP S/4 HANA 2023, focusing on its role and significance within the SAP ecosystem. Participants will gain a thorough understanding of how the CONTROLLING module integrates with various other SAP modules to streamline financial management, cost accounting, and profitability analysis.

Basic Settings

Enterprise Structure

• Company: Learn the definition and role of a company in SAP.

• Company Code: Understand the importance of company codes and how they are configured.

• Plant and Storage Location: Explore the setup and assignment of plants and storage locations.

• Sales Organization, Distribution Channel, and Division: Grasp the concepts and configuration steps.

• Shipping Point: Define and assign shipping points.

• Definition and Assignment of Organizational Structures: Master the process of defining and assigning organizational structures across various modules.

Basic Settings Across Modules

• FI (Financial Accounting): Understand the integration and basic settings required for FI.

• MM (Materials Management): Learn about MM integration and its fundamental configurations.

• SD (Sales and Distribution): Explore the basics of SD settings and their significance.

• PP (Production Planning): Grasp the basic configurations of PP and its integration points.

• PS (Project Systems): Learn about the settings in PS and their importance in integration.

Integration Configuration

• FI-MM Integration: Configuration and testing of integration between Financial Accounting and Materials Management.

• FI-SD Integration: Learn the integration settings for Financial Accounting and Sales and Distribution.

• CO-PP Integration: Understand how Controlling integrates with Production Planning.

• CO-PS Integration: Grasp the integration settings between Controlling and Project Systems.

Integration Testing Cycles

• Procure to Pay (MM Cycle): Understand the end-to-end process and integration testing for the MM cycle.

• Plan to Production (PP Cycle): Learn about the PP cycle and its integration testing.

• Order to Cash (SD Cycle): Explore the SD cycle and its testing for integration.

Basic Configuration Settings and Overhead Accounting

• Cost Component Structure: Learn to design main and auxiliary cost component structures.

• Costing Sheet Design: Understand quantity and percentage-based costing sheet design.

• Template Allocation Design: Design templates for standard cost calculation across various scenarios.

• Primary Cost Component Split: Master the configuration of primary cost component splits.

• Profit Centers and Cost Centers Design: Design profit centers and cost centers based on business scenarios.

• Cost Center Assessment & Distribution: Learn the methods of cost center assessment and distribution.

• Plan and Actual Cost Splitting: Understand the process of splitting planned and actual costs.

• Plan and Actual Activity Rate Calculation: Calculate plan and actual activity rates.

• Revaluation of Orders and Product Cost Collectors: Revalue orders and product cost collectors for accurate costing.

• Full Integration with Other Modules: Integrate fully with FI, MM, SD, PP, and PS modules with OBYC & VKOA mapping.

Universal Allocation: Assessment & Distribution Cycles

Product Costing Scenarios

Product Cost by Order

• Make to Stock Scenario: Learn about the Make to Stock costing process.

• PP Module - Process Order: Understand process orders in PP and their integration with CO.

• CO Module - CO Production Order: Master CO production orders for accurate costing.

Product Cost by Sales Order

• Make to Order Scenario: Understand the Make to Order process.

• Valuated with SO Controlling Object - Production Order: Learn the valuation with SO controlling object in production orders.

• Non-Valuated with SO Controlling Object - Production Order: Explore the non-valuated scenarios.

Product Cost by Period

• Make to Stock Scenario: Learn the period costing process for Make to Stock.

• Without Reporting Point - Product Cost Collector: Understand cost collection without reporting points.

• With Reporting Point - Product Cost Collector: Learn to manage costs with reporting points.

Product Cost Engineer to Order (with PS Integration)

• ETO Scenario with Production Order: Understand the product costing flow for Engineer to Order scenarios.

  
  

Activity-Based Costing (CO-OM-ABC)

• Product Cost ABC Costing Process: Understand the process and template allocation for ABC costing.

Mixed Costing

• Raw Materials Multiple Procurement Process: Learn mixed costing for raw materials.

• SFG Material Procurement and Manufacturing Process: Explore mixed costing for SFG materials.

• FG Materials Multiple Manufacturing Process: Understand the process for FG materials.

Various Costing Processes

• Sale/Depot Plant Costing Process: Learn the costing processes for sale and depot plants.

• Special Procurement Process: Understand costing for special procurement processes.

• Additive Cost: Learn to manage additive costs in various scenarios.

• Joint Production & By-Product Costing: Master the costing for joint production and by-products.

• CO-Product Costing: Understand the intricacies of CO-product costing.

• Subcontracting Processes: Learn the costing processes for subcontracting.

• External Operation Process: Understand the external operation processes.

Material Ledger with Actual Costing

Material Ledger Overview

• Significance in SAP S/4 HANA: Understand the importance of Material Ledger in actual costing.

Currency Configuration in Material Ledger

• Company Code Currency: Learn to configure company code currency.

• Group Currency and Other Currencies: Understand the configurations for group and other currencies.

Material Ledger Activation with Multiple Valuations

• Valuation Approaches: Introduction to legal, group, and profit center valuations.

Group Valuation

• Markup Costs and Standard Cost: Understand group valuation with markup costs.

Profit Centre Valuation

• Transfer Pricing Logic: Learn about markup costs and transfer pricing logic.

Intercompany and Intracompany Transfers

• Company Code Transfers: Understand intercompany transfer pricing and valuations.

• Profit Centre Transfers: Learn about intracompany transfer pricing and valuations.

Distributing Consumption Variances

• Conceptual Clarity: Understand the concepts behind consumption variances in SAP.

• CKMDUVMAT and CKMDUVACT: Learn the processes for distributing material and activity differences.

  
  

Actual Costing Accounting Entries

• Deep Dive into Accounting Entries: Understand the accounting entries generated through actual costing.

Material Price Analysis (CKM3)

• Comprehensive Analysis: Learn to analyze material prices comprehensively.

Cumulative Material Ledger (CKMLCPAVR) Functionalities

• Introduction to CKMLCPAVR: Understand cumulative inventory management and its differences from standard management.

Actual Costing in CKMLCPAVR

• Impact on Material Ledger Postings: Learn the effects on material ledger postings and periodic unit price calculations.

COPA (Controlling Profitability Analysis) - Margin Analysis

Introduction to COPA

• Overview of Controlling Profitability Analysis: Understand the basics of COPA in SAP S/4 HANA.

Account-Based COPA

• Flow from Other Modules: Learn the flow of data from other modules to account-based COPA.

COGS Split

• Integration of Cost Component Structure: Understand the integration of cost components in COGS determination.

Price Variance Split

• Methods for Splitting Price Variance: Learn various methods to split price variance.

Predictive Accounting

• Introduction to Predictive Accounting: Understand the concepts of predictive accounting in SAP.

Attributed Profitability Analysis

• Relation to Product Costing: Learn how cost centers, internal orders, and production orders relate to product costing.

COPA Derivation

• Configuring Derivation Rules: Understand the process of configuring and customizing derivation rules.

COPA Assessment

• Techniques for Distribution: Learn techniques for distributing costs and revenues in COPA.

COPA Realignment

• Realignment Scenarios: Understand real-life scenarios where COPA realignment is necessary. Fiori Apps for COPA

• Introduction to SAP Fiori: Understand the role of Fiori apps in COPA analysis.

Reporting and Analytics

• Tools and Techniques: Learn tools and techniques for extracting insights from COPA data.

By the end of this training, participants will have a profound understanding of the Product Costing, Material Ledger, and COPA functionalities in SAP S/4 HANA. They will be equipped with the necessary knowledge and skills to configure, analyze, and optimize the Material Ledger for various business scenarios, ensuring a seamless integration with other SAP modules.

ALSO

SAP S/4HANA has revolutionized the traditional cost allocation process by introducing Universal Allocation through Fiori apps. This change streamlines the allocation process, providing a more intuitive and user-friendly experience. Here’s a more comprehensive insight into Universal Allocation in SAP S/4HANA via Fiori apps:

                                                                                         NEW TOPIC ADDED

                                                              Universal Parallel Accounting (UPA) in SAP S/4HANA

1. Why UPA is Needed

1.1 Traditional Challenges in SAP ERP

In earlier SAP ERP systems, companies used multiple ledgers in the General Ledger (GL) to comply with different accounting standards (IFRS, local GAAP, tax). However, this flexibility was not extended consistently across submodules such as Controlling (CO), Asset Accounting (AA), or the Material Ledger (ML).

1.2 The SAP Breakthrough – Universal Parallel Accounting (UPA)

UPA in SAP S/4HANA resolves these challenges by redesigning the system architecture to support multiple ledgers across all key modules.

Key innovations include:

• Native Multi-Ledger Support in FI, CO, AA, ML, and COPA.

• Real-Time Posting – Every transaction updates all relevant ledgers simultaneously.

• Harmonized Architecture – A unified platform for legal, group, and management reporting.

2. Core Capabilities of UPA

2.1 Seamless Ledger-Specific Integration

UPA ensures consistent processing across modules:

• General Ledger – Multi-ledger postings for all transactions.

• Asset Accounting – Ledger-specific valuation and depreciation.

• Controlling – Cost centers, allocations, and assessments by ledger.

• Product Costing – Ledger-specific standard and actual costs.

• Inventory Valuation – Multi-ledger material valuation.

• Event-Based Production Costing – Real-time cost postings per ledger.

• Margin Analysis (COPA) – Ledger-specific profitability analysis.

2.2 Flexible Costing per Accounting Principle

Organizations can:

• Maintain separate standard, planned, and actual costs per ledger.

• Run ledger-specific cost estimates aligned with GAAP or IFRS.

• Configure distinct cost component structures, costing variants, and overhead rates.

2.3 Ledger-Specific Asset Valuation

• Multiple depreciation areas tied to specific ledgers.

• Different methods and useful lives by standard.

• Separate depreciation runs for IFRS, Local GAAP, and Group.

2.4 Event-Driven Finance

Every business event—goods issue, production confirmation, or settlement—triggers real-time postings in all ledgers. This ensures:

• Real-time WIP, variances, and overhead.

• Faster insight into production and financial performance.

3. UPA Architecture

3.1 Ledgers and Valuation Views

• Leading Ledger (0L) – Typically used for IFRS.

• Non-Leading Ledgers – For Local GAAP, Group reporting, Profit center view.
  Each ledger is assigned a valuation view for legal, group, or internal reporting.

3.2 Universal Journal (ACDOCA)

UPA is built on the Universal Journal (ACDOCA), the single source of truth.

• All modules post to one table.

• Real-time, valuation-specific reporting.

• Full auditability and transparency.

4. Real-World Scenarios

4.1 Multi-Ledger Asset Depreciation

• Asset purchased at ₹1,00,000.

• IFRS (0L) → Straight-line, 5 years.

• Local GAAP (2L) → Declining balance, 3 years.

• System posts both sets of depreciation automatically, side by side.

4.2 Ledger-Specific Production Orders

• IFRS values raw materials at standard cost.

• Group ledger uses transfer prices.

• WIP and variances are calculated separately for each ledger.

4.3 Event-Based Costing

Costs from goods issue, production confirmation, and receipts are posted in real time per ledger, eliminating manual reconciliation.

5. Configuration Highlights

• Universal Journal (ACDOCA) ensures centralized posting.

• FINSC_LEDGER App allows creation and configuration of multiple ledgers with up to five currencies.

• Event-Based Posting replaces batch jobs, posting WIP, variances, and overhead instantly.

• Costing Variants are set per ledger for legal, group, and profit center requirements.

6. Material Ledger in UPA

• Multi-currency support (company code, group, hard, index, global).

• Multi-valuation reporting for Legal, Group, and Profit Center views.

• Closing runs (CKMLCP) executed per ledger (e.g., 0L for IFRS, 2L for GAAP).

7. Manufacturing and Costing Scenarios

• Make-to-Stock (MTS) → Uses Product Cost Collectors with real-time WIP and variances.

• Make-to-Order (MTO) → Costs posted per ledger in real time.

• Co- and By-Products → Equivalence numbers and reduced values handled per ledger.

• Subcontracting → Component issue, service charges, and receipts posted instantly across ledgers.

8. Transfer Pricing

• Intercompany → Arm’s length compliance, tracked via Material Ledger.

• Intracompany → Profit center reporting with internal profitability analysis.

9. COPA and Profitability Analysis

• Account-based COPA integrated with UPA.

• Real-time flows of revenue and cost.

• Multi-ledger profitability views for legal, group, and management reporting.

10. Month-End Closing

• Period-end bottlenecks removed with event-based postings.

• Closing is now a review task rather than reconciliation-heavy.

• Faster close cycles improve accuracy and compliance.

11. Key Benefits of UPA

• Real-time WIP and variance posting per ledger.

• Compliance with IFRS, Local GAAP, Group standards.

• Ledger-specific asset accounting.

• Integrated reporting across FI, CO, ML, and AA.

• Accurate COGM and COGS via ledger-specific CKMLCP.

• Transparent Universal Allocation.

• Faster, reliable financial closing.

12. Conclusion

Universal Parallel Accounting (UPA) in SAP S/4HANA delivers true end-to-end parallel accounting across Finance and Controlling. Combined with event-based costing, it ensures real-time, reconciled, and compliant financial reporting. Businesses gain transparency, efficiency, and agility in managing costs, assets, allocations, and profitability across multiple accounting principles.

Universal Allocation in Fiori Apps for Cost Center Allocations:

1. Overview: Universal Allocation provides a unified approach to manage various allocations like distribution and overhead allocation (assessment). With Fiori, the user experience is enhanced, eliminating the need to juggle multiple SAP GUI transactions as was the case in ECC. This promotes operational efficiency and better visualization.

2. Manage Allocations App (App ID: F3338):

   • Purpose: To define and manage allocation cycles and segments.

   • Features:

     • Single interface to create and modify allocation cycles.

     • Visualization of existing cycles for all authorized contexts.

     • Maintenance of multiple types of allocation rules at the segment level.

     • It allows the definition of sender and receiver criteria, allocation methods, and segment-specific parameters.

3. Run Allocations App (App ID: F3548):

   • Purpose: Execution of the defined allocation cycles.

   • Features:

     • Centralized platform to initiate allocation runs.

     • Users can set up run worklists that contain standalone cycles or a sequence of cycles.

     • Allows the execution of test runs and real runs.

     • Provides a log of executed runs for review.

4. Allocation Results App (App ID: F4363):

   • Purpose: Offers a detailed analysis of executed allocation runs.

   • Features:

     • Multiple views for a comprehensive analysis:

       • By Run: Displays a list of completed run jobs with their statuses and a drill-down capability to access detailed reports.

       • By Cycle: Shows the status of cycles run for selected fiscal periods.

       • Run Report: Provides intricate details of sender-receiver journal entries, messages, and a Network Graph control for visual representation of allocations.

5. Allocation Flow App (App ID: F4022):

   • Purpose: Visualization of allocation results.

   • Features:

     • Displays allocation results in a Network Graph format.

     • Graphical representation assists users in understanding the flow of allocations between sender and receiver objects.

     • Provides filtering options to view specific allocation interactions.

6. Integration with SAP GUI:

   • Post the allocation process in Fiori, the results can be viewed in traditional SAP GUI reports such as S_ALR_87013611. This report will showcase detailed sender and receiver cost center data, bridging the gap between the new Fiori experience and traditional SAP GUI reporting.

In Conclusion:

Universal Allocation in SAP S/4HANA through Fiori apps provides businesses with a holistic and streamlined approach to manage cost allocations. It offers the agility to adapt to business needs while ensuring transparency and clarity in financial postings. Fiori apps, with their intuitive design, make the process more manageable, visual, and aligned with modern-day user experiences. By combining the strength of S/4HANA with Fiori, businesses can achieve more accurate and efficient cost allocations, leading to better financial reporting and decision-making.