SAP S/4HANA Controlling & Profitability Concepts

Account Assignment Concepts

  • Valuated sales
  • Separate sales

Accounting & Profit Center Insights

  • Profit contribution analysis
  • Return on capital metrics

Accrual Methods & Types

  • Target equals actual comparison
  • 2-Percentage method
  • Activity-dependent accruals
  • Activity-independent accruals

Activity Allocation & System Logic

  • Derivation of the cost element
  • Determination of the allocation amount

Activity-Based Costing Fundamentals

  • Business process analysis
  • Cost center and activity integration

Assessment Cycle Mechanics

  • Uses a secondary cost element during transfer
  • Transfers both primary and secondary costs

Automated Account Assignment T-Codes

  • Transaction code: GGB1
  • Transaction code: OKB9

CO-PA Key Components

  • ACDOCA integration
  • Cost splitting profile usage
  • Operating concern currency
  • Company code currency

CO-PA & Costing Sheet Integration

  • Condition class definition
  • Calculation type configuration

CO-PA, HANA & Ledger Integration

  • Billing document processing
  • Goods issue recording

CO-PA Operating Concern Setup

  • Operating concern currency
  • Fiscal year variant

CO-PA Valuation Strategy Elements

  • Record type definition
  • Point of valuation specification

Controlling Area Configuration

  • Operational chart of accounts
  • Fiscal year variant
  • Stores different plan data
  • Stores actual-plan variance

Cost Allocation Purposes

  • Runs simple allocations of actual data
  • Corrects secondary postings

Cost Center Document Validation

  • Line item values validated against the original document
  • Line item requires a reference to an FI document

Cost Center & Profit Center Management

  • Append node functionality
  • Reassign a cost center

Cost Estimates & Variants

  • New status for cost estimates
  • Future standard cost
  • Costing version
  • Costing variant

Cost Object Fundamentals

  • Cost object hierarchy
  • Product cost collector
  • Valuation variant
  • Costing type
  • Work in process (WIP)
  • Variance calculation

Cost of Sales Accounting

  • Presents costs and revenues
  • Aims to match revenues with their associated costs

Costing Run Outputs

  • Current cost determination
  • Standard cost calculation

Costing Sheet Configuration

  • Defined as a percentage rate
  • Defined as an equivalence number

Costing Type Functions

  • Manages price updates
  • Saves with a date key

Cross-Application Posting Options

  • Manual entry with manual allocation
  • Manual entry with no allocation

Distribution Scenarios

  • Transfers secondary costs
  • Distributes expenses

SAP S/4HANA Controlling Features

  • Costing-based profitability analysis
  • Transfer of G/L data
  • Manual entry of data
  • Utilizes Core Data Services (CDS)
  • Included in the core SAP S/4HANA license
  • Overwritable settings
  • Definable for specific cost types
  • Primary costs with G/L account integration
  • Secondary costs with G/L account integration
  • Supports separate ledgers for each valuation
  • Supports separate CO versions for each valuation

HANA: Cost Capture & Elements

  • Captures all primary and secondary cost elements
  • Integrates primary and secondary ledger accounts

HANA: Cost Object Valuation

  • Uses separate ledgers for each valuation
  • Uses separate accounts for each valuation

HANA: Profit Center Accounting

  • Integrated into the universal journal
  • Supports period and/or cost of sales accounting

HANA: Sales Order & Production Integration

  • Production order confirmation
  • Production order settlement

HANA: System Integration Points

  • Incoming invoice processing
  • Purchase requisition management

Internal Order Management

  • Defined within the controlling area
  • Assigned to an order type
  • Supports integrated planning
  • Enables overall planning
  • Handles purchase orders (entered and not yet entered)
  • Allows planning of multiple versions
  • Facilitates entry of costs and revenues

Order Type Configuration

  • Sets budget tolerance limits
  • Enables budgeting on a cost element level
  • Allows revenue postings
  • Defines default parameters for master record fields

Period-End Closing Activities

  • Assigns several segments to a cycle
  • Defines allocation for the same cost center in multiple segments

Primary Cost Management

  • Execution of assessment cycles
  • Settlement of internal orders
  • Runs activity price calculation
  • Assigns a cost component structure to the CO version
  • Business process price calculation
  • Cost center activity type price calculation

Production Order Post-Processing

  • Settles variances to CO-PA
  • Performs results analysis

Product Costing & Control

  • Relevance to Costing indicator in the operation
  • Cost indicator in the control key assigned to the operation
  • Results Analysis (RA) key
  • Costing variant for preliminary costing
  • Used for controlling individual production lots or discrete quantities
  • Ensures full cost traceability
  • Used in conjunction with a product cost collector
  • Focuses on stable and continuous production processes

Profitability Analysis (CO-PA) Benefits

  • Provides information on market segment performance
  • Determines if sales force achieved contribution margin goals
  • Analyzes revenue
  • Analyzes sales deductions
  • Splits cost of goods sold by cost components
  • Evaluates value of conditions in pricing procedure

Profit Center Accounting Elements

  • Sales deductions
  • Revenues

Results Analysis Key Dimensions

  • Profit center
  • Profitability segment

Sales Order Integration & Analysis

  • Sales order item assigned to a project
  • Profitability Analysis (CO-PA) activation
  • Simplified inventory value determination
  • Combined quantity and value flow analysis

Settlement Process Steps

  • Defines document management parameters
  • Determines whether settlement is required

Standard Price Management

  • Marks the cost estimate
  • Releases the cost estimate

Statistical Key Figures Usage

  • Used with cost centers
  • Used with profit centers

System Planning Strategy Flow

  • MRP group → strategy group → planning strategy → requirements type
  • Strategy group → planning strategy → requirements type

Time-Based Allocations

  • Applicable to cost centers
  • Applicable to statistical key figures