Table of Contents

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Preface
15
Target Audience
16
Objective of This Book
16
How to Read This Book
17
Chapter 1: Introduction to SAP S/4HANA
17
Chapter 2: Controlling in SAP S/4HANA
18
Chapter 3: Organizational Structures
18
Chapter 4: Master Data
19
Chapter 5: Overhead Controlling
19
Chapter 6: Controlling for Manufacturing Organizations
19
Chapter 7: Margin Analysis
20
Chapter 8: Margin Analysis for Customer Projects
20
Chapter 9: Margin Analysis for Service Management
20
Chapter 10: Investment Controlling
20
Chapter 11: Controlling in an Intercompany Environment
21
Chapter 12: Reporting in SAP S/4HANA
21
Chapter 13: Conclusion and Outlook
21
Appendices
21
Acknowledgments
21
1 Introduction to SAP S/4HANA
23
1.1 Deployment Models in SAP S/4HANA
23
1.1.1 SAP S/4HANA Cloud Public Edition
24
1.1.2 SAP S/4HANA Cloud Private Edition
25
1.1.3 SAP S/4HANA (On-Premise)
25
1.1.4 Hybrid Models
26
1.2 Universal Journal Innovations
27
1.2.1 Single Source of Truth
28
1.2.2 Single Data Model for Accounting
29
1.2.3 Advanced Analysis and Reporting Options
30
1.2.4 Impact on Controlling Postings and Margin Analysis
31
1.2.5 Extension Ledger for Management Accounting
33
1.2.6 The Evolution of Controlling in SAP S/4HANA
34
1.2.7 The Impact of Universal Parallel Accounting for Controlling
38
1.3 The New User Interface
39
1.4 Summary
45
2 Controlling in SAP S/4HANA
47
2.1 The Merge of Financial and Management Accounting
48
2.1.1 Journal Entries for Primary Costs and Revenues
49
2.1.2 Journal Entries for Secondary Costs
58
2.2 Financial Planning
62
2.2.1 High-Level Planning Process
63
2.2.2 Plan/Actual Reporting
64
2.3 Predictive Accounting
66
2.4 Management Accounting and Margin Analysis
70
2.4.1 Cost Center Planning and Reporting
71
2.4.2 Product and Service Planning and Reporting
82
2.4.3 Profitability Planning and Reporting
92
2.5 Reporting and Analytics
96
2.5.1 Role-Based Reporting
96
2.5.2 Compatibility Views
99
2.6 Summary
100
3 Organizational Structures
101
3.1 Organizational Structures in Finance
101
3.1.1 Company
102
3.1.2 Company Code
103
3.1.3 Controlling Area
105
3.1.4 Operating Concern
108
3.1.5 Profit Center
111
3.1.6 Functional Area
114
3.2 Organizational Units of Logistics and Assignment to Accounting
116
3.2.1 Plants
116
3.2.2 Purchasing Organization
118
3.2.3 Sales Organization and Sales Area
119
3.3 Financial Reporting Structures
121
3.3.1 Ledger
122
3.3.2 Currencies
126
3.4 Summary
129
4 Master Data
131
4.1 General Ledger Accounts and Cost Elements
133
4.1.1 Structuring Financial Accounting Using General Ledger Accounts
133
4.1.2 Primary Cost Elements
140
4.1.3 Secondary Cost Elements
141
4.1.4 Grouping and Hierarchies of Cost Elements
142
4.2 Cost Centers
145
4.2.1 Integration of the Cost Center into Other Applications
145
4.2.2 Cost Center Master
147
4.2.3 Cost Center Hierarchies
149
4.3 Activity Types
150
4.3.1 Activity Type Master
151
4.3.2 Cost Rates
153
4.4 Statistical Key Figures
156
4.4.1 Statistical Key Figure Master
157
4.4.2 Entry of Statistical Key Figures
158
4.5 Internal Orders and Projects
159
4.5.1 Internal Order Master
160
4.5.2 Project Master
165
4.6 Profitability Object in Margin Analysis
166
4.6.1 The Market Segment in the Universal Journal
167
4.6.2 Market Segment Extensibility
170
4.6.3 Substitution and Derivation Logic
174
4.7 Summary
180
5 Overhead Controlling
181
5.1 Cost Stewardship and the Role of the Cost Center/Project Manager
182
5.2 Postings for Cost Accounting in the Universal Journal
185
5.2.1 Primary Cost Postings
185
5.2.2 Secondary Cost Postings
190
5.3 Planning in SAP S/4HANA
194
5.3.1 Planning, Budgeting, and Commitment Handling
194
5.3.2 Integrated Financial Planning with SAP Analytics Cloud
198
5.3.3 Using Planned Data in Operational Processes
202
5.4 Business Transactions
203
5.4.1 Reposting and Cost Assignment
204
5.4.2 Universal Allocation
209
5.4.3 Activity Allocation and Cost Rates
225
5.4.4 Overhead Calculation
230
5.4.5 Template Allocation
234
5.4.6 Settlement
235
5.5 Reporting for Overhead Controlling
239
5.6 Summary
241
6 Controlling for Manufacturing Organizations
243
6.1 Master Data Used in Manufacturing
244
6.1.1 Material Master
245
6.1.2 Bill of Materials
251
6.1.3 Routing
255
6.1.4 Work Center
258
6.2 Cost Estimates
260
6.2.1 Creating a Material Cost Estimate
261
6.2.2 Defining Valuation Variants
266
6.2.3 Using Different Layouts to View the Costing Items
267
6.2.4 Using the Cost Component Split for Transparency
270
6.2.5 Performing a Costing Run for Multiple Materials
274
6.2.6 Sales Order?Specific Cost Estimates
279
6.3 Procure-to-Invoice
281
6.3.1 Creating a Purchase Order
282
6.3.2 Posting a Goods Receipt
283
6.3.3 Entering an Incoming Invoice
285
6.4 Make-to-Stock with Order Costing
286
6.4.1 Using the Material Cost Estimate to Set Standard Costs
287
6.4.2 Monitoring the Production Process
287
6.4.3 Work in Process
295
6.4.4 Variance Calculation
305
6.4.5 Using Actual Costing to Assign Purchase Price Variances and Production Variances
314
6.5 Make-to-Stock Using Product Cost Collectors
321
6.5.1 Creating a Cost Estimate for a Product Cost Collector
322
6.5.2 Monitoring the Production Process
324
6.5.3 Work in Process
325
6.5.4 Variance Calculation
327
6.6 Make-to-Order Process
328
6.6.1 Using the Sales Order Cost Estimate for Inventory Valuation
330
6.6.2 Monitoring the Production Process
333
6.6.3 Work in Process, Variance Calculation, and Actual Costing
334
6.7 Maintaining and Operating Assets
335
6.7.1 Estimating and Planning Maintenance Costs
336
6.7.2 Operation-Level Costing
338
6.7.3 Maintenance Reporting in the Universal Journal
338
6.8 Summary
339
7 Margin Analysis
341
7.1 Guiding Principles and Overview
342
7.2 Sales Scenarios
348
7.2.1 Master Data
349
7.2.2 Business Transactions
355
7.2.3 Sales Margin Prediction Based on Incoming Sales Order
367
7.2.4 Management Adjustment Postings
371
7.2.5 Margin Analysis Allocation Postings
377
7.2.6 Event-Based Revenue Recognition Period-End Close
392
7.2.7 Make-to-Order Scenario
394
7.3 Event-Based Revenue Recognition
400
7.3.1 Purpose and Principles
400
7.3.2 Parallel Valuation
407
7.3.3 Contract and Billing Methods
408
7.3.4 Realization Methods
409
7.3.5 Event-Based Revenue Recognition Apps
410
7.3.6 Availability of Event-Based Revenue Recognition
416
7.4 Summary
417
8 Margin Analysis for Customer Projects
419
8.1 Professional Service Scenario
420
8.1.1 Simplified Project Setup
420
8.1.2 Project Planning
429
8.1.3 Business Transactions
430
8.1.4 Period-End Close with Manual Accruals
443
8.1.5 Reporting
447
8.2 Project-Based Sales Scenario
451
8.2.1 Master Data Setup
452
8.2.2 Project Cost Planning
455
8.2.3 Business Transactions
457
8.2.4 Period-End Close
462
8.2.5 Reporting
465
8.2.6 Defining Market Segments for Customer Projects by Settlement Rule and Realignment
466
8.3 Project Settlement to Market Segment Scenario
472
8.3.1 Master Data Setup
473
8.3.2 Project Planning
476
8.3.3 Actual Postings and Period-End Close
478
8.3.4 Reporting
482
8.4 Summary
483
9 Margin Analysis for Service Management
485
9.1 New Architecture for Service Management
486
9.1.1 Financial Mirror Table for Service Document Items
486
9.1.2 Derivation of Financial Attributes
488
9.1.3 Integrated Margin Analysis
489
9.1.4 Financial Plan Data for Service Orders
490
9.1.5 Service Order Bundles for an Aggregated View
490
9.2 Guiding Principles and Financial Value Flow
491
9.3 Service Order Business Transactions
492
9.3.1 Service Order Master
493
9.3.2 Service Order Time Confirmation
495
9.3.3 Expense Item Confirmation
501
9.3.4 Spare Part Confirmation
503
9.3.5 Service Billing
505
9.3.6 Revenue Recognition Period-End Close
507
9.3.7 Service Bundle Scenario
510
9.4 Service Contract
512
9.5 New Reporting Insights for Service Management
515
9.6 Advanced Execution Service Orders
518
9.6.1 Scenario Overview
519
9.6.2 Activation and Configuration
522
9.6.3 Advanced Execution Business Scenarios
523
9.7 Summary
546
10 Investment Controlling
547
10.1 Investment Programs and Assigned Projects and Orders
548
10.2 Planning and Budgeting
551
10.2.1 Project Planning for Capital Expense Projects
552
10.2.2 Overall Plan
553
10.2.3 Cost Element Planning
554
10.2.4 Investment Planning using SAP Analytics Cloud
556
10.2.5 Budget Management and Availability Control
558
10.3 Settlement and Reporting
561
10.3.1 Assets under Construction
561
10.3.2 Assets under Construction with Universal Parallel Accounting
566
10.3.3 Investment Reporting
568
10.4 Summary
571
11 Controlling in an Intercompany Environment
573
11.1 Intercompany Sales and Stock Transfers
574
11.1.1 Intercompany Processes in Costing
576
11.1.2 Setting Up Intercompany Processing
580
11.1.3 Determining the Quantity Structure in an Intercompany Sales Process
582
11.1.4 Rolling Up the Costs in an Intercompany Process
587
11.1.5 Calculating Actual Costs for an Intercompany Process
590
11.1.6 Stock in Transit
592
11.2 Intercompany Cost Allocation Postings
592
11.2.1 Process Overview and Posting Logic
593
11.2.2 Business Transactions
596
11.2.3 Periodic Intercompany Billing
603
11.3 Group and Profit Center Valuation with Universal Parallel Accounting
607
11.3.1 Advanced Intercompany Sales and Stock Transfer
607
11.3.2 Group Valuation
611
11.3.3 Profit Center Valuation
617
11.4 Summary
620
12 Reporting in SAP S/4HANA
623
12.1 SAP Fiori and the Virtual Data Model
624
12.2 Global Hierarchies
628
12.2.1 Financial Statement Versions
628
12.2.2 Account and Cost Element Hierarchies
632
12.2.3 Cost Center Hierarchies
633
12.2.4 Custom Hierarchy Types
635
12.3 Flexible Hierarchies
636
12.4 Semantic Tags
641
12.5 Key Figure Reporting
645
12.6 Compatibility Views: Report Writer
647
12.7 Summary
649
13 Conclusion and Outlook
651
A Key Controlling Transactions
665
B Key SAP Fiori Applications for Controlling
671
C The Authors
675
Index
677