Ask a Fixer Q&A

Q&A: Enable Cost Component Split in G/L Accounts – Before SAP S/4HANA!

The Cost Component Split allows for granularity of the cost drivers in your inventory and cost of goods sold. The cost components can be seen in various reports in Product Cost Planning and Material Ledger. However, this breakdown has not been available in the General Ledger before SAP S/4HANA. By utilizing a Custom Enhancement, the Cost Component Split by G/L Account can be available in the ECC system. This will provide suitable transparency about cost drivers in the General Ledger, particularly for companies that do not plan an S/4 conversion for a few years, and also positions them with a Splitting Structure that is compatible for an eventual S/4 Conversion. This functionality can be used to split cost components for COGS accounts as well as Inventory accounts (which means that you can get transparency into how much material stock or Fixed costs are sitting in inventory). Also, this functionality can be used whether a company uses Material Ledger or not (i.e. it can be used for Standard and/or Actual cost components). Watch this pre-recorded live Q&A with FI/CO expert Rogerio Faleiros to learn:

  • The things to consider when deciding whether to split COGS in the G/L Accounts.

  • How to map the original COGS account to the Cost Component Split Accounts.

  • A demo of the Cost Component G/L Split program and how to view the General Ledger postings.

  • The Reports that can be used to display the COGS documents that have been split.

Q&A: Setting Up Transfer Pricing Between Plants

Transfer pricing is a widely used functionality which sets a price between affiliated entities. It is typically setup for cross border transactions and need to conform with the tax laws in the respective countries. However, in SAP Transfer Pricing can also be set up between profit centers (and plants). In this regard it is used as an internal mechanism that treats every transfer between profit centers as a sale and helps facilitate full management reporting by a plant, or group of plants.

Attend this live Q&A with FI/CO expert Paul Ovigele, to learn the following:

  • What needs to be set up for Transfer Pricing between Profit Centers?

  • How is standard cost calculated for Profit center Transfer Pricing?

  • How does a Transfer Pricing Posting look in the profit center View?

  • What are the options to convert to Profit Center Transfer Pricing in S/4 HANA?

Q&A: Deep Dive into the Universal Journal

By now, everyone has heard about the Universal Journal. It is a revolutionary change of the table structures in the Financials modules. Although the conceptual understanding is widely spread, how about the practical aspects of it? How can you get better, more integrated Realtime reports across the various modules such as Financial Accounting, Controlling, Material ledger and Profitability Analysis among others? 

Watch this prerecorded Webcast Q&A with FI/CO expert Paul Ovigele, to learn the following:

  • How does the Universal Journal replace previous FI/CO reporting?

  • What reporting options do you have with the Universal Journal Table ACDOCA ?

  • What are the new functionalities of S/4 HANA that can be viewed in the Universal Journal?

  • What are the Multidimensional Capabilities of the Universal Journal?

Q&A: Transitioning from Costing to Account Based CO-PA

SAP Help

THIS PRESENTATION WITH Paul Ovigele WILL COVER:

  • What is the difference between Costing and Account Based CO-PA?

  • What are the advantages and disadvantages of Costing vs. Account Based CO-PA?

  • What are the implications of activating both types of CO-PA?

  • What are the steps to transition from one type of CO-PA to the other?

Speaker:

Paul Ovigele, FI/CO Expert

Watch the prerecorded webcast by pressing play:

Get answers to the following questions asked in our Q&A:

Q: If you have BW based on Costing Based CO-PA, will this work for Account Based CO-PA?

Q: Can you still use Costing Based COPA in S/4 HANA?

Q: Is there an advantage of going to Account Based COPA before S/4?

Q: Comment on the 1809 release and the sort of merge of account based and cost based COPA

Q: Why activation of actual costing is optional in S4 HANA and can you provide a specific example?

Q: Did I hear you say there is no quantity from SD billing in universal journal in account based PA? 

Q: Costing based COPA allows for than one UoM per transaction.  (e.g.  25 bottles or 2500ml)  In ECC6 it seems account based Copa allows only one UoM per transaction.     How about S4Hana?

Q: If we currently have Costing Based COPA, and if we will shift to dual Costing+Account Based, how will historical data be migrated?

 

WHAT IS "ASK A FIXER" WEBCAST SERIES?

Ask a Fixer is a live ASUG-hosted Q&A session with one of ERPfixers’ top-rated SAP experts (“Fixers”) in a specific module or topic. In this real-time discussion session, you have the opportunity to pose your specific questions to a Fixer, who will provide an immediate answer during the forum. This is a great way to get quick answers to your pressing issues, as well as learn from questions posted by other users during the forum.

Q&A: What You Should Know About Converting to Material Ledger

Material_Ledger_Converting.png

THIS PRESENTATION WITH Paul Ovigele WILL COVER:

  • How to prepare your system for a Material Ledger conversion.

  • What questions you need to ask when considering which Material Ledger functionality will be beneficial to your organization.

  • What criteria you can use to determine whether to convert to Material Ledger before or after an S/4 HANA conversion.

  • Typical mistakes that occur with a Material Ledger implementation.

  • What is the recommended point in time in the month/year to convert to Material Ledger?

Speaker:

Paul Ovigele, FI/CO Expert

Watch the prerecorded webcast by pressing play:

Q: Can you activate an additional currencies alongside a Material Ledger conversion?

A: You can activate parallel currencies alongside an ML conversion, but if you want historical data to be populated with the parallel currencies, you will need to do an SLO conversion as well

Q: Can you phase a Material Ledger conversion, for example based on one or more company codes, at different times?• Does Actual Costing work with Split Valuation?

A: Yes, you can phase a Material Ledger conversion, one company code at a time, as long as all plants in that company are converted as well. Note that if you do this, and if you use actual costing, the variances from a "non-ML activated" company will not be transferred to the company that has Ml active. Also note that if you are moving to S/4 HANA you have no choice but to activate all companies.

Q: When you migrate historical data to Material Ledger, does this mean that prior postings are revalued to Actual Cost?

A: No. The migration of historical data only translates Inventory and Purchase Order history into parallel currencies. It does not revalue inventory to Actual Cost retrospectively

Q: Is it better to convert to Material Ledger before or after migrating to S/4 HANA?

A: It depends. If there is a business requirement to have Material Ledger before an S/4 HANA conversion, then it is better to convert beforehand so that you can get used to the functionality.

Q: Does this also include PM orders and other orders not just PP orders?

A: Conversion to ML is for Manufacturing Orders and not PP orders. This is because Manufacturing Orders lead to the creation of inventory (settlement rule type is "MAT") while PP Orders are usually settled to a Cost Center.

Q: By Closed you mean CLSD the Orders?

A: It is better to either archive or set the deletion flag (DLFL) or Deletion Indicator to the production orders, so that they are not considered for an ML Conversion.

Q: Even costing view is changed too when data is converted for ML....correct?

A: Only the Accounting 1 view of the Material master is changed when you convert to Material Ledger. At this point, the Costing View remains the same.

Q: What if RM price control is V? Does this need to be converted to S?

A: If the Raw Material price Control is "V" (Moving Average, it does not need to be changed to "S" (Standard Cost) if you are not doing Actual Costing. However, if the Price Control is "V" then you will not be able to run the Actual Costing program at the end of the month (this is because the Materials with "V" are already at an "Actual Cost". Note that for several reasons (including the timing of Goods Receipts of Raw Materials relative to their consumption in Finished Goods), SAP recommends that if you are using Actual Costing, ALL Materials should have a price control of "S".

Q: This slide of tables old and new applies if ML is already active but transfer to HANA?

A: It depends. If the Old tables begin with "CKML…" or "ML…", then they only relate to companies with ML already active. However, the old tables like MKPF, MSEG, MBEW, QBEW, OBEW, etc. apply to everyone.

Q: What if ML is not active but changing to S4 HANA which has ML? Then how tables from Old ECC tables to New tables?

A: In that case the old ECC tables affected will be the xBEW(H) tables as well as the MKPF, MSEG and PO History tables will populate their respective ML Tables

Q: If Std. Cost (VPRS) is used for COPA , then how Actual cost is linked to COPA?

A: If you are in the ECC system (or use Costing Based CO-PA in S/4 HANA) there are configuration steps which can link the Actual Cost to COPA value fields. Note that these steps do not depend on the Sales Condition. Basically, they take the Actual Cost per unit and multiply by the quantity shipped. Transaction KE27 is then run to populate the respective Value fields. For Account Based CO-PA in S/4 HANA, the Cost of Sales Account (or Cost Component Accounts) are revalued by their proportional variances in Material Ledger.

Q: We have multiple controlling areas (one controlling area per company code) as per old SAP design.  Do we need to first convert to single controlling area before activating Material Ledger.  We are on ECC 6 EHP8.

A: It is technically possible to activate Material Ledger, even if you have multiple controlling areas. However, SAP is moving customers towards consolidating their Controlling Areas (either by using Central Finance or via a Greenfield implementation) so it is better to convert to a single Controlling Area first. Also, with multiple Controlling Areas, any transfers between companies in different controlling areas will not lead to a revaluation of cost in the receiving Controlling Area.

Q: How can FIFO be used with the Material Ledger and Actual Costing?

A: FIFO can be used with or without Material Ledger. There are several configuration steps for this. However, with Material Ledger, the FIFO layers will be based on Actual Cost.

Q: Where to switch off Statistical MAP in ECC?

A: This is done in S/4 HANA with the program "SAPRCKM_NO_EXCLUSIVELY_LOCKING"

Q: Our client wants to convert to actual costing in S4 but they want to know if it is possible to change standard price for materials and activities within the period instead of during month end?

A: Yes, you can change the standard price mid-month in S/4 HANA. Note however, that this leads to mid-month revaluation of inventory which will be adjusted when the Actual Cost is run.

Q: If you don't have actual activity prices until the end of the year, could we go back through and post actual activity prices retroactively for periods 1-12 and use this cumulative AVR to rerun actual costing where it would take these actual activity price differences from the prior periods into account to calculate actual costs as of 12/31.

A: I have not tried this before, but it is possible in theory. The Alternative Valuation Run (AVR) can cumulate the costs from previous months and apply its own logic to the cost calculation. The thing you need to use Parallel COGM to calculate the new Activity price, or if you can use the same ledger for this purpose.


WHAT IS "ASK A FIXER" WEBCAST SERIES?

Ask a Fixer is a live ASUG-hosted Q&A session with one of ERPfixers’ top-rated SAP experts (“Fixers”) in a specific module or topic. In this real-time discussion session, you have the opportunity to pose your specific questions to a Fixer, who will provide an immediate answer during the forum. This is a great way to get quick answers to your pressing issues, as well as learn from questions posted by other users during the forum.

Q&A: Costing vs. Account Based CO-PA – Understanding the Differences In ECC & S/4 HANA (Part 1)

SAP Help

THIS PRESENTATION WITH Marjorie Wright WILL COVER:

  • What is the difference between Costing and Account Based CO-PA?

  • What are the advantages and disadvantages of Costing vs. Account Based CO-PA?

  • What are the implications of activating both types of CO-PA?

  • What are the steps to transition from one type of CO-PA to the other?

  • Which type of CO-PA is compatible with the Universal Journal in S/4 HANA?

  • How much CO-PA detail is now posted to the Universal Journal?

Speaker:

Marjorie Wright, FI/CO Expert, SimplyFI-CO, LLC

Watch the prerecorded webcast by pressing play:

Q: I have heard that there is something called "Combined Profitability Analysis". Will this also be available in the Universal Journal?

A: Combined Profitability Analysis is a really interesting feature. It’s been around even before S/4 HANA. And the general advice on that feature is it was created by the support people at SAP not by the developers. It was a way for people to have account based and cost based data in one table for reporting. Combined COPA will not be in ACDOCA it has it’s own table structure and reporting feature.

Q: With Attributed profitability segment, what happens when there is a change to one of the characteristics? Does this change get reflected in the Universal Journal?

A: The change does get reflected. It is always possible between the time of creating the settlement rule for an object and the actual settlement it is always possible for a characteristic value to change or for additional characteristic values to be present at settlement. So those will be captured with the real posting to the profitability settlement, and they will be in ACDOCA for reporting purposes.

Q: If a company used Costing Based in ECC, it is not as simple as turning on Account Based CO-PA. There are a lot of "posting" changes that have to happen, correct? How much work is it?

A: Yes you’re right, they are not exactly 1/1 in alignment. So you really have to determine your business process and your cost based CO-PA. For example, there is a KE21N where you can manually create a posting to cost based CO-PA that was not allowed for cost based and would not be allowed going forward. So you’d have to look at your business reason for using a feature like that and find an alternative way around it. You would need to spend some time looking at your historical data and determining how that gets migrated. There isn’t a really good tool provided by SAP right now migrate cost based CO-PA data to the Universal Journal. I think Central Finance has some features so hopefully they’ll make it over to the non-central Finance. Maybe in next year’s release. Yes we definitely have to spend a little time looking at those other processes and determining how we’re going to meet it in a non cost based CO-PA environment.

Q: What if you are shipping from DCs or ICs?  Do the variances and CCS flow through?

A: They should. There are a couple business add ins that might help with that. To use an alternative cost estimate or specifically in drop ships where there are no post goods issue. There are two new business add ins that will help address those problems.

Q: In the configuration screens you showed for the COGS and Prodn Variance accounts, there is a Default field on the right hand side of the screen, what is that for?

By checking the default box for an account, you’re indicating that if there’s something you missed in your mapping. So let’s use the cost for example, if there’s some other cost component that has a small value and you don’t want it to have it’s own GL account number, the default check box means include that value here. So we can say any cost component not specifically assigned to a cost element or a GL account in that view, the default check box would mean put that value here.

Q: How do we get the CO-PA characteristics posted to ACDOCA in S/4 HANA?

A: So the system is going to be deriving characteristics for CO-PA the same way it always has, we have a derivation strategy. When we generate our operating concerns or regenerate our operating concerns, ACDOCA is extended with a column for each characteristic of the operating concern. The system is just accumulating the value the same way it always has been using the derivation strategy except now instead of going to our CO tables, it’s transferring those characteristic values to ACDOCA.

Q: Is there possible the integration between Account Based COPA and others ledgers besides the leading ledger (0L)? For instance, if I want to use more parallel ledgers, am I able to use that information as the base to a COPA Report?

A: The only thing that would be different across parallel ledgers would be the valuation. In ACDOCA all ledgers are listed they’re just a separate document. I believe the value would be there, I might want to do a quick test on that to confirm it, but since each ledger is a separate line in ACDOCA, I think the characteristics are going to be present.

Q: To get all this extra "CO-PA Costing info" in ACDOCA sounds like there can be a lot of extra config steps to analyze and complete.

A: Yes, that’s a good observation. If we think back to the complexity of configuring actual posting for cost based CO-PA, those of you who are familiar with it you can visualize the configuration, there was a separate folder each kind of activity; with order settlement was it FI, what was the source of the activity. So now I don’t need all of those steps, that was a huge folder for actual costing cost based CO-PA, now I need two things. Maybe some variations of those two things. And those two things are the cost of consoled refinement, the splitting structure for that, and the splitting structure for production variances. So it may feel like it's extra config, but to me the cost of consoled refinement and the production variant splitting, they replace that long menu for actual posting in the cost based CO-PA config, so I think it's a win.

Q: What's the benefit using KE24 instead of using any General Ledger Report when using CO-PA account based?

A: If you’re working with account based CO-PA, then KE24 is going to look just like your your FI documents, specifically new GL because they’re the same. Account based COPA only gets a posting when financial accounting gets posting. One of the benefits of people who like to tick and tie. So perhaps in KE24 if I just want to see values by a specific characteristic, and here we’re talking about a non-HANA system. If I want to see values by strategic business unit, that’s not going to be in my general ledger report, because it was only captured in CO table in a non-HANA system. In S/4 HANA we can say that there’s no benefit of using KE24, because ACDOCA holds all of the information.

Q: What replaces KE21N for account based in HANA?

A: KE21N was not available before HANA, F simulation as an actual posting and we weren’t allowed to create posting in account based COPA that did not come from FI, they have to tie. So I think the simulation transaction is still alive and well in HANA. The KE21F simulation can toggle between cost based simulation because they’re often we are trying to prove out our derivation strategy. If KE21S is not in the menu, you an always just simulate your derivation strategy. N was never available for account based COPA, if F is not still there the alternative method would be to simulate the derivation strategy.

Q: So in S4/HANA, the Operating Concern has to be re-generated after the S4 HANA Conversion steps are completed?

A: This question can be answered in Paul Ovigele’s session about conversion (Part 2 to this webcast). He is the expert on conversion and has done several. Register for part 2 to this webcast HERE.

Q: We currently use costing based COPA to provide CM reports for comparison of actual to budget.  How will we be able to load Plan/Budget data into Account Based COPA?

A: Plan values are still on my open concern list. There is an equivalent to ACDOCA, there’s an ACDOCP table. However, on the account based side, all of the planning needs to come from the new integrated BPC planning product. So we don’t use the same planning tools we knew and loved from the ERP system. That’s still an open question for me to see the SAP address how can we streamline our planning process for COPA.

Q: Can characteristic realignment (KEND) still be done to change history?

A: It can be but it’s still imperfect. The characteristic realignment is still available but many features that we relied on in the legacy SAP system are still on the development list for S4 HANA. Some characteristics can be realigned , others still under development.

Q: In ECC, when you post to a cost center and CO-PA at the same time, the cost center posting is statistical. In S/4 HANA with Attributed profitability segment on a cost center, is the cost center posting real or statistical?

A: In that case, the cost center posting would be real. SAP still uses the same logic of one real CO accounts assignments, so the attributed profitability segment would be the statistical object and the cost center would be the real object. At the time of assessments, most likely for the cost center at period ends, going from cost center to profitability segment, the probability segment would then become the real cost object.

Q: Can the COGS account split be done for the main cost component structure only or can it be done for the auxiliary cost component structure?

A: It can be done for any cost component structure. That is one of the parameters of a splitting profile in addition to chart of accounts and controlling areas. So yes, it can be split using any cost component structure.

Q: Will a posting that does not come from PGI, such as Material Ledger Revaluation of Consumption, also be split in the COGS account?

A: That kind of posting can be split. There is a new business add in to include posting that don’t necessarily come from a PGI get the split for cost of goods sold. We would use that business add in to meet that requirement.


WHAT IS "ASK A FIXER" WEBCAST SERIES?

Ask a Fixer is a live ASUG-hosted Q&A session with one of ERPfixers’ top-rated SAP experts (“Fixers”) in a specific module or topic. In this real-time discussion session, you have the opportunity to pose your specific questions to a Fixer, who will provide an immediate answer during the forum. This is a great way to get quick answers to your pressing issues, as well as learn from questions posted by other users during the forum.

Q&A: Migration Options for New G/L on S/4 HANA

SAP S/4 Hana

This presentation with Paul Ovigele will cover:

  • How the new G/L functionalities, such as document splitting, and parallel ledgers fit into S/4 HANA

  • Using the Extension Ledger in S/4 HANA

  • Active, Passive and Zero-balancing document splitting in S/4 HANA

  • Options for New G/L Activation on the S/4 HANA Adoption Path

  • Migration of Classic to New G/L

Watch the prerecorded webcast by pressing play:

Get answers to the following questions and many more by watching the webcast video above.

Q&A questions answered by Paul Ovigele.

Q: Is CO-PA part of New G/L in S/4 HANA?

A: No, CO-PA is not part of Suite on HANA. Only when you are on S/4 HANA, will Account-Based CO-PA be part of the Universal Journal (which New GL is also a part of).

Q: Do you get any New G/L functionalities automatically with Suite on HANA?

A: If you are on classic G/L with Suite on HANA you will not get any New G/L functionalities.

Q: Do you need to migrate to New G/L at year end if you need Document Splitting?

A: Yes, you need to migrate to New G/L at year end if you need document splitting. Note, as mentioned in the Webcast, the actual migration does not take place at year-end but a few months after. However, the year-end is a cutoff date which determines which postings will be migrated with document splitting and which will be migrated as a balance only.

Q: How long does a typical New G/L implementation take?

A: It depends on the number of company codes and the functionality being implemented. Between six to nine months is probably realistic in most cases.

Q: Can you implement both an extension ledger and a parallel ledger?

A: Yes, you can. They serve different purposes. Parallel ledger is normally used for Legal reporting purposes, while the extension ledger is normally used for management reporting purposes.

Q: Can you explain if future BSEG BKPF table will be replaced by ACDOCA?

A: BSEG and BKPF are not replaced by ACDOCA. They still exist in S/4 HANA, and contain some of the same limitations. However, ACDOCA replaces GLT0, GLPCA, COEP, etc.

Q: Are extension ledgers used for local reporting for local Statutory purposes?

A: Extension ledger can be used for Local reporting, but is more suited for management reporting.

Q: We have been on the classic ledger for nearly 20 years and need to determine if we nee to go to the New G/L prior to the S/4  HANA implementation to reduce risk.

A: This really depends on the situation in your company. The webcast presentation discusses the pros and cons of implementing New G/L functionality before or after S/4 HANA. Remember that New G/L is automatically active when you migrate to S/4. It is the functionality such as Document Splitting and Parallel Ledger that require a separate migration.

Q: If we have New GL and we have to move to S4 HANA.  How the migration steps should be carry out?

A:

Q: If you choose option 1 and turn on document splitting later, does that have to coincide with a FY migration date?

A: The migration will be a typical S/4 HANA migration, with the New G/L tables (e.g. FAGLFLEXT) being replaced with the Universal Journal table (ACDOCA). If you are already on New G/L before moving to S/4 there will be greater compatibility because the New G/L tables already combine a few Classic tables such as GLPCA, GLFUNCT. etc.

Q: For a Company with Jan-Dec Fiscal Year, hwat is the average month of data they usually have to migrate after document splitting has been configured?

A: The rule is that, any accounts that are open-item managed will have ALL the data migrated to document splitting, while non-open item managed accounts will have only balances brought over. This means that if an open managed account has data from 10 years ago, all this data will be migrated. This is why it is recommended to clear as many open items as possible before the migration so that the runtime is not impacted. For the current year (e.g. For Jan to Dec 2018, you actual Migration will probably be in April 2019) all documents will be migrated.

Q: The Migration cockpit service in Phase 2, does it takes data from Classic GL after the migration date until the activation date and moves the data to either FAGL or ACDOCA form GLT0?

A: Note, no migration is done on phase 2 (unless you are subsequently implementing document splitting). The migration is done in phase 1 during the migration weekend. During this time, all the data before and after the migration date are transferred to FAGL or ACDOCA. Think of the migration date as a cutoff point that determines how the documents will be migrated. 

Q: For option 1  - new GL migration, will it be the same approach if without SoH Migration (Run with Classic).

A: It will typically be the same in terms of functionality. However, since you will not be on a HANA database the migration runtime will be slower.

Q: We are using new GL and document splitting is activated, but we are planning to create more ledgers, is it good for after S4 upgrade or before S4 upgrade.

A: If your S/4 HANA upgrade is imminent, I would suggest waiting until after you migrate as you will have more flexibility with the ledgers.

Q: Three options were provided for going to NEW GL and S4HAHA.  Is one option recommended or strongly preferred over the others?

A: It depends on the organization's situation, budget, other conflicting projects in the pipeline, and so on. It is easier to migrate to S/4 HANA if you are already on New G/L, but there could also be downsides of migrating to New G/L first if the organization is not prepared for the change.

WHAT IS "ASK A FIXER" WEBCAST SERIES?

Ask a Fixer is a live ASUG-hosted Q&A session with one of ERPfixers’ top-rated SAP experts (“Fixers”) in a specific module or topic. In this real-time discussion session, you have the opportunity to pose your specific questions to a Fixer, who will provide an immediate answer during the forum. This is a great way to get quick answers to your pressing issues, as well as learn from questions posted by other users during the forum.

Q&A: Business Intelligence and Analytics for Decision Making

SAP Help Consulting

This presentation with Gary Cokins will cover:

  • Learning why business analytics and leveraging Big Data provide a competitive advantage.

  • Understanding the difference between business intelligence (BI) and business analytics.

  • How to imbed statistics and analytics into enterprise performance management (EPM) methods.

  • How to differentiate forecasting from predictive modeling.

  • Learning alternative approaches to accelerating the adoption rate of business analytics.

Watch the prerecorded webcast by pressing play:

GET ANSWERS TO THE FOLLOWING QUESTIONS AND MANY MORE by watching the webcast video above.

Q&A questions answered by Gary Cokins.

Q: Based on your observations what is a major lesson learned by organizations attempting to broaden the adoption rate of applying analytics?

Q: Why is the CFO and accounting function so many years behind with embracing the use of advanced analytics.

 

WHAT IS "ASK A FIXER" WEBCAST SERIES?

Ask a Fixer is a live ASUG-hosted Q&A session with one of ERPfixers’ top-rated SAP experts (“Fixers”) in a specific module or topic. In this real-time discussion session, you have the opportunity to pose your specific questions to a Fixer, who will provide an immediate answer during the forum. This is a great way to get quick answers to your pressing issues, as well as learn from questions posted by other users during the forum.

Q&A: Improve Productivity of Your SAP Controlling Implementation

SAP Controlling

This presentation with Ashish Sampat, Expert Fixer and FI/CO Consultant, will cover:

  • Evaluate the Right Cost Object to use in your company

  • Discover how you can use a separate GR/IR account for Intercompany transactions

  • Learn how to automate WIP, Variance, Settlement transactions

  • Find out how to capture a Trading Partner on relevant transactions

  • Utilize the Material Status field in reporting and analysis

Watch the prerecorded webcast by pressing play:

GET ANSWERS TO THE FOLLOWING QUESTIONS AND MANY MORE by watching the webcast video above.

Q&A questions answered by Ashish Sampat.

 

Q: We already use Process Orders in our current SAP system. We have acquired a business unit that is on another SAP system, but they use Production Orders. We now want to migrate them on our SAP platform. We are wondering if there is any value in have this new business unit switch to Process Orders when they move to our system?


Q: Is it possible to setup separate GR/IR Account for each type of material – say Raw, Packaging, Supplies, Semi-Finished, Finished Materials?

 

Q: We are planning to implement separate GR/IR for Intercompany. However, we do not know how to handle historical transactions that are open at the time of go-live. Do you have any suggestions on how to handle them?

 

Q: Our company has struggled with the performance of WIP, Variance and Settlement jobs – sometimes they take 3-4 hours to complete, thereby delaying our close at times. Apart from running these resource-intensive jobs at off-peak times, what other suggestions do you have to overcome this issue?


Q: We do want to see Trading Partner captured on Intercompany Transactions and want to activate the user exit. However, we do not know what will happen to clearing of earlier transactions. Is there a way we can incorporate a date logic?


Q: Material Status sounds like a useful functionality, but is it correct to state that it is more of a cross-functional feature than merely a Controlling feature?

 

Q: The Order Settlement jobs can sometimes take a long time, are there any tips to reduce the run-times?


Q: In table t030 how do you map from a MM Movement Type to the MM Transaction/ Account Modifier?

 

Q: Are these features are still valid and applicable in S/4HANA? 


Q: Is there anything particular in S_ALR_87013127 that use to identify orders that missed closing?


Q: It is hard to read the table of transactions on slide number 7 (cost object: transaction codes).  How can I obtain a copy of the table?

A:

Q&A: What’s New in Transfer Pricing and Actual Costing in S/4 HANA

SAP Consulting

GET ANSWERS TO THE FOLLOWING QUESTIONS AND MANY MORE IN THIS CO-HOSTED ASUG WEBCAST.

This presentation with Janet Salmon, Chief Product Owner Management Accounting at SAP, will cover:

  • What are the latest changes to Transfer Pricing and Actual Costing in S/4 HANA?

  • How is Material Ledger Connected with the Universal Journal?

  • What are the Currency and Valuation options for Material Ledger in S/4 HANA?

  • What is the difference between Single Valuation and Multi Valuation Ledgers

  • What Fiori reports can be utilized for Actual Costing and Transfer Pricing?

Watch the prerecorded webcast by pressing play:

Q&A questions answered by Janet Salmon.

Q: Do we need to convert to ML before moving to S/4 HANA?

A: No you do not. The conversion to ML will take place automatically as you convert to S/4HANA. However, if you want to add valuation views (such as introducing group valuation) you should do that prior to converting to S/4HANA.


Q: When we move to S/4 HANA, and we have custom reports will we need to modify the reports to map to the new tablets or are there new compatibility views?

A: No Compatibility views for Actual Costing.


Q: If we move to S/4 HANA and we want to activate group valuation, do we need to do an SLO beforehand or can we convert automatically when we go to S/4 HANA?

A: It is best to do the SLO conversion in your local system and then migrate. It is on the roadmap to activate Group Valuation when you convert to S/4 HANA, but there is not yet a scheduled delivery date for such tools.

Q: Since there are now 8 currencies in the Universal Journal, does that mean that we can combine each of these currencies with any of the valuation views?

A: In principle, yes. You have always had the choice of keeping group valuation in group currency (31) or local currency (11) and some customers are looking at keeping group valuation in functional area currency. Beware however that Actual Costing currently only handles three currencies and any additional currencies will be converted on the fly at the time of the posting run.

Q: Will the Actual Costing have the availability to integrate FIFO valuation via using an alternative valuation method thru config using the "Key Figure Scheme" defining an External ending Inventory Valuation ....using FIFO.

A: You can set up an alternative valuation run that reads FIFO values or enter values for valuation in table CKMLPR_EB.


Q: Do we have information by storage location?

A: "In the Material tables you do, but no, Actual Costing does not split by storage location, only by Procurement alternative, and type of stock.
   
Q: Can we turn on Transfer Pricing & Multiple Valuations AFTER an S/4 Conversion / Migration?

A: At the moment, no. We get a lot of questions about this, but right now you need to do the SLO first and then migrate

Q: Please repeat OSS note numbers again.

A: You can always find OSS notes relating to the S/4 conversion by searching S4TWL. See https://launchpad.support.sap.com/#/notes/2267834, https://launchpad.support.sap.com/#/notes/2332591, https://launchpad.support.sap.com/#/notes/2354768 and https://launchpad.support.sap.com/#/notes/2337383


Q: As ML will be active for all company codes, will CKM3N be available for units without actual cost?

A: If units do not have actual cost, the Information will exist in CKM3N but you will not have the cost component split and no quantity structure being updated.

Q: Having calculated the IC Profit does SAP provide any support for deferred tax calculation on Profit in Transfer Price till the goods are sold to 3rd party.

A: If units do not have actual cost, the Information will exist in CKM3N but you will not have the cost component split and no quantity structure being updated.

Q: I assume the IC profit can only be eliminated if the affiliate entities are on the same instance of SAP, correct?

A: At the moment, the requirement for multilevel Actual Costing is that all entities are on the same instance. Central Finance can be used, to bring the financials into a single instance, but at the moment, you cannot eliminate IC profit if the entities are on different instances.

Q: When converting to S4 Hana, only the current year, plus the previous year, plus Dec of the year before that is migrated to S4, why only those periods?

A: That sounds like a Central Finance conversion, where only data from the most recent years is included in the initial load. If it is a Universal Journal conversion it should convert all the history (every document on the system).


Q: If my consolidation tool is BPC where the elimination occurs, can the group currency in S/4 incorporate these eliminations from BPC?

A: Elimination will happen in the consolidation tool. Going forward SAP working out what you can do locally versus in the consolidation tool. There is movement in this area to determine where you can do consolidation. The difference between a value chain consolidation and a typical legal consolidation is that with Group Valuation you are looking at elimination on a very granular material by material level.


Q: Is there any tool today or on the roadmap that helps drive transfer pricing determination?

A: For the actual calculation for transfer prices, at the moment there is no tool on the Roadmap. You would need to use a separate tool for this. Things might change but not at the moment.

Q: We produce aircraft, we activated ML-ACT but company is thinking on deactivate ACT because of the complexity, specifically on the accounting side. What is your recommendation? Is going to be less complex on HANA?

A: We would need to look at the situation specifically as it requires a little more information to understand the requirement better. It is hard to make a generalization without understanding the business. It should be easier because everything is on one table, but we need more information.

Q: Has any move been made to make inventory issued to vendor or inventory issued to customer non-plant specific?

A: Not that I know of. But we may need more background of the requirement.

Q: Is GAAP conversion inbuilt (i.e. IFRS/ Global GAAP vs Local GAAP views)?

A: You can add additional ledgers retrospectively now (subsequent implementation of an additional accounting principle).

Q&A: What You Should Know About Material Ledger in S/4 HANA

SAP Consulting

GET ANSWERS TO THE FOLLOWING QUESTIONS AND MANY MORE IN THIS CO-HOSTED ASUG WEBCAST.

This presentation by Paul Ovigele and Rogerio Faleiros will cover:

  • Why Material Ledger is Mandatory with S/4 HANA

  • The difference between using Material ledger for Actual Costing and Parallel Valuation

  • The improvements that have been made to the Actual Costing closing cockpit

  • The improved reporting that exists for Material ledger within SAP S/4HANA

  • Migrating to Material Ledger in S/4 HANA

Watch the prerecorded webcast by pressing play:


Q&A questions answered by ERPfixers expert Fixers Rogerio Faleiros & Paul Ovigele.

Q: So any MB type transaction where a BDC is used will need to be reworked then correct? 

A: Yes, any transactions that began with MB… (e.g. MB1C, MB1A, etc.) are now replaced with MIGO, and therefore any BDC sessions would need to be updated accordingly. It is better to transfer this transaction to a BADI or BAPI

Q: Can we use material ledger with different fiscal year variant than core ledger (FI) ? 

A: There is no concept of a Fiscal year variant in Material Ledger itself. Fiscal year variants are based on Ledgers in the Universal Journal. If you use Multi-valuation Ledger, then your Fiscal Year variant of the leading ledger will be the same in all Valuations of material ledger. If you use Single Valuation Ledger, then you should be able to have different Fiscal Year variants for the different ledgers (which represent separate valuation views in the Material ledger).

Q: Another question is do we need to close actual costing before we start posting in new period?

A: No. In both S/4 HANA and ECC, you will normally be closing actual costing after the new period has been opened. One of the reasons for this is that the Actual Costing “Post Closing” step reversed the inventory postings with a posting date of the beginning of the new period, therefore this new period needs to be open.

Q: Does ML in S/4 HANA allow negative inventory?

A: ML in S/4 HANA allows negative inventory, however, this needs to be specified in the Material Master and MM Period opening program.

Q: Is it easier to change Material Type or Valuation Classes than in ECC6? 

A: As far as I know, there is no difference with the process of changing Material Type or Valuation classes, as with in ECC 6.0.

Q: The same question about actual material ledger activated and Transfer Price, any point for attention?

A: The configuration for activating Material Ledger is the same as in ECC. One difference is that you need to specify the FI currency types that you want to use in ML. this is because FI now has eight extra currency types, while ML has only three. Transfer Pricing has been much more streamlined with S/4 HANA and you now have the option of having a separate ledger for each valuation view.

Q: Can you explain the differences from ECC to 1709 for how to setup LIFO or other balance sheet valuations?  Any thoughts on how to automate LIFO calculations?

A: To calculate LIFO you will need to define an accounting principle and assign LIFO method to it, and this assinged to material ledger.

Q: Everything was shown using the classic GUI.  Are there Fiori apps to process material ledger yet?

A: There are a few Fiori apps such as “Material Inventory Values” which can be used to view the data in the ML tables, however, there isn’t a Fiori App to process Material  Ledger as of yet.

Q: Are the MBEW EBEW tables going to be maintained as "views" in S/4Hana, or are they deleted?

A: Yes, the MBEW, EBEW, etc. tables will be maintained as compatibility views so that they can still be read with custom programs.

Q: Similar question, are the old ML tables MLHD, MLIT CKMLPP maintained as "views so that old programs & reports still work in S/4Hana?

A: Yes, these old ML tables are also maintained as compatibility views in S/4 HANA.

Q: Do we have to do new ML config before we execute the Migration steps?

A: yes, you at least need to reconfigure the currency type, if you used 0000. Also there is a new account modification PRL which is to be set up as the offset account key that is used for cost center credit posting (GBB-AUI).

Q: Is it mandatory to activate ML if I don't have it in my company?

Yes, it is mandatory to activate ML when you move to S/4 HANA even if you did not have it in ECC. Remember however, that Material Ledger is replacing the tables that were used in ECC for Inventory Valuation, therefore there probably is already relevant data in your current system for Material Ledger, even if you do not have it activated. Material Ledger is now the new subledger for inventory valuation but you do not have to activate Actual Costing, if it is not needed.

Q: What is the impact of activating ML in ECC before moving to S/4 if you don't have ML activated for materials?

A: If you want to activate ML in ECC before moving to S/4, you will need to perform a conversion of Inventory Valuation and Purchase Order history tables to Material Ledger tables. Note that, this this will need to be done anyway when you eventually move to S/4 HANA. The difference is that converting before hand gives the business some time to get used to material Ledger functionality, fosters user adoption, and provides historical information that can be accessed when you move to S/4 HANA. Note that if you Activate Actual Costing in ECC, the Actual Costing Run (CKMLCP) will be revamped when you move to S/4 HANA.

Q: What are steps we need to do before migrating ML from ECC to S4 Hana?

A: ML is now part of the conversion steps for S/4 HANA, so the ML activation will be included in the migration process. What is more important is that you understand how you can leverage Material Ledger functionality, and plan and design your S/4 HANA migration accordingly. You can take advantage of the Multi-valuation or Single valuation ledger approach; Company Code transfer pricing; Profit Center Transfer Pricing; Alternative Valuation Run to cumulate prices over several periods; Revaluing Inventory according to FIFO, LIFO, or NRV prices; and much more. Once you come up with the functionalities that will be beneficial to your business, you can then set up the system accordingly.

Q: Do we have view to old tables?

A: You can view the old Inventory and ML tables because the custom programs which accessed these tables will be able to access the compatibility views of these tables so that there is no disruption. However, you will not be able to write new data to these old tables.

Q: We use FIFO calculation and are there any steps we need to take care during Migration?  

A: No it is the same process as a company that does not use FIFO.

Q: We are moving to Hana Enterprise Cloud first just o get to  more current platform than our old ECC6.  will upgrade of material ledger come along with that, or not until we do the upgrade to S/4 Hana which will follow this system upgrade?

A: The new functionality of Material Ledger is only available with S/4 HANA. Even if you have HEC, this will only enable faster processing and reporting in the current ECC system but not add any extra functionality.

Q: Hi - Does the COGS split happen for the COGS variances also since ML has the variances data for this?

A: As of now, the COGS split (or Cost Component Split for Cost of Sales) does not happen with COGS variances. Instead, the Variance Categories (Input Price, Input Quantity, Resource Usage, etc.) can now be mapped to separate accounts in the Universal Journal.

Q: Will there be new functionality on non-distributed items?

A: Due to the revamped processing logic in Material Ledger on S/4 HANA, the “Not Distributed” items have been seriously reduced.

Q: Can we have material ledger activate for variant material (variant configuration active)?

A: Yes, you can have Material Ledger active along with Variant Configuration, in both ECC and S/4 HANA.

Q: We are currently on SAP ECC 6.0 on HANA with material ledger active. Will we have any disruption if we migrate to S/4?

A: No, there should not be any problem with migrating to ML on S/4 when you are already on the HANA database. You may not see much of a difference with the processing speed, since you already have the fast database, but you will go through the S/4 migration as normal and be able to leverage the new functionalities.

Q: We are on SAP ECC 6.0 on HANA with Material Ledger and Split Valuation active. Any anything we need to worry?

A: There should be no negative impact of having Material ledger and Split valuation when you move to S/4 HANA.

Q: Does ML or Actual costing support LIFO calc?

A: Yes, this is based on accounting principle.

Q: Does ML have capability to have LIFO valuation in parallel with FIFO valuation?

A: You have the option to have one material ledger run (e.g. CKMLCP) as FIFO and a second one using alternative valuation run (e.g. CKMLCPAVR) as LIFO.

Q: In ECC, the customer is able to choose whether the revolution will be done inside or outside ML. Is that option available in ML S/4 HANA?

A: If you use Actual Costing with S/4 HANA, you will need to run the Actual Costing program every month in ML. You can choose whether you want to revalue inventory with the actual cost or not. If however, you do not want to revalue inventory within ML (but say, in another system) then this will need to be a separate customized process.

Q: In ECC, the customer is able to use one single PRD Account. 3 or 4 slides before the end of the presentation, there is a slide with some hints about variances accounts and I am wondering whether in S/4 HANA we would be able to configure more than one single PRD Account. Is that possible? For instance: Price Variance, Freight Variance, etc...

A: At the moment, there is still no distinction between the cost components of a Price Variance Account. The COGS accounts can be split into different accounts by Cost Components, but this logic does not yet apply to inventory variance accounts. The slide being referred to is about the combining of single and multilevel price and exchange rate variances, and thereby not needing account keys PRV and KDV.

Q: I am presuming there is a package of transactions for conversion from ECC to S/4 HANA. Is that correct? Any information about it?

A: Yes , with the S/4 HANA migration there is a specific cockpit for Material ledger. This can be found in SAP Notes 2694618 and 2352383


Q&A questions answered by ERPfixers expert Fixers Rogerio Faleiros & Paul Ovigele.

 

Author: Rogerio Faleiros

Rogerio is an independent SAP consultant specializing in controlling functionality. He has worked with SAP technology for more than 10 years, implementing controlling solutions in the food processing, chemical, construction and agribusiness industries. Roger has been working with IFRS and integration with product costing and material ledger minimizing the impact of the changes in SAP for companies in different locations.He has participated in rollouts in several countries such as United States, Germany, Switzerland, Italy, Turkey, UK, France, Spain, Egypt, UAE, India Sweden and Finland. Rogerio has an MBA in IT from Getulio Vargas Foundation and is a frequent presenter providing training for new consultants in Brazil. Rogerio is the author of Configuring Controlling in SAP ERP.

Q&A: Analytics-Based Enterprise Performance Management

SAP Help

Watch the prerecorded webcast by pressing play:

GET ANSWERS TO THE FOLLOWING QUESTIONS AND MANY MORE IN THIS CO-HOSTED ASUG WEBCAST.

This presentation by Gary Cokins, a leading practitioner and author will cover:

  • How strategy maps and their companion balanced scorecards communicate strategic objectives with target-setting to help cross-functional employee teams align their behavior to the strategy and better collaborate.

  • Why measures of channel and customer profitability and customer value are now superceding profit and service-line measures – and shifting from product to customer-focused organizations including future potential value – customer lifetime value.

  • How activity-based cost management (ABC/M) provides not only accurately traced calculated costs (relative to arbitrary broad-averaged cost allocations), but more importantly provides cost transparency back to the work processes and consumed resources, and to what drivers cause work activities.

  • Reforming the broken annual budgeting process with performance based budgeting that links strategy to operations and is process volume sensitive rather than simply incremental at each cost center.

  • How EPM/CPM also applies to public sector government to understand their “output costs” and better serve citizens.

  • Why business analytics, with emphasis on predictive analytics and pro-active decision making, is becoming a competitive advantage differentiator and an enabler for trade-off analysis.

  • How all levels of management can quickly see and assess how they are doing on what is important – typically with only a maximum of three key performance indicators (KPIs).

  • How to integrate performance measurement scorecards and ABC/M data with:

    • Strategy formulation.

    • Process-based thinking and operational productivity improvement.

    • Channel/customer profitability and value analysis and CRM.

    • Supply chain management.

  • Quality and lean management (Six Sigma, cost of quality).

Q&A: It’s that time of the year! Recommendations for a successful Year-End Closing

ERPfixers Help

Watch the prerecorded webcast by pressing play:

Get answers to the following questions and many more in this co-hosted ASUG webcast:

  • Typical Steps that should be carried out during the Year-End Closing process

  • Which of these steps should occur before others

  • Other modules outside FI/CO that are impacted by the Year-End -

  • Closing process

  • Issues that could crop up with the Year End Closing and how to address them

  • Some changes that occur with Year End Closing, when you are on S/4 HANA

  • If you use MR11 transaction will it affect moving average price and will price adjustments need to be done after this is run?

  • Could you please mention the transaction for reconciling inter-company?

  • Where do you set up the GL account that F.19 uses? When I run it in test mode and look at the postings, I don't see any GL Accounts.

  • Could you give details regarding the GR IR reclass process?

  • Does MR11 when done affect moving average price

Q&A: Why An Optimization Project Should Be In Your 2018 Plans

SAP Help

Get answers to the following questions and many more in this co-hosted ASUG webcast:

  • Why is Optimization needed for SAP customers?

  • Which route should you take in an Optimization Project?

  • Typical Methodology for Optimization.

  • Examples of what could go wrong when Best Practices are not followed.

  • Real life example of Optimizing an SAP system.

  • Do you think the SAP tools SAP VLM/Value Discovery/Celonis can supplement the functional optimization?

  • For companies with heavily customized processes, is it always advisable to run the optimization project before they start the project scoping for HANA S/4? Our current process is customized over 70%.

  • How long was the optimization effort at Woodwards?

 

Watch the prerecorded webcast by pressing play:


What is the main reason your organization might consider a Functional Optimization Review?

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Q&A: FIN REVENUE RECOGNITION - With the Deadline Looming, Are You Ready?

SAP Help

Get answers to the following questions in this co-hosted ASUG webcast:

  • This presentation focused on the use of RAR. But that has only been generally available since Mar, 2015. How many customers are actually using RAR? What about the rest (assumed to be the majority) who are using "old" functionality like basic SD Rev rec?

 

  • In your opinion, how long should the project be for a fortune 500 company to implement RAR, the right way?

 

  • What is software requirement to have implemented RAR in SAP ECC6 EHP6?

 

  • Do companies seem to be also changing all of their internal and management reporting and metrics or do most companies appear to only be changing their external SEC reporting to align with the new standard?

 

  • How does/can RAR handle revenue recognition based on estimates, when customer actuals are submitted a quarter later?

 

  • For a mining company with sales restricted to few customers, do you think RAR is a scope?

 

  • RAR requires a separate license, correct?

 

  • What all criteria need to be met for the company to be required for this reporting?

 

Watch the prerecorded webcast by pressing play:


Is your Contract Roll-Forward external disclosure report ready?

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When is your ASC606 US Adoption Rate?

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Q&A: What you should know about New Asset Accounting with S/4 HANA

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Q: If you do not currently use the Fixed Assets module in SAP, and you are planning on moving to S/4 HANA, is it better to implement Fixed Assets before you move to S/4 or after?

A: Assuming that you are on SAP, it depends whether you have the new GL or not (as New GL is a pre-requisite for New Asset Accounting), whether you plan to have additional accounting principles, and whether you are converting to S/4 HANA on-premise or doing a Greenfield implementation, which version you are planning to move to and when. Uploading an excel file with batch processing via the LSMW is not available at the moment on-premise, but you can use a BAPI.  An asset upload is usually easier at a year end. If you are already on NewGL and planning to convert to S/4HANA at a year end, it may be easier to get the asset upload out of the way before the S/4 HANA migration.  In all cases I would get expert advice to examine all the facts before making a decision.

A: The fiscal year end of asset accounting must agree with the fiscal year end of Finance, (even if the periods differ) but how can you map a depreciation area with one fiscal year end if you have a different fiscal year end for the parallel ledger in finance?

Q: Lets say you have 0L with March year end and 2L with Dec year end. Create a new ledger e.g. NL with March year end and add to a new ledger group so the new ledger group has both 2L and NL in it and mark  NL as the representative ledger and map the depreciation area for the Dec year end to the new ledger group. This should allow you to post from asset accounting to a different year end in finance.

Q: Can you map depreciation areas to appendix or extension ledgers in finance?

A: No this cannot be done at the moment. The extension ledger posts only delta postings in finance.

Q: If you have an asset with different useful lives for example for local GAAP and IFRS, so that the total depreciation calculated to date is different, and you make a sale to a customer, how does the system post the different values to different ledgers, but the same amount to the customer?

A: The system will automatically use the technical clearing account in a similar way to an acquisition to post the different values in different ledgers.

Q: Can you set up asset accounting with Central Finance on S/4HANA?

A: FI documents from Asset Accounting that are sent to Central Finance are only replicated as FI documents and not currently as fixed assets, and some of the fixed asset information may be removed. Therefore, although in the source system, the APC and accumulated depreciation accounts are set up as reconciliation accounts, in the SAP S/4HANA Finance system, they are not and accept only finance postings.

Q: Is it beneficial to implement new asset accounting prior to upgrading to S/4 Hana?

A: Assuming that you are on SAP, it depends whether you have the new GL or not (as New GL is a pre-requisite for New Asset Accounting), whether you plan to have additional accounting principles, and whether you are converting to S/4 HANA on-premise or doing a Greenfield implementation, which version you are planning to move to and when. Uploading an excel file with batch processing via the LSMW is not available at the moment on-premise, but you can use a BAPI.  An asset upload is usually easier at a year end. If you are already on NewGL and planning to convert to S/4HANA at a year end, it may be easier to get the asset upload out of the way before the S/4 HANA migration.  In all cases I would get expert advice to examine all the facts before making a decision.

Q: For parallel ledgers with differing fiscal year variants, is the migration scenario mandatory for new primary ledger with same fiscal year variant as leading ledger?  Or, can new primary ledger be treated as a "technical ledger" only?

A: I think you can use the representative ledger box to get round this. Lets say you have 0L with March year end and 2L with Dec year end. Create a new ledger e.g. NL with March year end and add to a new ledger group so the new ledger group has both 2L and NL in it and mark  NL as the representative ledger and map the depreciation area for the Dec year end to the new ledger group. This should allow you to post from asset accounting to a different year end in finance.

Q: Each currency needs separate Dep. Area.  Can you please elaborate this from with current ECC EHP6 scenario?

A: It is the same principle as in ECC6, if you have two currencies in finance for a ledger you will need two depreciation areas, one for each currency, for that accounting principle. The main difference is that you no longer need any delta depreciation areas.

Q: How is archiving of FI_DOCUMNT impacted?

A: Not sure if this is a question about new asset accounting or asking if an S/4HANA migration affects already archived documents, or how documents are archived on S/4HANA.

Q: Where do you configure technical clearing account? In AO90 - Asset account determination, or somewhere else? Can you please specify.

A: You cannot configure the technical clearing account in AO90. It has its own section in the New Asset Accounting section under Integration with General Ledger Accounting in the IMG.

Q: I heard a new year could not be opened independently in both Finance and Asset Accounting and is done in a single t-code which is balance carry forward. The carry forward transaction to open the new year can’t be processed if the previous year hasn’t been closed. Does this mean that AJAB closing asset has to be performed before we open a new fiscal year?

A: It is correct that transaction FAGLGVTR, which is the general ledger carry forward is now used for asset accounting as well. However it only opens the new year and you can continue to post to the old year. You should not need to close the old year with AJAB before opening the new year. (In ECC6 i have seen the old year closed 10months later in one company).

Q: If LSMW doesn't work, will tools like WinShuttle or SHDB work?

A: It depends on the version of S/4HANA - I believe the Cloud version has its own tools. For on-premise you can use a BAPI, or transaction AS100 if you don't have too many items, or can split the upload into 2 or 3 uploads.I have not used either Winshuttle nor SHDB  to upload to S/4HANA, the Winshuttle website mentions Certified S/4HANA integration including the 1610 version, but I don't know about SHDB.

Q: For Depreciation areas that do not post to FI where is the data kept and what does it look like what tables do reports run against? Is it held in ADOCA and marked as statistical in some way?

A: ACDOCA contains actual data by ledger and therefore if a depreciation area is not mapped to a ledger it can't record data from it. FAAT_DOC_IT will contain statistical data.  Most of the asset reports can be run by depreciation area so you can see data in the asset module for all the depreciation areas in the same way.

Q: Can we change accounting principle on a depreciation area after the initial migration?

A: During the migration you may need to do some changes to the configuration, but if you want to point one depreciation area at a completely different ledger, It would be best to check with SAP as I am not sure of the consequences.

Q: Can we still use calculated depreciation areas in S4 still posting to ledge?

A: Yes, although as with most of my answers, you should carry out extensive testing to make sure that the results are as you expect.

Q: FYI: LSMW is still officially supported for RE and FI-AA legacy conversion. It just requires that you use the BAPI_FIXEDASSET_OVRTAKE_CREATE rather than a screen recording.  Note 2208321 has more information.

A: In the Simplification List issued for the S/4HANA 1610 release, it states: ""The LSMW (Legacy System Migration Workbench) function is still available within SAP S/4HANA, (onpremise edition) but not considered as the migration tool. LSMW might propose incorrect migration interfaces that cannot be used in SAP S/4HANA anymore. The Legacy System Migration Workbench (LSMW) is an SAP NetWeaver tool for data migration that was first introduced with R/2 to R/3 migrations. It uses standard interfaces like BAPIs, IDocs, Direct Input and Batch Input programs and recordings. Due to this nature, the use of LSMW is restricted for migrations to SAP S/4HANA. The Legacy System Migration Workbench (LSMW) can only be considered as a migration tool for SAP S/4HANA using workarounds and careful testing for each and every object. The use of LSMW for data load to SAP S/4HANA is not recommended and at the customer's own risk. However it then goes on to quote the OSS note 2208321 for one of the workarounds - hence the confusion.

Q: Will you still have the tax deprn available for reporting?

A: If I understand the question,  if you have a tax depreciation area set up and you keep that tax depreciation you should be able to continue to report on it after a migration.

Q: Pease could you confirm. I believe you said migration had to occur at fiscal year end and that you could not reopen the prior year once the migration was over. Our tax only books are often re-opened for the prior year.

A: I believe a New GL migration has to occur at a fiscal year end, but an S/4HANA migration,  can occur at any period end. If I mentioned a closed fiscal year could not be re-opened after migration I was referring specifically to a closed fixed asset year end at the time of migration.

Q: Does HANA still support multiple Chart of Accounts? Or are these now unified into a single CoA?

A: If you mean for example an operating chart or accounts, local chart of accounts or group chart of accounts, then they behave the same in S/4HANA. You still have the option to add a local chart of accounts to the company code in global parameters and enter the alternative account number in the GL account master data.

Q: We have to report by tax jurisdiction and have the tax jurisdiction on the asset will that still be there?

A: The tax jurisdiction field is still available in the asset master data.

Q: Is it possible to add parallel ledgers at the same time as S/4HANA migration?

A: You cannot add parallel ledgers during the migration.  I understand that adding parallel ledgers once on S/4HANA is now available since version 1610 on-premise.

Q: Could the AP invoice in the example have been posted w/ different amounts by ledger?

A: The initial AP invoice would have the same amount for each ledger, so for example the whole amount in one ledger could be capitalized and the whole amount in the other ledger could be expensed, but if you wanted to transfer part of the amount to say shipping costs you would need a subsequent journal using FB01L or AB01L posting to just the one ledger.

Q: It seems in 1605 you must add then parallel ledger in separate year.  can you do it in the same year as migration then with 1610?

A: I think it would be safer to check with SAP as I am not 100% sure of when the parallel ledgers can be added.

Q: We calculate tax depreciation each month and report it at the end of the year the the taxing authority we have a special tax depreciation area.

A: I see no reason that this would not work on S/4HANA although would need more detail to be sure what the exact question is.

Q: Can you open the new year with a pending new project adding a parallel ledger?

A: I think it would be safer to check with SAP as I am not 100% sure of when the parallel ledgers can be added.

Q: Heard that carry forward is only needed one time and will update automatically after performed if posting is made to prior year in the ledger. is this correct?

A: This is the carry forward transaction FAGLGVTR - this is how it worked in ECC6 and as far as I am aware should work the same in S/4HANA.

 

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Q&A: What You Should Know About Profitability Analysis With S/4 HANA Finance

SAP Help

Get answers to these questions:

  • How Account-Based CO-PA is integrated with the Universal Journal

  • The considerations to be taken into account when converting from Account-Based to Costing-Based CO-PA

  • How to perform realtime derivation in CO-PA and reduce the need for month-end settlements

  • The setup needed to break cost of goods sold into cost components using Account-based CO-PA

  • How CO-PA allocations work with the Universal Journal

 

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Q&A: Simple BI With Business Objects Cloud

SAP Business Cloud Help

The following is a recording of a live webcast hosted by ASUG, with ERPfixers expert Fixers. You will find the following answers and more in the video below:

  • What kind of SQL databases are supported for connections?

  • How does the ERP connection work?

  • Dive in to what a Live Connection is please.

  • Does BO Cloud work in mobile devices?

  • Is it slow to access sql server from SAP cloud to on premise (through firewall) and live data/connection?

  • How does this compare to Power BI with respect to getting 3rd party developed visualizations?

  • How is this different from SAP HANA Cloud?

  • All on premise data from my company need to import/upload to SAP cloud in order to use (live connection to on premise database or extract from it)?

Q&A: Gain better Visibility of Inventory Costs within your ERP System

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WHAT IS "ASK A FIXER" WEBCAST SERIES?

Ask a Fixer is a live ASUG-hosted Q&A session with one of ERPfixers’ top-rated SAP experts (“Fixers”) in a specific module or topic. In this real-time discussion session, you have the opportunity to pose your specific questions to a Fixer, who will provide an immediate answer during the forum. This is a great way to get quick answers to your pressing issues, as well as learn from questions posted by other users during the forum.

Speakers:

Paul Ovigele, FI/CO Expert, Author: "100 Things You Should Know About Financial Accounting"

Rogerio Faleiros, FI/CO Expert, Author: "Configuring Controlling in SAP ERP"

Watch the Ask a Fixer webcast recording:

In the standard ERP system it is difficult to find reports that give you a multidimensional view of your inventory costs. Many customers download the information to Microsoft Excel or use external reporting tools such as BI to do the analysis. There is nothing wrong with these options, but sometimes they lead to reconciliation errors (in the case of Excel) or realtime update issues (in the case of BI). With the Material Ledger Activated and by utilizing an enhanced report, there are several reporting options that will give you a more granular view of your inventory values.

Watch this recording of the live Q&A with two experts, Paul Ovigele and Rogerio Faleiros, where you can learn the following:

  • How to create drilldown reports in Material Ledger

  • How to view inventory costs, such as beginning and ending inventory, receipts and consumption by cost components (such as Raw Materials, Labor, Overhead, Freight, etc.) for multiple materials

  • How to track inventory turnover on a periodic basis

  • How to view inventory costs according to dimensions such as material group, profit center, product hierarchy, etc.

  • How to view standard and actual cost components for your inventory balance sheet accounts

  • How to view the released costs of multiple materials for multiple periods

 

If you would like to learn more or request a Cost Transparency Report, please contact us at info@erpfixers.com.

Q&A: Are you Optimally Utilizing Available Functionality within SAP Controlling?

Get answers to these questions:

  • Which cost allocation method is better - Distribution or Assessment, when should I use one versus another?

  • What are the different standard costing methods that are available for use, and under what circumstances should they be used?

  • How does one go about correcting various error/ warning messages encountered during costing?

  • What are the different cost objects that are available for use in SAP controlling?

  • Under what circumstances should I go about automating WIP, Variance and Settlement jobs?

 

Watch the webcast by pressing play: