SAP Controlling : S/4 HANA : Latest Training Discussions

• Students will able to get complete Knowledge of SAP S/4 HANA Controlling Module, end to end process
• All product costing scenarios which I faced in my SAP journey
• All Material Ledger/Actual costing scenarios which I faced in my SAP journey
• All Margin Analysis/ Account based COPA scenarios which I faced in my SAP journey

Added the below discussion points to consultants and students

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

Syllabus

Overview and significance in the SAP environment.

· Basic Settings:

· Enterprise Structure:

· Company, Company code, Plant, Storage Location

· Sales org, Dis. Channel, Division, Shipping Point

· Definition and Assignment Org Str

· Basic Settings across Modules:

· FI (Financial Accounting)

· MM (Materials Management)

· SD (Sales and Distribution)

· PP (Production Planning)

· PS (Project Systems)

· Integration Configuration:

· FI-MM (Financial Accounting and Materials Management)

· FI-SD (Financial Accounting and Sales and Distribution)

· CO-PP (Controlling and Production Planning)

· CO-PS (Controlling and Project Systems)

· Integration Testing Cycles:

· Procure to Pay: MM cycle

· Plan to Production: PP cycle

· Order to Cash: SD Cycle

· Basic Configuration Settings and Overhead Accounting

· Cost component structure (Main & Auxiliary)

· Costing sheet design: Quantity and percentage-based approach

· Template allocation design for Standard cost calculation, Production order, Process Order, Product Cost collector and Sale Order scenarios

· Primary cost component split.

· Design of Profit centers and Cost centers based on business scenarios.

· Cost center assessment & distribution.

· Plan and Actual cost Splitting.

· Plan and actual activity rate calculation.

· Revaluation of orders and product cost collectors

· Fully integrated with FI, MM, SD, PP, and PS module with OBYC & VKOA Mapping explanation.

· Universal Allocation: Assessment & Distribution cycles.

· PRODUCT COSTING Scenarios:

· PRODUCT COST By Order:

· Make to Stock Scenario

· PP Module -Process Order

· CO Module -CO Production Order

· PRODUCT COST By Sales Order:

· Make to Order Scenario

· Valuated: with SO controlling object -Production Order

· Non-Valuated: with SO controlling object-Production Order

· PRODUCT COST By Period:

· Make to Stock Scenario

· Without reporting point -Product Cost collector

· With reporting point -Product Cost collector

· PRODUCT COST Engineer to Order (with PS Integration):

· Product Costing flow for ETO Scenario with Production order

· Standard Project, WBS and Network linking to ETO process material.

· Activity Based Costing (CO-OM-ABC):

· PRODUCT COST ABC Costing process with Template allocation linking.

· Mixed Costing:

· Raw materials multiple procurement process.

· SFG material both purchase and manufacturing process.

· FG Materials multiple manufacturing process.

· Various Costing Processes:

· Sale/Depot Plant Costing Process

· Special Procurement process (from one plant to another plant)

· Additive Cost

· Joint Production & By Product Costing

· CO-Product Costing

· By-product costing

· Subcontracting processes

· External Operation process

· MATERIAL LEDGER with Actual Costing:

· Material Ledger Overview: Understanding the significance of Material Ledger in SAP S/4 HANA.

· Currency Configuration in Material Ledger:

· Company Code (Co.Code) Currency ,Group Currency and Hard Currency/ Index-Based Currency/ Global Company Currency considerations.

· Material Ledger Activation with Multiple Valuations:

· Introduction to valuation approaches in SAP.

· Legal Valuations, Group Valuations, Profit Centre Valuations

· Group Valuation:

· Understanding Markup Costs in Group Valuation.

· Applying Group Valuation with Standard Cost.

· Profit Centre Valuation:

· Markup Cost with Transfer Pricing Logic.

· Group Valuation:

· Intercompany Transfer - Cross Company Code Costing:

· Company Code to Company Code Transfer: This refers to the transfer of goods or services from one legal entity (company code) to another within the same corporate group. The pricing for these transfers might be at cost, market price, or a predetermined transfer price.

· Profit Centre Valuation:

· Intracompany Transfer - Within the Company Code Costing:

· Refers to the valuation of goods and services within a specific profit center. A profit center is a segment or unit within a company that directly adds to its profits and is responsible for its own revenues and costs.

· Markup Cost with Transfer Pricing Logic with Profit Centre Valuation: This involves pricing goods or services with a markup, but the markup is determined based on transfer pricing logic. Transfer pricing refers to the rules and methods for setting prices for goods and services sold between related entities within an enterprise.

· This refers to transfers of goods or services within the same legal entity (company code). The pricing for these transactions might be set at cost or a predetermined transfer price. Since these transfers are within the same legal entity, they don't have tax implications like intercompany transfers might

· Distributing Consumption Variances:

· Conceptual clarity on consumption variances in SAP.

· CKMDUVMAT - Distributing Differences for Materials:

· CKMDUVACT - Distributing Differences for Activities:

· Understanding activity-based differences in the Material Ledger.

· Actual Costing Accounting Entries:

· Deep dive into the accounting entries generated through actual costing in the Material Ledger.

· Material Price Analysis (CKM3):

· Comprehensive analysis of material prices.

· Cumulative Material Ledger - CKMLCPAVR Functionalities:

· Introduction to Cumulative Material Ledger (CKMLCPAVR).

· Cumulative Inventory Management:

· Differences between standard and cumulative inventory management.

· Actual Costing in CKMLCPAVR:

· Impact on Material Ledger postings.

· Periodic Unit Price Calculation:

· How CKMLCPAVR contributes to periodic unit price determination.

· COPA (Controlling Profitability Analysis) - Margin Analysis:

· Introduction to COPA:

· Overview of Controlling Profitability Analysis in SAP S/4 HANA.

· Account Based COPA:

· Flow from other modules to account-based COPA.

· COGS (Cost of Goods Sold) Split:

· Integration of the cost component structure in COGS determination.

· Price Variance Split:

· Methods to split price variance for different production variance categories.

· Predictive Accounting:

· Introduction to predictive accounting concepts.

· Attributed Profitability Analysis:

· Understanding how cost centers, internal orders, and production orders relate to product costing.

· COPA Derivation:

· Configuring and customizing derivation rules.

· COPA Assessment:

· Techniques for distributing costs and revenues in COPA.

· COPA Realignment:

· Real-life scenarios where realignment is necessary.

· Fiori Apps for COPA:

· Introduction to SAP Fiori and its role in COPA analysis.

· Reporting and Analytics:

· Tools and techniques for extracting insights from COPA data.

By the end of this course, participants should have a deep understanding of the Product Costing. Material Ledger and COPA functionalities, in SAP S/4 HANA. They should be equipped with the knowledge and skills to configure, analyse, and optimize the Material Ledger in various business scenarios.

The Material Ledger functionality in SAP is used for various purposes, including tracking material movements, actual costing, and working in multi-currency environments. In S/4 HANA , Material Ledger becomes even more central as it becomes a mandatory feature for inventory valuation. Here's a comprehensive understanding of each point mentioned:

1. Material Ledger Configuration with Multiple Currencies:

   • Material Ledger allows you to manage up to three currencies: Company Code currency, Group currency, and a third (hard) currency.

   • Configuration starts with activating the Material Ledger for specific valuation areas.

   • Define and assign currency types for each valuation area. Currency types could be legal, group, or hard currency.

   • Set the update types for parallel valuation in Material Ledger, specifying how the values will be updated in each currency.

2. MM Cycle Flow to Material Ledger:

   • Material movements from MM (like GR, GI, transfer postings) have financial implications.

   • When goods are received, their value is posted in all the currencies configured in Material Ledger.

   • Price differences arising from purchase price variances, for example, will also be reflected across the multiple currencies.

3. Production Cycle Flow to Material Ledger:

   • The production cycle includes raw material consumption, labor, and overhead costs.

   • As production orders or process orders are executed, the costs are captured in Material Ledger in multiple currencies.

   • This ensures that the inventory value of finished or semi-finished goods is accurately portrayed in all currencies.

4. Sales Cycle Flow to Material Ledger:

   • Upon the sale of goods, there's a reduction in inventory value.

   • Material Ledger reflects this change, adjusting the value of inventory in all configured currencies.

5. Transfer Posting Cycle Flow to Material Ledger:

   • Transfer postings, like stock transfers between plants or storage locations, involve changing valuation or ownership of stock.

   • Material Ledger captures these changes, ensuring accurate valuation in all currencies.

6. COPC - Month End Closing:

   • The period-end process in Controlling (COPC) involves activities like assessment, distribution, etc.

   • These postings impact costs and, hence, the Material Ledger. It's important to ensure that these activities are properly reflected in the Material Ledger for an accurate valuation.

7. CKMLCP - Actual Costing Execution:

   • CKMLCP is a central step in Material Ledger’s actual costing run.

   • It determines the actual costs of materials for the period, considering all receipts and issues of the material.

   • Once the actual cost is determined, it can be compared with the standard cost to find variances.

   • This actual cost, then, becomes the starting point for the next period.

8. Work in Process functionalities in Material Ledger:

   • If a product is not fully manufactured by the end of a period, its cost is determined as Work in Process (WIP).

   • In Material Ledger, this WIP is valued in multiple currencies, ensuring a consistent valuation across all reporting perspectives.

9. CKMCCC - Manual Change of Actual Cost Component Splits:

   • Sometimes, it's necessary to adjust the breakdown of actual costs manually.

   • CKMCCC allows users to manually adjust the cost component split of actual costs in the Material Ledger.

   • This could be due to reasons like adjustments for extraordinary items or corrections.

This overview provides a foundational understanding of Material Ledger with multiple currencies in S/4 HANA 1909. However, the real depth and intricacies come out during hands-on configuration and daily operations in the system.