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Showing posts with the label CO-PA

IFRS 18 in Practice, Part 1: The Five CO Work Steps

Part 1 summarized IFRS 18 itself, Part 2 covered the Financial Statement Version (FSV) in SAP FI, and Part 3 covered the cost flow in SAP CO. All three answered the question of what the standard requires. This post changes the angle. Taking a practice case, it looks at what is actually touched in CO: which accounts are split, on what basis, how the categories are assigned to cost elements, and what follows in allocation, CO-PA and the income statement. Scope note: this is a generic practice note. Accounts are named, not coded, and no company-specific or system-specific information is included, only the structure and the order of the work. 1. IFRS 18 and CO Category Item Detail Requirement of the standard Three categories in the income statement IFRS 18 splits the income statement into three categories, operating, investing and financing, and requires two new subtotals: operating profit and profit before financing and income taxes. It applies to annual ...

IFRS 18 in Practice, Part 2: Checking the SAP System Before You Start

Earlier posts covered IFRS 18 itself ( Part 1 ), the SAP FI side and the financial statement version ( Part 2 ), and the SAP CO cost flow behind operating profit ( Part 3 ). The previous post set the IFRS 18 work out in five stages and ended with a table of ten items to check before starting. This post expands those items into the queries that actually answer them. The same IFRS 18 project is not the same amount of work at every company. A company whose accounts are already split and one whose accounts are not, a company whose allocation cycles reference cost element groups and one that lists the cost elements individually, have a different scope to touch. That difference can be established by querying the system before starting. The T-Codes and tables below are SAP standard. What follows is the selection criteria, how to read the result, and how the scope of work splits depending on what comes back. No figures from any particular system are included. 1. Order of checks ...

KE30 Results Changed? Find Who Changed the Report (KE32) or the Form (KE35)

When a CO-PA drilldown report (KE30) suddenly shows different numbers, the first question is whether someone changed the report definition (KE32) or the form (KE35). This post shows two ways to find the creator and the last person who changed each object: from the GUI, and by reading the tables TKEB1 and TKES1 directly. Note: screens, menus and settings can differ by SAP release and system configuration. 1. Report and form A drilldown report is made of two objects. The columns (period, actual/cumulative and so on) and the rows (P&L lines) are defined in the form . The report takes a form and adds characteristics, variables and output options. Item Detail Report KE31 create / KE32 change / KE33 display. Table TKEB1 Form KE34 create / KE35 change / KE36 display. Table TKES1 When values changed Column definitions (period variables, plan/actual flag, value-field formulas) live in the form, so check the form first One form, many reports ...

IFRS 18, Part 3: SAP CO View, the Cost Flow Behind Operating Profit and CO-PA

Part 1 summarized IFRS 18 itself and Part 2 covered the SAP FI side, the Financial Statement Version (FSV). Part 3 is about SAP CO. It follows how the expenses that end up in the IFRS 18 operating category are built in CO (cost center → distribution and assessment → activity allocation → production order → product cost → cost of goods sold → CO-PA), read from an S/4HANA sandbox. Example system: S/4HANA sandbox with two controlling areas, CA10 (company code CC10, operating concern OC10) and JNC2 (company code JNC2, operating concern JNC2). It is a training system; the amounts are only there to show the structure. 1. What IFRS 18 asks of CO Item Topic Detail Operating category How expenses are classified Expenses in the operating category are presented by function (cost of sales, selling, administration) or by nature (materials, personnel, depreciation), whichever is more useful. If presented by function, the notes must disclo...