SAP S/4HANA End-to-End Lab

IFRS 18 is the new international accounting standard that defines how financial statements, and the income statement in particular, are presented. This is Part 1 of a short series: it summarizes what IFRS 18 changes. Part 2 will look at the impact from an SAP FI point of view, and Part 3 from an SAP CO point of view. Note: the example figures below are illustrative only. Requirements are summarized from the IFRS Foundation materials linked at the end. 1. The standard at a glance Item Value Detail Standard IFRS 18 Presentation and Disclosure in Financial Statements Issued April 2024 Issued by the International Accounting Standards Board (IASB) Replaces IAS 1 Replaces the existing standard on presentation of financial statements Effective date 1 January 2027 Annual reporting periods beginning on or after this date; earlier application is permitted What changes Presentation and disclosure Recognition and measurement ...

This series is based on a practical ERP cost management course and summarizes the cost flow of a manufacturing company and the structure of cost management in an ERP system. Part 1 covers why cost management accounting is needed, how material cost, labor cost and overhead flow into products and cost of goods sold, and how an integrated ERP connects that flow. Note: the actual process and master data differ by company, depending on the production method and the ERP configuration. 1. Starting point of practical ERP cost management Cost management is not a stand-alone calculation. It links purchasing, production, inventory, sales and finance data into one flow. The series moves step by step from cost concepts to actual costing and the period-end close. 2. Structure of the course The course has two parts. This series concentrates on the main flow of Part 1. Part Topics Covered in this series Part 1 Cost concepts, actual costing, manufacturing overhead allocation...

Part 2 of the SAP CO overview covers Overhead Cost Controlling. Overhead is cost that cannot be attributed directly to a specific product or service. In SAP it is first collected on a cost center or an internal order, then allocated or settled to the final cost object using a defensible basis. Note: screens, menus, T-codes and processing steps vary by SAP version and company-specific configuration. 1. Cost Center Accounting makes cost responsibility explicit A cost center is the management accounting unit where costs arise and where someone is responsible for them. Cost centers can follow teams or departments in the HR organization, but separate cost centers are also created for cost management or allocation purposes. CO-CCA role Description Planning and budgeting Cost plan and budget per cost center Actual collection Actual costs originating in FI are collected on the cost center Variance analysis Plan versus actual comparison Allocation ...

This post opens a four-part overview of SAP CO (Controlling, management accounting). Part 1 starts from the question "why does SAP need CO at all?", then covers the difference between FI and CO, the CO sub-modules, the organizational structure, and how data created in other modules ends up in CO. Note: this series is reorganized from SAP CO overview training material. Screens, menus, T-codes and processing steps vary by SAP version and company-specific configuration. 1. Every business activity ends up as cost or revenue Take a manufacturing company as an example. Each logistics module owns one part of the process, FI records the accounting result, and CO reuses that data for analysis. Module What it manages SD To whom, and under which conditions, products are sold MM Purchasing and inventory of raw materials PP What is produced and how, based on BOM and Routing FI Receivables, payables, expenses, assets and revenue arising from...