SAP S/4HANA End-to-End Lab

Part 1 summarized what IFRS 18 changes: the income statement is split into operating, investing and financing categories, and an operating profit subtotal becomes mandatory. Part 2 looks at SAP FI. In SAP the shape of the income statement is defined by the Financial Statement Version (FSV). This post reads the FSV of an S/4HANA sandbox as it is today and lists what has to change to present it the IFRS 18 way. Example system: S/4HANA sandbox, company code CC10, chart of accounts COA1, financial statement version FSV1. It is a training system, not a real company. 1. What IFRS 18 requires in the income statement (summary) Item Topic Detail Three categories Operating, investing, financing Every income and expense item goes into one of the three categories. Income taxes and discontinued operations are shown separately. Subtotal Operating profit or loss Income minus expenses in the operating category. Mandatory. Subtotal Profit before financ...

ZCO0042 is a custom ABAP report that unfolds the definition of CO actual assessment cycles (KSU1/KSU2/KSU3) into a single ALV grid. It is derived from ZCO0041, the sibling report for distribution cycles (KSV1/KSV3). The difference comes from what assessment does: it moves cost to a secondary cost element , so every segment carries either a single assessment cost element or an allocation structure , and the report shows that alongside the senders and receivers. In expanded mode, one row = segment × sender cost center × sender cost element × receiver × allocation-structure assignment . Selection screen The controlling area is pre-filled from the user parameter CAC (SU3) via MEMORY ID . The cycle F4 help cannot filter on T811C directly because that table has no KOKRS field; it goes through the cycle-level criteria in T811K ( SETKIND = '0' , FIELD = 'KOKRS' ) to restrict the list to the controlling area entered. The "only cycles with execution history" check...

The final part of the SAP CO overview covers CO-PA (Profitability Analysis). Where the financial statements show the profit of the company as a whole, CO-PA answers a narrower question: which product, sold to which customer, through which channel, produced the profit. Note: data structures, screens, T-codes and reports vary by SAP version and by how each company operates CO-PA. 1. CO-PA splits profit by characteristic The top-level organizational unit of CO-PA is the Operating Concern. It defines the characteristics and value structure used for analysis. The combination of characteristic values forms the analysis unit, the Profitability Segment, on which P&L items such as revenue, discounts, cost of goods sold and selling expenses are collected. Typical characteristic Example Product Product, product hierarchy Customer Customer, customer group Sales organization Sales organization Distribution channel Distribution channel Plant ...

Part 3 of the SAP CO overview covers Product Cost Controlling. Product cost is not simply the sum of material cost. It also covers what was consumed and in what quantity, which operations were performed, why plan and actual differ, and how that difference is reflected in inventory and cost of goods sold. Note: screens, T-codes and closing procedures vary by SAP version, production method, whether the Material Ledger is active, and company-specific configuration. 1. Cost is classified differently depending on purpose and behavior The same cost carries a different meaning depending on the classification used. No classification is more correct than another; the point is to pick the view that fits the decision at hand. Classification basis Categories Nature of cost Material, labor, expenses Relation to the product Direct cost, indirect cost (overhead) Relation to activity level Variable cost, fixed cost Relation to manufacturing Manufacturin...

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...