SAP S/4HANA: Key Figures, CDS Views, and Allocations

Determining Operations for Product Cost Calculation

• Mark the cost indicator in the control key.
• Mark the Relevance to Costing indicator in the operation.

Structure of Operating Concern

• The structure is created at the controlling area level to enable margin analysis.

Updating Standard Price of Material

• Run Cost Estimate
• Mark cost estimate
• Release Cost Estimate

Product Costing Assignment

• Assign an overhead group and overhead key to include overhead costs.

Commitment Management Activation Location

• Commitment management is activated at the order type level.
• Commitment management is activated in the controlling area.

Cost Center Budget Management: Available Functions

• Import budget values with a CSV file.
• Budget transfer from a source cost center to multiple target cost centers.

Scenarios Covered by Single Costing Run

• Inventory cost estimate for material in a single plant.
• Standard cost estimate for all materials in all company codes of a controlling area.

Explore Released APIs

• Use the SAP Business Accelerator Hub to explore released APIs.

Settlement Profile Configuration

• Determine whether settlement is required.
• Define settlement document type.

Data Reporting in SAP S/4HANA

• Data is available in real-time at every level of detail.

Product Cost by Period

• Can be used with a Product Cost Collector
• Used when the focus of controlling is on a stable and continuous production process.

Main Characteristic of Profit Center Accounting

• It can be used with the period and/or cost of sales accounting.
• It is integrated into the Universal Journal.

Budget Availability Control

• Budget allows the purchase order if the amount falls within defined tolerance limits.
• If cost accounts are exempt, a budget availability control allows the purchase order

Objectives of Profitability Analysis

• Provide the company with information on the performance of market segments.
• Ensure sales forces achieve their contribution margin goals.

Deriving Profitability Segment

• Account-based Profitability Analysis must be active.
• G/L account type must be primary cost/revenue or secondary cost.

Objects That Can Be Part of the Assessment Cycle

• Tracing factors

Define Tracing Factors

• Cost elements

Using Status Profile For

• Define initial statuses and control specific transactions
• Help set order-specific rules for users

Creating a New Version of an Existing Standard Estimate

• A Reference variant allows us to create an estimate using the quantity structure of an existing one.

Additional CO Versions

• Can store data for valuations and planning scenarios

Check When Using Budget Availability Control

• Check funds based on the plan and tolerance in projects

Receiver That Must Be Allowed in the Profile

• Order

Populate Local Variables in Profitability Reports

• Use user entry

Assign New Profit Center by Default

• All company codes where the controlling area is.

State Best Describe Product Cost per Order

• When full cost traceability is needed and control is individual

Create Maintain Plan Prices for a Cost Center

• CO version, valid cost center categories, activity type

API Types for Clean Integrations

• SOAP and OData

Objects Can Be Selected in the Activity Types

• Business process and Cost center/activity type combinations

Guiding Principles to Achieve Clean Operation

• Reduce custom code, manageable SAP integration

###Values That Will Flow from SD:

• Value conditions price process
• Goods sold

Capture Cost By

• Cost elements and Ledger account

Setup as Time-Based

• Activity and cost center

Controlled by the Costing Type

• Date key and Price updates

Direct Internal Activity Allocation

• Valid Receivers: sales order item, internal order, WBS element.

Field Selectable for Both Costing-Based and Account-Based Profitability Analysis

• Cost element

Values Calculated Using Results Analysis

• Reserves for unrealized costs, work in progress, and cost of sales

Integrated Planning for Internal Orders Setup

• Set indicators in the CO version and in the internal order master record

Product Cost by Order Calculation

• WIP at target costs or variances

Statistical Key Figures

• Statistical key figures are entered for cost elements, cost centers, and internal orders in SAP S/4HANA.
• These serve as basis quantities in allocation cycles to distribute costs across various dimensions.

SAP Core Data Services (CDS) Views

• CDS views in SAP S/4HANA offer real-time data access, meaning they have no latency.
• The views come with ready-to-use content.
• CDS views support authorizations, which ensure data security within reporting frameworks.

Indirect Activity Allocation

• In SAP S/4HANA, both quantity and cost are posted to the sender and receiver in an indirect activity allocation. This facilitates accurate tracking and balances activity quantities with associated costs.

Transfer Price Solution Configuration

• Transfer pricing in SAP S/4HANA can be configured using separate ledgers or distinct currency types within the same ledger.
• This setup accommodates multiple valuations according to legal, group, and profit center reporting standards.

Cost Center Standard Hierarchy

• A mandatory structure for each controlling area encompasses all cost centers, providing a basis for consistent reporting and data aggregation.

Costing-Based Profitability Analysis Tables

• CE2XXXX and CE1XXXX tables store profitability data in SAPS/4HANA. These tables are used for reporting detailed cost and revenue allocations.

Product Costing with Sales Order

• Implemented alongside revenue-based results analysis, SAP S/4HANA calculates revenue, cost of sales, and WIP based on actual data. The system then computes a WIP value to align with results analysis requirements.

Deriving Requirement Type

• In SAP S/4HANA, the requirement type is derived based on MRP or strategy group settings.
• This links planning strategies to requirement types for Material Requirements Planning.

Internal Order Settlement

• The source structure in SAP S/4HANA determines cost elements for internal order settlement, mapping costs to specific categories for transfer to the assigned receiver.

Overhead Rate Definition

• Overhead rates can be defined in a costing sheet as a percentage rate or a quantity-based surcharge. This allows allocating overhead based on usage or as a percentage of base costs.

Setting up Costing-Based Profitability Analysis

• Setting it up involves defining characteristics, assigning value fields to conditions, and configuring summarization levels. These steps enable detailed profitability reporting and segmentation in SAP S/4HANA.

Billing Document Posting

• During billing document posting in SAP S/4HANA, revenues and sales deductions are transferred to Profit Center Accounting. This allows companies to assess profitability by profit center more accurately.

Account-Based Profitability Analysis for Sales Orders

• An "S" type extension ledger is used to integrate incoming sales orders in account-based Profitability Analysis
• This enables management of predictive entries with deletion options.

Operating Concern and Controlling Area Relationship

• A single operating concern linked to multiple controlling areas is optimal for unified reporting, allowing adaptation to local requirements while sharing consolidated data.

Product Cost Collector Default Values

• Default values for the Results Analysis (RA) key and the costing variant for preliminary costing can be configured for product cost collectors.

Cost Component Structure Maintenance

• For each cost component, you can determine:
• Assignment to calculation base for overheads in costing sheet.
• Relevance to goods manufactured
• Relevance of cost component to inventory valuation

Account Assignment Category Management

• The account assignment category in SAP S/4HANA manages accounting via sales orders and separate sales order stock, tracking sales order-related costs and inventory.

Sales Order Item-Level Cost Collection Configuration

• To ensure costs are collected at the sales order item level, check settings for:
• Requirement type
• Account assignment category
• Requirements class

Assessment Cycle Attributes

• Assessment cycles use secondary cost elements, support primary and secondary cost transfers, and can be structured using allocation structures, allowing flexible cost distribution.

Cost Center Attributes

• The cost center category allows grouping of similar cost centers for consistent attribute assignments, streamlining configuration and reporting.

Valuation Method for Results Analysis Definition

• Defined at the controlling area level, the valuation method ensures consistent valuation logic for all cost objects within that area.

Automatic Settlement Rule Generation for Sales Order Item Prerequisites

• Costing-based profitability analysis must be active, and the sales order item must be assigned to a project for automatic settlement rule generation in SAP S/4HANA.

Automatic Account Assignment

• Can be defined for postings on general ledger accounts of primary costs.
• Proposedvalues can be overwritten in the application.
• It allows defining default account assignments for primary cost postings, with the option to adjust as needed.

Budget Commitments

• Purchase requisitions create commitments against budgeted amounts, allowing tracking of anticipated expenses to manage budget adherence.

Profit Center Allocations

• Managed within account-based profitability analysis, ensuring alignment of profitability and cost management.

Number Range Intervals Maintenance

• Number range Intervals Is maintained by business transactions and controlling area, allowing structured document numbering.

Profitability Analysis Updates

• Margin analysis updates the cost of goods sold (COGS) at delivery aligning reporting with revenue recognition and enabling timely COGS updates.

Cost of Sales Accounting Method in Profitability Management

• Presents revenues alongside sales-related expenses facilitating margin analysis
• Aims to match revenues for goods and services against related expenses

Internal Orders

• Entry of costs and revenues is allowed.
• Tolerance limits for plan overspend can be defined.

Enabling WIP Calculation

• The valuation variant is required to configure WIP calculation in Product Cost by Period
• It determines the costing strategy and defines which costs are included in the WIP calculation

Statistical Internal Orders

• Statistical internal orders are used for mainly reporting and monitoring purposes. Postings are simultaneously made to both the internal order and a cost center.
• They can be used to perform results analysis for budgeting and cost tracking.

Results Analysis for Sales Orders

• Calculates values based on actual performance and cost-based percentage of completion.

• Internal. cost object:
• order, network
• item,
• wbs

Planned prices:

• estimate material, movment

types

• Revnu
• default

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Model "cloud"

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Real time core licence

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Explore statistical key figures, SAP Core Data Services (CDS) views, and indirect activity allocation in SAP S/4HANA. CDS views offer real-time data access and support authorizations. Transfer pricing can be configured using separate ledgers or distinct currency types.