Profitability analysis and Management

Accounting changes in Simple Finance (S/4

Hana)

Hello Forum,

This documnet will give the functionalities offered by Simple finance in COPA and management accounting

The long pending requirement from the majority of the customers in manufacturing industry is getting the
COGS break up each head wise and it needs to post to a different GL account, in this way COPA is in
sync with FI and it reduces the lot of reconciliation issues, the same issue has been addressed in simplified
profitability analysis and it is part of simple finance.

In CO the main focus is to reduce the month end closing activities time and increase the system performance,
In Sfin we have a separate set of transaction codes to perform this activity.

In simple finance, SAP is recommending for Account based COPA, account base in the default
solution as the advantages of costing base has been incorporated in account base, as well enhancing
the reconciliation aspect by having single document for Finance and COPA through universal journal
entry, and improving the performance through the use of S/4 Hana database. No change in costing
base approach.
The COEP, COSS and COSP tables are replaced with ACDOCA.
View tables are also available to reproduce the data in the old structure, for example V_COEP would
allow seeing actual postings.
Assessments with in CO will update the COEP for CO documents and accounting documents with
ACDOCA
Table ACDOCA would store both FI and CO posting in a unified document. As account based COPA
posted is same as CO posting, the characteristic of account based COPA would also be part of
ACDOCA

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Profitability analysis and Management Accounting changes in Simple Finance (S/4 Hana)

Configuration for splitting the cost of goods sold:

IMG: Spro > General Ledger Accounting (New) > Periodic Processing > Integration > Materials Management >
Define Accounts for Splitting the Cost of Goods Sold
In Account Based COPA, there was no option to have a split of the Cost of Goods Sold into its components.
This did not allow business to compare the component level costs of the inventory in terms of plan and actual,
which can be basis of production re engineering. With Simple Finance, this option has been made available in
account based COPA.

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Profitability analysis and Management Accounting changes in Simple Finance (S/4 Hana)

Configuration for additional quantities:

Spro > Controlling > General Controlling > Additional Quantities > Define Additional Quantity Fields

Additional quantity field can be configured. Badi FCO_COEP_QUANTITY has to be used.

In Simple Finance, the settings for Profitability Segment Characteristic is not supported any more, as each
profitability segment contains all available characteristic values.

With Simple Finance, Integrated Business Planning would be in general used for overall Planning purpose.
However planning available in account based COPA would continue to exist, as it exists before. But with
additional flexibility IBP would be the primary Planning tool going forward.
For Reporting User Interface tools like Lumira would be used. This gives additional flexibility of query based
reporting, real time value updation etc. However Ke30 reports can still be created.

With the simple finance, the benefits like reconciliation with financials, system performance, cost of goods sold
and IBP is as follows.

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Profitability analysis and Management Accounting changes in Simple Finance (S/4 Hana)

Enhanced Real time functionality in CO month end closing:

Real-Time Overhead Calculation:

Overhead Calculated as soon as entries posted at cost object, No need to execute period end
overhead calculation transactions like KGI2 and CO43, Overheads will be calculated on the basis
of costing sheet, System will create separate overhead document, recalculation and reposting of
overhead is possible.

Variance Calculation for cost center:

New T.code is KSS1H, it serves the same functionality of T.code : KSS1 , no changes in Input and
Output parameter.

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Profitability analysis and Management Accounting changes in Simple Finance (S/4 Hana)

WIP Calculation:
New T.code: KKAOH, Accelerated WIP calculation (on actual cost ) can be done only for production
order. It does not support process order and product cost collector, available in new transaction code,
for process order and product cost collector, business can still use existing transaction code, option to
select all RA Versions for WIP calculation is not available in new transaction code.

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Profitability analysis and Management Accounting changes in Simple Finance (S/4 Hana)

Production Variance Calculation:

New T.code : KKS1H, Variance calculation with target 0 will done on the fly and it also provide
variance category break up in GL accounting, all target Cost Versions , Alternative Material Cost
Estimate and Primary price variances is not supported in new optimized transaction code.
Now we can get the production variances each to a separate GL account, In classic R/3 all the
variance categories will post to a single GL account, now we have the provision that break up of each
variance category will post to separate GL account.

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Profitability analysis and Management Accounting changes in Simple Finance (S/4 Hana)

Result Analysis for Sales Order:

New T.code: KKAKH, Same functionality of T.code: KKAK, no changes in Input and Output
parameter, new transaction support only POC and Revenue RA method.

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Profitability analysis and Management Accounting changes in Simple Finance (S/4 Hana)

Internal Order Settlement:

New T.code : KO8GH, Same functionality of T.code : KO8G , no changes in Input and Output parameter, it will
improves the system performance considerably in the month end.

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Profitability analysis and Management Accounting changes in Simple Finance (S/4 Hana)

Sales Order Settlement:

New T.code : VA88H, Same functionality of T.code : VA88 , no changes in Input and Output
parameter, It will accelerate sales order settlement process.

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Profitability analysis and Management Accounting changes in Simple Finance (S/4 Hana)

Production Settlements:
New Optimized T.code: CO88H, Same functionality of T.code: CO88, no changes in Input and Output
parameter, It will accelerate settlement process for production order, process order and Product cost collector.

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Profitability analysis and Management Accounting changes in Simple Finance (S/4 Hana)

For each transaction code the suffix H stands for HANA data base, By using these new transaction codes with
HANA database the month end closing time has been reduced considerably and customer can get their month
end financial statements very quickly.

I hope this document will give some inputs on COPA and Management Accounting changes in simple finance,
Happy learning and welcome your valuable comments.

Regards,
Ravi

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