You Are Now a Step Closer to Real-Time Profitability in SAP S/4HANA Finance with Fewer Settlements

Learn about a new feature in SAP S/4HANA Finance 1610 that helps you avoid a few of the settlements to Profitability Analysis (CO-PA) and yet achieve real-time updates of data to CO-PA dimensions. This is one innovation among many in account-based CO-PA.
Learning Objectives

Reading this article, you will learn:

  • A new feature in SAP S/4HANA 1610 that is applicable when account-based Profitability Analysis (CO-PA) is active
  • How the CO-PA process steps are being consolidated in SAP S/4HANA Finance to yield the same or better results with fewer steps and in real time
Key Concept

SAP S/4HANAFinance helps you to avoid some settlements without adversely affecting other processes. It brings the data to CO-PA to analyze real-time profitability.

So far you may know this about SAP S/4HANA:

  • The new data model in SAP S/4HANA Finance merges the general ledger (G/L) account and cost elements
  • It offers a universal table to manage the financial and management accounting information at one single place
  • It helps you get rid of redundant data in the form of index tables and summary tables
  • It makes many reconciliations redundant, too

However, you must also know that there are many innovations in SAP S/4HANA Finance. I describe one feature that can help you simplify the business processes with fewer and faster steps. Many businesses processes now run in real time, not just in SAP ERP Financials, but also in logistics (for example, Material Requirements Planning).

Did you ever feel that postings to time-bound cost objects such as internal orders or Work Breakdown Structure (WBS) elements are cumbersome? First, you need to post the expenses to the cost objects (internal orders or WBS elements). Second, you need to settle them.

The settlements are usually a period-end affair so you need to wait until the period end to see the posted data settled to Profitability Analysis (CO-PA). Until then, the profitability analysis would be incomplete. If you forget to settle them, the profitability between FI-GL and CO-PA may not reconcile.

What if I tell you that you no longer need to settle the internal orders to CO-PA, and yet you will see the data posted to the internal orders in CO-PA in real time? Yes, it is now a reality. Let’s see how to set this up.

How to Set Up the Real-Time Data Flow to CO-PA

Following are the customizing steps required to set up the real-time data flow to CO-PA.

Step 1. Activate account-based CO-PA. To complete this step, execute transaction code KEA0 or follow menu path SPRO > Controlling > Profitability Analysis > Structures > Define Operating Concern > Maintain Operating Concern.

In the screen the system displays (Figure 1), you need to ensure that account-based CO-PA is active for your operating concern. To complete this step, select the Account-based check box as shown in Figure 1.

Figure 1
Account-based CO-PA activated for the operating concern

Ajay Maheshwari

Ajay Maheshwari is an SAP Finance and Controlling (FI/CO) and SAP S4/HANA solution architect with more than 13 years of experience. He is well known for his contributions to the SAP Community Network (SCN) Forum.

He is among the all-time top 20 contributors to the SCN Forum, across all SAP modules and one of the top contributors in his own space, SAP FI/CO.

He is one of the official SAP mentors and has been recognized as the topic leader in the SCN Forum each year since 2011.

He has experience with SAP implementations and rollouts in several industries and thoroughly enjoys designing complex business processes and delivering SAP training in the areas of FI/CO and SAP S/4HANA.

Currently, he works as associate director at itelligence, an SAP Platinum Partner.

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9/27/2017 12:03:13 AM
Hugo de Groot

Unfortunately, these “statistical” CO-PA postings cannot be top-down distributed (KE28). In my view, this fact limits the practicality of this feature a lot. For example, you might have marketing expenses posted to a certain country. You won’t be able to top-down (KE28) distribute these expenses over the products sold in this country.

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