By Janet Salmon
SAP Simple Finance 1503 introduced significant changes to financial accounting and controlling, including the Universal Journal, integration of G/L accounts and cost elements, and enhanced profitability reporting.
In this article, Janet Salmon answers frequently asked questions from a 2015 SAP Simple Finance webinar, covering CO-PA, document splitting, reporting, planning, and extensibility.
2026 Update: SAP Simple Finance 1503 was an early milestone in the evolution of SAP S/4HANA Finance. The original questions and answers are preserved below as 2015 answers. The 2026 updates are ERPCorp editorial notes and should not be read as new statements by Janet Salmon. This is a historical reference, not an implementation guide for a current SAP S/4HANA release. Current SAP S/4HANA releases include additional functionality, particularly in Margin Analysis, Universal Journal reporting, and financial planning.
Is SAP CO-PA Still Limited to 50 Characteristics?
2015 answer: Some of the interfaces in CO-PA still check that you are not sending more than 50 characteristics, so SAP still recommends that you limit your operating concern to 50 characteristics. Nevertheless since each of the characteristics becomes a field in the Universal Journal when you come to build reports you can use attribute views to determine additional fields for example, the material.
2026 Update: Distinguish operating-concern characteristics from additional reporting dimensions in Margin Analysis. SAP’s S/4HANA training documents up to 50 non-fixed characteristics in addition to fixed characteristics. Additional dimensions exposed through CDS reporting or supported extensibility do not, by themselves, remove operating-concern limits. Check the documentation and applicable SAP Notes for your release and deployment model.
Do SAP S/4HANA Reports Require SAP HANA Live?
2015 answer: Your classic reports (Report Writer, Drill-Down, ABAP List Viewer) will run as before using compatibility views to select the relevant data from the universal journal. For the modern reports such as the multi-dimensional trial balance, line item browser or income statement are using a combination of HANA views and operational data providers or virtual info providers to feed the queries.
2026 Update: SAP HANA Live was an earlier reporting technology. Modern SAP S/4HANA reporting primarily uses ABAP Core Data Services (CDS) views, SAP Fiori analytical applications, and embedded analytics. SAP HANA Live is not required for standard SAP S/4HANA embedded analytics.
How Are Secondary Cost Elements Integrated with G/L Accounts in SAP S/4HANA?
2015 answer: During migration a G/L account will be created automatically for every secondary cost element and fields such as cost element category transferred from the cost element. The segregation of the secondary cost elements takes place via the cost element category - assessment, settlement, activity allocation, overhead calculation, etc.
2026 Update: In SAP S/4HANA, primary and secondary cost elements are maintained as G/L accounts. Secondary cost elements are identified by the G/L account type "Secondary Costs" and their cost element categories. This integration eliminates the separate cost element master data used in SAP ERP and supports processes such as assessments, activity allocations, overhead calculations, and settlements.
How Does Document Splitting Work in the Universal Journal?
2015 answer: The BSEG entries for payables and receivables won’t be split, but the split will happen in the universal journal ACDOCA based on the splitting rules.
2026 Update: In SAP S/4HANA, document splitting supports financial reporting by characteristics such as profit center and segment. The Universal Journal (ACDOCA) records the relevant split account assignments, while the entry view in BSEG can differ from the General Ledger view. The precise behavior depends on document splitting configuration.
What Is the Universal Journal, and Who Is User D000002?
2015 answer: User D000002 is Hasso Plattner, one of the founders of SAP and still an active blogger. As to unified vs universal, we started the project talking about the need to unify our structures, but ended up with the universal journal.
2026 Update: The Universal Journal (ACDOCA) is the central financial accounting and controlling data structure in SAP S/4HANA. It integrates financial and management accounting information into a unified line-item model, reducing the need for reconciliation between FI and CO. The reference to user D000002 is historical and relates to the original SAP Simple Finance discussion.
How Does Costing-Based CO-PA Differ from the Universal Journal?
2015 answer: Yes, the costing-based CO-PA document will be as before a combination of CE1XXXX for the transactions and CE4XXXX for the characteristics. In the universal journal you will have fields for each characteristic in CE4XXXX and a link to CE4XXXX via the PAOBJNR for reasons of backwards compatibility.
2026 Update: In SAP S/4HANA, costing-based CO-PA continues to use separate profitability analysis tables, including CE1XXXX for actual line items and CE4XXXX for profitability segment characteristics. Margin Analysis (formerly account-based CO-PA) is integrated directly into the Universal Journal (ACDOCA), providing profitability reporting reconciled with Financial Accounting. SAP recommends Margin Analysis as the strategic approach for profitability reporting in SAP S/4HANA. Costing-based CO-PA remains available in SAP S/4HANA on-premise and SAP S/4HANA Cloud Private Edition, but is not available in SAP S/4HANA Cloud Public Edition. Costing-based CO-PA is also not supported when Universal Parallel Accounting is activated.
Does SAP S/4HANA Use SAP BW SID Concepts?
2015 answer: SAP BW SIDs are for the master data.
2026 Update: SAP BW uses Surrogate IDs (SIDs) to manage master data characteristics efficiently. SAP S/4HANA uses SAP HANA columnar storage and modern data modeling techniques, including CDS views, but does not simply replicate SAP BW's SID architecture in the Universal Journal. SAP BW/4HANA continues to use SIDs within its analytical data models.
How Can You Add Custom Fields to the Universal Journal in SAP S/4HANA?
Original example: Can a team field be derived from a sales order and carried through to the G/L posting?
2015 answer: You can add a field to the Universal Journal easily but you will have to create a derivation logic to fill it and as with any derivation the more complex you make the logic to fill it, the more you'll impact performance during posting.
2026 Update: SAP S/4HANA supports extending the Universal Journal (ACDOCA) with custom fields using supported extensibility options, including the Custom Fields application where available. Custom fields can capture additional business information from logistics processes, such as sales order attributes, and make it available for financial reporting. Field derivation and transfer depend on the business process, extensibility framework, and SAP S/4HANA deployment model. SAP recommends using released extensibility options to minimize the impact on upgrades and system maintenance.
Can SAP S/4HANA Support Cost Center Planning by Functional Area?
2015 answer: You can't do this using transaction KP26 since this hasn't been enabled to derive the functional area. IF you want to fill all the dimensions during planning, then investigate Integrated Business Planning for Finance.
2026 Update: SAP S/4HANA provides planning capabilities for cost centers, activity types, and additional financial dimensions. However, planning by functional area depends on the planning application and configuration. Transaction KP26 does not automatically support every additional dimension available in the Universal Journal. SAP Analytics Cloud planning and other supported planning solutions can provide more flexible multidimensional planning capabilities. SAP documents functional-area mapping when integrating financial plan data into ACDOCP; the planning model and integration must include the required dimension. The original reference to Integrated Business Planning for Finance describes the financial planning solution available in 2015, not SAP’s supply-chain planning product SAP Integrated Business Planning.
Glossary of SAP Finance Terms
Core Data Services (CDS) Views
ABAP data models that expose business information for reporting, analytical applications, and other services.
Costing-Based CO-PA
Profitability analysis using value fields and separate CO-PA tables to analyze revenue, costs, and contribution margins. Availability depends on the SAP S/4HANA edition and accounting configuration.
Document Splitting
A General Ledger function that splits document items by configured characteristics, such as profit center or segment, and can produce balanced statements for those characteristics.
Functional Area
An account assignment used to classify expenses by function, such as production, administration, or sales, for cost-of-sales accounting.
Margin Analysis
Account-based profitability analysis in SAP S/4HANA, using Universal Journal data to analyze revenue, costs, and profitability by market segment.
Operating Concern
The organizational unit in CO-PA that defines the structure used to analyze profitability, including the relevant characteristics.
SAP Simple Finance 1503
The 2015 SAP financials add-on release associated with the introduction of the Universal Journal, an early milestone in the evolution of SAP S/4HANA Finance.
SAP S/4HANA Finance
The financial management capabilities of SAP S/4HANA, including General Ledger Accounting, Asset Accounting, Controlling, Margin Analysis, and reporting.
Secondary Cost Element
A cost element for internal Controlling transactions, such as assessments and activity allocations. In SAP S/4HANA, it is maintained as a G/L account of type Secondary Costs with an appropriate cost element category.
Surrogate ID (SID)
An internal numeric key used in SAP BW and SAP BW/4HANA to represent characteristic values and link master data structures.
Universal Journal (ACDOCA)
The central actual line-item table integrating financial and management accounting in SAP S/4HANA. It reduces reconciliation requirements; other accounting tables, including BSEG, still have specific purposes.
About Janet Salmon (2015 Biography)
In 2015, Janet Salmon was the Chief Product Owner for Management Accounting at SAP SE. Janet is known to many SAP Financials professionals for her writings on Controlling and related subjects in SAP Financials Expert. She is the author of Controlling with SAP Practical Guide, Accelerated Financial Closing with SAP, and SAP HANA for ERP Financials 2nd Edition. Janet has overseen many SAP Controlling functionality product developments both as a Product and Solution Manager. At the time of the original publication, she spearheaded changes to the user interfaces within Controlling and data transfer from Controlling to SAP HANA.