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Optimize Financial Performance Leveraging S/4 HANA EPM/BPC

JohannesBusinesses leverage Enterprise Performance Management (EPM) to improve profitability by bringing significant improvement in financial and operational insight. With EPM improved operability and reduction of the cost of ownership with direct integration into SAP, S/4HANA provides integrated analytics solutions.

We use expertise, experiences, best practices, and methodologies using pre-packaged content including starter kits and pre-configured applications.

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Hybrid Planning with BPC S/4HANA and SAP Analytics Cloud

Businesses have leveraged Business Planning and Consolidations (BPC) for a year now and are now challenged by working with several new products at the same time, including SAP Business Warehouse (SAP BW) 7.4/7.5, the Enterprise Performance Management (EPM) add-in, version 10.0 SP30 (frontend for standard SAP BPC), and SAP Analysis for Microsoft Office (frontend for embedded SAP BPC) and they need to decide if they need to go to BPC Embedded, Cloud or BPC S/4 HANA Standard.

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Fiscal Year Variants in SAP S/4HANA Asset Accounting

Many companies operate in multiple regions and countries and need to report on their fixed assets based on various legal and valuation frameworks.

Parallel Valuation in Asset Accounting

SAP S/4HANA provides the tools and processes to fulfill these parallel valuation requirements. Some of these requirements can be technically challenging to meet, such as when you need to use different fiscal year variants (FY variants) in the different valuation frameworks.

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Cost Component Views in SAP Product Costing

TomKingI'm writing a book on SAP Product Cost Planning and in the process getting a better understanding of the importance of cost component views in product cost estimates.

The cost component split and cost component views provide valuable insight into a cost estimate. Setting up cost components correctly in a cost component structure leads you to a multi-faceted understanding of a product cost within a single cost estimate. At the beginning of the implementation our priority was to develop standard costs and we ignored additional information we could have obtained with a better understanding of cost component views.

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Improve Performance of SAP Material Ledger Closing Cockpit

Ashish Sampat 2018 12 1If you experience long run-times during SAP Material Ledger close, this blog is for you. We explore how to expedite your SAP Material Ledger close.

Knowing how much your products cost is essential to determining actual profitability. Yet most decisions are based on the standard cost of your products since it is not easy to determine your actual costs. Actual costing by SAP Material Ledger bridges this gap. It provides you the ability to capture actual costs by tracking variances at the material level. Let's examine SAP Actual Costing.

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GR/IR (Goods Receipt / Invoice Receipt) Processing

GR/IRoss Christoph 2017R is the SAP process to perform the three-way matchpurchase order, material receipt, and vendor invoice.  You use a clearing account to record the offset of the goods receipt (GR) and invoice receipt (IR) postings.  Once fully processed, the postings in the clearing account balance.

Clearing is performed at the purchase order (PO) line item level based on quantity entered. Price variance and exchange rate variance are calculated.  You can write off small differences using transaction MR11.

Purchase Price Variance
This discussion assumes you are using standard price control (S)  for purchased materials. The quantity and amount on the GR and IR postings are important. You must have posted GR to record purchase price variance (PPV). There is no PPV posting for just IR. There can be additional variance postings on IR after GR is posted for differences between PO price and actual price paid.

When posting GR, the price variance is based on the PO price, unless IR has already been posted, then it is based on actual price paid. If IR has already been posted, the GR will be based on the IR up to the quantity of the IR, after that is will use the PO price again.

After all postings to a PO line item, the net PPV posted will be the difference between the actual price paid and the standard cost of the material.

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Moving to S/4HANA: Some Personal Thoughts About Controlling

Tom KingMy company is in the early stages of moving from ECC 6.0 to S/4HANA. I thought it would be interesting to give you my initial impressions of what I found out about Controlling in S/4HANA. Since we started out with ECC 6.0, we don’t have the baggage of things like classic G/L versus new G/L.

We first got access to an S/4HANA sandbox for a test drive of the system. This is an important step in the transition and has helped me get a much better understanding of how the new system works rather than reading documentation and watching training videos. What follows are my initial impressions. Hopefully, this will be useful if you are making the move, or contemplating it. 

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Explore Various Cost Objects in SAP Controlling

Ashish SampatI often get asked about difference between a Production Order and Process Order. When is it beneficial to use one over another?
As such, from controlling point of view, both objects have similar features. It is mainly on the Production Planning and Shop Floor Execution side where we see a difference. The main advantage of using Process Order is use of Process Instruction Sheet, or PI Sheet for day-to-day shop-floor activities. Whereas both the scenarios use Material Masters and Bills of Materials; Production Orders use Work Center (Machine) and Routing (sequence of operations) – Process Orders use Resource (Machine) and Recipe (sequence of operations and which component is issued during which operation). The decision on whether to go with Production Orders or Process Order would depend upon type of industry and fitment and is largely driven by the Production Planning team.


While we are on this topic of Production Orders and Process Orders, it might be beneficial to speak about other Cost Objects that are offered in Controlling.

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Why should you attend SAP Controlling 2018 conference?

Marjorie WThrough my careers as a cost accountant, accounting manager, project manager, and an education
consultant I’ve attended countless conferences on SAP FI-CO. My first experience with this particular
conference was in 2014. I was quite impressed with the roster of speakers, the breadth of the topics,
and the size of the event. It is just large enough to draw a diverse cross section of SAP CO users and
consultants and just small enough for you to be able to connect with individuals. Where else could
you chat over lunch with the legendary Janet Salmon?

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Explanation of FI Line Item Texts created by Material Ledger

Paul Material LedgerIf you use Material Ledger’s Actual Costing, then you would know that the Post Closing Step creates accounting documents depending on how the variances for the Material have been distributed. For example, a material with a price (or exchange rate) difference of $100 could be sold, scrapped, used in a production order that is complete, used in a production order that is not complete, transferred to another plant, or left in inventory. And this only refers to the differences that are created on the material itself (single-level), and not the differences that are transferred from other materials (multilevel) which have their own slew of Material Ledger postings.

 Because of this, it is easy to be overwhelmed by the volume of postings that are created by the Material Ledger’s closing entry and what they mean. Some companies choose to label the General ledger accounts appropriately to indicate what the posting is for, but if you do not understand the posting, it is easy to incorrectly label the General Ledger account. Also, you may not need a separate general ledger account for each scenario as that may lead to more General Ledger accounts than you need, and may create even more confusion.

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