With delivery of SAP S/4Hana, database structure has change significantly in Finance Accounting. The birth of “Single-source of Truth” table ACDOCA leads to radical changes with CO-PA Account-based. Here below are some notes for new functionalities and their effects in consideration when designing new system.
Summary of costing-base COPA in S4/HANA
- Only cost of sales accounting is supported.
- Rows and characteristics determine its structure.
- SAP S/4HANA doesn’t add any new functions.
- The SAP HANA database improves its performance significantly.
- Runtime errors and long wait times no longer play a role.
Changes in Account-Based Profitability Analysis
COGS cost split
The new account-based Profitability Analysis concept in SAP S/4HANA Finance allows splitting costs of sales into cost items according to the cost component layout. However, account-based Profitability Analysis only enables you to map costs of sales with the standard price; you can’t use different costing variants for alternative valuations. In SAP ERP, the COGS in Account-based is posted in a single account, there for go to single position on financial statements.
Customizing note for COGS cost splitting
- Profile is assigned at level of Company Code
- Current Released Standard cost of Future released Standard cost
- Source account (COGS) can be the same or different account with Offsetting Account
- Can use same Document type or Different Doc type
- Can assign different target account following different Valuation Views (Blank is for all)
Production Variance Split
When production variances are settled, they are mapped as variance categories. Up to now, variance categories could only be mapped in costing- based Profitability Analysis in different value fields. With SAP S/4HANA Finance, you can define a different P&L account for each variance category; accordingly, variance categories now can also be mapped in account-based Profitability Analysis reporting. Production variance in SAP ERP has the same limit as COGS in scope of Account-based COPA.
To execute Variance splitting, below criteria must be met
- Material is valued at Standard cost
- Variance calculation is executed at least once a month
- Order type used in production has settlement profile
- Accounts for variance settlement are created
Configuration note for Variance splitting
- Define Splitting profile
- Account assigned to different categories
- One default for variances which cannot be categorized
- Assign profile to company code: on valid date
Quantity fields
Account-based Profitability Analysis in SAP S/4HANA Finance allows you to map up to three quantity fields with different units of measure. (SAP ERP allows 1 quantity field which is available in posting)
Statistical Values
I will cover this in another blog post.
So with these changes, SAP account-based COPA has closed major short-comings of the classic account-based COPA in SAP ERP comparing to costing-based COPA. Let have a look at comparison table between 2 option of COPA in S4/HANA.
| Function | Costing-Based Profitability Analysis | Account-Based Profitability Analysis | Effect |
| Data Model | CO generated tables (table CE1XXXX,etc.). | Universal Journal(table ACDOCA). | More effort spent to reconcile FI vs CO data in Costing-base COPA. |
| Statistical Values | Supports the mapping and reporting of statistical values. | Doesn’t support statistical values. Statistical value has been supported since S4/HANA 1809 | This gap is closed with release of S4/HANA 1809. |
| Time of Postings | Postings are made irrespective of G/L account postings (e.g., the COGS is posted in costing based Profitability Analysis when the invoice is transferred to financial accounting). |
Postings toaccount-based Profitability Analysis are made when G/L account postings are created. | Costing-based Profitability Analysis is harder to reconcile with financial accounting. |
| Valuation | You can carry out valuations with various costing variants. | Only a valuation that corresponds to the material master is permitted. | Restrictions are for user departments for the valuation with only one costing variant. |
Choosing between Costing-based and Account-based COPA
If you haven’t used Profitability Analysis yet, you should also activate account-based Profitability Analysis in SAP S/4HANA. You should only activate costing-based Profitability Analysis if one of the following criteria is met:
- Sales order stock is reported(sales order data doesn’t flow in to account-based COPA).
Statistical conditions are used.- Alternative valuation is used with various costing variants.
- Alternative, detailed splitting of specific G/L accounts is used with value fields.
After all, it is easy to predict that Account-based COPA is going to be dominant option in S4/HANA.
Kite's world 