COPA in S4 HANA - A Changing trend

COPA in S4 HANA

In the past, SAP advised companies to use costing-based CO-PA rather than, account-based CO-PA. The main reason for this was:

• Companies wanted a contribution-margin report with a breakdown of their cost-of-sales down to the cost components level for each cost bucket 
• They wanted a production variance report by variance categories 
• They wanted a breakdown of the individual cost buckets beyond the total value that was posted to the general ledger. 
• This functionality was not available in COPA account base before and therefor did the most companies use Cost Base COPA. 

The biggest issue with Cost based was the reconciliation effort, because cost base COPA did not use a direct alignment to the general ledger accounts.
 SAP’s latest SAP Simple Finance product , uses SAP HANA as its primary database, and opened up new options to build a COPA structures aligned with the general ledger. Due to this SAP enhanced Account-based CO-PA in SAP Simple Finance to provide:

• Detailed information on the cost of goods, break down cost-of-sales to the cost component of each cost bucket
• Production variances by variance categories
• Invoice quantities
• Reconciliation between COPA and the GL at Account level 

Due to this new functionality in Simple finance SAP is now advised companies to use account-based CO-PA and not costing-based CO-PA.

Define Accounts for Splitting the Cost of Goods Sold

By default, the cost of goods sold is posted to a single COGS account as defined in the account determination settings for material movements. In this Customizing activity, you can refine the settings for COGS postings to split the COGS amount and post it to different accounts according to the cost component elements
Steps:-

1. Create new G/L accounts on which you want to reflect the single cost components of the COGS posting.
2. Specify a splitting scheme for your chart of accounts and assign a cost component structure. The cost component structure groups the costs for each material according to cost component (such as material costs, internal activities, external activities, and overhead)

1. For each splitting scheme, specify the following information:

• Account to which all cost of goods sold are posted according to the account determination settings for material movements
• Cost component structure
• New COGS target account for the specified cost component (profit account or loss account

1. Assign the splitting scheme to the relevant companies.

Define Additional Quantity Fields

In financial accounting, reporting mainly focuses on amounts but sometimes you also want to include quantities in your reporting. For example, in the consumer goods industry it is common to store not just the quantity in the sales document (for example, box or pallet) but also to convert that quantity into a quantity that is common across all product lines (for example, pounds weight). This allows for the aggregation of quantities across product lines. You can then use these common quantities as drivers for management accounting (CO) allocation.
In Customizing, a standard unit of measure can be defined to ensure that the quantities can be totaled and is required if you want to use totals as drivers in allocation or top-down distribution. If you specify a standard unit of measure, updates to the line item table of the record are done using this standard unit of measure.
Activities:-

1. Assign a dimension to the additional quantity fields you are going to use.
2. If you want to allow the aggregation of quantities in order to use them as drivers in allocation or top-down distribution, specify a standard unit of measure
3. Implement the logic to fill the additional quantity fields in the BAdI FCO_COEP_QUANTITY for a specific controlling area.

Define Accounts for Splitting Price Differences

In this Customizing activity, you can refine the settings for splitting variance categories into general ledger (GL) accounts. This allows you to do detailed analysis on prices differences in your income statement. When the costs of producing materials are valuated based on standard prices, production variances can occur on production orders where there are differences between the actual costs and the target costs. These production variances are calculated in Product Cost Controlling (CO-PC) and are split into different variance categories. Depending on the reason for the differences, the system calculates the production variance, for example, price variances, quantity variances, lot-size variances, and scrap.
With the settlement of the production orders, you can post the production variances to Financial Accounting (FI) and Profitability Analysis (CO-PA). The amount settled to CO-PA can be settled to different variance categories so that after settlement you can display the single-variance categories in different value fields in cost-based CO-PA. The amount settled to FI is normally shown as one total amount on a G/L account for price differences. This account is defined in the account determination settings for material movements. The variance categories and therefore the reasons for the variances can normally not be reflected in this FI posting.
With this customizing activity, you can refine the FI posting to show the different variance categories for each cost element on different G/L accounts allowing you to show, for example, in your income statement, the reasons for the production differences.
Requirements
The following prerequisites must be met:

• You work with standard prices for producing materials. 
• You have executed the variance calculation in CO-PC. 
• You have defined a settlement profile that allows the settlement of variances for your order type. 
• For settlement to cost based CO-PA, you have defined a profitability accounting (PA) transfer structure.

Activities
For a refined posting of production variances on different G/L accounts in FI, you have to make the following settings:

1. Create new G/L accounts on which you want to reflect the postings of the different production variance
2. Choose the Customizing activity Define Accounts for Material Management.

• In the view Configuration Accounting Display, choose transaction PRD Cost (Price) Differences your chart of accounts.
• Assign the G/L accounts where price differences are normally posted to for the relevant valuation classes of your materials. 

1. Specify a splitting scheme for your controlling area and your chart of accounts.
2. Enter a cost element, cost element interval, or cost element group and/or a variance category and assign one of the newly created G/L accounts where you want to reflect these differences.

• Multiple cost elements and/or variance categories can be reflected at the same G/L account.

1. Select the Default checkbox for one of the entries. If no target account is specified for a cost element/variance category, the system automatically posts these amounts to the default G/L account.
2. Assign the splitting scheme to your company code and enter a valid from date.

S4 HANA 1605 Release - Cloud Edition

S4 HANA Latest Release

This blog summarises insights and highlights at a glance for released SAP #S4HANA Cloud Editions 1605. It marks the next major milestone on our path to the cloud, thanks to all the contribution from customers, partners and many teams cross SAP. We also did include several links providing more in-depth information.

 Focus of the second shipment of this year for the SAP S/4HANA Cloud Editions, includes updates for

- SAP S/4HANA Enterprise Management Cloud

- SAP S/4HANA Professional Services Cloud

- SAP S/4HANA Marketing Cloud

 Some key highlights: SAP S/4HANA Enterprise Management Cloud 1605

SAP S/4HANA Enterprise Management Cloud covers the most important business scenarios to run a company, from finance to procurement to manufacturing and supply chain like

- Streamlined Procure to Pay

- Accelerated Plan to Product

- Optimized Order to Cash

- HR Connectivity

- Core Finance

- Project Services

Country availability: 4 countries have been added: CN, FR, PH, BE (now covering 12 countries and 10 languages)

Additional business processes for

Optimized Order to Cash - Sales Process Performance Monitoring

Streamlined Procure to Pay - Subcontracting

Project Services - Internal Project Management

Core Finance - Asset Acquisition for Constructed Assets

Enhancements in the areas of

Streamlined Procure to Pay - Purchase Contract

Project Services - Customer Project Services

Core Finance - Standard Cost Calculation, Overhead Cost Accounting, Bank Account Management

SAP S/4HANA Enterprise Management Cloud is integrated with SAP SuccessFactors Employee Central, SAP C4C, SAP Hybris, and
SAP Ariba Network.

For a complete list of the new scope items shipped with 1605, click here.

Key highlights: SAP S/4HANA Professional Services Cloud 1605

(subset of Enterprise Cloud edition)

Integrates with SAP SuccessFactors Employee Central, SAP C4C, SAP Hybris, and SAP Ariba network

 

This edition supports end to end customer project services delivery. Project planning, costing, staffing, billing and financial accounting are the key pillars.

The solution supports customer with:

- real time information for better decision-making

- always accurate financial figures for projects and revenue recognition

- improve of people utilization and external resources

- reduce time from projects delivery to cash collection

Supported Countries: US, DE, AU, CA, CN, UK, HU, NL, SG, BE, FR, PH, HK, MY (now covering 14 countries and 10 languages)

Additional business processes for

Project Services - Inter-company Processes – Project-Based Services

Enhancements in the areas of Project Services

·         Customer Project Management

·         Sales Order Processing –Project-Based Services

·         Internal Project Management

SAP S/4HANA Professional Services Cloud is integrated with SAP SuccessFactors Employee Central and SAP Ariba Network

For a complete list of the new scope items shipped with 1605, click here.

Key highlights: SAP S/4HANA Marketing Cloud 1605

(subset of Enterprise Cloud edition)

Integrates with SAP SuccessFactors Employee Central and SAP Ariba Network

A.     Sup. Countries: US, DE, AU, CA, CN, UK, HU, NL, SG, BE, FR, PH, HK, MY

Languages: EN, DE, FR, ES, RU, CN, JA, PT, NL, HU

 

This edition leverage the full SAP Hybris Marketing scope in the cloud by Extensible out-of-the-box scope for six business scenarios:

·         Consumer and Customer Analytics

·         Segmentation and Campaign Execution

·         Marketing Recommendation

·         Marketing Executive Dashboard

·         Marketing Planning

·         Marketing Lead Management

Additional business processes for

·         External Campaign Execution

·         Newsletter Campaigns and Trigger-Based Campaigns

·         SAP ERP Integration

Enhancements for following business processes

·         Contact Segmentation and Campaign Execution by E-Mail and Text Message

·         Marketing Planning

·         Marketing Lead Management & Activities for Sales

Supported Languages: EN, DE, FR, ES, RU, CN, JA, PT, NL, HU

Standardized interfaces for data load and business integration scenarios e.g.

·         Load Social Media for SAP S/4HANA Marketing Cloud

·         File Based Data Load for SAP S/4HANA Marketing Cloud

·         Integration with SAP Cloud for Customer

·         Integration with Hybris Commerce

For a complete list of the new scope items shipped with 1605, click here.

Steps for New GL Project Execution

Steps for New GL Project execution

1.Contact SAP for the requirement

2.Sap sends Questioner to Customer regarding New GL Project & New GL Migration.

3.Once SAP get this Questioner then they discuss with Consultant working for client to select the Scenarios.

4.After concluding for Selected scenario(Migration Scenario),SAP verify this Selected scenarios in detail by logging into client System this process known as a SV ”Service session for Scenario Validation “

In this process SAP take the client data and use this data in SAP own’s System and validate the Scenario and then prepare a Service Report that known As a “SV report for Scenario Validation” .

5.Migration started in test System

6.At last SAP Again remotely Access customer system to complete “ Service Session for Test Validation “ Known As “TV” Test Validation.

In this session SAP gain Collect the data and then check them for Consistency .SAP prepare a service Report that known As a “SV report for Test Validation”

These are just the Project execution steps. Technical New GL migration will be done at step 5

S4 HANA Finance Interview Questions

S4 HANA Finance Interview Questions - Answers to come soon

1)      The Chart of depreciation has 3 depreciation areas and post APC in real time. Only one of these depreciation areas is active for an asset that you created. How many documents are created when you post an external acquisition to this Asset

Ø  1

Ø  2

Ø  3

Ø  4

2)      You migrated to Simple Finance. What changes in the material ledger architecture after this migration

Ø  Values for multi-level actual costing are calculated in real time and posted to ACDOCA

Ø  The Index and Total tables from material management are replaced by tables ACDOCA

Ø  All line items for material ledger are transferred to ACDOCA

Ø  Prices for multiple valuations in the material master are read-ready from table ACDOCA

3)      Which are the following tasks do you need to perform before you install Simple Finance

Note: 3 answers are correct

Ø  Define the source ledger for migration of balances

Ø  Performing the period end and closing activities for Asset accounting

Ø  Reconcile material management with GL

Ø  Check if all the relevant depreciation areas for parallel currencies exist

Ø  Activate New GL business functions using the activate business function transaction SFW5

4)      Created an Appendix ledger in Customizing. What do you now need to assign to this Appendix ledger

Ø  An Account type

Ø  Splitting rule

Ø  Document type

Ø  Authorization group

5)      Which of the following line items will be migrated to Universal journal

Note: 2 answers are correct

Ø  Accounts Receivables

Ø  Cost Center Accounting

Ø  Costing based COPA

Ø  Classic PC

6)      You are configuring a company code and a Controlling area in Simple Finance.

Which configuration is possible

Ø  Same Fiscal year variant and different operating chart of accounts

Ø  Different Fiscal year variant and same operating chart of accounts

Ø  Different fiscal year variant and different operating chart of accounts

Same fiscal year variant and same Operating chart of accounts

7)      Which upgrade cycle does the cloud edition of SAP S4 HANA provide

Ø  Optional Annually

Ø  Optional Quarterly

Ø  Required Quarterly

Ø  Required Annually

8)      What does the system do when you execute the Re-generate CDS views and field mapping transaction

Note: 3 answers are correct

Ø  It re-generate custom fields in CDS view

Ø  It re directs SELECT statements from the concerned data base tables to the corresponding compatible views

Ø  It acts COPA tables to ACDOCA

Ø  It re-directs WRITE statements from the concerned data base table to the line item tables ACDOCA

Ø  It re-generates the mapping of custom fields in the data migration

9)      In which level do you plan the data records in Integrated Business Planning for Finance

Ø  Financial Management area + Commitment item

Ø  Company code + GL account

Ø  Controlling area + Cost element

Ø  Characteristics + Value fields

10)  You customer has used the following system configuration for ledgers. 0L and L1 are standard ledgers. They are assigned to ledger group GRP1. 2 appendix ledger – A1 and A2 are based on 0L. Appendix ledger A3 is based on L1.

What happens when there is a posting happens to ledger group L1

Ø  Only L1 is updated

Ø  All the ledgers are updated

Ø  0L and L1 are updated

Ø  L1 and L3 are updated

11)  Which of the following business processes posts accounting principle dependent documents in the Universal journal entry

Note: 2 answers are correct

Ø  Direct asset acquisition from vendor

Ø  Periodic acquisition and production costs APC postings

Ø  Order settlement to a AUC

Ø  Planned depreciation

12)  Your customer uses a company code with a fiscal year variant that has 12 normal postings and 4 special postings in Leading ledger. The Company code is linked to a Controlling Area that has fiscal year variant that has 12 normal and 2 special posting periods. The parallel ledger L1 of the company code uses the fiscal year variant that has 4 normal and 2 special posting periods. All fiscal year variants have the same start and the end dates.

What do you need to change to migrate to SAP Simple Finance

Ø  The Fiscal year variant in FI leading ledger must be aligned with the Controlling Area

Ø  The Fiscal year variant of the Controlling Area must be aligned with FI leading ledger

Ø  The Fiscal year variant in the FI Non-leading ledger must be aligned with the leading ledger

Ø  The Fiscal year variant in all FI ledgers must be aligned to the Controlling Area

13)  In New Asset Accounting in Simple Finance. Which of the following tables are updated after the partial sale of Asset

Ø  Document header Asset posting – ANEK

Ø  Planned depreciation and revaluations – FAAT_PLAN_VALUES

Ø  Depreciation terms – ANLB

Ø  Year dependent attributes for depreciation – FAAT_YDDA

14)  Which of the following components update data in real time Universal Journal for Simple Finance

Note: 3 answers are correct

Ø  O/H costing

Ø  Asset Accounting

Ø  Product cost for planning

Ø  Account based COPA

Ø  Costing based COPA

15)  Your customer is setting up a New Simple Finance system for a new subsidiary. The customer wants to migrate a custom ALV report that read from the table FAGLFLEXT from its legacy SAP ECC 6.0

What would you do before proposing a solution

Note: 2 answers are correct

Ø  Check if you can transfer the data from Simple Finance system to Legacy system SAP 6.0 and export the report from there.

Ø  Check if the new standard delivered system including SAP FIORI includes a report that could cover the customers requirement

Ø  Check if there are custom fields in FAGLFLEXT on the legacy system that was used in the report and not available in the new system

Check if you can setup a separate BW system and feed the data from both systems to the SAP BW system to export the report from there

16)  How can you setup the Material ledger to update the Universal Journal in Simple Finance

Ø  Use the material ledger Costing run

Ø  Configure the material ledger with price determination indicator 3

Ø  Use the material ledger alternative valuation run

Ø  Configure the material ledger with price determination indicator 2

17)  What can you do with parallel accounting using GL accounts fields in the company code settings for

Ledgers

Ø  Assign more than 1 accounting principle to a ledger

Ø  Use the Second additional currency field for new installation

Ø  Define different accounts for each accounting principle in Asset accounting

Ø  Assign Appendix ledger to the ledger

18)  Your customer defines the Internal Order with a profitability segment as a receiver in the settlement rule

Which financial documents is generated when you post a invoice to the Internal Order

Note: 2 answers are correct

Ø  Costing based Profitability document

Ø  Asset accounting document

Ø  Controlling document

Ø  Accounting document

19)  The system is on SAP Simple Finance. You have defined 3 accounting principles with corresponding depreciation areas that posts in real time. You post a partial scrapping to the IFRS accounting principle for an asset.

How many documents are created

Ø  One ledger groups specific documents for the IFRS accounting principle

Ø  One operational entry document and one ledger group specific document for IFRS accounting principle

Ø  One operational entry document and one ledger groups specific document for each accounting principle

Ø  One ledger group specific document for each accounting principle

20)  You activate Account based COPA in SAP Simple Finance. Which benefits does it provide

Note: 2 answers are correct

Ø  You no longer need to execute settlement for COPA

Ø  You can freely define & post to value fields

Ø  You can update profitability attributes for every Profit/Loss line item

Ø  The system derives profitability attributes during posting

21)  You customer wants to specify the document types used for Controlling transactions.

On which of the following levels can you specify the document types

Note: 3 answers are correct

Ø  Controlling Area

Ø  Controlling Business transactions

Ø  Valuation Area

Ø  Cross company postings

Ø  Company code

22)  A customer is using Simple Finance. Accounts approach for parallel valuation is used. There are 2 parallel currencies and 3 accounting principles. Your customer wants to configure the New Asset Accounting, additionally the customer wants to evaluate the delta between values for the accounting principles for each asset classes in the company code currency

What is the minimum number of depreciation areas that you need to configure

Ø  6

Ø  9

Ø  12

Ø  15

23)  What are the benefits of Integrated Business Planning for Finance

Ø  GL Historic planned data can be migrated to the new solution

Ø  Existing planned data processes are no longer required

Ø  Templates for standard planning scenarios are provided

Ø  New Single table is available to store all the planning data

24)  Your customer is using classic GL in SAP ERP. How can the customer migrate to SAP Simple finance and also take the advantage of document splitting

Ø  Migrate to New GL at the end of this period and migrate to Simple finance at the end of the future period

Ø  Migrate to New GL at the end of this fiscal year and Migrate to Simple Finance at the period end

Ø  Migrate to new GL at the end of this fiscal year and Migrate to Simple Finance at the end of the subsequent fiscal year

Ø  Migrate to Simple Finance at period end and introduce New GL functions later

25)  In the New Asset Accounting in Simple Finance, what has changed in the posting logic

Ø  The Accounting principle specific documents inherit the document type from the operational entry document

Ø  The same reconciliation account applies for all accounting principles

Ø  The operational entry document updates the asset values directly

Ø  Additional accounting principles specific documents are always created

26)  What is the benefit when using Central finance in SAP Simple Finance

Ø  You can use Simple finance with classic GL features

Ø  You avoid the financial consolidation for separate legal entities

Ø  You avoid migrating the legacy system to Simple Finance

Ø  You can move the existing landscape system to cloud

27)  Your customer wants to migrate from Classic GL directly to SAP Simple Finance. What must you do

Ø  Enable Document Splitting

Ø  Use a New GL Migration service

Ø  Use the provided migration guide and migration monitor

Ø  Wait until the year and then start migration

28)  Customer has the central user maintenance system where users maintain the single password for all IT systems. The business user reported that they cannot access the SAP FIORI Launchpad and the system reports that the user has locked. The same user can access SAP ERP using the GUI without any problems

What do you need to do to provide the access for FIORI Launch Pad

Ø  Reset the user and SAP GUI for the backend server

Ø  Reset the users password in the Central System

Ø  Unlock the user in the SAP GUI for the frontend server

Ø  Re-assign the user in the SAP FIORI Launchpad designer

29)  What Asset accounting data updates the Universal Journal in SAP Simple Finance

Ø  Actual, Statistical and Planned postings

Ø  Actual and Statistical postings

Ø  Actual and Planned postings

Ø  Actual Postings

30)  Which of the following CO transactions generate entries for COEP table as PRIMA NOTA in Simple Finance

Note: 2 answers are correct

Ø  Reposting of cost and revenues

Ø  Manual Activity allocation

Ø  Internal Order Settlement

Ø  Assessment Cycle posting

31)  Which posting period checks takes place when you post Controlling relevant documents in Simple Finance

Note: 2 answers are correct

Ø  General ledger period opening and closing

Ø  Controlling Period Lock

Ø  Asset Accounting Period Lock

Ø  Material management period

32)  Why do you create an Appendix Ledger in Simple Finance

Note: 3 answers are correct

Ø  To distribute postings between FI and CO

Ø  To distribute revenues differently

Ø  To post in closed periods

Ø  To save postings for different depreciation areas

Ø  To Post adjustments for Consolidation purposes

33)  How are Settlement rules for AUC defined in New Asset Accounting

Ø  The system defines the settlement rules per accounting principle from the investment object

Ø  The system defines the settlement rule per accounting principle based on Asset classes

Ø  You define a single asset for settlement for all lines per accounting principle

Ø  You define settlement rules for all line per accounting principle

34)  A system is configured with document splitting to produce Profit/Loss statement at the profit center level.

All accounts are always split by Profit center. You post the vendor invoice document before you migrate to SAP Simple Finance. Credit: vendor and Debit: Office Supplies and Transportation costs. 2 expenses are posted to separate profit centers. The invoice carries 10% purchase tax for both (same tax code)

How many lines will be created in the Universal Journal during Migration

Ø  4

Ø  5

Ø  6

Ø  8

35)  The Customer uses Classic GL and plans to migrate to SAP Simple Finance.

What can you do in combination with this migration

Ø  Eliminate reconciliation with CO

Ø  Change parallel accounting for the account approach to the ledger approach

Ø  Introduce Document splitting

Ø  Introduce additional parallel ledger

36)  A customer is currently using BPC and HANA Database. The customer is in the process of setting up of Central Finance system with Simple Finance premise Edition and wants to use Integrated Business Planning for Finance instead of BPC

What is the benefit of using IBP for finance in the scenario

Ø  Pre-installed SAP Fiori Apps for planning are provided

Ø  Advanced IBPF consolidation capabilities are provided

Ø  BPC for SAP Net-Weaver licensing fees are not required

Ø  The amount of data that needs to be reconciled between systems is reduced

37)  What is added to the migrated line items to calculate totals when you migrate balances to Simple Finance

Ø  The delta from the parked document

Ø  The delta from the Index document

Ø  The delta from the totals table

Ø  The delta from the Controlling tables