S/4 HANA Profitability
Analysis Configuration
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TABLE OF CONTENTS
INTRODUCTION .............................................................................................4
1.1 Structures ....................................................................................................... 5
1.1.1 Create Operating Concern ..................................................................... 5
1.1.2 Maintain Characteristics ........................................................................ 6
1.1.4 Maintain Operating Concern .................................................................27
1.1.5 Set Operating Concern (KEBC) ............................................................61
1.1.6 Assign Controlling Area to Operating concern ......................................61
1.1.7 Copy Operating Concern including Customizing ..................................62
1.2 Master Data .................................................................................................. 65
1.2.1 Define Characteristic Derivation ............................................................65
1.3 Planning ....................................................................................................... 85
1.3.1 Maintain Versions ..................................................................................85
1.3.2 Maintain Characteristic Groups..............................................................87
1.3.3 Assign Characteristic Groups for Assignment Screen ...........................91
1.3.4 Assign Characteristic Groups to Plan Cycles.........................................93
1.3.5 Assign Receiver Plan Version................................................................95
1.3.6 Cost Element Creation for Allocation .....................................................97
1.3.7 Define Structure of Cost Center Assessment/Process Cost Assessment
......................................................................................................................103
1.3.8 Define Number Ranges for Planning Data ...........................................109
1.3.9 Set Up Planning Framework (Optional) ...............................................113
1.4 Flows of Actual Values ............................................................................... 129
1.4.1 Automatic Account Assignment (OKB9) ..............................................129
1.4.2 Assign Characteristic Groups to Actual Cycles ....................................131
1.4.3 Assess Cost Center Costs / Process Costs .........................................132
1.4.4 Activate Profitability Analysis ...............................................................139
1.5 Actual postings ........................................................................................... 139
1.5.1 Define Number Ranges for Actual Postings ........................................139
1.6 Information System .................................................................................... 141
1.6.1 Assign Cost element Hierarchy for Margin Analysis ............................141
1.6.2 Define Forms for Profitability Reports ..................................................143
1.6.3 Create Profitability Report ....................................................................186
1.7 Tools .......................................................................................................... 195
1.7.1 Transport (KE3I) ..................................................................................195
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INTRODUCTION
Universal group (a multinational company) has companies based in various
countries. A single controlling area 6600 and single operating concern 6600 will be
used for all the companies for simplicity and to avoid duplication.
Universal Group is interested in getting product wise contribution margins and the
profit up to EBIT (Earnings before interest and tax) level based on profit
center/segment.
In case business decides to work with Profitability Analysis in S/4 HANA then it is
now mandatory to activate Margin Analysis (Account based PA).
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For doing the configuration we use the following path on the SAP application
screen:-
SAP Menu → Tools → Customizing → IMG → SPRO - Execute Project →
Configuration for all the modules will be done here. The above path will not
be referred henceforth; we will directly refer to the IMG node.
1.1 Structures
1.1.1 Create Operating Concern
SAP Customizing Implementation Guide→Enterprise Structure → Definition →
Controlling → Create Operating Concern
Click on
Update the operating concern code and description as shown below:-
Click on
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1.1.2 Maintain Characteristics
SAP Customizing Implementation Guide → Controlling → Profitability Analysis →
Structures → Define operating concern → Maintain Characteristics
Characteristics are the analysis dimensions for PA. They define what items or
objects the user will be able to analyze. Several essential and obvious
characteristics (like "sales organization"," customer", "product", etc.) are pre-
defined automatically for every operating concern; these are known as fixed
characteristics.
In addition to the fixed characteristics, up to 50 non-fixed characteristics can be
added to an operating concern.
These non-fixed characteristics must be added to the field catalog before
they can be used to define a new operating concern.
Characteristics in the field catalog can be accessed in any client.
Characteristics can be categorized according to how and when they are defined:
Copying characteristics from reference tables: You can use characteristics that
already exist in other applications when you define your operating concerns.
Characteristics created from scratch: You can create ones which are only required
in Profitability Analysis. To derive values for these characteristics, you need to define
your own derivation strategy.
Predefined characteristics: In addition to the fixed characteristics, a number of other
predefined characteristics are available in the field catalog and can be added to your
operating concern if desired. These include the customer group, customer district,
country, and others.
Fixed characteristics: A number of fundamental characteristics are automatically
predefined in every operating concern. These include the product number, company
code, billing type, business area, sales order, and so on.
Let us first view the Characteristics delivered by SAP.
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Update the following:-
Click on
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We find that characteristics such as Material Group, Sales Group are already
available.
Let us see the fixed characteristics.
Fixed characteristics can be seen as follows
Click on Extras → Fixed Fields
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Click to scroll down
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Let us create the following characteristics since they are not available:-
1) Trading partner (VBUND) from the table KNA1 (Customer master)
2) Ship to party (KUNWE) from the table PAPARTNER
3) User defined characteristic WW012 – Country shipped to
4) Payer from the table PAPARTNER
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5) Click to change
Click
Click to create new characteristics
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Update the following Table for Customer Master general data (KNA1):-
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Select field VBUND – Trading Partner
Click
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Trading partner is now populated in the list of characteristics as seen below:-
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We will now create a user defined characteristic as follows. Select without value
maintenance as we will populate data from sap country field.
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Update the following;-
Click to activate
These warning message are describing the same fields are being used in other
characteristics. We can ignore these messages.
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Click Yes
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Update the table PAPARTNER to select the characteristic ship to party:-
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Select Ship to party
Click
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The characteristic ship to party is now updated in the list of characteristics
Click on Activate and then save
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The characteristics are saved.
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Update the table PAPARTNER to select the characteristic Payer:-
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Click
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The Payer is now updated in the characteristic catalog as seen below
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1.1.4 Maintain Operating Concern
SAP CUSTOMIZING IMPLEMENTATION GUIDE → Controlling → Profitability
Analysis → Structures → Define operating concern → Maintain Operating Concern
Operating Concern is the organizational unit in Controlling- Profitability analysis
(CO-PA).
The operating concern can have 2 approaches:-
1) Costing based Profitability Analysis – This groups costs and revenues
according to value fields and costing based valuation approaches.
2) Margin Analysis(Account based) Profitability Analysis - groups costs and
revenues according to cost elements and uses an accounting based
valuation approach. Margin analysis based Profitability is permanently
reconciled with Financial accounting.
Margin Analysis based Profitability Analysis is now mandatory to activate in
S/4 HANA in case we decide to work with Profitability Analysis. This results
in the ACDOCA table also getting updated with the new characteristics
created in Profitability Analysis
We define operating concern by selecting the characteristic (the one created by us
and SAP delivered).
The structure of an operating concern is valid in all clients.
Any new characteristic created in the operating concern will be updated in the
ACDOCA table by executing the program
FCO_ADD_COPA_FIELD_TO_ACDOCA
We will configure the Margin Analysis based CO-PA (which is mandatory now).
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Update the following:-
Click
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Click
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Update the following:-
Click
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Press enter
Click to create Data structure
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Transfer the characteristic from the right side which is available, to the left side so
that it is available in the operating concern 6600.
We will scroll down to see the relevant characteristic such as sales office, sales
group. Select it by marking it
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Click
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Scroll down and select
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Click
Click
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Click
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Click
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Click on tab
Click
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Click
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Update the following:-
Press enter
Fiscal year variant:-The fiscal year variant should match with the controlling area
fiscal year variant and the company code fiscal year variant. We select V3 since
Company code 6600; controlling area 6600 has the same fiscal year variant.
Click on
Click on
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Click on
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Click on
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Run this program FCO_ADD_COPA_FIELD_TO_ACDOCA in background using
tcode SE38
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Click
Click
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Click
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Click
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Check the status in SM37
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Click
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Go back to KEA0
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Click on
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Check the new fields added in the ACDOCA table using transaction code SE16N
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Update the table ACDOCA in the field table as shown below and press the enter
button.
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Click on and update “Bill to Party” therein so that you can see the results
below
The characteristic Bill to Party, Ship to party are now seen in the ACDOCA table
which we created in the earlier step.
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1.1.5 Set Operating Concern (KEBC)
SAP CUSTOMIZING IMPLEMENTATION GUIDE → Controlling → Profitability
Analysis → Structures → Set Operating Concern
Here we select the operating concern 6600. All functions that we then execute
thereafter and until we logoff will relate to that type of profitability analysis for the
specified operating concern. We can click on the save button to store the operating
concern 6600 in our user master.
From the SAP application side we can call this through transaction code KEBC.
Update the operating concern 6600
Click to save the settings as user default
1.1.6 Assign Controlling Area to Operating concern
SAP Customizing Implementation Guide → Enterprise Structure → Assignment →
Controlling → Assign controlling area to operating concern
We assign the controlling area 6600 to operating concern 6600.
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Update the following: -
Click
Click on
1.1.7 Copy Operating Concern including Customizing
SAP CUSTOMIZING IMPLEMENTATION GUIDE → Controlling → Profitability
Analysis → Structures → Define operating concern → Sample Operating Concerns
→ Copy Operating Concern including Customizing
This configuration is important when we want to copy customizing settings from an
existing operating concern to a new operating concern. This is very useful when
we are doing rollouts for the same group.
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This is required where the design implemented is separate controlling area
and separate operating concern for each company code. We can copy settings
from an existing operating concern and make changes required for the new
operating concern.
Here we specify the source operating concern and the target operating concerns.
We can choose whether we want to copy data structures only, customizing settings
only or both.
These are copied in separate steps:-
1) We need to copy the data structures first. In case we want to make some
changes to the new operating concern after copying, we should generate the
environment. We must enter a target operating concern name that does not yet
exist.
2) We can then copy the customizing settings.
Click
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1.2 Master Data
1.2.1 Define Characteristic Derivation
SAP CUSTOMIZING IMPLEMENTATION GUIDE → Controlling → Profitability
Analysis → Master Data → Define Characteristic Derivation
Here we set up the derivation of characteristic values. Derivation allows us to find
values for certain characteristics automatically based on the known values of other
characteristics, where these characteristics are logically dependent on one
another.
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There is no derivation rules displayed currently as can be seen below:-
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To see the system generated derivation rules, click as shown below:-
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The system generated derivation rules are displayed below:-
Click Change to create user defined derivation rules in addition to the
system generated derivation rules.
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Click Create Step
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