S4HANA Finance 1605 – Change Series – Part 2 – Transfer Price
In addition to the first document related to the changes in S/4HANA Finance 1605 S4HANA Finance 1605 – Change Series – Part 1 – Multiple currencies in Universal Journal, please find below few changes related to the Transfer price functionality
It is really a good start for the most interesting functionality of SAP FICO, even though there is a lot improvement with simplification and addition is expected.
This document also having very high level description for each changes, so please let me know if you want me to add my understanding.
a. Let me highlight how we do the different valuation booking in ECC in below modules
i. FI – it uses parallel currency types
ii. AA – it uses depreciation areas
iii. CO – It uses parallel actual versions, where actual will be in version 0 and delta to version 0 will be in parallel versions.
iv. ML – It uses currency types
b. For having this all module better integrated, in S/4HANA Finance 1605 we have new field “valuation view” (VALUTYP). This field get available once we activate transfer price for a controlling area and assign currency and valuation profile. This setting is available in the same screen where define controlling area setting
c. For below Accounting approaches we need different settings required
i. Ledger approach – Parallel single valuation ledgers
1. In this approach, we have a separate ledger for each valuation view
2. Currency type of the specific valuation view will be assigned to the ledger
ii. Account approach – Multi valuation ledger
1. In this approach, we have a single ledger with separate amount fields for all valuation views
2. currency type of all valuation views will be assigned to the ledger
d. After Activating the transfer price, valuation view (VALUTYP) will be assigned in below setting for the modules
1. Valuation view will be assigned to the Currency type.
a. Each currency type for group valuation and profit center valuation will be assign a base currency type of legal valuation. Where the last digit in the custom currency type do not define the valuation type (e.g. 2 in currency type A2 as profit center valuation) because we assign valuation view manually to the custom currency type).
2. Valuation view will be assigned to Ledger.
a. If we follow multiple valuation ledger approach then we will not assign any valuation view as all the valuation views are applicable based on the currency type with valuation view is assign to the ledger.
b. If we follow single valuation ledger approach then we will assign the applicable valuation view to each ledger
3. Currency type assignment to company code & ledger combination
a. Local currency
i. Ledger Approach – Parallel single valuation ledgers
1. 10 to leading ledger and 11/12 to the non-leading ledger with applicable valuation view assigned
ii. Account approach – Multi valuation ledger –
1. 10 to the local currency
b. Global Currency
i. Parallel single valuation ledgers –
1. 30 to leading ledger and 31/32 to the non-leading ledger with applicable valuation view assigned
ii. Multi valuation ledger –
1. 30 to the local currency
c. Freely defined currency
i. You can assign the currency type to ledger if the valuation view assigned to currency type and ledger are matching (if a ledger is assigned to group valuation view then you can assign currency type 12, 32 or any custom currency type which is having valuation view “group valuation” assigned.
1. Assign ledger to CO version
a. Assign the ledger to the CO actual version with required valuation view
2. Valuation view assignment to split of COGS
a. COGS split Scheme will be assigned to valuation view with combination of company code, where if you do not assign any valuation view then all valuation view will be applicable for the split scheme
1. In asset Accounting, all the currency type & ledger combination will have a depreciation area assigned
1. For Material Ledger, be it parallel single valuation ledger approach or multiple valuation ledger approach, make sure that all the applicable ML currency types are assign in HSL, KSL, OSL or VSL currency type field for respective ledger with applicable valuation view.
Please find below further Change Documents:
3. COPA Character derivation S4HANA Finance 1605 – Change Series – Part 3 – COPA Characteristics Derivation in Income statement
4. Central Finance S4HANA Finance 1605 – Change Series – Part 4 – Central Finance
I am still testing the new functionalities to get best possible ways to match with the clients requirements. I will keep updating the document.