In continuation to the earlier two changes (S4HANA Finance 1605 – Change Series – Part 1 – Multiple currencies in Universal Journal  and S4HANA Finance 1605 – Change Series – Part 2 – Transfer Price), please below changes related to Account based COPA Characteristics Derivation in Income statement.

In S/4HANA 1605, there is a possibility to derive additional COPA characteristics in Income statement for better analysis of profitability with real time reconciliation with FI.

For Account based COPA we can activate derivation of profitability characteristics (account assignments) for G/L line items in the universal journal.

For below cost object we need to activate the setting given for P&L account

     1. Cost center – cost center category need to be activated for P&L account

     2. Internal order – Order type need to be activated for P&L account

     3. Project – Project profile need to be activated for P&L account

     4. Sales Order – Item category need to be activated for P&L account

     5. Production order –  Order type need to be activated for P&L account

For cost center it read derivation to update the profitability segment characteristics

For other cost objects (Sales order, Production order, internal order and project) first it read the settlement rule to COPA in the corresponding account assignment object. Then it try to read the profitability segment in a line item (e.g. a sales order is assigned to the income statement item or the account assignment object). Last it try to read the COPA derivation.

Profitability segment number is transferred to Financials & profitability characteristics are moved to the income statement item

Use Cases:

     1. Customer project scenario. Derivation of profitability attributes from assigned sales order item, therefore, no settlement required anymore

     2. Derive additional characteristics with primary postings on cost center

     3. Goods issue for delivery or billing document item in a sell-from-stock scenario

     4. Manual FI posting to profitability segment

     5. Settlement of a cost object to Profitability Analysis

Please find below the further Change Documents:

4. Central Finance S4HANA Finance 1605 – Change Series – Part 4 – Central Finance

I am still testing the new functionalities to get the best possible ways to match with the client’s requirements. I will keep updating the documents.

Thanks .

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