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In the previous posts about S/4 HANA, I have explained what are all the factors that need to be considered while migrating to S/4HANA and what are the options available while migrating to S/4. As you probably aware, S/4HANA should be looked as an opportunity to digitally transform the business, not merely as a technical upgrade. You can find more details about this in my previous posts. In this post, let’s explore the Cost Center Accounting in S/4HANA at a high level.

 

Organizational Units

As all the cost elements are now part of operational Chart Of Accounts (COA) in S/4, the same COA is being used in FI and CO. For detailed information please refer my previous posts.

If cross company code controlling is needed, the same COA needs to be assigned to all the company codes which are assigned to a controlling area

Currency: If controlling area and company code assignment are 1:1, controlling area currency must be the same as the company code currency. In case of 1:N assignments, group currency can be defined as controlling area currency

 

Master Data

Fiori Apps are available for

  • Cost Center / Cost element maintenance
  • Cost Center group maintenance
  • Activity Type Maintenance
  • Activity Planning
  • Statistical Key Figure Maintenance
  • Cost Center group maintenance
  • Cost Allocation
  • Controlling Documents

Fiori Apps are being added/delivered in every release. Please check the Fiori Apps Library for complete list of applications available

Time dependency is available in Cost Centers, Cost Elements and Activity Types. Collective processing on master data is supported and the groups can be used for this purpose. I.e. Cost Center groups

 

Postings and allocations

Following combinations of posting are possible

  1. Real Order / Statistical Profit Center
  2. Real Order / Statistical Cost Center and Profit Center
  3. Statistical Order / Cost Center and Profit Center
  4. Real Profitability Segment / Statistical Cost Center and Profit Center

The costs posted to a real order can be reposted or settled to other receivers. If Profit Center Accounting is enabled, the profit centers can be statistically assigned to the real orders

If the order is marked as statistical order, then the real cost object assignment is needed. I.e. Cost Center

Event based allocations by

  • Reposting costs and revenues
  • Reposting¬† line items
  • Direct activity allocations
  • Reposting direct activity allocations

Validations and substitutions can be implemented for ensuring data integrity.

During the re-posting, the system does not check the amount/value in sending cost center which can result in negative costs in sending cost centers

Unlike the revenue/costs reposting, the line item re-posting will always have the reference to the original document.

Valuation Date configuration can be used to maintain a different valuation date for price determination other than the posting date.

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