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Author's profile photo Amol Rugge

Splitting Price Difference with SAP S/4 HANA Finance


Splitting Price Differences with SAP S/4 HANA Finance


In this blog, I will explain about the SAP S/4 Finance functionality for “Split of Price Difference “. Normally Semi Finish and Finish Products are managed with price Indicator ‘S’ Standard Price.

Normally Semi Finish and Finish Material Valuated with standard price method value gets calculated from Standard Product Cost Estimation. Standard Product cost estimation is done using production planning master data and Controlling master data like BOM, Routing, Activity Price, Raw Material Price.

In actual scenario, once the production order gets processed and completed we found there is the difference between planned (Standard Cost Estimation) and in actual cost. In SAP this difference gets calculated at the month end using settlement process. Once the settlement completed system pass the accounting entries for the difference value.

Earlier in ECC is get recorded only on one account of “ Price Difference Account” and Costing base COPA is get distributed as per variance categories but not within Finance to GL’s. To get recorded this difference in Finance and get real-time reconciled with SAP COPA, SAP come with functionality Price Difference Split in S/4 HANA.


Configuration Steps required for “Price Difference Split “

  1. GL master data need to be created as per different type of variance category.
  2. Assign PRD account in OBYC.
  3. Define Price Difference Split Profile
  4. Assign GL Master to different Variance categories
  5. Assign Company Code to Price Difference Split Profile


To get in details how it works we need follow Process steps as enlisted below.


  1. COPC (Product costing of Finish Product) to get Standard Price of the Material.
  2. Create Master data for BOM and routing in PP.
  3. Create Production Order to GRN from production order process (TECO Status of the order).
  4. Variance Calculation
  5. Order Settlement.



System Configuration with screen shot,

    1. GL master data: As per requirement created GL Master Data for a different type of variance category.GL master Screenshot


As shown above, GL masters created all 9 different types of the variances.

GL master List Screenshot

  1. Price difference account assignment as MM FICO IntegrationScreen Shot for OBYC


  1. Price Difference Split Profile: Here we have to define profile for price difference with combination of Chart of Accounts and Controlling Area.


Financial Accounting (New) > General Ledger Accounting (New) > Periodic Processing > Integration > Materials Management > Define Accounts for Splitting Price Differences

Screenshot for Price Difference Split Profile,


  1. Assign GL with Price Variance Categories: We have created Different GLS Master for each of the price variance will assign that GLS over here to get split single price variance account in this different GLS.For example, for Price Variance, we assigned 52071000 GL

Screenshot for GL assignment with Categories,

List of the GL Assignment,

Screenshot with all categories assignment with GL’s,

  1. Price Diff Split and Company Code Assignment: Once we complete with split profile configuration we have to do an assignment of Company code to split profile. In this, we have to give valid from date. From this dating system will start price variance split for company code.

Screen shot for Company code assignment with Price Difference Profile,

Now we have done with pre requites system configuration steps, we will processed with process steps to see how its work,

  1. Product Costing for Finish Product: I have created Semi Finish product  master and completed product costing run for the same using CK40N.

Screen shot for Product Cost for Material,

  1. BOM & Routing Master : Before go for product costing system should have master data for BOM and Routing in Production Planning,

Screen shot for Bill of Material Master and Routing Master,



  1. Production Order Process : Once production order completed and finish product received from order its should be set as TECO Status

Screen shot for Production order Technical Completed ,

  1. Variance Calculation: As the month end activate to calculated variance of the production order and category of the variance we have to run variance calculation for the order.

Tcode: KKS2

Screen shot for Variance Calculation,


Once the variance is get calculated we have perform next steps of the process it’s the settlement of the order.


  1. Order Settlement: As the month end activity , Production orders need to be settled to record actual cost and variance of the production order. This activity is completed using Tcode KO88

Screen Shot for Order Settlement,

Order settlement result shows details for the settlement with sender and receiver details and accounting document details,

Screen Shot for Settlement Receiver and Senders,

Accounting Document for Price Difference with settlement generated by system, Document posted with line item for each variance category.

Screenshot for Settlement Generated Accounting for Price Difference with Split, 


In the above example, System has distributed total price variance in two categories as calculated in variance calculation to Resource-Usage Variance and Output Price Variance.

Please let me know if anything missed in this.



Amol Rugge

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      Author's profile photo Upendar Singh .
      Upendar Singh .

      Good document.

      Author's profile photo Abdullah Galal
      Abdullah Galal

      Great document, thank you for sharing the knowledge

      Author's profile photo Maria Christlmeier
      Maria Christlmeier

      Thanks for this great document.

      I am missing settings in this customizing point tho!

      1. For to differentiate between the origin cost centers (we have different origin cost centers for the same variance category which lead to different value fields)
      2. To differentiate the default account for different valuation classes! Right now we can only set one default account for all valuation classes
      Author's profile photo Noam Diskin
      Noam Diskin

      You can further more split by Var' Cat and Input Cost Element.

      Meaning you can split every variance category by the Origin of costs (Consumption CE) on the PP Order.

      Example -

      you can split the PRIV by using the "from Cost Element" "Raw Materials Consumption" to variance account #1 "RAW MAT PRIV" ,

      And the same PRIV by using "From Cost Element" "Labor Activity Allocation" to variannce account #2 "LABOR AT PRIV"


      Author's profile photo dhaval GALA
      dhaval GALA

      Thanks . Very useful.Thanks for sharing

      Author's profile photo Helen Cagney
      Helen Cagney

      Thanks very much Amol Rugge for sharing your knowledge in this area. Can you please clarify the OBYC settings? Why is GL 52070000 in OBYC and how does that link to GLs 52071000 to 52079000?.

      Author's profile photo Sanjai Babu Kopuri
      Sanjai Babu Kopuri

      Thanks for this detailed document. Really useful

      Author's profile photo Soporte Stratesys
      Soporte Stratesys

      Hi! Thamks for this useful topic, what happens if in PRD/PRF i use different accounts for valuation class of material and i want to split in different accounts according if the material is HAL or FERT? Thanks in advanced!