Predictive Accounting in SAP S/4HANA 1809: A foundation for Intelligent forward-looking enterprise
The next step of continuous accounting is predictive accounting, and it makes sense to see through the future to plan the business operations and make strategies. E.g. how much revenue organization will make based on incoming sales order data even if no goods receipt or invoice is booked.
SAP S/4HANA 1809 has introduced predictive accounting for incoming sales orders and in this blog, I will explain how it works, what reporting capabilities are available and how to troubleshoot issues.
Scope item 2FD (Accounting for Incoming Sales Orders) covers the predictive accounting for incoming sales orders covering 36 countries.
(B) Customization Setup:
The setup to activate predictive accounting is quite simple and straight forward. It involves below steps:
1. Define Settings for Ledgers and Currency Types
Path: SPRO -> Financial Accounting ® Financial Accounting Global Settings® Ledgers® Ledger® Define Settings for Ledgers and Currency Types
Transaction Code: FINSC_LEDGER
Here a new ledger is to be created as extension ledger with type as “Prediction and Commitment” type. This type is newly introduced in version 1809. The base ledger for this should be leading ledger, so that the report can contain the actual data coming from leading ledger and predictive data from this extension ledger. No manual posting should be allowed to keep a system control on this prediction ledger from audit perspective and to avoid conflict with SAP automated process for sales order handling:
And this ledger should be extended to the relevant company codes:
And accounting principal assigned to this extension should be same as leading ledger, as predictive accounting is just an extension of your main reporting with forward-looking data:
2. Define Ledger Group
Path: SPRO -> Financial Accounting ® Financial Accounting Global Settings® Ledgers® Ledger® Define Ledger Group
Transaction Code: S_AL0_19000001
Here you create a new ledger group which contains only above special extension ledger created for predictive accounting:
3. Map the predictive ledger to the control settings:
Transaction Code: SM30 (Table FINSV_PRED_RLDNR)
Here this dedicated extension ledger for predictive accounting should be maintained, so that SAP know which one is to be used for posting of incoming sales orders:
4. Activate Predictive Accounting for Incoming Sales Orders
Path: SPRO -> Controlling ® Profitability Analysis ® Flows of Actual Values ® Transfer of Incoming Sales Orders ® Activate Predictive Accounting for Incoming Sales Orders
Transaction Code: FINS_PRED_INC_SO_ACT
For the controlling area, activate the incoming sales order with indicator “Active with date of entry”:
5. Maintain Billing Types for Predictive Accounting
Transaction Code: SM30 (Table FINSV_PRED_FKART)
Here, all the billing types which you want to get considered by predictive accounting must be maintained, e.g.:
6. Maintain SD item categories for Predictive Accounting
Transaction Code: SM30 (Table FINSV_PRED_FKREL)
Here, all the SD item categories which you want to get considered by predictive accounting must be maintained, e.g.:
7. Other sanity checks:
The above configurations are specific to predictive accounting, however other normal settings which are otherwise needed for actual PGI/Billing postings should also exist, e.g. activation of ABCOPA for controlling area, revenue account determination, posting period open etc. In nutshell if the actual posting can be done for PGI/Billing, then predictive accounting should also happen after above customization settings.
(C) Process Flow:
No new process for making predictive accounting postings. The normal sales order of sales order type configured in FINSV_PRED_FKART and having item category in line item as configured in FINSV_PRED_FKREL should post to predictive ledger as soon as sales order is saved.
E.g. below sales order created, where no PGI/Billing yet posted:
SAP has posted to predictive ledger (0E) for PGI and Billing Simulation as shown below in table ACDOCA:
Any change in sales order impacting the PGI/Invoice simulation, will also make the adjustment postings in prediction ledger.
(D) Reporting and Analytics for Predictive Accounting:
SAP has provided out of the box fiori apps to see the impact of predictive accounting on gross margin etc. See below fiori apps in details:
Sales Accounting Overview (Fiori ID F3228)
Here you can see that data from leading ledger and prediction ledger can be combined to see the incoming sales order impact even if there is no actual PGI/Billing:
Incoming Sales Orders – Predictive Accounting (Fiori ID F2964)
This report shows the incoming sales order details with postings for prediction ledger:
Gross Margin – Presumed/Actual (Fiori ID F3417)
This fiori application show the prediction postings with actual postings allows users to analyze the expected results at period/quarter end:
SAP use the AIF framework for controlling the posting flow for predictive accounting, and thus the you will be able to see the issues in the sales order replication in the transaction code /AIF/IFMON – Interface Monitor, e.g.:
Before you use the AIF monitor, make sure that you have assigned the namespace /FINPR in transaction code /AIF/MYRECIPIENTS – Recipients of Current User (Or admin can maintain for other users using transaction code /AIF/RECIPIENTS):
(Note: The fiori application “Message Dashboard – SAP AIF” can also be used for error monitoring as shown below:
- For 3rd party direct shipment and intercompany sales within selling company, predicted costs will not be calculated correctly because there is no simulation of goods issues:
- Predictive accounting only processes SD document categories C (Order), H (Return), I (Order Without Charge), K (Credit Memo Request), L (Debit Memo Request)
- If the document split is active, offsetting entries are not reduced.
- Predictive accounting does not simulate deliveries. Within customer invoice simulation, the system always assumes order-related billing.
- Customer project management and project bases services are not processed by predictive accounting.
Going through this predictive functionality, the real use cases for extension ledger are now unearthing, enabling more predictive/ simulation capabilities for intelligent enterprise without impacting the normal set of books represented in leading and non-leading ledgers. Time to get this included in project scope/ plan!
I followed your step-by-step approach in configuring the feature.
ACDOCA gets orders as and when created. However, I am not able to get data flowing to any of the 3 apps ! I tried with various filter criteria/selection.
Did you face any such trouble?
Did you apply SAP notes?
Did you use semantic tags while using the apps?
Would be great to know.
We recently upgraded our system for the version 1809 but the new Ledger is not available is the customizing. How to get it?
New Ledger does not exists in SAP S/4HANA, only Universal Ledger. You need to do the Finance Conversion/migration process. Have you finished this migration?
Yes we are running on the Universal Ledger.
My 1st question is where to activate 2FD (Accounting for Incoming Sales Orders). Is this the CO setting under: COPY -> Flows of Actual Values -> Transfer of Incoming Sales Orders?
The other question is how do I get the ledger 0E available in the table FINSC_LEDGER (Step 1 in
this configuration document). Currently I only have available 0L; L1 and T1. How to create the Ledger for predictive accounting?
Thanks for the support.
In S4H 1809 system, I did configuration as mentioned by you. Rows are created in ACDOCA table with ledger OE However no COPA document is posted. We are using Acc Based COPA. How can we see Predictive accounting entries in COPA ? In COPA configuration for "Transfer of incoming SO" - "Activate Predictive accounting for Incoming SO", we have taken option 1 Active with date of entry.
Update for S/4Hana 1909:
For the trouble shooting described in section (E) a new Fiori app was introduced. Please check the blog for more details: https://blogs.sap.com/2020/04/16/predictive-accounting-in-sap-s-4hana-1909-new-fiori-app-to-help-with-troubleshooting/
We are trying the same in predictive accounting for version 1909 for Contracts but the ACDOCA table is not getting updated. We have added an implicit enhancement to the class CL*SERVICES to add the VBTYP = 'G' as well to the list but no avail.
Could you please tell me at what point it is getting updated to the ACDOCA table.
Thanks for the wonderful post.
I start using the extension Ledger functionality and the posting per extension ledger not update the BSEG and as a result fbl3n and fbl3h.
Is this a standard functionality ?
Thanks in advance