In my previous post about Finance in S/4HANA 1809 I highlighted the innovations in Account Based Profitability analysis. One of the innovations is the enhancements in splitting the cost of goods sold. We will have a more detailed look at this new functionality in this blogpost.
What’s new in 1809?
In the previous release 1709 the COGS split functionality was already enhanced and new supported processes were added. In release 1809 the functionality for splitting based on Actual Costing is added.
Splitting based on Actual Costing
The splitting functionality based on actual costing is enabled in 1809. Now you can split the revaluation of COGS as well. Doing this you have 2 options. You can post the revaluated amounts to the same accounts under the same cost component structure. Or you can post the revaluated amounts to a specific cost component structure. The configuration is changed slightly to facilitate this. You can see the new checkbox in the print screen below.
Don’t forget to add your revaluation account in the “Source Account” sections of the customizing. This is the account configured in T030 account key COC.
Perform the Split based on standard cost estimate
The standard cost estimate of the material used for preliminary costing during the period:
Sales order and delivery process
The splitting of the Cost of Goods sold during goods issue is a functionality which already available. You will see the enhanced functionality with splitting based on actual costing following the below example.
Posted accounting document during Goods Issue based on initial costing run:
The balances of the accounts in the financial statement App:
Alternatively, the amounts can be seen in the market segment analytics report as well:
Actual Costing and splitting the revaluation amount
In this example I have used a material valuated against standard price (S) with price determination Single Level/Multi Level (3). At month end I perform Actual Costing in CKMCLP:
There is a price difference of 2.45 USD:
As you can see the price difference of USD 2.45 is splitting based on the same cost component as the preliminary cost price.
The effect is visible in the Financial Statement app as well:
The benefits of having all dimensions on account level in ACDOCA is huge and the cons/disadvantages are disappearing with each new release. It is exiting to see that Account Based COPA is closing the gap.