PREDICTIVE ACCOUNTING IN SAP S/4HANA 18.09 Part 1

SAP has introduced Predictive Accounting in S/4 HANA 18.09,

In this Blog i’ll cover the main configuration steps and dive into hands on process flow with detailed explanation of  predictives postings to the extension leder

As the prediction needs to be always up to date, I’ll demonstrate how predictives are automatically adjusted and updated when changes occurs on the original document used as basis for the prediction

The impact of actual document at the moment of good issue and customer invoice on predictive accounting will be detailed on an upcoming part2 of this blog

1 Customizing

1.1 Define Settings for Ledgers and Currency Types

Create Ledger ‘ZS’ as Extended ledger for prediction and commitments

Assign Company code ‘FR01’ to the ledger ‘ZS’

Assign Accounting principles to the corresponding Ledger

1.2 Define Predictive Ledger

In dedicated table FINSV_PRED_RLDNR we have to add entry for the ledger used for prediction

Use SM30 transaction to add the entry

1.3 Activate Predictive Accounting for Incoming Sales Orders

In this Customizing activity, you enable the creation of Predictive Accounting journal entries. This allows for management analyses based on accounting-specific characteristics, such as G/L accounts or posting periods.

The Predictive Accounting journal entries are based on simulated customer invoices for predefined sales scenarios.

For the corresponding controlling area, we activate the predictive Accounting for Incoming sales orders

Transaction code: FINS_PRED_INC_SO_ACT

1.4 Assign Billing Types for Predictive Accounting

In this step, we maintain the relevant billing types for predictive accounting

Use SM30 transaction to add relevant billing types to dedicated table FINSV_PRED_FKART

1.5 Maintain SD item categories for Predictive Accounting

In this step, we maintain the relevant items categories for predictive accounting

Use SM30 transaction to add relevant Items categories in dedicated table FINSV_PRED_FKREL

2 Business Process Flow

In the following, we’ll create process flow for predictive accounting for incoming sales order, we’ll check predictives postings for the planned values on the extension ledger and actual values on leading Ledger

We’ll see how the postings in both ledgers are synchrinized to reflect the predictive and the actual economic effects

2.1 Create Sales Order

Create sales order with sales item category in the scope of the defined customizing for predictive accounting

Sales Order pricing details

2.1.1 Predictive Postings

As explained before, as soon as the sales order in created, the predictive accounting simulates predictive Goods Issue, predictive COGS and predictive Customer Invoice and posted corresponding to extension ledger

We recognize 3 documents with 3 different Business transaction types, corresponding to simulated Good Issue, Simulated COGS and simulated Customer Invoice

2.1.1.1 Predictive Good Issue

2.1.1.2 Predictive COGS Splitting

2.1.1.3 Predictive Customer Invoice

2.1.2 Predictive KPI

In SAP S/4HANA 18.09, 2 apps are available for Predictive Accounting

Let’s check Gross Margin app (Presumed/Actual)

For demonstration purpose we restricted the section to our sales order

In real live, the app displays all Actual/Planned for the period range with graphical chart and items as the following

We can select from many types of available chart view

2.2 Change Sales Order

Predictions needs to be up to date, means any change in the sales order must be reflected in the predictive accounting,

The system resimulate the process steps and replace the predictive values, dates and characteristics

Lets see the impact of changing existing sales order

As described above our predicted customer invoice posting is the folowing:

Let’s change conditions for our order 8649975

PR00 price condition changed from 100 Euros to 120 Euros, now order amount is 2160 Euros

Lets see the impact on Sales Predictive Accounting

Now we have 2 additional new documents prosted to the extension ledger

• The First additional one is reversion document of the outdated original one, –> Both documents are balancing zero
• The Second additional document is the new created prediction document carrying all sales order data at last save, in our example the new price

Lets check again KPI in Gross Margin app

–> Prediction are resimulated and the app shows updated prediction based on current sales order values and characterestics

In upcoming part 2  of this Blog i’ll show the impact of posting Good Issue and Customer Invoice on the predictive accounting and we’ll see how to use FIORI Apps to monitor Planned and Actual data

Please feel free to comment

References:

https://www.sap.com/assetdetail/2018/08/383436e6-177d-0010-87a3-c30de2ffd8ff.html

https://blogs.sap.com/2018/10/16/predictive-accounting-in-sap-s4hana-1809-a-foundation-for-intelligent-forward-looking-enterprise/

https://blogs.sap.com/2019/05/13/predictive-accounting-for-incoming-sales-orders-in-s4hana/

Best regards

Ihsen ABROUG