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Author's profile photo Deepa Menon

SAP S/4HANA Cloud : Customer Use case on Automatic Account Determination and Split Valuation

PURPOSE OF THE BLOG: This Blog helps you to understand the functionality of Automatic Account Determination and Split Valuation in SAP S/4HANA Cloud. This is a Customer use case. Customer here is a S/4HANA Cloud Customer , who wanted to post material cost of free of charge delivery goods not to COGS but to expense accounts.

Customer Issue :

Problem Statement : Customer wants to post material cost of free of charge delivery goods to expense accounts. They want to take a separate cost-processing account depending on the Sale order type of ‘Free Of Charge’ order. They were trying to add a new Order Type as Z* or want to assign accounts. But in S/4HANA Cloud, it is currently not possible to create a new Order type. SSCUI is missing for Create Order Type . But the requirement from Customer is to post in a different account which can be achieved by the below solution.

Best Practice Scope Item for Free of Charge Delivery of Goods : You could find the standard test script of Free of Charge process at the link : BDA

Proposed solution / deviation from standard script:

The requirement here is to change the G/L Account from COGS to Revenue Account . There is a possibility of changing the G/L account in the Automatic Account Determination for inventory posting against GBB/VAX accounting key. Split valuation also needs to be enabled so that the same material can have separate stock for commercial and sample purpose and can be posted in different accounts.

Let us see the steps involved to realize the same in the system.

Steps :

1. Create a New Valuation Class

1.1 Go to Configure Your Solution and Search for Valuation Class

1.2 Pick the entry for the Product

1.3 Select Valuation Classes. Click on Configure

1.4 Maintain a new Entry ( Say : Z792 for free goods)

2. Automatic Account Determination

2.1 Go to Configure Your Solution and Search for ‘Account Determination’

2.2 Pick the entry for the General Ledger

2.3 Select Automatic Account Determination and click on Configure

2.4 Provide the below entries:

Area : Sourcing and Procurement

Transaction Key : GBB

Chart of Accounts : YCOA

2.5 In the Step 3 maintain the relevant entries for the new Valuation class( Like : GBB-VBR , VAX , BSX, ZOB..

Here Customer can provide the required GL account for Free of Goods for the new valuation class against GBB/VAX accounting key

3. Enable Split Valuation for the Valuation Area/Plant

IMP: Please be informed that this setting cannot be reverted for the Valuation Area.

4. Create Material

4.1 Create material master with only Valuation Category (Accounting 1) as ‘X’.

4.2 Using Create Material App- Create the same material in the previous step with view Accounting 1 with Valuation Type (Say Commercial and then Sample) and provide

different valuation class for each material with valuation type.(For sample -provide the new Valuation Class – Z972)

5. Complete the process Flow with the below steps:

5.1 Create a stock for both valuation types

5.2 Create Sales Order

5.3 Create Delivery

6. Check the Account determined in the Accounting Document

You could observe that the account provided for the VAX accounting key for the new valuation class is determined in the accounting document created after posting the goods issue.

Conclusion :

You could refer this blog if you are looking for advanced account determination or split valuation. For more details on the functionality please refer the below links.

https://help.sap.com/viewer/af9ef57f504840d2b81be8667206d485/1809.001/en-US/fc5eb6531de6b64ce10000000a174cb4.html

https://help.sap.com/viewer/651d8af3ea974ad1a4d74449122c620e/1809.000/en-US/c2c24a5718620f4be10000000a4450e5.html

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      3 Comments
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      Author's profile photo Eric Yu
      Eric Yu

      Thanks for sharing this.

      Author's profile photo Vijayendra Tiwari
      Vijayendra Tiwari

      Is the above information valid for cloud? As I can see configuration OMWC is not available in cloud as currently it is only applicable for valuation category X as of now. via SSCUI 101717.

      Even the below mentioned article links are for S/4 OP edition, nothing similar exist for the cloud.

      Author's profile photo Deepa Menon
      Deepa Menon
      Blog Post Author

      Hi Vijayendra,

      The above solution is for S/4 Hana Cloud.

      Please search for split valuation under 'Configure your Solution'. You could find the entry for Material Valuation under the Application Area : Logistics and Sub-application Area : Inventory.

      Once you select the same, you could find the option for activating the Split Valuation for Valuation Area. As you see in the screen shot at Step 3, it is available only for Valuation Category X. We have used this category in Material Master to achieve the split valuation. And the Valuation type that I have mentioned in Step 4.2 is not a key but a free text to differentiate the stock. This was the requirement from the Customer.

      Please feel free to reach out if you need any further information.

      Thanks and regards,

      Deepa