Central Asset Settlement in SAP Central Finance
This is an integrated scenario where Projects/WBS are created/changed in source system and they get replicated to SAP S/4HANA via SAP Central Finance interface.
Till 2020 main release it was possible to replicate the projects and use them for reporting purposes without having the ability to edit or changing or settle the projects.
With SAP S/4HANA 2020 FPS1 the functionality is released where you can settle the replicated WBS to AUC in SAP Central Finance system. Also it seems like a foundation to the Full fledged SAP Central Finance – Central Asset Management which now might be planned to come in SAP S/4HANA 2021 Release.
To make it clear please see below images. In Image 1 you can see that settlement of WBS was possible only for those WBS which are originated in SAP S/4HANA but with 2020 FPS1 it is possible to settle even the replicated WBS being originated in Source system
- Create/Change WBS in Source system
- Allocate cost to WBS as part of project cost in source system. Cost can be coming from manual JV, PO or any other expenses
- Replication to SAP Central Finance
- Project Master Data
- FI Documents
- Cost on WBS
Please note below:
- Project Master Data is replicated using Application Link Enabling (ALE) and the IDOCS contain the projects master data
- FI documents are replicated via SLT using standard Central Finance interface and get posted to ACDOCA table
- When replication of WBS happens the system creates the AUC (Asset Under Construction) automatically
- Further settlement of costs can happen periodically from the replicated WBS elements to the corresponding assets under construction
- Finally you can do full settlement of AuC to Fixed Assets
If changes are needed in projects/WBS then that can be done on the original source system and these changes can be replicated using SAP Central Finance scenarios.
- Automatic creation of assets under construction during project replication
- Enabling editing of settlement rule for asset and profitability segment in a replicated WBS element
- Enabling settlement of WBS to AuC and AuC to Final asset in the Central Finance system
- Status change check is allowed when closing a project or WBS element in the source system.
- Status change check is allowed when setting the deletion flag status for a project or WBS element in a source system.
- Use Report FINS_CFIN_PS_CHECK for checking the configuration before the replication starts
Key Considerations before you activate this:
- Identify company codes for this scenario carefully
- Projects Profile mappings from source system to target system is needed
- It is recommended to use the new project profiles
- Investment profiles mapping is also needed
- It is recommended to set up projects within same company codes as due to non existence on asset accounting the cross company code scenario may not work
- If source system is on cloud this scenario will not work
- No write back capabilities are available from target to source unless you build custom solution
- Only actuals data is replicated
- Network replication is not supported
- If projects is released from source and replicated to target system then WBS element can not be deleted and projects IDs can not be changed in either system – source or target
- Settlement rule is supported only Fixed Assets and Profitability Segments
- Closing status of Project can only be done in target system first
- Deletion flag can be set in target system
- The investment profile can only be deleted in the source system as long as the asset under construction is not yet capitalised.
Lot of Configuration is involved in source system as well as target system to activate this scenario.
I will come back with another blog of configuration settings..
Lets see what SAP has for next release in this area…
Keep reading CFIN..