Universal Allocation in SAP S/4HANA 2020
(Created as of release SAP S/4HANA 2020)
This blog post provides you enhancement information on Universal Allocation based on SAP S/4HANA 2020 on-premise. If you interested in Universal Allocation in SAP S/4HANA 1909 and 2021, please see SAP blog post (1909) and SAP blog post (2021). Now let’s focus on the harmonization of allocation functionality within SAP S/4HANA on-premise and you will see how Universal Allocation impacting the area of Financial accounting and Management accounting.
From a planning and budgeting perspective, a first step towards a single allocation model and execution framework was launched as Universal Allocation with SAP S/4HANA 1809 on-premise focusing on Cost center planning. Universal Allocation is new allocation functionality and plan data is stored in ACDOCP table.
With SAP S/4HANA 1909 on-premise, Universal Allocation is enhanced. It is not only used to cover the Actual overhead allocations in addition to the Plan allocations use case that was already delivered with SAP S/4HANA 1809 on-premise. The same Universal allocation is also the basis for molding and executing Top-down distribution of Margin analysis with SAP S/4HANA 1909 FPS01.
With SAP S/4HANA 2020 on-premise, existing Fiori apps are enhanced with new features and new Fiori app “Allocation Flow” is released.
- Universal Allocation does not cover all of the use cases mentioned in the “Vision” slides (“Our vision of Universal Allocation” and “Process harmonization driven by the Universal Journal”).
- There is no new feature on Universal Allocation with SAP S/4HANA 2020 FPS01 and FPS02.
- No future additions on Universal Allocation will be ported down to SAP S/4HANA 2020 on-premise.
Before going into the details, let’s have a look at motivation of Universal Allocation.
As you can see above slide, companies struggle to oversee their complex allocation process and have difficulties to analyze the result. It’s challenging to get a full traceability and clear understanding on how specific costs are allocated through their specific area of responsibility. As a result, there’s a necessity for state-of-the-art visualization for both the allocation process as well as the results after the execution. In addition to the overall need for a process transparency and results traceability, today’s companies need the ability to simulate how would the results look like by changing allocation rules on their financial data.
As you can see above slide regarding “Our Vision of Universal Allocation”, the overall aim is to simplify Allocations by combining various capabilities under one umbrella providing a single architecture for financial and managerial Allocations, like Cost center allocation, Profit center allocation, Top-down distribution and so on. A combined approach for actual and plan including simulation capabilities and predictive data as well. Executing this commonly structured Universal Allocation is to include all required reporting currencies providing full traceability of the entire value flow.
As you see right-hand side, Blue parts are in the scope of Universal Allocation (Yellow parts are out of scope). An important note to make is that Universal Allocation is not initially designed for activity allocations nor different types of settlements like for IO and WBS elements.
On the left-hand side, there are many transaction codes for different types of Allocations in SAP ECC. This caused the complexity of Allocation functionality. When we look at Vision of Universal Allocation, on the right-hand side we expect to see 10 Fiori apps to cover transaction codes in SAP ECC.
As of SAP S/4HANA 2020 FPS00, 4 Fiori apps are available.
- Manage Allocation
- Run Allocation
- Allocation Results
- Allocation Flow (New with SAP S/4HANA 2020 FPS00)
Additional applications already identified for future development:
- Allocation Changes*
- Manage Allocation Tags*
- Manage Run Groups*
(* Please note: we cannot mention exact release date for any of above.)
As you can see the above slide, it summarized Current Scope of Universal allocation in SAP S/4HANA 2020.
Allocation contexts & types available
- Allocation Contexts
- Cost Center Allocation
- Profit Center Allocation
- Margin Analysis – new context enabled with SAP S/4HANA 1909 FPS01
- Allocation Types
- Overhead Allocation
- Top Down Distribution (Margin Analysis) – new type enabled with SAP S/4HANA 1909 FPS01
Cost Center & Profit Center allocation is enabled for both Actual and Plan data allocation.
Margin Analysis is currently available for Top Down Distribution of Actual data.
For details, please see SAP Help for SAP S/4HANA 2020:
Currently cycles are defined with respect to a ledger and single company code*. Cross-Company Allocations without mark-ups already planned for the next release in 2021. (* Please note: There is exception regarding Top Down Distribution cycles, where it is defined by Ledger and Controlling Area (since you can use multiple company codes in definition of the cycles).)
<Available Fiori Apps in SAP S/4HANA 2020 on-premise>
With SAP S/4HANA 2020 FPS00, existing Fiori apps are enhanced with new features and new Fiori app “Allocation Flow” is released. Useful Features of Fiori Apps are described in below.
Manage Allocations app:
- Single point for maintenance of allocation cycles and segments
- Initial screen provides list report of existing cycles for all authorized contexts (If user is authorized only for cost center allocation, other contexts are not available for user)
- Multiple types of allocation rules manageable on segment level
- Where used function available for multiple type of objects (Cost Centers, Profit Centers, Statistical Key Figures)
Run Allocations app:
- Single point for triggering allocation run
- User can define Run worklist containing standalone cycles or cycle groups
- Cycle groups can be defined in Manage Global Hierarchies Fiori Application
- Order of cycles in worklist defines order of processing
- In run dialogue for actuals data user can define journal entry type for posting data
Allocation Results app:
- Provides analysis over the completed Allocation Runs/Test Runs
- 3 user views:
- By Run – list of completed run jobs and statuses, so as drill down to detailed run report
- By Cycle – view of cycles run statuses for selected fiscal periods
- Run Report – Run report provides details of sender, receivers journal entries and messages. Run report contains also new Network Graph control for visualization of allocation interactions between senders (on the left side) and receivers (on the right side), with filtering option on both sides of relation
Allocation Flow app: (New Fiori app released with S/4HANA 2020 FPS00)
- Generic analytical app for displaying interaction between multiple object types in allocation process
- App provide multiple perspectives (view types) on data
- Key elements are Network graph control & T-Account control
- Following view types available:
- Cost Center
- Profit Center
- Direct Activity Allocation
- Fund & Grant (Public Sector only)
The below is additional information for new features.
Manage Allocations – Excel Upload / Download function
- For definition of cycles / segments
- Enables mass change functionality
- Uploaded data adjustment possible
- Smart validation check of data
- Support of Cost Center/Profit Center contexts
- Suitable for adaption of data or build new cycles/segments form scratch
- Upload of value split in tabs sender details (Fixed rates or Fixed values) and receiver basis (Fixed percentage / Fixed portions) not yet supported with tool. User can use excel upload in each segment but not for multiple cycles at once.
Allocation Results – Network Graph enhancements
- Top-Down distribution now enabled in Network Graph view
- Dynamic grouping enabled – user can define 2 level grouping on sender & receiver
- Grouping pre-filters only objects relevant for run result
- Enhanced details provided on connectors
- Enabled Legend in network graph – provides fast info on applied grouping and filters
Allocation Results – Improved user experience
- User variants available in run result report
- Display senders – receiver connection
- Display reference data for Top-Down distribution result
- Navigation button for jump from cycle to run result report
Cross Component Functionality so called Situation Handling is available in Universal allocation from SAP S/4HANA 1909 on-premise. As of now, Situation Framework notifies user if error/warning occurs. There is no additional feature for Universal Allocation with SAP S/4HANA 2020 but more enhancements are planned with future release.
For details, please see SAP Help for SAP S/4HANA 2020:
- Situation Handling
- Situation Handling Videos -> Finance -> “Errors and Warnings in Allocation Runs”
- Situation Template: Errors and Warnings in Allocation Runs
SAP Help for SAP S/4HANA 2020:
SAP Fiori Apps:
- Manage Allocations (App ID: F3338)
- Run Allocations (App ID: F3548)
- Allocation Results (App ID: F4363)
- Allocation Flow (App ID: F4022)
SAP Best Practices for SAP S/4HANA (on premise):
SAP Notes (relevant for SAP S/4HANA 2020):
- 2946764 – F3338: WBS element conversion before save
- 2965103 – Allocation – Generated value helps – field order and visibility
- 2969539 – F3338: Missing Value Help for WBS Element
- 3014907 – Profit Center Value Help does not show all value for Top Down Distribution cycles
- 3015829 – F3338: Missing Value Helps for fields in segment
- 3042152 – Manage Allocations: Cycle cannot be saved with Cost Center in Segment
- 3044509 – Manage Allocations: User cannot save a TDD cycle
- 3044993 – Manage Allocations: Duplicated error messages
- 3011513 – [F3548] Run Allocations – authorization for plan posting without controlling area
- 2954522 – [F4363] Allocation Results – reversal browser timeout
- 2987066 – [F4363] Allocation Results – Partial reversal and run dump corrections
- 3005920 – [F4363] Allocation Results – COPA fields are not visible
- 3016984 – Allocation Results – No data error on run detail screen
- 3022321 – Allocation Results: Run/Reversal process timeout
- 3037393 – Allocation Results – archiving date reference fix
- 2988789 – [F4022] Allocation Flow – Taccount view with wrong debit/credit amounts
Universal allocation is under development and currently does not support:
- Cumulative Cycles
- Iterative Cycles
- Allocation Structure
- Custom fields are not yet fully supported
- Cycles are defined with respect to ledger and single company code (As mentioned above, Top Down Distribution is exception, since instead of company code, there is controlling area as part of cycle definition.)
- Cross Company Allocations
Finally, I would like to thank experts at SAP for their support.
Brought to you by the S/4HANA RIG
Many thanks for this nice post.
We are implementing universal allocation in S4 OP2020 release and we have noticed that assessment from cost centre to CO-PA is not yet in the scope. We have been informed that this will be delivered in OP2021.
My question is about the limitation "Custom fields are not yet fully supported" does it mean that custom CO-PA fields will not be available yet in the universal allocation?
The Cost Center Allocation to COPA is planned to deliver with S/4HANA 2021 OP*.
It will be possible to allocate costs from a cost centers to most of the standard COPA fields + custom profitability characteristics.
*Please keep in mind that this is not a commitment, but just our current plans. Please understand that we cannot comment on the details for future functions at this stage.
I can confirm, that CO-PA as a receiver for cost center allocations has been finally delivered in OP 2021. This puts KEU5, etc. finally out 0f business 😉
want to see this as some customers are asking for this cost center to COPA in the universal allocation
We are performing some testings to check the new COPA assesment allocation in 2021 OP and we have noticed that our custom COPA fields (defined with the classic COPA extensions KEA0/KEA5) are not available as receivers. By checking the FAQ OSS note 2453614, we have found this statement
Are we missing any customizing/program to run or is it a missing functionality and we need to raise an incident about it? Or do we need to proceed with CDS views extension?
Dear Daigo Imai
Thank you for your post: very useful. Do you have any information, when SAP will include the functionality of iterative cycles?
Thank you in advance for your feedback.
Iterative cycles is planned to deliver with S/4HANA 2021 OP*.
*Please keep in mind that this is not a commitment, but just our current plans.
Please understand that we will not comment on future functions further.
Iterative cycles have also been delivered in OP 2021 today.
many thanks, this is the blog article every CO consultant was looking for 😉
(Including information given in the comments section).
Nevertheless, I noticed, that in SAP S/4HANA 2020 FPS01, the app "Manage Allocations" is a bit unstable, which I have not seen for other Fiori apps. When creating a new cycle or a new segment for a given cycle,
after saving and navigating back to that cycle/segment, the application says, that it can not find the cycle/segment. But it is offered for navigation on the left hand side and just the details page will not show up, rather the error message will be displayed.
Is that a known problem?
I would recommend you to create a customer incident for this issue.
SAP Product support will investigate it further.
I found in the mean time, that some SAP-Notes have been issued, that address these problems. Curiously they were only fixed after the release of FPS1.
Anyone else with this problem, please check SAP-Note 3047865
Manage Allocations - Cycle detail is not opened on the first time.
This blog is very helpful. Thank you very much for your information!
May I ask is there any SAP books to be published in the near future about the universal allocation?
Thanks for the wonderful article. I was trying to create an Assessment cycle for Cost Center and wanted to push to COPA, But could only find a CC and WBS as a receiver? Did I understand something wrong Here.?
Is Joint venture accounting allocation (tcode GJG5, GJF5) covered in Universal allocation ?
Not yet to my knowledge. You still need to use JVA specific t-codes, but it is on a pipeline (2022). I guess you can reach out to the product owner.
We I was trying to create an universal assestment for profit center in S4 2021 OP and the Functional Area does not appear as a sender filter like it is in transaction 3KE5. Is this an error or the Functional Area as sender filter is not covered in the universal assestment
Do you know if S/4 on premise universal allocations (in this case profit centre distributions) on balance sheet accounts (not P/L) support allocations on period 000, opening balance, so can they run inception to date? This used to be possible in ECC.
I want to use Manage Allocation to allocate Cost center Budgeting amount but it seems Manage Allocation does not support that. If try to run Manage Alloc cycle with Plan category BUDGET02, error is displayed "The plan category BUDGET02 is used for Cost Center Budget which is not allowed."
At moment, we only have traditional Cost center planning available. So can we not use Manage allocation in this scenario ?