Predictive Accounting in Sales processes
Predictive accounting enables us to look at and analyze data using a forecast of future results based on the most up-to-date data. It is used to create predictive journal entries based on the documents created for the following processes.
- Predictive accounting for Sales processes, using sales orders as source document.
The Predictive Journal Entry – Manage (Synchronous) web service is also available for using sales orders from an external system as source documents.
- Predictive accounting for Travel and Expense Management, using travel requests as source document
Refer Note 2947863 for restrictions in Predictive accounting.
This blog post explains Predictive Accounting for Sales Processes to predict future revenue and cost based on the actual data.
Predictive Accounting in Sales Processes:
Predictive accounting predicts future revenue and cost on the sales processes in the universal journal when a sales order is created before any accounting documents posted from the subsequent processes.
Predictive journal entries are posted in an extension ledger which facilitates to see the possible impact on the margin of future good issues and billing.
The configurations required for predictive accounting for sales processes is explained later in this blog post.
SAP has delivered multiple analytical apps for predictive accounting analysis. These Analytical apps are available to analyze and evaluate the presumed and actual margins resulting from incoming sales orders. It uses predictive postings from the journal entry database.
In this blog post, the following apps are used for explaining predictive accounting postings:
- Gross Margin – Presumed/Actual
- Incoming Sales Orders – Predictive Accounting
- Display Line-Item Margin Analysis
Predictive Accounting postings at the time of sales order creation.
Sales Order # 11 is taken for illustrating predictive accounting postings in the sales processes. Initially sales order is updated with 16k revenue and material cost is 10k. Predictive accounting postings are created after the sales order is saved without any errors. The posting is created only at the extension ledger ‘ZR’. No postings made in standard ledger.
Analytical App ‘Incoming Sales Orders – Predictive Accounting’ provides details at journal entries level and graphical representation.
App ‘Gross Margin – Presumed/Actual’ provides summarized details of presumed revenue, presumed cost and presumed margin.
Predictive Accounting postings at the time of sales order changes.
The pricing in sales order 11 is reduced to 15.5k and corresponding predictive accounting documents are created in the extension ledger.
The revenue adjustment is updated in the App ‘Gross Margin – Presumed/Actual’.
The line item details for predictive accounting journal entries after revenue adjustments.
Predictive Accounting postings at the time of goods issue.
Partial goods are issued for Sales Order 11 & actual cost is posted in the standard ledger as well as in the predictive accounting – extension ledger.
Predictive Accounting postings at the time of billing.
Partial billing is created for sales order 11 & actual revenue is posted in the standard ledger as well as in the predictive accounting – extension ledger.
Actual Revenue, Actual Cost and margin are updated in the app ‘Gross Margin – Presumed/Actual’.
App ‘Display Line items – Margin Analysis’ for journal entries details in the extension ledger ZR for predictive accounting.
Setting Up Predictive Accounting in Sales Processes:
Standard configuration required for creating sales order, good issues, billing and posting to accounting to be set up before setting up the below customization required for Predictive accounting.
Create and Assign an Extension Ledger
Extension Ledger ZR is created to capture all predictive journal entries with underlying ledger as ‘0L’. The newly created extension ledger is assigned to the relevant company codes.
The 3 key customization is required for predictive accounting:
- Activating Predictive accounting at controlling area level and selecting relevant processes. Also make sure that relevant company codes are assigned to the extension ledger mentioned in the previous step.
- Add extension ledger created for predictive accounting in the step ‘Check Prediction Ledger’
- Maintain Sales Document categories for Predictive accounting.
This blog post provides predictive accounting in sales processes features with illustration. Please share your feedback in the comment section.