Financial Planning with Universal Parallel Accounting in SAP S/4HANA 2022
How does Universal Parallel Accounting (aka UPA) impact Financial Planning in SAP S/4HANA?
With this blog post I will look at the UPA topic from the point of view of Financial Planning in SAP S/4HANA. I want to summarize my findings and what you need to know when you consider to activate the business function for Universal Parallel Accounting.
Last update 22.09.2023
As a product expert in the SAP S/4HANA Regional Implementation Group I am privileged to work with many customers on their journey to SAP S/4HANA. I often receive questions about the latest innovations in the Finance area in SAP S/4HANA. One of the latest great innovations in SAP S/4HANA is Universal Parallel Accounting and I receive questions like:
What changes with Universal Parallel Accounting in Financial Planning in SAP S/4HANA?
That is why the purpose of this blog post is to summarize the most important changes, limitations, and restrictions regarding Financial Planning in SAP S/4HANA that you should know when you activate UPA.
I will start with a short introduction into UPA. For a more detailed introduction to Universal Parallel Accounting and related topics I recommend the following blog series:
- Universal Parallel Accounting in SAP S/4HANA by Sarah Roessler
- Overhead Accounting by Janet Dorothy Salmon
- Asset Accounting by Astrid Hilgenberg
- Inventory Accounting by Janet Dorothy Salmon
- Event-Based Revenue Recognition by Volkmar Zahn and Gerold Wellenhofer
- Production Accounting by Shuge Guo
Introduction to Universal Parallel Accounting
Universal Parallel Accounting helps customers to fulfill their reporting requirements according to different GAAPs by using the full capabilities of the Universal Journal in SAP S/4HANA. UPA eliminates the restrictions that applied to asset accounting, controlling and the material ledger in the former solutions for parallel accounting in ECC and SAP S/4HANA. These main limitations (without UPA) were:
- limitation to three parallel currencies in asset accounting and material ledger,
- not fully integrated parallel value flow in all currencies and ledgers in management accounting and
- restrictions regarding fiscal year variants in asset accounting.
In SAP S/4HANA 2022 Universal Parallel Accounting closes these gaps and provides the following features and use cases:
- Parallel valuations with unconsolidated views to follow parallel accounting standards for group and local GAAP (including all subledgers for asset values, inventory valuation, overhead accounting, WIP, etc.).
- Parallel valuation for group valuation with consolidated views for steering purposes, where intercompany profits between trading partners are eliminated in real-time.
- Alternative fiscal year variants if a fiscal year for the local financial reporting is deviating from the fiscal year of the central reporting on group level.
- Multicurrency capabilities that support financial and management reporting in several currencies and additional currencies like functional currency.
So UPA addresses primarily the fully integrated parallel actual value flow across different accounting processes including product costing.
Details and further information about the scope of UPA you can find in SAP note: 3191636 – Universal Parallel Accounting (SAP S/4HANA 2022): Scope Information
But what is the impact on Financial Planning, the planning processes and on the value flow for plan data in SAP S/4HANA?
Let’s have a short recap of Financial Planning in SAP S/4HANA first.
Financial Planning in SAP Analytics Cloud
Overview of Integrated Financial Planning for SAP S/4HANA in SAC
SAP Analytics Cloud is the recommended financial planning solution for SAP S/4HANA Cloud and On Premise. The following graphic shows an overview of Integrated Financial Planning for SAP S/4HANA in SAP Analytics Cloud and how it is integrated in SAP S/4HANA.
The data structure in SAC is aligned with the data structure in SAP S/4HANA. Data can be exchanged bi-directionally. SAC can import master data (like GL accounts, company codes, cost centers,…) and transactional data (like actuals in table ACDOCA) from SAP S/4HANA. The results from planning in SAC can be exported to SAP S/4HANA into the new data structure. An import of plan data back from SAP S/4HANA into SAC is also supported.
In addition to the main planning table ACDOCP, tables FINSSKF for statistical key figures and ACCOSTRATE for prices (which will be used with universal parallel accounting) are supported as target or source of plan data in SAP S/4HANA.
Business Content Integrated Financial Planning for SAP S/4HANA
The Integrated Financial Planning solution is delivered in the content package “Integrated Financial Planning for SAP S/4HANA and S/4HANA Cloud” for SAP Analytics Cloud. It covers the complete area of financial planning. The delivered business content contains SAC models, dimensions, stories and data actions for five integrated planning areas:
- Operating expense planning
- Product cost planning
- Sales and profitability
- Capital expense planning
- Financial statement planning
The documentation and more detailed information about Integrated Financial Planning in SAP Analytics Cloud can be found here:
- Central Blog: Integrated Financial Planning – An Overview
- SAP Help S/4HANA: Financial Planning in SAP Analytics Cloud
- SAP note: 2977560 – Integrated Financial Planning for SAP S/4HANA with SAP Analytics Cloud
The Financial planning content package is also included in the SAP Best Practice for SAP S/4HANA in the new Process Navigator:
- Solution Process: Integrated Financial Planning (4RC)
Thus the delivered Business Content in SAC can be used similar like SAP Best Practices:
- just for exploration and basis for custom own content that can be build within the SAC modeling environment,
- adapted to customer requirements or
- used productively as-is.
Adaption of Content in SAP Analytics Cloud for UPA
The Financial Planning content within SAP Analytics Cloud can be used with or without universal parallel accounting in SAP S/4HANA – at least for exploration. If you want to do financial planning also for different accounting principles or parallel valuations, you would have to adapt the content and/or build custom own content. Adapting SAC content means to adapt or create following objects within the SAC modelling environment:
For more information about adapting the delivered business content please refer to SAP Help:
Parallel valuation in SAP Analytics Cloud Business Content
In SAP S/4HANA parallel valuations are assigned to a specific ledger through the whole integrated value flow with UPA. The delivered business content in SAC does not contain a ledger as dimension for parallel valuation. In SAC plan data is always assigned to a plan version instead. For demo purpose the delivered business content only contains one plan version. Thus for exploration or productive use you can maintain plan data only for one accounting principle or one valuation with the delivered business content.
One of the advantages of SAC is, that it offers a very high degree of flexibility. You can design and build whatever better meets your requirements. It is obvious, that not all planning scenarios can be covered by the sample business content that is delivered by SAP. If you need to plan also for another accounting principle, an easy solution would be to use the delivered plan version for one accounting principle (eg. IFRS) and copy it to a new plan version (e.g. for local GAAP). Then adapt the content like models, stories and data actions to your needs. When you export plan data you could map the plan version to the corresponding ledger in SAP S/4HANA.
If this quick workaround does not meet all of your requirements, you could also add the ledger as dimension and adapt the content or build your own content.
From SAC point of view there seems to be no big change on financial planning in SAC if UPA is active or not. The adaption of the business content for adding an additional accounting principle (or valuation) would also be possible and required without UPA active. Technically, the export interfaces to the new data structure are the same with or without UPA active. The provided export interfaces (OData Services) are documented in SAP Help: Exporting Data from SAP Analytics Cloud to SAP S/4HANA.
The major impact of UPA is on the planning processes in SAP S/4HANA (especially private cloud and OP). I will explain this change in the process integration between SAP Analytics Cloud and SAP S/4HANA.
Planning Processes in SAP S/4HANA
Let me first have a look on the planning processes in SAP S/4HANA. The graphic shows the main processes that are already integrated and based on the new planning tables in S/4HANA:
Without UPA active many processes in S/4HANA already use the new planning table ACDOCP like:
- Production Order Planning
- Service Order Planning
- Maintenance Order Planning
- Universal Allocation
- Embedded Analytics
Please Note: New Analytical Fiori Apps in embedded analytics display plan data from the new plan tables only (e.g. table ACDOCP). Plan data from classic planning tables that are maintained with classic planning transactions (KP06, KP26,…) are not displayed in the new Fiori Apps. As intermediate solution without UPA you could use transfer reports to copy plan data from classic tables to the new data structure (SAP Help S/4HANA -Transfer Data for Financial Planning).
- Network Costing (see What’s New in SAP S/4HANA 2022 Project Network Costing is Integrated with Financial Planning)
These processes described above also work with UPA in S/4HANA. Additionally, with UPA the following processes also use the new planning tables:
- Activity cost rates based on ACCOSTRATE
- Plan data in asset accounting in ACDOCP
These two innovations are only available with UPA. Tables ACCOSTRATE for activity cost rates and ACDOCP for plan data both contain the ledger information. Table ACDOCP contains all currency fields like table ACDOCA. The old classic planning transactions, e.g. in overhead accounting and margin analysis, do not contain the ledger and all currencies from ACDOCA. Consequently, these classic planning transactions are no longer available in connection with universal parallel accounting. Universal parallel accounting only supports the new planning data architecture that comes with ledger and all currencies in table ACDOCP similar like in ACDOCA. This impacts the features and functions in many areas in SAP S/4HANA. Let’s have a closer look into the affected areas.
FI-AA (Asset Accounting)
With UPA plan data in asset accounting like planned depreciation is directly stored in the planning table ACDOCP with a special planning category assigned to application type “Fixed Asset”:
With the planning horizon you can define the number of years for which planned values are updated and available in reporting for asset values. The planning horizon can be assigned to ledger for required company codes .
This makes the integration between asset accounting and primary cost planning much easier, because plan data of assets on cost centers is already available in the new planning table ACDOCP. With classic planning in ECC you could use the depreciation forecast (transaction AR13 or report RAKOPL02) to transfer planned depreciation from asset accounting to cost center accounting. You can find more information about this classic functionality and interface in SAP Help:
There is also a proposal for a solution that combines the Integrated Financial Planning content in SAC with the existing classic depreciation forecast in SAP S/4HANA, see more in this blog post:
- Planning Investment Projects and Depreciations with Integrated Financial Planning for SAP Analytics Cloud
With UPA this integrated cost planning (e.g with report RAKOPL02) is not supported. Instead planned depreciation can be written directly into table ACDOCP. From there planned depreciation can be transferred to SAP Analytics Cloud into the Operating Expense Planning Model (as cost center expenses or project expenses, depending on how depreciation is posted in controlling):
Another topic in asset accounting is interest calculation, which is not in scope of asset accounting with UPA. Therefore, planned interest calculation is also not in scope of UPA.
CO-OM (Overhead Cost Controlling)
Classic planning transactions (like KP06 for cost element planning or KP26 for activity cost rates) aren’t supported any longer with UPA. Instead, you can use SAP Analytics Cloud (SAC), or you can use following Fiori Apps to import plan data into ACDOCP and manage financial plan data in SAP S/4HANA:
- Import Financial Plan Data
- Copy Financial Plan Data
- Set Financial Plan Data to Zero
- Delete Financial Plan Data – with Timestamp
- Delete Financial Plan Data
- Display Financial Plan Data Jobs
- Import Statistical Key Figure Plan Data
With UPA ledger-specific activity cost rates can be maintained with App “Manage Cost Rates – Plan”:
The system uses the ledger-specific cost rates to calculate the amounts to be posted to the parallel ledgers. If no ledger-specific cost rates exist, the system will use the ledger-independent cost rate.
For details look into SAP Help: Fiori App Manage Cost Rates – Plan (F3162)
Plan price calculation (KSPI)
Classic plan price calculation (transaction KSPI) isn’t supported any longer with UPA. You can use SAP Analytics Cloud (SAC) for your planning activities instead or manually maintain cost rates with the above mentioned Fiori AppManage Cost Rates – Plan (F3162). Please note that the primary cost component split for activity cost rates is not available yet. For more information about Financial Planning in SAC see the Financial Planning section above. And also check the roadmap and What’s New for the coming releases.
Transfer Data for Financial Planning
The aim of the transfer programs is to facilitate the transition from financial planning with classic CO tables to the new financial planning performed with SAP Analytics Cloud. For more information see SAP Help: Transfer Data for Financial Planning
As classic planning transactions are not in scope of UPA, the transfer programs that enable a transfer between classic planning tables and the new planning tables are also not supported.
Classic budget management transactions (like KO22 for internal orders or CJ30 for projects) can still be used with UPA.
Budget data can also be stored in the new plan data table (ACDOCP) with a plan category that is assigned to usage for budgeting:
For budgeting you can therefore, similar like for planning, also use SAP Analytics Cloud (SAC) or the Fiori App Import Financial Plan Data (F1711).
Additionally, there is an app available to transfer between, supplement, and return cost center budgets:
More information about budgeting for cost centers see:
- SAP Help S/4HANA: Budgeting
For commitment management, only classic commitments for cost centers, projects and internal orders are supported with UPA. Thus for budget availability control please use the classic budgeting transactions for internal orders and projects and classic budget availability control.
Please note: The new budget availability control for cost centers does not work with classic commitments. You can track classic commitments on cost centers with app Commitments by Cost Center – Classic Commitment Management (Fiori App F4998).
If you are interested in new commitments management solution in SAP S/4HANA, you can find more information in SAP note 2778793.
Only universal allocation can be used with UPA. Classic allocations and distributions aren’t supported any longer (transactions KSV* and KSU* for actual/plan distributions and actual/plan assessments are blocked) with UPA.
Use new universal allocation apps, e.g.
More information about Universal Allocation is provided in this blog:
SAP Analytics Cloud also provides an allocation function for financial planning. You can find an example in the demo of the Integrated Financial Planning Content in SAC.
IM (Investment Management)
Classic planning transactions aren’t supported for Investment Management with UPA. Reporting on planning/budgeting for investment programs is also not supported.
PS (Project System)
Classic planning transactions like CJ40 for projects aren’t supported with UPA. See planning section above.
Classic budget management transactions (like CJ30), classic commitments and classic budget availability control are still supported.
CO-PA (Profitability Analysis)
Classic planning transactions, like transaction KEPM, aren’t supported any longer with UPA. You can use SAP Analytics Cloud (SAC) for your planning activities instead. Plan data is stored in table ACDOCP, which contains all CO-PA characteristics and customer fields from table ACDOCA.
If you upload plan data with Import Financial Plan Data App, CO-PA characteristics are automatically derived. For details which values are derived please see SAP Help:
CO-PC-PCP (Product Cost Planning)
Cost estimates can be created ledger specific. The ledger has been added to the costing type which is assigned to a costing variant (OKKN). Material cost estimates are still calculated and stored in the controlling area currency and object currency. When releasing the cost estimate, they are translated into additional currencies.
Easy Cost Planning (CKCM, CKECP), Cost Estimates without Quantity Structure (CKUC, KKPAN, KKPBN, KKPCN, CK33) and Mixed Costing (CK94,…) are not supported with UPA.
Please refer to the following blog post for more information about Production Accounting for UPA:
Important Notes and Roadmap
Please note that with SAP S/4HANA 2022 the first version of UPA has been delivered to pilot customers only. Current functionalities and restrictions can be subject to change and may be changed by SAP at any time for any reason without notice. I would therefore recommend to always check the latest release scope notes:
Have also a look at the roadmap and read about changes and innovations with coming releases:
- Transition to universal parallel accounting for first scenarios
- Transition to universal parallel accounting for further scenarios
This was a quick summary on how the activation of Universal Parallel Accounting impacts financial planning in SAP S/4HANA. Please feel free to share your experience and thoughts in the comment section.
Brought to you by the S/4HANA RIG
SAP S/4HANA Regional Implementation Group