Margin Analysis with SAP S/4HANA

Profitability Analysis for SAP

Book Information

• Publisher: SAP PRESS
• Authors: Kathrin Schmalzing
• Year: 2025
• Edition: 3
• Pages: 341
• Language: English

Description

Margin analysis is now the standard for CO-PA in SAP S/4HANA—master it with this all-in-one resource! Get click-by-click instructions for configuring your master data, establishing operating concerns and value flows, and more to set up margin analysis in SAP S/4HANA. Walk through planning your COGS, sales, and overhead costs. See what’s changed for margin analysis, including new reporting options with SAP Business Technology Platform and SAP Datasphere. This book provides all the guidance you need for each step of your account-based profitability operations!

• Configure margin analysis in SAP S/4HANA
• Perform profitability planning with your data
• Run key profitability reports using SAP Fiori and SAP GUI
• Third edition, updated and revised

Key Highlights

• Basic settings
• Master data
• Organizational data
• Characteristics
• Value flows
• Operating concerns
• Cost center assessment
• Costing-based profitability analysis
• Planning
• Reporting

You'll learn about

• Configuration:
  Customize SAP S/4HANA for your business needs! Follow step-by-step instructions to configure margin analysis, from setting up operating concerns to creating, assigning, and maintaining characteristics.
• User Operations:
  Get detailed guidance on sales, COGS, and overhead cost planning in SAP S/4HANA. Create predictive data, and then transfer billing documents, COGM, and variances to margin analysis.
• Reporting:
  Master the basics of profitability reporting. Learn how to use tools for predictive accounting, and then explore CDS views, ABAP reports, and SAP HANA Live. Discover new options for reporting through SAP Datasphere and SAP BTP.

Table of Contents

• Introduction
• Target Group
• Objective and Content
• Universal Parallel Accounting and the Future of Margin Analysis
• The Purpose and Motivation Behind UPA
• Key Features of UPA
• Business Scenarios Enabled by UPA
• Implications for Core Finance Processes
• Acknowledgments

• 1 Introduction to Profitability Analysis
• 1.1 Purpose of Profitability Analysis
• 1.2 Profitability Concepts
• 1.2.1 Profitability Segments
• 1.2.2 Characteristics
• 1.2.3 Value Fields
• 1.3 Types of Profitability Analysis
• 1.3.1 Margin Analysis (Account-Based Profitability Analysis)
• 1.3.2 Costing-Based Profitability Analysis
• 1.3.3 Comparison of Profitability Analysis Types
• 1.4 Technical Setup
• 1.4.1 Technical Setup of Costing-Based Profitability Analysis
• 1.4.2 Technical Setup of Margin Analysis
• 1.5 Summary

• 2 Configuring the Operating Concern and Basic Settings for Profitability Analysis
• 2.1 Creating the Operating Concern
• 2.1.1 Assign a Controlling Area to the Operating Concern
• 2.1.2 Create Operating Concern
• 2.1.3 Maintain Further Settings for the Operating Concern
• 2.1.4 Define Operating Concern Currency
• 2.1.5 Assign Value Fields to Operating Concern
• 2.2 Activating Profitability Analysis
• 2.3 Currencies in the Operating Concern
• 2.4 Creating an Extension Ledger for Profitability Analysis
• 2.5 Creating Number Ranges for Profitability Analysis
• 2.6 Assigning Versions to the Operating Concern
• 2.7 Setting the Operating Concern
• 2.8 Transporting the Operating Concern
• 2.9 Summary

• 3 Configuring Characteristics
• 3.1 Characteristics
• 3.1.1 Creating, Changing, and Updating Characteristics
• 3.1.2 Creating a Characteristic from an SAP Table
• 3.1.3 Creating Characteristics with Your Own Value Maintenance
• 3.1.4 Creating Characteristics Without Value Maintenance
• 3.1.5 Creating Characteristics with Reference to Existing Values
• 3.1.6 Assigning Characteristics to the Operating Concern
• 3.1.7 Maintaining Characteristic Values
• 3.2 Characteristics Derivations
• 3.2.1 Creating Characteristic Derivations with Derivation Rules
• 3.2.2 Creating Characteristic Derivations with Table Lookup
• 3.2.3 Creating Characteristic Derivations with Moves
• 3.2.4 Creating Characteristic Derivations to Clear Fields
• 3.2.5 Creating Characteristic Derivations with Enhancements
• 3.2.6 Sequence of Characteristic Derivation Rules
• 3.2.7 Derivation Analysis
• 3.2.8 Realignment of Characteristics
• 3.3 Summary

• 4 Value Flows of Margin Analysis
• 4.1 Predictive Accounting
• 4.1.1 Predictive Accounting: Incoming Sales Order
• 4.1.2 Predictive Accounting Commitment Management
• 4.2 Billing Data Transfer
• 4.2.1 Price Determination in the Sales Order
• 4.2.2 Create Sales Order
• 4.2.3 Account Determination
• 4.2.4 Activate Transfer of Statistical Sales Conditions
• 4.2.5 Create Billing Document
• 4.2.6 Review Accounting Documents
• 4.3 Costs of Goods Manufactured in Margin Analysis
• 4.4 Splitting the Cost of Goods Sold
• 4.5 Variance Calculation
• 4.5.1 Production Order
• 4.5.2 Define Variance Categories
• 4.5.3 Create General Ledger Accounts for Variance Split
• 4.5.4 Check Production Order
• 4.6 Order Settlement
• 4.7 Overhead Allocation
• 4.7.1 Advantages of Universal Allocations
• 4.7.2 Types of Cost Centers
• 4.7.3 Create an Overhead Allocation Cycle
• 4.7.4 Execute the Overhead Allocation Cycle
• 4.8 Direct Account Assignment
• 4.9 Top-Down Distribution
• 4.10 Summary

• 5 Costing-Based Profitability Analysis
• 5.1 Value Fields
• 5.2 Quantity Fields
• 5.3 Assigning Value Fields and Quantity Fields to the Operating Concern
• 5.4 Transferring Incoming Sales Orders
• 5.5 Transferring Quantity Fields
• 5.6 Billing Data Transfer
• 5.6.1 Transferring Cost of Goods Sold
• 5.6.2 Assigning Value Fields to Pricing Conditions
• 5.6.3 Assigning Quantity Fields to Quantities
• 5.6.4 Reviewing Profitability Document
• 5.6.5 Resetting Value and Quantity Fields for Credit and Debit Memos
• 5.7 Costs of Goods Manufactured
• 5.8 Cost of Goods Sold Transfer and Split
• 5.8.1 Defining Valuation Strategies
• 5.8.2 Setting Up Valuations Using Material Cost Estimates
• 5.9 Variance Calculation
• 5.9.1 Cost Center Types
• 5.9.2 Variance Calculation and Settlement of Process Order
• 5.10 Cost Center Assessment
• 5.11 Direct Account Assignment
• 5.12 Summary

• 6 Planning
• 6.1 Planning in Margin Analysis
• 6.2 Sales Planning
• 6.3 Cost of Goods Sold Planning
• 6.4 Overhead Cost Planning
• 6.5 Summary

• 7 Reporting
• 7.1 Profitability Analysis Reporting Basics
• 7.2 Predictive Accounting
• 7.2.1 Displaying Predictive Documents
• 7.2.2 Displaying the Profit and Loss and Balance Sheet Report
• 7.2.3 Monitoring Predictive Accounting
• 7.2.4 Incoming Sales Order Report
• 7.3 Showing Line Items for Margin Analysis
• 7.4 Profitability Analysis Reporting
• 7.4.1 Gross Margin
• 7.4.2 Sales Accounting Overview
• 7.4.3 Product Profitability with Production Variances
• 7.4.4 Profit and Loss Statements
• 7.4.5 Market Segments Actual
• 7.4.6 Report Writer
• 7.5 Other Reporting Possibilities with Development
• 7.5.1 ABAP Reports
• 7.5.2 Core Data Services Views
• 7.5.3 SAP Datasphere
• 7.5.4 SAP Business Technology Platform
• 7.6 Summary

• A Changes to the Data Model

• B Additional Sources of Information

• C The Author

• Index

Disclaimer

SAP, other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE (or an SAP affiliate company) in Germany and other countries. Our Company is not affiliated to SAP SE or any of its affiliated companies including but not limited to: Sybase, Business Objects, Hybris, Ariba and SuccessFactors. All other names, brands, logos, etc. are registered trade or service marks of their respective owners.