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SAP S/4HANA Manufacturing – E2E with Product
Costing & Profitability Analysis in Finance

Demo ID: 13595
Last Update: 30 May 2018
SAP S/4HANA MANUFACTURING – E2E WITH PRODUCT COSTING & PROFITABILITY ANALYSIS IN FINANCE
SAP S/4HANA Manufacturing – E2E with Product

Costing & Profitability Analysis in Finance
1. DEMO SCRIPT OVERVIEW ...................................................................................................................... 3
1.1. Demo Description .................................................................................................................................. 3
1.2. Why now ................................................................................................................................................. 3
1.3. Why SAP ................................................................................................................................................. 3
1.4. Story ........................................................................................................................................................ 3
2. TECHNICAL REQUIREMENTS ................................................................................................................. 4
2.1. Demo Environment & Users ................................................................................................................. 4
3. PRE-REQUISITE CHECK .......................................................................................................................... 5
4. S/4HANA PRODUCTION ORDER CREATION ....................................................................................... 16
5. S/4HANA PRODUCTION EXECUTION WITH MRP ............................................................................... 21
6. S/4HANA FINANCE ORDER CLOSING ................................................................................................. 40
7. S/4HANA FINANCE COPA ANALYSIS .................................................................................................. 55
2018-05-30 2
1. DEMO SCRIPT OVERVIEW

1.1. Demo Description
Highlights
With high volume of Production Orders in multiple plants and warehouses, organizations are facing more
complexity and inability to respond adequately. Witness how S/4HANA combats this and helps customers
enhance their manufacturing & controlling processes and detect streamlined flow into Unified GL &
Profitability Analysis. This will be done by visualizing a typical and streamlined manufacturing demo flow -
recorded in the S/4HANA On-Premise (1610).
1.2. Why now

 Multiple systems used to manage production orders, MRP runs, financial close and profitability
analysis
 Inability to make decisions based on real-time data
 Missed shipments due to material shortage
 Reconciliation of Finance and Controlling reports is a cumbersome and time-consuming process
1.3. Why SAP

 Improve customer satisfaction with on-time deliveries
 Insight to action minimizes risk of material shortages during production
 Single source of truth with Universal Journal and no more reconciliation needed by design
 Reporting is not limited by application boundaries (e.g. FI + CO + CO-PA)



1.4. Story
Meet Marcus. He is a Production engineer at Velotics Bikes, Inc. He handles multiple production orders and
executes multiple MRP runs daily for various plants. He finds it difficult to respond to material shortages and
analyze different options to best fulfil the shortages due to outdated information stored in multiple systems.
And unfortunately, material shortages result in customer shipping delays which leads to poor customer
satisfaction. It’s also nearly impossible to perform accurate product costing and financial analysis on
manufacturing data because of the different systems involved.
Luckily Velotics recently installed S/4HANA Manufacturing and teams in Manufacturing, Costing, and
Finance are already seeing many benefits. Marcus now has access to real-time data on multiple
production orders and can perform mass processing to address issues such as material shortages. The
Costing and Finance teams can now easily analyze cost drill down and profitability quickly and easily in a
single system. A task that once took over an hour to complete can now be completed in minutes, thanks to
SAP!
2018-05-30 3
2. TECHNICAL REQUIREMENTS
2.1. Demo Environment & Users
SAP Demo Cloud
This demo scenario can be executed in the following showrooms:
 Green Phoenix (CSA)
 CLA1 (Public)
You can directly register for the showroom from the Cloud Self-Service Portal:
http://www.sapdemocloud.com/
How To (SAP internal only):
1) For details on how to use the SDC portal please watch this Smart Video on “How to Access the SAP
Demo Cloud Showrooms".
2) In case you need to access the showroom via VPN, e.g. for showing the demo scenario from your mobile,
please check out this video: “How to Access the SDC Showrooms via VPN F5".
Online Demo - System Access Details
Access the demo in the CLA-18Q1 (Public) showroom:

Fiori Launchpad URL (can be used for access from inside and outside the showroom):
Demo URL: https://s4fiori-dc-claq1-na.sapdemocloud.com
Username: PROD-FIN
Password: Welcome1
Access the demo in the CSA / Green Phoenix and LOB ALL for Partners showroom:
Fiori Launchpad URL (can only be accessed from showroom desktop)
Demo URL: https://cimg4.wdf.sap.corp:44302
Username: PROD-FIN
Password: Welcome1
Backend System Access (only from WTS within the showroom):

If you require backend access please open SAP Logon, select the respective system (see below table) and
logon either with the demo user and password, or with your showroom user and password:
System Type System ID / Client
Backend system HE4 / 400
Gateway (frontend) system MG4 / 001
2018-05-30 4
3. Pre-Requisite Check
What to do and what to say What you should see
Objective of Pre-requisite Steps:
To run an end to end on-line

demo, one should follow these
pre-requisite steps in order to
ensure that the stock of
professional frame is zero and
there shouldn't be any future
purchase order's and/or
reservations for this material
during the scheduled production
period.
This professional frame material is

used in the production of
professional ebike and during the
MRP run, we should get the
shortage of professional frame
which will be procured and
consumed completely during the
production of professional ebike as
demonstarted in chapter
'S/4HANA Production Execution
with MRP'.
On-line demo is completely

repeatable, unless any one stops
the demo in between without
consuming procured professional
frame completely. If anyone stops
the demo in between, we won't get
MRP issues of professional frame
as per the demo flow.
1. Click on tile Manage Stock
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A) Manage Stock
Ensure that the stock balance of

professional frame is zero and if
any, remove the stock by
scrapping it.
2. Click .
3. Select
Plant
4. Enter Profe in the Material field.
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5. Select .
6. Click .
You see that the stock balance of

professional frame is zero. If
not, scrap the stock by clicking on
'Unrestricted-Use Stock' button
next to quantity and post the
material document.
7. Click .
2018-05-30 7
B) Monitor Material Coverage:
Sometimes, eventhough stock

balance is zero there might
be future purchase requisitions,
purchase orders,dependent
requirements and/or reservarions
during scheduled production
period which affects the MRP run
of professional frame.
In this case, you need to delete

these future purchase orders
and/or reservations to get ready
for the execution of an on-line
demo.
8. Click on tile Monitor Material

Coverage
9. Enter: MZ-RM-E108-01
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10. Click .
11. Click
a
gainst the material MZ-RM-E108-
01
12. Click
2018-05-30 9
Note: If you see no open purchase

orders, reservations etc. here,
please ignore the remaining steps
of this pre-requisites section and
proceed to "Production Order
Creation".
13. Click .
14. Click
15. Click .
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16. Click .
17. Click
18. Click .
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19. Click .
20. Click .
21. Click .
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22. Click .
23. Click .
24. Click .
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25. Click .
26. Click .
27. Click .
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28. Click .
Now, you see that there are no

future purchase orders and
reservation for professional
frames.
29. Click .
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4. S/4HANA Production Order Creation

Production Order Creation:
Here, we create production order

for professional ebike for a
quantity of 20 PC by scheduling
and releasing the order.
If you follow the pre-requisite steps

perfectly then you will get a
message indicating the missing
parts list/shortage of professional
frame, while releasing the
production order. Ignore this
message and proceed to release
& create the production order. We
are going to handle it in the next
unit.
Once the production order is

created, note down the order
number as further activities to be
performed on this production
order.
Note:
If you execute off-line demo,
directly you can start from this unit
without performing the unit 1 i.e.
Pre-requisite Steps.
1. Click on
Create Production Order Tile.
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2. Enter Profe in the Material

Field.
3. Double click
4. Enter YBM1 in the Order Type

box.
5. Click after entering

Production Plant as 1710 and
Order Type as YBM1.
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6. Enter Total Qty as 20
7. Click to select the End

Date.
8. Double Click on tomorrow's

date
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9. Click .
10. Click .
11. Click
.
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Ignore the warning message and

click on SAVE button.
12. Click .
Please note down the production

order number created to use
in further process.
13. Click .
2018-05-30 20
5. S/4HANA Production Execution with MRP

A) Monitor Production Orders
With the help of 'Monitor

Production Orders' tile, you can
monitor lot of production orders
and do mass processing, if
required.
Here, we are going to check

details and the status of the
production order created in the
previous step. You can see
missing component i.e.
professional frame in this case, to
start the production process
which will be procured in few
clicks.
You analyze available purchase

orders with delivery in near future
which won't help to start your
production process by tomorrow.
Hence you initiate a new purchase

order which has a proposed
delivery in near future, which will
be changed as discussed and
agreed with vendor over call to
deliver by tomorrow and do the
goods receipt.
Ensure that everything is ready

before proceeding for the actual
production process.
1. Click on tile Monitor

Production Orders
2018-05-30 21
2. Click .
3. Click to check Release.
4. Click .
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5. Click .
6. Click .
You can identify your production

order with the name 'professional'
which is released.
7. Click to select all line items.
2018-05-30 23
8. Click .
Out of so many orders available

here, select your production order
to proceed further.
9. Click
.
10. Click .
2018-05-30 24
You can see the production order

details like status of the order,
scheduling dates, Order
quantity, production version used
etc.
11. Click .
It provides nice visualization of

production order progress like
release date, start date, finish date
and goods receipt date. Now, the
current status of the order is
released.
We can also see the operations

involved in the production process
of professional ebikes and the
relevant work center where these
operations are going to be
performed. In further steps, we do
final acceptance in the work center
Z_INSP4, where scrap of
professional ebike is also
generated.
12. Click .
2018-05-30 25
See that one component is

missing i.e. nothing but the
professional frame and proceed
for the next actions (To get
professional frame under missing
components, we followed pre-
requisite steps to make the stock
balance as zero).
13. Click .
14. Click .
15. Click .
2018-05-30 26
Here, you can see the available

future purchase orders for the
material professional frame in a
tabular format.
16. Click .
Here, you can see the avaiable

purchase orders for professional
frame in graphical format and the
expected delivery dates.
Currently, professional frame stock

balance is zero and by tomorrow
i.e. the actual start of production of
professional ebikes, the shortage
of frames is 20 PC and as per the
available purchase orders we can
expect delivery of 10 PC of frame
in next 4 days and the delivery of 5
PC of frame in next 10 days. So, it
doesn't helpful to start
the production process by
tomorrow.
Hence, simulating a new purchase

order for the required quantity of
20 PC from HighTech vendor.
17. Click .
2018-05-30 27
But the proposed expected

delivery from Hightech vendor is
also after 4days. So, we had a call
with the vendor who agreed to
deliver it by tomorrow. Hence,
changing the proposed delivery
date and proceeding to create a
purchase order.
18. Click .
19. Click .
20. Double click on tomorrow's

date.
2018-05-30 28
21. Click .
Now, you see that the available

stock of frame will be 20 PC by
tomorrow i.e. 21.02.2017 in this
case.
22. Click .
Now, proceed further to do the

goods receipt of frame against the
newly created purchase order.
23. Click .
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24. Click and then click

on 'Purchase order'
25. Click .
26. Click
2018-05-30 30
27. Click .
28. Click .
29. Click .
2018-05-30 31
30. Click .
Now, you can see that the

required stock of 20 PC of frame is
available.
31. Click .
Here, you can observe that all the

required components are available
now and we can proceed to start
the production as there is no risk
of material shortage.
32. Click .
2018-05-30 32
33. Click .
B) Production Cost Analysis
Before starting the actual

production process, with the help
of 'Production Cost Analysis' tile
find out your order out of existing
thousands of open and closed
orders and then check the costs &
quantities against the production
order created.
You can observe that only plan

costs of the order are updated and
no actual and target costs
updated.
34. Click on tile Production Cost

Analysis
35. Select Order Status as 'Open

and Close' After that Click on Go.
2018-05-30 33
Make sure that the selected Order

status is 'Open and Closed'
36. Click
37. Click .
38. Click .
2018-05-30 34
C) Confirm Production Order

Operation
To accelerate the process in few

clicks, we are going to do
milestone confirmation and
backflushing.
Along with the milestone operation

i.e.20, all previous operations (i.e.
Operation 10) are confirmed with
target activity quantities.
With backflushing, goods issue

and goods receipt are posted
instead of entering manually.
Change the yield quantity from 20

to 18 PC and enter 1 PC of rework
and 1 PC of scrap to analyze in
scrap reports in further steps.
Slightly change the goods issue

quantity of any material from
proposed quantity, to get
production variances at the end.
39. Click on tile Confirm

Production Order Operation
40. Enter Production

Order Created in previous process
"Production Order Creation" in
this case"1002879".
2018-05-30 35
41. Enter Operation as 20
42. Click .
43. Click .
2018-05-30 36
44. Click .
Change default yield from 20 to

other quantity say 18 and the
balance as Scrap 1 Qty and
rework as 1 Qty
45. Click .
46. Enter Quantity: 22, against the

material "MZ-RM-E108-02"
2018-05-30 37
47. Click .
48. Click HOME
D) Production Cost Analysis
After actual postings

(confirmations, goods issue and
goods receipt) against to the
production order, actual costs &
quantities update on the
production order

Analysis.
2018-05-30 38
50. Click .
51. Click .
2018-05-30 39
6. S/4HANA Finance Order Closing

I. Analysis of Costs and Scrap
A) Production Cost Analysis
Here, by clicking on the production

order number you are able to see
the detailed costs of the
production order instead of just
balances.

Analysis
Make sure that the selected Order

status is 'Open and Closed'
2. Click .
3. Click on your Order which is

created in earlier step, In this
case" ".
2018-05-30 40
4. Click .
B) Material Scrap
Tiles 'Material Scrap', 'Scrap

Reason' and 'Operation Scrap' are
released in S/4HANA 1610 On-
premise.
Here, you can see the confirmed

material scrap of professional
ebikes in the form of bubble chart
through which you can drill down
to the confirmed scrap quanity by
material. You can also see the
timely view of scrap.
5. Click on tile Material Scrap

Maximum Deviation
6. Click to select the bubble.
2018-05-30 41
7. Click .
8. Click
9. Click here .
2018-05-30 42
10. Click
11. Click .
12. Click on tile Scrap Reason
C) Scrap Reason
Here, you can find out the scrap

quantity with reference to different
reasons.
2018-05-30 43
13. Click .
14. Click on tile Operation Scrap
D) Operation Scrap
You can see the work centers

causing the scrap and can choose
your material i.e. professional
ebikes in this case, to get the
scrap quantity of your material on
work centers.
You can also analyze the scrap on

work centers over a timeline.
15. Click .
2018-05-30 44
16. Click .
17. Click
18. Click .
2018-05-30 45
19. Click
20. Click .
II. Period End Activities against

Production Orders in Finance
In general, we perform period end

activities at plant/s level and not
for each individual order.
But in this case, to present an end

to end demo for the created &
processed production order, we
are performing these finance
period end activities for an
individual order.
A) Actual Overhead Calculation
Overhead calculation enables you

to apply actual overhead on
production order, which will be
2018-05-30 46

charged from the cost center
specified in settings. This
overhead will be posted with
reference to seconday cost
elements.
21. Click on tile Actual Overhead

Calculation
22. Enter your Order, in this

case 1002879.
23. Enter the current period in this

case 2.
24. Enter the current fiscal year in

this case 2017.
25. Click to unselect.
26. Click Execute
Click on 'Next List Level' button

after execution
27. Click .
2018-05-30 47
B) Variance Calculation
In general we perform Work in

process (WIP)calculation, before
variance calculation.
But in this case since the order is

completely delivered and there is
no prior calculated work in process
on this order, we are skipping this
process.
Variance calculation enables you

to calculate production variance
and scrap variance. It also
determines the causes of variance
into different variance categories
and provides the details of
variance at cost element level.
28. Click on tile Variance

Calculation
29. Enter the your Order, in this

case 1002879.

case 2.

this case 2017.
32. De-Select Test Run Check

Box
33. Select Details List Check Box
34. Click .
2018-05-30 48
35. Select the Order
36. Click .
37. Click .
C) Actual Settlement
Here, we are going

to settle variances calculated in
the previous step to financial
accounitng and CO-PA (Here, it is
account based CO-PA).
38. Click on tile Actual

Settlement Individual
Processing
2018-05-30 49

39. Enter your Order, in this
case 1002879.

case 2.

this case 2017.
42. Click .
Click on 'Detail Lists' button after

execution
43. Click .
44. Click .
2018-05-30 50
45. Click .
D) Production Cost Analysis
You can analyze plan costs, actual

costs and target costs business
transactions wise (like goods
issues, confirmations,
overhead and goods receipt) in
detail and with reference to the
origin of cost.

Analysis
47. Enter plant "1710".
48. Select Open and closed

option from drop down button.
49. Enter Company code inthis

case "1710".
50. Click .
2018-05-30 51
51. Click your Order, In this case
..
52. Click
53. Click .
2018-05-30 52
54. Click .
55. Click .
56. Click .
2018-05-30 53
2018-05-30 54
7. S/4HANA Finance COPA Analysis

A) Trial Balance
By accessing the trial balance, you

can analyze balances (Stating,
Debit, Credit and Ending) of G/L's
for the selected timeline.
You can also see G/L wise

balances with reference to the
selected material, by adding it in
the selection criteria.
We can also see the graphical

display of trial balance.
1. Click on tile Trial Balance
2. Click .
2018-05-30 55
3. Click .
4. Click to check Material
5. Click .
2018-05-30 56
6. Select the Check Box.
7. Click .
Now, you can see the material

field on selection parameters and
the trial balance will be displayed
for the selected material.
8. Enter MZ-FG in Material Field.
9. Click .
2018-05-30 57
10. Click .
Here, you can see the COGS

break-up and production variance
break up and other G/L's balances
for the selected professional ebike
material.
11. Click .
12. Click .
2018-05-30 58
B) Market Segments - Actuals
Here, you can see financial results

in a structured way instead of G/L
wise which are sorted in
alphabetical order by default.
You can select the required G/L

hierarchy say contribution margin
and analyze the financial results
within this hierachy.
You can add material as a

reporting field under columns so
that you can analyze and compare
contribution margin results with
reference to all materials.
13. Click on tile Market Segments

Actuals
14. Enter Current Fiscal year in

this case 2017.
15. Enter Company code in this

case 1710.
16. Click after entering

current fiscal year i.e. 2017 and
company code 1710 in this case
2018-05-30 59
Select Rows as 'G/L Account' and

Column as 'Key Figure'
17. Click .
18. Click .
19. Click to Select "GL

Account Hierarchy YPA1".
2018-05-30 60
20. Click .
21. Click
22. Click
2018-05-30 61
23. Click .
24. Click here to scroll down.
25. Click .
2018-05-30 62
26. Click .
2018-05-30 63

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SAP S/4HANA Manufacturing – E2E with Product

Costing & Profitability Analysis in Finance

SAP S/4HANA Manufacturing – E2E with Product

1. DEMO SCRIPT OVERVIEW

1.2. Why now

1.3. Why SAP

How To (SAP internal only):

Online Demo - System Access Details

Access the demo in the CLA-18Q1 (Public) showroom:

Backend System Access (only from WTS within the showroom):

System Type System ID / Client

Backend system HE4 / 400

Gateway (frontend) system MG4 / 001

Objective of Pre-requisite Steps:

To run an end to end on-line

This professional frame material is

On-line demo is completely

1. Click on tile Manage Stock

What to do and what to say What you should see

Ensure that the stock balance of

4. Enter Profe in the Material field.

What to do and what to say What you should see

You see that the stock balance of

What to do and what to say What you should see

B) Monitor Material Coverage:

Sometimes, eventhough stock

In this case, you need to delete

8. Click on tile Monitor Material

What to do and what to say What you should see

What to do and what to say What you should see

Note: If you see no open purchase

What to do and what to say What you should see

What to do and what to say What you should see

What to do and what to say What you should see

What to do and what to say What you should see

What to do and what to say What you should see

Now, you see that there are no

4. S/4HANA Production Order Creation

Production Order Creation:

Here, we create production order

If you follow the pre-requisite steps

Once the production order is

What to do and what to say What you should see

2. Enter Profe in the Material

4. Enter YBM1 in the Order Type

5. Click after entering

What to do and what to say What you should see

6. Enter Total Qty as 20

7. Click to select the End

8. Double Click on tomorrow's

What to do and what to say What you should see

What to do and what to say What you should see

Ignore the warning message and

Please note down the production

5. S/4HANA Production Execution with MRP

A) Monitor Production Orders

With the help of 'Monitor

Here, we are going to check

You analyze available purchase

Hence you initiate a new purchase

Ensure that everything is ready

1. Click on tile Monitor