SAP Best Practice Design - S4HANA 1709 Transfer Prices.v1

Transfer Prices in S/4HANA
Vagner Stig Joergensen

SAP, October 2017
PUBLIC
Agenda
▪ Overview of Transfer Prices – and Business

Reasons
SAP S/4HANA
Transfer Prices ▪ Transfer Prices in Detail – Process Flow
▪ Customizing of Transfer Prices
© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 2

Currency Types for Currency and Valuation in Transfer Pricing
Valuation
Currency Legal Group Profit Center
Local 10 11 12
Group 30 31 32
Currency:
• Local Currency, Group Currency
Valuation:
• Legal Valuation according to Legal Purpose with IC mark-up
• Group Valuation according to Group purpose without IC mark-up
• Profit Center Valuation for management purpose, transfer prices
ACDOCA Key Figure for each combination of Currency and Valuation

Material Ledger is the Basis for Transfer Prices in ERP
Actual Costing
 Classic Material Valuation provides balances Material Ledger optional
per inventory account in company code Material Inventory
Revaluation of stock value
currency with actual price
(with real cost of goods receipt
 The Material Ledger provides balances per or cost of goods manufactured)
inventory account in multiple currencies –
these values are now included in the
universal journal Parallel Currencies Parallel Valuation
Valuate with Transfer Prices
historical exchange rates Company Legal ProfitCenter
for multiple currencies
– Material Ledger also provides options to perform multilevel actual costing. This will be
performed using a costing run as before (not in scope for the Universal Journal).
– Finally the Material Ledger enables Parallel Valuation / Transfer Prices. Parallel Valuation
handles Legal, Group and Profit Center Valuation.

Price Determinations in Material Ledger
Price Determination 2
– Prices and Values shown in
the Material Master are taken
directly from the Universal
Journal
Multilevel Actual Costing –

Price Determination 3
– No Change – Costing Run
Needed to Update Inventory
Values at Period Close

Material Price Analysis
Material Price Analysis (CKM3)

is widely used to analyze all
factors contributing to the cost
of a material.
– Material Price Analysis initially
displays data aggregated data
aggregated from ACDOCA and
then drills down to the
document level in ACDOCA
– You can switch between
valuations and currencies and
navigate between periods in
this view. In SAP S/4HANA
Finance this data is read
directly from the universal
journal.

COST MANAGEMENT &
Material Valuation in S/4HANA PROFITABILITY ANALYSIS
€$
Up to 3 currencies in Material Master (10 per Fin. Ledger) Real-time Insights
▪ Tracking historic rates in material master ▪ Analyze & Optimize the Flow
¥ ▪ Local legal valuation & e.g. hard or trading currency ▪ Use real-time KPI‘s (Inv. turnover)
▪ Predict/ Simulate
Digital Core
Actual Costing Transfer prices

▪ Optional revaluation of stock and COGS ▪ Legal Costing
▪ Leverage Actual cost component split ▪ Corporate Costing (w/o intercompany)
▪ Transfer prices (political)

A Sample Supply Chain…
Worldwide supply chain with no transparency into actual cost & currency impacts on P&L
44
12
1 2
26
5
Material & Value Flow (legal)

@ Intercompany Transfer Prices Agreed Between
Entities
A Sample Supply Chain…
The same worldwide supply chain with intercompany profits eliminated
44
28
28
12
2 8
1
26
14 5
3
Material & Value Flow (legal)

…without Intercompany & Currency Translation Profit
(Mgmt. view)
SAP Solution…
Multiple Views of the Same Material Flow
Americas EMEA APAC Legal view focuses on

inter company pricing
Profit Center agreements and legal tax
Product A DE
FR requirements
USA IT CN
Group view focuses on
Profit Center
Product B eliminating intercompany
EQ
ID profits and acting as
„one company“
Profit Center
Product C
Profit Center view
focuses on
management prices
agreed e.g. between
divisions
Business Challenge Financial Reporting
it always depends on the view…
Traditional SAP ERP Financial Reporting

Financial Reporting (legal) Management Reporting (internal) Valuation (legal & internal views)
FI CO CO-PA Material Ledger

details by segments &
/ by legal entity & account by object / responsibility details by Valuation view
dimensions
Income Statement Overhead / Cost Centers

Profitability Analysis Actual Costing & Transfer Prices
Revenue 1.900 Product Costing
1.200 Sales & Sales Deductions 1.850 Material Price Analysis
- Cost of Goods Sold
Labor 150 Net Sales Transfer Prices
Gross Margin
- Marketing Cost External Labor 250
COGS Legal
- Material fix/var … Group
- R&D Cost Material fix 300 Profit Center…
- Labor fix/ var …
- .. - ..
- Administration Cost
Material variable 250
+/- Other Revenue / Other Expenses Margin 1 Actual Costing
Overhead 180
+/- Amortization / Depreciation Variances
Actual Quantity Structure
- Scrap
Administration 70 Single Level
EBIT …
Multilevel
- Price …
Total / COGS 1.200 Revaluation
- Quantity…
Variances Margin 2

Financial Reporting in S/4HANA Finance
Comprehensive Reporting including CO and CO-PA detail
Now Financial GL Reporting includes multiple views
Finance P&L
/ by legal entity& account by object / responsibility by segment & dimension by valuation view
Legal Group PrCtr
Comprehensive Financial Reporting in S/4HANA

▪ is not limited by application boundaries
▪ Run one report (e.g. P&L) and drill-down to required dimension & view
available in the line items
▪ Profitability Analysis has been refined to reflect the cost component split &
the variances on the G/L account
▪ Drildown into different Valuations views (Legal/ Intercompany/ Profit Center)

New Material Ledger Data Structures & Settlement
With S/4HANA release 1610 the period end closing of ML is completely redesigned
Finance
Simplification
Document Totals Indices
– Simplified Data Structures Header Item
GLT0 KNC1 KNC3 BSIS BSAS BSIK
– ML comes out of the box in S/4HANA (Conversion) GL, AR, AP BKPF
BKPF BSEG
BSEG
LFC1 LFC3 BSAD BSAK
BSID
– Transfer Prices & Actual Costing optional New GL FAGLF
ACDOCA
FAGLF FAGL FAGL
LEXA* LEXT* BSIS BSAS
– Optimized Calculation Logic CO COBK FAAT_DOC_IT

COEP COSS COSP
– Streamlined Process AA ANEK FAAT_YODA

ANEP ANEA ANLC ANLP
– Easier Handling ML MLHD*

FAAT_PLAN
MLIT*
_VALUES MLCD* MLCR* BSIM* CKMI1*
SAP Business
Suite
On the fly aggregation and compatibility views for
indices and obsolete tables Material Values
Valuation in MM or Valuation in ML
Selection Hybrid:
Used
Aggregates
for Master
Master Data
Data with
only
History
ML Valuation
Settlement
Valuated Stock
MBEW
MBEW MBEWH MLDOC
CKMLCR MLPP CKMLPP CKMLPPWIP
Post Closing EBEW

EBEW EBEWH MLDOCCCS
CKMLPP MLCR CKMLCR CKMLKEPH
QBEW
QBEW QBEWH MLHD MLCRF MLCD CKMLMV004
OBEW
OBEW OBEWH MLKEPH CKMLMV003
MLIT

Real-Time Consolidation
building blocks
SAP S/4HANA, ON PREMISE SAP BusinessObjects

Planning and Consolidation
Group Flexible
Disclosure Management BPC Planning
Reporting Upload
BPC
Central Finance Intercompany BPC Consolidation
SAP ERP Integration
SAP R/3
Non-SAP Validations Eliminations Modelling BPC Modelling
Currency
Accounting Controlling Validation
Translation
ACDOCA Master Data Exten. ACDOCC BW

Existing functionalities
Consolidation preparation RTC Enhancements
Consolidation Enhancements
SAP S/4HANA 1610

S/4HANA Transfer Prices – Process Flow
Intercompany Stock Transport Order
Third Party Sale with Inter Company Delivery

How Is the Product Flow Represented in the Supply Chain?
From a costing point of view there are two elements in the supply chain:
• The bill of material (BOM) : provides a link between • The Material Ledger : captures the link between
plants that trade with one another for planning sender plant and receiver plant as the goods
purposes. movement for the stock transfer order is posted.
Underlying conditions:
• A single instance
• Common material numbers
Cross-Company Purchase Order Triggers Document Flow
GR in buying company
Intercompany billing
Goods Issue to
COGS Account
• Outbound delivery for purchase order triggers

postings in both legal entities (Goods Issue and
Goods Receipt)
Reposting Goods issue
COGS Account to
• Intercompany billing documents triggers detailed COGS Accounts
revenue posting.

How Is the Value Flow Represented in the Supply Chain?
Standard Costs created using three separate costing variants

that work from a common BOM
Cost components recognize delta by company code and profit
center at intersections
The costing variants fill three valuation views in the material
ledger.
Recapture!!

Architecture for parallel transfer price valuations
Configuration with “Currency & Valuation Types” in Universal Journal Ledger
Alternative Options:
“Parallel single-valuation Ledgers”
Legal View
• Valuation is assigned to Ledger
• Option for new installations Group View
• Easier authorization concept Profit Center View
“Multi-valuation Ledger”
• Currency types of all Valuations
can be assigned
• No separate close needed
• Memory footprint optimized
• Default for Migration
Legal View Group View Profit Center View
Example:
Leading Ledger with Group Valuation according to IFRS / US GAAP etc. According to Group Accounting
Parallel Ledger with Legal Valuation according to Local GAAP’s
COGS split in journal entry supports fix/var costs and parallel valuations
Planning:
Cost Estimate in local valuation (0) Cost Estimate in group valuation (1) Cost Est.in profit center valuation (2)
Multilevel Cost Comp. Total Fix Cost Comp. Total Fix Cost Comp. Total Fix
Cost Estimates Material 220 USD 0 USD Material 110 USD 0 USD Material 275 USD 0 USD
for finished materials Production 300 USD 100 USD Production 300 USD 100 USD Production 300 USD 100 USD
in parallel valuations Overhead 150 USD 50 USD Overhead 150 USD 50 USD Overhead 150 USD 50 USD
& fix/variable costs
COGS Scheme for COGS Scheme for COGS Scheme for

local valuation group valuation profit center val.
Journal Entry with document type delivery of goods (WL)

Trans Line Ledger Account Company Company Group Group Group Group
action Item Currency Currency / Currency / Currency / Currency / Currency /
/ legal legal (fix) Group val. Group Profit Center Profit Center
Actual: (total) (total) val.(fix) val.(total) valuation.(fix)
BSX 1 0L Finished goods -670 USD 0 USD -560 USD 0 USD -725 USD 0 USD
COGS split on goods
GBB 2 0L COGS_1 670 USD 150 USD 560 USD 150 USD 725 USD 150 USD
delivery in parallel
3 0L COGS_1 -670 USD - 150 USD - 560 USD - 150 USD -725 USD - 150 USD
valuations and & 4 0L COGS_Material 220 USD 0 USD 110 USD 0 USD 275 USD 0 USD
fix/variable costs 5 0L COGS_Production 300 USD 100 USD 300 USD 100 USD 300 USD 100 USD
(same accounts) 6 0L COGS_Overhead 150 USD 50 USD 150 USD 50 USD 150 USD 50 USD

Intercompany Billing with Multiple Prices
Legal valuation:
PR00(PI00) – revenues
VPRS – costs
Group valuation:
KW00 – passes cost estimate
Profit center valuation:

PC00 – revenues profit center
PCVP - costs profit center
Flow works using IDOC (no manual invoice entry).
Technical Changes to the ML with SAP Simple Finance
MLHD
Usage of Material Ledger for parallel currencies and
parallel valuation purpose
MLIT – Contents of tables MLIT, MLPP, MLPPF, MLCR, MLCRF,
MLCD, CKMI1, BSIM is now stored in ACDOCA. MLHD
MLPP data is stored in BKPF
– Compatibility views V_<TABLENAME> (e.g. V_MLIT) are
BKPF
MLPPF
provided in order to reproduce the old structures
– Access to old data in tables still possible via the views
MLCR
ACDOCA V_<TABLENAME>_ORI (e.g. V_MLIT_ORI)
MLCRF
– MLHD, MLIT, MLPP, MLCR still keep prima nota
information, in case of manual price changes or material
MLCD
debit/credit.
CKMI1
Usage of Material Ledger for Actual Costing purpose
– MLIT, MLIT, MLPP, MLPPF, MLCR, MLCRF, MLCD are
BSIM used as before Simple Finance

Material Ledger architecture has been changed w/ S/4HANA 1610
https://jam4.sapjam.com/wiki/show/JcgkZZ6sgkNitdPPSvJghF
• Note! It is not recommended to use the actual costing function w/ 1610 and the initial shipment. You need SP01
(https://launchpad.support.sap.com/#/notes/0002416935)
• Reduced complexity and improved runtimes for Actual Costing: 4 process steps are now one ‘Settlement’:
• 'Single-Level Price Determination',
• 'Multilevel Price Determination',
• 'Revaluation of Consumption',
• 'WIP Revaluation‘
• In current period: No lock conflicts caused by material movements
• Change of standard price for materials and activities within the period is supported. Technically
(https://launchpad.support.sap.com/#/notes/0002416935)
• New Tables:
• MLDOC Material Ledger Document
• MLDOCCS Material Ledger Document Cost Component Split
• The new Material Ledger Document tables MLDOC and MLDOCCCS replace most former periodic tables (MLHD,
MLIT, MLPP, MLPPF, MLCR, MLCRF, MLKEPH, CKMLPP, CKMLCR, MLCD, CKMLMV003, CKMLMV004,
CKMLPPWIP, CKMLKEPH).
• New Material Ledger Cockpit - note 2353076 is mandatory for using the new CKMLCP.

SAP S/4HANA Database & Table Structures
Prepare your data structures for new real-time requirements, big data and high throughput
Sales Finance
Document Indices
Header Item incl. Document Totals Indices
incl. Status Status Header Item
GLT0 KNC1 KNC3 BSIS BSAS BSIK
Sales Order VBAK VBAP VAKPA VAPMA GL, AR, AP BKPF
BKPF BSEG
BSEG
LFC1 LFC3 BSID BSAD BSAK
Delivery LIKP
LIKP KIPS
LIPS VLKPA LKPMA
FAGLF FAGL FAGL
New GL FAGLF
ACDOCA LEXT* BSIS BSAS
Billing Document VBRK
VBRK VBRP VRKPA VRPMA LEXA*
CO COBK FAAT_DOC_IT
COEP COSS COSP
Status Info VBUK VBUP
Index for Rebates
AA ANEK FAAT_YODA
ANEP ANEA ANLC ANLP
PRCD_
Conditions KONV(new)
ELEMENTS VBOX
FAAT_PLAN
ML MLHD* MLIT*
_VALUES MLCD* MLCR* BSIM* CKMI1*
VBFA
Document Flow VBFA
SAP Business
(simplified)
Material Values Suite

On the fly aggregation and compatibility views for
indices and obsolete tables Material Quantities
Valuation in MM or Valuation in ML Aggregates History
Aggregates Stock Aggregates

History
Used for Master
Hybrid: Master Data
Data with
only ML Valuation MSSA MSSL MSSQ MSSAH MSTBH MSSQH
Valuated Stock Material Document
MATDOC_
MBEW
MBEW MBEWH MLDOC
CKMLCR MLPP CKMLPP CKMLPPWIP MATDOC
MKPF MSEG
EXTRACT MSTE MSTQ MSTB MSTEH MSTQH
Inventory
EBEW
EBEW EBEWH MLDOCCCS MLCR CKMLCR CKMLKEPH Hybrid: Master Data
Used for with Data
Master Stockonly
Aggregates MARCH MARDH MKOLH
CKMLPP movements
QBEW
QBEW QBEWH MLCRF MLCD CKMLMV004 MCHB MARC MARD MSKU MSLBH MCHBH MSKUH
MLHD
OBEW
OBEW OBEWH MLKEPH CKMLMV003 MSKA MKOL MSPR MSLB MSKAH MSPRH
MLIT

Selling Transfer Prices to CxO’s
What business benefits does Transfer Prices bring to the CEO?
In General, Profitability Analysis on any dimension

Customer Profitability
Product Profitability
Project Profitability
Sales Order Profitability
Profit Center
etc.
Foundation for Legal Consolidation
Built in Elimination of Profit in Inventory
Built in Elimination of Intercompany Sales and COGS

Transfer Prices in S/4HANA 1610
1. Fiori Launchpad
2. Fiori: Display Stock – Single Material / MMBE
3. Fiori: Create Purchase Order Advanced - for Intercompany Stock Transport Order (ME21N)
4. TA: Create Outbound Delivery / VL10B Purchase Orders
5. Fiori: Change Purchase Order Advanced - Check PO is updated in PO History
6. TA: Post Goods Issue with reference to Outbound Delivery (VL02N)
7. Fiori: Analyze generated Financial Documents in both Company Codes in Parallel Valuations -
Change Purchase Order Advanced
8. Fiori: Intercompany Billing – Create Billing Document (VF01)
9. Invoice Receipt (IDOC)
10. ML document (CKM3)
11. Product Costing (CK13N)
PS: MMPV may need to be executed!!!
Controlling Area: TC05
Material: FSM-F-01
Stock Transport Order
Sender Plant: TP09 Receiver Plant: TP10
Co Code: T007, Switzerland Co Code: T008, Germany
Currency: CHF Currency: EUR
Customer: CUSTT008 (in Vendor: VENDT007 (In Receiver

Sender Co Code i.e. T007) Co Code i.e. T008)

Intercompany Stock Transport Order – Posting Flow
Sender: Receiver:
Company Code T007 CHF Company Code T008 EUR
Profit Center 1015 Profit Center 1500
Goods Issue (1st step) Goods Receipt (1st step)

893010 COGS 792000 Inventory Inventory GR/IR
CHF L 12.439 L L L 12.439 L 13.955 L L L 13.955 EUR
EUR G 8.140 G G G 8.140 G 8.140 G G G 8.140 EUR
Billing Document (2nd Step) Invoice Recept (2nd Step)

Val. Clearing Account Revenue GR/IR Val. Clearing Account
CHF L L L L 15.000 L 13.955 L L L EUR
EUR G G 5.815 G G 8.140 G 8.140 G G 5.815 G EUR
Receivables Sales Tax Input Tax Payables

CHF L 15.000 L L L L L L L 13.955 EUR
EUR G 13.955 G G G G G G G 13.955 EUR
L Legal Valuation, Local Currency CHF / EUR 1,075

G Group Valuation, Group Currency
The Valuation Clearing Account ensures that Revenue in Group Valuation = Revenue in Legal Valuation
The Valuation Clearing Account ensures that GR/IR in Group Valuation = GR/IR in Legal Valuation
Receivalbles and Payables are only according to Legal Valuation
A/R & A/P will be cleared by paymens, which also exists in only Legal Valuation

Fiori Launchpad
https://cim4j.wdf.sap.corp:44302/sap/bc/ui5_ui5/ui2/ushell/shells/abap/FioriLaunchpad.html
VL10B
OutbDelPO
VL02N
Post Goods
Issue

Display Stock - Single Material

Create Purchase Order for Intercompany Stock Transport Order
3
1
Swiss Company =
Vendor VENDT007
German Plant TP10 is raising a purchase

order for the material FSM-F-01 to be
delivered from Swiss plant TP09

Create Outbound Delivery – Purchase Orders / VL10B

Check PO is updated in PO History
Note document number for:

1. Outbound delivery and
2. Intercompany Billing

Post Goods Issue with reference to Outbound Delivery – VL02N

Analyze Financial Documents in both Company Codes
in Parallel Valuations
Change Purchase Order Advanced – Check WA and WE documents

Check Goods Issue - WA document - 4900000016

Check Goods Issue - WA document - Accounting Document
In the Swiss Co Code, Cost of goods sold (COGS) G/L is debited and
Finished goods inventory G/L is credited in multiple valuations.

Check Goods Issue - WA document - ACDOCA
ACDOCA

Check Goods Issue - WA document - 4900000017
The cost of goods sold (COGS) posted in the previous document shown, got reversed
(i.e. credited) here and the cost of goods sold (COGS) break up i.e. raw materials,
production overhead etc. is posted with reference to different G/L's. It can provide better
insight into the cost details in multiple valuations.
Check Goods Issue - WA document - ACDOCA

Check Goods Receipt 4900000001

Goods Receipt - Germany

Intercompany Billing – Create Billing Document (VF01)
Outbound Dlv Doc No
More -> Display

Intercompany Billing



Intercompany Billing, Invoice Issue - ACDOCA
Invoice Issue doc: 100000001

CHF EUR EUR EUR CHF CHF
Legal
Group
PrCtr
Intercompany Billing, Invoice Receipt (and GR) - ACDOCA


J3RFLVMOBVEDH - Stock Overview (New)

Material Ledger – CKM3
D Click

Product Costing – CK13N

Transfer Prices - Configuration
Configuration of Parallel Valuation

1. Maintain Controlling Area
2. Maintain Currency & Valuation Profile
3. Maintain Descriptions for valuation Bases
4. Create Versions for Valuation Methods
5. Define Ledger for CO Versions
6. Check Material Ledger Settings
7. Define Settings for Ledgers and Currency Types
8. Define Costing Variants
9. Price Conditions in SD

Maintain Controlling Area

Maintain Currency & Valuation Profile

Maintain Descriptions for valuation Bases
Used in Material Ledger, e.g. CKM3

Create Versions for Valuation Methods
1. Create Versions for Valuation Methods
2. Controlling Areas Settings & ‘Check Multiple Valuation’.
3. Version 0 and Settings for each fiscal year

Define Ledger for CO Versions
Define Ledger for CO Versions

Group, Legal and Profit Center Valuation are all in the Leading Ledger 0L

Check Material Ledger Settings
Check Material Ledger Settings 1. Assign Currency Types and Define Material Ledger Types
2. Assign Material Ledger Types to Valuation Areas
3. Activate Valuation Area for Material Ledger

Valuation Clearing Account determination
FS00
Valuation Clearing Account determination


Define Settings for Ledgers, Currency Types and Company Codes

Define Settings for Single & Multi Valuation Ledgers (and difference)
Multi Valuation Ledger
Single Valuation Ledger

Define Costing Variants

Intercompany Billing with Multiple Prices
Legal valuation:
PI01 – IC revenues
PR00 – revenues
VPRS – costs
Group valuation:

Flow works using EDI (no manual invoice entry).

Intercompany Billing with Multiple Prices – Condition Category
Group valuation:

Condition Category:
b Transfer Price for Group Valuation
c Transfer Price for Profit Centers

Inter Company Stock Transport Order

Purchase Goods IC Goods Invoice
Order Issue Billing Receipt Receipt
Sold Qty
PI01 IC Reven
VPRS Leg COGS
KW00 Grp COGS
Inventory IC Vendor
L 700 700 L
General Receiving G 500 700 G
Ledger Company GR/IR GR/IR
700 L L 700
500 G G 500
COGS IC Cust.
L 400 L 700 IC Profit Clear
Delivering G 500 G 700
L 0
G 200
Company Inventory IC Revenue IC Profit Clear
400 L 700 L 0L
500 G 500 G 200 G
Inter Company processing with end-customer

Sales Goods Billing IC Invoice
Order Issue Billing Receipt
Sold Qty Sold Qty
PR00 Revenue IC Reven PI01
VPRS Leg COGS Leg COGS VPRS
KW00 Grp COGS Grp COGS KW00
Customer IC Profit Clear IC Vendor
L 1000 L 0 700 L
General Selling G 1000 G 200 700 G
Revenue COGS
Ledger Company 1000 L L 700
1000 G G 500
COGS IC Cust.
L 400 L 700
Delivering G 500 G 700
Company Inventory IC Profit Clear IC Revenue
400 L 0L 700 L
500 G 200 G 500 G
Agenda – Transfer Prices in S/4HANA Finance
Tip & Tricks

S/4HANA Transfer Prices – Delete Finance Transactions
Reset for company code 1000 not possible, since MM-IM data exists in MATDOC
2435848 - S/4HANA: Prevent that transaction OBR1 is executed, if S/4HANA MM-IM and Actual Costing data exist
2523145 - OBR1: reset for company code not possible, since MM-IM data exists in MATDOC
https://i7p.wdf.sap.corp/sap/support/notes/2523145
Table Name No of records

MATDOC 52
MATDOC_EXTRACT 13.497
ACDOCA_M_EXTRACT 45
NSDM_MIG_DELETE_MATDOC
Deletes MATDOC, MATDOC_EXTRACT
Leaves ACDOCA_M_EXTRACT untouched

© 2017 SAP SE or an SAP affiliate company. All rights reserved.
No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP SE or an SAP affiliate company.
The information contained herein may be changed without prior notice. Some software products marketed by SAP SE and its distributors contain proprietary software components
of other software vendors. National product specifications may vary.
These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or warranty of any kind, and SAP or its affiliated
companies shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP or SAP affiliate company products and services are those that are
set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty.
In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release
any functionality mentioned therein. This document, or any related presentation, and SAP SE’s or its affiliated companies’ strategy and possible future developments, products,
and/or platform directions and functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any time for any reason without notice. The
information in this document is not a commitment, promise, or legal obligation to deliver any material, code, or functionality. All forward-looking statements are subject to various
risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements,
and they should not be relied upon in making purchasing decisions.
SAP and 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. All other product and service names mentioned are the trademarks of their respective companies.
See http://global.sap.com/corporate-en/legal/copyright/index.epx for additional trademark information and notices.

SAP Best Practice Design - S4HANA 1709 Transfer Prices.v1

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

SAP Best Practice Design - S4HANA 1709 Transfer Prices.v1

Uploaded by

Copyright:

Available Formats

Transfer Prices in S/4HANA

Vagner Stig Joergensen

▪ Overview of Transfer Prices – and Business

▪ Customizing of Transfer Prices

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 2

ACDOCA Key Figure for each combination of Currency and Valuation

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 4

Multilevel Actual Costing –

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 5

Material Price Analysis (CKM3)

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 6

Actual Costing Transfer prices

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 7

Material & Value Flow (legal)

Material & Value Flow (legal)

Americas EMEA APAC Legal view focuses on

Traditional SAP ERP Financial Reporting

FI CO CO-PA Material Ledger

Income Statement Overhead / Cost Centers

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 11

Now Financial GL Reporting includes multiple views

Legal Group PrCtr

Comprehensive Financial Reporting in S/4HANA

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 12

– Optimized Calculation Logic CO COBK FAAT_DOC_IT

– Streamlined Process AA ANEK FAAT_YODA

– Easier Handling ML MLHD*

Post Closing EBEW

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 13

SAP S/4HANA, ON PREMISE SAP BusinessObjects

ACDOCA Master Data Exten. ACDOCC BW

SAP S/4HANA 1610

Intercompany Stock Transport Order

Third Party Sale with Inter Company Delivery

• Outbound delivery for purchase order triggers

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 20

Standard Costs created using three separate costing variants

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 21

Configuration with “Currency & Valuation Types” in Universal Journal Ledger

• Easier authorization concept Profit Center View

& fix/variable costs

COGS Scheme for COGS Scheme for COGS Scheme for

Journal Entry with document type delivery of goods (WL)

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 23

Profit center valuation:

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 25

• In current period: No lock conflicts caused by material movements

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 26

Material Values Suite

Aggregates Stock Aggregates

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 27

What business benefits does Transfer Prices bring to the CEO?

In General, Profitability Analysis on any dimension

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 31

Controlling Area: TC05

Customer: CUSTT008 (in Vendor: VENDT007 (In Receiver

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 33

Goods Issue (1st step) Goods Receipt (1st step)

Billing Document (2nd Step) Invoice Recept (2nd Step)

Receivables Sales Tax Input Tax Payables

L Legal Valuation, Local Currency CHF / EUR 1,075

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 34

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 35