Objective
The released CDS views retrieve sales performance data from your system, including planned and actual data. With this app, you can analyze the profitability of your sales area at the level of individual sales orders.
As previously mentioned regarding sales order receipts, you can use the My Sales Overview app to evaluate the status of ongoing sales orders.
With regard to upcoming deliveries with goods issue and invoice, you can evaluate in advance which sales orders are due for delivery.
After the forklift truck has been manufactured and the customer's specific stock is available, the delivery can be created for the customer order and the goods issue can be posted.
You trigger shipping activities by creating deliveries. The shipping point, which is the highest-level organizational unit of shipping, controls these activities. Each outbound delivery is processed by one shipping point.
A shipping point can be a loading ramp, a mail depot, or a rail depot. It could also be a group of employees responsible for organizing urgent deliveries. Shipping points are assigned at the plant level and should be physically near the delivering plant. Multiple shipping points can be assigned to a plant if they are in close physical proximity.
First, the delivery is created with reference to the customer order. In this Make-to-Order (MTO) scenario, it is crucial that the forklift is available as a customer item with reference to the customer order. The following figure shows that shipping point 1010 has been assigned to the sales order item.
The shipping point, delivery date, and sales order number are specified in the settings for creating the delivery. The sales order must be due for delivery according to the delivery date entered in the sales order. If delivery needs to be made before the due date, the delivery date must be adjusted accordingly when creating the delivery.
The delivery date can be checked and manually modified in the scheduling lines of the sales order item.
The figure above shows that the scheduled delivery date does not need to match the sales order creation date. This depends on the planned delivery time.
To ensure the adjusted revenue is calculated during goods issue, use the "Create Outbound Deliveries from Sales Orders" app.
The outbound delivery can be created manually with reference to the sales order number.
Note
Saving the posting is not necessary as it occurs automatically. The subsequent steps are picking and posting the goods issue.
Use the "Manage Sales Orders" app to analyze the corresponding documents within the delivery.
After completing the picking process, proceed with posting the goods issue.
The results of posting the goods issue can be verified through the process flow using the "Manage Sales Orders" app.
The material document and accounting documents can be accessed through the document flow in the sales order.
The Document Flow shows that the goods issue for the delivery was calculated using the same method as the previous goods receipt for the production order, based on the sales order cost estimate.
The delivery's process flow allows for analysis of the corresponding goods issue accounting documents.
Event-based revenue recognition enables costs and revenues to be recognized as they occur. Cost postings are continuously matched to revenues and immediately reported as expenses, while revenues are posted directly to income statement accounts.
Recognition and adjustment postings are generated simultaneously with transactions. The matching principle is inherently supported, eliminating the need for periodic batch jobs for reconciliation.
Event-based revenue recognition is fully integrated with General Ledger, with recognition data stored in the same location as cost and revenue data.
This integration removes restrictions imposed by periodic processes. The cost and revenue information available for analysis is always reconciled and current, regardless of the day of the month.
Comparing conventional periodic and event-based approaches reveals key advantages:
Event-based revenue recognition provides full transparency into the recognition process. You can analyze the chain of events by drilling down from recognition journal entries to cost or revenue journal entries and underlying source documents. WIP analysis by market segment or project is also available.
The Event-Based Revenue Recognition - Sales Orders (Version 2) app recognizes costs and revenues associated with sales orders in real-time. It includes all functionalities of the original app with improved performance. Cost postings are matched to revenues and reported as expenses, while revenues are posted to income statement accounts. Recognition and adjusting entries are generated simultaneously. The app's full integration with G/L ensures matched costs and revenues, current profit margins, and on-demand financial reporting capabilities.
When goods are posted for delivery, the planned revenue appears as adjusted revenue, based on comparing fully posted actual costs to planned costs. Unlike the previous SAP ERP system, SAP S/4HANA no longer requires explicit result determination for customer orders as revenue-generating cost objects.
In Margin Analysis, the Sales Orders Actuals report enables evaluation of adjusted revenue. This provides a comprehensive view of adjusted revenue, delivery costs, and deviations from the corresponding production order.
Using the Process Flow feature in the "Manage Sales Orders" app, you can verify the entire process through all steps and their corresponding accounting documents.
The figure below shows the process flow of the example sales order in this learning module.
All documents are accessible via double-click. Through the Outbound Delivery document, you can verify the process flow of the outbound delivery.
The process flow displays:
Double-clicking the material document icon allows you to verify both the material document and its corresponding accounting documents.
The figure above shows the material document for the goods issue within the outbound delivery. Double-clicking Process Flow reveals all corresponding accounting documents.
The figure below indicates that three accounting documents have been created.
The first financial accounting document (number 4900000034) contains the posting of the cost component split for the goods issue expenses.
This accounting document includes an offsetting entry, serving as an additional description to the results-relevant accounting document (balance sheet statement, profit and loss statement).
The subsequent accounting document (number 4900000033) contains the results-relevant posting, showing:
The third accounting document (number 10000067) demonstrates that the results analysis, previously known from SAP ERP, is now automated in SAP S/4HANA Public Cloud Edition. The planned revenue value is automatically posted as work in process (WIP), following the International Financial Reporting Standard (IFRS) accounting rules.
Margin Analysis enables evaluation of results throughout all phases of the sales order cycle. In the current make-to-order scenario phase, the following items are posted:
The calculation of key figures, such as Contribution Margin, is determined by the CDS-based report definition.
To create a billing document, data is copied from both the sales order and delivery document. The billing document can reference delivery items and order items (such as services) and serves several important functions:
When saving the billing document, the system automatically generates all required accounting documents. In accounting, the system:
Additional documents can be automatically generated for:
The invoice is created with reference to the delivery document. The figure below shows the delivery selection for invoice creation.
The billing type and billing date can be set manually or assigned based on system customization, as shown in:
When implementing the four-eyes principle, the invoice must be posted (released) in a separate step.
The system posts receivables to revenues and taxes in financial accounting within the invoice.
The sales order process flow indicates that:
The billing process resulted in an offsetting entry for the adjusted revenue, split into two partial amounts:
The final sales order report shows that:
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