Detailing universal parallel accounting

Objective

After completing this lesson, you will be able to outline parallel accounting capabilities in SAP S/4HANA

Universal Parallel Accounting (UPA)

In this lesson, we will explain how SAP S/4HANA supports parallel currencies, parallel valuations in a consolidated and non-consolidated view, and local fiscal year variants.

In SAP S/4HANA Cloud, public edition as well as the last releases of the other SAP S/4HANA modalities, controlling can take part in the end-to-end function of parallel accounting by supporting multiple ledgers for different accounting principles. The main supported scenarios include:

  • Parallel valuation for single entities: International companies need to follow both local and international accounting standards that affect inventory valuation, WIP calculation, asset values, and so on.
  • Parallel valuations for consolidated views: For steering purposes, customers require a group view where intercompany profits between trading partners are eliminated in real-time. Additionally, a business unit view might be required where transfers to another business unit are treated as an external sale.
  • Multicurrency capabilities: In internationally operating companies, financial and management reporting needs to be available in several currencies, including beyond local and group currency additional currencies such as functional currency.
  • Country fiscal year: Companies operating in certain countries require a fiscal year variant for their local financial reporting, which is deviating from their fiscal year variant for their central reporting on group level.

End-to-End Value Flow With Universal Parallel Accounting

The figure gives an overview of the main use cases in which Universal Parallel Accounting impacts Controlling.
  • Capitalization of Assets:
    • Costs are collected on a WBS element, at a certain point in time, the costs are capitalized.

    • When settling cost from WBS element to asset under construction, the values are calculated and posted per ledger.
    • Capitalization of assets is posted per ledger.

    Different values per ledger are evaluated at the time of settlement.

  • Actual costing according to local GAAP: In certain countries like Brazil, inventory needs to be valuated at actual cost according to the local accounting principles.
    • Controlling: knows all ledgers, for example actual cost rates are calculated per ledger
    • Production Order: Actual costing can be run per ledger.
    No additional mapping/configuration required.
  • Inventory valuation: Capitalization rules for inventory valuation can differ between different GAAPs.
    • Standard price can be calculated per ledger based on capitalization rules which apply to this GAAP.
    • Profitability Segment: During goods movements, the material price defined for each ledger will be used to valuate goods movement.

    Inventory values are correct at the time of the posting.

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