Detailing universal parallel accounting


After completing this lesson, you will be able to:

  • Outline parallel accounting capabilities in SAP S/4HANA

Universal parallel accounting

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.

The main use cases where parallel accounting impacts controlling are illustrated below:

  • 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 and actual cost rates are calculated by ledger.
    • 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.
    • 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.

Log in to track your progress & complete quizzes