Name: Introducing Parallel Accounting in Production Accounting - SAP S/4HANA Finance
Uploaded: 2021-11-9
Duration: 402 s
Description: In this microlearning, you'll be introduced to parallel accounting in production accounting in SAP S/4HANA Finance. You will learn how different material prices in different ledgers work.

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<div><div>In this microlearning, you'll be introduced to parallel accounting in production accounting in SAP S/4HANA Finance. You will learn how different material prices in different ledgers work. </div></div>

Introducing Parallel Accounting in Production Accounting - SAP S/4HANA Finance

Hello and welcome to this micro learning video for SAP S4HANA Cloud for Finance. My name is Keir Peters. I am a user assistance developer based in Galway, Ireland. This video will help you if you are set up for parallel accounting in production accounting and would like to know how different material prices in different ledgers works. With event-based production cost posting, you can post the costs for production orders and process orders orders to separate ledgers that have different accounting principles assigned. Let's say you have two different costing variants in different ledgers and you would like to maintain different material cost estimates in those different ledgers. Let's start with the display material cost estimates app. In this demo we have two costing variants in different ledgers. The first is P00L and is specifically for ledger 0L. We have another costing variant P02L. With this costing variant we will make the valuation with ledger 2L. If we compare both ledgers we can see that the total value is different. This is because there are different prices assigned to ledger 0L and 2L for component SG123 which will give a different result. The overhead costs are also different due to the costing run for the material in the different ledgers. If we check the mind material valuations app we will see that the material in ledger 0L and 2L have different inventory prices and total values. Now let's go to the Create Production Order app. Fill in your material number, production plant, and order type. Under General, input your total quantity. Under Scheduling, choose current date. Go to the Control tab and enter RSEBW and the RA key. Parallel accounting is only implemented with the event-based solution, so your order can only be an event-based order. Release your order and save. Go to the Postcode Movement app and enter your origin number. You have three components here to verify. Here I will deliberately alter the quantity to later demonstrate input quantity variance. I input the batch numbers to require materials and then post. Now let's go to the Event Based Production Costs app. I'll first check the order number in the Ledger 0L. Input your order number. We can see that the total actual cost equals the WIP. Now let's check Ledger 2L. We can see that the total actual costs are different to Ledger 0L. This is because we have different material prices of input component SG123, so the WIP will be different. Let's go to the Event-Based Order Costs app to see where the difference is coming from. On the left we can see ledger 0L and on the right we can see 2L. Here you can see the total actual cost for the material. Different ledgers hold different information. For example each ledger contains different actual costs which affect the WIP value. Now let's go to the Confirm Production Operation app. your origin number and operation number and choose go. You will see a confirmation of your operation. Now let's check the reports in both lectures in the Event-Based Production Costs app. You will see that your total actual cost on the WIP value has increased for both lectures after the confirmation. Let's go back to the Post Goods Movement app. Choose Goods Receipt and enter your order number. After the material documents are posted, your order is finally delivered. Since the planned output quantities are delivered, it's a finely delivered order. If we check the reports in both ledgers, we can see that the total actual cost is zero because the order is balanced. The total actual cost on the WIP should be zero. We can see that the total cost variance has increased, and in different ledgers they have different values. If we navigate to the event-based order class app, we can see where the variance comes from in the different ledgers. We can see that the biggest variance comes from the second line. In ledger 0L and 2L the cost variance is different. This is because we changed the input quantity of the material, which have different prices in different ledgers. So, in different ledgers the result is different. You can find more helpful information on the SAP Help Portal.