Understanding Product Costing: FG, SFG, and Overheads Simplified

In Valuation variant can there be one costing-sheet for FG and SFG and one for Material components maintained for each plant ? Short answer: ✅ YES — and this is actually a recommended best practiceYou can have: One costing sheet for FG & SFGAnother costing sheet for material components (RM / PM / semi inputs)Assigned … Continue reading Understanding Product Costing: FG, SFG, and Overheads Simplified

UPA and Transfer Price

How does UPA interact with transfer price and impact on COGM and COGS ChatGPT said: Excellent follow-up 👍 — this goes right to the heart of Universal Parallel Accounting (UPA): how it interacts with Transfer Pricing (TP) and how that impacts COGM (Cost of Goods Manufactured) and COGS (Cost of Goods Sold). 🔑 1. Transfer … Continue reading UPA and Transfer Price

How UPA impacts Product-Costing, Group Valuation, Transfer Price?

🔑 1. What is Universal Parallel Accounting (UPA)? UPA harmonizes valuation approaches (legal, group, profit-center) in one Universal Journal (ACDOCA). No separate ledgers (like old profit center ledger 8A) → all valuations live in ACDOCA with different valuation views. Parallel valuations are handled consistently across FI, CO, ML, and Asset Accounting. More Details here : … Continue reading How UPA impacts Product-Costing, Group Valuation, Transfer Price?

Sales Order Costing – Part 3 : config-Checklist

a step-by-step configuration checklist (blueprint) for Sales Order Costing in SAP. This sequence ensures you don’t miss dependencies and can move smoothly from CO setup → SD integration → execution. 🔹 Sales Order Costing Configuration Checklist Step 1: Define Costing Variants (Planned & Actual) T-code: OKKN SPRO Path:Controlling → Product Cost Controlling → Product Cost … Continue reading Sales Order Costing – Part 3 : config-Checklist

Sales Order Costing – Part2 : Configuration

setting up Sales Order Costing in SAP requires both Controlling (CO-PC, CO-PA) and SD integration. Below, I’ll list the SPRO Nodes / T-codes you need to configure so that Sales Order Costing (Product Cost by Sales Order) works smoothly. 🔹 Configuration Steps for Sales Order Costing 1. Activate Product Cost by Sales Order SPRO Path:Controlling … Continue reading Sales Order Costing – Part2 : Configuration

Sales Order Costing – Part1

SAP Sales Order Costing, which is a concept used in Sales Order Management + Controlling (CO) in SAP, primarily relevant when you’re dealing with make-to-order (MTO) or engineer-to-order (ETO) production scenarios. Let me break it down for you: 🔹 What is Sales Order Costing in SAP? Sales Order Costing is a cost management and profitability … Continue reading Sales Order Costing – Part1

Cost-Plus (Manufacturing), Sales-Minus (Commercial) Transfer Pricing Set-up in ECC Vs S/4HANA UPA

Part-1 : What is Universal Parallel Accounting (UPA) Part-2 : ECC (Parallel Valuation) Vs S/4HANA Parallel Valuation with UPA Part-3 : ECC Configuration Part-4 In this Blog, we have a look at a step-by-step IMG configuration flow, which will make it much easier to see where Cost-Plus (Manufacturing) and Sales-Minus (Commercial) Transfer Pricing are set … Continue reading Cost-Plus (Manufacturing), Sales-Minus (Commercial) Transfer Pricing Set-up in ECC Vs S/4HANA UPA

ECC Transfer Pricing Vs S/4HANA UPA Comparison

Part-1 on SAP S/4HANA Universal Parallel Accounting (UPA) In this blog, we look at side-by-side comparison table, with emphasis on how cost-plus (manufacturing markup) and sales-minus (commercial margin) scenarios are configured AreaECC Transfer Pricing (Classical ERP)S/4HANA UPA (2022+)Data ModelSeparate ledgers/tables: • Legal view in FI/CO • Group valuation in Material Ledger (ML) • Profit Center … Continue reading ECC Transfer Pricing Vs S/4HANA UPA Comparison

SAP configuration in Classical ECC Transfer pricing

Let’s go step by step. In Classical ECC (ERP 6.0, before UPA in S/4HANA), Transfer Pricing (parallel valuation) was already available, but the setup was complex and restricted. We essentially had to configure parallel valuations in CO and activate the Material Ledger (ML) to get it fully working. 🔑 1. Core Concept in ECC In … Continue reading SAP configuration in Classical ECC Transfer pricing

Internal Order vs Project WBS- Part5

Statistical Internal Order Vs Statistical Project WBS : Part1, Part2, Part3, Part4 Drawing a parallel between Statistical Internal Orders (IOs) and how the same concept applies in Work Breakdown Structures (WBS elements) in SAP Project System (PS) is the reason for this blog. Here’s the comparison and how to use them: 🔹 Background Statistical Internal … Continue reading Internal Order vs Project WBS- Part5

Licensing and Costs of DAR in SAP S/4HANA Explained

In SAP S/4HANA, DAR stands for Document and Reporting Compliance (Advanced Reporting) — but in the AI/ML & Finance context that we have been discussing (Inventory Provision, Classification), DAR usually refers to “Data Attribute Recommendation”. 🔹 DAR = Data Attribute Recommendation It is an SAP AI Business Service that helps automate and improve master data … Continue reading Licensing and Costs of DAR in SAP S/4HANA Explained

Predictive MRP (pMRP) in SAP S/4HANA for simulating Supply/Demand Scenarios : Useful in Inventory-Provision

Definition Predictive Material Requirements Planning (pMRP) is a simulation tool in SAP S/4HANA (introduced in 1909 release, enhanced in later versions) that helps planners simulate future supply and demand situations without impacting live production data. It’s not a replacement of classic MRP Live (MD01N), but rather a strategic, scenario-based planning tool. 🔑 Key Features Simulation-Based … Continue reading Predictive MRP (pMRP) in SAP S/4HANA for simulating Supply/Demand Scenarios : Useful in Inventory-Provision

SAP S/4HANA Inventory Slow-Moving/Non-Moving using AI/ML , with TCODES and FIORI Apps – Part 3

Let's map the AI features (explained in Part1 and Part2) into a ready-to-use “Inventory Provision Process Flow” in S/4HANA showing exact FIORI Apps and transactions for each AI Step Here’s a proposed ready-to-use AI-enabled Inventory Provision Process Flow for SAP S/4HANA 2023, with exact Fiori apps / backend transactions mapped for each stage. Let's structure … Continue reading SAP S/4HANA Inventory Slow-Moving/Non-Moving using AI/ML , with TCODES and FIORI Apps – Part 3

Internal Orders Vs Project System WBS – Part4

Concluding the series here's Part 4/4 where we look at (side-by-side) TCODES for Internal-Orders (IO) and Project-System -WBS. For link to previous Parts : Part-1, Part-2, Part-3 When shifting users from Internal Orders (IO) to Project System WBS, it helps a lot to provide a side-by-side mapping of T-codes/Fiori apps. Here’s a comparison table: Internal … Continue reading Internal Orders Vs Project System WBS – Part4

Internal Orders or Project-WBS ? – Part3

Here's link to PART1 https://mps4hana.com/2025/08/21/internal-order-or-project-wbs-part1/ where we looked at SAP NOTE and recommendation regarding usage of Project-WBS and Internal-Orders Link to PART2 : in which we looked at High-level Migration approach for clients using IO in Legacy-ECC and switching to Project-WBS in S/4HANA https://mps4hana.com/2025/08/21/internal-orders-or-project-wbs/ Now in part3 let's explore the practical challenges that needs to be … Continue reading Internal Orders or Project-WBS ? – Part3

SAP S/4HANA Inventory Slow-Moving/Non-Moving using AI/ML – Part 2

What AI Functionality is available in SAP S/4HANA for Inventory provision In SAP S/4HANA (2023 release) there isn’t a single packaged feature called “Inventory Provision with AI”, but there are multiple embedded Machine Learning and Business AI capabilities that can be configured to support or automate the inventory provision process (i.e., creating provisions for slow-moving, … Continue reading SAP S/4HANA Inventory Slow-Moving/Non-Moving using AI/ML – Part 2

Internal Orders or Project-WBS ? – Part2

Here's link to PART1 https://mps4hana.com/2025/08/21/internal-order-or-project-wbs-part1/ And now let's look at High-level plan and activities for a scenario /situation : where we require migration steps from Legacy (SAP ECC) to New system (SAP S/4HANA) in which Client was using Internal Orders in ECC and going-forward Client used Project-WBS, instead of Internal Order. This scenario is common … Continue reading Internal Orders or Project-WBS ? – Part2

Internal Order or Project WBS- Part1

Many Clients Teams who are implementing / migrating to SAP S/4HANA, ask this Key Question : Should we continue using Internal-Order or adopt Light-Project-WBS ? Executive Summary : Type of Internal OrderDescriptionRecommendation / Impact in S/4HANASimple Account AssignmentsUsed as default account assignment (e.g., OKB9) or credit object in costing sheet; also includes statistical IOs.No change … Continue reading Internal Order or Project WBS- Part1

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SAP S/4HANA Inventory Slow-Moving/Non-Moving using AI/ML – Part 1

AI in SAP S/4HANA (2023 & Beyond) 1. SAP S/4HANA Cloud Private Edition 2023 FPS 03 Key AI/automation enhancements in finance and operations include: AI-Assisted Journal Uploads: Generative AI validates and classifies journal entries, reducing manual effort and improving accuracy. Predictive Labor Demand Planning: Uses AI to forecast labor needs for warehouse processes, boosting productivity … Continue reading SAP S/4HANA Inventory Slow-Moving/Non-Moving using AI/ML – Part 1

SAP Intelligent Clinical Supply Management (SAP ICSM)

SAP ICSM SAP Intelligent Clinical Supply Management utilizes the capabilities of SAP S/4HANA software in conjunction with the SAP Business Technology Platform (BTP) to automate and optimize the clinical trial supply process. It also elevates the transparency of clinical supplies on a global scale. This sophisticated solution effectively tackles the requirements of blinding and randomization … Continue reading SAP Intelligent Clinical Supply Management (SAP ICSM)

SAP PaPM Vs COPA Margin-Analysis Vs SAP PCM

What is SAP PaPM ? SAP PaPM refers to "SAP Profitability and Performance Management." This is a solution provided by SAP, a German multinational software corporation, known for its enterprise software solutions. SAP PaPM is designed to help organizations analyze and optimize their profitability and performance. It allows businesses to gain insights into their financial … Continue reading SAP PaPM Vs COPA Margin-Analysis Vs SAP PCM

Alteryx Designer & Alteryx Intelligence Suite

Please note that developments or modifications may have occurred since last-update, so it is recommended to verify the most recent information from official channels. Alteryx is well-known for its data preparation and analytics capabilities, offering a platform that empowers users to blend, clean, and analyze data without extensive coding requirements. While Alteryx does include some … Continue reading Alteryx Designer & Alteryx Intelligence Suite

Market Leaders in Machine Learning (ML) space

Note : This blog is NOT an attempt to explain the ML platforms. This content will provide a good foundation to start on the Topic and then one deep-dive to gather more details and insights about each market leader. If you are looking for the considerations and/or parameters for choosing between SAP and dedicated platforms, … Continue reading Market Leaders in Machine Learning (ML) space

LEARNING RPA

Learning Robotic Process Automation (RPA) involves understanding the basic concepts, tools, and technologies associated with automating repetitive tasks and processes. Here's a step-by-step guide to help you learn RPA: 1. Understand the Basics: Familiarize yourself with the fundamental concepts of RPA, including what it is, how it works, and its benefits in business processes. Learn … Continue reading LEARNING RPA

Different Types of RPA

Robotic Process Automation (RPA) can be categorized into different types based on the complexity of the tasks being automated, the level of human intervention, and the scope of automation. Here are the main types of RPA:1. Attended RPA:Description: Attended RPA involves robots working alongside human employees to enhance their productivity. These bots operate on employees' … Continue reading Different Types of RPA

Robotic Process Automation (RPA), Artificial Intelligence (AI), and Machine Learning (ML)

My Point of View & Executive Summary : Robotic Process Automation (RPA), Artificial Intelligence (AI), and Machine Learning (ML) are related technologies, but they serve different purposes and have distinct characteristics. Understanding the "place & usage" of these technologies Artificial Intelligence is Futuristic (self-learning, evolving), closest to Human Intelligence and real-time Interactions. Widely used in … Continue reading Robotic Process Automation (RPA), Artificial Intelligence (AI), and Machine Learning (ML)

Generative AI usecase in intercompany transaction

Generative AI can be applied in SAP Business processes to optimize intercompany transactions, which involve financial exchanges between different entities within the same parent company. Automating and improving intercompany transactions is crucial for maintaining accuracy, efficiency, and compliance. Here's how generative AI can be used in this context: Use Case: Optimizing Intercompany Transactions with Generative … Continue reading Generative AI usecase in intercompany transaction

Implementing Intelligent Inventory Management Solutions

Implementing intelligent inventory management solutions typically involves a combination of software, hardware, and technologies to leverage the power of data analytics, machine learning, and automation. Here's a breakdown of the types of products and technologies that are often required for intelligent inventory management: 1. Enterprise Resource Planning (ERP) System: Example: SAP S/4HANA, Oracle ERP Cloud, … Continue reading Implementing Intelligent Inventory Management Solutions

SAP S/4HANA intelligent Inventory Management

S/4HANA integrates machine learning algorithms to enable intelligent inventory management. ML algorithms can predict demand patterns, optimize reorder points, and automate inventory replenishment processes based on historical data and real-time market conditions. Here's how S/4HANA integrates machine learning algorithms into inventory management, with specific examples: 1. Demand Pattern Prediction: Example: S/4HANA can analyze historical sales … Continue reading SAP S/4HANA intelligent Inventory Management

Machine Learning in SAP Financial

Integrating Machine Learning (ML) into SAP Financial Accounting can revolutionize the way businesses handle financial data, make decisions, and ensure compliance. Here are several ways ML can be applied in SAP Financial Accounting: **1. Automated Invoice Processing: Invoice Data Extraction: ML algorithms can be used to automatically extract data from invoices, such as invoice numbers, … Continue reading Machine Learning in SAP Financial

Artificial Intelligence (AI), Machine Learning(ML) & Business Benefits of ML in SAP S/4HANA Inventory Management

Hi, Starting a new series : Machine Learning in S/4HANA. This is first of the Blogs. Hope you enjoy the learning as much as I intend to do from the learning. So let's start with the basics : What is AI? What is Machine Learning? Artificial Intelligence (AI) & Machine Learning (ML) Artificial Intelligence (AI) … Continue reading Artificial Intelligence (AI), Machine Learning(ML) & Business Benefits of ML in SAP S/4HANA Inventory Management

Protected: Internal Order : Budget profile and Activate Availability Control

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BSEG And ACDOCA

The Key points to remember BSEG will hold information for OPEN Items ACDOCA usage is for Accounting Principle Controlling Documents - CO Internal Postings Document Splitting For Ledger specific SINGLE SOURCE OF TRUTH : It contains fields such that no recon/separate Sub-ledger required : Asset, Material Ledger, Controlling, Profitability Analysis, GL ACODCA : Single Source … Continue reading BSEG And ACDOCA

Certi – Life Sciences Foundation

Protected: SAP Certified Application Associate – Management Accounting (CO) with SAP ERP 6.0 EHP4

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Profit-Center Accounting in S/4HANA

2425255 - Profit Center Accounting in the universal journal in SAP S/4HANA, on-premise edition Classical Profit-Center Accounting Vs S/4HANA Profit-Center Accounting You want to know how Profit Center Accounting (PCA) is mapped in the context of SAP S/4HANA and to what extent classic Profit Center Accounting can be used in parallel with SAP S/4HANA. How long … Continue reading Profit-Center Accounting in S/4HANA

SAP S/4HANA and Level-6 BPML

What shoud we choose ? SAP Best Practice Business Process Master List (BPML)’s Levels (L1-L6) SAP S/4HANA Line-of-Business’s Business Area's List of Business-Processess Today afternoon, one colleague called me as he desperately wanted the definitions of levels (L1-L6) in “Business Process Master List” (BPML). Being in SAP world for some time now, my immediate … Continue reading SAP S/4HANA and Level-6 BPML

SAP S/4HANA 1511 – Is It MORE about the ROADMAP to NEAR FUTURE ?

The wait is finally over….. SAP S/4HANA 1511 is released At high-level the functional benefits from SAP S/4HANA 1511 release look promising and as anticipated… . http://scn.sap.com/people/monika.patel/blog/2015/11/13/sap-s4hana-1511 And while the “Simplification List” is officially awaited -(as this blog is being written)– https://uacp.hana.ondemand.com/http.svc/rc/PRODUCTION/pdfa4322f56824ae221e10000000a4450e5/1511%20000/en-US/SIMPL_OP1511.pdf However based on available content on help.sap.com and SAP NOTES (Release Note, Restrictions … Continue reading SAP S/4HANA 1511 – Is It MORE about the ROADMAP to NEAR FUTURE ?

Business Benefits (Use-Case) of SAP S/4 HANA

https://blogs.sap.com/2015/10/13/business-benefits-use-case-of-sap-s4-hana/ Benefits of S4 HANA ? While one might be quick in identifying the “technical” differences and principles of SAP S/4 HANA, how do one tackle the question –> Does SAP S/4 HANA offer any tangible and immediate Business Benefits to my business? In this blog, I try to answer this question from … Continue reading Business Benefits (Use-Case) of SAP S/4 HANA

SAP S/4HANA 1511 : Functional View

https://blogs.sap.com/2015/11/13/sap-s4hana-1511/ Diwali 2015 came with a “BIG DHAMAKA” – A BANG!!! The much-awaited SAP S/4HANA On-Premise edition 1511 is finally available to ascertain. While the NEWS and EXCITEMENT is yet to sink-in, the details yet to be explored and the nitty-gritty and the restrictions to be reconnoitered, in this blog, I would like to focus on … Continue reading SAP S/4HANA 1511 : Functional View

AP S/4HANA 1511 Initial Release, Feature Pack 01&02 : What’s NEW & What’s NOT !! Advantage S4HANA 1610

https://blogs.sap.com/2015/11/13/sap-s4hana-1511-initial-release-feature-pack-0102-whats-new-whats-not-advantage-s4hana-1610/ Added : 20160928 An outlook on 1610 & prediction about overall S/4HANA Landscape evolve is shared in SAP S/4HANA Enterprise Management (Digital CORE) : Current Landscape & Evolution HeadsUP : SAP S/4HANA Enterprise Management : OP 1610 Outlook SAP S/4HANA 1511 – FPS02 (released MAY 2016) Updates of this release added to … Continue reading AP S/4HANA 1511 Initial Release, Feature Pack 01&02 : What’s NEW & What’s NOT !! Advantage S4HANA 1610

SAP S/4HANA 1511 : Key Principles, Implementation Impact & Solution-Landscape

https://blogs.sap.com/2015/12/10/sap-s4hana-1511-key-principles-implementation-impact-solution-landscape/ In one of my earlier blogs I had shared a document that stated “what is SAP S/4HANA 1511 & WHAT it is NOT !!!” http://scn.sap.com/docs/DOC-68846 Continuing with the study and analysis of innovations in SAP S/4HANA 1511 MMO – Materials Management & Operations ( Simple !??! Logistics) area, I share below my … Continue reading SAP S/4HANA 1511 : Key Principles, Implementation Impact & Solution-Landscape

Remove the OLD, MAKE place for THE NEW – 2016 !!!

https://blogs.sap.com/2016/01/01/remove-the-old-make-place-for-the-new/ Happy New Year !!! Wishing you all fantastic 2016…. !!! As we all do (in one way or other), either at “eve of last day of old year” OR “NEW Beginning at first ray of NEW Year” – we all do take stock-of-things, identify and remove the old and unwanted, thus make space of the … Continue reading Remove the OLD, MAKE place for THE NEW – 2016 !!!

SAP S/4HANA Enterprise Management (Digital CORE) : Current Landscape & Evolution

https://blogs.sap.com/2016/09/27/sap-s4hana-enterprise-management-digital-core-current-landscape-evolution/ After aligning your business priorities to current and upcoming innovations within SAP S/4HANA, it is important to also consider how line-of-business processes from “ECC past” are currently covered between SAP S/4HANA and SAP Cloud Solutions, forming a modern landscape that is agile, integrated and supporting new business processes only made possible by being … Continue reading SAP S/4HANA Enterprise Management (Digital CORE) : Current Landscape & Evolution

HeadsUP : SAP S/4HANA Enterprise Management : OP 1610 Outlook

https://blogs.sap.com/2016/09/27/headsup-sap-s4hana-enterprise-management-op-1610-outlook/ The journey started in November 2015, with release SAP S/4HANA Enterprise Management 1511. The 1st “feature pack” was released in 201602. as FPS01 Following the quarterly release strategy, soon the 2nd “feature pack” was released in 201605. – FPS02 While we expect the 3rd Feature Pack, some time soon, end of Aug ( in 201608) as FPS03, but … Continue reading HeadsUP : SAP S/4HANA Enterprise Management : OP 1610 Outlook

SAP Financial Closing Cockpit in SAP S/4HANA : Status & Roadmap

Highlights of today;s Enablement Session : SAP Financial Closing Cockpit in SAP S/4HANA: Status and Roadmap FCC – Financial Closing Cockpit (SAP FCc) is primarily for Entity Close ; SAP BPC is Group Planning and Consolidation SAP FCc is planned to be part of SAP S/4HANA 1709 (as opposed to being an … Continue reading SAP Financial Closing Cockpit in SAP S/4HANA : Status & Roadmap

SAP S/4HANA 1709 – sneak preview

https://blogs.sap.com/2017/07/26/sap-s4hana-1709-sneak-preview/ SAP S/4HANA Enterprise Management OnPremise version 1709 is awaited with eager eyes. Reason – It is promising version with multiple changes and NEW innovations across Line of business (LOB)s. With 1511 and 1610 versions of S/4HANA Enterprise Management, building blocks were laid down, with some CORE data-model changes, FIORI Analytical Applications, VDM’s starting … Continue reading SAP S/4HANA 1709 – sneak preview

Data-Migration in S/4HANA On-Premise – LSMW ? SAP RDM Content? Migration Cockpit ? SI Tools

Is LSMW available / valid in SAP S/4HANA On- Premise ? I have received this particular QUESTION a number of times and hence an attempt to answer it thru this blog. Well First things first : Q: What is LSMW & what’s it’s use ? A: The Legacy System Migration Workbench (LSMW) is an … Continue reading Data-Migration in S/4HANA On-Premise – LSMW ? SAP RDM Content? Migration Cockpit ? SI Tools

S/4HANA – Business Partner

S/4HANA – Business Partner, BP to Customer, BP to Vendor, BP to CVI Greetings, As S/4HANA gains popularity, still, there are many questions related to basic mendatory features in S/4HANA. Especially for people who have not worked earlier on these MENDATORY feature of S/4 have many questions related to feature. One of them is Business … Continue reading S/4HANA – Business Partner

Should I use SAP S/4HANA Readiness Check or Simplification-item Check ?

https://blogs.sap.com/2018/07/18/should-i-use-sap-s4hana-readiness-check-or-simplification-item-check/ Hi, The awareness and interest in Digital Transformation is slowing picking up. I experienced that the Client as well as Support and Implementation partners want to know more about it. I have teams and clients enquiring – I want to implement S/4HANA. What do you suggest? What they want to know and check – where to start … Continue reading Should I use SAP S/4HANA Readiness Check or Simplification-item Check ?