Multi Currencies and Transfer Prices
in Universal Journal
Michael Conrad, SAP SE
May 27 2016
Product Version / LoB:
SAP S/4HANA Finance, on-premise edition 1605
SAP S/4HANA, on-premise edition 1610 / LoB Finance
E2E Solution/Solution Capability:
Financial Accounting and Close
Part 1:
Multi Currencies in Universal Journal
Objectives
At the end of this lesson, you will know:
There are new freely defined currencies available in the
universal journal.
The new currencies are filled real-time in all operational
postings by generic document wise currency conversion at
actual exchange rate.
There are selected processes (Open Item Management, Co
and GL Allocation), which calculate in all configured
currencies.
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Customer
3
Available Currencies in ERP
FI (BSEG)
local Crcy
2nd local Crcy
CO (COEP)
local (Obj) Crcy
CO Area Crcy
ML
local Crcy
2nd ML Crcy
3rd local Crcy
In ERP we used to have
 3 local currencies in FI (including NewGL)
 2 currencies in CO
 3 currencies in Material Ledger
3rd ML Crcy
© 2016 SAP SE or an SAP affiliate company. All rights reserved.
Customer
4
More Currency Flexibility Universal Journal of
S/4H
In S/4H Finance OP 1605 and S/4H OP 1610 Universal Journal supports
additional new parallel currencies





You can configure per company code and ledger 2 fix currencies and up to 8 freely defined currencies
Customer can configured new currency types in customer namespace.
Freely defined currencies for parallel G/L ledgers do not depend on leading ledger
Real-time currency conversion in Accounting Interface with balance zero per document for all currencies
The freely defined currencies are integrated in several business processes (e.g. Open Item
Management), for some specific business processes differences might occur („Clearing effects“).
Universal Journal
(ACDOCA)
Local Crcy
Global Crcy
1st free
Crcy
© 2016 SAP SE or an SAP affiliate company. All rights reserved.
2nd free
Crcy
3rd free
Crcy
4th free
Crcy
5th free
Crcy
6th free
Crcy
7th free
Crcy
8th free
Crcy
Customer
5
Currency Fields of ACDOCA
Universal Journal
Entry (ACDOCA)
Local Crcy
Global Crcy
1st free
Crcy
2nd free
Crcy
3rd free
Crcy
4th free
Crcy
5th free
Crcy
6th free
Crcy
7th free
Crcy
8th free
Crcy
Local Currency
 Currency type 10 *
 ACDOCA fieldname HSL
Global Currency
 Currency type of controlling area *
 ACDOCA fieldname KSL
Freely Defined Currencies 1 – 8
 You can configure any currency type *
 There is no dependency on currency types of the leading ledger
 ACDOCA fieldnames OSL, VSL, BSL, CSL, DSL, ESL, FSL, GSL
* If you activate parallel valuations with tranferprices, then there are additional rules/constraints valid.
© 2016 SAP SE or an SAP affiliate company. All rights reserved.
Customer
6
More Currencies in Universal Journal
Compatibility
FI (BSEG)
local Crcy
2nd local Crcy
CO (COEP)
Local (Obj) Crcy
CO Area Crcy
ML
local Crcy
2nd ML Crcy
3rd local Crcy
Mapping of Currencies for
 Compatibility with existing FI / CO /
ML functionality
 Migration of transaction data
3rd ML Crcy
Mapping examples
Universal Journal
(ACDOCA)
Local Crcy
Global Crcy
1st free
Crcy
© 2016 SAP SE or an SAP affiliate company. All rights reserved.
2nd free
Crcy
3rd free
Crcy
4th free
Crcy
5th free
Crcy
6th free
Crcy
7th free
Crcy
8th free
Crcy
Customer
7
Configuration of Ledger and Currencies
Viewcluster FINSVC_LEDGER
 Tx FINSC_LEDGER
Contains Maintenance Views for





Definition of Currency Types
Currency Conversion Settings
Ledger Master data
Company Code Assignment to Ledgers
Used Currency Type per Ledger / Company
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Customer
8
Currency Types
List of Currency Types is now extensible by customer defined currency types
 SAP namespace 0* - 9*
 Customer namespace Y* Z*
 Settings Def. Level defines, whether currency conversion settings are maintained once globally or
specifically per company code
 You can define your own descriptions of the currencies types in customer namespace, which is displayed in
UIs as field label.
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Customer
9
Currency Conversion Settings
Depending on the definition level (global / per company code) you use the corresponding
views for the conversion settings:





Currency – only for Customer defined Currency Type
Source Currency Type (any other currency type can be used as source)
Exchange Rate Type
Translation Date Type
Realtime conversion – operation postings in the period are converted if realtime conversion is set.
Otherwise the currency can be filled with foreign currency valuation in period end close.
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Customer 10
Ledger
Ledger master data
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Customer 11
Company Code Settings I
 Assignment of Company Codes to Ledger
 Local Currency is always Currency Type 10 *
 Global Currency is always currency type of controlling area *
(It is empty, if the company code is not assigned to a controlling area.)
 Freely defined Currency 1 – 8 can be configured here.
* If you activate parallel valuations with tranferprices, then there are additional rules/constraints valid.
© 2016 SAP SE or an SAP affiliate company. All rights reserved.
Customer 12
Company Code Setting II




Definition of Fiscal Year Variant
Posting Variant
Flag whether Parallel Accounting with Ledger or GL Accounts approach is used
Definition of the 3 currencies, which are relevant for BSEG (former T001A setting).
You can choose from the 10 configured currencies for ACDOCA.
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Customer 13
Company Settings Detail Screen I
Details Screen shows configured currencies and their source for currency conversion
 You can add more currencies with button
 You can see currency conversion details with buttons
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or
Customer 14
Company Settings Detail Screen III
Details screen with currency conversion details
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Customer 15
Currency Conversion for new Currencies types




Realtime currency conversion for all currency types is possible
Balance zero per document guaranteed
CO area currency is now converted for all items (also non cost elements)
Processes with „clearing-like logic“ ( open item clearing, allocations, …. ) require
that the amounts are selected from historical data. This is not yet supported for all
processes. As fallback the amounts are converted with the current exchange rate.
In such a case the process might leave a leftover, caused by rounding differences
or different exchange rates.
– „Clearing-like logic“ for new currencies is available for:
o Open Item Management FI-AR, FI-AP, FI-GL
o CO Allocations and GL Allocations
– „Clearing-like logic“ for new currencies is not yet available for:
o Fixed Asset processes like depreciation
o ML processes
o CO settlement, reposting
o Regrouping AP/AR
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Customer 16
Company Settings Details Screen: Display of
Currency Type Integration into FI / CO Applications
3 FI Currencies (BSEG) are marked in the header of the box
2 CO Currencies
Currency
conversion
with balance zero per
document
3 FI-AA Currencies
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3 ML Currencies
Customer 17
Using New Currencies
New Installations
 You can configure the new currencies in the universal journal.
 Please carefully consider, which currencies are integrated with BSEG, FI-AA, CO,
ML, FI-AA, and which is generically converted.
Migration of Customer Installations




Migration from ERP or SFIN 1503
Old currency configuration is migrated without changes
S/4H Migration is not able to introduce new currencies.
Currency configuration of installation with Transfer Prices active makes use of the
new currency fields (see EKT for Transfer Prices or details).
 Usage of additional currencies is not possible without a SLO project
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Customer 18
End of Part 1
Questions?
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Customer 19
Part 2:
Transfer Prices
Objectives Slide
At the end of this lesson, you will be able to:
 Outline the changes in customizing and data model for the
transfer price solution in S/4 HANA Finance
 Outline how historic data from ERP are migrated into
universal journal
 Explain splitting of COGS in Transfer Price Environment
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Customer 21
Agenda
 Changes in customizing and data model for transfer prices
 Migration of historic data from ERP with active transfer prices
 Splitting of COGS in Transfer Price Environment
© 2016 SAP SE or an SAP affiliate company. All rights reserved.
Customer 22
Transfer Price Solution in ERP
Multinational groups need to report profitability for the group in total and for
the individual units based on the operational flows.
Up to three parallel valuation methods for legal, group and profit center
valuation provide different perspectives on the value chain within a group:
• Legal perspective looks at the business transactions
from the point of view of the affiliated companies including markups
• Profit center valuation treats profit centers as if they were
independent companies using e.g. negotiated prices
• Group valuation looks at the whole group eliminating markups
© 2016 SAP SE or an SAP affiliate company. All rights reserved.
Customer 23
Transfer Prices –
Parallel Valuations Based on Different Views
America
Europe
Asia
D
E
PrCtr Product 1
USA
F
J
MEX
Group
PrCtr Product 2
BRA
•
Legal view focuses on inter company pricing agreements
• Group view focuses on eliminating intercompany profits
• Profit Center view focuses on agreed management prices
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Customer 24
Transfer Prices in ERP
The update of parallel valuation in ERP in the different components is
extremely heterogeneous:
• GL uses currency fields for 2nd and 3rd currency
• CO uses parallel versions for actual date where the version 0
contains a full value and the parallel actual versions contain
the delta compared to version 0
• Material Ledger uses currency types
• Fixed Asset Accounting uses different depreciation areas
…
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Customer 25
Short Comings with Transfer Prices in ERP
The ERP solution for Transfer Prices had short comings:
 Complexity because of heterogeneous treatment in the different
components
 Especially the delta version logic in CO was hard to understand
 No clear separation of management valuations
 Insufficient currency flexibility
 Intercompany services not covered
The complexity of the given ERP solution forced many customers to
implement their own solution e.g. with SAP BW
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Customer 26
Transfer Prices in S/4 HANA Finance 1605
We provide 2 Options:
Parallel valuations updated in parallel single-valuation ledgers
 Use separate ledger for each valuation
 transparent separation of postings and reporting of financial results
based on the various regulations
Parallel valuations updated in a multi-valuation ledger
 use separate amount columns in the same ledger
 reduce memory footprint
 reduce effort and time for closing activities
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Customer 27
Architecture for parallel transfer price valuations
Configuration with “Currency & Valuation Types” in Universal
Journal Ledger
Alternative Options:
“Parallel single-valuation
Ledgers”
•
•
•
Valuation is assigned to Ledger
Option for new installations
Easier authorization concept
Ledger
BUKRS
CURTP
(local)
CURTP
(global)
CURTP1
CURTP2
CURTP3
CURTP4
0L
1000
10
30
Legal View
GR
1000
11
31
Group View
PC
1000
12
32
Profit Center View
CURTP5
CURTP6
CURTP7
CURTP8
“Multi-valuation Ledger”
•
•
•
•
Currencytypes of all
Valuation can be assigned
No separate close needed
Memory footprint optimized
Default for Migration
Ledger
BUKRS
CURTP
(local)
CURTP
(global)
CURTP1
CURTP2
CURTP3
CURTP4
0L
1000
10
30
11
31
12
32
Legal View
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Group View
CURTP5
CURTP6
CURTP7
CURTP8
Profit Center View
Customer 28
Configuration of Universal Journal for Transfer
Prices
System with Transfer Pricing
 Currency and Valuation Profil is defined
 Transferprices is active for controlling area
-> then specific rules hold for the currency settings of the Universal Journal
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Customer 29
Currency Types for Transfer Price Valuations
 Each currency types is assigned to a valuation view
 Currency types in group or prctr valuation has an assingment to the corresposing
legal currency type.
 The last digit does not represent the valuation (especially not for currency types in
customer namespace)
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Customer 30
Multiple Valuation Ledger vs Single Valuation
Ledger
Multiple Valuation Ledger
 no valuation view assigned to the ledger
 currency types of all valuations can be used in this type of ledger
Single Valuation Ledger
 A specific valuation is assigned to the ledger
 Only currency types of this valuation view can be used in this ledger
© 2016 SAP SE or an SAP affiliate company. All rights reserved.
Customer 31
Currency Fields of ACDOCA – Transfer Prices
Rules
Universal Journal
Entry (ACDOCA)
Local Crcy
Global Crcy
1st free
Crcy
2nd free
Crcy
3rd free
Crcy
4th free
Crcy
5th free
Crcy
6th free
Crcy
7th free
Crcy
8th free
Crcy
Local Currency
 Currency type 10 in multiple valuation ledgers or in ledger with legal valuation
 Currency type 11 or 12 in ledgers with group or profit centre valuation
 ACDOCA fieldname HSL
Global Currency
 Currency type of controlling area in legal valuation in multiple valuation ledgers
 Currency type of controlling area in valuation of the ledger in single valuation
ledgers
 ACDOCA fieldname KSL
Freely Defined Currencies 1 – 8
 Any Currency type can be configured in multiple valuation ledgers
 Currency type with valutation of the ledger in single valuation ledgers.
© 2016
ACDOCA
fieldnames OSL, VSL, BSL, CSL, DSL, ESL, FSL, GSL
SAP SE or an SAP affiliate company. All rights reserved.
Customer 32
Currency Types in a Multipe Valuation Ledger
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Customer 33
Currency Types in a Single Valuation Ledger
 Only currency types in profit center valuation can be used in this ledger
 Local and global currency are also in profit center valuation
© 2016 SAP SE or an SAP affiliate company. All rights reserved.
Customer 34
How to Provide Compatibility to Classic CO World
In CO the transfer price solution had been based on additional CO actual
versions.
In universal journal the data model had been simplified and harmonized.
The ledger approach is used in universal journal for GL and all sub ledger.
All new functionality is built on the new data model.
However several historical CO transactions still expect data in the old
version format.
The CO compatibility views provide the CO data according old version
format (on the fly calculated).
So for compatibility reasons a mapping of CO versions to ledgers is required.
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Customer 35
Configuration Details – Assign CO Versions to
Ledgers
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Customer 36
Configuration – Example One Ledger
Table FINSC_LD_CMP
determines which currency
types are stored in which
amount fields in table
ACDOCA
FINSC_LD_CMP
LD
CC
CURTPH
CURTPK
CURTPO
CURTPV
CURTPB
CURTPC
0L
0001
10 (all)
30 (all)
31 (all)
32 (ML CO)
11 (CO)
12 (CO)
L1
0001
10 (all)
30 (all)
31 (all)
CURTPD
CURTPE
CURTPF
CURTPG
2. The currency types that CO
requires for all three versions
must be stored in table
ACDOCA in ledger 0L.
FINSC_VERSN_LD
COArea
Versin
Ledger
0001
000
0L
0001
0GR
0L
0001
0PC
0L
1. Read access to CO
actual data (=postings) will
read the data from this
ledger (from table
ACODCA). In this example
from ledger 0L for all three
CO versions: One record in
table ACDOCA stores the
data for three COEP
records!
© 2016 SAP SE or an SAP affiliate company. All rights reserved.
3. Optional: Additional ledgers
may exist. They are not
evaluated by read-access by
CO; so they do not need to
contain all currency types that
CO would require.
Customer 37
Configuration – Example 2 Ledgers
Table FINSC_LD_CMP
determines which currency
types are stored in which
amount fields in table
ACDOCA
FINSC_LD_CMP
LD
CC
CURTPH
CURTPK
CURTPO
CURTPV
CURTPB
0L
0001
10 (all)
30 (all)
31 (all)
32 (all)
11 (CO)
L2
0001
12 (all)
32 (all)
CURTPC
CURTPD
CURTPE
CURTPF
CURTPG
2. The currency types that CO
requires for versions 000 and
0GR (here legal and group
valuation) must be stored in
table ACDOCA in ledger 0L.
FINSC_VERSN_LD
COArea
Version
Ledger
0001
000
0L
0001
0GR
0L
0001
0PC
L2
1. In this example, read
access to CO data will
read the data from ledger
0L for versions 000 (legal
valuation) and version
0GR (group valuation).
The data for the other
version 0PC (PrCtr
valuation) will be read from
ledger L2.
© 2016 SAP SE or an SAP affiliate company. All rights reserved.
3. The second ledger L2 has
valuation view = PrCtr valuation in
table FINSC_LEDGER. The
currency types that CO requires
for version 0PC must be stored in
table ACDOCA in ledger L2.
Customer 38
Agenda
 Changes in customizing and data model for transfer prices
 Migration of historic data from ERP with active transfer prices
 Splitting of COGS in Transfer Price Environment
© 2016 SAP SE or an SAP affiliate company. All rights reserved.
Customer 39
Transfer Prices – Migration to S/4 HANA Finance
•
Migration from ERP to S/4 HANA provides transformation of customizing
and transactional data into new financial data model.
•
Compatibility Views
• In order to be non-disruptive the existing compatibility views (e.g. COSP,
COSS, COEP, COVP) had been enhanced
• They allow a non-disruptive conversion and a stepwise adaptation
towards new world the compatibility views provide on the fly
transformation in between old world and new data model.
 See more details in EKT slides for Migration
© 2016 SAP SE or an SAP affiliate company. All rights reserved.
Customer 40
Agenda
 Changes in customizing and data model for transfer prices
 Migration of historic data from ERP with active transfer prices
 Splitting of COGS in Transfer Price Environment
© 2016 SAP SE or an SAP affiliate company. All rights reserved.
Customer 41
Cost of goods sold split in parallel valuation views

Trigger for COGS split is delivery document with respect to sales order

Posting of goods delivery has to support the splitting of the COGS in local,
group and/or profit center valuation. The basis for the COGS splitting shall
be the related sales order item cost estimate or released material cost
estimate of the corresponding valuation view.

If no cost estimate exists for the related valuation view, no COGS split will
be created for the valuation view !
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Customer 42
Splitting of COGS in Transfer Price Environment
Separate Split Schemes can be defined for separate cost component structures
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Customer 43
Split Scheme Assignment
A Split scheme has to be assigned to a company and valuation views
COGS scheme can explicitly
assigned to a specific valuation view
No assignment of a valuation view
means the COGS split scheme is
relevant for all available valuation
views of this company
© 2016 SAP SE or an SAP affiliate company. All rights reserved.
Customer 44
COGS split in journal entry supports fix/var costs
and parallel valuations
Planning:
Multilevel
Cost Estimates
for finished materials
in parallel valuations
& fix/variable costs
Cost Estimate in local valuation (0)
Cost Estimate in group valuation (1)
Cost Est.in profit center valuation (2)
Cost Comp.
Cost Comp.
Cost Comp.
Total
Material
275 USD
0 USD
Total
Fix
Total
Fix
Fix
Material
110 USD
0 USD
100 USD
Production
300 USD
100 USD
Production
300 USD
100 USD
50 USD
Overhead
150 USD
50 USD
Overhead
150 USD
50 USD
Material
220 USD
0 USD
Production
300 USD
Overhead
150 USD
COGS Scheme for
local valuation
COGS Scheme for
group valuation
COGS Scheme for
profit center val.
Journal Entry with document type delivery of goods (WL)
Trans
action
Line
Item
Ledger
Account
Company
Currency /
legal
(total)
Company
Currency /
legal (fix)
Group
Currency /
Group val.
(total)
Group
Currency /
Group
val.(fix)
Group
Currency /
Profit Center
val.(total)
Group
Currency /
Profit Center
valuation.(fix)
BSX
1
0L
Finished goods
-670 USD
0 USD
-560 USD
0 USD
725 USD
0 USD
GBB
2
0L
COGS_1
670 USD
150 USD
560 USD
150 USD
-725 USD
150 USD
3
0L
COGS_1
-670 USD
- 150 USD
- 560 USD
- 150 USD
-725 USD
- 150 USD
4
0L
COGS_Material
220 USD
0 USD
110 USD
0 USD
275 USD
0 USD
5
0L
COGS_Production
300 USD
100 USD
300 USD
100 USD
300 USD
100 USD
6
0L
COGS_Overhead
150 USD
50 USD
150 USD
50 USD
150 USD
50 USD
Actual:
COGS split on goods
delivery in parallel
valuations and &
fix/variable costs
(same accounts)
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Customer 45
Lesson Summary
You should now be able to
 Outline the changes in customizing and data model for transfer
prices
 Outline Migration of historic data from ERP with active transfer
prices
 Explain Splitting of COGS in Transfer Price Environment
© 2016 SAP SE or an SAP affiliate company. All rights reserved.
Customer 46
End of Part 2
Questions?
© 2016 SAP SE or an SAP affiliate company. All rights reserved.
Customer 47
Thank you
Contact information:
Michael Conrad
SAP SE
Michael.Conrad@sap.com
© 2015 SAP SE or an SAP affiliate company. All rights reserved.