Sap S/4 Hana 'upa' : Material Ledger/actual Costing-Ckmlcp
Published 7/2025
Created by Karanam Sreedhar : SAP S/4 HANA Controlling-Subject Matter Expert
MP4 | Video: h264, 1280x720 | Audio: AAC, 44.1 KHz, 2 Ch
Level: All | Genre: eLearning | Language: English | Duration: 11 Lectures ( 22h 51m ) | Size: 9.8 GB
SAP S/4 HANA "UPA" : Material Ledger : Transfer Pricing-with new financial architecture
Material Ledger with Legal, Group, and Profit Center valuations is integrated with FINSC_LEDGER for ledgers 0L, 2L, 4G, and 5P
"Asset Accounting in Universal Parallel Accounting" supports ledger-specific depreciation, allowing accurate parallel valuation for each ledger like 0L, 2L, 4
Material Ledger with Actual Costing supports ledger-specific execution, using leading 0L for IFRS and non-leading ledger 2L for Local GAAP
Requirements
SAP S4 HANA CO module required
Description
SAP S/4HANA CO - UPA: Event-Based Product Costing with Asset Accounting and Material Ledger IntegrationUniversal Parallel Accounting (UPA) in SAP S/4HANA introduces real-time, ledger-specific financial management. In Make-to-Stock (MTS) and Discrete Manufacturing scenarios using Product Costing by Order, UPA with Event-Based Costing (EBC) and Asset Accounting ensures seamless and accurate value flow to the Material Ledger (ML) across multiple ledgers, especially 0L (Local GAAP) and 2L (IFRS).1. UPA Architecture and ACDOCA IntegrationACDOCA (Universal Journal) centralizes postings from FI, CO, ML, and AA.Eliminates table redundancy and aligns financial and management reporting.Real-time recording for each ledger: 0L (Legal), 2L (Group/IFRS).Allows reporting by valuation view (Legal, Group, Profit Center).2. Ledger Configuration via FINSC_LEDGER0L = Leading Ledger for Local GAAP.2L = Non-Leading Ledger for IFRS or Group Valuation.Each ledger supports up to 5 currencies:10 = Company Code Currency30 = Group Currency40 = Hard Currency50 = Index-Based Currency60 = Global Company Currency3. Event-Based Costing for WIP & VarianceWIP and Variance are calculated and posted automatically and in real-time.Replaces old transactions like KKAO (WIP) and KKS2 (Variance).Event-based Costing Sheet calculates ledger-specific Overhead.Improves cost traceability and production transparency across ledgers.4. Costing Variant Setup for Multiple ValuationsEach ledger has a distinct costing variant:Costing Type (Planned or Standard)Valuation Variant (Material, Activity, Subcontracting)Overhead Costing Sheet (Ledger-Specific)Enables accurate ledger-wise cost planning and comparison.5. Material Ledger with Multiple ValuationsML captures and values materials in multiple currencies and views.Required for UPA to handle multi-ledger, multi-currency costing.Ledger-specific CKMLCP runs:CKMLCP-0L for IFRS (0L)CKMLCP-2L for Local GAAP (2L)Ensures correct COGM and Inventory Valuation per ledger.6. Asset Accounting with Ledger-Specific Valuation (Highlighted)UPA introduces ledger-specific Asset Accounting.Each ledger uses its own
epreciation AreaDepreciation KeyUseful LifeExample:Asset in 0L = 10 years (IFRS) with Depreciation Key - LINSAsset in 2L = 10 years (LOGA) with Depreciation Key- S150Values post to ACDOCA per ledger and flow into cost centers/orders, enabling event-based capitalization and depreciation.7. Universal Allocation (Highlighted)Replaces old cycles (KSU5, KSV5, etc.) with Universal Allocation.Supports ledger-specific cost allocations.Real-time allocation of:costs to productionActual activity ratesExample:Cost center allocations post differently in 0L vs 2L based on accounting logic.Enhances auditability and transparency.8. Value Flow to ML from AA and COAsset Acquisition → Capitalized in 0L and 2L separately.Depreciation postings flow to Cost Centers (CO).Production Orders absorb asset usage, Machine.Finally, Material Ledger captures and settles actual costs to inventory via CKMLCP per ledger.9. Key Benefits of UPA with EBC and AAa) Real-time, ledger-wise WIP and variance postingb) Supports multiple valuation standards (Local GAAP, IFRS)c) Depreciation handled ledger-specifically, improving asset controld) FI-CO-ML-AA integration provides a unified reporting basee) No period-end bottlenecks, better close processesf) Accurate COGM per ledger using CKMLCP-OL and CKMLCP-2Lg) Universal Allocation improves clarity of internal chargingConclusion:Universal Parallel Accounting with Event-Based Costing, Asset Accounting, and Material Ledger integration enables end-to-end value flow with ledger-specific accuracy. Organizations can now comply with global accounting standards, improve real-time visibility, and automate costing processes, empowering both finance and operations for strategic decision-making.
Who this course is for
"Highly recommended for all Finance, Accounts, and Management Accounting professionals, especially for those working as SAP CO module consultants."
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Sap S/4 Hana 'upa' : Material Ledger/actual Costing-Ckmlcp
