Universal Allocations in S/4HANA

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WALK AWAY FROM THIS SESSION WITH AN UNDERSTANDING OF UNIVERSAL ALLOCATIONS IN S/4HANA

Cost Allocation within the Overhead Cost Controlling module enables business users to periodically allocate posted amounts and quantities from sender cost objects to receiver cost objects based on a Cycle Structure. Some challenges exist with the current ECC functionality such as the ability of users to easily understand their allocation processes and the ability to simulate the results from allocations. Also, several other modules such as General Ledger, Profit Center Account, and Profitability Analysis also contain allocation functionality, but it is difficult to keep track of all the allocations, as they are not stored in the same area of the system. In S/4HANA 1809, Universal Allocations were introduced to handle most of these issues as well as provide new functionality.

This live Webcast was presented by FI/CO expert Paul Ovigele to learn:

  • The Challenges of current CO Allocations.

  • Features of Universal Allocations

  • Fiori Apps for Universal Allocations

  • Managing and Executing Universal Allocations

  • Managing Global Accounting Hierarchies

Watch the Recorded Webcast:

Q&A:

Q: Can you perform Top Down Distribution for Plan Data? 

A: You can perform TDD for plan data in using KE1G. However, Universal Allocation only allows TDD for Actual Data. I believe Plan Data TDD is on the Roadmap.

Q: Can you allocate values from the Extension ledger? 

A: Yes you can allocate Values from the Extension Ledger as well.

Q: Do the Allocations that already exist in ECC get automatically transferred to Universal Allocations in S/4HANA? 

A: Yes, when you initially view the Managing Allocations App, you will see any existing Allocations.

Q: What are the upcoming functionality upgrades to manage and execute universal allocations through automated processes?    

A: Integration with Closing Cockpit will be available with future releases and this should allow for process automation. Notifications of errors/warnings via Situation Framework is already available.

Q: Will we be able to upload and download information between SAP and Excel?  Or have other functionality to eliminate or greatly reduce our current manual processes?   

A: You can upload Senders, receivers and Statistical Key Figures from Excel.

Q: Will future functionality include audit trail reporting to verify allocations and track sender/receiver allocation changes? 

A: You can trace value flows between senders and receivers quite easily, and you can see who change an Allocation in the "Changed By Name" column in the Managing Allocations App.

Q: Does future functionality include leader workflow approvals for allocations and ability to attach documentation and backup for how the allocations are calculated? 

A: Not that I know of.

Q: Can you still use the old allocation and distribution transactions in S/4HANA? 

A: Yes, these are still available. Also, note that not all the old features are available with Universal Allocation.

Q: Is there a plan to integrate universal allocation within SAP environment? not only Fiori? 

A: I do not believe so. The idea with Universal Allocations (as well as other new features such as Global Hierarchies, Flexible Hierarchies) is that they will be Fiori Based only.

Q: Why do we need to specify Co Code for Cost Center Allocation in the Universal Allocations? Will Universal Allocation allow Cross Co Code Allocations in Cost Centers? 

A: Universal Allocation is also available for GL/Profit Center allocations, hence company code should be specified. It also allows Cross Company Code Allocations in Cost centers

Q: What is the significance of Ledger for Cost Center Allocation in the Input Selection? 

A: Ledger is a key field in the Universal Journal, especially with the distinction of Ledgers into Standard Ledger (Leading/Non-Leading) and Extension Ledgers. Specifying the Ledger is the way of distinguishing which of these ledgers should be Allocated. If you specify Leading ledger, then Non-Leading ledger is Allocated as well. However, if you specify Non-Leading or Extension Ledger, then Leading ledger is not impacted.

Q: Can you use Cost Center Allocation for Non Leading Ledger? 

A: Yes you can.

Q: In General, we use Background Programs to schedule Assessment and Distribution Cycles. So how helpful will Universal Allocation be to an Organization? 

A: Even though you use Background Programs, Universal Allocation still helps for easier maintenance, better visibility and traceability of Value Flows and Harmonization of numerous ECC transactions into a handful of Apps.

 

Author: Paul Ovigele

Paul Ovigele has worked as an ERP financials consultant since 1997 in both North America and Europe, specializing in implementing the FI and CO modules along with their integrated areas for companies in industries such as consumer goods, chemicals, logistics, pharmaceuticals, apparel and entertainment. Paul has delivered numerous training sessions to finance professionals at both the functional and managerial levels, and he has presented at various SAP financials conferences around the world.

Module(s): Financial Accounting
www.linkedin.com/in/paulovigele