Attributed Profitability Segments in S/4HANA 1610

Attributed Profitability Segments in S/4HANA 1610

In S/4HANA 1610 a new functionality called ‘Attributed Profitability Segments’ is introduced. It is now possible to derive a (statistical) profitability segment when there is another real CO object with a settlement rule to COPA.

I was hoping that this would fix some occurring issues with Account Based COPA in S/4HANA. Below, I will explain the scenario I have been dealing with in my example with a revenue bearing time & material service order which is billed with a debit memo. The debit memo request has an account assignment to the service order. The service order has an settlement rule to COPA. In this example I use an S/4HANA Finance 1503 environment.

In my second example I will show you how the Attributed Profitability Segment in S/4HANA 1610 works. See the difference yourself and decide if you can benefit from this new enhancement.

Current issues in Account Based Profitability Analysis

Here I will show you a time & material service order scenario and the reporting issues in Account Based COPA without having attributed profitability segments.

T&M Service Order

As you can see in the settlement rule, the order will be settled to COPA:

Service Order Settlement Rule

The Debit Memo request is created with DP90:

In the account assignment in the sales order line items you can see the assignment to the service order and no assignment to a Profitability Segment.

Debit Memo Request Account Assignment

This means that you cannot report on the Revenu in Profitablity Analsyis untill the Service Order is settled. Even then, you will see the revenue on the settlement cost elements, not on the original revenue cost element.

Reporting

Let’s have a look on the data of this Invoice and service order in the ACDOCA table.

The top rows in the blue rectangular are the actual postings on the service order (e.g. Revenue Accounts). The others are postings resulting from the settlement of service order (settlement cost elements). In this example I have my COPA characteristic Ship to Party and Ship to Country. As you can see these fields are not derived during the daily postings. They are only derived when the service order is settled to COPA.

ACDOCA

The result is that I don’t have my COPA characteristics on my revenue GL accounts. Reporting in COPA with the use of standard ACDOCA reports and KPI Fiori tiles will result in incomplete figures in these cases.

Have a look at the Actual Revenue KPI tiles in Fiori which come with SAP Smart Business as part of Embedded Analytics. The Revenue KPI app is based on Account Based COPA, thus Cost Elements and corresponding profitability characteristics. In this current scenario the profitability characteristics are not assigned to the revenue accounts. What you will see is this:

Revenue KPI tile

The same issues applies on the new ACDOCA report ‘Market Segment Actuals’:

Market Segment Actuals

The only way to overcome this is building your own reports in HANA Live and making reports in one of the SAP Business Object tools available (Lumira, Webi or Analysis for Office). Similar to what I have done for my T&M service order profitability in Analysis for Office:

Service Order Analysis for Office Report

 

Using the attributed Profitability Segments in S/4HANA 1610 

As mentioned at the beginning of this post, the new functionality called ‘Attributed Profitability Segments’ has been introduced. If there is a real account assignment to one of the objects below, the system can derive “statistical” (or attributed) COPA segments for reporting purpose:

  • Cost Center
  • Internal Order
  • Project
  • Sales Order
  • Production Order

Unfortunately the service order is not included in this list as object. Thus a direct solution for my scenario explained above has not been provided yet by SAP. I hope the service order will be supported soon as receiving CO object.

However let’s see how this new functionality works with a supported object, the internal order. Technically it’s the same issue we are solving, but instead of the service order we use an internal order as account assignment. In the configuration I have activated the Attributed Profitability Segment for internal Orders only for postings on P&L accounts. As mentioned at the beginning of my post, I will use a S/4HANA 1610 environment in this example.

The below internal order has an settlement rule to COPA.

Fiori Internal Order

Fiori Internal Order Settlement Rule

I create a sales order with assignment to the above internal order in the line item. As you can see there is no assignment to COPA.

Fiori Internal Order Sales Order

Final posting of the invoice:

Final Posting Sales for Internal Order

After posting the invoice you will see the attributed segment in the revenue line item in the ACDOCA table.

The real CO account assignment can be found in field Object Type (ACCTASY) which is the Internal Order in this case. As you can see the COPA characteristics like the Material, Customer, Material Group, Customer Group and Ship to Party are derived as well!

ACDOCA with Attributed Profitability Segments

I see huge benefits in this new functionality for reporting purposes since profitability characteristics are derived directly at the moment of posting even if there is another CO assignment. For me it was a long awaited functionality, however I’m very disappointed that it isn’t working yet in scenarios were the service orders is the receiving cost object. I have addressed this to SAP and waiting for a reply.

I hope you have enjoyed reading this and I wonder if you have experienced similar issues with CO objects as well? If you have other thoughts or questions related to this subject, please don’t hesitate to leave a comment. If there are any other S/4HANA related cases you would like to see, just let me know and perhaps I can write a future post on the topic.

Update September 2017: SAP has released an OSS note to enable the attributed Profitability Segment functionality for Service and Maintenance Orders. By default this is not enabled in the releases S/4 HANA Finance 1605, S/4 HANA OP 1610 and 1709.

After implementing the following OSS note this will be enabled:

2497666 – S/4 HANA Finance: Attributed profitability segments for service and maintenance orders

10 thoughts on “Attributed Profitability Segments in S/4HANA 1610

  1. Hi Ugur,
    Clear story!
    Very unfortunate indeed that the service order is not included.
    I would guess that it will be added in time…
    Regards, Peter

    1. Hi Peter,

      check this OSS note to enable the functionality for Service/Maintenance orders:

      2497666 – S/4 HANA Finance: Attributed profitability segments for service and maintenance orders

  2. Nice and clear explanation, very inconvenient issue as you can’t have real-time insight. Especially strange as FI reporting isn’t a possibility. 🙁 I blame my FICO consultant consultant.

  3. I am unable to locate the Actual Revenue KPI tile in the Fiori Apps Library that is referred to in your blog http://s4hanablog.com/tag/profitability-analysis/.
    Please could you confirm if this is a standard tile or one that you built? If it is standard, please could you give me the name from the Apps Library as searching by Actual or Revenue returned no apps that seemed like this one. If it’s a standard tile, please could you confirm which technical catalog it is in too?

    I was able to find the Market Segment Actuals easily.

  4. Hi Ugur,

    Great job!
    I wanted share with you an issue we identified in this area.
    I was wondering if you had come across this issue as well (and might have a solution).
    It’s about unit of measure recording for revenue postings on cost objects.
    We are on 1710 FPS02.
    In our design we use sales orders assigned to WBS elements. WBS elements are settled to account based CO-PA.
    We’ve noticed that if we post billing document (to WBS element) unit of measure is not being updated in ACDOCA.
    It’s only updated if unit of measure is maintained in revenue GL master (cost element category 11) and unit of measure of material being sold is the same.
    That would require separate revenue accounts for materials with different units of measure (not really practical).
    Did you come across this issue?
    We logged this issue with SAP and it’s with development now.
    We’ll update you once we get a reply.

    Regards,
    Szymon

    1. Hi Szymon,

      Thanks for contributing to the forum. I assume your system version 1710 fps02 was a typo :).

      I’ve not come across this specific issue, but I know that there are some customizing steps in CO to add additional quantity and UoM fields in ACDOCA. Perhaps this part is missing in your system? I’m not sure.

      You can find this new customizing item in: IMG-Controlling-General Controlling-Additional Quantities. There is also a BADI to fill the additional fields, which you can find in this iMG path.

      I’m not sure if this is going to help you, but I’m anyhow very interested in the solution provided by SAP. So it would be very nice if you can post an update here.

      thanks and regards,
      Ugur

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