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Activation of Material Ledger on SAP S/4 HANA 1511 Finance



Activation of Material Ledger is mandatory on S/3 HANA due change in the data design for Inventory valuation but activation of actual costing is not mandatory on SAP S/4 HANA.






Below mentioned screen shot prescribes traditional Inventory management Vs S/4 HANA Inventory management based on Material ledger.


Material Valuation in SAP S/4 HANA allows Up to 3 currencies,

  • Tracking historic rates in Material master.
  • Local legal valuation & e.g hard or trading currency.

Actual Costing:

  • Optional revaluation of stock and COGS
  • Leverage Actual cost component

Activate Material Ledger


We activate the Material ledger for one or more valuation areas, if the material ledger is active for a particular valuation area, all materials in the valuation area are valuated using the material ledger.

But SAP recommends if you activate the material ledger for a plant, you should also activate it for all the other plants in the company code. This ensures that the accounts in Financial Accounting and Materials Management are reconciled.

Activate Valuation Area’s for Material Ledger:


In this activity, you can specify in each valuation area that a planned price is activated as the valuation price upon the first goods movement in a new posting period as long as the validity date of the planned price has been reached.

The planned prices are handled by the system with the following priority:

  • Marked standard cost estimates
  • Future valuation prices

Actual Costing:

Inventory and material movements are generally valuated either at Standard price (S) which is constant over a period of time or Moving average price (MAP) which gets adjusted (calculated) automatically based on every Goods receipt or Invoice receipt. Both of these two methods have their own pros and cons. Actual costing combines the advantages of standard price with advantages of using MAP.

ML captures all price variances (like purchase price variances, production variances etc) and allows (as optional period end activity) revaluation of ending inventories at period end and releases it as standard price (generally) for next period. Actual costing is optional in S/4 HANA.

Activate Actual Costing:



Depending on which activation type is chosen

  • Actual consumption is updated in the quantity structure but not considered by price determination.

You can use this setting if you simply want information about the complete actual quantity structure. You can assign variances between the plan price of the cost center/activity type or process, and the actual price calculated at period end to the particular cost object at period-end closing using the function ‘Revaluation at Actual Prices’.

  • Actual consumption is updated in the quantity structure and taken into account for the price determination.

If you choose this setting, the variances between the plan price and the actual price are adjusted subsequently. The cost center or the process is then credited and the material associated with the consumption is debited. In the context of multi-level price determination, these variances can be rolled up through the production structure up to the finished product in the same way that material price variances are rolled up.

If you choose this setting, you cannot use the function ‘Revaluation at Actual Prices’ at period closing in Cost Object Controlling, as the variances from the cost centers/processes are debited to the material direct. If you do use the function ‘Revaluation at Actual Prices’ at period closing, the cost centers/processes are credited twice and the materials are debited twice.

We have to keep below mentioned points during Migration of Material Ledger Customizing:

Key Points:

  • The material ledger is required if you are using SAP S/4 HANA Materials Management – Inventory Management (Simplified Logistics).
  • You need to migrate the material ledger even if you are already using SAP Simple Finance (that is, you are migrating from SAP Simple Finance to SAP S/4 HANA Inventory Management).
  • You need to migrate the material ledger even if you are already using the material ledger in your source system.


Introduction to NWBC

NWBC (NetWeaver Business Client), ) is a new SAP UI, presenting end users with a
seamless integration of classic SAP GUI-based transactions and newer Web Dynpro-based
applications. In the desktop variant a high–fidelity UI is offered to improve user experience. Thus the NWBC provides typical modern desktop-based user experience.

NWBC available in two flavors:

  • NWBC for HTML (Browser based)
  • NWBC for Desktop (Windows based)

NWBC for HTML is a browser-based shell (available only against ABAP systems) for
casual use scenarios. Within this environment, all SAP GUI transactions will be rendered
using the SAP GUI for HTML rendering engine.

NWBC for Desktop is a .NET based application that targets the power user. In this
scenario, the SAP GUI itself is used as rendering engine if installed. NWBC effectively
“replaces” SAP GUI as main entry point to SAP applications; however, it does use
SAP GUI to run existing applications.


› increased end user adoption
› single point of entry for the user
› content tailored to users needs
› low overall TCO

Key features
› standard client for Business Suite
› role-based (PFCG / PCD) access to SAP business applications
› browser-like navigation
› integration of different UI technologies
› allows modifications-free mash-ups via Side Panels
› supports access and navigation to other systems

Role maintenance in PFCG:

Roles will be configured  in transaction  PFCG are mapped to the menu structure of NWBC.

In transaction PFCG you can configure roles . In real life, a role corresponds to the work that a person does within a company or the position held, for example, a sales person or someone working in support. In transaction PFCG, roles are defined matching the real life roles that people play within a work situation. More specifically, a role within transaction PFCG is a set of transactions that persons within specific roles would need for their daily work. In this example, a sales person could have a role that requires transactions to add new customers, display customer details, or to enter a new lead.

Given the existence of roles within transaction PFCG that describe the typical work persona, use transaction SU01to assign these roles to specific users. A user in the system can have any number of roles assigned, which reflects the real work that the person does within the company.

Given the roles in transaction PFCG, the SAP Easy Access menus are displayed directly after logging on with SAP GUI. These are effectively the menu trees as expressed in one or more roles for each user. This allows the user to quickly start the relevant transactions for their daily work.

NWBC builds on this same PFCG infrastructure in the ABAP system. The NWBC runtime retrieves all roles assigned to a specific user and makes them available to the shell. The shell uses exactly the same role information to show the user the possible transactions that might help them with their daily work.

For this reason, the shell in NWBC is in the first instance another expression of the SAP Easy Access menu, providing roughly the same functionality.


Document number ranges in S/4 HANA sFIN


Document number ranges in S/4 HANA sFIN

Since the system now writes only one journal entry for all of the components G/L,
CO, AA, ML, one document number is sufficient from a business point of view. The
journal entry consists of a header (BKFP) and items {ACDOCA). The respective
document number (BKPF-BELNR/ACDOCA-BELNR) must obey the legal rules of
Financial Accounting. As a consequence, the document number is dependent on
the fiscal year and the company code.


CO document numbers have not been year dependent. Material ledger document ACDOCA numbers have not been dependent from the DOCLN
organizational unit (e.g. company code). ooooo1 Both numbers did not have a legal ooooo2 relevance. Moreover, ACDOCA has a 6 digit …
field for the document line, whereas COEP oo1o82 has only a 3 digit field. This is still used in 001083 many user interfaces and reports. For compatibility reasons, SAP offers a new 001130transaction number for every 999 documen lines.

The new universal journal entry replaces the Financial Accounting (FI) document and the Controlling (CO) document with a universal document. A journal entry is created for every business transaction in one of the following application components:

  • General Ledger Accounting (FI-GL)

  • Asset Accounting (FI-AA)

  • Controlling (CO)

    Exception: Costing-based Profitability Analysis (CO-PA)

  • Material Ledger (CO-PC-ACT)

Changes in S/4 HANA sFIN Document types and Number ranges:


In this activity, you define your document types. Document types are used to differentiate the business transactions and to manage how document are stored. This documentation describes the special procedure for setting up document types for New General Ledger Accounting.


Here, you make the settings specifying the document type for postings to non-leading ledgers.

Under Define document types for Entry View, you make the document type settings for postings in the entry view that effect all ledgers and for postings to the leading ledger.



In this IMG activity you create number ranges for documents. For each number range you specify (among other things):

  1. a number interval from which document numbers are selected
  2. the type of number assignments (internal or external)

You assign one or more document typesto each number range. The number range becomes effective via the document type specified in document entry and posting. You can use one number range for several document types. This means you can differentiate documents by document type but combine them again for filing the original documents, provided you store your original documents under the EDP document number.

Integration of Controlling with Financial Accounting:

New Settings for customizing Controlling in S/4 HANA sFIN


In this activity, you can create new Document types for posting in Controlling, example you can create a document type that you can use for the manual reposting of primary costs.



In this activity, you define a mapping variant that maps CO business transactions to document types. This mapping must be done for all CO business transactions that do actual postings.

Upgrades: The migration of the ledger Customizing generates a default mapping variant in which all CO business transactions are mapped to the document type that was entered in the variant for real-time CO-FI integration.


You place your mapping of FI documents to CO transaction / document types here




SAP FICO Job offers – December 2015

Check out and apply for the new FICO job opportunities in Canada and Japan. If you are interested in job in BI/BW/BO area, you can find those on the brand new SAP BI Jobs website.

SAP FICO – Senior Staff – Toronto

Company: EY

Location: Toronto, Ontario, Canada

Job type: Full Time

EY’s people in more than 150 countries are committed to operating with integrity, quality and professionalism in the provision of audit, advisory, tax and transaction advisory services. We strive to help all of our people achieve their professional and personal goals through an inclusive environment that values everyone’s contributions, appreciates diversity of thought, fosters growth, and provides continuous opportunities for development. Recognized as one of Canada’s top employers, EY continually strives to be a great place to work.

See more & Apply here

SAP Project Manager – Toronto

Company: EY

Location: Toronto, Ontario , Canada

Job type: Full Time

See more & Apply here


Company: Izumi Network Yugen Kaisha

Location: Tokyo, Japan

Job type: Full Time

See more & Apply here

Introduction to SAP Fiori


What is SAP Fiori?

SAP Fiori mobilizes some of the most common business functions like Workflow approvals, information lookups and self service tasks. It is collection of apps with a simple and easy to use experience for broadly and frequently used SAP software functions that works seamlessly across devices Desktops, Tablets, Smartphones and Smart Watches.

SAP Fiori is the new user experience (UX) for SAP software. It applies modern design principles for a completely re-imagined user experience across devices and deployment options. SAP Solutions, such as the SAP Business Suite (SAP S/4) applications, user SAP Fiori UX to provide a personalized and role based user experience for enterprise-wide engagement across lines of business.

While updating a single standalone SAP Fiori App is quite straight forward complexity rises with increasing number of user cases, applications, custom enhancements, etc. on productive system landscapes. This guide provides an overview of major challenges and areas of concern.

There are 500+ role-based apps, that apply the SAP Fiori UX providing enhanced user productivity and personalization for customers using SAP S/4HANA, SAP Simple Finance and SAP Business Suite on any database.

SAP Fiori UX supports a variety of roles in lines of business include HR, Finance, Manufacturing, Procurement, and Sales.

Technology behind Fiori?

Here comes my favorite web language “HTML5”


‣ HTML5 and JAVA Script UI development framework

‣ Future direction for SAP User interfaces

⇒ SAP NW Gateway

‣ Software layer for SAP ERP that exposes SAP data using OData (web) protocal

Scope of SAP Fiori?

SAP Fiori comes with three major app types,

⇒ Transnational Apps

Fact sheets

Analytical Apps

⇒ Transnational Apps

These apps let you perform transactional apps, such as creating leave request for an employee. They represent simplified views and interaction with existing business processes and solutions. They run best on an SAP HANA databases with acceptable performance.

For the transactional apps, the ABAP front-end server contains the UI layer with the product-specific UI components for the products (for example, ERP Financials (ERP-FIN), Customer Relationship Management (CRM), Supply Chain Management (SCM)) as well as the infrastructure components. The infrastructure comprises the central UI component with the SAP UI5 control library and the SAP Fiori launchpad as well as SAP Gateway with the OData enablement.

The front-end components have access through a trusted RFC connection to the ABAP back-end server containing the business logic. The underlying database can be an SAP HANA database, or any database, and is accessed from the back-end server.


 ⇒ Fact sheets

These apps display contextual information and key facts about central objects used in business operations. From an architectural perspective major differentiators to transactional apps are:

‣ Fact sheets run only on a SAP HANA database / Suite on Hana system (no support of any DB)

‣ Directly accesses search engine on the backend server via INA search protocol

‣ Requires reverse proxy (SAP Web Dispatcher) handling the request to different systems

⇒ Analytical Apps

These apps provide role-based insight into real-time operations of a business by collecting and displaying key figures directly in the browser. Analytical apps combine the data and analytical power of SAP HANA with the integration and interface components of SAP S/4. They provide real-time information on large volume data in a simplified front end for enterprise control. With analytical apps, most important key performance indicators (KPIs) can be closely monitored in real time and allow immediate reaction on changes in market conditions or operations. From an architectural perspective major differentiators to transactional apps are:

‣ They require HANA database / Suite on HANA system and XS Engine

‣ Directly accesses HANA XS Engine

‣ Requires reverse proxy (SAP Web Dispatcher) for handling the requests to the different systems.



⇒ SAP Fiori User Roles


Click here to get configuration document of “Configuring SAP Fiori Apps

Parallel Accounting in New Asset accounting powered by SAP HANA


In New asset accounting, you can handle parallel accounting using depreciation areas.

For representing parallel accounting in New asset accounting, you have two scenario’s as mentioned below.

  • Using Parallel ledgers: The Ledger approach
  • Using Additional accounts: The Accounts approach

Ledger approach:

  1. Different accounting principles or valuation are mapped in separate ledgers, as in new General ledger accounting. In general, the same accounts are used in the ledgers.
  2. The depreciation areas have equal status. Separate documents are posted for each accounting principle or valuation.
  3. For each accounting principle or valuation, the system posts the correct values in real time. The values that are posted are full values and not delta values.
  4. For each valuation, there is always just one depreciation area that posts to the general ledger in real time and manages APC. For this leading depreciation area, choose the posting option Area Posts in Realtime. This applies both for the leading valuation and for all parallel valuations. You can choose which of these depreciation areas, which post to the general ledger, posts to the leading ledger.
  5. One or more depreciation areas represent a valuation. You must assign an accounting principle uniquely to all depreciation of a valuation. For each valuation, the accounting principle has to be assigned to a separate ledger group. The ledgers of these ledger groups are not allowed to overlap.
  6. Differences in values in each accounting principle: You can enter documents that are valid only for a certain accounting principle or valuation. To do so, when entering the business transaction, you can restrict the posting to the accounting principle or to one or more depreciation areas.

  7. You can assign different fiscal year variants to each type of valuation. (There is a restriction in this case: The start dates and end dates of the fiscal year variants must be the same.)

  8. Within an asset class, it is possible to make a simple assignment of different G/L accounts (such as, reconciliation accounts for APC and value adjustments) for each valuation.

  9. If you have defined parallel currencies in new General Ledger Accounting, and you want to use these currencies in new Asset Accounting, you are required to create – for the leading valuation and the parallel valuations – the necessary depreciation areas for each currency.

  10. Managing quantities: In the standard system, depreciation area 01 is intended for the quantity update. If needed, you can specify a different depreciation area for the quantity update. However, this has to be a depreciation area that posts to the general ledger. The quantity – if it is to be managed on the asset – is updated in the asset master record only when a posting is made to this different depreciation area.

Different Fiscal Year Variants:

You can enter a separate fiscal year variant for each depreciation area in Asset Accounting. The start and end dates of this fiscal year variant have to be the same as the start and end dates of the fiscal year variant of the company code. As part of the ledger approach, the system also allows a posting in a representative ledger, to which any fiscal year variant is assigned. The system then derives the period from the posting date. The depreciation, however, is determined as before using the fiscal year variant of the depreciation area of the posting.

Accounts Approach:
  1. You represent different valuations on different accounts within the same general ledger. This means that you have to create the same set of accounts again for each parallel valuation.

  2. Separate documents are posted for each accounting principle or valuation.

  3. For each accounting principle or valuation, the system posts the correct values in real time. The values that are posted are always full values and not delta values.

  4. For each valuation, there is always just one depreciation area that posts to the general ledger in real time and manages APC. The following applies for these posting depreciation areas:

    1. For the leading valuation, choose the posting option Area Posts in Realtime.

    2. For the parallel valuations, choose the posting option Area Posts APC Immediately, Depreciation Periodically.

    You can choose which of these depreciation areas that post to the general ledger represent the leading valuation.

  5. There can also be investment support on the liabilities side for the valuations. These depreciation areas also receive the posting option Area Posts in Realtime for the leading valuation or Area Posts APC Immediately, Depreciation Periodically for parallel valuations.

  6. One or more depreciation areas represent a valuation. You must assign an accounting principle uniquely to all depreciation areas of a valuation. For each valuation, the accounting principle has to be assigned to a separate ledger group. These ledger groups must always contain the leading ledger as the representative ledger.

  7. If you have defined parallel currencies in new General Ledger Accounting, and you want to use these currencies in new Asset Accounting, you are required to create a depreciation area for each currency for the leading valuation. However, this is not mandatory for the parallel valuations.

  8.  Differences in values in each accounting principle: You can enter documents that are valid only for a certain accounting principle or valuation. To do so, when entering the business transaction, you can restrict the posting to the accounting principle or to one or more depreciation areas.

Source:SAP Library

SAP FICO Openings/Jobs – 10/04/2015

  • SAP FICO Consultant – IBM Malaysia

Preferred skills:

-SAP FICO consultant with at least 3 years of relevant SAP experience and at least 3 end to end implementations

-Integration Knowledge for various SAP modules

-Excellent written and communication skills

-Experience in large scale global & national SAP implementation.

-Excellent client-facing, cross-functional communication and interaction skills


-Bachelor’s Degree

-At least 5 years experience in Perform configuration – Set up the finalized system configuration

-English: Fluent

Apply Here….!!

  • SAP FICO Consultant-Accenture – London or Manchester

What we’re looking for

-Strong understanding of Finance business processes and accounting practices

-Strong SAP Financials skills: FI-CO

-Additional experience of Product Costing, Profitability Analysis (COPA), FSCM, Opentext (VIM) or Joint Venture (JV), Project Systems (PS) is beneficial.

-Integration experience with Logistics modules (MM, SD, PP) is also beneficial.

-Implementation and delivery experience, which should include at least one full project lifecycle.

Apply Here…!!

  • SAP FICO Consultant -Ciber Company-Netherlands-North Brabant-Eindhoven 

Apply Here…!!

  • Senior SAP FI or CO expert-KENEOS-EUROPE

Desired Skills and Experience

-Minimum 5 year of experience in FI and a basic CO understanding

-OR 5 years of experience in CO and a basic FI undestanding

-At least 2 years of experience in an other module

-knowledge of FSCM and more importantly Treasury Management, Collections/Credi/Dispute and In House Cash.

-Good communication skills, team player

-Good knowledge of French, Dutch and/orEnglish

Apply Here..!!

  • SAP FICO permanent position -Equal-Plus- Paris

Apply Here…!!

  • SAP FICO Consultant bij eindgebruiker in Eindhoven

Job description

  1.  Salaris €70.000 bruto per jaar
  2.  Interne functie bij een internationaal bedrijf
  3.  32 vakantiedagen
  4.  Flexibele werktijden
  5. (internationale) doorgroeimogelijkheden

Apply Here..!!

  • SAP FICO Consultant – NSI & Bluefin Talent – Riyadh, Saudi Arabia


-Bachelors degree in Informational Technology, preferable – Master’s Degree in Business or Management

-Has gained experience (4-5 years) working as a constructive user or supplier of information services with exposure to, and knowledge of a major service function and the operational flows of the organization.

-Has worked as FICO Consultant previously.

-Has minimum 5-6 years of experience in SAP FICO module, with at least 4 end to end full life cycle implementations.

-Has wide ICT knowledge. Displays good inter-personal skills at all levels of contact and in a wide variety of situations. Demonstrates the ability to make, and take responsibility for, sound and far reaching decisions on technical and service delivery issues.

-Demonstrates up to date knowledge of the organisations policy framework, organisational relationships, business processes, reporting procedures, and existing service delivery functions.

Apply Here..!!

  • SAP FICO – Consultants – Accenture – Mumbai

Job description:

  1. 8+ years of Experience in SAP FICO
  2. Knowledge of Automatic Payment configuration and process
  3. Knowledge of Asset Module, – Configuration and process
  4. Understanding of AP, AR and House Bank Setup.
  5. Extended Withholding Tax configuration
  6. Integration of MM, SD and PP with FI
  7. Knowledge of Period and Annual closing process in FI
  8. Experience in CIN, Asset Management Module, Withholding tax
  9. Cost Element Accounting: Understand and usage of primary and secondary cost element
  10. Product costing- Basic steps cost component variant and structure, Defining overhead   cost, running product costing and it analysis, Production order settlement   and variant calculation.
  11. Cost Centre accounting: Creation of Assessment/ Distribution cycle    processing of cycles and data analysis, defining splitting, structure and its   assignment, Statistical Key Figures and its usage,
  12. Profitability Analysis & Profit Centre accounting: Characteristics and value fields, Automatic account assignment, PA Transfer structure and COPA cycle creation ( basic   understanding)

Qualification:  / CA / CS / MBA   Finance

Apply Here..!!

SAP FICO Business Systems Analyst, Staff – PMC Sierra – Malaysia-Penang


-10 to 15 years of experience in the of FICO and EPM (Consolidations) modules with SAP implementation experience.

-Strong analytical, problem-solving, negotiation and organizational skills. Clear focus under pressure.

-Strong finance and accounting knowledge.

-Strong project management, interpersonal, and communication skills.

-Demonstrated strong performance in prior roles.

-Hands-on experience in FICO and EPM and cross-functional configurations of SAP is a must.

-Experience with implementing and supporting the SAP FICO and EPM module.

-Should have strong business processes knowledge for designing, developing, and testing SAP functions associated with FICO and EPM.

-Business Warehouse experience in a high-growth semiconductor company is strongly preferred; SAP HANA experience a plus.

-Experience with Hyperion and Tax Software like Vertex preferred

Apply Here..!!

  • SAP FICO Analyst – Bristal – London

To apply you will have;

-5+ Years SAP FICO Experience

-Product Costing (CO-PC) – Desirable

-Accounting qualifications/ Strong Financial background

-Integration Skills

-Strong Configuration across SAP FI CO

-Desire to Perform the Role of Project Manager at Times.

-A Good Level of Project Experience

-Additional SAP Modular experience/knowledge would be advantageous

-Stakeholder Management/ Strong Communication

Apply Here..!!


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