Predictive Accounting

Predictive Accounting in SAP S/4HANA

Daniel Mateo
www.linkedin.com/in/dmateop
Predictive Accounting
AGENDA

1 Self introduction 4 Main Customizing

Steps

2 What is Predective
Accounting
5 Process flow within
SAP S/4HANA 2022

3 Main Features and

Elements
6 Q&A
Predictive Accounting
AGENDA

1 Self introduction 4 Main Customizing

Steps

2 What is Predective
Accounting
5 Process flow within
SAP S/4HANA 2022

3 Main Features and

Elements
6 Q&A
Predictive Accounting
Daniel Mateo

16 years experience in SAP financial accounting and

controlling modules (FICO).

Professional certifications: SAP Activate Project Manager,

SAP S/4HANA Financial Accounting, Project Manager
Professional (PMP), ITIL…

7 SAP Rollouts in America, 11 in Europe, 2 SAP S/4HANA

Greenfield implementation and 2 Global Upgrade.
Predictive Accounting
AGENDA

1 Self introduction 4 Main Customizing

Steps

2 What is Predective
Accounting
5 Process flow within
SAP S/4HANA 2022

3 Main Features and

Elements
6 Q&A
Predictive Accounting
WHAT IS PREDICTIVE ACCOUNTING?
SAP functionality designed to analyze forecast of finance
FINANCE results based on the most up-to-date data

➢ Creates predictive journal entries based on the documents for:

Sales Processes Travel and Expense Management

• Sales orders as source • Concur Travel requests as
document source document

➢ Multiple analytical apps for predictive accounting analysis.

Predictive Accounting
AGENDA

1 Self introduction 4 Main Customizing

Steps

2 What is Predective
Accounting
5 Process flow within
SAP S/4HANA 2022

3 Main Features and

Elements
6 Q&A
Predictive Accounting
MAIN FEATURES

Sales Process Travel Expenses

• Predicts future revenue and COGS in • Integration with Travel and Expense
the universal journal (ACDOCA) Management in SAP Concur and SAP
• It updates ACDOCA when a sales order S/4HANA FI
is created, before any accounting • Forecast the impact of employees'
documents posted in SD flow. future business trips on future costs
• The Predictive Journal Entry – Manage from travel requests
(Synchronous) web service is also • For travel allocated to cost centers,
available for using sales orders from an you can also perform budget
external system as source documents. availability checks.
 Predictive Accounting
SALES PROCESS
Sales Order Post Goods Issue Billing Document

Source Document

Predictive GL entries for Reduction of predictive GL Reduction of predictive GL

Predictive goods issue entries for goods issue entries for billing document
Ledger
Predictive GL entries for
billing document

Leading GL entries for goods issue GL entries for billing document

Ledger
Predictive Accounting
TRAVEL EXPENSES
SAP CONCUR
Travel Request Expense Report

Source Document

SAP S/4HANA

Predictive Predictive GL entries for Reduction of predictive GL

Ledger expense report entries for expense report

Leading
Ledger GL entries for expense report
Predictive Accounting
AGENDA

1 Self introduction 4 Main Customizing

Steps

2 What is Predective
Accounting
5 Process flow within
SAP S/4HANA 2022

3 Main Features and

Elements
6 Q&A
Predictive Accounting
MAIN CONFIGURATION
Define Extension Ledger
• SPRO -> Financial Accounting -> Financial Accounting Global Settings -> Ledgers ->
Ledger -> Define Settings for Ledgers and Currency Types
• Delivered by standard 0E for the prediction ledger
• Extension Ledger ZE is created to capture all predictive journal entries with underlying
ledger as ‘0L’.
Predictive Accounting
MAIN CONFIGURATION
Assign Extension Ledger
• The newly created extension ledger is assigned to the relevant company codes.
• Accounting principle and posting variant is maintained
Predictive Accounting
MAIN CONFIGURATION
Activate Predictive Accounting
• SPRO -> Financial Accounting -> Predictive Accounting -> Activate Predictive Accounting
• Activate Predictive accounting at controlling area level selecting the relevant processes:
Sales and/or Travel Expenses.
Predictive Accounting
MAIN CONFIGURATION
Maintain Sales Document Item categories
• SPRO -> Financial Accounting -> Predictive Accounting -> Activate Predictive
Accounting for Sales Order Item Categories
• Activate the relevant item categories for predictive accounting.
Predictive Accounting
MAIN CONFIGURATION
Report for Creating Predictive Journal Entries
• Predictive accounting only creates and processes predictions based on sales orders
and travel requests that have a creation date after the date of activation.
• Execute the report FINS_PRED_REPOST- Repost Predictive Accounting Data to insert
the missing predictive journal entries for sales orders created before activation.
Predictive Accounting
AGENDA

1 Self introduction 4 Main Customizing

Steps

2 What is Predective
Accounting
5 Process flow within
SAP S/4HANA 2022

3 Main Features and

Elements
6 Q&A
Predictive Accounting
SALES PROCESS FLOW

Sales Order Post Goods Issue Billing Document

Manage Sales Orders App Manage Outbound Deliveries App Create Billing Documents App
T.Code VA01 T.Code VL01N T.Code VF01 or VF04
Predictive Accounting
SALES PROCESS FLOW Sales Order Post Goods Issue Billing Document

T.Code VA01
Sales Order Creation
Predictive Accounting
SALES PROCESS FLOW Sales Order Post Goods Issue Billing Document

T.Code VA01
Sales Order Creation
Predictive Accounting
SALES PROCESS FLOW Sales Order Post Goods Issue Billing Document

T.Code VA01
Sales Order Creation

Predictive Stock
Consumption
Predictive
Revenue
Predictive Accounting
SALES PROCESS FLOW Sales Order Post Goods Issue Billing Document

T.Code VA01
Sales Order Creation
Predictive Accounting
SALES PROCESS FLOW Sales Order Post Goods Issue Billing Document

T.Code VL01N
Post Goods Issue
Predictive Accounting
SALES PROCESS FLOW Sales Order Post Goods Issue Billing Document

T.Code VL01N
Post Goods Issue

Actual FI Posting in 0L Ledger

Predictive Accounting
SALES PROCESS FLOW Sales Order Post Goods Issue Billing Document

T.Code VL01N
Post Goods Issue

Predictive Stock Consumption

is reversed

Predictive Revenue
remain unaffected
Predictive Accounting
SALES PROCESS FLOW Sales Order Post Goods Issue Billing Document

T.Code VL01N
Post Goods Issue

ZE Ledger considers 0L postings (underlying ledger)

Predictive Accounting
SALES PROCESS FLOW Sales Order Post Goods Issue Billing Document

T.Code VF01
Post Billing Document

Updating unit sales price to 71USD

Predictive Accounting
SALES PROCESS FLOW Sales Order Post Goods Issue Billing Document

T.Code VF01
Post Billing Document

Actual FI Posting in 0L Ledger

Predictive Accounting
SALES PROCESS FLOW Sales Order Post Goods Issue Billing Document

T.Code VF01
Post Billing Document

Predictive Revenue is
reversed
Predictive Accounting
SALES PROCESS FLOW Sales Order Post Goods Issue Billing Document

T.Code VF01
Post Billing Document

ZE Ledger considers 0L postings (underlying ledger)

Predictive Accounting
REPORTING

• The following Fiori Apps can be used:

• Gross Margin – Presumed/Actual

• Incoming Sales Orders – Predictive Accounting
• Display Line-Item Margin Analysis
Predictive Accounting
REPORTING
Gross Margin – Presumed/Actual
• The features of the app allow you to compare predictive amounts to your actual or
plan data.
• Considers predicted revenues, cost of sales, margins and sales deductions based on
incoming sales orders.
Predictive Accounting
REPORTING
Gross Margin – Presumed/Actual
• The features of the app allow you to compare predictive amounts to your actual or
plan data.
• Considers predicted revenues, cost of sales, margins and sales deductions based on
incoming sales orders.
Predictive Accounting
REPORTING
Incoming Sales Orders – Predictive Accounting
• Evaluate and analyze predicted revenues, cost of sales, margins, and sales deductions
based on incoming sales orders.
• The Fiori App uses predictive postings, which are generated in the predictive ledger
based on sales orders, goods issues and billing documents.
• You can use the features of the app to more deeply analyze the structure of the
predicted cost of sales, sales deductions, and orders at hand.
Predictive Accounting
REPORTING
Incoming Sales Orders – Predictive Accounting
• Evaluate and analyze predicted revenues, cost of sales, margins, and sales deductions
based on incoming sales orders.
• The Fiori App uses predictive postings, which are generated in the predictive ledger
based on sales orders, goods issues and billing documents.
• You can use the features of the app to more deeply analyze the structure of the
predicted cost of sales, sales deductions, and orders at hand.
Predictive Accounting
REPORTING
Display Line-Item Margin Analysis
• Analyze journal entry line items that are relevant for Margin Analysis: account
assignments to profitability segments and line items under journal entry documents
Predictive Accounting
AGENDA

1 Self introduction 4 Main Customizing

Steps

2 What is Predective
Accounting
5 Process flow within
SAP S/4HANA 2022

3 Main Features and

Elements
6 Q&A
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