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welcome back to the channel today is another video on accounting-based profitability analysis in saeps for hana which is called margin analysis so from now on whenever i say margin analysis it means accounting based koopa you need to get used to the new term so from now on this is what we are going to use today i'm going to explain the actual data flow from the sales process into margin analysis with a demo on sap s4hana 2020 so i will start by creating a sales order and then we can see how the sales order will impact our margin analysis reports because i have predictive accounting activated in my system and i will explain to you what this is during the process and then i'm going to post a good issue and the billing document and also we can see how this will impact our margin analysis reports the demo will be on both sap gui and sap theory so the process part of the creation of sales order goods issue and billing will be on sap gui but the reporting for margin analysis will be on sap fury so the demo today will have both of them to be able to run this process on sap s4hana 2020 i had to configure my testing system and all the configuration steps that i did to be able to run the process that you will see today i included them in a configuration manual that i already shared with the elite members of the channel so if you are an elite member you can check the document library to see this configuration manual and if you would like to become an elite member i will leave you a link to the channel membership in the description of the video i will start by creating a sales order transaction va001 order type or and enter the sales area data enter customer number is agc01 material is fg01 fg02 and fg03 so now we have three items i'm going to order 10 20 and 30 pieces and also i will change the prices so let's say the first one i will sell for 22 the second i will sell for 23 or 25 and the last one i will sell for 18 and also here we have the plant then go to pricing conditions after we save the sales order i'm going to show you how this will impact our margin analysis reports so any data we have here we can see how it will it will impact the report this is why i also want to add a sales discount so we can see how this will be reflected i will add a discount here of five percent and for the second item let's add its count of 10 for example and i will keep the last one without any discounts then let's go to scheduled lines when we save the sales order it will post a predicted document to margin analysis and the posting date that will be there is the delivery date of the sales order so it will not be the sa the date of the creation of the order it will be the date of the plan delivery because this is a predicted document and we predict to have a real financial impact on this date so today is 15 of september i will change this let's say for the first item this is the second item let's say the second item will be delivered on 17 and the first item let's say will be delivered on 16 and for the last one let's say it will be delivered on 22 for example now we can see how this will be reflected in our reports and then go to shipping i need to confirm the storage location to be sure i have enough stock so this is my storage location let's go to the second one it will be the same and for the first one it will also be the same storage location shipping point is 1710 this is the one we are going to use when we post the goods issue now let's go back to the overview here is my sales order now i'm going to save this order and i will move to sap fury to show you the margin analysis report that i will explain today to open sap fury i already explained this before you can use this transaction code so either slash or slash n if you want to keep the screen open so i will do slash o then slash ui to slash flp enter and this will start sap fury in the web browser the report i'm going to explain today is this one gross margin presumed slash actual this report will show us the gross margin for any profitability characteristic we want so we can see the gross margin with product per customer per company code and so on this is the main screen of the report once you open as you see here i can see for my products what is the gross margin i will explain to you in detail what this is let's start one by one so first we start to apply the filters the filters here we select what is the data we want to see so click on adapt filters and then click here and here is the selection criteria for our report so first one is the ledger this is very important here we select the extension ledger that we configured for predictive accounting so in order to be able to see the sales order details in margin analysis or in account based profitability analysis in s4hana we have to activate a function that's called predictive accounting once you configure predictive accounting you will be able to see the sales order data in the reports as apparent as predicted data so it will be separate from the actual data this is very useful because this way you can see what is actual and what is predicted if you would like to know the configuration steps you can find so many blogs on smblogs.sap.com there are many great articles that explain how to configure predictive accounting in details or if you are an elite member you can check the configuration manual i gathered all the steps that are important and that you need to do in one configuration manual that i will keep updating as we go through this playlist so here you select the extension ledger that you configured for predictive accounting you do not select the leading ledger if you select the leading ledger you will not get any predictive data so here you select the extension ledger configured for predictive accounting and then you select the controlling area and then we have the financial statement version and you need to be sure that all the accounts that are included in the sales process are assigned to this state to this financial statement version so we have the sales account the cost of goods sold that's counts and so on they all must be assigned and you also need to be sure that the financial statement items for these accounts are assigned to the semantic tags that are being used by this application this is all included in the configuration manual so here you select the financial statement version if both of these steps do not exist if any of these steps do not exist so the accounts are not assigned or the semantic tags are not configured correctly you will not get any data in the report at all so you need to be sure that this part is done correctly and then we have the sales organization this is a selection criteria myself organization organization is ag00 then i have the company code i can remove it this is all optional and then we have the fiscal year period also now i want to filter by the sales order number to be able to see the details for our sales order only and there is no sales order here but if you go down you have more filters and here you can filter by anything that exists in the sales process so here we have the sales order and our sales order number is 2726. now we can see the gross margin analysis for our sales order so now i have the report grouped by the product sold i can have it grouped by customer by any other characteristic so this layout i created it for this demo in order to create your own layout you can click here on this gear icon it is very easy in sap fury and here you select the columns you want to display so for me i am displaying some characteristics and i'm displaying the actual details so actual revenue actual deductions actual cost of goods sold then we have actual margin and i'm displaying predicted data also so we have predicted revenues deductions cost of goods sold and margin you can also include any other column you are interested in and here we have the sorting criteria filter if you want to add any filters and grouping so this is the one you see in the main screen here so now i'm grouping the report by the products so once i open the report it will show me the summary for every product of the gross margin i can change this to any other characteristic so i can say i want the report to be by customer for example let's go up customer here we go and then if i click on ok the report will be summarized by customers i only have one here because this is only one sales order and it has only one customer this is why you have one but now it's grouped by customer we can also group the report by multiple characteristics together so we can see the report on the level of the customer or on the level of products or on the level of a customer and a product so if you go again to the gear icon and in the group here you can add a second level of grouping and here we can add products for example so we will be able to see the gross margin of the products for this customer and then click on ok so now if i open customer it will show me the products included for this customer only so now we can see the gross margin analysis on the level of the customer and in the level of products for this customer and you can add as many levels as you want it's very dynamic and it's very nice now if you go to the right here you will see that all the data for the actuals are zero so actual revenue deduction cost of goods sold and the margin they are all zero why because until now we only created the sales order we still don't have any actual data this is why everything here is zero but if you go to the right you will see that the predicted numbers are there which means that our configuration is correct and predictive accounting is working correctly and here we have the predicted revenue predicted cost of goods sold and predicted margin so for example for fig 01 we have 540 as revenues we don't have deductions here then we have cost of goods sold 508 so the predicted margin on this sales order for this product is 31.50 and as you remember we added a sales discount but we do not see it see it here in the deductions let me open this you will see here that we have only one line item 540 and let's open the second one okay so the first one had no discount we had three items in the sales order one of them had no discount the other has had ten percent and the last one had five percent here it is so in my configuration i am including the sales deductions as part of the predicted revenues in negative it will give us the same result but it's not it's not showing in the sales deductions column this has to do with the configuration of semantic tags so in when you have the financial statement item in the financial statement version you assign it to a semantic tags that will map it to the correct column here for me this is okay because i don't care if i see it in the deductions or if i see it as a part of the net revenue so here it is being added in negative this is why the net is 209 and here we have the gross margin for this item is 39.50 so these are the details of why we have the numbers this is very useful so we have the and we have the overview of the gross margin for every product and then you can also check the details why we have these numbers so if you check here we have the sales order number and we also have the gl account this is very important this is one of the main benefits of using margin analysis in sap is for hana everything is directly mapped to finance we don't have any reconciliation needed we don't need to spend hours or days trying to reconcile the numbers between sales and profitability analysis and finance everything is mapped directly so here we have the sales order number we have the gl account numbers and we have the numbers we can see in the gross margin analysis this is very useful very straightforward so these are the accounts that will be posted when we post the billing and the goods issue and by the way all of these line items are saved in the universal journal i already made a video explaining what is the universal journal if you're not familiar with it so everything is saved in the same table very easy to extract reports from now let's go back to sap gui and to post the goods issue the transaction is vl01n and the shipping point is 1710 selection date we had three items the last one was to be delivered by 22nd i think so we can add 25 here so we can see all the items and enter so here are the three items we have in the sales order now i'm not going to post goods issue to all of them so we can see the difference between the different items when we go to the report for example let's say that from the first item i will deliver 10 the second item i will deliver 30 but the last one i will not deliver anything now let's go to picking and the pick the quantity will be 10 and 20 and then post goods issue now let's display the financial entry that we posted so go to outbound delivery display document flow and here we have the goods issue double click and click on display document document info f5 documents here we have three documents that are posted we have an accounting document controlling and material ledger so let's go to the financial accounting document first and the financial entry is very normal as we know it we have a credit to the inventory and a debit to the cost of goods sold account let's go back the controlling document will have two lines so controlling documents are different from finance we don't have we don't need equal debits and the credits so here we have the lines that move to profitability analysis we have the profitability segment and the profitability segment number i already explained the meaning of profitability segment in the last video so you can review it we have the cost element and we have the values and the quantity now let's go back to our margin analysis report and i will click on go again to refresh and let's open this now as you see we have some actual numbers so the actual numbers we have here are all in negative gross margins in negative why because we only posted the goods issue we didn't post the billing document yet so we still don't have any revenues we only have the cost of goods sold posting so if we open this one for example you will see that we have an actual cost of goods sold of 169 but we don't have any actual sales values yet the first item is zero because we did not receive this item at all and the last one is also in negative so now you see the impact of posting the goods issue posing i got the issue will transfer the cost of goods sold value to the account-based copa or to the margin analysis this is different from costing based in costing based we had to wait until we do the billing document now let's go back and post the billing document and see how this will impact our report to post the billing document the transaction is vf01 and here we have the outbound delivery number enter and we have only the first two lines because the last one is not delivered yet we cannot invoice it so we have the values that are related only to the first two items and i'm going to click on post now let's go back let's first display the financial entries so go to billing document display accounting and here we have two documents we have an accounting document for finance and we have the controlling document for profitability analysis so again the accounting document is the financial entry we have a debit to the customer we have a debit to the discount and we have a credit to the revenue account and for the controlling documents we will have one two three four four lines one for the revenue sales revenue and one for the sales discount for every item so we have the profitability segment here we have the cost element and we have the values and the quantities now let's go back to our report and click on go now open this and now before we open even you can see that for this customer we now we have an actual margin that's positive now let's open the details so for the first item we have zero actuals we didn't issue or invoice it yet for the second item it is fully invoiced and fully issued so here we have an actual revenue of two zero nine we have an actual cost of goods sold and we have an actual margin of 39.5 and as you see on the other side here this is zero now why because once the data move to actual sap settles the data that's in the predicted no data is deleted remember that in sap we never delete any line items but sap is posting the same values in opposite signs and this way the net is zero for the predicted value so if we open the universal journal you will be able to see the lines that were settled in the predictive accounting but here in the report you don't see them anymore now we have zero predicted values but we have actual values for the first item we don't have actuals yet this is why we still have the predicted values so now you see that you will never have duplication in the numbers because you have some data that exists in predicted and actual together they either exist in predicted or they exist in actuals and this is it for the gross margin report you can see that from one lock we can say what is the actual and predicted margins for our customer and you can also see the actual and predicted margin for the products i will remove some filters so you can see all the details this will give you a better idea why this report is really awesome so i will remove the sales order from here go now you will have more results you will see what i mean so we should have more than one customer here you go normally in a real organization you can have many customers here so from one lock for every customer we can say what is the actual margin so we have one here that's losing and also you can see the predicted margin and then if you open you can see for every customer on every product why are we getting these numbers and then you can open again to analyze the sales orders and then you can click on any i column here so if i want to go to the sales order i can click here and click here and it will open the sales order in the same screen so we can do all the analysis we want very easily this is it for the actual value flow from the sales process into margin analysis you should completely understand it by now you also have an overview on predictive accounting in the next video i will give you more details on predictive accounting i will show you the entries in the universal journal and how to identify predictive accounting documents and so on thank you for watching and i'll see you again soon