PURPOSE OF THE BLOG: This Blog helps you to understand the functionality of Automatic Account Determination and Split Valuation in SAP S/4HANA Cloud. This is a Customer use case. Customer here is a S/4HANA Cloud Customer , who wanted to post material cost of free of charge delivery goods not to COGS but to expense accounts.
Customer Issue :
Problem Statement : Customer wants to post material cost of free of charge delivery goods to expense accounts. They want to take a separate cost-processing account depending on the Sale order type of 'Free Of Charge' order. They were trying to add a new Order Type as Z* or want to assign accounts. But in S/4HANA Cloud, it is currently not possible to create a new Order type. SSCUI is missing for Create Order Type . But the requirement from Customer is to post in a different account which can be achieved by the below solution.
Best Practice Scope Item for Free of Charge Delivery of Goods : You could find the standard test script of Free of Charge process at the link : BDA
Proposed solution / deviation from standard script:
The requirement here is to change the G/L Account from COGS to Revenue Account . There is a possibility of changing the G/L account in the Automatic Account Determination for inventory posting against GBB/VAX accounting key. Split valuation also needs to be enabled so that the same material can have separate stock for commercial and sample purpose and can be posted in different accounts.
Let us see the steps involved to realize the same in the system.
1. Create a New Valuation Class
1.1 Go to Configure Your Solution and Search for Valuation Class
1.2 Pick the entry for the Product
1.3 Select Valuation Classes. Click on Configure
1.4 Maintain a new Entry ( Say : Z792 for free goods)
2. Automatic Account Determination
2.1 Go to Configure Your Solution and Search for ‘Account Determination’
2.2 Pick the entry for the General Ledger
2.3 Select Automatic Account Determination and click on Configure
2.4 Provide the below entries:
Area : Sourcing and Procurement
Transaction Key : GBB
Chart of Accounts : YCOA
2.5 In the Step 3 maintain the relevant entries for the new Valuation class( Like : GBB-VBR , VAX , BSX, ZOB..
Here Customer can provide the required GL account for Free of Goods for the new valuation class against GBB/VAX accounting key
3. Enable Split Valuation for the Valuation Area/Plant
IMP: Please be informed that this setting cannot be reverted for the Valuation Area.
4. Create Material
4.1 Create material master with only Valuation Category (Accounting 1) as ‘X’.
4.2 Using Create Material App- Create the same material in the previous step with view Accounting 1 with Valuation Type (Say Commercial and then Sample) and provide
different valuation class for each material with valuation type.(For sample -provide the new Valuation Class – Z972)
5. Complete the process Flow with the below steps:
5.1 Create a stock for both valuation types
5.2 Create Sales Order
5.3 Create Delivery
6. Check the Account determined in the Accounting Document
You could observe that the account provided for the VAX accounting key for the new valuation class is determined in the accounting document created after posting the goods issue.
You could refer this blog if you are looking for advanced account determination or split valuation. For more details on the functionality please refer the below links.