WALK AWAY FROM THIS SESSION WITH AN UNDERSTANDING OF THE PREDICTION AND COMMITMENT EXTENSION LEDGER FOR SALES AND PURCHASE ORDERS PAGE.
The Extension ledger was introduced with S/4HANA to enable postings to be made that do not affect the main Ledger. Use cases for Extension Ledger, include the creation of what-if postings for scenarios such as the introduction of a new product and the simulation of foreign currency valuation using an exchange rate prior to month-end . In the release of S/4HANA 1809, SAP introduced the Prediction and Commitment Extension Ledger, which enables the posting of Sales Orders (before delivery or billing) to the Universal Journal to aid Revenue and profitability Forecasting (which is traditionally accomplished in Costing Based CO-PA, using Record Type A). This Prediction Ledger can also be used (with limited functionality) for Purchase Order Commitment management.
Watch this pre-recorded webcast with FI/CO expert Paul Ovigele to learn:
· The different types of Extension Ledger and what they can be used for
· The difference between Predictive Analytics and predictive accounting
· How to Set up the Extension Ledger for Prediction and Commitments
· How the Extension Ledger works with Sales Order postings
· How the Extension Ledger works with Purchase Order postings
Watch the pre-recorded webcast:
Q&A from the Webcast:
Q: Can you use the extension ledger for costing-based CO-PA?
No you cannot. Costing Based CO-PA already has similar features and is not integrated with the Universal journal.
Q: Can predictive accounting be activated retroactively?
If "retroactively" means that can you have documents (e.g. Sales Order) posted before you activated Predictive accounting, be relevant for Predictive Accounting, then the answer is no.
Q: How is the extension ledger used with statistical conditions?
You can use the Extension Ledger for statistical conditions by entering the extension ledger in table FCOV_STAT_ACT and you will see an extra document posted along with the billing document.
Q: Is there an impact on the PO commitment when an Invoice is received?
If the PO is GR-relevant, then there is no impact when the GR is received. However, if the PO is not GR-relevant, then the commitment is used up when the invoice is received.
Q: Does Extension Ledger work with returns?
Yes it does, as long as you add the Order Type and Billing Type for returns to the table FINSV_PRED_FKART
Q: Does it support COGS split by cost component structure?
Yes it does. If you have COGS split set up, the predictive posting in the extension ledger will post two documents during a Goods Issue - one will be the normal COGS posting and the other will be for the cost component split.
Q: Is it in the roadmap for SAP to include the cash side for sales or purchase orders (payments)?
I think this solution is more suited for Revenue and Profitability forecasting (just as was done with Record Type A in Cost Based CO-PA) rather than cash flow forecasting. However, that would be a question for SAP directly.
Q: Does extension ledger interacts with Material ledger?
None of the extension ledger functionalities that I am aware of at this point, interact with Material Ledger. However, you should note that this is an evolving feature and therefore could be something that has an ML impact in the future. For example one of the Extension ledger Types "valuation" has not yet been fully developed and could relate to the valuation of inventory.
Q: Predictive accounting - how is it used with in RRB ?
I don't believe RRB is supported at this point.
About the Presenter:
Paul Ovigele has worked as an ERP financials consultant since 1997 in both North America and Europe, specializing in implementing the FI and CO modules along with their integrated areas for companies in various industries.
Paul speaks at numerous SAP conferences, offers strategic and functional-level trainings to companies, and is considered one the leading experts on Material Ledger. Paul is the author of:
• 100 Things You Should Know About Financial Accounting
• Reconciling CO-PA to the General Ledger