SAP CO Material Ledger: CKMLCP and CKMLCPAVR in "S/4 HANA"

Parallel Financial Reporting in Controlling: COGM and Inventory with Different Accounting Principles in "S/4 HANA 2020"

If customers want to have Inventory , COGM and COGS based on different accounting principles, say IFRS and Local GAAP.

It is possible to have parallel COGM at actual cost by running both CKMLCP and CKMLCPAVR.

IFRS-------------->CKMLCP

LOCAL GAAP----> CKMLCPAVR

Depreciation is the main key component of the our cost component structure-OKTZ. So As the IFRS and Local GAAP accounting principles depreciation calculation are vary.

If the depreciation calculation varies then automatically actual COGM also should vary and then finally Closing Inventory also varies from IFRS and Local GAAP point of view.

Example of this is in the Material Ledger, where inventory is depreciated using the local depreciation method. Previously, there was no way to use a parallel valuation and depreciate using a different depreciation method such as for IFRS

Actual costing (ML) is used for both the international valuation according to IFRS, and the local and additional accounting principles. At the end of the period, periodic costing run can be executed.

IFRS point of view: To calculate COGM using the prices in the leading version a periodic costing run needs to be performed.

Local GAAP point of view: To calculate COGM using the prices in the Non leading version a periodic costing run needs to be performed. For this we need to be executed CKMLCPAVR additional versions in their settings by specifying an Local GAAP accounting principle.

In this course, I explained how accounting principles are linked to ledgers(Leading and Non-Leading), then linked with depreciation areas. Those depreciation areas to Cost center accounting in the Parallel COGM configuration and with live test results..