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Speaker BadgeTom King is a Senior Business Analyst at Milliken and Company, a leading innovative manufacturer of specialty textiles, floor covering, and chemicals based in Spartanburg, South Carolina with manufacturing facilities in the US, Mexico, UK, Belgium, France, China, India and Australia. He has more than 30 years of experience at Milliken working with manufacturing systems and product costing systems. Since 2007 Tom has been the lead CO analyst on the SAP FI/CO team and heavily involved with his company's SAP implementation worldwide. His knowledge of manufacturing and product costing played a major role in the design of controlling solution in Milliken. He has an article published by Financials Expert and has presented at ASUG. Tom is a graduate of Northwestern University.

Tom is a featured speaker at the Controlling 2018 conference. 

 

Moving to S/4HANA: Random Personal Thoughts About Controlling

Tom KingMy company is in the early stages of making a move from ECC 6.0 to S/4HANA. I thought it would be interesting to give you my initial impressions about what I have found out about Controlling in the new system. Since we started out with ECC 6.0, we don’t have the baggage of things like “classic G/L” versus “new G/L”, and frankly, I couldn’t explain the differences there. We first got access to an S/4HANA sandbox for a “test drive” of the system. This is a very important step in the transition and has helped me get a much better understanding of how the new system works than through looking at documentation and watching training videos. What follows are my initial impressions based on my experiences in the sandbox. Hopefully, this will be useful for those of you who are either making the move or are contemplating making the move.

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Activity Type Post Blog Series Recap

TomKingOver the last seven weeks expert Tom King has shared detailed information on activity types in SAP. Miss a post? This blog post provides a recap and link to each post in the series.

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Activity Postings 7: Category 5 Activity Types and Posting

TomKingWe come to the end of our tour of activity type posting with category 5 (Target=actual allocation).  This one is the low-fat frozen yogurt of activity types.  It tastes great, but you don’t have to work as hard to keep a trim figure.  This works similarly to the category 2 activity type, but does not require an indirect activity allocation cycle in order to post the activity.

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Activity Postings 6: Category 4 Activity Types and Posting

TomKingCategory 4 activity types are unique in that they do not allow any sort of allocation at all.  They are manually posted like category 1 and category 3 activity types, but that is the extent of it.  The activity stays in the cost center.  You might be saying to yourself, “Why have an activity type that cannot allocate costs between cost objects?  Isn’t that the main purpose of the activity type?”

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Activity Postings 5: Category 3 Activity Types and Posting

TomKingWe have gone into a lot of detail on how indirect activity allocation cycles work with category 2 (indirect determination, indirect allocation) are used.  The main takeaway from category 2 type activities is that the quantity of activity posted is calculated based on information derived from the receiver cost objects.  You either don’t know or find it difficult to determine how much activity should be posted.  What if you do know how much activity should be posted, but don’t want to manually determine how to allocate the posting to other cost objects?  That is where category 3 (manual entry, indirect allocation) activity types come in. 

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Activity Postings 4: Category 2 Activity Types and Posting – Part 2

TomKingPreviously, we discovered how to automate activity type postings using the indirect activity allocation cycle and category 2 activity types.  The example chosen was to use a statistical key figure which was posted to the receiver cost centers as the means for calculating the sender activity type quantities.  This still required some manual postings for the statistical key figure, but the calculation of the activity type quantity and the actual postings were handled automatically when running the cycle.

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Activity Postings 3: Category 2 Activity Types and Posting

 

TomKing

Category 2 activity types are for indirect determination and indirect allocation.  If category 1 activity types are vanilla ice cream, category 2 activities are more like hot fudge sundaes.  There is a lot of power built in to how postings are made with these activity types.

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Activity Postings 2: Category 1 Activity Types and Posting

TomKing

Our journey through activity type postings begins with activity type category 1 (manual entry, manual allocation).  I think of category 1 as the vanilla ice cream of posting activity.  This is the most straightforward method to use and understand.  Activity types defined with this category must be directly posted to a cost center and at the same time have a cost object for the allocation assigned.  Look at the definition of activity type CATEG1 below.  In this case, the actual allocation category is left blank, which means that it will be the same as the plan activity type category.  For CATEG1, that means the actual category will be 1.

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Activity Postings Part 1: Activity Types in Review

TomKingMy company began its odyssey with SAP back in 2007, and I was a charter member of the FICO team by virtue of my work with product costing in our legacy world.  I quickly found out that the way SAP handles costing and controlling was like something from a parallel universe.  The concepts were familiar, but the structures and processes were alien to me.  One of the first items that I ran into was the activity type.  Ah, I thought, a familiar concept! 

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