(Created as of release SAP S/4HANA 2020)
This blog post provides you enhancement information on Universal Allocation based on SAP S/4HANA 2020 on-premise. If you interested in “Universal Allocation in SAP S/4HANA 1909”, please see SAP blog post. Now let’s focus on the harmonization of allocation functionality within SAP S/4HANA on-premise and you will see how Universal Allocation impacting the area of Financial accounting and Management accounting.
From a planning and budgeting perspective, a first step towards a single allocation model and execution framework was launched as Universal Allocation with SAP S/4HANA 1809 on-premise focusing on Cost center planning. Universal Allocation is new allocation functionality and plan data is stored in ACDOCP table.
With SAP S/4HANA 1909 on-premise, Universal Allocation is enhanced. It is not only used to cover the Actual overhead allocations in addition to the Plan allocations use case that was already delivered with SAP S/4HANA 1809 on-premise. The same Universal allocation is also the basis for molding and executing Top-down distribution of Margin analysis with SAP S/4HANA 1909 FPS01.
With SAP S/4HANA 2020 on-premise, existing Fiori apps are enhanced with new features and new Fiori app “Allocation Flow” is released.
- Universal Allocation does not cover all of the use cases mentioned in the “Vision” slides (“Our vision of Universal Allocation” and “Process harmonization driven by the Universal Journal”).
- There is no new feature on Universal Allocation with SAP S/4HANA 2020 FPS01 and FPS02.
- No future additions on Universal Allocation will be ported down to SAP S/4HANA 2020 on-premise.
Before going into the details, let’s have a look at motivation of Universal Allocation.
As you can see above slide, companies struggle to oversee their complex allocation process and have difficulties to analyze the result. It’s challenging to get a full traceability and clear understanding on how specific costs are allocated through their specific area of responsibility. As a result, there’s a necessity for state-of-the-art visualization for both the allocation process as well as the results after the execution. In addition to the overall need for a process transparency and results traceability, today’s companies need the ability to simulate how would the results look like by changing allocation rules on their financial data.
As you can see above slide regarding “Our Vision of Universal Allocation”, the overall aim is to simplify Allocations by combining various capabilities under one umbrella providing a single architecture for financial and managerial