SAP Note

2882025 - Multiple valuation approaches/transfer prices in SAP S/4HANA, on-premise

edition
Component: EC-PCA-TP (Enterprise Controlling > Profit Center Accounting > Transfer Prices), Version: 43,
Released On: 04.11.2024

Symptom
You need information about the activation and use of multiple valuation approaches in SAP S/4HANA, on-premise edition.
This SAP Note deals with the following valuation approaches:
Profit center valuation (transfer prices)
Group valuation
Information about the activation of parallel cost of goods manufactured (COGM) is not part of this SAP Note. For more
information, see SAP Note 3140597.

Other Terms
Profit center valuation, transfer prices, group valuation, profit center, PCA, SAP S/4HANA Finance, ACDOCA, 8KEM, 8KEQ

Solution
This SAP Note provides information about the use of profit center valuation (transfer prices) and/or group valuation in an
SAP S/4HANA system.
!!! Caution: The retroactive introduction and activation of parallel valuation approaches in a productive system,
meaning a system with transaction data that already exists (in the table ACDOCA, for example), leads to inconsistencies in the
system if no adjustments are made in the existing transaction data. This results in error messages, posting terminations, or
system downtimes. Also see SAP Note 3334743.
! The subsequent introduction and activation of profit center valuation and/or group valuation is not possible with
standard functions, but only with the DMLT consulting service (see SAP Note 3476589).
!!! Caution: Deactivation of multiple valuation approaches/transfer prices
You should never deactivate multiple valuation approaches/transfer prices in an SAP S/4HANA release. This is because if
you do so, database tables that contain transaction data with the corresponding currency types (namely, currency type 11, 31,
12, or 32) become INCONSISTENT with regard to Customizing at that moment. In particular, this includes the table
ACDOCA of the universal ledger and tables of the material ledger and document split. SAP currently has no standard tools in
S/4HANA for deleting the currency types and values associated with the deactivation in existing transaction data. However,
this is necessary since otherwise errors and terminations in the form of short dumps can occur during subsequent processes.
If you are interested in deactivation, contact DMLT/SLO (see SAP Note 481938).
Even if the deactivation is transported accidentally to an SAP S/4HANA system by means of a transport of the table TKA01
(field CVACT is initial), the system can be inconsistent even in the case of a fast subsequent transport to correct this (TKA01-
CVACT <> initial). This is because if just one data record in which the currency type 11, 31, 12, or 32 is not filled is posted with
the deactivated setting (TKA01-CVACT = initial), an inconsistency arises in the transaction data. In this case, report an
incident under the component FI-GL-GL-X, where your situation can be checked in the context of chargeable consulting.
!!! Caution: Concept of an early activation for future use (Greenfield)
In a Greenfield system, multiple valuation approaches/transfer prices should not be activated in advance for later use to
circumvent the current constraint (no subsequent introduction and activation in SAP S/4HANA with existing transaction data
with standard SAP functions). If activation is incomplete, undesired side effects and even errors may occur during postings
because the system may request settings or field contents if you have activated multiple valuation approaches/transfer prices.
If you decide to activate a multiple valuation approach, this should be a planned, complete activation that must also be tested
thoroughly.
! The subsequent introduction and activation of profit center valuation and/or group valuation is not possible with
standard functions, but only with the DMLT consulting service (see SAP Note 3476589).
Multiple valuations are highly integrated with various SAP applications. Therefore, you should consider the
following before activation:
In a test system, carefully analyze whether and which multiple valuation approaches you actually need before using them
in a productive system.
A maximum of three currency fields is available for the operational inventory valuation of the materials in the material
ledger. Before you implement the profit center valuation or group valuation, you must therefore first check which
currencies are required for the legal requirements in the inventory valuation.
! If you have maintained the profit center valuation and/or group valuation in the currency and valuation profile, the
valuation MUST also exist in the material ledger .
Revenue recognition of SAP Revenue Accounting (RAR / FI-RA):
As of SAP S/4HANA, RAR also performs a calculation in other integrated local currencies (LC2 and LC3) in addition to
the local currency (currency type 10). If the integrated local currencies contain currency types of the profit center
valuation or group valuation, the system issues error messages during processing. The corresponding currency types
must therefore be deactivated in customizing for RAR.
SAP Retail: Customers with SAP Retail could not use the material ledger and therefore the transfer price functions in
ERP because they had their own material masters. In SAP S/4HANA, the material ledger is always active for inventory
valuation, that is, also for SAP Retail customers. However, SAP Retail customers may experience functional restrictions
when they use transfer prices because, for example, for structured articles (such as 1 pallet with various articles), the
splitting of the individual materials is technically implemented using the external value (field EXWRT). The field
EXWRT is also used for the technical determination of the transfer price. It is therefore impossible to use both functions
at the same time. The optional actual costing can currently be used for all valuation views only with restrictions. This will
gradually change.
Functions with the use of an external value (for example, SAP Retail): In general, all functions that use an external value
(EXWRT/EXBWR) may disrupt the functions of multiple valuations (profit center valuation/transfer prices - group
valuation).

Definition of terms
Currency: For example, company code currency (currency type 10)
Valuation: legal valuation (0), profit center valuation (2), group valuation (1)
Multiple valuation approach: Profit center valuation or group valuation
Currency type: For example, '10' = legal company code currency or '30' = legal group currency. In combination with the
valuation or valuation view, for example, WT '11' = company code currency group valuation or '32' = group currency in profit
center valuation.

For more detailed information about the settings, see the following explanations.
Overview:
- Currency and valuation profile
- Currency settings in the universal journal
- Controlling
- Material ledger (operational inventory valuation) and actual costing
- Asset Accounting
- Classic Profit Center Accounting (PCA)
- Transfer pricing for MM movements
- Account determination
- Sales and Distribution - pricing for billing documents
- Product Cost Planning
- Profitability analysis
- Activation of transfer prices
- Messages of message class FINS_ACDOC_CUST

Currency and valuation profile

In the currency and valuation profile (C&V profile), you determine which valuation approaches are managed in which
currencies throughout the SAP system. The legal valuation approach must be managed in company code currency (currency
type 10) and is fixed. You can decide whether the profit center valuation approach and the group valuation approach are
managed in the company code currency (currency type 10) or in the group currency (currency type 30).
To ensure a consistent update of the data, it is absolutely essential that you use currency type 30 or currency type 10 as the
controlling area currency in cases where there is an N:1 relationship between the company code and the controlling area.
However, SAP Note 876502 enables you to maintain the multiple valuation with currency type 10 for a controlling area
currency with currency type 30 in the C&V profile. This is of interest if your management requires the multiple valuation
approaches in company code currency.
Once you have defined the C&V profile (transaction 8KEM), you must assign it to a controlling area (transaction 8KEQ).
Customizing -> "SAP Reference IMG -> Controlling -> General Controlling -> Multiple Valuation Approaches/Transfer Prices
-> Basic Settings -> Maintain Currency and Valuation Profile" and "-> Assign Currency and Valuation Profile to Controlling
Area". (Transactions 8KEM, 8KEQ)

If you include the profit center or group valuation in the C&V profile, you must use it in the universal journal or in classic
Profit Center Accounting. Otherwise, maintenance in the C&V profile makes no sense.
! Transaction FINSC_LEDGER You can see the currency types in profit center or group valuation in transaction
FINSC_LEDGER only if a C&V profile is assigned to at least one controlling area (the profile does not have to be active).
Please do not create currency types in profit center valuation or group valuation manually in transaction FINSC_LEDGER. If
this has already been done, please refer urgently to SAP Note 3301170 - General Ledger Customizing (FINSC_LEDGER):
Consequence of modified currency types delivered by SAP".

Currency settings in the universal journal

In the universal journal, multiple valuation approaches are managed in the same way as other, freely definable FI currencies.
You maintain the customizing for the currency settings in transaction FINSC_LEDGER.
Caution: You can see the currency types in profit center or group valuation only if a C&V profile is assigned to at least one
controlling area (the profile does not have to be active). Please do not create currency types in profit center valuation or group
valuation manually in transaction FINSC_LEDGER. If this has already been done, please refer urgently to SAP Note 3301170
- General Ledger Customizing (FINSC_LEDGER): Consequence of modified currency types delivered by SAP".

You can either

- update the multiple valuation approaches in addition to the legal valuation approaches in the leading ledger or a non-
leading ledger (mixed ledger, multiple valuation ledger)
- or create a separate valuation ledger for the multiple valuation approach (single valuation ledger).

Mixed ledger (multi-valuation ledger)

If you use multiple valuation approaches in addition to the legal valuation approaches in a common ledger, this reduces the
storage requirement as well as the time and effort involved in closing operations. In this case, no valuation view is assigned to
the ledger in transaction FINSC_LEDGER.
The currency types (for example, 12/32 or 11/31) are maintained per ledger and company code. The point at which the
multiple valuation approaches are to be maintained depends on the SAP S/4HANA release. Up to and including SAP
S/4HANA Release 1709, the valuation approach that is managed in the material ledger must be in one of the first four
currency fields. Therefore, besides the two currencies set by the system (local currency and company currency), only the first
two freely defined currencies remain for a profit center valuation or group valuation. All freely definable currencies can be
used for operational inventory valuation only as of SAP S/4HANA Release 1809.
You have to maintain both currency types for each valuation approach in the freely definable currencies, that is, 12 and 32 or
11 and 31.

The freely defined currencies that are maintained per ledger and company code are always translated from the delivered
valuation approaches. Example: If, for example, the profit center valuation is maintained in group currency (32) in the C&V
profile, currency type 12 is calculated from currency type 32. (See also SAP Note 2581071.)

The integrated FI currencies maintained per ledger and company code can contain only currency types that exist as freely
definable currencies.
Example: If, for example, the profit center valuation is maintained in group currency (32) in the C&V profile, currency type 32
should be set as the 2nd FI currency or 3rd FI currency (currency type of the 2nd or 3rd currency in FI (BSEG)).
We recommend that you maintain the currency views and valuation views maintained in the C&V profile as the 2nd or 3rd FI
local currency in transaction FINSC_LEDGER (please scroll all the way to the right on the screen). The reason for this is that
only these FI currencies are integrated in some applications (for example, Asset Accounting).
Moreover, you need the integrated FI currency if, for example, you want to execute manual postings separately in FI in the
multiple valuations in transaction FBB1, for example. This restriction no longer exists with the "Post Currency Adjustments"
app because this app can be used to also make adjustment postings in freely defined currencies (that are not integrated with
FI, are not BSEG currencies).
Ultimately, however, your company and its requirements dictate how the 2nd and/or 3rd FI currency is filled (for example, if
hard currencies are more important than the profit center valuation or group valuation).
Separate valuation ledger (single-valuation ledger)
In this case, a valuation view is assigned to the ledger in customizing (transaction FINSC_LEDGER). As a result, currency
types 12/32 for profit center valuation and 11/31 for group valuation are automatically displayed in "Company Code Settings
for the Ledger" in the first two currency columns. Technically, these are the fields HSL and KSL of the table ACDOCA. You
can add other currency types, but only those with the same valuation view. Otherwise, the system issues message
FINS_ACDOC_CUST258.
A separate valuation ledger provides a transparent separation of postings and reporting in the multiple valuation approach.
CAUTION: The separation of the multiple valuation views from the legal valuation in a single valuation ledger is currently not
completely possible due to a restriction in Asset Accounting. For more information, see SAP Note 2554992.
Therefore, you must currently choose one of the following approaches:
- Leading ledger as a pure multi-valuation ledger
- A single valuation ledger for profit center valuation and/or group valuation. In this case, however, you must currently also
include the multiple valuation in the leading ledger. The leading ledger becomes the multi-valuation ledger automatically.
- The leading ledger contains only the legal valuation. There are also other nonrepresentative ledgers as multi-valuation
ledgers that contain the currency types of profit center valuation or group valuation in addition to legal valuation (in the
currency fields ACDOCA-HSL and ACDOCA-KSL).
This SAP Note is updated when the current restriction changes.
Additional information about transaction FINSC_LEDGER
Customizing: SAP Reference IMG -> Financial Accounting -> Financial Accounting Global Settings -> Ledgers -> Ledger ->
Define Settings for Ledgers and Currency Types
(transaction FINSC_LEDGER)
Exchange rate type: Until now, there was a recommendation for the multiple valuation views to maintain the exchange rate
type M because amounts in multiple valuations in other SAP applications are always translated automatically using the
exchange rate type M. If you have set an exchange rate type other than 'M' in transaction FINSC_LEDGER, see SAP Note
2879066.
Source currency type: Refer to SAP Note 2581071 for more information about the use of the source currency type in currency
translation for currency types in profit center valuation or group valuation. If possible, translation always takes place within a
valuation.

A frequently asked question is why, when you activate profit center valuation, both currency types 12 and 32 need to be
maintained in the new currency customizing (transaction FINSC_LEDGER) (similarly, when you activate group valuation,
both currency types 11 and 31).
Although only one currency type is maintained for a valuation approach in the currency and valuation profile, both currency
types of a valuation are necessary for updating data in Controlling. With the introduction of the universal journal, the data
model has been simplified and harmonized. The universal journal uses the ledger approach for general ledger accounting and
for all subledgers. Therefore, in ACDOCA, the currency types in the company code currency and the 'global currency'
(currency 2 in transaction FINSC_LEDGER = controlling area currency) must exist for each valuation view.
If you used multiple valuation approaches in your ERP system, both currency types are automatically transferred to the
currency settings of the universal journal as part of the SAP S/4HANA migration.

Additional information about currency translation in the migration

If multiple valuation approaches were active in your ERP system, both currency types of the valuation (for example, 11/31
and/or 12/32) should be automatically transferred to the currency settings of the universal journal (transaction
FINSC_LEDGER) as part of the SAP S/4HANA customizing migration. Check this in transaction FINSC_LEDGER. Maintain
the currency types manually if they do not exist.
How are the currency types filled during the transaction data migration?
Important: During a data migration from an SAP ERP system to SAP S/4HANA, the profit center information from the tables
of classic general ledger accounting (BSEG) or, if it was active, General Ledger Accounting (new) (tables
FAGLFLEXA/FAGLFLEXT delivered in the standard system) is transferred to the new table ACDOCA of the universal
journal. There is NO migration of data from classic Profit Center Accounting (table GLPCA/GLPCP/GLPCT) to the universal
journal (table ACDOCA).
- For CO-based processes, both currency types were calculated for each valuation (for example, 11/31 or 12/32) in ERP and
updated in the CO tables (COEP and so on). This was done regardless of which currency type was maintained in the currency
and valuation profile. As part of the SAP S/4HANA migration, these values are transferred 1:1 to the universal journal.
- For all other processes, the values are transferred from the tables of classic General Ledger Accounting (table BSEG) or
General Ledger Accounting (new) (table FAGLFLEXA). This means that only the values in the integrated FI currencies
(former transaction OB22) are transferred 1:1 (so 31 or 11, 32 or 12 depending on the setting in the currency and valuation
profile and OB22 for the relevant company code). The values of the currency types additionally generated as free currencies
by the S/4 migration to transaction FINSC_LEDGER are filled according to a complex logic (CL_FINS_NEW_CURR_UTIL
=>SET_BASE_RULE_TO_FILL_CURR), in which different aspects have an influence, for example:
- Fill from the same valuation and the same currency if available -> remain within the valuation approach
- Fill from the same currency/legal valuation if available -> if possible, achieve zero balance for added currency types within
the document.

Controlling
In ERP systems, the multiple valuation approaches were saved in different actual versions (delta versions) in Controlling. In
SAP S/4HANA, the universal journal integrates postings from Financial Accounting (FI) and Controlling (CO). Accordingly,
FI and CO use the same database table (ACDOCA) and must be standardized. The universal journal uses the ledger approach
for general ledger accounting and for all subledgers.
However, some CO transactions still expect the data in the old CO version format. For reasons of compatibility, it is therefore
necessary in SAP S/4HANA both to maintain the versions for multiple valuations and to assign the ledgers to these CO
versions.
Customizing -> SAP Reference IMG -> Conversion of Accounting to SAP S/4HANA -> Preparations and Migration of
Customizing -> Preparations and Migration of Customizing for General Ledger -> Define Ledger for CO Version
or
Customizing -> SAP Reference IMG -> Controlling -> General Controlling -> Manange Multiple Valuation
Approaches/Transfer Prices -> Basic Settings -> Define Ledger for CO Version
Using this activity, you assign general ledgers to controlling versions (CO versions). This means that Controlling reads the
actual data (postings) from the general ledgers you specify here.
CAUTION: We recommend that you manage version "000" as a legal valuation, even if other settings are still possible for
compatibility reasons (for example, for migration customers). The background is that a number of Controlling functions are
available only in leading version "000".

Material ledger (operational inventory valuation) and actual costing

Multiple valuation approaches or transfer prices refer to different valuation approaches for material movements and
inventories and their sales. With regard to material price determination, a distinction must be made between operative
inventory valuation and actual costing.
For a multi-currency-capable and/or multi-valuation-capable inventory valuation, the material ledger is used. This must be
active in S/4HANA (during a migration to S/4HANA, it is automatically set to active).
The operationally valuated inventory is also managed in SAP S/4HANA in the universal journal (table ACDOCA). The
currency types in the material ledger are defined as before in customizing in material ledger types, which in turn are assigned
to the valuation areas (usually the same as the plant). Profit center valuation and/or group valuation should be assigned to a
material ledger type only in the currency maintained in the C&V profile. Currency types 11 and 31 or 12 and 32 cannot
be processed completely in parallel along the value chain (See also Note 2760935.).
Caution:
- ! If you have maintained the profit center valuation and/or group valuation in the currency and valuation
profile, the valuation MUST also exist in the material ledger .
- If you activate profit center valuation/group valuation, you must do this for all valuation areas/plants in all
company codes of the activated controlling area that manage stocks.
- All valuation areas/plants must use one material ledger type!
Customizing -> SAP Reference IMG -> Controlling -> General Controlling -> Manage Multiple Valuation
Approaches/Transfer Prices -> Basic Settings -> Check Material Ledger Settings. Under "Assign Currency Types and Define
Material Ledger Types", you can create material ledger types and assign the desired currency types. In SAP S/4HANA, only
individual characteristics are possible, which is why the columns "CT from FI" and "CO CrcyTyp" are grayed out.

In addition to inventory valuation at moving average price or standard price, you can also perform inventory valuation at
actual costs in the currency types for multiple valuation. For this, actual costing must be activated for the valuation areas. The
activation and use of actual costing is optional.
Further SAP Notes:
- 3040369 - Incorrect fix amounts in parallel valuation after closing material ledger

Asset Accounting
As of SAP S/4HANA 1.0, Asset Accounting (new) is available. This replaces classic Asset Accounting.
For each additional valuation approach in Asset Accounting, you must create a separate valuation area. The valuation type is
assigned a currency type, which defines the currency and the valuation. There must be a separate depreciation area for each
currency/value approach and for each ledger. For this reason, you may have to create a new chart of depreciation for new
company codes with new currency settings.
Customizing -> SAP Reference IMG -> Financial Accounting -> Asset Accounting -> General Valuation -> Currencies ->
Specify the Use of Parallel Currencies
See SAP Note 2554992 for the scenarios supported in FI-AA.

Classic Profit Center Accounting (PCA)

In addition, classic Profit Center Accounting is part of the compatibility scope with limited use rights. For
more information, please see SAP Notes 2269324 and 2993220.
Classic Profit Center Accounting can still be used in SAP S/4HANA until the license expires. If you use classic Profit Center
Accounting, you define which valuation approach is to be used in customizing for classic Profit Center Accounting at
controlling area level (transaction 0KE5).
Note that in classic Profit Center Accounting, only ONE valuation approach is used. This means that if the profit center
valuation is active, the legal valuation approach in PCA is no longer available. The currency field HSL then
corresponds to currency type 12 or 11, and the currency field KSL corresponds to, for example, currency type 32 (if classic PCA
is managed in the group currency) or 31.
If you need to update the legal values by profit center in parallel, you must map this using the universal journal.
Please note also that the update of the transaction currency in classic Profit Center Accounting is not possible if transfer
prices are active.
Earlier, only one currency type was originally filled with data as a rule (the valuation approach from the currency and
valuation profile). The other currency type was translated with the exchange rate type 'M' on the posting date when the classic
PCA document was generated. If the currency types in the profit center valuation or group valuation are part of the universal
journal, the values are translated in accordance with the currency settings of transaction FINSC_LEDGER and are available
with these values when the classic PCA document is created.
Customizing -> SAP Reference IMG -> Enterprise Controlling -> Profit Center Accounting -> Basic Settings -> Maintain
Settings for the Controlling Area. (transaction 0KE5)
or Customizing -> SAP Reference IMG -> Enterprise Controlling -> Profit Center Accounting -> Basic Settings -> Controlling
Area Settings -> Activate Direct Postings -> Set Control Parameters for Actual Data
SAP Notes:
2996758 - Error Message KM460 in Transaction: 0KE5
Transfer pricing for MM movements
For the settlement with transfer prices, pricing must be set.
Customizing -> "SAP Reference IMG -> Financial Accounting -> General Ledger Accounting -> Business Transactions ->
Parallel Valuation Approaches/Transfer Prices -> Basic Settings for Pricing"
(and) "-> Advanced Settings for Pricing"
For actual postings, only the delivered transfer price variant "000" can be used. Maintain suitable pricing procedures and
conditions. Create condition records for the transfer price conditions.
In order to analyze the transfer pricing during the activation phase or to find incorrect settings, you can use the condition
analysis. You can activate this in customizing in the "Basic Settings for Pricing" at transfer price variant level using the
"Condition Analysis" indicator. This indicator activates client-wide analysis. Alternatively, you can set the SET/GET
parameter DIA to X in the user master record to control the activation of the analysis for each user.

Account determination
Accounts for internal goods movements
When you use the profit center valuation view, the flow of goods between profit centers is mapped using additional line items
for internal revenues, internal costs, and inventory changes. You have to maintain the account determination for these line
items. For the profit centers to be displayed correctly, the G/L accounts must not be created as cost elements. The profit
center would be derived from the real account assignment because a cost element requires a real account assignment object.

Customizing -> SAP Reference IMG -> Financial Accounting -> General Ledger Accounting -> Business Transactions ->
Parallel Valuation Approaches/Transfer Prices -> Settings for Internal Goods Movements -> Define Account Determination
for Internal Goods Movements
Account for production variances
When you use transfer prices for cross-plant production, a special account is required in order to settle production variances
to the sending profit center rather than to the receiving profit center.

Customizing -> SAP Reference IMG -> Financial Accounting -> General Ledger Accounting -> Business Transactions ->
Parallel Valuation Approaches/Transfer Prices -> Settings for Internal Goods Movements -> Define Acct Determination for
Prod. Variance for Delivery to Another PrCtr

Value approach clearing account

Receivables and payables are posted identically in all valuation views, that is, with the value of the legal valuation view
because payment is made in this amount. If the offsetting account (revenues, expenses, and so on) contains a value that
differs from that of the legal view in the profit center valuation and/or group valuation, the system posts the difference to a
valuation approach clearing account. Note that you must not create the value approach clearing account as a cost element.
Maintain the valuation approach in Customizing -> SAP Reference IMG -> Controlling -> General Controlling -> Manage
Multiple Valuation Approaches/Transfer Prices -> Level of Detail -> Define Valuation Clearing Account.

SAP Note 2701813 - GLT2 201 for company code clearing lines and valuation approach clearing lines

Sales and Distribution - pricing for billing documents

Multiple valuation approaches can be used both for sales to external customers and for sales to affiliated companies. For this
purpose, you must include the condition categories with the relevant control in the pricing procedures. The following
condition categories are provided for this:
Condition category 'b' for conditions used to determine group cost of goods manufactured. The value in group valuation is
automatically read from the material ledger. In the standard SAP system, condition category KW00 is delivered for this
purpose.
Condition category 'h' for conditions to determine the cost of goods manufactured from the profit center valuation view. The
value in profit center valuation is automatically read from the material ledger. In the standard SAP system, condition category
PCVP is delivered for this purpose.
Condition category 'c' for conditions to determine the price from the profit center valuation view. You need to maintain
condition records (prices) for this condition category. In the standard SAP system, condition category PC00 is delivered for
this purpose.
Condition category 'n' for conditions to determine the cost of sales from the profit center valuation view at the time the
customer billing document is created for third-party order processing.

Product Cost Planning

The multiple valuation approaches in the material ledger can either be maintained manually or determined using product cost
planning. Product Cost Planning offers the option of determining standard costs for each valuation approach (legal, group,
profit center) and updating these in the material ledger. To determine the costs in the corresponding valuation views, you can
create corresponding costing variants in customizing. The costing variant is assigned a costing type that determines which
valuation approach costing is calculated. The costing type similarly determines whether the standard price of the
corresponding valuation approach can be updated by the costing variant. The standard prices in the various valuation views
are updated using the known logic (allow marking, mark, allow release, release).
Customizing -> SAP Reference IMG -> Controlling -> Product Cost Controlling -> Product Cost Planning -> Material Cost
Estimate with Quantity Structure -> Define Costing Variants
Customizing -> SAP Reference IMG -> Controlling -> Product Cost Controlling -> Product Cost Planning -> Material Cost
Estimate with Quantity Structure -> Costing Variant: Components -> Define Costing Types
When calculating the values for the profit center valuation view, pricing is to be taken into account for profit center changes,
in the same way as for the actual allocation. In Customizing under "Controlling -> Product Cost Controlling -> Product Cost
Planning -> Material Cost Estimate with Quantity Structure -> Define Costing Variants", set the "Cost Beyond Profit Center
Boundaries" indicator in the "Quantity structure" folder. This indicator is displayed only if the costing type is set for profit
center valuation.
The costing version controls which transfer price variant from Profit Center Accounting is to be used as part of costing.
Customizing -> SAP Reference IMG -> Controlling -> Product Cost Controlling -> Product Cost Planning -> Selected
Functions in Material Costing -> Define Costing Versions.
The group costing saves the valuation differences from the legal and profit center valuations in additional cost components
for the cost of goods manufactured. You must create these cost components for the cost of goods manufactured in addition to
the usual cost components. You must also identify them as such on the detail screen for cost components for the cost of goods
manufactured using the "Delta Company Code" or "Delta Profit Center" field. Customizing -> SAP Reference IMG ->
Controlling -> Product Cost Controlling -> Product Cost Planning -> Basic Settings for Material Costing -> Define Cost
Component Structure.
In this step, you specify that the cost components of the material costing, sales order costing, or order BOM costing are to be
updated both in the currency of the company code, and in the currency of the controlling area. This processing requires that
the "All Currencies" indicator is set as the control indicator for the controlling area. Customizing -> SAP Reference IMG ->
Controlling -> Product Cost Controlling -> Product Cost Planning -> Selected Functions in Material Costing -> Activate Cost
Component Split in Controlling Area Currency.

Costing-based profitability analysis

By activating the profit center valuation, you can analyze both external sales and internal sales between profit centers (such as
transfers between two plants or material withdrawals) in Profitability Analysis for transfer prices. When you activate the
profit center valuation, line items with profit center valuation are created in addition to the valuation approaches with legal
valuation. As a result, the data volume roughly doubles during the actual data update.

a) In customizing for maintaining the operating concern, you configure whether the profit center valuation is managed as an
additional valuation approach in CO-PA. When you generate the operating concern, the required data structures are then
created for this. Customizing -> SAP Reference IMG -> Controlling -> Profitability Analysis -> Structures -> Define Operating
Concern -> Maintain Operating Concern

b) The group valuation approach is managed in the data structures of the legal valuation in additional value fields. To control
the costs and revenues in the different views separately, you must create additional value fields and assign them to the data
structures. The field contents must be filled using the CO-PA user exit because an entry using value field assignment is
impossible. The profit center valuation is updated in a separate ledger. No separate value fields are required.

c) Assign the value fields of the profitability analysis to the accounts for internal goods movements between profit centers
(from transaction 0KEK). The quantities of the internal goods movements can similarly be transferred into the corresponding
quantity fields. Customizing -> SAP Reference IMG -> Controlling -> Profitability Analysis-> Flows of Actual Values ->
Multiple Valuation Approaches/Transfer Prices -> Assign Accounts for Internal Goods Movements

d) Assign the SD conditions to the corresponding value fields in Profitability Analysis. Customizing -> SAP Reference IMG ->
Controlling -> Profitability Analysis -> Flows of Actual Values -> Transfer of Billing Documents

e) The profit center valuation in Profitability Analysis must be activated for each controlling area. Customizing -> SAP
Reference IMG -> Controlling -> Profitability Analysis -> Flows of Actual Values -> Multiple Valuation Approaches/Transfer
Prices -> Activate Profit Center Valuation

Activate transfer prices

The activation of the C&V profile for a controlling area is the final step in customizing for multiple valuation
approaches/transfer prices. Activate the C&V profile only after you have made all the settings described above. Use the check
function before activating.

Customizing -> SAP Reference IMG -> Controlling -> General Controlling -> Manage Multiple Valuation
Approaches/Transfer Prices -> Activation -> Multiple Valuation Approaches: Check/Execute Activation
Relevant notes:
3408229 - 8KEP: C+V profile check - K_CVPROF_CHECK_ACTUAL_COSTING not executed

Messages of message class FINS_ACDOC_CUST

- FINS_ACDOC_CUST291 "Currency type &1 missing for ledger &2 / company code &3":
In a Greenfield system, you must follow the instructions in the message and maintain the currency. See also the above
paragraph "Currency settings in the universal journal". In a migrated system, you must not add an additional currency
with a valuation that differs from the legal valuation. For more information about this topic, see SAP Note 2334583
'Introduction of new currencies in SAP S/4HANA'.
- FINS_ACDOC_CUST227 "Currency/valuation profile not active in contr. area &3 (CO version &1)":
A CO version exists for the profit center valuation (transfer price valuation) or for the group valuation. However, no currency
and valuation profile has been assigned or activated in the specified controlling area. In a Greenfield system, you must follow
the instructions in the message. In a migrated system, you must not subsequently activate the currency and valuation
profile. The subsequent implementation of multiple valuation approaches in a productive SAP S/4HANA
system is currently not yet supported.
This also applies to messages FINS_ACDOC_CUST350 "No currency and valuation profile assigned to controlling area &1"
and FINS_ACDOC_CUST356 "No valuation profile assigned to CO area &1 (Ledger &2 CCode &3)".

Error: Message FINS_ACDOC_CUST227 incorrectly refers to the term 'transfer price valuation', even if it is a version for a
group valuation.
- FINS_ACDOC_CUST284 Crcy types of ledger &1/CoCode &2 don't contain val. view "group val."
FINS_ACDOC_CUST285 Crcy types of ledger &1/comp.code &2 don't contain val. view "PrCtr val."
In a Greenfield system, you must follow the instructions in the message and maintain the currency. See also the above
paragraph "Currency settings in the universal journal". In a migrated system, you must not add an additional currency with a
valuation that differs from the legal valuation. For more information about this topic, see SAP Note 2334583 'Introduction of
new currencies in SAP S/4HANA'.
- FINS_ACDOC_CUST586 Currency type &1 has a wrong valuation &3.
FINS_ACDOC_CUST587 Currency type &1 has a wrong plain currency type &3.
See SAP Note 3301170 "General ledger Customizing (FINSC_LEDGER): Consequence of modified currency types delivered by
SAP".

Attributes
Key Value

Other Components Enterprise Controlling > Profit Center Accounting > Actual Data (EC-PCA-ACT)

Other Components Financial Accounting > General Ledger Accounting (FI-GL)

This document is referenced by

SAP Component Title
Note/KBA

3476589 Parallel Currency Transformations in S/4HANA

861965 EC-PCA-TP Overview of currency settings for transfer prices

3443265 FI-GL-GL Ledger Settings for Group/Profit Center Valuation and/or Parallel Cost of Goods Manufactured
without Universal Parallel Accounting

3334743 FI-GL-GL S/4HANA / SFIN 720/730: Is a subsequent implementation and activation of a Profit Center
Valuation and/or Group valuation possible?

2548778 FI-GL-GL FINS_ACDOC_CUST messages regarding parallel valuations (Group valuation / Profitcenter
valuation)

3115663 FI-GL-GL-A Difference between the amount in legal valuation compared to the amount in profit center valuation

458543 EC-PCA-TP TP: Overview of user exits

3040810 CO-PC-ACT S/4HANA Material Ledger Migration - Do not allow introduction of Group- / Profit Center-Valuation

2184567 FI-CF Central Finance: Frequently Asked Questions (FAQ)

175758 EC-PCA-TP Deactivating transfer prices/multiple valuation approaches

2842890 FI-GL FAQ SAP S/4HANA Finance