Cost Element creation - MDG on S/4 HANA

[titu4mdg]

Hi Experts,

We are implementing MDG 1909 on S/4 HANA cloud single tenant edition. This is the first project I am working on MDG sitting on S/4 HANA cloud. As I understand in S/4 HANA, G/L Account and Cost Element are merged into one t-code from the backend. I have below Qs on how to create Primary and Secondary Cost Element through MDG UI in S/4 HANA 1909. Kindly help.

1) As G/L Account and Cost Element are merged into one tcode(FS00), should we only use "Financial Accounting Governance --> Create G/L Account Centrally" UI for creating both Primary and Secondary Cost Element ? If yes, then what is the purpose of having "Financial Controlling Governance --> Cost Element" UI, I am little confused seeing two UIs(one through Financial Accounting and other one through Financial Controlling).

2) As I understand that, G/L account will always be created in FI once we create any Primary Cost Element in CO. So, should I use "Financial Accounting Governance --> Create G/L Account Centrally" UI for creating G/L Account and Primary Cost Element both?

3) Should I use "Financial Controlling Governance --> Cost Element" for creating Secondary Cost Element? If yes, how will a G/L Account be created parallely in FI, after I create the Secondary Cost Element though this Financial Controlling UI in CO?

4) Which UI to use to create Hierarchies for Primary and Secondary Cost Element?

Kindly help me have the answers.

Regards,

Titu

[former_member360870 · Accepted solution]

Hi Titu,

as you mentioned in your last reply that MDG_S4_FINANCIALS_8 is nott activated in your system.

This means that the merge of Cost Element into G/L Accounts is not activated in MDG-F and you are still using the old ECC logic with regard of Cost elements and G/L Accounts. As a result, you can maintain cost elements the same way as before using the role for Financial Controlling Governance.

Even if the BF MDG_S4_FINANCIALS_8 is activated in your system you will find Cost Element under Financial Controlling Governance role, however when you would than open an existing Cost Element, than the G/L Account system single object maintenance would appear. By that please consider that Cost element entity still will exist in the system in this case since it is necessary when Cost Element to ECC is replicated, but the maintenance happens through G/L Account SOM UI, or you can also use file upload to maintain Cost Element entity.

By the way, for the Controlling Governance there is also new PFCG menu role SAP_MDGF_CTR_MENU_SFIN_01 for the merge scenario.

I hope this explanation helps your further.

Best regards,
Attila Toth
SAP Product Support

[titu4mdg · Accepted solution]

Thanks Attila for all your help.

Regards,

Titu.

[former_member106]

Hi titu4mdg ,

Please find the answers below

1) As G/L Account and Cost Element are merged into one tcode(FS00), should we only use "Financial Accounting Governance --> Create G/L Account Centrally" UI for creating both Primary and Secondary Cost Element ? If yes, then what is the purpose of having "Financial Controlling Governance --> Cost Element" UI, I am little confused seeing two UIs(one through Financial Accounting and other one through Financial Controlling).

Ans : If you are using S4 HANA and if Universal Ledger is activated (check this link), then creation of GL accounts through 'Create G/L account Centrally' is the right way to to. The other UI is also comes, because, always the old Business functions are activated and will be available. This has to be controlled using the right role assignment.

2) As I understand that, G/L account will always be created in FI once we create any Primary Cost Element in CO. So, should I use "Financial Accounting Governance --> Create G/L Account Centrally" UI for creating G/L Account and Primary Cost Element both?

Ans: Yes, in case Universal Ledger accounting is activated. Check the link in Q 1's answer.

3) Should I use "Financial Controlling Governance --> Cost Element" for creating Secondary Cost Element? If yes, how will a G/L Account be created parallely in FI, after I create the Secondary Cost Element though this Financial Controlling UI in CO?

Ans: Both are created together and replicated together, in case of S4, if Universal Ledger accounting is activated

4) Which UI to use to create Hierarchies for Primary and Secondary Cost Element?

Ans: You can check this role SAP_MDGF_CTR_SPEC_07 for the hierarchy UI configuration details.

Regards

Senthil

[titu4mdg]

Hi Senthil,

Thanks for your reply.

But the answers were not very clear to me. I think "universal journal comes default with S/4 HANA for Financial Accounting and Controlling, that's why GL Account and Cost Element are merged together in S/4 HANA. It is activated in our case also. Would be a kind help, if you get little more specific and elaborate in your reply.

Let me repost my Qs in more simple way as follows:

1) Can I create BOTH Primary and Secondary Cost Element through "Financial Accounting Governance --> Create G/L Account Centrally" UI ? I know, Primary Cost Element can be created through this G/L Account UI, but not sure about the Secondary Cost Element because, I do not see any Cost Element Categories to be chosen in this UI(when I go there) that are relevant for Secondary Cost Element. If you still think YES, it can be created through this UI, please elaborate why you think so.

2) Can I use "Financial Controlling Governance --> Cost Element" UI to create Secondary Cost Element? YES or NO? looks like, this UI should work for creating Secondary Cost Element in MDG as I can see all the Cost Element Categories appearing in this UI that are relevant to Secondary Cost Element. I am still not completely sure, that's why asking.. Please advise.

3) this Question is dependent on the answer of Q# 2), if the answer is YES, then I would like to know if "universal journal approach already comes with SAP S/4HANA" then, Why has SAP given TWO UIs(mentioned below) to create Cost Elements(Primary and Secondary)---- one for creating Primary and the other is for creating Secondary Cost Element ? Kindly advise.

a) Financial Accounting Governance --> Create G/L Account Centrally

b) Financial Controlling Governance --> Cost Element

4) If I can use "Financial Controlling Governance --> Cost Element" UI to create Secondary Cost Element(CO) successfully, then how will we create the corresponding G/L Account in FI and associate it with the Secondary Cost Element unlike the other UI("Financial Accounting Governance --> Create G/L Account Centrally") which we use to create Primary Cost Element.

Not sure, if I have been able to explain what I am looking for...kindly revert back.

Regards, Titu

[former_member360870]

Hi Titu Dat,

as MDG_S4_FINANCIALS_8 is not activated in your System, you are basically using MDG-F according to the old ECC model, the same way as in previous MDG-F releases. This also means that Cost element (CELEM entity) is maintained the same way under Financial Controlling Governance -> Cost Element.

Best regards,
Attila Toth
SAP Product Support

[former_member360870]

Hi Titu,

first of all MDG_S4_FINANCIALS_10 does not exists in MDG 1909, so I do not know what do you mean with that.

When MDG_S4_FINANCIALS_8 is activated there shoul dbe new UIBB MDGF_0G_FI_ACCOUNT_CTRAREAS in the G/L Account UI available, where you can maintain both, primary and secondary cost element.

Best regards,
Attila Toth

[titu4mdg]

Hi Attila,

Thanks for your reply.

My apology I got confused with MDG_FOUNDATION_10. I can see that, this MDG_S4_FINANCIALS_8 is not activated in our system.

I can see below business functions are currently activated for Finance in our MDG:

MDG_FINANCIALS_3
MDG_FINANCIALS_4
MDG_FINANCIALS_5
MDG_FINANCIALS_6
MDG_FINANCIALS_7
MDG_FINANCIALS_8
MDG_FINANCIALS_9

Let me see and have this activated too and see how it works. I will get back to you.

But, sorry if I am asking this question one more time, why has SAP given that "Financial Controlling Governance --> Cost Element"? What is the purpose of this one? are we not supposed to use this option in MDG 1909?

Regards, Titu

[former_member360870]

Hi Titu,

in MDG-F the merge of Cost Elements into G/L Account is supported from S/4 HANAMDG-F 1909 via the Business Function MDG_S4_FINANCIALS_8.

This means, that if MDG_S4_FINANCIALS_8 is activated you can maintain Cost Elements as G/L Accounts with the relevant Account types and in the single maintenance of G/L Account you have also the possibility to generate primary and secondary cost elements as CELEM entities and no separate single maintenance UI is available for Cost element. Also when replicating to S4 CELEM entity should be not included in the replication model as also in the SAP Note 2021246 stands. However, CELEM entity is still needed, if you want to replicate to old ECC systems, which is the reason, why it is can still maintained within the merged G/L Account UI and also via file upload (e.g. for Cost Element Hierarchy).

If you want to still use the old ECC logic in MDG-F, than you should not activated the Business Function

MDG_S4_FINANCIALS_8 and you can use the old Financial Controlling Governance roles to maintained Cost element. Alo please consider that Financial Controlling Governance not just for maintain Cost elements, but also for other entities there.

Best regards,
Attila Toth
SAP Product Supporto

[titu4mdg]

Hi Attila,

Thanks for your reply.

We are on MDG 1909. So, MDG_S4_FINANCIALS_10 is activated for us.

My question is: Why do you think we can create both Primary and Secondary Cost Element from the same G/L Account UI(Financial Accounting Governance --> Create G/L Account Centrally) in MDG? I do not see any Secondary Cost Element Categories in G/L Account UI, then how will we be able to create Secondary Cost Element from G/L Account UI...I am talking about only MDG UI, not from backend FS00 tcode. I know FS00 can be used for both.

Regards, Titu