Udemy – SAP S/4 HANA “UPA” : Material Ledger : Transfer Pricing

1. Ledger Design

• 0L – Leading Ledger (IFRS):
  The primary ledger used for statutory reporting under IFRS. All main financial postings are recorded here, forming the legal backbone of the organization’s financial statements.
• 2L – Non-Leading Ledger (US GAAP):
  A parallel ledger that supports reporting under US GAAP. This enables organizations to comply with multiple accounting standards without duplicating transactional data.
• 4G – Ledger for Group Valuation (IFRS):
  Dedicated to group valuation under IFRS, this ledger eliminates internal profits from intercompany transactions, ensuring accurate and compliant consolidated group reporting.
• 5P – Ledger for Profit Center Valuation (IFRS):
  Used for internal management reporting, this ledger values transactions at transfer prices between profit centers, supporting detailed profitability analysis and internal performance measurement.

2. Currencies and Valuation Setup

SAP S/4HANA enables organizations to value inventory and cost of goods sold (COGS) in multiple currencies and from different perspectives, supporting both external and internal reporting requirements. The main currency and valuation types are:

• Company Code Currency (Local):
  • 10: Legal Valuation (statutory view)
  • 11: Group Valuation (eliminates internal profits)
  • 12: Profit Center Valuation (internal transfer prices)
  • 30: Legal Valuation
  • 31: Group Valuation
  • 32: Profit Center Valuation
  • 40: Legal Valuation
  • 41: Group Valuation
  • 42: Profit Center Valuation
  • 50: Legal Valuation
  • 51: Group Valuation
  • 52: Profit Center Valuation
  • 60: Legal Valuation
  • 61: Group Valuation
  • 62: Profit Center Valuation
  • “Highly recommended for all Finance, Accounts, and Management Accounting professionals, especially for those working as SAP CO module consultants.”