Throughput Accounting Conclusion

Throughput Accounting (TA) with SAP – Conclusion

Make it easy


In this post, I am going to complete the tool for Throughput Accounting (TA) in SAP that we started in the previous post. At first, let´s complete the part called investment (I). Now, so far we have evaluated WIP and raw materials as well as unfinished and finished goods. The next part of investment (I) is assets. (For more information see “The Haystack Syndrome” by Dr E.M. Goldratt 1990 or “Throughput Accounting” by Thomas Corbett 1998.)


Fortunately, there are standard function modules, which can be used to evaluate these assets. For this purpose, I chose “BAPI_GL_GETGLACCPERIODBALANCES“. It is easy to use; the input parameters are clear. You also get an internal table with all the necessary balances. These can be summed in the final value of assets in the financial period.

Here is the ABAP class for this action :

However, the basic question is: which ledgers should we take into account? The clue can be found in “Throughput Accounting” by Thomas Corbett 1998 p 39 Quote:…..

The definition of this measurement might cause some confusion:”All the money the system invests in purchasing things the system tends to sell.” Do the companies intend to sell their machines, buildings and so on? If we examine this question from the stockholder´s perspective, if the company does not generate the expected profitability he will sell his stock, which is the same as selling his part of the machines, buildings and so on….

You should definitely call up your colleague from the finance department to find out which ledgers in your particular case need to be evaluated. Once the ledgers are known, you get them using the next standard function module from the SAP.

Here is the ABAP class for this action :

This class is at the same time the superclass for ZCL_TA_I_LEDGER mentioned above and in this hierarchy at the top is placed the class ZCL_TA_INVESTMENT.

Here is the ABAP coding:

All these classes can be used together in order to gain the part of investments (I) for purpose TA. For instance this way:

Here is the ABAP coding:

Now we have the complete ABAP code to evaluate investments (I) as a part of throughput accounting (TA). Now, it is time to gain the next two measurements: Throughput (T) and Operating expense (OE). Let´s start with some Quotes from “Throughput Accounting” by Thomas Corbett 1998:

p.29 …… Throughput (T) is defined as all the money that comes into the company minus what it paid to its vendors….

p.31 … Operating Expense (OE) – All the money the system spends in turning investment into throughput…

It leads us to the same logic as in the case of assets. We can use the same principle and the same function module BAPI_GL_GETGLACCPERIODBALANCES. The difference will only be the use of the retrieved internal table. For T, we will use credits and debits for OE. Once again, you should discuss it with your colleagues in the financial department.

And that is it. We now have all the parts of throughput accounting. They can be used for making the right decisions in the TOC way, using simple common sense.