Going Under the Hood: How SAP S/4HANA Finance Will ...wpc.0b0c.edgecastcdn.net/000B0C/Presentations/FIN2017_Pawar_Goi… · 1 In This Session • Learn how, by using SAP S/4HANA Finance,
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• BPC optimized for SAP S/4HANA impacts to functionality
• Wrap-up
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Real-Time Reconciliation
• BSEG holds only the summarized general ledger values while ACDOCA can hold logistical details
and level of granularity enabling cross-walking of application data across modules
• There is considerable effort spent on reconciling the values between general ledger and sub-
ledger accounts of assets and material
• Reports like asset balances and asset history sheet do not directly reconcile with BSEG or GL
detail report – accountants spend a lot of manual effort to tie the GL with sub-ledgers
• In SAP S/4HANA, because ACDOCA contains the sub-ledger values reconciliation becomes
simpler and in real-time
• During the month when the controlling settlements have not yet been executed, without ACDOCA
accountants have to pull different reports – cost element detail – but with GL & cost element
integration the complete financial statement would be visible using reports like F.01
ACDOCA – Universal Journal
General Ledger Receivables Payables AssetsMaterial Ledger
Profitability Analysis
Overhead Management
Funds Management
Custom Defined
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New Currency Types
• In version 1610, you can configure all
currency types for each ledger and assign
up to eight freely-definable currency types
supplementing the two fixed SAP currency
types (local and global currency)
• The new currencies are converted in real
time for each journal entry according to the
specified currency conversion settings
• The following business processes can
handle the new currency types:
Open Item Management in FI-GL, FI-AP,
FI-AR
Allocations in FI and CO
Currency Type Coverage
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SAP S/4HANA Extension Ledger
• The extension ledger contains postings depending on the underlying leading ledger or non-
leading ledger
• When postings are made to the Leading Ledger, the Extension Ledger contains only the
adjustment entries.
• Only manual postings to the extension ledger would be stored separately in the database
• Benefits:
No storage of redundant data
Reduced reconciliation effort between the 2 ledgers
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Reviewing the Data within the Universal Journal
• The universal journal spans across 340+ standard fields (in 1511)
It unifies header and line item data from various other modules like CO, AA, and MM
• No document summarization and 999 line-items restrictions except for prima nota postings
• As compared to BSEG the ACDOCA table contains additional information like:
Posting date Item category Operating concern
Ledger Sales Order Partner Account Assignment
Operating concern Sales order item Sales Organization
Is Settled / Transferred Depreciation area Distribution Channel
Or.transctn.currency Trans. Type Category Division
Account Number Depreciation period Material Group
Inventory Value Group asset Customer Group
Moving Average Price Material Price Determination: Control Bill-To Party
Standard Price WBS Element of Inventory Ship-To Party
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Asset Accounting in Universal Journal
• The FI AA data from tables – ANEK, ANEP, ANEA, ANLC, ANLP – are now be stored in ACDOCA
• The depreciation postings are recorded in ACDOCA at the individual asset level thus making
depreciation analysis easier and reporting at asset-controlling object level possible (see below)
• Any change to master data or transactional
data are constantly updated making the
“Recalculate Values” – AFAR redundant
• For an asset document in ACDOCA the
depreciation area 01 no longer dominates
to be the Leading Valuation Area (just
because it is mapped to the leading ledger)
Source: SAP
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Balance Sheet Splitting in Universal Journal
• Universal Journal
(ACDOCA) carries both
the profit center (or
segment) and vendor
(or customer) on the
reconciliation account
• In contrast, the New GL
line items (FAGLFLEXA)
would only have the
profit center (or segment
split) while document
line items (BSEG) would
not
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Reporting Multi-Dimensionally on the Balance Sheet
• Carry forward can be configured to keep the detail for selected dimensions
• Balance sheet breakdowns with sub-ledger details to facilitate reconciliation with general
ledger
Balance SheetFixed Assets by Assets
Receivables by Customer
Inventory by Material
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Understanding the Impact to Profitability Analysis
• In S/4HANA, the costing-based CO-PA is not impacted
• Universal Journal eliminates account-based CO-PA reconciliation effort needed but
doesn’t replace costing CO-PA and the reconciliation efforts therein
• Activation of account-based CO-PA is needed for using CO-PA with universal journal
• Account-based CO-PA directly uses ACDOCA with no new controlling documents being
posted to COEP
• Adding customer-specific characteristics can be done either via account-based CO-PA
solution or extending the coding block via a customer include CI_COBL
• In version 1610, CO-PA realignments are supported as a key consideration
• Up to three additional quantities can be defined per controlling area via
BAdI FCO_COEP_QUANTITY
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COGS and Variance Splitting by Account in SAP S/4HANA
• COGS cost component and production variance splitting
by accounts, is possible
• New BAdI functionality in version 1610:
FCO_COGS_SPLIT_RELEVANCE – Allows to
split COGS even if there is no sales order on goods
movement (a restriction before)
FCO_COGS_SPLIT_BASIS – Allows different basis for
split than the unit cost estimate for the sales order
item or the standard cost estimate for the
material/plant combination (prior restriction)
For example, you could use a past or future
standard cost estimate or the actual cost estimate
of the previous year. Also can use a different cost
component structure as the basis for the split, such
as an auxiliary split.
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Reporting on PA Segment and Cost Object Simultaneously
• Also a PA segment (e.g., customer) and cost objects (e.g., cost center) can be
simultaneously posted to (as opposed to “real” versus “statistical” posting tradeoffs)
• Profitability characteristics are immediately during each “primary” posting
• Approach: Take all information that is available and known at any point in time. Post to a
cost object and fill CO-PA segment attributes all in one step.
• No settlement run needed to show relevant market segment information in profitability
• SAP
Example: Posting of salaries and immediate assignment of the respective market segment
G/L Account Cost Center PA Segment Debit Credit
Salaries and wages Development BRAKES CARS20.000 €
• SAP stores CO-PA segment
information to each P&L line
immediately (such as salary costs
also posted to a cost center)
• Doesn’t displace settlements – still
needed for indirect allocations
Source: SAP
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Analyzing New Breakdowns Available in the General Ledger
• Maximized level of detail stored centrally for
use in all applications
1
2 3
Fixed asset causing the depreciation is available
in cost center reporting.
New structural capabilities: Ability to analyze
costs for all cost object types together
Air travel costs can be analyzed across different
CO-objects in one report
Further specific analysis by PA segment is
possible without waiting for the closing process to
happen
Air travel for customer projects by region (from
the PA segment)
1
2
3
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Slicing and Dicing the Trial Balance with Universal Journal
• An example Fiori application for multi-dimensional analysis of the General Ledger
Drilldown
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What We’ll Cover
• SAP S/4HANA evolution
• Universal Journal impacts to functionality
• SAP S/4HANA key functions and features
• BPC optimized for SAP S/4HANA impacts to functionality
• Wrap-up
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Synchronizing General Ledger Account and Cost Elements
• New field “GL Account Type” introduced with merge of GL accounts with cost elements
• Cost element auto-creation along with the assignment to a cost element category
• Authorizations impact where access to both G/L accounts and cost elements may be needed
T-codes for cost
element
KA01/KA02/KA03
now point to FS00
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Reviewing a Secondary Cost Posting in SAP S/4HANA
• Secondary (CO) postings will now be
posted from General Ledger and stored in
Universal Journal (i.e., ACDOCA instead of
COEP)
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Seeing an Example Impact of a Merged Chart of Accounts
• In Simple Finance
1.0, planning was on
the EC-PCA account
hierarchy
• In the second SFIN
version (1503) it
migrated to the
financial statement
version because of
the introduction of
the table ACDOCA
(Universal Journal)
Financial statement version in
cost center planning
SAP S/4HANA Finance formerly
known as SAP Simple Finance
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Bank Account Management
• The hitherto admin (IMG) function of creating House Banks and House bank account has moved
to a user transaction using SAP Fiori App – Manage Banks
• In order to exercise governance on the bank account management the Fiori tiles – My Bank
Account Worklist and Bank Account Management use the SAP ERP Workflow for bank account
maintenance – WS74300043 with three step authorization and approval process.
• The database table T012K has been redirected to the new Bank Account Management tables
Approval by Configuration
Specialist/ Admin
Approval by Cash
Manager
Account Creation by
Bank Accountant
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Business Partner Approach
• In SAP Simple Finance 1.0, customer/vendor integration (CVI) was mandatory to keep customer
and vendor master data used in FI in sync with with business partner for certain integration
scenarios such as with FI-CML (Loans) and TRM (Treasury).
• In SAP S/4HANA 1511, customer and vendor master data maintenance was merged into business
partner (see SAP Note 2265093)
The Business Partner approach is not mandatory for SAP S/4HANA Finance 1503 and 1605
• The business partner approach reduces master data redundancy and improves centralized
governance
The business partner is the single point of maintenance for vendor and customer master
records
• Customer and vendor master data migration from older SAP versions to SAP S/4 HANA 1511 and
above is a 4-step process including: 1) Preparation 2) Synchronization 3) Conversion and 4) Post-
Processing
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Inventory Valuation in SAP S/4HANA
• Transfer pricing now
supported as of 1605
• Includes 2 options:
By valuation view
(as before but with
separate columns)
By single valuation
ledger (updated in
parallel with
separate rows for
different
regulations)Source: SAP
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Supporting a “Fast Close” in SAP S/4HANA
• Typical period-end closing activities involve the processing of large volumes of data –
reading records, computing values and updating one or more transactional and totals
tables
For example: settlements of production orders, maintenance orders, WBS elements
and WIP calculations implies reading and updating different tables
• The Financial Closing Cockpit applications can also be leveraged:
AppId AppName App Description
F0518 Financial Close Tasks with ErrorsDisplay the tasks with errors in a closing cycle and the reasons for the errors and follow up through SAP Jam or emails so that
the responsible agent can speed up.
F0519 Financial Close Delayed TasksDisplay the delayed tasks in a closing cycle and reasons for the delay and follow up through SAP Jam or emails so that the
responsible agent can speed up.
F0520Financial Close Progress (Due
Today)
Get an overview of the completion status of the tasks that are due today and the number of such tasks that are open, in progress,
with errors, and completed, respectively by different views, such as region and company.
F0521 Financial Close ProgressGet an overview of the completion status of the tasks in a closing cycle and the number of tasks that are open, in progress, with
errors, and completed, respectively.
F0522 Financial Close Overall DelayFind out about the overall delay in hours of a closing cycle and the reasons for the overall delay and follow up through SAP Jam
or emails so that the responsible agent can speed up.
F0695 Financial Close History Track the historical close information to find out whether the financial close in the previous posting periods was on track.
Source: SAP
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Accelerating Period-End Processing Transactions
• Examples of SAP transactions that have been rewritten to be optimized with SAP HANA
Please remember to complete your session evaluation
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