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Produced by Wellesley Information Services, LLC, publisher of SAPinsider. © 2017 Wellesley Information Services. All rights reserved.
SAP S/4HANA Finance: Explore Deployment Scenarios, Architecture Considerations, and Impacts to Your System Landscape
David DixonTruQua Enterprises
1
In This Session
Attend this 3-hour comprehensive session to get a solid understanding of SAP S/4HANA Finance — from
deployment scenarios to system landscape and architecture. This session will take you under the hood of SAP
S/4HANA Finance and will explore the available adoption and migration scenarios and their implications for
your system landscape, including the migration paths for moving to the latest version of SAP General Ledger
and Asset Accounting. Attend this session to:
• Learn how to move your data from SAP ERP 6.0 to SAP S/4HANA Finance as well as review what is required
to move your SAP BW data into an SAP S/4HANA Finance system
• Compare and contrast the different deployment options for cloud, on-premise, and hybrid scenarios,
including the pros and cons of each
• Examine the most common migration challenges that companies moving to SAP S/4HANA Finance have
experienced and the steps you can take to avoid them
• Receive a high-level introduction to the Central Finance deployment option and SAP HANA Enterprise
Cloud for SAP S/4HANA Finance
• Review the new master data governance considerations for integrated transactions and analytics, such as
cross-system document flows and drill-back into SAP ERP source systems
2
What We’ll Cover
• Understanding What SAP S/4HANA Finance Is
• Strategizing on the Landscape and Deployment Options
• Assessing the SAP S/4HANA Functional Impacts
• Understanding the Key Considerations for System Conversion
• Wrap-up
3
What Is SAP S/4HANA Finance?
• Well, what is SAP S/4HANA Finance really?
Short answer: “It’s FI/CO redesigned for HANA and Fiori” (while SAP S/4HANA is SAP
ERP redesigned for HANA and Fiori)
Many past SAP design challenges now addressed like CO-PA reconciliation with FI-GL
• Simplifications include:
Real-time reporting access to transactional tables eliminates batch scheduling and
design complexities
Data convergence into singular and integrated tables enabling simplified information
delivery options and reduction in reconciliation efforts
New user experience with SAP Fiori UX modernizes and simplifies tasks
4
Following the Journey to SAP S/4HANA Finance
• First innovation was CO-PA accelerator that expanded into FI and CO accelerators
• Used HANA as a secondary connection which became primary with Suite on HANA
• Simple Finance 1.0 was an add-on with new Assets, Cash, and BPC for planning
• SAP Simple Finance 2.0 became SAP S/4HANA Finance 1503
• Version 1503 introduced the Universal Journal
HANA Accelerators for FI and CO (“Sidecar HANA”)
Suite on HANA (no sidecar needed)
Simple Finance (financial add-on to Suite on HANA)
S/4HANA Finance (first major S/4HANA application)2012
2013
2014
2015
5
Moving from SAP S/4HANA Finance to SAP S/4HANA
• SAP S/4HANA
Finance 1605 is
the latest release
• All new finance
functionality is in
SAP S/4HANA
1610 and future
releases of the
broader code line
Source: SAP Product Availability Matrix at https://support.sap.com/release-upgrade-maintenance/pam.html
SAP Simple Finance to
SAP S/4HANA Finance
SAP S/4HANA Finance to
SAP S/4HANA
6
Differentiating SAP S/4HANA Finance and SAP S/4HANA
• SAP S/4HANA Finance has evolved into SAP S/4HANA
• SAP S/4HANA Finance 1605 is the last release of finance-only SAP S/4HANA
• SAP S/4HANA Finance migration path must eventually be to SAP S/4HANA
• SAP S/4HANA has annual releases (SPS every 3 months with FPS versions)
Source: SAP Product Availability Matrix at https://support.sap.com/release-upgrade-maintenance/pam.html
SFIN 1.0
1511 1610
1503
1605
1709
….
S/4HANA Core
SAP S/4HANA Finance
7
Improving SAP S/4HANA Finance Processes
• New opportunities for technology enablement exist across different process areas:
Planning and Analysis
Accounting
Treasury
Operations
Risk and Compliance
Universal Journal and Extension Ledgers
SAP BPC optimized for S/4HANA
Analytical Fiori applications (e.g., margin analysis)
SAP S/4HANA Operational Analytics
Universal Journal and Extension Ledgers
New Asset Accounting
Merge of CO and FI master data and processes
Account-based CO-PA with COGS and variance splits
Acceleration in transactions such as settlements
Transactional Fiori applications (e.g., payments)
Central Finance
Upcoming Real-Time Consolidation in version 1610
New Cash Management with Bank Account Management,
Cash Management, and Liquidity Planning
Treasury and risk management (IFRS 9 and trade finance)
Fiori applications for Cash Management
One Exposure: “Universal Journal” for financial risks
Fiori applications for A/R and A/P
Accelerated financial transactions
Central Finance
Continuous control monitoring
Fraud detection
Continuous monitoring of Key Risk Indicators
Accelerated audit search and management
8
Taking a Look at How SAP Finance Is Being Transformed
• Simplifications require changes to the SAP ERP code line and fundamental design
Collaborative
Invoice to Pay
Travel Management
Receivables ManagementEnterprise,
Risk Management
Controls and Compliance
Management
Accounting
Entity Close
Corporate Close
Develop and Translate
Strategy
Planning, Budgeting and
Forecasting
Profitability and Cost
Management
Payments and Bank
Communications
Cash and Liquidity
Management
Debt and Investment
Management
Monitoring and Reporting Reporting and Disclosure
Financial Close
GovernanceCommodity Risk Management
Real Estate ManagementFinancial Risk
Management
International Trade
Management
Fraud Management
Audit ManagementFinancial Shared Services
SAP S/4HANA Finance
New or significantly renewed solutions
Solutions that are planned for renovation with SAP HANA
SAP S/4HANA Finance solutions that have not been re-architected for SAP HANA
Financial Planning
and Analysis
Accounting and
Financial Close
Treasury and
Financial Risk
Management
Finance Operations
Enterprise Risk
and Compliance
Management
Source: SAP Value Map, 2016
9
Leveraging SAP S/4HANA Industry Support
• Select industries are available as part of the core SAP S/4HANA solution
Source: SAP Road Maps (www.sap.com/solution/roadmaps.html) under Industry SAP S/4HANA Industry
10
Leveraging the Universal Journal
• Redesigning FI and CO for SAP S/4HANA Finance resulted in the “Universal Journal”
• Not only a wider coding block but also a deeper database table without financial
document summarization (i.e., no 999 line item limit except for prima nota postings
for now)
Width
Dep
th
May vary with
CO-PA but here,
in an 1610 SP01
system, it is 383
fields wide
6 characters
instead of 3 for
line items
Primary key is
the same
(except ledger)
but now can
contain sales
and logistical
depth of detail
11
Other “Single Source of Truth” Tables in SAP S/4HANA
• For merging Cash and Liquidity Management, “One Exposure” (FQM_FLOW) exists
One bank GL posting used to update totals and line items tables for cash and
liquidity separately (i.e., FDSB, FDFIEP, FLQSUM, and FLQITEMFI instead of one
FQM_FLOW)
• For integration of SAP BPC planning cube structures with fixed CO planning tables,
an integrated plan line item table (ACDOCP) was introduced
• For financial consolidation, a “Consolidation Journal” (ACDOCC) was introduced
• For materials management, the data model and tables were simplified into their own
singular table named “MATDOC” and inventory valuation tables (xBEW[H]) redirected
to Material Ledger and Universal Journal
• Material Ledger Actual Costing data model was simplified with a Material Ledger
document (MLDOC) and Cost Component Split detail (MLDOCCCS)
12
Applying Fiori User Experience (UX) Design Principles
• Portal concepts redefined where the user interface design shifts from the function to the
individual user
• SAP Fiori are role-based with the tiling within its launchpad being the new point of entry
Source: SAP
13
Making Users More Productive
• Simplification of
SAP transactions by
eliminating the need
for so many fields
and screens in order
to accelerate tasks
• Reduction in mouse
clicks, fields filled,
screen changes,
and overall duration
needed to perform
an activitySource: https://youtu.be/_morrLqAZTQ
14
For more information on SAP Fiori for SAP S/4HANA, TruQua will be presenting the following session later this
week:
SAP Fiori applications for SAP S/4HANA Finance
Scott Cairncross, TruQua Enterprises
Simplify your finance user experience on any device by delivering a personalized, role-based user experience with SAP
Fiori. Walk through the SAP Fiori applications for SAP S/4HANA Finance that run on the SAP Fiori launchpad. Attend this
session to:
• Learn the design principles behind SAP Fiori and the key applications that are currently available to finance teams
• Gain insights into the 3 different kinds of applications that SAP Fiori provides to SAP S/4HANA Finance users,
including transactional applications, analytical applications, and fact sheets, and learn how and when to use each
• Hear tips for creating a personalized, modern, and consistent user experience across applications and for any device —
desktop, tablet, or mobile — that users will love
• Learn how SAP Fiori makes use of the latest advances in web technology embodied in the SAPUI5 library
Learning More on SAP Fiori for SAP S/4HANA
15
Understanding the Initial SAP S/4HANA Value Proposition
• Significant IT benefits come with SAP S/4HANA Finance
• All aggregate and summary tables replaced with HANA views
• SAP case study:
Source: http://blogs.saphana.com/2014/09/30/how-simple-finance-removes-redundancy-2/
16
Realizing the Promise of SAP S/4HANA … Today
• Now being able to embed robotics and machine learning into enterprise processes like
cash application
Source: https://blogs.sap.com/2017/03/02/s4hana-cloud-use-case-series-4-machine-learning-with-sap-s4hana-cloud/
SAP S/4HANA
17
What We’ll Cover
• Understanding What SAP S/4HANA Finance Is
• Strategizing on the Landscape and Deployment Options
• Assessing the SAP S/4HANA Functional Impacts
• Understanding the Key Considerations for System Conversion
• Wrap-up
18
Choosing Your SAP S/4HANA Landscape
On-Premise
• Traditional licensing
• Customer controlled
Hybrid
• Both license models
• Governance mix
Cloud
• Subscription licensing
• SAP controlled
• SAP S/4HANA deployment options include on-premise, cloud, or a combination
Image sources from www.pexels.com (left and right) and www.publicdomainpictures.net (middle)
19
Choosing Your SAP S/4 Cloud Edition
• SAP S/4HANA Finance Cloud integrates with the other SAP Cloud solutions
• The latest SAP S/4HANA Cloud Edition is 1702
Source: SAP Road Maps (www.sap.com/solution/roadmaps.html) under Line of Business Products Financial Management Finance in SAP S/4HANA Cloud
*PLANNED
20
Scoping SAP S/4HANA Finance Cloud
• Currently, functionality is not as comprehensive as the On-Premise Edition but
innovating more quickly with quarterly release cycles
Source: SAP Road Maps (www.sap.com/solution/roadmaps.html) under Line of Business Products Financial Management Finance in SAP S/4HANA Cloud
21
Extending SAP S/4HANA On-Premise with SAP Cloud Applications
• Example SAP Cloud Platform
applications for SAP S/4HANA
include:
SAP RealSpend, Cloud
Edition
SAP S/4HANA Finance
Cloud for credit integration
SAP S/4HANA Finance
Cloud for customer
payments
SAP Financial Statement
Insights
SAP S/4HANA
Finance Cloud for
customer
payments
22
Choosing Your S/4HANA Migration Strategy
• Key strategic question to ask is if you want to modernize or transform your business
• The approach you take depends on the level of business process reengineering and
change management desired and the number of ERP systems impacted
• Greenfield, brownfield, and split landscape projects are all very different terrains
Greenfield Investment
(New Implementation)
For Cloud or On-Premise
Business Transformation Oriented
Brownfield Investment
(System Conversion)
For On-Premise Only
System Modernization Oriented
Split Landscape Investment
(Landscape Transformation)
For Cloud or On-Premise
Transformation or Modernization
Image sources from www.pexels.com (left and right) and www.publicdomainpictures.net (middle)
23
Utilizing Central Finance for Landscape Transformation
• “Central Finance” is a product and a deployment option for SAP S/4HANA Finance
formerly known as “Central Journal”
It breaks out the Finance and Controlling (FI/CO) applications (modules) from the rest
of SAP ERP via Application Link Enabling (ALE) as a “sidecar”
It is a way to implement SAP S/4HANA Finance without disrupting your existing source
SAP ERP systems (but does require installing a DMIS software component and SAP
Notes)
SAP ERP
FI COSD
MM
PP QM QM HR BC CA
SAP ERP
FI COALE
24
Consolidating Systems into SAP S/4HANA
Source: SAP
• Central Finance creates a new migration option that was not available before
25
Studying How Data Is Integrated into Central Finance
• SAP and non-SAP data can be integrated via SAP Landscape Transformation (SLT)
• Master data management is handled by Master Data Governance (MDG)
• Errors and corrections are addressed by the Application Integration Framework (AIF)
Replaced by AIF
Source: SAP, 2015
* SAP Simple Finance is
now called SAP S/4HANA
Finance
26
Integrating Master Data
• Rapid data migration to SAP S/4HANA and MDGF not
included with Central Finance but can be leveraged
27
Mapping with Master Data Governance
• Key vs. value mappings
Identifiers via key mappings
Codes via value mappings
MDG separately
licensed but this
functionality comes
with Central Finance
28
Reviewing a Central Finance Posting
• Looks the same as an SAP ERP
financial posting but is linked
back to the source system via
reference to the primary key of the
source document and logical
system to which it belongs
• Relationship
Browser
shows the
document
lineage
29
Reviewing the Relationship Browser in a Central Finance System
• Central Finance document shows
the replicated accounting
document it is linked to and the
entire document flow (including
sales and logistics)
• In this case, an order-to-invoice
flow is illustrated with the ability to
drill on any of the documents back
into source system seamlessly
30
Drilling Back to the Source Document
• Depicted is the
source document
(note the document
number, logical
system, and logon
system) after it was
drilled into from the
Central Finance
system
31
Use-Case Scenarios for Central Finance
SAP S/4HANA Finance Migration Option
Central Reporting System for Mergers and Acquisitions
Financial Shared Services Platform
Effort
ValueCorporate Reporting and Planning Platform
Central Operational Processing
Establish a Central Financial system as single source of
truth …
… across entities and units
… with harmonized master data
… using the flexible new data model of S/4HANA Finance
… with new reporting tools
… and with the speed of HANA
Let your finance team benefit from simplification and
standardization in the new SAP S/4HANA Finance system …
… by centralizing financial processes
… by standardizing and harmonizing processes across units
… by simplifying the work in Shared Service centers
… by simplifying the IT landscape
32
Envisioning Central Finance as an Integrated Payment Factory
Subsidiary
Non-
SAP
SAP Bank
Communication
Management (BCM)
SAP In-House Cash
Treasury
AP/AR/HR
Middleware
SAP PI
SAP ECC 6.0Subsidiary
Cash Management
SAP Financial Service
Network
BCM Connector*
Source: SAP, 2016
33
Comparing Central Finance to Legacy SAP Landscapes
• Standalone BW and BPC investments require data transfer via batch Extract, Transform,
and Load* (ETL) jobs while Central Finance is via real-time replication of FI/CO documents
SAP BPC
SAP BW
SAP ERP
FI COSD
MM
PP QM QM HR BC CA
SAP ERP
FI COReal-time
Batch SAP BPC
SAP BW
HANA Live
Any BI
Replication
ETL*
Central
Finance
Legacy
SAP
Landscape
Any DB SAP HANA
34
Comparing SAP BW Standalone vs. SAP S/4HANA
• SAP BW is inside your SAP S/4HANA system (been
there since mySAP ERP 2004 ECC 5.0)
• But only now can SAP BW perform without issues
and is, in fact, what SAP BPC tightly integrates into
• But the SAP BW content inside of SAP S/4HANA is
not the same as for standalone systems!
SAP S/4HANA content has its own namespace
“/ERP/” (instead of “0” in SAP BW)
• As a result, any SAP BW development in a
standalone system looking to be carved out should
not be transported or otherwise migrated to SAP
S/4HANA but instead should be redesigned and
replaced
35
Evaluating Fundamental SAP BW Design Differences
• In SAP S/4HANA, master data and actual transactional detail are real-time and virtual,
while in SAP BW standalone systems, the data is loaded and persisted redundantly
• In cases where the data is sourced from SAP ERP, the redundant data doesn’t need to be
migrated anyway
• In cases where the data is non-SAP, then data federation scenarios may be possible
36
For more information on SAP BW vis-à-vis SAP S/4HANA, TruQua will be presenting the following session
later this week:
Do I still need SAP BW with SAP S/4HANA Finance? How to leverage SAP BW within SAP S/4HANA Finance for
an all-in-one operational and analytical environment
David Dixon, TruQua Enterprises
Gain a better understanding of the role SAP BW plays with SAP S/4HANA Finance. During this session you will:
• Learn how it is possible to activate and leverage the SAP BW components directly on SAP S/4HANA to create a virtual
data warehouse for performing reporting and analytics directly in your operational system
• Understand the key use cases and scenarios where a separate, standalone SAP BW instance still makes sense
• See a live system demo of SAP BW running in SAP S/4HANA to understand the new capabilities and see the new
design paradigm in action
• Gain an expert’s perspective of the future of SAP BW and how it fits into the SAP road map
Learning More on SAP BW vs. SAP S/4HANA Considerations
37
What We’ll Cover
• Understanding What SAP S/4HANA Finance Is
• Strategizing on the Landscape and Deployment Options
• Assessing the SAP S/4HANA Functional Impacts
• Understanding the Key Considerations for System Conversion
• Wrap-up
38
• New field “GL Account Type” introduced with merge secondary cost elements
• Cost element auto-creation along with the assignment to a cost element category
Redefining the Chart of Accounts
T-codes for cost
element
KA01/KA02/KA03
now point to
FS00
39
• COGS cost component and production variance
splitting by accounts is possible
• New BAdI functionality in version 1610:
FCO_COGS_SPLIT_RELEVANCE – Allows the 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, you can use a different cost component structure as
the basis for the split, such as an auxiliary split.
Adding COGS and Variance Splitting Details
40
• 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
Adding More Currencies
Currency Type Coverage
Source: SAP Simplification Guide for 1610
41
Adding New Extension Ledgers
• 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 ledgers
42
Utilizing Profitability Analysis
• In S/4HANA, costing-based CO-PA is not impacted
• Activation of account-based CO-PA is needed for using CO-PA with Universal Journal
Doesn’t replace costing CO-PA and its reconciliation efforts
As of version 1603, adding characteristics in CO-PA automatically updates the
Universal Journal
• In version 1610, CO-PA realignments are supported as a key consideration
Note that extending the Universal Journal coding block via customer include CI_COBL
will not realign as would CO-PA characteristics
• Up to three additional quantities can be defined per controlling area via BAdI
FCO_COEP_QUANTITY
43
Controlling and Reporting on PA Segments and Cost Objects
Example: Posting of salaries and immediate assignment of the respective market segment
GL Account Cost Center PA Segment Debit Credit
Salaries and wages Development BRAKES CARS20.000 €
• Also, a PA segment (e.g., customer) and cost object (e.g., cost center) can be
simultaneously posted to without the need for settlements (as a design option)
• 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.
• SAP stores CO-PA segment information to each P&L line immediately (such as salary
costs posted to a product line and cost center)
Source: SAP
44
Planning in SAP S/4HANA with SAP BPC
HANA Views
ERP Tables: Actual
Data
MultiProvider
VirtualProvider
HANA Views
InfoObjects
ERP Tables: Master
Data
In-Memory Cube:
Plan Data
• CO-OM planning, P&L planning, and profit center planning are now covered by SAP BPC
Optimized for SAP S/4HANA (SAP Note 2081400)
45
Consolidating with SAP BPC in SAP S/4HANA
• Real-Time Consolidation (RTC) complements SAP BPC Optimized for SAP S/4HANA
utilizing the same SAP BPC Embedded functionality and pre-delivered content
Source: SAP
46
For more information on SAP BPC in general, TruQua will be presenting the following session later this week:
Key success factors guaranteed to drive optimal utilization of SAP BusinessObjects Planning and
Consolidation
JS Irick, TruQua Enterprises
Attend this session and learn how key factors, including performance, training, product knowledge, data, user experience,
process, and alignment, impact the success of your SAP BusinessObjects Planning and Consolidation implementation
project. Attend this session to:
• Walk through an analysis of 5 SAP BusinessObjects Planning and Consolidation implementation projects and learn
what role these factors played in the success of each project
• Get tips for optimizing the SAP BusinessObjects Planning and Consolidation experience for the occasional user and
the most common bottlenecks that are likely to arise
• View examples from successful performance assessments, seeing how real-world performance issues were solved
• Learn how to utilize automated load testing to ensure the health and stability of your SAP BusinessObjects Planning
and Consolidation implementation
Learning More on SAP BPC
47
Managing Cash and Liquidity in SAP S/4HANA
Business Suite on HANA
SAP HANA Platform
Aligned Single Source of Truth
Agile Real time finance processes
Predictive Insight and foresight
Integrated Business Planning
SAP Cash Management powered by SAP HANA
SAP Accounting powered by SAP HANA
Payments and Bank Communications
Payment Operations Monitoring and Status
Tracking Payment Factory
Bank and SWIFT Connectivity
Cash and Liquidity Management
Cash Operations Bank Account Management Electronic Bank Statements
Debt and Investment Management
Financial Risk Management Risk Identification
Type and Origin of Risk Risk Quantification
Exposure Mgmt Risk Analysis
Risk Management Hedge with Financial Instruments
Treasury Solution Map, Edition 2014
Workflow and Signatures
Liquidity Management
Front Office Deal capture
Mid Office Risk Controlling
Back Office Correspondence & Settlement
Accounting
Foundation Cloud Analytics Mobile Rapid Deployment Solutions (RDS)
HANA Platform
Suite Capabilities Shared Service Center Working Capital
Management Governance Risk and Compliance Commodity Risk Management
SAP Cash Management powered by SAP HANA
BPC optimized for
S/4HANA
• Use of new cash
management
functionality required
for bank account
management, cash
operations, and
liquidity planning (via
BPC optimized for SAP
S/4HANA)
• Separately licensed (see SAP Note 2044295)
• Bank Account Management Lite version is available without the separate license (see SAP Note 2165520)
Source: SAP
48
Valuating Materials with Material Ledger in SAP S/4HANA
• Material Ledger mandatory for inventory valuation as of version 1511
Inventory valuation tables (EBEW, EBEWH, MBEW, MBEWH, OBEW, OBEWH, QBEW,
QBEWH) point to Material Ledger and Universal Journal via Core Data Service views
• Parallel valuation of Cost of Goods Manufactured (business function FIN_CO_COGM)
supported as of 1610 SP01
Only for the ledger (and not the accounts) approach
• In 1610, further data model changes made for Actual Costing
New tables MLDOC, MLDOCCCS, MLDOC_EXTRACT, and MLDOCCCS_EXTRACT
introduced
Material Price Analysis (CKML3) and ML Actual Costing Cockpit (CKMLCPAVR)
functionality impacted
SP01 recommended
49
Valuating Materials with Material Ledger in SAP S/4HANA (cont.)
• In 1610, parallel valuation and transfer pricing are also supported
New functionality to add parallel valuations (i.e., profit center or group views) as new
ledgers in addition to valuation views within the same ledger
50
Accounting for Assets in SAP S/4HANA
• Data (tables ANEK, ANEP, ANEA, ANLC, ANLP) is now stored in the Universal Journal
• Reduces data redundancy between GL and asset sub-ledger, improving reconciliation
• 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
• Level of detailed reporting for multiple
valuations (e.g., IFRS versus Local GAAP)
achieved via new postings against a technical
clearing account
• 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 Help
51
Defining and Analyzing a Multi-Dimensional Balance Sheet
Balance Sheet Fixed Assets by Assets by
Cost Center by Profit Center
Receivables by Customer by
Profit Center
Inventory by Material by Profit
Center
• Carry-forward can be configured to keep the detail for selected dimensions
• Balance sheet breakdowns with sub-ledger details to facilitate reconciliation
52
For more information on SAP S/4HANA impacts to FI and CO, TruQua will be presenting the following session
later this week:
Going under the hood: How SAP S/4HANA Finance will streamline your accounting and controlling activities
Sonam Pawar, TruQua Enterprises
This session will give you a deeper understanding of how SAP S/4HANA Finance will change your day-to-day financial
accounting and controlling processes. During this session, you will:
• Learn how, by using SAP S/4HANA Finance, data will be sourced from 1 table — known as ACDOCA — to reduce the
need for data replication and facilitate the harmonization of internal and external accounting activities
• Assess what impact SAP S/4HANA Finance takes on core controlling processes, such as cost-based and accounting-
based profitability analysis
• Hear firsthand how, from master data to hierarchies, the convergence of general ledger accounts and cost elements
impacts accounting processes
• Examine the extension ledger and how it streamlines the way in which organizations can adjust and report on their
financial accounting (FI) and controlling (CO) data
Learning More on SAP S/4HANA Functional Changes
53
A Demo Walkthrough of SAP S/4HANA
• Step through some key SAP S/4HANA concepts in the
system
• Highlight a few key differences with configuration and
functionality
• Review the new SAP Fiori and SAP BPC user experience
• Understand how to directly “slice and dice” on the Universal
Journal with a pre-delivered Fiori Trial Balance application
54
What We’ll Cover
• Understanding What SAP S/4HANA Finance Is
• Strategizing on the Landscape and Deployment Options
• Assessing the SAP S/4HANA Functional Impacts
• Understanding the Key Considerations for System Conversion
• Wrap-up
55
Understanding What Happens In a System Conversion
• As opposed to an upgrade or migration, an SAP S/4HANA system conversion involves:
Database tables get deleted and replaced with views or used differently (e.g., summary
and index tables)
Data models are simplified and data gets migrated into those new data models (e.g.,
Universal Journal)
Old applications are migrated to new ones (e.g., Classic GL to New GL)
Configuration that gets migrated into new tables (e.g., ledger and currency
configuration – See SAP Note 2344012)
Codeline and logic gets deleted, modified, replaced, or added (e.g., replacing Credit
Management functionality or adding SAP BPC functionality)
Some Business Functions need to be turned off and are no longer supported (e.g.,
FIN_GL_REORG_1 and FIN_GL_REORG_SEG for profit center and segment
reorganization – See SAP Note 2257555)
56
Understanding What Happens In a System Conversion (cont.)
• As opposed to an upgrade or migration, an SAP S/4HANA system conversion
involves: (cont.)
Transactions get deprecated or replaced with new user interfaces and experiences
(e.g., GL Account Maintenance and CO Planning – See SAP Note 2270335)
Some functionality becomes no longer supported (e.g., general cost objects and
hierarchies as per SAP Note 2270411 or smoothing method for depreciation posting
as per SAP Note 2270388 or Activity Based Costing delta versions as per SAP Note
2270408)
Or transaction and configuration behaviors change perhaps even slightly due to the
new Universal Journal data model (e.g., top-down distributions in CO-PA – see SAP
Note 2236046)
57
Migrating to the “New” Finance Applications in SAP S/4HANA
New Application Explanation
New General Ledger
Classic General Ledger is mostly automatically transformed into a basic
implementation of New General Ledger (GL in SAP Accounting powered by SAP
HANA)
New Asset AccountingClassic Asset Accounting is mostly automatically transformed into the New Asset
Accounting
SAP Cash ManagementClassic Cash Management is replaced by the new SAP Cash Management.
SAP Cash Management requires a separate license. Refer to SAP Note 2044295.
• New General Ledger is not so new (circa 2004 and ECC 5.0) but is required
• New Asset Accounting is more of an adaptation than completely new (began as business
functions FIN_AA_CI_1 in EhP6 and FIN_AA_PARALLEL_VAL in EhP7) – also required
• SAP Cash Management is probably the newest with Bank Account Management (BAM)
options for either the light (BAM Lite) or full version (see SAP Note 2165520)
58
Migrating Credit Management in SAP S/4HANA
• Credit Management (FI-AR-CR) is not available as part of SAP S/4HANA. The functional
equivalent in SAP S/4HANA is SAP Credit Management (FIN-FSCM-CR).
• All IMG activities for SAP Credit
Management are listed in Customizing
under the following path: Financial Supply
Chain Management → Credit Management
• As part of migration, deactivate BAdI
UKM_R3_ACTIVATE (SAP Note 2196823)
• For details on how to adapt user-defined
customer code that relies on the changed
objects, see the following SAP Notes:
2227014 (Financials) and 2227014 (SD)
59
Deleting and Replacing Tables with HANA Views
• Multiple legacy totals and aggregate tables are replaced with HANA “compatibility” views
Enables removal of physical table to reduce data footprint and eliminate
redundant data
HANA view persists to ensure no programs or code breaks which previously
referenced physical tables
Any custom programs that update these tables directly must be rewritten
Source: SAP Help – Migration to SAP Accounting Powered by SAP HANA, http://help.sap.com/saphelp_sfin100/helpdata/en/87/2f6152b82bf35fe10000000a423f68/frameset.htm
60
Deleting and Replacing Tables with HANA Views (cont.)
• Tables replaced by HANA Views include:
The line item, totals tables, and application index tables of General Ledger Accounting
(GLT0, BSIS, BSAS, and FAGLFLEXA, FAGLFLEXT, FAGLBSIS, FAGLBSAS)
The totals tables and application index tables of Accounts Receivable and Accounts
Payable (KNC1, KNC3, LFC1, LFC3, BSID, BSIK, BSAD, BSAK)
The line item and totals tables of Controlling (COEP for certain value types, COSP, and
COSS)
The material ledger tables for parallel valuations (MLIT, MLPP, MLPPF, MLCR, MLCD,
CKMI1, BSIM)
The Asset Accounting tables (ANEK, ANEP, ANEA, ANLP, ANLC)
Source: SAP Help – Migration to SAP Accounting Powered by SAP HANA, http://help.sap.com/saphelp_sfin100/helpdata/en/87/2f6152b82bf35fe10000000a423f68/frameset.htm
61
Converting Data into the New Universal Journal Data Structure
• As of SAP S/4HANA Finance 1503, document line items are migrated to the Universal Journal
Integrates and moves relevant data from the various FI and CO modules
All new transactions post to ACDOCA after migration is completed
Source: SAP Help – Migration to SAP Accounting Powered by SAP HANA, http://help.sap.com/saphelp_sfin100/helpdata/en/87/2f6152b82bf35fe10000000a423f68/frameset.htm
62
Noting SAP S/4HANA Functionality Not Available After Conversion
• Note that not all SAP S/4HANA functionality described earlier is available after system
conversion (i.e., only applicable for new implementations) such as:
Balance sheet splitting if migrating from the classic General Ledger (parallel ledger
support was introduced in version 1610)
Additional currencies aside from what is already defined in General Ledger and
Material Ledger (see SAP Note 2344012)
• In addition, for reconciliation purposes, projects should minimize configuration and
master changes until a subsequent phase after system conversion
• Notwithstanding the above, as of 1610, New General Ledger (with use of Universal
Journal), Material Ledger, New Asset Accounting, New Cash Management, Credit
Management (from Financial Supply Chain Management) are all mandatory (meaning the
replaced applications are no longer available)
• FI, CO, and PCA planning is replaced with SAP BPC but can be reactivated via SAP Notes
63
Evaluating a Common Challenge with Document Splitting
• Customers on Classic GL can
still migrate to SAP S/4HANA
Finance
• Migration to New GL for SAP
S/4HANA Finance will occur as
part of migration, which can
occur at any period-end close
• If additional functionality of
New GL is desired, then care
needs to be taken with
document splitting (not yet
supported) and parallel ledgers
(now supported)
Source: SAP, 2014
64
Evaluating a Common Challenge with Currencies and Valuation
• If system converting from SAP ECC 6.0, SAP S/4HANA Finance 1503, or SAP S/4HANA
1511, old currency configuration is migrated to universal journal without changes of the
used currencies
• The SAP S/4HANA system conversion process is not able to introduce new currencies
• SAP ERP systems using transfer pricing, the currency types (e.g., 11, 12, 31, and 32) used
for parallel valuation views (profit center and group) will be migrated into the Universal
Journal
• Afterwards, usage of additional currencies is not possible without a different type of data
conversion project with SAP support
Cannot simply configure additional currencies, as the existing data does not contain
the new currencies, and some open processes would not work properly, if the currency
configuration was changed (see SAP Note 2344012)
65
Evaluating Other Common Challenges Prior to System Conversion
• There may be scenarios where a project is needed prior to an SAP S/4HANA project
such as:
Activating customer and vendor integration (CVI) mandatorily – see SAP Note 2265093
Implementing the new depreciation calculation from the Enterprise Extension Financials
Extension (EA-FIN) mandatorily
Implementing archiving prior to system and data conversion
To update charts of depreciation and assigned depreciation areas with the same
currencies and currency types as available in FI-GL (see SAP Note 2180591)
To implement SAP BPC before the SAP S/4HANA implementation (see SAP Note
2243472)
66
ECC 6.0 EHPx Any DB
ECC 6.0 EHP7 Any DB
Suite on HANA
Simple Finance
S/4HANA Finance
S/4HANA Core
Migrating Your On-Premise Brownfield Investment
• Your pathway to SAP S/4HANA
can have many steps and
disruptions to consider such as:
Material number extends from
18 to 40 characters but not in
SAP S/4HANA Finance
SAP HANA Live not supported
past Simple Finance (see SAP
Note 2270382)
Same ECC
product but
with HANA
as the DB
with Fiori
UX options
requiring
database
migration
Simplification
of SAP
financials and
not logistics
requiring a
conversion
and possible
database
migration if
not on HANA
Same ECC
product but
with any DB
and Fiori
UX options
requiring
technical
upgrade
Simplification of
both SAP
financials and
logistics requiring
a system
conversion and
database
migration if not on
HANA
Introduction of
the Universal
Journal as
part of system
and data
conversion
while logistics
remains the
same
67
Comparing SAP HANA Live to SAP S/4HANA Analytics
HANA Database Layer Virtual Data Model on Physical Tables
Analytical Apps and BI Clients
e.g., SAP BusinessObjects BI
SAP Business Suite powered by SAP HANA
(SoH)Hybrid Transactional and Analytical Applications
e.g., SAP Smart Business cockpits
SQL Runtime Views on Physical Tables
ABAP Application LayerVirtual Data Model based on ABAP Core Data Services
SAP BW Application Layer Transient BEx Queries
SAP S/4HANA
SAP S/4HANA Analytics SAP HANA Live
Implement Suite on HANA (SoH) and SAP HANA Live Before SAP S/4HANA and SAP S/4HANA Analytics?
68
System Converting to SAP S/4HANA Leveraging Best Practices
• Converting a brownfield investment to SAP S/4HANA is
also supported by SAP Activate via SAP Best Practices
• The SAP Best Practices for system conversion has the
following building blocks:
BG4 is the Master Configuration Guide stepping
through the technical conversion procedure and
listing all relevant steps in the right sequence. BG4
cross-references BG5.
BG5 is the Application-Specific Configuration Guide
describing the application-relevant steps
BG6 details the technical and functional pre-checks
and post-checks for both finance and logistics
69
Walking Through the SAP S/4HANA System Conversion Steps
• A system conversion is not just a technical upgrade (in-depth functional tasks needed)!
• There are FI and CO preparedness checks (and potentially new configuration to perform)!
• Tables and transactions get deleted (change management is needed)!
Source: Conversion Guide for SAP S/4HANA 1610 Feature Package Stack 01 under Product Documentation for SAP S/4HANA On-
Premise via the SAP Help Portal (https://help.sap.com/viewer/p/SAP_S4HANA_ON-PREMISE)
A review of the new
simplifications and
their impact to your
current
environment is
needed up front
70
Preparing for the System Conversion
• Reconcile and check consistency (e.g., ledgers and sub-ledgers with each other)
• Perform period-end closing (e.g., lock current MM period, periodic asset postings, etc.)
• Document posting data (i.e., run reports and verify balances)
• Archive data (if needed)
• Prepare Asset Accounting with new depreciation calculation (EA-FIN Business Function)
if not already active (mandatory)
• Perform Pre-Checks
For SAP S/4HANA Enterprise Management, run R_S4_PRE_TRANSITION_CHECKS
(See SAP Note 2182725)
For SAP S/4HANA Finance, run FINS_MIG_PRECHCK_CUST_SETTNGS
For both, run RASFIN_MIGR_PRECHECK for Asset Accounting pre-checks
71
Technical Migration Steps Available in IMG
• New updates to the
IMG provide step-by-
step guide for
migrating accounting
to SAP S/4HANA
• Application-specific
steps to take into
consideration
Program
FINS_MIG_PRECHCK_CUST_SETTINGS
72
Checking Prerequisites – CO Configuration and Currencies
• Program FINS_MIG_PRECHCK_CUST_SETTNGS checks CO configuration and currency
settings to allow for migration to SAP S/4HANA Finance
Details of program can be found in SAP Notes 2129306 and 2245333
Some of the items checked in this program include:
Consistency of currency settings across ledgers
Compatibility of currency settings for both company codes and ledgers with the new
SAP S/4HANA Finance tables
Fiscal Year Variants containing identical master data (number of special periods)
between company codes and controlling areas
Unsupported scenarios (e.g., ABC Delta Versions)
Additional checks for specific User Exits or BAdIs that are possibly incompatible
with the universal ledger concept of SAP S/4HANA Finance
73
Checking Prerequisites – Asset Accounting
• Program RASFIN_MIGR_PRECHECK performs prerequisite checks for New Asset Accounting
Details of program and how to implement can be found in SAP Note 1939592
• Checks include:
On New GL or not
If on classic, provides option to move to New GL as part of migration to Simple Finance
Joint Venture Accounting (JVA) must not be active on company code level
Lease Accounting Engine (LAE) must be not active
Classic Real Estate (RE) must be not active
In component PSM-FM, IS-PS: the request with reference to Asset must not exist
No Periodic Asset Postings are hanging
Depreciation area for parallel currency must exist
74
Additional Considerations for SAP S/4HANA Finance Conversion
• Moving to SAP S/4HANA Finance is a business-led project even if a system conversion
• From a finance perspective, the following dependencies must be resolved:
System conversion must occur at a fiscal period end
System conversion will require a short system downtime and a longer “freeze” of all
transactions during the full migration window (business downtime)
Any archived documents will not be migrated to the new Universal Journal and special
archive tables generated at time of migration to store archive documents
Migration must occur for all active company codes together in the system
It is not possible to only migrate certain company codes
All controlling areas and operating concerns associated with those company codes
must also be migrated
The system must be reconciled before and after system conversion
75
What We’ll Cover
• Understanding What SAP S/4HANA Finance Is
• Strategizing on the Landscape and Deployment Options
• Assessing the SAP S/4HANA Functional Impacts
• Understanding the Key Considerations for System Conversion
• Wrap-up
76
Where to Find More Information
• SAP S/4HANA Finance on the SAP Help Portal
https://help.sap.com/viewer/p/SAP_S4HANA_FINANCE
• SAP Line of Business Solutions Page
http://go.sap.com/solution/lob/finance.html
• Central Finance on the SAP Help Portal
https://help.sap.com/doc/saphelp_sfin300/3.5/en-US/93/54c0540cf5ef05e10000000a
4450e5/frameset.htm
• Janet Salmon, “SAP Accounting powered by SAP HANA – Frequently Asked Questions”
(ERP Corp, July 2014).
www.erpcorp.com/sap-controlling-blog/entry/sap-accounting-powered-by-sap-hana-
frequently-asked-questions
77
Where to Find More Information (cont.)
• Jens Krüger, SAP S/4HANA Finance: An Introduction (SAP PRESS, 2016).
www.sap-press.com/sap-simple-finance_3793/
• SAP S/4HANA Enterprise Management Product Page
http://discover.sap.com/S4HANA
• SAP Enterprise Performance Management Solutions Page
www.sdn.sap.com/irj/bpx/epm
78
7 Key Points to Take Home
• SAP S/4HANA Finance is an innovative new solution which can simplify enterprise
financial processes, reduce complexity, and provide real-time analytical and planning
capabilities
• It is possible to deploy SAP S/4HANA Finance in various scenarios, including on-premise,
cloud, and hybrid, as well as with different approaches to the migration
• The migration to SAP S/4HANA Finance is a major migration that involves many
configuration steps to consolidate GL, CO, AA, and ML into a single Universal Ledger
table
• Central Finance offers a unique deployment approach in which a new instance of SAP
S/4HANA Finance is deployed to receive FI postings from multiple heterogeneous ERP
systems
79
7 Key Points to Take Home (cont.)
• SAP BW and BPC are integrated directly into SAP S/4HANA Finance to allow for real-time
reporting, analytics, and financial planning activities
• SAP S/4HANA system conversion requires preparatory activities and system pre-checks
before starting the actual migration process – there are unsupported scenarios to be
aware of
• Moving to SAP S/4HANA Finance requires a mix of functional and technical skills,
including deep functional knowledge of FI/CO, GL, and AA to properly implement
80
Your Turn!
How to contact me:
David Dixon
@TruQuaE
Please remember to complete your session evaluation
81
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