Sap S_4 Hana Finance.pdf 5c6q6h

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SAP S/4 HANA Finance Insights | Vinil Menon,PMP®,TOGAF®,ITIL® | Pulse | LinkedIn

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SAP S/4 HANA Finance Insights Published on September 15, 2016

Vinil Menon,PMP®,TOGAF®,ITIL®

Follow SAP FICO/S4 HANA Simple Finance Solution Architect at Aujan C…

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COPA in SAP SIMPLE FINANCE In the past, SAP advised companies to use costingbased COPA rather than, based COPA. The main reason for this was: Companies wanted a contributionmargin report with a breakdown of their costof sales down to the cost components level for each cost bucket They wanted a production variance report by variance categories They wanted a breakdown of the individual cost buckets beyond the total value that was posted to the general ledger. This functionality was not available in COPA  based before and therefore most of the companies used Costing Based COPA. The biggest issue with Cost based was the reconciliation effort, because costing based COPA did not use a direct alignment to the general ledger s. SAP’s latest SAP Simple Finance product , uses SAP HANA as its primary database, and opened up new options to build a COPA structures aligned with the general ledger. Due to this SAP enhanced based COPA in SAP Simple Finance to provide:

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Detailed information on the cost of goods, break down costofsales to the cost

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component of each cost bucket Production variances by variance categories Invoice quantities Reconciliation between COPA and the GL at  level Due to this new functionality in Simple finance SAP is now advised companies to use based COPA and not costingbased COPA New Features in Simple Finance for COPA Define s for Splitting the Cost of Goods Sold By default, the cost of goods sold is posted to a single COGS  as defined in the determination settings for material movements. In this Customizing activity, you can refine the settings for COGS postings to split the COGS amount and post it to different s according to the cost component elements Steps 1. Create new G/L s on which you want to reflect the single cost components of the COGS posting. 2.  Specify a splitting scheme for your chart of s and assign a cost component structure. The cost component structure groups the costs for each material according to cost component (such as material costs, internal activities, external activities, and overhead) 3.   For each splitting scheme, specify the following information:   to which all cost of goods sold are posted according to the determination settings for material movements Cost component structure New COGS target  for the specified cost component (profit  or loss 4. Assign the splitting scheme to the relevant companies. To activate this split, follow IMG menu path Financial ing (New) > General Ledger ing (New) > Periodic Processing > Integration > Materials Management > Define s for Splitting the Cost of Goods Sold in the IMG


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   Define Additional Quantity Fields In financial ing, reporting mainly focuses on amounts but sometimes you also want to include quantities in your reporting. For example, in the consumer goods industry it is common to store not just the quantity in the sales document (for example, box or pallet) but also to convert that quantity into a quantity that is common across all product lines (for example, pounds weight). This allows for the aggregation of quantities across product lines. You can then use these common quantities as drivers for management ing (CO) allocation. In Customizing, a standard unit of measure can be defined to ensure that the quantities can be totaled and is required if you want to use totals as drivers in allocation or top down distribution. If you specify a standard unit of measure, updates to the line item table of the record are done using this standard unit of measure.    Activities 1. Assign a dimension to the additional quantity fields you are going to use. 2. If you want to allow the aggregation of quantities in order to use them as drivers in allocation or topdown distribution, specify a standard unit of measure


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3. 3. Implement the logic to fill the additional quantity fields in the BAdI

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FCO_COEP_QUANTITY for a specific controlling area. Example Assign dimension Mass to an additional quantity field. Implement coding to fill the additional quantity field in the BAdI FCO_COEP_QUANTITY. For example, calculate mass according to the entered number of pieces.

  Define s for Splitting Price Differences In this Customizing activity, you can refine the settings for splitting variance categories into general ledger (GL) s. This allows you to do detailed analysis on prices differences in your income statement. When the costs of producing materials are valuated based on standard prices, production variances can occur on production orders where there are differences between the actual costs and the target costs. These production variances are calculated in Product Cost Controlling (COPC) and are split into different variance categories. Depending on the reason for the differences, the system calculates the production variance, for example, price variances, quantity variances, lotsize variances, and scrap. With the settlement of the production orders, you can post the production variances to Financial ing (FI) and Profitability Analysis (COPA). The amount settled to COPA can be settled to different variance categories so that after settlement you can display the singlevariance categories in different value fields in costbased COPA. The amount settled to FI is normally shown as one total amount on a G/L  for price differences. This  is defined in the  determination settings for material movements. The variance categories and therefore the reasons for the variances can normally not be reflected in this FI posting. With this customizing activity, you can refine the FI posting to show the different variance categories for each cost element on different G/L s allowing you to show, for example, in your income statement, the reasons for the production differences. Requirements    The following prerequisites must be met: You work with standard prices for producing materials. You have executed the variance calculation in COPC.


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You have defined a settlement profile that allows the settlement of variances for

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your order type. For settlement to cost based COPA, you have defined a profitability ing (PA) transfer structure.

Activities For a refined posting of production variances on different G/L s in FI, you have to make the following settings: 1. Create new G/L s on which you want to reflect the postings of the different production variance 2. Choose the Customizing activity Define s for Material Management. In the view Configuration ing Display, choose transaction PRD Cost (Price) Differences your chart of s. Assign the G/L s where price differences are normally posted to for the relevant valuation classes of your materials. 3. Specify a splitting scheme for your controlling area and your chart of s. 4. Enter a cost element, cost element interval, or cost element group and/or a variance category and assign one of the newly created G/L s where you want to reflect these differences. Multiple cost elements and/or variance categories can be reflected at the same G/L . 5. Select the Default checkbox for one of the entries. If no target  is specified for a cost element/variance category, the system automatically posts these amounts to the default G/L . 6. Assign the splitting scheme to your company code and enter a valid from date.


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Asg Scenarios to Ledgers not required in S/4 Previously Scenarios need to be assigned to Ledgers (for eg: Segment,Cost Center, Profit Center). This is no More required because ACDOCA contains all those Fields. Real time Integration between FI and CO is Pre built Functionality in S/4 because CO is posted to the same journal entry Ledger Table (ACDOCA) as FI at the same time. Not Required to to Specify the Document number range for a local ledger Postings, it always uses the leading ledger now. SAP New Asset ing : Posting with the s Approach Set up company code / Chart of Depreciation with the s approach, and created an asset and posted a credit to the vendor, and debit to the asset. 31 Vendor $4,000 70 Asset $4,000 And the result was 3 transactions:

As in the ledger approach, it posted to the 'Technical Clearing ' 199999.


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The 2nd document generated posted the asset's APC and offset the Technical clearing . The 3rd document generated highlights how the s approach works with New asset ing:

I set the ledger group IFS2 to Depreciation area 05. I created another APC  to post to  160061 rather than 160060 . Keep in mind, Ledger group IFS2 posts to Leading ledger 0L. With the s approach, SAP requires a contra  from the assignment, in this case, it's 199997 . As with the old s approach, keep in mind you have to set up a new Financial statement version with the correct  s set up .

Above is the posting as viewed from one ing principle (i.e. IFRS).


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Above is the posting as viewed from the GAAP ing principle. What's going to into what tables? The concern was, how would our extracts work if everything is going into the Universal table both FI and CO? What was happening to Results Analysis postings, Allocations. Does BSEG still exist? etc. I did a few different postings for testing 1.          FB60 Invoice 2.          Activity Allocation 3.          RA calculation FB60: Not much different here, except for the obvious ACDOCA gets posted.

Activity Allocation: The question here was, for a CO only transaction, such as an activity allocation or assessment, what gets posted to ACDOCA? Does BSEG get posted (Answer: No)? I set up a simple activity allocation, transferred a few hours from one cost center to another . 1.          COEP is still posted , as does COBK. 2.          BSEG does not get posted 3.          ACDOCA does get posted. The secondary cost element is stored in the same field as a regular GL  would be.


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As you can see the table entries above, ACDOCA not only stores the secondary postings, but also the GL postings (balancing entries). The RACCT ( Number) stores both primary and secondary. ACDOCA does keep track of what kind of posting it is

RA Calculation: I did a simple RA calculation on a WBS element that had costs post to a Primary Cost element, and at period end you run KKA2 to calculate WIP. The question that was asked, is where do the RA calculations go? The simple answer is, they go where they have always gone: COSB. Since they are not really postings, the RA values are calculates and stored on their secondary cost elements and still kept in table COSB. There are no postings to the ACDOCA table. When listing documents in FB03 The Below Warning message in the earlier version is not displayed in S/4.

Transaction Code FI12 is no more used for House Bank


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SAP has taken away the ability to create a House bank  using the FI12

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transaction using the SAP Gui.

Note in the House bank views, you won't find the node anywhere to create the banks. You have to create the s using the delivered Fiori app.


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Must choose the role SAP_SFIN_CASH_MANAGER)

Convergence of GL Master and Cost Element Master

We will look at the convergence of long standing pieces SAP ERP finance master data, the GL  and the Cost Element. As anyone that has worked with SAP CO in the past knows the cost element is key to the controlling side of SAP. It in an object that allows you to identify the type of activities that can be done within controlling with that . They are generally divided into Primary and Secondary cost elements. · Primary cost elements have an associated GL  and are generally expense or revenue s. ·   Secondary cost elements exist only in CO and are used for internal settlements, assessments, and allocations. When creating a new revenue or expense  in the GL you have to create a corresponding cost element in CO and typically all you were doing was selecting a Cost Element Category. With the Simple Finance , the traditional cost element create, change and display transactions are gone. The functions have been combined in FS00 Manage G/L Centrally. This greatly simplifies the act of creating a new  and eliminated the need to maintain separate masters. On the Type/Description screen there is a new field called  type. If you select either "Primary Costs or Revenue" or "Secondary Costs" a new field will appear on the Control Data tab for you to enter the Cost element type. Primary Cost Example:


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Secondary Cost Example:


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  Functional aspects of the migration to Simple Finance Another important point is that the new GL is not a prerequisite for an implementation of the GL In SAP ing. You can perform the migration straight from the classic GL to the GL in Simple Finance. The GL in SAP ing is very similar to the New GL in SAP ECC: it provides the same capabilities as new GL and leverages its data structures, but it is further optimized for HANA, for example no totals tables, convergence with CO, better reporting, etc. Existing PCA (profit center) and SL (special ledger) functions and features from classic GL can remain in place. However, be aware of one limitation when migrating from classic GL: document splitting and parallel ledger cannot be implemented yet (this restriction is planned to be lifted later on with a  Pack). So, if for example you wanted documents split now in sFIN, you would have to migrate first in new GL, activate the document split, and then migrate to sFIN. Finally, the migration also moves you to New Asset ing (NAA). Modifications to the ERP data model: Here is the list of FI/CO tables removed in SFIN: Index tables removed: BSIS Index for G/L s BSAS Index for G/L s (Cleared Items) BSID Index for Customers BSAD Index for Customers (Cleared Items) BSIK Index for Vendors BSAK Index for Vendors (Cleared Items) https://www.linkedin.com/pulse/saps4hanafinanceinsightsvinilmenonpmptogafitil

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BSIM Index, Documents for Material

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FAGLBSIS Index for G/L s – New G/L FAGLBSAS Index for G/L s – New G/L (Cleared Items) Aggregate tables removed: GLT0 General Ledger: Totals GLT3 Summary Data Preparations for Consolidation FAGLFLEXT New General Ledger: Totals KNC1 Customer master (transaction figures) LFC1 Vendor master (transaction figures) KNC3 Customer master (special G/L transaction figures) LFC3 Vendor master (special G/L transaction figures) COSS Cost Totals for Internal Postings COSP Cost Totals for External Postings The remaining physical tables are fully Line Items based. All dimensions are available for fast analysis with SAP HANA. There are no more limitations by predefined totals or aggregates as before. Data structures can be easily enhanced with custom dimensions (just update the line item table). Please note that all those deleted tables are replaced by HANA CDS views. So those suppressions will not affect existing custom ABAP code as long as such code is not writing in one of those tables: custom programs and reports with read access to old tables will continue to work.    Optimized transactions: Many period close transactions have been optimized for HANA in SFIN: Settlement (plant selection)                                    CO88 > CO88H Settlement (maketoorder sales orders)          VA88> VA88H Settlement (internal orders)                                    KO8G> KO8GH


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Settlement (projects)                                                 CJ8G > CJ8GH

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Results Analysis                                                             KKAK > KKAKH (POC method or revenuebased) WIP Calculation at Actual Costs                                               KKAO > KKAOH Variance Calculation w. Full Settlement              KKS1> KKS1H Variance Calculation for Cost Centers                   KSS1> KSS1H Harmonized External and Internal Reporting in SAP ERP: ·        Link on line item level (1:1) between Financial ing (FI) and Management ing (CO) ·        Link from CO line items to dimension table in profitability analysis (COPA) ·        Enhancements of based COPA (detailed postings for costofgoodssold and variances) ·        Logical document (HANA view) for analyzing the converged data ·        New detailed analysis of Work in Process ·        RealTime Operational Reporting in SAP ERP ·        No need for timeconsuming extraction into and separate (delayed) reporting via SAP BW ·        Reporting across multiple SAP or nonSAP ERP systems with deployment option “central journal” New Fiori  Interface: SAP Gateway prerequisite: SFIN introduces a brand new  experience, simplified and ergonomic, to Finance with Fiori. You must know however that Fiori has technical requirements of its own. The prerequisite of Fiori for an ABAP based application is the middleware SAP Gateway. SAP Gateway is part of Netweaver 7.4, so it is automatically installed with ECC. But for a production system, SAP recommends that you use a Central Hub Deployment of SAP Gateway. This means you install SAP Gateway independent of ERP on a standalone system, either behind or in front of the firewall. You therefore separate back https://www.linkedin.com/pulse/saps4hanafinanceinsightsvinilmenonpmptogafitil

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end components from frontend components. For production systems, SAP does not

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recommend the Embedded Deployment option. So you will need to plan for installing Gateway if it is not already in place in your SAP landscape. Finally, be aware that the old retired transactions replaced by redeveloped Fiori applications will not be accessible anymore through the SAP GUI. If you attempt to start them, you will get a popup redirecting you toward the Fiori Launchpad of Simple Finance. SAP Single Source of Truth with Universal Journal Before we answer this question, let us get a small introduction. The Universal journal entry eliminates the need for the separation made previously between Financial ing (FI) and Controlling (CO) (single source of truth). There is a combined FI and CO document linked with a logical document. All the information is recorded in 1 line item table (ACDOCA). Since financial ing and managerial ing are reconciled constantly, there is no longer any need for reconciliation between FI and CO or between FIGL and FIAA. Nor is there any need for the realtime integration of these components. The reports in all components use data from the same journal and thus known as Universal journal. For this functionality to work there is a change in master data, architecture of the tables and also in configuration. Let us see the major changes in these areas. All cost elements (primary and secondary) need to be portrayed as G/L s. Consequently, we no longer need to enter the master data for cost elements separately; instead, we only need to create G/L s from now on. You will not find any transactions related Cost elements. Below screenprints between ECC EHP7 for SAP ERP 6.0 and S4HANA ON PREMISE 1.0


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Now, let us see what does the one source truth means in SAP system. I posted a FI document which triggered entries in BSEG, FAGLFLEXA, FAGLFLEXT, COBK, COEJ and COEP tables (and some more BSIS, etc.) in ECC. Compare it with a posting in S4HANA ON PREMISE 1.0, all the information is recorded in BKPF (header) and ACDOCA (line items). Thus reducing the foot print drastically. What will happen to old tables? Updates are no longer made to these old tables. Nevertheless, you can continue to use reports that use data from these old tables. This is because compatibility views for a data request from one of these tables read the data from ACDOCA. Let us compare the views in these ECC tables with ACDOCA. FI tables

CO tables


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ACDOCA (Universal Journal

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Now, let us review with one use case by posting FI document to a P&L acct with cost object as profitability analysis. Note this S4HANA On Premise 1.0 system had Based COPA active. There is no separate COPA document visible in the ing document workflow (refer the screen print below), a controlling document is a logical document. Realtime integration is no longer applied. Instead, CO transactions are posted directly as an universal journal entry (ACDOCA). As secondary cost elements are also contained in the chart of s,  assignment to a different  is no longer necessary.

Analysis on ACDOCA: This universal journal can easily be extended with the coding block and adding COPA characteristics (refer the below screen print). Also, actual data posted will be stored in ACDOCA with all the Characteristics defined in the operating concern. These standard coding block extensibility and customer fields are added automatically to the universal journal.


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Adding to the advantage, reporting based on the ACDOCA data is fast and flexible.

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Business Intelligence (BI) frontend tools can be used for operational reporting, thus the benefits of BI tools are inherited by the transactional system. Also, each journal entry contains the ledgers to which the business transactions are posted.

The profitability segment are stored in CE4XXXX tables as before.

The below table will give an snap shot of what has changed in COPA area.

Since SAP has redesigned their architecture on  based costing, the tables impacting are also on  based. Architectural Analysis: ·        COEP table will still exist and be written with entries except for Value type 04 and 11. ACDOCA will get updated with 04 and 11 value type. ·        Compatibility views for tables are available on all traditional tables. E.g.: V_COEP. This is very helpful; since customers who have build programs with these traditional tables can still use them. Via this view the select is redirected to the new table ACDOCA. ·        Access to old table data is still possible with V_tablename_ORI e.g. : V_COEP_ORI, V_FAGLFLEXA_ORI, etc. ·        COBK still will be written as before. ·        COSP and COSS will all be written directly to ACDOCA. ·        New tables COPS_BAK: Primary cost: Planned cost and commitments and COSS_BAK : Secondary cost : Planned cost and commitments, will be updated with entries other than value types 04 and 11. Further to my explanation above, the universal journal entry has its own currency fields. This brings the currency concepts used in FI and CO closer together. Also, to substantiate this answer, a big advantage of this universal journal is that reconciliation efforts are enforced by design. https://www.linkedin.com/pulse/saps4hanafinanceinsightsvinilmenonpmptogafitil

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There are few things to improve in future from my view. As explained above, the

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Universal Journals can be extended with customer COPA characteristics this means if a customer has multiple operating concerns then all the characteristics will be included in the journal. This might cause an issue and will increase the fields unnecessarily. Also, the idea of keeping CE4XXXX table is unclear now since there is only one table to navigate and all the characteristics are filled directly in Universal Journal. There is no use of this table anymore. Having said this, still this concept has enormous advantage for customer. Overall, after a long wait, SAP has successfully completed the task of brining different sources into one. Thus, with S/4HANA Finance/Simple Finance has a Single Source of Truth with Universal Journal.

The Universal Journal table, provides a single source of truth in ing and controlling where: ·        All financial transactions are written including transactions from s payable, s receivable, general journal, material ledger, asset ing and COPA sub ledgers. ·        All reports are based, from high level financial statements to detail level s payable summaries and daily check log to apply against s receivable transactions. ·        Transactions can be tracked from original purchase order of raw materials to final sale of finished goods.

The following topics below describe actions that can be taken even if your company will or will not migrate to SAP HANA:


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Data centralization: Analyze your system landscape around your current ERP system and check data storage duplication, for example, legacy system storing same information as your ERP in another database. There is no sense to apply SAP HANA with a system landscape with a lot of legacy system and databases integrated by interfaces. Process redesign: some process cannot be applied in your current system due to data processing and management. For example, production process and online back flush in a repetitive manufacturing sometimes is not possible due to the high volume of database lock deg the current production process to have asynchronous generating WIP materials when actually it does not exists. At this point raise ideas that could be implemented or improved with inmemory technologies resources. Refresh and redirect your knowledge: your functional skills will be enlarged and not lost with SAP HANA technology. It's the chance to redirect ways of working so far to inmemory technologies and suggest improvements currently undelivered for technical limitations. This way of think will refresh your knowledge and prepare yourself for the near future.

Integration and crossbusiness process understand: the goal to delivery realtime information across all business process will require from us the crossbusiness understand. The information will be triggered and integrated in realtime all business areas involved. It will be necessary to understand the information from the start until the end.

1 Prerequisite : In order to show finance posting analysis, we need. ·        SAP Simple Finance system fully configured ·        SAP HANA LIVE Studio with the standard package imported ·        SAP Lumira connected to SAP HANA ·        SAP Lumira map extension activated ·        Esri GEOMAP ·        Your financial posting https://www.linkedin.com/pulse/saps4hanafinanceinsightsvinilmenonpmptogafitil

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For instance, the following finance posting has been done in the SFIN System.

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Company 1 with 14 888 550 euro of turnover Company 2 with 17 780 000 euro of turnover

2 HANA LIVE Data model creation: Create or extend a standard calculation view (based on ACDOCA table) in order to extract turnover data.

A relevant data selection can be performed. 3 SAP Lumira analytics : Add a new dataset getting the financial report based on the calculation view below.


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Your report is ready, you can display it and breakdown data as needed. The first screen is a global turnover view “by country”.

Then you can breakdown it to display turnover by country and G/L .

In conclusion, thanks to those new features, CFOs can benefit from turnover geolocation presentation on any device which is very important in the big data era. In MRP logistics processes, for example, stock can be displayed by store or by region which can help for appropriate replenishment.


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Vinil Menon,PMP®,TOGAF®,ITIL®

SAP FICO/S4 HANA Simple Finance Solution Architect at Aujan Coca-Cola Beverages Com… 9 articles

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Krishna Rao

5mo

Manager -Finance at Mother Dairy Fruit & Vegetable Pvt. Ltd

congrats sir Like

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Pitamber Bisoi

6mo

SAP FICO Consultant

Thanks sir for sharing the information Like

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