Click on below mentioned link to see new Innovations on SAP S/4 FINANCE
For detailed information on the conversion process, please follow the below mentioned SAP SNotes.
|2390881||Consistency checks before the installation during the migration to Asset Accounting (new)|
|2332030||Conversion of accounting to SAP S/4HANA|
|2333236||Composite SAP Notes: Enhancements and message texts for the program RASFIN_MIGR_PRECHECK|
|1939592||SFIN: Pre-Check Report for migrating to New Asset Accouting|
|2180591||Currencies in FI-GL and FI-AA are inconsistent|
|2147666||Assigned ledgers in FI-GL and FI-AA are inconsistent|
|2105948||Check report for Financials add-on|
|1968568||Release Scope Information: SAP Simple Finance add-on 1.0 for SAP Business Suite powered by SAP HANA|
|2220152||Ledger approach and Asset Accounting (new): Non-calendar fiscal year variant for parallel valuation|
|2023763||SFIN: check old dc engine and parallel currency in precheck report RASFIN_MIGR_PRECHECK|
|2246638||Check parallel areas in ANLB is mssing in Precheck|
|2226973||sFIN: Period scaling does not correspond to the definition AFASL|
|2353504||ACC_AA 173 not issued in case of incorrect configuration|
|2359854||Precheck: No message handling when checking periodic APC posting|
|1976487||Information about adjusting customer-specific programs to the simplified data model in SAP Simple Finance|
|2186803||SAP Simple Finance, OP: Treatment of NewGL tables and customer enhancements|
|2160045||S/4HANA Finance: Fields of Appends to COEP and BSEG missing in table ACDOCA|
|2076652||SAP Simple Finance: SAP Note for adjustment of customer-specific programs for aging|
|2105948||Check report for Financials add-on|
|2408083||FAQ: Data Model of S/4HANA Finance Data Migration|
|2431747||General Ledger: Incompatible changes in S/4HANA compared to classic ERP releases|
Steps to remember for the Conversion:
Preparation of Data
Before starting system conversion, get system ready by performing the following activities:
⇒ Check the consistency of your financial data and perform reconciliation between your accounting components, so the data can be merged correctly in the universal journal entry. In SAP S/4HANA all line item documents are stored in the universal ACDOCA data table.
⇒ Perform period-end closing including the storage of reporting key figures and closing the posting periods.
- Lock the current and previous periods in Materials Management using program RMMMPERI.
- Perform closing for periodic asset postings using program RAPERB2000.
- Execute the periodic depreciation posting run using program RAPOST2000.
- Make sure that all held documents have either been posted or deleted.
- If you are already using account-based profitability analysis, perform a delta upload to SAP BW for all account-based CO-PA DataSources for which you use the delta method.
⇒ Document the posting data. Make sure that all carry forward balances are complete and consistent. To ensure this, carry forward the balances for all currencies and all ledgers.
⇒ Archive any data that you no longer need in every day business processes before the migration.
⇒ If you have not been using the new depreciation calculation from the Enterprise Extension Financials Extension (EA-FIN) you must implement it as part of a separate project.
Prepare Asset Accounting
Activate the new depreciation calculation in your source system. To do so you must activate the EA-FIN business function.
⇒ Pre-Checks help you identify the steps you need to take to ensure your system is compatible with the conversion process.
⇒ The Controlling and General Ledger pre-checks provided analyze whether your ledger, company code and controlling area settings are consistent and can be migrated to SAP S/4HANA. These Controlling and General Ledger pre-checks are automatically executed when you run the report R_S4_PRE_TRANSITION_CHECKS.
⇒ To run pre-checks for Asset Accounting (FI-AA), please implement the SAP Notes listed in the collective SAP Note 2333236. The pre-check program for Asset Accounting (FI-AA) is not included in the central pre-check report R_S4_PRE_TRANSITION_CHECKS. To execute the appropriate pre-checks for Asset Accounting, please run the report RASFIN_MIGR_PRECHECK.
⇒ Whereas you run the report R_S4_PRE_TRANSITION_CHECKS in client 000 to perform the checks across all clients, then run the report RASFIN_MIGR_PRECHECK in each productive client.
CGST means the tax levied under the Central Goods and Services Tax Act, 2016.
IGST means the tax levied under the Integrated Goods and Services Tax Act, 2016.
SGST means the tax levied under the State Goods and Services Tax Act, 2016.
Listed below are the important GST SNOTES released by SAP-INDIA
|2419215||GST IN: Changes for FI Invoice item level screen|
|2419214||GST IN: Changes to MIRO Invoice item level screen|
|2417506||GST India – Utilities|
|2415115||GST India – Changes to Transaction data- Data Dictionary activities|
|2410917||GST IN: Line item wise tax calculation for sales invoices|
|2410105||GST IN: Sales related changes for India GST for sales order creation and Invoice posting|
|2385575||GST India – Changes to Master data|
|2378678||GST IN: BAdI implementation in Enjoy transactions of FI and MM|
|2252781||FAQ on Tax procedure migration from TAXINJ to TAXINN|
|1175384||Minimum Support Package(SP) level to obtain support for legal change in India Logistics and Indirect taxes(CIN)|
|2428495||GST India: Corrections to note 2416018|
|501054||FAQ: Taxes in purchasing|
|2014164||TAXINJ to TAXINN Migration|
|2421394||GST India: Pre-requisites/FAQs/Solution|
SAP S/4 Finance, 1610 has ACDOCP table for Planning, which has a similar structure to ACDOCA. SAP Plans to switch all CO objects to update ACDOCP and it would be the “Single Source” for planning data. COSP/COSS tables will be replaced with ACDOCP in future.
ACDOCP will gradually expand to cover “Period based planning” i,e General ledger Planning, Cost Center Planning, Project/WBS planning and Profitability Planning etc.
The Object based plans that for Projects, Sales orders, Productions orders will write into ACDOCP in future.
ACDOCA and ACDOCP will bring the actual and the planning together all in one single source of truth.
Below mentioned Roles are required to activate “Manage bank accounts” app on Fiori.
The user must be assigned with role:
- SAP_BR_CASH_SPECIALIST (for On-premise Edition)
- SAP_BCR_FIN_CM_BAM_MC (for Cloud Enterprise Edition)
- SAP_BCR_FIN_CM_BANK_ACC_MGM (for Cloud Project Services Edition)
Back-End Server: Activate Web Dynpro Application:
Component: Web Dynpro Application
Technical Name: WDA_FCLM_BAM_HIERARCHY
Use transaction “SICF” and make sure that the ICF service for the Web Dynpro application is activated.
Back-End Server: Assign Role with Start Authorization for Web Dynpro Application:
Component: Back-End Role
Technical Name: SAP_SFIN_CASH_MANAGER
The Manage Bank Accounts transactional app provides an overview of your bank accounts in a hierarchical structure and allows you to maintain bank account master data according to your organization’s business requirements, as shown in
After you activate the multiple valuation approaches/transfer prices, it is not always easy to deactivate them again.
Currencies and valuations determine the functions of the transfer prices. In the currency and valuation profile, you must determine which valuation approaches are managed in which currencies. The legal valuation approach must be managed in the company code currency (currency type 10). You can decide whether the profit center and the group valuation approach are managed in the company code currency or in the group currency. To ensure a consistent update of the data, it is absolutely essential to use currency type 30 or currency type 10 as the controlling area currency in cases where there is an N :1 relationship between the company code and the controlling area. SAP Reference IMG > Controlling > General Controlling > Multiple Valuation Approaches/Transfer Prices > Activation > Set Up Transfer Prices in a Production.
Activities to be followed:
The following settings are essential in order to work with multiple valuation approaches.
- Currency and valuation profile
Using the currency and valuation profile, you must decide which valuation approaches you want to manage in the system. You can manage a maximum of three valuation approaches in two currencies in parallel. All valuation approaches that you maintain in the currency and valuation profile must also be managed accordingly in the material ledger. You can only execute a profit center valuation if you are using Profit Center Accounting. If you have defined the currency and valuation profile, you must assign this to a controlling area.
Customizing -> SAP Reference IMG > Controlling > General Controlling > Multiple Valuation Approaches/Transfer Prices > Basic Settings > “Maintain Currency and Valuation Profile” and “Assign Currency and Valuation Profile”.
- Create versions for valuations
In Controlling, the multiple valuation approaches are saved in the CO versions. As long as you are not using any transfer prices in accounting, use a current version “000” in the legal valuation. If you are using transfer prices, the operational version “000” saves all of the data (full version). The data of the multiple valuation approaches defined in the currency and valuation profile are stored in delta versions, which you must create.
The operational version represents the main Controlling approach that is used to control the company. You now need to define which valuation is managed in which version. You can decide whether the version “000” is managed in the legal valuation or in a parallel valuation. As a rule, you will manage the legal valuation in the version “000”. This setting is executed at controlling area level. You can check the consistency of the settings using the “Valuation” button. Customizing > SAP Reference IMG > Controlling > General Controlling > Multiple Valuation Approaches/Transfer Prices > Basic Settings > Create Versions for Valuations. If the version “000” is used to manage the legal valuation, this means that the sum total of the values from version “000” plus the delta version you created gives the transfer price.
- Material ledger
The material ledger (ML) provides a subledger for materials management. It forms the basis for managing multiple valuation approaches (ML manages the parallel inventory values) and MUST therefore be activated. First, you must set the material ledger to active in ML Customizing for the valuation areas. This tells the system that you intend to work with ML in the future. Important: You MUST activate the ML for ALL valuation areas/plants in all company codes of the controlling area in which the multiple valuation approach/transfer prices are to be activated.
Note: Do not make any postings in Materials Management (MM) and avoid other postings that refer to the ML until you reach the “Set valuation areas as productive” process step (see below)
You must then use the material ledger type to define the currency types you want to use in the material ledge. These currency types must correspond with those from the currency and valuation profile. If the currency and valuation profile only has two multiple valuation approaches (for example, a legal valuation approach and a profit center valuation approach), you can use the third currency field to maintain another currency. You must then assign the material ledge type to a valuation area.
Customizing -> SAP Reference IMG > Controlling > Product Cost Controlling > Actual Costing/Material Ledger, or Customizing > SAP Reference IMG > Controlling > General Controlling > Multiple Valuation Approaches/Transfer Prices > Basic Settings > Check Material Ledger Settings.
- Transfer prices in Profit Center Accounting (PCA)
a) Setting the profit center valuation in the currency and valuation profile is only useful if Profit Center Accounting is active. In the Customizing settings for Profit Center Accounting, you define which valuation approach is used in PCA at the level of the controlling area. If you decided, in the currency and valuation profile, to work with the profit center valuation approach, you MUST select the profit center valuation approach in PCA. Otherwise, you can choose freely between the legal valuation approach and the group valuation approach. Note that, in Profit Center Accounting (PCA), you can only ever manage ONE valuation approach, in other words, the legal approach is no longer available in PCA if you are using the profit center valuation. (The local currency then corresponds to the currency type 12). If you require the update of the legal values to be structured according to profit centers in parallel, this must be executed in parallel in an FI-SL ledger with a structure that corresponds to PCA ledger 8A.
Please also note that, if the transfer prices are activated, it is not possible to update the transaction currency.
Customizing > SAP Reference IMG > Enterprise Controlling > Profit Center Accounting > Basic Settings > Maintain Settings for the Controlling Area.
b) For the settlement with transfer prices, price determination must be set. Maintain the transfer price variant, the pricing procedures and the conditions. Create condition records for the transfer price conditions. For actual postings, only the transfer price variant “000” can be used.
Customizing > SAP Reference IMG > Enterprise Controlling > Profit Center Accounting > Transfer Prices > Basic Settings for Pricing and Advanced Settings for Pricing.
In order to analyze the transfer pricing during the activation phase or to detect incorrect settings, use the indicator “Condition Analysis” (Customizing -> … Basic Settings for Pricing and Advanced Settings for Pricing). This indicator activates the analysis for the entire system. Alternatively, you can set the SET/GET parameter DIA to X in the user master record, which activates the analysis for each user.
c) Define accounts for internal goods movements
As a result of settlement with transfer prices, additional postings are required in Profit Center for internal revenues, internal costs and changes in stock in order to ensure correct mapping. You must specify the accounts under which these postings are to be made.
Customizing > SAP Reference IMG > Enterprise Controlling > Profit Center Accounting > Transfer Prices > Settings for Internal Goods Movements > Account Determination for Internal Goods Movements.
d) Define account for production variances
When you use transfer prices for cross-plant production, a special account is required in order to settle production variances to the sending profit center rather than to the receiving profit center.
Customizing > SAP Reference IMG > Enterprise Controlling > Profit Center Accounting > Transfer Prices > Settings for Internal Gods Movement > Account Determination for Prod. Varian.
e) Define valuation approach clearing account
When using multiple valuation approaches/transfer prices, receivables and payables are only posted in the legal valuation view because the payment is made in this amount. However, if different valuations are posted for the offsetting account, the difference must be posted in valuation approach clearing accounts if it is to be reported in the consolidated financial statements. Maintain the valuation approach in Customizing -> SAP Reference IMG > Controlling > General Controlling > Multiple Valuation Approaches/Transfer Prices > Define Valuation Approach Clearing Account.
- Activate transfer prices
Activation of the currency and valuation profile represents the final step in the required Customizing settings. The currency and valuation profile must not be activated until you have made all of the Customizing settings required for the activation. Use the check function beforehand. Customizing -> SAP Reference IMG > Controlling > General Controlling > Multiple Valuation Approaches/Transfer Prices > Activation > Multiple Valuation Approaches: Check/perform the activation.
- Set the valuation areas as productive.
In this step, set the valuation areas that correspond to the plants as “productive”.
Menu > Accounting > Controlling > Product Cost Controlling > Actual Costing/Material Ledger > Environment > Production Startup > Set Valuation Areas as Productive.
Depending on your requirements, individual applications can now be included in the transfer price solution. The applications mentioned below are data-receiving modules and therefore do not affect inventory management or the results of the various valuation approaches For this reason, these modules can also be optionally provided with the data from the multiple valuation approaches.
- Transfer prices in product cost planning
The multiple valuation approaches in the material ledger can either be maintained manually or determined using product cost planning. Product Cost Planning offers the option of determining standard costs for each valuation approach (legal, group, profit center) and updating these in the ML For this reason, as of Release 4.0, three costing variants can be created in Customizing, which can determine the costs in each valuation approach and update the standard prices using the usual logic (allow marking, marking, allow release, release) from the corresponding views in the ML. The costing variant is assigned a costing type, which determines which valuation approach costing is carried out. The costing type similarly determines whether the standard price of the corresponding valuation approach can be updated by the costing variant.
Customizing -> SAP Reference IMG > Controlling > Product Cost Controlling > Product Cost Planning > Material Cost Estimate with Quantity Structure > Define Costing Variants and Costing Variant: Components > Define Costing Types.
When calculating the values for the profit center valuation approach, you need to take account of pricing when you change the profit center, as you would in the actual allocation. In the “Quantity Structure” folder, set the indicator for costing across profit centers. The costing version controls which transfer price variant from Profit Center Accounting is to be used as part of costing. Customizing > SAP Reference IMG > Controlling > Product Cost Controlling > Product Cost Planning > Selected Functions in Material Costing > Define Costing Versions.
The group costing saves the valuation differences from the legal and profit center valuations in additional cost components for the cost of goods manufactured. You must create these cost components for the cost of goods manufactured in addition to the usual cost components. You must also identify them as such on the detail screen for cost components for the cost of goods manufactured using the field “Delta Company Code” or “Delta Profit Center” field. Customizing > SAP Reference IMG > Controlling > Product Cost Controlling > Product Cost Planning > Basic Settings for Material Costing > Define Cost Component Structure.
In this step, you specify that the cost components of the material costing, sales order costing or order BOM costing are to be updated both in the currency of the company code, and in the currency of the controlling area. This processing requires that the indicator “All Currencies” is set as the control indicator for the controlling area. Customizing -> SAP Reference IMG > Controlling > Product Cost Controlling > Product Cost Planning > Selected Functions in Material Costing > Activate Cost Component Split in Controlling Area Currency.
- Transfer prices in Financial Accounting
In Financial Accounting, you have the option of managing additional multiple valuation approaches. The management of additional valuation approaches in financial accounting is handled the same way as the management of additional local currencies. The additional currencies that are managed are also assigned the dimension valuation. The legal valuation approach in the company code currency is mandatory because it is a prerequisite for the legal inventory valuation and thus for the legal settlement. If you decide to work with additional valuation approaches in Financial Accounting, the Customizing of the “additional local currency” must be set up in the basic settings in financial accounting for the relevant company codes. Here, you define which additional valuation approaches are updated and specify the additional ledgers in which the aggregated data is updated. The additional value approaches created in financial accounting must be the same as the valuation approaches stored in the currency and valuation profile. The consistency of the settings is checked when you activate the parallel valuation approaches. Customizing -> SAP Reference IMG > Financial Accounting > Financial Accounting Global Settings > Company Code > Parallel Currencies > Define Additional Local Currencies or Define Additional Local Currencies for Ledgers.
Benefit: FI transfers the currency translation for the parallel currencies and supplies PCA with lines in profit center valuation. The currency fields KSL and, if necessary, HSL are then transferred directly from the values delivered and do not have to be calculated in Profit Center Accounting. Basically, a calculation is only required if the currency types or currencies from the delivered currency lines do not match the settings in PCA (transaction 0KE5).
Advantage/disadvantage: The multiple valuation approaches are part of the FI document and are visible from the display of the FI document (transaction FB03) via the “Display Currency” button.
Advantage/disadvantage: For each additional valuation approach maintained in the parallel FI local currencies, a separate depreciation area MUST be created in Asset Accounting.
We recommend that you maintain the base currency 2 “Conversion from the first local currency” for the multiple valuation approaches. As amounts in multiple valuations are also always converted automatically using the exchange rate type ‘M’ in many SAP applications , you should similarly always maintain the exchange rate type ‘M’ in transaction OB22 for multiple valuation views.
- Transfer prices in Asset Accounting
If additional valuation approaches are managed in Financial Accounting, these MUST also be managed in Asset Accounting. For each additional valuation approach in Asset Accounting, you must create a separate valuation area. The valuation type is assigned a currency type, which defines the currency and the valuation
Customizing > SAP Reference IMG > Financial Accounting > Asset Accounting > Valuation > Depreciation Currencies > Define Parallel Currencies.
- Transfer prices in the profitability analysis.
Transfer prices in the profitability analysis are available only as of Release 4.5. Activating profit center valuation allows internal sales between profit centers (for example, stock transfers between two plants or material withdrawals) to be analyzed at transfer prices in the profitability analysis in addition to external sales. When you activate the profit center valuation, line items with profit center valuation are created in addition to the valuation approaches with legal valuation. As a result, the data volume is roughly doubled during the actual data update. However, the number of profitability segments remains unchanged.
a) In the Customizing settings for maintaining the operating concern, you define whether the profit center valuation is managed in CO-PA as an additional valuation approach When you generate the operating concern, the required data structures are then created for this. Customizing > SAP Reference IMG > Controlling > Profitability Analysis > Structures > Define Operating Concern > Maintain Operating Concern.
b) The group valuation approach is managed in the data structures of the legal valuation in additional value fields. To control the costs and revenues in the different view separately, you must create additional value fields and assign them to the data structures. The field contents must be filled using the CO-PA user exit, as an entry using value field assignment is not possible. The profit center valuation in updated in a separate ledger. No separate value fields are required.
c) Activate the partner profit center for use. Customizing > SAP Reference IMG > Controlling > Profitability Analysis > Structures > Segment-Lvl Characteristics.
d) Assign the value fields of the profitability analysis to the accounts for internal goods movements between profit centers (from transaction 0KEK). The quantities of the internal goods movements can similarly be transferred into the corresponding quantity fields. Customizing > SAP Reference IMG > Controlling > Profitability Analysis> Flows of Actual Values > Parallel Valuation Approaches/Transfer Prices > Assign Accounts for Internal Goods Movements.
e) Assign the SD conditions to the corresponding value fields in Profitability Analysis. Customizing > SAP Reference IMG > Controlling > Profitability Analysis > Flows of Actual Values > Transfer of Billing Documents.
f) The profit center valuation in profitability analysis must be activated for each controlling area. Customizing > SAP Reference IMG > Controlling > Profitability Analysis > Flows of Actual Values > Parallel Valuation Approaches/Transfer Prices > Activate Profit Center Valuation.
- Transfer prices in sales and distribution
Multiple valuation approaches can be used both for sales to external customers and for cross-company code sales with affiliated companies. For this purpose, you must include the condition types with the relevant control in the pricing procedures. The following condition types are provided:
Condition category “b” for conditions used to determine group production costs. The value from the material ledger is automatically read in the group valuation. Condition type delivered in the standard system: KW00.
Condition category “h” for conditions used to determine the profit center production costs. The value from the material ledger is automatically read in the profit center valuation. Condition type delivered in the standard system: PCVP.
Condition category “c” for the conditions used to determine the profit center prices. It is necessary to define the relevant prices. Condition type delivered in the standard system: PC00.
Activation of Material Ledger is mandatory on S/3 HANA due change in the data design for Inventory valuation but activation of actual costing is not mandatory on SAP S/4 HANA.
Below mentioned screen shot prescribes traditional Inventory management Vs S/4 HANA Inventory management based on Material ledger.
Material Valuation in SAP S/4 HANA allows Up to 3 currencies,
- Tracking historic rates in Material master.
- Local legal valuation & e.g hard or trading currency.
- Optional revaluation of stock and COGS
- Leverage Actual cost component
Activate Material Ledger
We activate the Material ledger for one or more valuation areas, if the material ledger is active for a particular valuation area, all materials in the valuation area are valuated using the material ledger.
But SAP recommends if you activate the material ledger for a plant, you should also activate it for all the other plants in the company code. This ensures that the accounts in Financial Accounting and Materials Management are reconciled.
Activate Valuation Area’s for Material Ledger:
In this activity, you can specify in each valuation area that a planned price is activated as the valuation price upon the first goods movement in a new posting period as long as the validity date of the planned price has been reached.
The planned prices are handled by the system with the following priority:
- Marked standard cost estimates
- Future valuation prices
Inventory and material movements are generally valuated either at Standard price (S) which is constant over a period of time or Moving average price (MAP) which gets adjusted (calculated) automatically based on every Goods receipt or Invoice receipt. Both of these two methods have their own pros and cons. Actual costing combines the advantages of standard price with advantages of using MAP.
ML captures all price variances (like purchase price variances, production variances etc) and allows (as optional period end activity) revaluation of ending inventories at period end and releases it as standard price (generally) for next period. Actual costing is optional in S/4 HANA.
Activate Actual Costing:
Depending on which activation type is chosen
- Actual consumption is updated in the quantity structure but not considered by price determination.
You can use this setting if you simply want information about the complete actual quantity structure. You can assign variances between the plan price of the cost center/activity type or process, and the actual price calculated at period end to the particular cost object at period-end closing using the function ‘Revaluation at Actual Prices’.
- Actual consumption is updated in the quantity structure and taken into account for the price determination.
If you choose this setting, the variances between the plan price and the actual price are adjusted subsequently. The cost center or the process is then credited and the material associated with the consumption is debited. In the context of multi-level price determination, these variances can be rolled up through the production structure up to the finished product in the same way that material price variances are rolled up.
If you choose this setting, you cannot use the function ‘Revaluation at Actual Prices’ at period closing in Cost Object Controlling, as the variances from the cost centers/processes are debited to the material direct. If you do use the function ‘Revaluation at Actual Prices’ at period closing, the cost centers/processes are credited twice and the materials are debited twice.
We have to keep below mentioned points during Migration of Material Ledger Customizing:
- The material ledger is required if you are using SAP S/4 HANA Materials Management – Inventory Management (Simplified Logistics).
- You need to migrate the material ledger even if you are already using SAP Simple Finance (that is, you are migrating from SAP Simple Finance to SAP S/4 HANA Inventory Management).
- You need to migrate the material ledger even if you are already using the material ledger in your source system.