KEY FEATURES OF SAP S/4 HANA FINANCE – 1709 ON-PREMISE

It’s high time to learn new Finance automation process and accept changes that comes with SAP Leonardo for faster decision making, adaptability, innovation, business acceleration, better outcomes and it keep’s SAP customer’s employees focus on the real job to be done.

Let’s go through the “Finance – Innovations”

  • Universal Journal: Subsequent implementation of document split
  • Parallel valuation: 3rd currency in Controlling and Cost of Goods Manufactured.
  • Accounting: General ledger document split
  • Financial Planning: Basic Sales Planning (Activity Price, Consumption)
  • Cash Management: Bank relationship management including bank fee analysis; Improved Integration with Bank Communication Management and In-House Cash
  • Machine Learning for Cash Application – Invoice Matching clear incoming payments by matching them with the corresponding receivables
  • Soft close and prediction: Minimum closing time; Early insight into business trends
  • Integration: Seller-side integration with Ariba Network (invoice and discount management); Cost center (SuccessFactors); Payment advice (Fieldglass); Ariba Pay/ Supply Chain Finance
  • Central finance
  1. Shared Services in Accounts Payables/Receivables
  2. Central reversal and correction capabilities
  3. financial reporting scenarios
  • SAP Fiori apps Roles
  1. Accounts Payable/Receivable Accountant
  2. Accounts Receivable Manager
  3. Controller (Production Costs, Credit)
  4. Treasury Risk Manager
  5. Asset Accountant
  6. General Ledger Accountant
  7. Inventory Accountant

oast.jpg

TOPIC – 1: UNIVERSAL JOURNAL – SUBSEQUENT INTRODUCTION OF DOCUMENT SPLITTING

To fulfill the IFRS reporting requirements, you need to report your financial data at a lower level of detail than your company code. With this feature, you can introduce new account assignment objects, such as segment or profit center, and add these account assignments to your journal entries when you post them. To ensure that you have a complete reporting view of each account assignment object, the opening balance is enriched and split, per account. The enrichment of relevant accounting data is carried out in the project cockpit, according to the new account assignment information. To ensure correct processing of open items, at the time document splitting is active, this feature allows you to enrich open items.

Picture1.png

TOPIC – 2: MACHINE LEARNING – SAP CASH APPLICATION INTEGRATION

SAP Cash Application is a cloud service that integrates with S/4HANA Cloud Edition as of 1702 and S/4HANA on-premises as of 1709 (hybrid model).

The integration to SAP Cash Application solution intends to automate the invoice-matching process and provide the prediction results back to the SAP S/4HANA system with the help of machine learning.

SAP Cash Application enables you to match open receivables to incoming bank statement items using machine learning.

In the finance area, and more specifically in the area of accounts receivables, incoming bank statement items are ideally matched automatically to open receivables such as invoices. Any manual post-processing of incoming bank statement items that could not be matched to open receivables takes time and effort. SAP Cash Application uses machine learning procedures to train financial applications in order to learn from manual matchings, and thus achieve higher automatic matching rates.

 KEY FUNCTIONALITIES OF SAP CASH APPLICATION:

⊕ Proposing open receivables for incoming bank statement items

You can schedule jobs to receive a list of Machine Learning proposals for matching receivables to existing bank statement items

⊕ Clearing incoming bank statement items.

You can schedule jobs to automatically clear incoming bank statement items based on Machine Learning proposals, if the following conditions are met:

  • The matching rate of the proposal is higher than specified in the configurations
  • The proposed receivables are still open
  • All other clearing rules are fulfilled

⊕ Proposing customer accounts for incoming bank statement items

You can schedule jobs to receive a list of Machine Learning proposals for matching accounts to existing bank statement items.

  • The matching rate of the proposal is higher than specified in the configurations
  • The proposed account is a valid existing account

⊕ Posting incoming bank statement items

You can schedule jobs to automatically post incoming bank statement items to accounts based on Machine Learning proposals.

SAP CASH APPLICATION DETAILED WORKFLOW:

2017-08-05_005144.jpg

TOPIC – 3: INTERCOMPANY REPORTING 

  • Shows reconciliation amount and difference in object group for company and its partner
  • Drills down to line item details
  • Displays detailed information of document
  • Shows the reconciliation processing status
  • Navigates to reconciliation monitoring page for manual reconciliation
  • Sends mail and reminder to contact person

2017-08-05_011843.jpg

TOPIC – 4:  PROFITABILITY ANALYSIS IN THE UNIVERSAL JOURNAL

SPLITTING COST OF GOODS SOLD IN SAP S/4HANA

Enhanced functionality enables to split costs of goods sold during more processing such as third party or other processes with account assignment to internal orders or projects

COGS SPLITTING CUSTOMIZING HAS BEEN ADJUSTED

Previous COGS Split functionality which processed the splitting only for goods movements with reference to a sales order is still available

SPLITTING COST OF GOODS SOLD IN SAP S/4HANA 1610 SCREEN AND 1709 SCREEN

2017-08-05_005520.jpg

2017-08-05_005800.jpg

TOPIC – 5: MATERIAL VALUATION IN S/4HANA  – MATERIAL LEDGER

  • Up to 3 currencies
    • Tracking historic rates in material master
    • Local legal valuation & e.g. hard or trading currency2017-08-05_010324.jpg
  • Actual Costing
    • Optional revaluation of stock and COGS
    • Leverage Actual cost component split

Thank You

Jayanth Maydipalle

Source: SAP, JAM, ML, AI and Other.

SAP FINANCIAL CLOSING COCKPIT

ACCOUNTING AND FINANCIAL CLOSE

2017-07-25_012142.jpg

SAP’s accounting and financial close solutions streamlines the accounting for multiple companies, currencies, charts of accounts, and reporting standards. The solutions enable finance to efficiently close books on time, and create financial statements at the entity and corporate levels for IFRS, U.S. GAAP, or other local and global requirements.

  • SAP offers a modern accounting system for finance teams needing to streamline core financial and closing processes to meet increasingly complex business and disclosure demands.
  • It accelerates your company’s path to financial transformation by eliminating boundaries between transactional and analytical processes combined with proven excellence in accounting and closing capabilities.
  • SAP Financial Closing cockpit = Transactions codes “FCLOCOx

Picture1.png

TOP 10 BENEFITS OF SAP ACCOUNTING AND FINANCIAL CLOSE SOLUTIONS

1. Lower Cost of Finance

Accelerated processes increase productivity and reduce cost. Automate manual steps  to reduce staff workloads which lowers the cost of their work and increases productivity.

2. Accelerated Closing

Reduce cycle time via automation, integration and collaboration. Virtual soft close provides better insight at anytime from anywhere. Accelerate accounting by integrating GL, fixed assets, accounts payables, accounts receivables, inventory, revenue, and costs in real-time.

3. Real-Time Business Insight

Enables fast issue resolution and gets you closer to the business. Monitor in real-time the progress, quality, and financial results of the closing cycle to avoid bottlenecks and address business concerns

4. Responsiveness

Closes the gap between insight and action. Achieve fast, multi-dimensional reporting without replicating information to a data warehouse Instant access anywhere with drill-down from the highest to the lowest level of detail.

5. Harmonization
Harmonize internal and external reporting without redundancy. Unify financial, regulatory, managerial and operational data in a single repository across multiple systems. Eliminate redundant data aggregation for easy analysis down to the lowest   level of detail. Reduction of memory footprint through elimination of redundancy. Unite OLTP and OLAP together for simplified landscape, processes, and analysis.

6. Seamless Access

Self-service access to transactions and analytics anywhere, at any time. Past, present and future analysis at your fingertips to answer tough questions in briefings and meeting.

7. Modern User Experience

State-of-the-art user experience using the latest technology innovations. Intuitive end user training interfaces and guided processes eliminate complex teaching undertakings. Customize templates for event-driven closing tasks and collaboration.

8. Compliance You Can Count On

Efficiently meet the demands of complex compliance regulations. Generate high-quality financial statements and management reports required by international and local reporting standards.

9. Boundless Extensibility

Unlimited potential to extend system to customer’s specific business needs.

10. Foundation for Finance Transformation and Innovation

A seamless path to your finance transformation. Choose your path towards finance transformation with real-time software available in on-premise, cloud or hybrid options.

RECONCILIATION FUNCTIONALITY IN SAP ERP

2017-07-25_011820.jpg

EXECUTE ENTITY CLOSE TASKS

Picture2

FINANCIAL CLOSING COCKPIT ON FIORI

2017-07-25_011929.jpg

   Cockpit to monitor the progress of the entity close via KPIs, also on a mobile device

   Analyze the completion rate of closing tasks by multiple dimensions like region, country, company, milestone, working day, etc

   Monitor the tasks delayed or in error with easy collaboration to respective task owners

⊕   Analysis of historic closing cycles

2017-07-25_012725.jpg

Source : SAP ™

Advertisements

System Conversion to S/4HANA FINANCE

2017-03-01_215306

For detailed information on the conversion process, please follow the below mentioned SAP SNotes.

S Notes  
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.

Perform Pre-Checks

 ⇒ 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.

Thank You

Jayanth Maydipalle

ACDOCP on S/4 FINANCE

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.

2017-02-17_212804

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.

Thank You

Jayanth Maydipalle

Create Bank Accounts on Fiori / NWBC

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

2016-12-09_133039

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

2016-12-09_134425.png

Activation of Material Ledger on SAP S/4 HANA 1511 Finance

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.

sdad

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.

Actual Costing:

  • Optional revaluation of stock and COGS
  • Leverage Actual cost component

Activate Material Ledger

as

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:

ax

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

Actual Costing:

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:

2016-08-01_105428

2016-08-01_105341

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:

Key Points:

  • 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.