1. s fin overview

Global Business Services
© 2015 IBM Corporation1 IBM Confidential
SAP SIMPLE FINANCE
OVERVIEW
Shivesh Sharma
Basvi Ayuluri
Kevin May August 14, 2015

Welcome

Training purpose:
To gain SAP Simple Finance overview, lessons learned, and key points for new SAP
S/4 HANA Simple Finance implementations.
Target Attendants :
•FI-CO Consultants
•Team leads
•Project managers
•FI-CO Business users
The Curriculum:
This training covers the following 5 courses.
1. Simple Finance overview – This Course
2. Finance (GL, AP, AR)
3. Acquire to Retire
4. Treasury and Banking
5. Controlling
Training Details:
In addition following 4 Exercises
are also included:
1. Exercises: Finance
2. Exercises: Acquire to Retire
3. Exercises: Treasury and Banking
4. Exercises: Controlling

Unit Description
1 Welcome
2 Simple Finance Architecture and Roadmap
3 Functionality Impact
a. Functionality Change
b. Summary of Changes in Transactions (T-codes)
c. Summary of Table Changes
d. Configuration Changes
4 WRICEF Impact
5 User Interface Apps (FIORI)
6 Closing process impact
7 Bolt-Ons Impact
8 Key Limitations/Restrictions
9 Security/Authorizations
10 HANA views/reporting available in Simple Finance 2.
11 Lessons Learnt and Pain Points
12 Appendix A – HANA Live Views for Finance
Agenda

Simple Finance
Architecture and Roadmap

Simple Finance: Benefits
Simple Finance delivers on a variety of customer demands:
• Continuous Innovation
• New GL is 9 years old.
• Non-disruptive upgrade
• Ease of use
• Single Source of Truth with Universal Journal
• Eliminate FI/CO reconciliation
• Accessibility
• Business Cockpits
• Mobile/Tablet access with intuitive user experience
• Runs faster
• Real time processes with HANA in-Memory Database
• Removed totals and indices tables
• Latest technology trends
• Analytics with HANA views and Lumira
• Mobility with Fiori

Simple Finance: Database Footprint Reduction
(Both on Premise and Cloud editions)

Architecture: Classic ERP Finance vs Simple Finance

Classic Finance Simple Finance
Architecture: Classic ERP Finance vs Simple Finance

Architecture: Universal Journal

 Single source of truth
 Redundant tables removed
 Non-Disruptive
 Multiple views – single source
Architecture: Universal Journal– Key points

 The new journal entry consists of a header
(table BKPF) and the respective items
(table ACDOCA)
– There are rare cases where entries in
ACDOCA are written without a document
header (e.g. carry forward, corrections in
migration).
– The corresponding line items have ‘artificial
document numbers’ beginning with letters
 Table ACDOCA contains all fields needed
for G/L, CO, AA, ML, PA
 Multi-GAAP capability through “RLDNR”
dimension
 6 digit field for line item numbering
 23 digits for currency fields
Architecture: Universal Journal

Architecture: Data Entry in Universal Journal
 Indexes and totals versus Document level financials

 Richer data faster with no settlement Run Needed
 Immediately write market segment information to each P&L line
 Take all known and available information at the time and post to a “CO-object” and
populate market segment attributes in 1 step
Architecture: Universal Journal Results

 BSEG was designed to handle efficiently
open item management and payment
– Open items must not be splitted and must
not be doubled or tripled according to the
number of GAAPS
 Definition of BSEG did not foresee…
– Storing different GAAPS in parallel (key like
ledger is missing)
– Storing “splitted” document lines
(receivables/payables)
Architecture: BSEG Table still exists

Architecture: Document Summarization
 BSEG summarization is still in
place and can be used as
usual
 ACDOCA stores the full detail
that is needed for all
components that base on
ACDOCA (G/L, AA, ML, CO,
PA)
 Summarizing BSEG
“aggressively” will bring relief
with respect to the 999 line
item limitation (BSEG-BELNR
has only 3 digits). This can be
done since ACDOCA stores
the full detail and has a 6 digit
field for line item numbering

Architecture: Quiz
Q: What two table
make up the new
journal entry
A) BKPF & DCDOCA
B) BKPF & ACDOCA
C) BFPF & DCDOCA
D) PF & DOCA

 Current version: S/4 HANA (including SimpleFinance2.0)
 Future version: S/4 HANA EHP8 (including Simple Finance, Simple
Logistics and Simple ERP)
Roadmap: The path to S/4 HANA

Delivery Roadmap 2015 Public Cloud / Managed Cloud / on-Premise
Roadmap: S/4 HANA Innovations
TechEd
tbd
Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015
FKOMs
Jan 7-22
CeBIT
Mar 2-5
SAPPHIRE
May 5-7
Launch with early
customers
s-innovations Public Cloud First live customers show
cases
Launch further solutions /
services
Launch further
industries
s-innovations
Private Managed Cloud
Launch with early customers
Release “sFin 2.0” &
Announcement “EHP8”
s-innovations
on-Premise (EHP 8)
Launch s-innovations on
Premise
Launch further solutions /
services
Simple Professional
Services
EHP8
incl. Simple Finance &
Simple Logistics
Simple Finance
2.0
 sFin 1.0 
Simple Logistics
Current Simple Finance Versions
Product Versions Support Stack Number Released
Simple Finance 1503
(previously also called as Simple Finance 2.0) Initial Release March 2015
SPS 1505 May 2015
SPS 1508 August 2015

Roadmap: Quiz
Q: When was SAP S/4
HANA released?
A) 2011
B) 2012
C) 2014
D) 2015

Process and Functionality
Impact

Functionality Impact: Key Features
• Single Source of Truth with Universal Journal
• New Cash and Liquidity Management
• New Asset Accounting
• Integrated Business Planning
• Central Finance

Functionality Impact: Simple Finance 1.0 Logical Document
 Customer Benefits
– Harmonized internal and external
reporting
– Significantly reduced reconciliation effort
– Significantly reduced memory
consumption
– Higher flexibility in reporting and
analysis
– Central journal for heterogeneous
system landscapes

Functionality Impact: Simple Finance 2.0 Universal Journal

Functionality Impact: Simple Finance 1.0 Link to CO-PA Table

Functionality Impact: CO-PA in The Universal Journal

Functionality Impact: SAP Cash Management

Addressed Business Case
• Bank Account Management
• Renewed Cash Positions
• Real-time Cash Flow Analysis and Liquidity
Forecasting
• Group-wise Liquidity Planning
• Bank Risk Analysis
• “Cash Manager” Enterprise Dashboard 2.0
Key Benefits
• High performance for real-time cash flow analysis and liquidity forecast. No more batch job in Cash
Management
• Cash Manager owned and controlled Bank Accounts
• Enable Predictive and Planning tasks for cash managers to support daily decision making and actions.
• Much more attractive and desirable user experience including Cash Manager mobile app
Capabilities
• Separated Bank Accounts with G/L Accounts. Bank Account creation and modification approval process
• Signatory and authorization management of bank accounts
• Root-cause analysis of cash-in and out per bank account and liquidity item
• Embedded liquidity planning and built-in variance analysis
• Multi-dimensional analysis on cash flow and liquidity forecast, with breakdown into e.g. Project, Contract,
Material, or Profit Center/Segment.

 Approval process for Bank Account Opening, adjustment, and Closing
 Separate Bank Account Master Data from G/L accounts
 Signatory integrated with BCM Payment Approval
 Plenty of attributes reflecting controls on both bank side and internal side
 Bank Account yearly review process
 Navigation to Cash Position and Bank Statement Monitor Reports

 Central Bank Account Management including overdraft limit analysis, bank risk analysis,
signatory management and workflow support
 Analyze global bank balances and cash positions based on data from SAP and
non-SAP systems
 Integrated liquidity forecasting including cash flow analysis using multi dimensional real-time
analytics
 SAP Fiori and Smart Business for Cash Managers, a cockpit to monitor critical
KPI’s, also on a mobile device
Functionality Impact: SAP Cash Management – Key points

Functionality Impact: Fixed Asset Accounting in Universal Journal
 Audibility and Simplicity benefits
– Independent/complete
depreciation areas (no delta
areas used as before)
– Simplified chart of depreciation,
only one depreciation area per
valuation necessary
– New transactions for
depreciation area specific
documents
– New document display: explain
the detailed impact of any
transaction to the books
– Flexible account determination
 Fixed Assets in Universal Journal
– Reconciliation between G/L and AA is ensured
by design
– After migration, reporting for previous fiscal
years is still possible due to compatibility views
– Transparent assignment of depreciation area
to accounting principle
– Depreciation posted with all details:
accumulated depreciation costs and costs by
asset

Functionality Impact: Asset Accounting – Key points
• Asset Accounting is based on the universal journal entry. There is no longer any
redundant data store.
• Reconciliation postings are no longer necessary with closing operations as General
Ledger
• Accounting and Asset Accounting are reconciled anyway due to the universal journal
entry.
• Depreciation postings occur with all details:
• Depreciation is posted for the individual asset.
• Reporting at the level of CO account assignments is possible for individual assets.
• Fast Close and Soft Close are supported.
• Planned values are available in real time.
• The depreciation posting run is faster due to new data structures and parallel
processing.
• The hitherto existing periodic posting run for APC values is redundant.

IBP for finance includes templates for:
• Cost Center Planning
• Internal Order Planning
• Project Planning
• Profit Center Planning
• Cost of Sales Planning
• P&L Planning
• Market Segment Planning
• Liquidity Planning
Functionality Impact: Integrated Business Planning
• Enables the financial planning capabilities provided by SAP BPC to be seamlessly
integrated in SAP ERP replacing the current planning capabilities in SAP ERP.
• Data replication between BPC and ERP will no longer be required.
• Plans developed in SAP BPC will be accessible in SAP ERP for variance analysis
and SAP BPC will be able to access real time master data and actuals maintained
in SAP ERP.
• The combined capabilities of Integrated Business Planning for finance will provide
new end-to-end simulation capabilities.

Functionality Impact: Integrated Business Planning in Real-time
 Leverage the financials document
database and HANA views for real time
access to actual transactional data and
ERP master data
 The Integrated Business Planning for
finance model is able to read actuals “real
time” as transactions update the FI & CO
document tables within ERP
 Actual data is aggregated on the fly
leveraging SAP HANA views
 Very quickly analyze financial data and
model results

 Used to report on financial figures sourced from different systems
Functionality Impact: Central Finance

ANEA Fixed Assets: Line items for proportional values
ANEK Fixed Assets: Document header
ANEP Fixed Assets: Line items
ANLC Fixed Assets: Cumulative values
BSAD Index for Customers (Cleared Items)
BSAK Index for Vendors (Cleared Items)
BSAS Index for G/L Accounts (Cleared Items)
BSID Index for Customers
BSIK Index for Vendors
BSIM Index, Documents for Material
BSIM Secondary index for documents on material
BSIS Index for G/L Accounts
CKMI1 Index for accounting documents
COEP Cost Line Items
COSP Cost Totals for External Postings
COSS Cost Totals for Internal Postings
FAGLBSAS Index for G/L Accounts – New G/L (Cleared Items)
FAGLBSIS Index for G/L Accounts – New G/L
FAGLFLEXA New General Ledger: Line items
FAGLFLEXT New General Ledger: Totals
GLT0 General Ledger: Totals
GLT3 Summary Data Preparations for Consolidation
KNC1 Customer master (transaction figures)
KNC3 Customer master (special G/L transaction figures)
LFC1 Vendor master (transaction figures)
LFC3 Vendor master (special G/L transaction figures)
MLCD Material ledger
MLCR Material ledger
MLCRF Material ledger
MLHD Material ledger: Document header
MLIT Material ledger: Line items
MLPP Material ledger
MLPPF Material ledger
 Have now become compatibility views
Summary of Table Changes

WRICEF Impact

 With secondary cost elements now being available in accounting details table
ACDOCA, financial statements can include them and reduce development of
custom reports.
 Number of custom reports can be reduced by using predefined HANA views
delivered with Simple Finance.
 With the new Cash Management, signatory and approval workflow will become
SAP standard features.
WRICEF Impact

NetWeaver Business Client
NWBC

 NWBC is a web-based client with
different screen layout.
 Some configuration and transaction
steps are moved to NetWeaver
Business Client (NWBC).
 Need NWBC authorization in
addition to do configuration and
transactions.
 To start NWBC client, use T-code
“NWBC” from SAP GUI Client.
NetWeaver Business Client - NWBC

 Net Weaver Business Client (NWBC) will be launched by clicking the SAP icon
next to the corresponding role.

 Sample of the options available for an individual with ‘cash manager’ role

 Follow the menu path for configuration

 Follow the menu path for configuration.
 Here configuration can be reviewed or added.

 Here is an example of creating bank accounting screen.

User Interface Apps
(FIORI)

 Focus on the user experience in order to:
SAP FIORI

 Allows access of business critical applications on any device
SAP FIORI

SAP FIORI: Application Types

SAP FIORI: Transactional Apps
 These apps let you perform
transactional tasks, such as creating a
leave request for an employee.
 They represent simplified views and
interaction with existing business
processes and solutions.

SAP FIORI: Analytical Apps
 Role-based insight into real-time
operations of your business by
collecting and displaying key figures
directly in your browser.
 Provide real-time information on large
volume data in a simplified front end for
enterprise control.
– Analytical apps combine the data and
analytical power of SAP HANA with the
integration and interface components of
SAP Business Suite.
 Closely monitor your most important
key performance indicators (KPIs) in
real time and react immediately on
changes in market conditions or
operations.

 Displays contextual information and
key facts about central objects used
in your business operations.
 From a fact sheet tile, you can drill
down into its details.
 You can navigate from one fact
sheet to its related fact sheets.
– For example, you can navigate from a
document to the related business
partner or to the master data.
 From fact sheets, you can start
transactions by navigating to
transactional apps, or by accessing
the back-end system directly.
SAP FIORI: Factsheet (Master Data) Apps

 Role-based
 Tiles in Fiori Launchpad environment can be personalized to meet individual end
user wants or needs:
SAP FIORI: Personalization

SAP FIORI: Quiz
Q: Which of the
following are types
of FIORI apps?
A) Transactional
B) Master Data
C) Analytical
D) All of the above

Closing Process Impact

 FI and CO will be closed simultaneously
 New Financial Closing Cockpit is available
 New TCodes are FCLOCOC and FCLOCO
Closing Process Impact

Bolt-on Impact

 None of the Boltons are certified by SAP to work with Simple Finance. SAP
is reacting slowly on this process.
 This creates lot of uncertainty and significant fear among clients about
using the Boltons.
 Following boltons are being tested so far at this client and given preliminary
certification. No additional work is done to integrate them with Simple
Finance. Verified with testing only.
– Open Text Vendor Invoice Management
– OneSource Sabrix Tax engine
– Hanse Orga Autobank
Bolt-on Impact

Key Limitations
and Restrictions

 Simple Finance is recommending to change to account based COPA. It will still
support costing based COPA also but strongly suggests to change to Account
based COPA.
 GL Planning, Cost Center Planning, Cost Element planning and other dependent
planning tasks are moved to Net Weaver Business Client (NWBC) with integrated
business planning. Traditional planning in ECC is not supported.
 Bank account management configuration is moved to NWBC.
 Cash/Liquidity planning is also moved to NWBC.
 Activating Coding block requires adding many SAP notes including the manual
instructions.
Limitations/Restrictions:

Security Authorizations

 Over 20 new roles
have been added in
Simple Finance
 For each of these
new roles, multiple
security authorization
objects have been
added

 NetWeaver Business Client (NWBC) will be used as a front-end as opposed to
the traditional SAP Easy Access screen
 All required NWBC authorizations much be acquired prior to running
configuration. In the screenshot above the ‘configuration’ tab is missing
because the user does not have the required access

HANA views
Reporting in sFIN2

 35 new predefined HANA Live views are added for Simple Finance
 These views can help in generating finance reports from multiple reporting tools,
like BOBJ, Lumira, FIORI, etc.
SAP HANA Live

 Core of data
visualization
strategy by
preparing graphical
representation of
data
 Leverages existing
data real time
 Build engaging
infographics and
stories
 Share content with
web and mobile
users
SAP Lumira

SAP FIORI: Quiz
Q: Does BSEG table
still exist?
Yes
No

 SAP Simple Finance 2.0
 Documentation: http://help.sap.com/sfin200
 S/4 HANA: http://discover.sap.com/S4HANA
 SAP FIORI
 SAP On Demand Demo: https://demo-fioritrial.dispatcher.hana.ondemand.com/
 Lumira
 Lumira : http://saplumira.com/
Useful links

Questions

1. s fin overview

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