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Week 2: Conversion to SAP S/4HANA Finance
Unit 2: Essential Changes in SAP S/4HANA Finance
2
PUBLIC
© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Essential Changes in SAP S/4HANA Finance
Introduction
“You should know the essential changes
in Finance before you start system
conversion!”
3
PUBLIC
© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Essential Changes in SAP S/4HANA Finance
The new Finance architecture in SAP S/4HANA: universal journal – Impacts for a conversion
Universal Journal
Ledger Company
Account/
Cost
Element
Balancing
Profit
Center
Amount
1
Amount
2
Amount
3
Fixed
Asset
Coding
Block
Market
Segment
Material
Customer
Fields …
General Ledger
Ledger Company Account
Profit
Center
Amount
1
Amount
2
Amount
3
…
Profitability
Operating
Concern
Market
Segment
…
Management Accounting
Controlling
Area
Cost
Element
Amount
1
Amount
2
Coding
Block
…
Asset Accounting
Company
Fixed
Asset
…
Material Ledger
Company Material …
G/L Customizing (Ledgers)
Currency configuration
migrated without changes
Subsequent introduction:
- Additional ledgers
- Document splitting
New Asset Accounting
Material Ledger for
Material Valuation
Account-based CO-PA
in Universal Journal
FI-documents for CO
Secondary cost elements
are G/L accounts
One line item table with full details for all applications – for instant insight & easy extensibility
Data stored only once: no more reconciliation needed – by design
APPEND:
Note 2160045
4
PUBLIC
© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Essential Changes in SAP S/4HANA Finance
Multi-currency up to 10 parallel currencies per ledger in universal journal
SAP S/4HANA Finance
▪ Local currency: ACDOCA field name = HSL, currency type 10
▪ Global currency: ACDOCA field name = KSL, currency type of controlling area
▪ Freely defined currencies 1 – 8
– You can configure any currency type.
– There is no dependency on the currency types of the leading ledger.
▪ SAP Note 2344012
FI (BSEG) local Crcy 2nd local Crcy 3rd local Crcy
CO (COEP) local (Obj) Crcy CO Area Crcy
ML local Crcy 2nd ML Crcy 3rd ML Crcy
SAP ERP
▪ 3 local currencies in FI (including New G/L)
▪ 2 currencies in CO
▪ 3 currencies in material ledger
Universal Journal
(ACDOCA)
Local
Crcy
Global
Crcy
1st free
Crcy
2nd free
Crcy
3rd free
Crcy
4th free
Crcy
5th free
Crcy
6th free
Crcy
7th free
Crcy
8th free
Crcy
ledger-dependent
5
PUBLIC
© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Essential Changes in SAP S/4HANA Finance
Credit management, cash management, and trade finance
SAP Credit Management (FSCM)
▪ Credit Management FI-AR not
available
▪ Migration to SAP Credit Management
FIN-FSCM-CR during conversion
▪ Basic/advanced version available
▪ SAP Note 2270544
Trade Finance
▪ SD Foreign Trade not available
▪ Letter of credit available in Trade
Finance in Treasury and Risk
Management (TRM) and Global
Trade Finance (GTS)
▪ Integrated with SAP S/4HANA Sales
▪ Migration during conversion
▪ SAP Note 2520879
SAP Cash Management
▪ Classic Cash Management not
available
▪ Migration of house bank accounts
during conversion
▪ Basic/advanced version available
▪ SAP Note 2270400
6
PUBLIC
© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Essential Changes in SAP S/4HANA Finance
Real estate, revenue accounting, and business partners
Real Estate Flexible (RE-FX)
▪ Classic Real Estate not available
▪ Migration from Classic Real Estate
to Real Estate Flexible before
conversion
▪ Not a simple technical conversion
▪ SAP Note 2270550
Business Partners
▪ Business partner leading object
▪ Customer/vendor integration
▪ Migration before conversion
▪ SAP Note 2695353
Revenue Accounting and Reporting
▪ Revenue recognition in SD not
available
▪ Accounting standard IFRS15
▪ SAP Revenue Accounting and
Reporting (RAR) add-on in ERP
and delivered with SAP S/4HANA
▪ Migration before conversion
▪ SAP Note 2225170
7
PUBLIC
© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Essential Changes in SAP S/4HANA Finance
Asset Accounting, New G/L, and accrual engine
New Asset Accounting
▪ Available in SAP ERP 6.0 EHP 7
▪ Accounts or ledger approach
▪ Simplified chart of deprecation
▪ Activation and migration during
conversion
▪ SAP Note 2270387/ 2270388
Local GAAP
US GAAP
xxx xxx xxx
IFRS
SAP S/4HANA Accrual Engine
▪ Available from SAP S/4HANA 1809
▪ Supports all currencies of universal
journal with simplified data model
▪ Purchase orders can also be
accrued
▪ SAP Note 2582884
New General Ledger
▪ Conversion from classic G/L is
technically converted to New G/L as
part of conversion to SAP S/4HANA
▪ SAP Note 2270339
8
PUBLIC
© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Essential Changes in SAP S/4HANA Finance
Machine learning, accelerated close, and predictive accounting
Predictive Accounting
▪ Available from SAP S/4HANA 1809
▪ Process starts from sales order
creation
▪ Predictive Accounting uses extension
ledger
▪ Predictive Accounting Help
Machine Learning Applications
▪ Cash application
▪ Goods and invoice receipt reconciliation
▪ Tax compliance smart automation
▪ Cloud platform to enable necessary
computational power
Accelerated Close
▪ Continuous intra-month processes
▪ Soft close – better insight at any time
▪ Hard close – accelerated month-end
closing tasks
▪ SAP Note Closing Cockpit 2332547
9
PUBLIC
© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Essential Changes in SAP S/4HANA Finance
Consolidation – What has changed
Customers requiring a standalone on-
premise deployment SAP BPC**
Consolidation application embedded
within SAP S/4HANA (on-premise and
public/private cloud)
SAP S/4HANA (Cloud) for Group Reporting*
* SAP S/4HANA Cloud for group reporting available since May 2017. SAP S/4HANA for group reporting (on-premise) planned availability Q3
2018. SAP S/4HANA Cloud for group reporting can also be used independently from operational accounting or other ERP functions in SAP
S/4HANA.
** SAP BPC for SAP S/4HANA will continue be supported in accordance with support for the underlying SAP S/4HANA release, but will not
be further enhanced. SAP BPC, version for SAP BW/4HANA is recommended for standalone on-premise deployments.
Thank you.
Contact information:
open@sap.com
© 2019 SAP SE or an SAP affiliate company. All rights reserved.
No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of
SAP SE or an SAP affiliate company.
The information contained herein may be changed without prior notice. Some software products marketed by SAP SE and its
distributors contain proprietary software components of other software vendors. National product specifications may vary.
These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or
warranty of any kind, and SAP or its affiliated companies shall not be liable for errors or omissions with respect to the materials.
The only warranties for SAP or SAP affiliate company products and services are those that are set forth in the express warranty
statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional
warranty.
In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or
any related presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation,
and SAP SE’s or its affiliated companies’ strategy and possible future developments, products, and/or platforms, directions, and
functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any time for any reason
without notice. The information in this document is not a commitment, promise, or legal obligation to deliver any material, code, or
functionality. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ
materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, and they
should not be relied upon in making purchasing decisions.
SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered
trademarks of SAP SE (or an SAP affiliate company) in Germany and other countries. All other product and service names
mentioned are the trademarks of their respective companies.
See www.sap.com/copyright for additional trademark information and notices.
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Open sap s4h15_week_2_unit_2_finchange_presentation

  • 1. Week 2: Conversion to SAP S/4HANA Finance Unit 2: Essential Changes in SAP S/4HANA Finance
  • 2. 2 PUBLIC © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ Essential Changes in SAP S/4HANA Finance Introduction “You should know the essential changes in Finance before you start system conversion!”
  • 3. 3 PUBLIC © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ Essential Changes in SAP S/4HANA Finance The new Finance architecture in SAP S/4HANA: universal journal – Impacts for a conversion Universal Journal Ledger Company Account/ Cost Element Balancing Profit Center Amount 1 Amount 2 Amount 3 Fixed Asset Coding Block Market Segment Material Customer Fields … General Ledger Ledger Company Account Profit Center Amount 1 Amount 2 Amount 3 … Profitability Operating Concern Market Segment … Management Accounting Controlling Area Cost Element Amount 1 Amount 2 Coding Block … Asset Accounting Company Fixed Asset … Material Ledger Company Material … G/L Customizing (Ledgers) Currency configuration migrated without changes Subsequent introduction: - Additional ledgers - Document splitting New Asset Accounting Material Ledger for Material Valuation Account-based CO-PA in Universal Journal FI-documents for CO Secondary cost elements are G/L accounts One line item table with full details for all applications – for instant insight & easy extensibility Data stored only once: no more reconciliation needed – by design APPEND: Note 2160045
  • 4. 4 PUBLIC © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ Essential Changes in SAP S/4HANA Finance Multi-currency up to 10 parallel currencies per ledger in universal journal SAP S/4HANA Finance ▪ Local currency: ACDOCA field name = HSL, currency type 10 ▪ Global currency: ACDOCA field name = KSL, currency type of controlling area ▪ Freely defined currencies 1 – 8 – You can configure any currency type. – There is no dependency on the currency types of the leading ledger. ▪ SAP Note 2344012 FI (BSEG) local Crcy 2nd local Crcy 3rd local Crcy CO (COEP) local (Obj) Crcy CO Area Crcy ML local Crcy 2nd ML Crcy 3rd ML Crcy SAP ERP ▪ 3 local currencies in FI (including New G/L) ▪ 2 currencies in CO ▪ 3 currencies in material ledger Universal Journal (ACDOCA) Local Crcy Global Crcy 1st free Crcy 2nd free Crcy 3rd free Crcy 4th free Crcy 5th free Crcy 6th free Crcy 7th free Crcy 8th free Crcy ledger-dependent
  • 5. 5 PUBLIC © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ Essential Changes in SAP S/4HANA Finance Credit management, cash management, and trade finance SAP Credit Management (FSCM) ▪ Credit Management FI-AR not available ▪ Migration to SAP Credit Management FIN-FSCM-CR during conversion ▪ Basic/advanced version available ▪ SAP Note 2270544 Trade Finance ▪ SD Foreign Trade not available ▪ Letter of credit available in Trade Finance in Treasury and Risk Management (TRM) and Global Trade Finance (GTS) ▪ Integrated with SAP S/4HANA Sales ▪ Migration during conversion ▪ SAP Note 2520879 SAP Cash Management ▪ Classic Cash Management not available ▪ Migration of house bank accounts during conversion ▪ Basic/advanced version available ▪ SAP Note 2270400
  • 6. 6 PUBLIC © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ Essential Changes in SAP S/4HANA Finance Real estate, revenue accounting, and business partners Real Estate Flexible (RE-FX) ▪ Classic Real Estate not available ▪ Migration from Classic Real Estate to Real Estate Flexible before conversion ▪ Not a simple technical conversion ▪ SAP Note 2270550 Business Partners ▪ Business partner leading object ▪ Customer/vendor integration ▪ Migration before conversion ▪ SAP Note 2695353 Revenue Accounting and Reporting ▪ Revenue recognition in SD not available ▪ Accounting standard IFRS15 ▪ SAP Revenue Accounting and Reporting (RAR) add-on in ERP and delivered with SAP S/4HANA ▪ Migration before conversion ▪ SAP Note 2225170
  • 7. 7 PUBLIC © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ Essential Changes in SAP S/4HANA Finance Asset Accounting, New G/L, and accrual engine New Asset Accounting ▪ Available in SAP ERP 6.0 EHP 7 ▪ Accounts or ledger approach ▪ Simplified chart of deprecation ▪ Activation and migration during conversion ▪ SAP Note 2270387/ 2270388 Local GAAP US GAAP xxx xxx xxx IFRS SAP S/4HANA Accrual Engine ▪ Available from SAP S/4HANA 1809 ▪ Supports all currencies of universal journal with simplified data model ▪ Purchase orders can also be accrued ▪ SAP Note 2582884 New General Ledger ▪ Conversion from classic G/L is technically converted to New G/L as part of conversion to SAP S/4HANA ▪ SAP Note 2270339
  • 8. 8 PUBLIC © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ Essential Changes in SAP S/4HANA Finance Machine learning, accelerated close, and predictive accounting Predictive Accounting ▪ Available from SAP S/4HANA 1809 ▪ Process starts from sales order creation ▪ Predictive Accounting uses extension ledger ▪ Predictive Accounting Help Machine Learning Applications ▪ Cash application ▪ Goods and invoice receipt reconciliation ▪ Tax compliance smart automation ▪ Cloud platform to enable necessary computational power Accelerated Close ▪ Continuous intra-month processes ▪ Soft close – better insight at any time ▪ Hard close – accelerated month-end closing tasks ▪ SAP Note Closing Cockpit 2332547
  • 9. 9 PUBLIC © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ Essential Changes in SAP S/4HANA Finance Consolidation – What has changed Customers requiring a standalone on- premise deployment SAP BPC** Consolidation application embedded within SAP S/4HANA (on-premise and public/private cloud) SAP S/4HANA (Cloud) for Group Reporting* * SAP S/4HANA Cloud for group reporting available since May 2017. SAP S/4HANA for group reporting (on-premise) planned availability Q3 2018. SAP S/4HANA Cloud for group reporting can also be used independently from operational accounting or other ERP functions in SAP S/4HANA. ** SAP BPC for SAP S/4HANA will continue be supported in accordance with support for the underlying SAP S/4HANA release, but will not be further enhanced. SAP BPC, version for SAP BW/4HANA is recommended for standalone on-premise deployments.
  • 11. © 2019 SAP SE or an SAP affiliate company. All rights reserved. No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP SE or an SAP affiliate company. The information contained herein may be changed without prior notice. Some software products marketed by SAP SE and its distributors contain proprietary software components of other software vendors. National product specifications may vary. These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or warranty of any kind, and SAP or its affiliated companies shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP or SAP affiliate company products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty. In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation, and SAP SE’s or its affiliated companies’ strategy and possible future developments, products, and/or platforms, directions, and functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any time for any reason without notice. The information in this document is not a commitment, promise, or legal obligation to deliver any material, code, or functionality. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, and they should not be relied upon in making purchasing decisions. SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE (or an SAP affiliate company) in Germany and other countries. All other product and service names mentioned are the trademarks of their respective companies. See www.sap.com/copyright for additional trademark information and notices. www.sap.com/contactsap Follow all of SAP