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S/4 HANA Conversion Functional
Value Proposition
By
Vignesh Bhatt
What is SAP HANA ?
A Revolutionary Business Platform - Future ready
SAP HANA in memory platform
• SAP HANA is the engine of
the real time enterprise,
enabling clients to analyze
large quantities of data from
virtually any source in real
time.
• This example showcases
actual customer performance
of a core reporting process.
Experience real time enterprise in action
• SAP HANA analyzes current point of sale
data in real time, empowering this
organization to review segmentation,
merchandizing, inventory management
and forecasting information at speed of
thought.
Hours
before
S/4
HANA
Runs 3600x faster
In seconds with
SAP HANA
460
Billion records
50
Terabytes of
data
70
net alerts
0.04 seconds
Analysis response time
On any device, anywhere, anytime
Speed
Innovation
Agility
Simplicity
Any data
Cloud
Insight
Applications
Value
SAP HANA the great simplifier of enterprise software
SAP
HANA
SAP Simple
Finance
powered
by SAP
HANA
SAP Business
warehouse
powered by
SAP HANA
SAP Business
Suite
powered by
SAP HANA
SAP S/4
HANA
In memory
platform
• Real time analysis
•Real time reporting
•Real time business
•OLAP and OLTP together
•SAP HANA Enterprises
•Cloud for SAP Business
Suite on SAP HANA
•Instant financial insight
•No aggregates
•Single source of truth
•Simplified data model
•New user experience
•Advanced processing
•Choice of deployment
A logical evolution each being necessary to provide significant new business
capability and escape the constraints of the past.
R/2
R/3
R/4
S4
HANA
1979
Mainframe
1992
Client S server
2004
Web SOA
2015
IoT APIs Mobile
Phase 1
Start
Release
Phase 2
Prerequ
isites
Phase 3
Editions
Phase 4
Business
Case
Phase 5
Project
Type
SAP S/4 HANA Migration path
SAP ERP < 6
SAP NW x.x.
Non Unicode DB
SAP ERP < 6
SAP NW x.x.
Any Unicode DB
Legacy
Any DB
SAP ERP 6 EHP 0
+ SAP NW 7.4
Unicode Any DB
SAP ERP 6 EHP 7 +
SAP NW 7.4 +
SAP HANA
Simple Finance
SAP ERP 6 EHP 7
+SAP NW 7.5 +
SAP HANA
SAP
Business
Suite
SAP
Business
Suite
SAP
Business
Suite
SAP
Business
Suite
SAP
Business
Suite
Unicode Conversion
One Step
Migration
SAP S/4 HANA on premise
SAP S/4
HANA Cloud
B P G
Brownfield Phased Greenfield
Data Migration Custom code
Remedian
Architecture
Complexity
Business model
changes
Conversion
effort
Some Facts about SAP S/4 HANA
1. Built on SAP HANA
2. ERP, CRM, SRM, SCM PLM in one system.
3. No locking, parallelism.
4. Actual data (25%), and historical (75%).
5. Unlimited workload capacity.
6. Predict, recommend, simulate.
7. SAP HANA Cloud Platform extensions.
8. SAP HANA multi-tenancy.
9. All data : social, text, geo, graph processing.
10. New SAP Fiori UX for any device
(mobile, desktop, tablet).
Three deployment options : on-premise, public cloud,
managed cloud.
10x
Smaller data footprint
1800x
Faster reporting and analytics
4x
Less process steps
7x
Higher throughput
200x
Faster response in end-
end process
Procurement
`
Authority Concept for Supplier Invoice
The previous concept
was based on
checking header data
against the item
authorization object
for all items. The
system checked for all
items if a user was
allowed to complete
certain activities in the
plants.
In S/4 HANA
With the new concept, the behaviour of the
system is more comprehensive. The new
concept introduces a header authorization
object that enables the system to perform
the following authorization checks:
• Check header data against the header
authorization object (M_RECH_BUK). This
authorization object checks the common
activities a user performs for the header
company code.
• Check item data against the item
authorization object (M_RECH_WRK). This
authorization object checks the common
activities a user performs for the plant for
the respective item.
Business Value
The new authority
concept for supplier
invoice enables a
simplified handling
especially for invoice
items w/o PO
reference.
`
`
In ECC
Foreign Trade within SAP S/4 HANA Procurement
Currently there are
two services for
international trade
transactions :
•Foreign trade (FT)
•SAP Global Trade
Services (GTS).
In S/4 HANA
• Foreign Trade :
• Global Trade Services is successor for
business requirement.
•Additional functions for import and export
management are available with SAP GTS.
Business Value
• Strategic Decision
to remove FT and
inculcate GTS.
•Selected
international trade
functionalities to be
provided with foreign
trade in S/4 HANA.
`
`
In ECC
RFQ Simplified Transaction
• RFQ with mandatory
supplier field.
•Only possible to
enter one supplier
quote per RFQ.
•Not possible to
integrate with
different Sourcing
Integration Scenarios
like Ariba Sourcing,
Ariba Spot Quote etc.
In S/4 HANA
• Send RFQ via FIORI app to external
sourcing platforms without supplier
included .
• Multiple supplier quotes can be received.
•Existing transaction codes like ME41,
ME42, ME43, ME49, ME4B, ME4C etc. is
planned to be replaced with corresponding
FIORI apps.
Business Value
• Flexibility
• Excess use of
Transaction Codes
`
`
In ECC
Vendor evaluation based on LIS
• Vendor evaluation
reporting based on
tables and structures.
• Real time supplier
evaluation not
available.
In S/4 HANA
• SAP HANA reporting capabilities based on
CDS views.
Business Value
• Real time supplier
evaluation
capabilities without
building and referring
to table and structure
aggregates.
• Provides much
more analytical
visualization options
as LIS.
`
`
In ECC
Output management adoption in Purchase Order
• Configuration
through NACE.
• Cannot use Adobe
Forms
• Smartforms and SAP
Script is largely used.
In S/4 HANA
• Includes cloud qualities such as
extensibility enablement, multi tenancy
enablement and modification free
configuration.
• Output management based on NAST.
• Business Rule Framework (BRF+) is used.
• Target architecture is based on Adobe
Document Server and Adobe Forms only.
• Form Determination rules BRF+ is used.
• Supports Channels, PRINT, EMAIL, XML
(for Ariba Network Integration).
Business Value
• Unified solution can
be used for all
Output Management
activities.
• Due to BRF+ many
integration issues
resolved.
•Additional
capabilities of BRF+
apart from Output
Management.
`
`
In ECC
Logistics `
New advanced ATP in SAP S/4 HANA – Table VBBS
• Database table VBBS
contained pre-
aggregated sales
requirements.
•The requested
(OMENG) and
confirmed (VMENG)
quantities aggregated
on a daily basis.
In S/4 HANA
• Do not need pre-aggregation anymore.
Table is obsolete.
• Instead of VBBS, we use VBBE where each
ATP-relevant requirement is explicitly
stored.
•Old ERP-ATP check code is also redirected
to use VBBE.
•New entries automatically “choose” to use
VBBE instead VBBS.
Business Value
• Aggregate data in
real time.
• Aggregate-table for
sales order
requirement VBBS
not necessary
anymore.
`
`
In ECC
Blocked customer or supplier in IM
• End of purpose
check for customer
and supplier master
data.
In S/4 HANA
• Material documents related to customer
or supplier to be blocked must be archived.
• Special stocks related to customer or
supplier to be archived or deleted.
• Physical inventory documents related to
customer or supplier to be blocked must be
archived.
• Open reservations related to customer or
supplier to be blocked must be deleted.
•The customer or supplier to be blocked
must be removed from plant data.
Business Value
• Redundancy of data
reduced.
• SAP offer SI check
to identify blocked
customer or supplier.
• Faster approach.
• Flexibility
`
`
In ECC
Data model in Inventory Management
• MKPF table used for
document header
• MSEG table used for
document item data.
• Aggregated actual
stock quantity data
stored in several
tables.
• Material master data
stored in tables like
MARC, MARA,MARD
and MCHB.
In S/4 HANA
• De-normalized table used called MATDOC
which contains former header and item
data of material document as well as lot of
other attributes too.
• Material document data will be stored in
MATDOC and not in MKPF and MSEG.
• Actual stock quantity data will be
calculated on the fly from MATDOC.
• System will work on database level in an
INSERT only mode without DB locks.
• For compatibility reasons, Core Data
Services (CDS) views are assigned as proxy
objects to all those tables.
Business Value
• Simple and fast
reporting since most
of the information is
all in one place.
`
`
In ECC
Availability of transactions in MM-IM
• MB transactions are
used like MB01 to
MB05, MB0A, MB11,
MB1A to MB1C,
MB31, MBNL, MBRL,
MBSL, MBST and
MBSU.
• MMBE_OLD is used.
In S/4 HANA
• “MB transactions” replaced by a single-
screen generalized transaction called
“MIGO”.
• MMBE_OLD replaced by transaction
MMBE. Also FIORI App stock overview is
also available.
Business Value
• MB Transaction
codes should not be
used in customer
coding.
•MB transaction
codes will become
obsolete in near
future.
• No need to
remember lot of
transaction codes.
•Coding simplified for
Z-Reports.
`
`
In ECC
Material Ledger Obligatory for Material Valuation
• Material ledger not
mandatory .
• Inventory valuation
tables used EBEW,
EBEWH, MBEW,
MBEWH, OBEW,
OBEWH, QBEW and
QBEWH.
In S/4 HANA
• Material ledger mandatory to be
activated.
• xBEW(H) tables will only store material
master data attributes.
• Transactional fields will be retrieved from
Universal Journal Entry Line Item table
ACDOCA and the Material Ledger table.
• CDS views are assigned as proxy objects.
• In MM02 and MR21, material prices can
now be maintained in multiple currencies.
•In financials, inventory account balances
are calculated for each currency.
Business Value
• More flexible valuation
method in multiple
currencies and parallel
accounting standards.
• System resources
reduced.
•Scalability of business
process improved.
•Find actual cost
component splits of
materials.
•Cleaner and more
consistent valuation in
other currencies than
local currencies.
`
`
In ECC
Performance optimizations within Material Document processing – lock beh
• Lock strategy for
materials was not
required.
In S/4 HANA
• No locks on DB level.
• Parallel execution of material document
processing.
• Early lock strategy : All master data and
quantities are read in an array fetch before the
item processing (except for special stocks) and
exclusive locks are set during entire processing of
material document.
• Late lock strategy : No exclusive locks are set in
this process. It will be set for only short duration
of time during item processing for each specific
item. This will be converted into shared lock after
checks for stock underrun.
•Locks on batches : This protects parallel changes
of batch master and it reduces collision rate of
parallel material document postings for batch
material line items.
Business Value
• Consistency with
material master data.
• Use of lock
strategies to enhance
business process and
bring more clarity.
•Lock can be set on
material, plant,
storage location,
stock identifier,
special stock
identifier level.
`
`
In ECC
BOM, Routing, Production Version
• Production version
not mandatory in ECC
for BOM, Routing etc.
In S/4 HANA
• Production version are mandatory in S/4
HANA, MRP, planned order creation for
correct BOM explosion.
• Production order creation only find a
BOM and routing alternative if a production
version is maintained for BOM and routing
alternative.
Business Value
• Production version
allow to define which
BOM alternative goes
together with which
routing alternative.
• Mandatory production
version make MRP
sourcing simpler.
• No need to control
MRP sourcing with
additional control
indicators like selection
method MARC-ALTSL in
material master.
•Production version is
mandatory in PP/DS.
`
`
In ECC
MRP in HANA
• MRP run determines
expected material
shortages and creates
planned orders, PR or
delivery schedule lines
to cover expected
material shortages.
•During STO from one
plant to another stock
transfer requirement
is not known in
supplying plant until
after the material has
been planned in
receiving plant.
In S/4 HANA
• MRP Live is a feature newly introduced in S/4 HANA.
•MRP Live reads material receipts and requirements,
calculates shortages and creates planned orders and PR all
in one database procedure.
•This minimizes volume of data that has to be copied from
database server to application server and back, hence
improving performance.
• Planning scope is more flexible with MRP Live, allows
you to plan a set of materials with all components across
all plants.
•For stock transfer requirements, MRP Live determines
sequence in which materials have to be planned across
several plants.
•MRP Live is prerquisite for future production planning
and detailed scheduling PP/DS solution.
Business Value
• Production version allow to
define which BOM
alternative goes together
with which routing
alternative.
• Mandatory production
version make MRP sourcing
simpler.
• No need to control MRP
sourcing with additional
control indicators like
selection method MARC-
ALTSL in material master.
•Production version is
mandatory in PP/DS.
•Classic MRP still available as
interim solution, but not
considered as future
technology.
`
`
In ECC
MRP in HANA (contd…)
`
Difference between MRP Live and Classic MRP
• MRP live does not write MRP lists.
• Multi-level, make-to-order planning (transaction MD50) is not optimized for HANA.
• Individual project planning (transaction MD51) is not optimized for HANA.
• The creation indicator for purchase requisitions is not available in MRP Live.
MRP Live always creates purchase requisitions if the material is procured externally.
• The creation indicator for delivery schedule lines is not available in MRP Live.
MRP Live always creates delivery schedule lines if a valid delivery schedule exists.
Forecast Based Planning
• In forecast based planning
(MRP type VV) the MRP
creates planned orders or
purchase requisitions , if total
forecast demand up to a
certain point of time exceeds
the total confirmed, the
receipt quantity up to the
same point of time. The total
firmed receipt quantity
includes inventory, production
orders, purchase orders,
firmed planned orders, and
firmed purchase requisitions.
•Forecast based planning is a
simple planning procedure,
which does not require
managing planned
independent requirements.
In S/4 HANA
• MRP live does not perform forecast based
planning in HANA but sends the affected
materials into the classic ABAP planning
procedure.
• The system records all changes of planned
independent requirements which facilitates
reporting .
• The system records all changes of planned
independent requirements which facilitates
reporting
Business Value
• Not much of a
change from existing
Forecast based
planning.
`
`
In ECC
Demand Forecasting
• Classic demand
forecasting copies the
consumption history
into an ABAP
application server,
performs the
forecasting algorithm
in ABAP and writes
the result back into
the database.
• Copying data
between database
server and ABAP
application server
takes time.
In S/4 HANA
• HANA has a built in library of forecasting
algorithms, which could be utilized for
forecasting material demand. A future
demand forecasting solution will probably
perform the forecasting algorithm in HANA
utilizing HANA's forecasting library.
• Transactions MP30, MP31, MP32, MP33,
MP38, and MP39 are still available in SAP
S/4HANA.
Business Value
• Faster forecasting
• Better algorithms
• In line with future
technology of
forecasting material
demand.
`
`
In ECC
PP-MRP- Subcontracting
• Planning subcontracting
demand together with
internal demand in the make-
to-stock planning section .
• Separating subcontracting
demand and stock into single
subcontracting planning
sections (one section per
subcontractor) and planning
uncovered subcontracting
demand together with
internal demand in the make-
to-stock planning section.
• Planning separately the
demand of every
subcontractor by means of
subcontracting MRP areas.
In S/4 HANA
• Separate planning of every subcontractor
is possible without having to create an
MRP-area-specific material master record .
• The planning logic is simplified. There are
two rather than three different ways to
plan parts to be provided to a
subcontractor.
Business Value
• Master data
maintenance simplified.
• Sophisticated planning
functionality for
subcontracting
components using
subcontracting MRP
area without necessity
to maintain appropriate
material master data.
• Reduction of modeling
alternatives for the
planning and evaluation
processes for the
procurement of
subcontracting
components.
`
`
In ECC
Master Data
`
Logistics Batch Management
• Currently
transactions being
used for batch
management is MSC1,
MSC2, MSC3 and
MSC4.
In S/4 HANA
• New T-codes to be used for batch
management is MSC1N, MSC2N, MSC3N
and MSC4N.
Business Value
• Only transaction
code related
changes, not much
impact on business
process.
`
`
In ECC
Business Partner BUT000 / Header Level Time Dependency
• Currently there is no
scope of time
dependency.
• Suppliers and
customers created
through T-codes XK01
to XK03, XD01 to
XD03.
In S/4 HANA
• Activation of time-dependency available
for customers through configuration.
Business Value
• Time dependency
functionality has
been disabled at
header level of
BUT000 in SAP S/4
HANA to ensure that
there are no
inconsistencies in the
master data.
`
`
In ECC
Business Partner hierarchy not available
In S/4 HANA
• Business partner hierarchy is not
accessible.
• Transactions not available : BPH,
BPH_TYPE.
• BAPIs not available :
BUHI_ASSIGN_BP_TO_NODE ,
BUHI_CLEAR_BUFFER,
BUHI_DELETE_BP_FROM_NODE
• IMG activity node not available : BP Group
Hierarchy.
•BOR Object not available : BUS1006004
Business Value
• Business partner hierarchy is
removed in SAP S/4 HANA to
avoid redundancy as
customer hierarchy is already
available for the applications
to consume.
`
Business Partner Tax Classification BUT_FRG0011 is deactivated
• Tax classification
maintained at two
levels :
• Business
Partner
( BUT_FRG0011).
• Customer
(KNVI)
In S/4 HANA
• To ensure data consistency, now it is
maintained only at one of the levels.
• Tax classification must be maintained for a
BP using Customer role (FLCU01) as
Customer Tax Classification and NOT at BP
level. Hence BP tax classification for all roles
is now deactivated.
Business Value
• When BP tax classification
is activated :
• Users can maintain
tax classification at
business partner and
customer level.
• Tax classification
data needs to be
duplicated.
• Results in
inconsistency of data.
• When BP tax classification
is de-acticvated :
• Users can maintain
Tax Classification
level at only
CUSTOMER LEVEL.
• Tax Classification
data will NOT be
duplicated.
• Data remains
consistent.
`
`
In ECC
Business Partner Approach
In S/4 HANA
• Transactions obsolete : Series of
FD*, FK*, MK*, MA*, V-*, VA*, VD*,
XD*, XK*.
• Transaction code available : BP
• While creating consumer, use BP
grouping associated to customer
account group – TBD001. Customer
itself is a contact person.
• One time supplier/ customer : BP
grouping to be used TBD001 and
TBC001.
Business Value
• BP is leading object and single
entry point to maintain BP,
customer and supplier.
• BP allows maintenance of multiple
addresses with corresponding
address usage.
• BP allows multiple roles to be
associated to same BP.
• Max. data sharing and reuse of
data leads to easier data
consolidation.
• General data available for all
different BP roles, specific data is
stored for each role.
• Maintenance of multiple
relationships to same BP.
• Maintenance of time dependency
at different sub-entities roles,
address etc.
`
• One customer can
only be associated to
one account group.
• General data not
available for customer
or supplier.
• Complex data
consolidation.
• No concept of
Business Partner ,
mostly non-existent.
`
In ECC
Material Number Field Length Extension
In S/4 HANA
• Material number field length
extended from 18 to 40 characters.
• Coding automatically adopts to
domain changes with respect to
material number length used in
existing report logics.
• Pure material numbers is still
restricted to 18 characters.
• Changes is compatible for BAPIs,
IDocs and released remote-enabled
function modules.
Business Value
• Alpha numeric material
numbers can now be
created as per the
requirement of the client.
`
• Material number
field length is only 18
digits.
`
In ECC
Foreign Trade fields in Material Master
In S/4 HANA
• The Foreign Trade functionality as part of Sales & Distribution is not available within
SAP S/4HANA. The functional equivalent in SAP S/4HANA is SAP Global Trade Services
(GTS).
• The below mentioned fields for Letter of Credit/ Legal control/ Export control/
Preference management in Foreign Trade is supported by GTS from S/4HANA and
not through Material Master:
• CAP product list no. (MARC-MOWNR)
• CAP prod. group (MARC-MOGRU)
• Preference status (MARC-PREFE)
• Vendor decl. status (MARC-PRENE)
• Exemption Certificate (MARC-PRENC)
• Exemption Cert. No. 9 (MARC-PRENO)
• Issue date of expiry certificate (MARC-PREND)
• Military goods (MARC-ITARK)
MRP fields in Material Master
In S/4 HANA
• SAP S/4HANA simplification is done on the following tabs in transaction MM01/02/03.
• Lot Size data in MRP1 Tab:
o Unit of Measure Group (MARC-MEGRU)
• Procurement in MRP2: MRP considers quota arrangements always, henceforth it is not required to switch it on in
the material master.
o Quota arr. usage. (MARC-USEQU)
• BOM explosion /dependent Requirement tab in MRP4
o Selection Method (MARC-ALTSL)
• Repetitive manufacturing /assembly /deployment strategy tab of MRP4
o Action control (MARC-MDACH)
o Fair share rule (MARC-DPLFS)
o Push distribution (MARC-DPLPU)
o Deployment horizon. (MARC-DPLHO)
• Storage Location in MRP4
o SLoc MRP indicator (MARD-DISKZ)
o Spec.proc.type SLoc (MARD-LSOBS)
o Reoder Point (MARD-LMINB)
o Replenishment qty. (MARD-LBSTF)
• Also the backend database fields for these "omitted functionality" remains existing in the system.
Material Type SERV
In S/4 HANA
• Material type "SERV" for services is introduced for Product Master in S/4HANA
for simplification purposes .
• Material type SERV, some fields and departments that are irrelevant in S/4 are
hidden from the screen. This gives all transactions relevant for material master, a
leaner and simplified look.
•A new material type SERV (Service Materials) is created with reduced user
departments and fields in the classical transactions: MM01/MM02/MM03.
• Supported user departments : Accounting, Purchasing, Basic Data and Sales.
• The other user departments are hidden for Material Type “Service Materials”.
Finance & Controlling
`
Why Simple Finance ??
• SAP S/4 HANA is minimizing the
redundancy and complexity of
existing system by consolidating
multiple tables into single table.
Example: Earlier there are two
tables for document header and
for line items, now those are
consolidated.
Importance- Simple finance come across the
following constraints in ECC:
•On time closure of financials
•Easy way of reporting
•Cloud storage, Cloud computing
•Access the data from multiple sources like ( PC / Tab
and even from mobiles)
•Easier way of reconciliation between finance and
controlling by introduction of secondary cost
elements as GL’s.
•GL creation (FS00) ends up with cost element
creation. Cost element screen now available in FS00
itself.
•Accounting based COPA now its easier at the same
time we can use costing
based COPA also.
`
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.
Example of massive simplification :
SAP Accounting powered by S4 HANA
Stability Flexibility
Pre defined aggregates
FI
Document
CO
Document
Total and
Indices Financial
Accounting
Total and Indices
Management
Account
Processing
Analytics
Logisitics
Document
Stability Flexibility
Processing
Analytics
Logisitics
Document
FI Document
CO Document
Aggregation
on the
fly via HANA
views
From…
To…
Logical Document
•Example on How Account
based COPA is easier by
using simple finance?
Currently COPA data is storing in
COEP table and it contains
multiple tables like CE1XXXX,
CE2XXXX, CE3XXXX, CE4XXXX, now
all the data will be stored in a
single table named ACDOCA. It is
easier to build reports using the
ACDOCA Table.
Secondary cost element as a GL Account:
Replaced Transaction codes and programs in FIN
In S/4 HANA
Old Functionality Type New Functionality Type Text
FS01 TA FS00 TA Create G/L Accounts
FS02 TA FS00 TA Change G/L Accounts
FS03 TA FS00 TA Display G/L Accounts
CK11 TA CK11N TA Create Product Cost estimate
CK13 TA CK13N TA Display Product Cost estimate
CK41 TA CK40N TA Create Costing Run
CK42 TA CK40N TA Change Costing Run
CK43 TA CK40N TA Display Costing Run
CK60 TA CK40N TA Preselection for Material/Plant
CK62 TA CK40N TA Find Structure: BOM Explosion
CK64 TA CK40N TA Run: Cost Estimate of Objects
CK66 TA CK40N TA Mark Run for Release
CK68 TA CK40N TA Release Costing Run
CK74 TA CK74N TA Create Additive Costs
KB11 TA KB11N TA Enter Reposting of Primary Costs
KB21 TA KB21N TA Enter Activity Allocation
KB31 TA KB31N TA Enter Statistical Key Figures
KB33 TA KB33N TA Display Statistical Key Figures
KB34 TA KB34N TA Reverse Statistical Key Figures
KB51 TA KB51N TA Enter Activity Posting
KE21 TA KE21N TA Create CO-PA line Item
KE23 TA KE24 TA Display CO-PA line item
KKE1 TA CKUC TA Add Base Planning Object
KKE2 TA CKUC TA Change Base Planning Object
KKE3 TA CKUC TA Display Base Planning Object
KKEC TA CKUC TA Compare Base Object - Unit Cost Est
KKED TA CKUC TA BOM for Base Planning Objects
KKB4 TA CKUC TA Itemization for Base Planning Obj.
KKBF TA KKR0 TA Order Selection (Classification)
Replaced Transaction codes and programs in FIN
In S/4 HANA
Old Functionality Type New Functionality Type Text
KKPHIE TA
CKMDUVMAT/CKMDUVACT
(Distribution)
TA Cost Object Hierarchy
KKP2 TA
CKMDUVMAT/CKMDUVACT
(Distribution)
TA Change Hierarchy Master Record
KKP4 TA
CKMDUVMAT/CKMDUVACT
(Distribution)
TA Display Cost Object Hierarchy
KKP6 TA
CKMDUVMAT/CKMDUVACT
(Distribution)
TA Cost Object: Analysis
KKPX TA
CKMDUVMAT/CKMDUVACT
(Distribution)
TA Actual Cost Distribution: Cost Obj.
KKPY TA
CKMDUVMAT/CKMDUVACT
(Distribution)
TA Actual Cost Distribution: Cost Obj.
RAGITT01 PROG S_ALR_87011990 TRAN Asset History Sheet
FAGL_FC_VAL TA FAGL_FCV TRAN Foreign Currency Valuation
S_E38_98000088 TA
Profit Center Group:
Plan/Actual/Dif
FIORI Profit Center - Plan/Actual (Fiori-ID: F0926; Query: /ERP/SFIN_M01_Q2701)
S_E38_98000089 TA Profit Center Group:
Plan/Plan/Actual
FIORI Profit-Center - Plan/Actual current year (Fiori-ID: F0932; Query:
/ERP/SFIN_M01_Q2702)
Asset Accounting
In S/4 HANA
• New G/L accounting gets automatically activated, if currently classic G/L
accounting is used.
• Actual values from tables ANEP, ANEA, ANLP, ANLC are saved in table ACDOCA
in new Asset Accounting. The values from table ANEK are saved in tables BKPF
and ACDOCA in new Asset Accounting. Postings are still made to table BSEG.
• Statistical data and plan data:
o Statistical values (for example, for tax reasons) from tables ANEP, ANEA,
ANLP and ANLC, are saved in new Asset Accounting in table
FAAT_DOC_IT.
o Planned values from tables ANLP and ANLC are saved in table
FAAT_PLAN_VALUES in new Asset Accounting.
Asset Accounting : Parallel Valuation and Journal Entry
In S/4 HANA
• Can map parallel valuations with ledger approach or accounts approach. A mixture of two
is not supported (ledger with accounts approach).
• One can record the leading valuation of Asset Accounting in any depreciation area of new
Asset Accounting. It no longer necessary to use depreciation area 01 for this. The system
now posts both the actual values of the leading valuation and values of parallel valuation in
real time.
•Delta depreciation is no longer required and supported.
• One can post in real time in all valuations (for all accounting principles).
• One can track posting of all valuations without taking into account the postings of leading
valuation as was the case in Asset Accounting.
• Asset Accounting is based on Universal Journal Entry, so no redundancy of any data store.
• Reconciliation postings are no longer necessary with closing operations as General Ledger
Accounting and Asset Accounting are reconciled permanently anyway due to the universal
journal entry.
• The hitherto existing periodic posting run for APC values is redundant.
• Postings for group assets are redundancy-free.
Asset Accounting : Parallel Valuation and Journal Entry
In S/4 HANA
• The migration must take place at a time when only one fiscal year is open in Asset Accounting. Once migration is
completed, you are not allowed to open any fiscal year again that occurred before the migration in Asset
Accounting.
• You cannot reverse documents that were created before the conversion from classic to new Asset Accounting.
Instead, you have to make an inverse posting.
• It is not possible to reverse integrated asset postings that were posted in new Asset Accounting in SAP
enhancement package 7 for SAP ERP 6.0, SP02 or higher and were migrated. Instead, you have to make an inverse
posting.
• If until now you updated transactions in parallel valuations with different fiscal year variants and want to continue
using this update, then you must implement a new representative ledger using the SAP General Ledger Migration
Service.
• It may no longer be possible to process worklists that have been created before the changeover to the new Asset
Accounting. This involves worklists that create transaction data (however, not master data changes), such as
worklists for retirement without revenue, retirement with revenue, intercompany asset transfer, and impairment
posting. You should therefore either process these worklists before you activate the Customizing switch, or create
them again once you have activated new Asset Accounting.
• New transactions : AB01L, ABAAL, ABAKL, ABAOL, ABAVL, ABAWL, ABGFL, ABGLL, ABIFL, ABMAL, ABMRL, ABNAL,
ABNEL, ABNKL, ABSOL, ABSTL, ABUML, ABZEL, ABZOL, ABZPL, ABZUL .
• Obsolete transactions : ABSO_OLD, ABST, ABST2, ABSTL, ABUB, AW01_AFAR, ABF1, ABF1L, AJRW, OASV, AB02,
ASKB, ASKBN, ABB1, ABMW and ABCO.
Cash Management
In S/4 HANA
• Centralized bank account management is
supported.
• Bank accounts can be replicated via IDoc to
other systems.
•Fuzzy search for bank accounts.
• Attachments
• FIORI apps applicable.
•Bank hierarchy based on Business Partners.
• Data Integration with MM& SD
• Liquidity Forecast
•Actual cash flow and cash flow detailed analysis.
• Maintaining house bank accounts not available.
Business Value
• Flexibility
• End-to-End process of
monitoring bank statements
imports, checking cash
position and transferring fund
to handle surplus and deficit.
• Medium term liquidity
forecast and rolling plans of
long term liquidity.
• Centralized bank account
management, with which
business users can manage
bank accounts as master data
with more business
attributes.
`
• Create Bank : FI01
• Change Bank : FI02
• Display Bank : FI03
• House Bank /
Account : FI12
• Business Partner
(Role TR0703) : BP
• Transaction codes :
FF63, FF65, F110,
F111.
`
In ECC
Controlling
In S/4 HANA
• Creation of cost estimates with reference
to base planning objects is not supported.
• Use transaction CKECP to prepare ad-hoc
cost estimates and CKUC to prepare
multilevel material cost estimates where
BOMs and routings are not available for
material in question.
• Currently using base planning
objects to store cost estimates
that can be included in cost
estimates for projects, SO and
so on as items of type Base
planning objects. `
In ECC
Technical changes in Material Ledger with Actual Costing
Business Value / S4 HANA
• Reduce complexity and improve runtime in Material Ledger Costing Cockpit for Actual
Costing.
• Separate process steps like Single level price determination, Multilevel price
determination, Revaluation of Consumption, WIP Revaluation are merged to one process
step called Settlement.
• New 2-dimensional distribution logic to avoid rounding errors.
• Less “Not distributed” values.
• No lock conflicts caused by material movements (in current period).
• Change of standard price for materials and activities within the period is supported.
• Separate currency customizing of Material Ledger (Tx OMX2/OMX3) is obligatory.
• No default Material Ledger type ‘0000’ anymore.
Technical changes in Material Ledger with Actual Costing (contd..)
Business Value / S4 HANA
• It is not allowed to use a ML Type that references to currency settings defined in FI or CO
(flags ‘Currency Types from FI’ resp. ‘Currency Types from CO’). Instead you have to define
explicitly the currency and valuation types that are relevant for Material Ledger.
• The new Material Ledger Document tables MLDOC and MLDOCCCS replace most former
periodic tables (MLHD, MLIT, MLPP, MLPPF, MLCR, MLCRF, MLKEPH, CKMLPP, CKMLCR,
MLCD, CKMLMV003, CKMLMV004, CKMLPPWIP, CKMLKEPH)
• The design of tables MLDOC/ MLDOCCCS allows storing both line item and aggregated
data.
• Single- and multilevel differences are no longer distinguished. In table MLDOC all
price/exchange rate differences are stored in fields PRD/KDM. In table MLDOCCCS the CCS
for price/exchange rate differences are stored under the CCS types E/F (field MLCCT).
• The CCS is stored in a table format using the cost component (field ELEMENT) as
additional key. This allows increasing the number of cost components without
modification.
Technical changes in Controlling
Business Value
• Total records for primary and secondary
costs have been removed and universal
journal includes all actual cost postings,
both primary and secondary.
• For primary postings, all general ledger
items with assignment to cost centers,
orders, WBS etc are treated as one data
record which is enriched with relevant
profit center, functional area etc.
• For secondary postings, all sender-
receiver relationships that are triggered by
allocations, settlement are captured in
universal journal along with partner profit
centers, functional area etc.
• Actual data of COEP
(WRTTP=’04’) is now stored in
ACDOCA.
• Actual statistical data of COEP
(WRTTP=’11’) is stored in ACDOCA
using additional columns and in
COEP for compatibility access.
• Actual data needed for long term
orders/projects from COSP_BAK,
COSS_BAK is stored in table
ACDOCA.
• COBK is written as before.
• Access to old data in tables is still
possible via the views.
`
In S/4 HANA
Profitability Analysis
Business Value
• The universal journal (ACDOCA) is heart of Accounting and includes all Profitability
Analysis (CO-PA).
• All revenue and cost of goods sold postings are automatically assigned to relevant CO-
PA characteristics at time of posting.
• Automatic derivation of CO-PA characteristics can reduce number of settlements and
allocations to be performed at period close and provide real time visibility into spending
during the period.
• No reconciliation issues between G/L and Profitability Analysis.
• COGS postings are captured at time of GI from WH. Splitting of COGS posting to
multiple accounts is possible.
• Production order variances can be split to multiple accounts to separate scrap, price
variances, quantity variances etc.
In S/4 HANA /
Currencies in Universal Journal
In S/4 HANA
• Central currency configuration for
universal journal.
• Combined view cluster for ledgers and
currencies, tx FINSC_LEDGER.
• Second and Third parallel currencies of FI
(BSEG-DMBE2 or BSEG-DMBE3) correspond
to 2 amount fields of KSL-GSL according to
config in tx FINSC_LEDGER.
• Table BSEG will not be extended and still
contains only 3 parallel currencies.
• Currency types in customer name space
are not allowed as BSEG relevant currency.
Business Value
• All journal entry items are
converted in accounting
interface for all configured
currencies, regardless of
source where the business
transaction originates from.
`
• There are 3 parallel
currencies in FI
(T001A/ tx OB22) and
2 parallel currencies in
CO (TKA01/ tx OKKP).
• The currencies of
non leading ledgers in
NewGL (T882G) were
a subset of currencies
in leading ledgers
(T001A).
• One of CO currencies
needed to be local
currency (CT 10), but
it was not necessary
that the other
currency in CO was
also configured in FI.
`
In ECC
S/4 HANA conversion functional value proposition

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S/4 HANA conversion functional value proposition

  • 1. S/4 HANA Conversion Functional Value Proposition By Vignesh Bhatt
  • 2. What is SAP HANA ? A Revolutionary Business Platform - Future ready SAP HANA in memory platform • SAP HANA is the engine of the real time enterprise, enabling clients to analyze large quantities of data from virtually any source in real time. • This example showcases actual customer performance of a core reporting process. Experience real time enterprise in action • SAP HANA analyzes current point of sale data in real time, empowering this organization to review segmentation, merchandizing, inventory management and forecasting information at speed of thought. Hours before S/4 HANA Runs 3600x faster In seconds with SAP HANA 460 Billion records 50 Terabytes of data 70 net alerts 0.04 seconds Analysis response time On any device, anywhere, anytime Speed Innovation Agility Simplicity Any data Cloud Insight Applications Value
  • 3.
  • 4. SAP HANA the great simplifier of enterprise software SAP HANA SAP Simple Finance powered by SAP HANA SAP Business warehouse powered by SAP HANA SAP Business Suite powered by SAP HANA SAP S/4 HANA In memory platform • Real time analysis •Real time reporting •Real time business •OLAP and OLTP together •SAP HANA Enterprises •Cloud for SAP Business Suite on SAP HANA •Instant financial insight •No aggregates •Single source of truth •Simplified data model •New user experience •Advanced processing •Choice of deployment
  • 5. A logical evolution each being necessary to provide significant new business capability and escape the constraints of the past. R/2 R/3 R/4 S4 HANA 1979 Mainframe 1992 Client S server 2004 Web SOA 2015 IoT APIs Mobile
  • 6. Phase 1 Start Release Phase 2 Prerequ isites Phase 3 Editions Phase 4 Business Case Phase 5 Project Type SAP S/4 HANA Migration path SAP ERP < 6 SAP NW x.x. Non Unicode DB SAP ERP < 6 SAP NW x.x. Any Unicode DB Legacy Any DB SAP ERP 6 EHP 0 + SAP NW 7.4 Unicode Any DB SAP ERP 6 EHP 7 + SAP NW 7.4 + SAP HANA Simple Finance SAP ERP 6 EHP 7 +SAP NW 7.5 + SAP HANA SAP Business Suite SAP Business Suite SAP Business Suite SAP Business Suite SAP Business Suite Unicode Conversion One Step Migration SAP S/4 HANA on premise SAP S/4 HANA Cloud B P G Brownfield Phased Greenfield Data Migration Custom code Remedian Architecture Complexity Business model changes Conversion effort
  • 7. Some Facts about SAP S/4 HANA 1. Built on SAP HANA 2. ERP, CRM, SRM, SCM PLM in one system. 3. No locking, parallelism. 4. Actual data (25%), and historical (75%). 5. Unlimited workload capacity. 6. Predict, recommend, simulate. 7. SAP HANA Cloud Platform extensions. 8. SAP HANA multi-tenancy. 9. All data : social, text, geo, graph processing. 10. New SAP Fiori UX for any device (mobile, desktop, tablet). Three deployment options : on-premise, public cloud, managed cloud. 10x Smaller data footprint 1800x Faster reporting and analytics 4x Less process steps 7x Higher throughput 200x Faster response in end- end process
  • 8.
  • 10. Authority Concept for Supplier Invoice The previous concept was based on checking header data against the item authorization object for all items. The system checked for all items if a user was allowed to complete certain activities in the plants. In S/4 HANA With the new concept, the behaviour of the system is more comprehensive. The new concept introduces a header authorization object that enables the system to perform the following authorization checks: • Check header data against the header authorization object (M_RECH_BUK). This authorization object checks the common activities a user performs for the header company code. • Check item data against the item authorization object (M_RECH_WRK). This authorization object checks the common activities a user performs for the plant for the respective item. Business Value The new authority concept for supplier invoice enables a simplified handling especially for invoice items w/o PO reference. ` ` In ECC
  • 11. Foreign Trade within SAP S/4 HANA Procurement Currently there are two services for international trade transactions : •Foreign trade (FT) •SAP Global Trade Services (GTS). In S/4 HANA • Foreign Trade : • Global Trade Services is successor for business requirement. •Additional functions for import and export management are available with SAP GTS. Business Value • Strategic Decision to remove FT and inculcate GTS. •Selected international trade functionalities to be provided with foreign trade in S/4 HANA. ` ` In ECC
  • 12. RFQ Simplified Transaction • RFQ with mandatory supplier field. •Only possible to enter one supplier quote per RFQ. •Not possible to integrate with different Sourcing Integration Scenarios like Ariba Sourcing, Ariba Spot Quote etc. In S/4 HANA • Send RFQ via FIORI app to external sourcing platforms without supplier included . • Multiple supplier quotes can be received. •Existing transaction codes like ME41, ME42, ME43, ME49, ME4B, ME4C etc. is planned to be replaced with corresponding FIORI apps. Business Value • Flexibility • Excess use of Transaction Codes ` ` In ECC
  • 13. Vendor evaluation based on LIS • Vendor evaluation reporting based on tables and structures. • Real time supplier evaluation not available. In S/4 HANA • SAP HANA reporting capabilities based on CDS views. Business Value • Real time supplier evaluation capabilities without building and referring to table and structure aggregates. • Provides much more analytical visualization options as LIS. ` ` In ECC
  • 14. Output management adoption in Purchase Order • Configuration through NACE. • Cannot use Adobe Forms • Smartforms and SAP Script is largely used. In S/4 HANA • Includes cloud qualities such as extensibility enablement, multi tenancy enablement and modification free configuration. • Output management based on NAST. • Business Rule Framework (BRF+) is used. • Target architecture is based on Adobe Document Server and Adobe Forms only. • Form Determination rules BRF+ is used. • Supports Channels, PRINT, EMAIL, XML (for Ariba Network Integration). Business Value • Unified solution can be used for all Output Management activities. • Due to BRF+ many integration issues resolved. •Additional capabilities of BRF+ apart from Output Management. ` ` In ECC
  • 16. New advanced ATP in SAP S/4 HANA – Table VBBS • Database table VBBS contained pre- aggregated sales requirements. •The requested (OMENG) and confirmed (VMENG) quantities aggregated on a daily basis. In S/4 HANA • Do not need pre-aggregation anymore. Table is obsolete. • Instead of VBBS, we use VBBE where each ATP-relevant requirement is explicitly stored. •Old ERP-ATP check code is also redirected to use VBBE. •New entries automatically “choose” to use VBBE instead VBBS. Business Value • Aggregate data in real time. • Aggregate-table for sales order requirement VBBS not necessary anymore. ` ` In ECC
  • 17. Blocked customer or supplier in IM • End of purpose check for customer and supplier master data. In S/4 HANA • Material documents related to customer or supplier to be blocked must be archived. • Special stocks related to customer or supplier to be archived or deleted. • Physical inventory documents related to customer or supplier to be blocked must be archived. • Open reservations related to customer or supplier to be blocked must be deleted. •The customer or supplier to be blocked must be removed from plant data. Business Value • Redundancy of data reduced. • SAP offer SI check to identify blocked customer or supplier. • Faster approach. • Flexibility ` ` In ECC
  • 18. Data model in Inventory Management • MKPF table used for document header • MSEG table used for document item data. • Aggregated actual stock quantity data stored in several tables. • Material master data stored in tables like MARC, MARA,MARD and MCHB. In S/4 HANA • De-normalized table used called MATDOC which contains former header and item data of material document as well as lot of other attributes too. • Material document data will be stored in MATDOC and not in MKPF and MSEG. • Actual stock quantity data will be calculated on the fly from MATDOC. • System will work on database level in an INSERT only mode without DB locks. • For compatibility reasons, Core Data Services (CDS) views are assigned as proxy objects to all those tables. Business Value • Simple and fast reporting since most of the information is all in one place. ` ` In ECC
  • 19. Availability of transactions in MM-IM • MB transactions are used like MB01 to MB05, MB0A, MB11, MB1A to MB1C, MB31, MBNL, MBRL, MBSL, MBST and MBSU. • MMBE_OLD is used. In S/4 HANA • “MB transactions” replaced by a single- screen generalized transaction called “MIGO”. • MMBE_OLD replaced by transaction MMBE. Also FIORI App stock overview is also available. Business Value • MB Transaction codes should not be used in customer coding. •MB transaction codes will become obsolete in near future. • No need to remember lot of transaction codes. •Coding simplified for Z-Reports. ` ` In ECC
  • 20. Material Ledger Obligatory for Material Valuation • Material ledger not mandatory . • Inventory valuation tables used EBEW, EBEWH, MBEW, MBEWH, OBEW, OBEWH, QBEW and QBEWH. In S/4 HANA • Material ledger mandatory to be activated. • xBEW(H) tables will only store material master data attributes. • Transactional fields will be retrieved from Universal Journal Entry Line Item table ACDOCA and the Material Ledger table. • CDS views are assigned as proxy objects. • In MM02 and MR21, material prices can now be maintained in multiple currencies. •In financials, inventory account balances are calculated for each currency. Business Value • More flexible valuation method in multiple currencies and parallel accounting standards. • System resources reduced. •Scalability of business process improved. •Find actual cost component splits of materials. •Cleaner and more consistent valuation in other currencies than local currencies. ` ` In ECC
  • 21. Performance optimizations within Material Document processing – lock beh • Lock strategy for materials was not required. In S/4 HANA • No locks on DB level. • Parallel execution of material document processing. • Early lock strategy : All master data and quantities are read in an array fetch before the item processing (except for special stocks) and exclusive locks are set during entire processing of material document. • Late lock strategy : No exclusive locks are set in this process. It will be set for only short duration of time during item processing for each specific item. This will be converted into shared lock after checks for stock underrun. •Locks on batches : This protects parallel changes of batch master and it reduces collision rate of parallel material document postings for batch material line items. Business Value • Consistency with material master data. • Use of lock strategies to enhance business process and bring more clarity. •Lock can be set on material, plant, storage location, stock identifier, special stock identifier level. ` ` In ECC
  • 22. BOM, Routing, Production Version • Production version not mandatory in ECC for BOM, Routing etc. In S/4 HANA • Production version are mandatory in S/4 HANA, MRP, planned order creation for correct BOM explosion. • Production order creation only find a BOM and routing alternative if a production version is maintained for BOM and routing alternative. Business Value • Production version allow to define which BOM alternative goes together with which routing alternative. • Mandatory production version make MRP sourcing simpler. • No need to control MRP sourcing with additional control indicators like selection method MARC-ALTSL in material master. •Production version is mandatory in PP/DS. ` ` In ECC
  • 23. MRP in HANA • MRP run determines expected material shortages and creates planned orders, PR or delivery schedule lines to cover expected material shortages. •During STO from one plant to another stock transfer requirement is not known in supplying plant until after the material has been planned in receiving plant. In S/4 HANA • MRP Live is a feature newly introduced in S/4 HANA. •MRP Live reads material receipts and requirements, calculates shortages and creates planned orders and PR all in one database procedure. •This minimizes volume of data that has to be copied from database server to application server and back, hence improving performance. • Planning scope is more flexible with MRP Live, allows you to plan a set of materials with all components across all plants. •For stock transfer requirements, MRP Live determines sequence in which materials have to be planned across several plants. •MRP Live is prerquisite for future production planning and detailed scheduling PP/DS solution. Business Value • Production version allow to define which BOM alternative goes together with which routing alternative. • Mandatory production version make MRP sourcing simpler. • No need to control MRP sourcing with additional control indicators like selection method MARC- ALTSL in material master. •Production version is mandatory in PP/DS. •Classic MRP still available as interim solution, but not considered as future technology. ` ` In ECC
  • 24. MRP in HANA (contd…) ` Difference between MRP Live and Classic MRP • MRP live does not write MRP lists. • Multi-level, make-to-order planning (transaction MD50) is not optimized for HANA. • Individual project planning (transaction MD51) is not optimized for HANA. • The creation indicator for purchase requisitions is not available in MRP Live. MRP Live always creates purchase requisitions if the material is procured externally. • The creation indicator for delivery schedule lines is not available in MRP Live. MRP Live always creates delivery schedule lines if a valid delivery schedule exists.
  • 25. Forecast Based Planning • In forecast based planning (MRP type VV) the MRP creates planned orders or purchase requisitions , if total forecast demand up to a certain point of time exceeds the total confirmed, the receipt quantity up to the same point of time. The total firmed receipt quantity includes inventory, production orders, purchase orders, firmed planned orders, and firmed purchase requisitions. •Forecast based planning is a simple planning procedure, which does not require managing planned independent requirements. In S/4 HANA • MRP live does not perform forecast based planning in HANA but sends the affected materials into the classic ABAP planning procedure. • The system records all changes of planned independent requirements which facilitates reporting . • The system records all changes of planned independent requirements which facilitates reporting Business Value • Not much of a change from existing Forecast based planning. ` ` In ECC
  • 26. Demand Forecasting • Classic demand forecasting copies the consumption history into an ABAP application server, performs the forecasting algorithm in ABAP and writes the result back into the database. • Copying data between database server and ABAP application server takes time. In S/4 HANA • HANA has a built in library of forecasting algorithms, which could be utilized for forecasting material demand. A future demand forecasting solution will probably perform the forecasting algorithm in HANA utilizing HANA's forecasting library. • Transactions MP30, MP31, MP32, MP33, MP38, and MP39 are still available in SAP S/4HANA. Business Value • Faster forecasting • Better algorithms • In line with future technology of forecasting material demand. ` ` In ECC
  • 27. PP-MRP- Subcontracting • Planning subcontracting demand together with internal demand in the make- to-stock planning section . • Separating subcontracting demand and stock into single subcontracting planning sections (one section per subcontractor) and planning uncovered subcontracting demand together with internal demand in the make- to-stock planning section. • Planning separately the demand of every subcontractor by means of subcontracting MRP areas. In S/4 HANA • Separate planning of every subcontractor is possible without having to create an MRP-area-specific material master record . • The planning logic is simplified. There are two rather than three different ways to plan parts to be provided to a subcontractor. Business Value • Master data maintenance simplified. • Sophisticated planning functionality for subcontracting components using subcontracting MRP area without necessity to maintain appropriate material master data. • Reduction of modeling alternatives for the planning and evaluation processes for the procurement of subcontracting components. ` ` In ECC
  • 29. Logistics Batch Management • Currently transactions being used for batch management is MSC1, MSC2, MSC3 and MSC4. In S/4 HANA • New T-codes to be used for batch management is MSC1N, MSC2N, MSC3N and MSC4N. Business Value • Only transaction code related changes, not much impact on business process. ` ` In ECC
  • 30. Business Partner BUT000 / Header Level Time Dependency • Currently there is no scope of time dependency. • Suppliers and customers created through T-codes XK01 to XK03, XD01 to XD03. In S/4 HANA • Activation of time-dependency available for customers through configuration. Business Value • Time dependency functionality has been disabled at header level of BUT000 in SAP S/4 HANA to ensure that there are no inconsistencies in the master data. ` ` In ECC
  • 31. Business Partner hierarchy not available In S/4 HANA • Business partner hierarchy is not accessible. • Transactions not available : BPH, BPH_TYPE. • BAPIs not available : BUHI_ASSIGN_BP_TO_NODE , BUHI_CLEAR_BUFFER, BUHI_DELETE_BP_FROM_NODE • IMG activity node not available : BP Group Hierarchy. •BOR Object not available : BUS1006004 Business Value • Business partner hierarchy is removed in SAP S/4 HANA to avoid redundancy as customer hierarchy is already available for the applications to consume. `
  • 32. Business Partner Tax Classification BUT_FRG0011 is deactivated • Tax classification maintained at two levels : • Business Partner ( BUT_FRG0011). • Customer (KNVI) In S/4 HANA • To ensure data consistency, now it is maintained only at one of the levels. • Tax classification must be maintained for a BP using Customer role (FLCU01) as Customer Tax Classification and NOT at BP level. Hence BP tax classification for all roles is now deactivated. Business Value • When BP tax classification is activated : • Users can maintain tax classification at business partner and customer level. • Tax classification data needs to be duplicated. • Results in inconsistency of data. • When BP tax classification is de-acticvated : • Users can maintain Tax Classification level at only CUSTOMER LEVEL. • Tax Classification data will NOT be duplicated. • Data remains consistent. ` ` In ECC
  • 33. Business Partner Approach In S/4 HANA • Transactions obsolete : Series of FD*, FK*, MK*, MA*, V-*, VA*, VD*, XD*, XK*. • Transaction code available : BP • While creating consumer, use BP grouping associated to customer account group – TBD001. Customer itself is a contact person. • One time supplier/ customer : BP grouping to be used TBD001 and TBC001. Business Value • BP is leading object and single entry point to maintain BP, customer and supplier. • BP allows maintenance of multiple addresses with corresponding address usage. • BP allows multiple roles to be associated to same BP. • Max. data sharing and reuse of data leads to easier data consolidation. • General data available for all different BP roles, specific data is stored for each role. • Maintenance of multiple relationships to same BP. • Maintenance of time dependency at different sub-entities roles, address etc. ` • One customer can only be associated to one account group. • General data not available for customer or supplier. • Complex data consolidation. • No concept of Business Partner , mostly non-existent. ` In ECC
  • 34. Material Number Field Length Extension In S/4 HANA • Material number field length extended from 18 to 40 characters. • Coding automatically adopts to domain changes with respect to material number length used in existing report logics. • Pure material numbers is still restricted to 18 characters. • Changes is compatible for BAPIs, IDocs and released remote-enabled function modules. Business Value • Alpha numeric material numbers can now be created as per the requirement of the client. ` • Material number field length is only 18 digits. ` In ECC
  • 35. Foreign Trade fields in Material Master In S/4 HANA • The Foreign Trade functionality as part of Sales & Distribution is not available within SAP S/4HANA. The functional equivalent in SAP S/4HANA is SAP Global Trade Services (GTS). • The below mentioned fields for Letter of Credit/ Legal control/ Export control/ Preference management in Foreign Trade is supported by GTS from S/4HANA and not through Material Master: • CAP product list no. (MARC-MOWNR) • CAP prod. group (MARC-MOGRU) • Preference status (MARC-PREFE) • Vendor decl. status (MARC-PRENE) • Exemption Certificate (MARC-PRENC) • Exemption Cert. No. 9 (MARC-PRENO) • Issue date of expiry certificate (MARC-PREND) • Military goods (MARC-ITARK)
  • 36. MRP fields in Material Master In S/4 HANA • SAP S/4HANA simplification is done on the following tabs in transaction MM01/02/03. • Lot Size data in MRP1 Tab: o Unit of Measure Group (MARC-MEGRU) • Procurement in MRP2: MRP considers quota arrangements always, henceforth it is not required to switch it on in the material master. o Quota arr. usage. (MARC-USEQU) • BOM explosion /dependent Requirement tab in MRP4 o Selection Method (MARC-ALTSL) • Repetitive manufacturing /assembly /deployment strategy tab of MRP4 o Action control (MARC-MDACH) o Fair share rule (MARC-DPLFS) o Push distribution (MARC-DPLPU) o Deployment horizon. (MARC-DPLHO) • Storage Location in MRP4 o SLoc MRP indicator (MARD-DISKZ) o Spec.proc.type SLoc (MARD-LSOBS) o Reoder Point (MARD-LMINB) o Replenishment qty. (MARD-LBSTF) • Also the backend database fields for these "omitted functionality" remains existing in the system.
  • 37. Material Type SERV In S/4 HANA • Material type "SERV" for services is introduced for Product Master in S/4HANA for simplification purposes . • Material type SERV, some fields and departments that are irrelevant in S/4 are hidden from the screen. This gives all transactions relevant for material master, a leaner and simplified look. •A new material type SERV (Service Materials) is created with reduced user departments and fields in the classical transactions: MM01/MM02/MM03. • Supported user departments : Accounting, Purchasing, Basic Data and Sales. • The other user departments are hidden for Material Type “Service Materials”.
  • 39. Why Simple Finance ?? • SAP S/4 HANA is minimizing the redundancy and complexity of existing system by consolidating multiple tables into single table. Example: Earlier there are two tables for document header and for line items, now those are consolidated. Importance- Simple finance come across the following constraints in ECC: •On time closure of financials •Easy way of reporting •Cloud storage, Cloud computing •Access the data from multiple sources like ( PC / Tab and even from mobiles) •Easier way of reconciliation between finance and controlling by introduction of secondary cost elements as GL’s. •GL creation (FS00) ends up with cost element creation. Cost element screen now available in FS00 itself. •Accounting based COPA now its easier at the same time we can use costing based COPA also. `
  • 40. 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. Example of massive simplification : SAP Accounting powered by S4 HANA Stability Flexibility Pre defined aggregates FI Document CO Document Total and Indices Financial Accounting Total and Indices Management Account Processing Analytics Logisitics Document Stability Flexibility Processing Analytics Logisitics Document FI Document CO Document Aggregation on the fly via HANA views From… To… Logical Document
  • 41. •Example on How Account based COPA is easier by using simple finance? Currently COPA data is storing in COEP table and it contains multiple tables like CE1XXXX, CE2XXXX, CE3XXXX, CE4XXXX, now all the data will be stored in a single table named ACDOCA. It is easier to build reports using the ACDOCA Table. Secondary cost element as a GL Account:
  • 42. Replaced Transaction codes and programs in FIN In S/4 HANA Old Functionality Type New Functionality Type Text FS01 TA FS00 TA Create G/L Accounts FS02 TA FS00 TA Change G/L Accounts FS03 TA FS00 TA Display G/L Accounts CK11 TA CK11N TA Create Product Cost estimate CK13 TA CK13N TA Display Product Cost estimate CK41 TA CK40N TA Create Costing Run CK42 TA CK40N TA Change Costing Run CK43 TA CK40N TA Display Costing Run CK60 TA CK40N TA Preselection for Material/Plant CK62 TA CK40N TA Find Structure: BOM Explosion CK64 TA CK40N TA Run: Cost Estimate of Objects CK66 TA CK40N TA Mark Run for Release CK68 TA CK40N TA Release Costing Run CK74 TA CK74N TA Create Additive Costs KB11 TA KB11N TA Enter Reposting of Primary Costs KB21 TA KB21N TA Enter Activity Allocation KB31 TA KB31N TA Enter Statistical Key Figures KB33 TA KB33N TA Display Statistical Key Figures KB34 TA KB34N TA Reverse Statistical Key Figures KB51 TA KB51N TA Enter Activity Posting KE21 TA KE21N TA Create CO-PA line Item KE23 TA KE24 TA Display CO-PA line item KKE1 TA CKUC TA Add Base Planning Object KKE2 TA CKUC TA Change Base Planning Object KKE3 TA CKUC TA Display Base Planning Object KKEC TA CKUC TA Compare Base Object - Unit Cost Est KKED TA CKUC TA BOM for Base Planning Objects KKB4 TA CKUC TA Itemization for Base Planning Obj. KKBF TA KKR0 TA Order Selection (Classification)
  • 43. Replaced Transaction codes and programs in FIN In S/4 HANA Old Functionality Type New Functionality Type Text KKPHIE TA CKMDUVMAT/CKMDUVACT (Distribution) TA Cost Object Hierarchy KKP2 TA CKMDUVMAT/CKMDUVACT (Distribution) TA Change Hierarchy Master Record KKP4 TA CKMDUVMAT/CKMDUVACT (Distribution) TA Display Cost Object Hierarchy KKP6 TA CKMDUVMAT/CKMDUVACT (Distribution) TA Cost Object: Analysis KKPX TA CKMDUVMAT/CKMDUVACT (Distribution) TA Actual Cost Distribution: Cost Obj. KKPY TA CKMDUVMAT/CKMDUVACT (Distribution) TA Actual Cost Distribution: Cost Obj. RAGITT01 PROG S_ALR_87011990 TRAN Asset History Sheet FAGL_FC_VAL TA FAGL_FCV TRAN Foreign Currency Valuation S_E38_98000088 TA Profit Center Group: Plan/Actual/Dif FIORI Profit Center - Plan/Actual (Fiori-ID: F0926; Query: /ERP/SFIN_M01_Q2701) S_E38_98000089 TA Profit Center Group: Plan/Plan/Actual FIORI Profit-Center - Plan/Actual current year (Fiori-ID: F0932; Query: /ERP/SFIN_M01_Q2702)
  • 44. Asset Accounting In S/4 HANA • New G/L accounting gets automatically activated, if currently classic G/L accounting is used. • Actual values from tables ANEP, ANEA, ANLP, ANLC are saved in table ACDOCA in new Asset Accounting. The values from table ANEK are saved in tables BKPF and ACDOCA in new Asset Accounting. Postings are still made to table BSEG. • Statistical data and plan data: o Statistical values (for example, for tax reasons) from tables ANEP, ANEA, ANLP and ANLC, are saved in new Asset Accounting in table FAAT_DOC_IT. o Planned values from tables ANLP and ANLC are saved in table FAAT_PLAN_VALUES in new Asset Accounting.
  • 45. Asset Accounting : Parallel Valuation and Journal Entry In S/4 HANA • Can map parallel valuations with ledger approach or accounts approach. A mixture of two is not supported (ledger with accounts approach). • One can record the leading valuation of Asset Accounting in any depreciation area of new Asset Accounting. It no longer necessary to use depreciation area 01 for this. The system now posts both the actual values of the leading valuation and values of parallel valuation in real time. •Delta depreciation is no longer required and supported. • One can post in real time in all valuations (for all accounting principles). • One can track posting of all valuations without taking into account the postings of leading valuation as was the case in Asset Accounting. • Asset Accounting is based on Universal Journal Entry, so no redundancy of any data store. • Reconciliation postings are no longer necessary with closing operations as General Ledger Accounting and Asset Accounting are reconciled permanently anyway due to the universal journal entry. • The hitherto existing periodic posting run for APC values is redundant. • Postings for group assets are redundancy-free.
  • 46. Asset Accounting : Parallel Valuation and Journal Entry In S/4 HANA • The migration must take place at a time when only one fiscal year is open in Asset Accounting. Once migration is completed, you are not allowed to open any fiscal year again that occurred before the migration in Asset Accounting. • You cannot reverse documents that were created before the conversion from classic to new Asset Accounting. Instead, you have to make an inverse posting. • It is not possible to reverse integrated asset postings that were posted in new Asset Accounting in SAP enhancement package 7 for SAP ERP 6.0, SP02 or higher and were migrated. Instead, you have to make an inverse posting. • If until now you updated transactions in parallel valuations with different fiscal year variants and want to continue using this update, then you must implement a new representative ledger using the SAP General Ledger Migration Service. • It may no longer be possible to process worklists that have been created before the changeover to the new Asset Accounting. This involves worklists that create transaction data (however, not master data changes), such as worklists for retirement without revenue, retirement with revenue, intercompany asset transfer, and impairment posting. You should therefore either process these worklists before you activate the Customizing switch, or create them again once you have activated new Asset Accounting. • New transactions : AB01L, ABAAL, ABAKL, ABAOL, ABAVL, ABAWL, ABGFL, ABGLL, ABIFL, ABMAL, ABMRL, ABNAL, ABNEL, ABNKL, ABSOL, ABSTL, ABUML, ABZEL, ABZOL, ABZPL, ABZUL . • Obsolete transactions : ABSO_OLD, ABST, ABST2, ABSTL, ABUB, AW01_AFAR, ABF1, ABF1L, AJRW, OASV, AB02, ASKB, ASKBN, ABB1, ABMW and ABCO.
  • 47. Cash Management In S/4 HANA • Centralized bank account management is supported. • Bank accounts can be replicated via IDoc to other systems. •Fuzzy search for bank accounts. • Attachments • FIORI apps applicable. •Bank hierarchy based on Business Partners. • Data Integration with MM& SD • Liquidity Forecast •Actual cash flow and cash flow detailed analysis. • Maintaining house bank accounts not available. Business Value • Flexibility • End-to-End process of monitoring bank statements imports, checking cash position and transferring fund to handle surplus and deficit. • Medium term liquidity forecast and rolling plans of long term liquidity. • Centralized bank account management, with which business users can manage bank accounts as master data with more business attributes. ` • Create Bank : FI01 • Change Bank : FI02 • Display Bank : FI03 • House Bank / Account : FI12 • Business Partner (Role TR0703) : BP • Transaction codes : FF63, FF65, F110, F111. ` In ECC
  • 48. Controlling In S/4 HANA • Creation of cost estimates with reference to base planning objects is not supported. • Use transaction CKECP to prepare ad-hoc cost estimates and CKUC to prepare multilevel material cost estimates where BOMs and routings are not available for material in question. • Currently using base planning objects to store cost estimates that can be included in cost estimates for projects, SO and so on as items of type Base planning objects. ` In ECC
  • 49. Technical changes in Material Ledger with Actual Costing Business Value / S4 HANA • Reduce complexity and improve runtime in Material Ledger Costing Cockpit for Actual Costing. • Separate process steps like Single level price determination, Multilevel price determination, Revaluation of Consumption, WIP Revaluation are merged to one process step called Settlement. • New 2-dimensional distribution logic to avoid rounding errors. • Less “Not distributed” values. • No lock conflicts caused by material movements (in current period). • Change of standard price for materials and activities within the period is supported. • Separate currency customizing of Material Ledger (Tx OMX2/OMX3) is obligatory. • No default Material Ledger type ‘0000’ anymore.
  • 50. Technical changes in Material Ledger with Actual Costing (contd..) Business Value / S4 HANA • It is not allowed to use a ML Type that references to currency settings defined in FI or CO (flags ‘Currency Types from FI’ resp. ‘Currency Types from CO’). Instead you have to define explicitly the currency and valuation types that are relevant for Material Ledger. • The new Material Ledger Document tables MLDOC and MLDOCCCS replace most former periodic tables (MLHD, MLIT, MLPP, MLPPF, MLCR, MLCRF, MLKEPH, CKMLPP, CKMLCR, MLCD, CKMLMV003, CKMLMV004, CKMLPPWIP, CKMLKEPH) • The design of tables MLDOC/ MLDOCCCS allows storing both line item and aggregated data. • Single- and multilevel differences are no longer distinguished. In table MLDOC all price/exchange rate differences are stored in fields PRD/KDM. In table MLDOCCCS the CCS for price/exchange rate differences are stored under the CCS types E/F (field MLCCT). • The CCS is stored in a table format using the cost component (field ELEMENT) as additional key. This allows increasing the number of cost components without modification.
  • 51. Technical changes in Controlling Business Value • Total records for primary and secondary costs have been removed and universal journal includes all actual cost postings, both primary and secondary. • For primary postings, all general ledger items with assignment to cost centers, orders, WBS etc are treated as one data record which is enriched with relevant profit center, functional area etc. • For secondary postings, all sender- receiver relationships that are triggered by allocations, settlement are captured in universal journal along with partner profit centers, functional area etc. • Actual data of COEP (WRTTP=’04’) is now stored in ACDOCA. • Actual statistical data of COEP (WRTTP=’11’) is stored in ACDOCA using additional columns and in COEP for compatibility access. • Actual data needed for long term orders/projects from COSP_BAK, COSS_BAK is stored in table ACDOCA. • COBK is written as before. • Access to old data in tables is still possible via the views. ` In S/4 HANA
  • 52. Profitability Analysis Business Value • The universal journal (ACDOCA) is heart of Accounting and includes all Profitability Analysis (CO-PA). • All revenue and cost of goods sold postings are automatically assigned to relevant CO- PA characteristics at time of posting. • Automatic derivation of CO-PA characteristics can reduce number of settlements and allocations to be performed at period close and provide real time visibility into spending during the period. • No reconciliation issues between G/L and Profitability Analysis. • COGS postings are captured at time of GI from WH. Splitting of COGS posting to multiple accounts is possible. • Production order variances can be split to multiple accounts to separate scrap, price variances, quantity variances etc. In S/4 HANA /
  • 53. Currencies in Universal Journal In S/4 HANA • Central currency configuration for universal journal. • Combined view cluster for ledgers and currencies, tx FINSC_LEDGER. • Second and Third parallel currencies of FI (BSEG-DMBE2 or BSEG-DMBE3) correspond to 2 amount fields of KSL-GSL according to config in tx FINSC_LEDGER. • Table BSEG will not be extended and still contains only 3 parallel currencies. • Currency types in customer name space are not allowed as BSEG relevant currency. Business Value • All journal entry items are converted in accounting interface for all configured currencies, regardless of source where the business transaction originates from. ` • There are 3 parallel currencies in FI (T001A/ tx OB22) and 2 parallel currencies in CO (TKA01/ tx OKKP). • The currencies of non leading ledgers in NewGL (T882G) were a subset of currencies in leading ledgers (T001A). • One of CO currencies needed to be local currency (CT 10), but it was not necessary that the other currency in CO was also configured in FI. ` In ECC