S4 HANA Finance

HANA – High Performance Analytical Appliance.

What is diff. b/w ECC and SFIN?

- SAP Does not have its own data base

- SAP ERP depends on 3rd party data base
Eg: ECC Run on Oracle, My SQL DB…. etc.
- Now SAP developed its own data base called as HANA DB
- S4HANA – Run on HANA DB.

What is HANA?

Hana is In Memory DB means that data is read from memory. It read data much faster

In Memory means – in means data restores in RAM, no more on hard disk.

- All calculation on your data can be done at RAM level only. This concept is called
as real time calculation or ON FLY calculation.

HANA column-based tables provide faster access.

Multicore CPU

- core means a processing unit/ device

- Core execute your request, may be in 1 nano seconds.
- We have various cores in market Eg: single core, dual core and multicore.
- SAP HANA uses 64-bit core processing unit.

Tables changes?

“ACDOCA” into single line item table called as Universal Journal.

“MATDOCA” is also new line item table for inventory management. Material document
will be stored in MATDOCA table but not in MKPF &MSEG.

GL Master data?

ECC We are creating GL & Cost Elements separate transaction codes.

S4Hana we are creating both GL & CE in FS00

New filed Is been added in GL account type

- Balance sheet account

- Non – Operating Exp & Incomes
- Primary and Revenue
- Secondary Cost

Business partners?
All the customer and vendor need to integrate as business partners, sap is trying to align
the concept SCM like APO, EWM, TM etc. as integrated with future release.

Extension Numbers?

Material number can be now 40 characteristics from existing 18.

Ledger functionality
Extension ledgers?

In SFIN they are two types

1. Standard ledger
2. Extension ledgers (Appendix ledger)

Standard Ledger: contain a full set of journal entries for all business transactions (OL, L1,
&L2)

Extension: an extension ledger is assigned to standard ledger & in hearts all journal
entries of reporting posting made explicitly to an appendix ledger but not under laying
standard ledgers.

“this concept can be used to avoid duplication of journal entries it many business
transaction are valid for both ledger and only few adjust required in appendix ledger.

Limitation of extension ledger

- The extension ledger is not applicable for the asset accounting

- And not applicable for period and programs
- We cannot assign extension ledgers to logistics

Note: extension ledger we can use only for manual FI JV postings

The base ledger gets assigned to COD.

Simulation ledger
it is updating entry when you are executing the FAGL_FCV POSTING
It updates to simulation postings only (statistical postings)
this functionality only for Extension ledger not possible your std. ledger
simulation ledger is used to post FCR in the simulation purpose mode only
simulation test mode we can Run 'N' no. of times, it only posts the diff amount i.e.
incremental or Decremental.

Addition feature in S4 line items

ECC – 999 line item’s we can post per documents

S/4
FI – we can have one document maximum 6digit line item (999999) document we can post
in ACDOCA table. 999 in BSEG table.
CO - maximum 999-line items we can post
FAGL_BSBW_HISTSM = SIMULATION data store in this table

Journal entry header and line item table updates

- BKPF for header table

- ACDOCA for line item table

Asset accounting changes

ECC Classical asset accounting drawbacks

- Maximum 1 deprecation are in Real Time Dep. Area

- Remaining dep. It will update period & postings.
- Not possible to get the asset details at the line item level. While posting dep. At
other period and Transaction.
- Not possible to post the dep. If any single asset having error.
- We are using repeat mode or restart mode.

S/4 Hana

- We can have more then on dep. Area post real time Dep. Area
- Real time updating for all dep. Areas need not to wait till period end post to all
dep. Areas.
- No more Reconciliation a/c required for b/w FI&AA
o Do to Universal journal (ACDOCA), same universal document it is used to
update the FI and Asset a/c.
- We can post the dep. Even though few assets having errors.
- We can run Dep. Multiple times (only system will post diff. amount)
- Possible to get asset details at the FI document line item level.
- Dep. Program modify in the new asset a/c. better performance for executing the
program.

New Asset accounting

- Each account wise line item generates the AA document

- Simplified Dep. Program in S/4 Hana
o We can Run the Dep. Number of times in one period.
- If have 1 asset getting 1 error that asset skip & another asset run the Depreciation.

** Technical clearing account?

Technical clearing account is balance sheet (reconciliation a/c) GL account. Which is not
part of AO90. It is an intermediate GL account (always technical clearing account is
‘ZERO’

For an integrated asset acquisition posting the system divides into an operational part a
valuation part.

- ECC not required technical clearing account

Eg: ECC6.0 at the time of Asset acquisition posting

 Dr. Asset 1,00,000 (ledger specific document)
Cr. Vendor 1,00,000 (Operational document)
Each Dep. Area it will update and each ledger also it will update

- ECC new asset account and as well as s/4 Hana required technical clearing account
- New AA transaction it will split the two parts
o Operational Document
o Ledger specific document
1. Operational Document: It will used to update the subsidiary ledger
(Debtors/Creditors)
2. Ledger Specific Document: it will post the ledger specific document it updates
each ledger wise.

Operational Document

Dr. Technical clearing account (it will update all ledgers)

Cr. Vendor ‘X’ (it will update 2 diff document)

Ledger Specific document

OL - IAS L1 - IFRS L2 - USGAP

Dr. Asset Dr. Asset Dr. Asset
Cr. Technical clearing Cr. Technical clearing Cr. Technical clearing
a/c a/c a/c

Final entry Final entry Final entry

Dr. asset Dr. asset Dr. asset
Cr. Vendor Cr. Vendor Cr. Vendor

Controlling

1. Cost element accounting

In ECC we have primary and secondary cost element create separate transaction codes.

In ECC we used for FI-CO reconciliation

- Real time basis

In S4 Hana – secondary cost element which part of GL account.

- All CO postings which part of the FI postings.

- All Co postings it’s updating to GL accounts.

Advantage

- Not required any CO-FI reconciliation

- No more separate documents
- Part of the GL account – secondary cost element category
- There is no separate master data FI&CO
Finance General

1. Totals and application index tables were removed ( exist as views) and theses are
replaced by the Universal journal ACDOCA table.

In S/4 HANA – ACDOCA table

This is a compatible table which provides all  CO,AA, and other cost object information in one
table.

1. Certain transaction codes and programs in the application areas, have been replaced
with newer transactions, programs, or WebDynpro applications.

Eg: FAGL_FC_VAL  – Foreign currency valuation  has replaced by FAGL_FCV

In ECC
In S/4 HANA

Refer to SAP Note 1946054 for more details.

FI- GL

1. If migrate from ECC to S/4 HANA, can migrate Ledgers of New General Ledger of the
Business Suite or the Classic General Ledger GL to the Universal Journal in S/4HANA.
But the number of Ledgers and the configuration of its currency will stay; it is not
possible to introduce new ledgers or new currencies during the migration to S/4 HANA.

If Classic General Ledger was used, the ledger ’00’ is migrated to the new leading ledger ‘0L’ 
of the universal journal.

2.  SAP controlling (CO) is now part of the universal journal. It creates only one document in
FI.               During FI posting document carries both FI and CO information with single source
of truth.

Eg: Following shows the MM- MIGO financial document.

In ECC
In S/4 HANA  ( In S/4 HANA material ledger activation is a mandatory requirement, therefore
material ledger document get generate for each material related transaction. )

3. There is no longer a need for CO Realtime integration for transfer of secondary CO postings
to New GL or the Reconciliation Ledger of Classic GL.

In ECC
In S/4 HANA
 1. Currencies
In ECC In S/4 HANA

There used to be up to 3 parallel currency configuration depends on

currencies in FI, T-code: OB22 the universal journal ledgers, there
is a common place to define ledger
2 parallel currencies in CO. T- and currency. T-code:
code : OKKP FINSC_LEDGER
 The currencies of non-leading
ledgers in NewGL, were a subset of
the currencies in the leading
ledger.

One of the CO currencies needed to
be the local currency, but it was
not necessary that the other
currency in CO was also configured
in FI.
With the universal journal and the
common line item table ACDOCA for
FI and CO, there is also a central
currency configuration for the
universal journal.

Financial Accounting (New ) à Financial Accounting Global Settings (New) à Ledgers à Ledger
àDefine Settings for Ledgers and Currency Types.

In ECC
CO currency setting in ECC

In S/4 HANA
In ledger can have 8 freely defined additional currencies (total 10)

       5. Other than parallel ledger can have appendix ledgers. Appendix ledger for delta
postings.

6.An additional column appears in Transaction OB52 (opening and closing periods) for postings
from Controlling to Finance, (although you still need OKP1 at Controlling Area level).
In S/4 HANA

FI- AP

1. FK01 is now not in used. Now need to create vendor using BP ( Business Partner )
creation role.

In ECC – FK01
In S/4 HANA – BP
FI-AR

1. Credit Management now with FSCM , Other than creating the credit controlling area,
need to define credit segments and assign it to BP role.

In ECC – FD32

In S/4 HANA
Configuration : FSCM à Credit Management à Master Data à Create Credit Segments

Transaction : BP – Role UKM000. Define Credit limit information.

FI-AA

1. Actual data of ANEK, ANEP, ANEA, ANLP, ANLC is now stored in table ACDOCA. ANEK
data is stored in BKPF.
2. Execute mandatory application configuration steps related to Asset Accounting. IMG -> Asset
Accounting New à Migration: Asset Accounting New à Adjust parameters of chart of
depreciation

Once configured the chart of depreciation, Adjustment of parameter of the chart of

depreciation need to be executed.
3. Asset Accounting Parallel Valuation

Important part of new Asset accounting is parallel valuation in multicurrency environment.

The leading valuation can be recorded in any depreciation area. The system now posts both
the actual values of the leading valuation and the values of parallel valuation in real time.

New Asset Accounting makes it possible to post in real time in all valuations (that is, for all
accounting principles).

In ECC

In S/4 HANA

4. Define Technical Clearing Account for Integrated Asset acquisition

For an integrated asset acquisition posting, the system divides the business transaction into an
operational part and a valuating part. To split the business process in an operational and a
valuating document parts there need to be established the “technical clearing account” for
integrated asset acquisition.

Operational Entry

For the operational part (vendor invoice), the system posts a document valid for all accounting
principles against the technical clearing account for integrated asset acquisitions. (ledger-
group-independent document)

Dr Technical clearing

CR Vendor

Valued Entry

For each valuating part (asset posting with capitalization of the asset), the system generates a
separate document that is valid only for the given accounting principle. This document is also
posted against the technical clearing account for integrated asset acquisitions.

( ledger-group-specific documents for each accounting principle )

DR Asset

CR Technical clearing

In S/4 HANA

Asset acquisition posting

5. Simplified depreciation run (AFAB )

Accounting principle specific posting is possible using new depreciation run.

In ECC
In S/4 HANA

Settlement rules can also be ledger specific if required

6. Statistical postings– instead of statistical cost elements with cost category 90 there is now a
special field in the GL account master record is there only in fixed asset and material
reconciliation accounts to record this in controlling area.  ( Record account assignment. )

In ECC
In S/4 HANA
7. Asset cut over migration:

In S/4 HANA, Asset transaction data is posted through ABLDT, it updates Assets Accounting and
General Ledger Accounting at the same time; due to this, no reconciliation issues occur.

In S/4 HANA

Step 1: Upload only Master Data using the transaction code AS91.

Step 2 : Upload Asset Historical Values, Accumulated Depreciation and Depreciation for the
year using the transaction code ABLDT. In  doing this universal journal entry is posting to the
fixed asset.
Step 3: Upload current year acquisitions using the transaction code AB01.

BAPI : BAPI_FIXEDASSET_OVRTAKE_CREATE, can be used for data upload.

In ECC

In ECC transaction data was getting posted separately in Assets Accounting through :

a.  AS91

b. General Ledger Accounting through OASV/FB01.

8. Planned depreciation values will get updated in real time as on when there is a change in
the asset master data. No need of executing plan depreciation separately.

9. There is no separate balance carry forward needed in asset accounting, the general ledger
balance carry forward transaction FAGLGVTR transfers asset accounting balances.

The program Fixed Assets-Fiscal Year Change  transaction AJRW is no longer has to be
performed at fiscal year change.

In ECC
In S/4 HANA

FI- BL

1. Fiori App use for Bank configuration

The following transaction codes are replaced by the new Fiori app Create House Bank, Manage
Banks, which can be accessed from the Fiori Launchpad.

 Create Bank: FI01

 Change Bank: FI02
 Display Bank: FI03

Now can maintain banks hierarchies based on bank business partners , overdraft limits,
signatories and approvals flow and additional reporting such as the foreign bank account
report.

Bank accounts can download and uploaded through Excel in different SAP clients (Development
to Production).
In ECC

FI –>  Bank Accounting –>  Bank account –> Define House bank

In S/4 HANA
Data Migration Technology

In S/4 HANA for cut over data migration and for other data migrations, SAP has introduced a
new functionality. That is LTMC, (web dynpro)  SAP S/4 HANA Migration cockpit for data
uploads.

The use of LSMW for data load to SAP S/4HANA is not recommended, hence an SAP Migration
cockpit can be used for migrations. But still you can use LSMW based on your preference.
It provides predefined Microsoft Excel templates which can be downloaded, filled with data,
and uploaded to SAP S/4HANA.

Before starting, web service needs to be activated through the T-code SICF.

Refer SAP Note 2481235 for more details.

User Interface

Fiori Launch Pad with Fiori Apps for most of the standard T-codes.
I wrote this blog post to share my knowledge with you. So, if I have missed anything interesting
or important, feel free to add those in the comment box. Hope this will help all the finance
and non-finance SAP consultant to get an idea on the new features in S/4 HANA.