3RD POINT - IT IS NOT POSSIBLE TO RUN SAP S4HANA ON ANY 3RD PARTY

DATA BASE. SAP S4HANA WILL WORK ON ONLY SAP HANA DATA BASE. IT IS
BUILD UP ON IN MEMORY PLATFORM I.E. DATA IS DIRECTLY STORED IN RAM.

4TH POINT- SINGLE SOURCE OF TRUTH - IN SAP ECC THERE WAS

RECLCULATION ISSUE. WHY THERE WAS A RECALCULATION ISSUE? BECAUSE FI-
CO IS TWO DIFFERENT COMPONENTS. FI HAS DIFFERENT TABLES AND CO HAS
DIEERENT TABLES. AT THE MONTH END FI TABLES ARE SHOWING SOME OTHER
RESULTS AND CO TABLES ARE SHOWING SOME DIFFERENT RESULTS. NOW BOTH
CAN NOT BE TRUE. EITHER FI SHOW CURRECT PICTURE AND CO IS WRONG. OR
CO IS GIVING CORRENT PICTURE FI IS WRONG. WE NEED TO FIND OUT WHAT IS
TRUTH. BECAUSE THERE ARE 2 SOURCES OF DATA.

1
NOW WHEN FICO ARE MERGED TOGETHER WHEN ONLY ONE TABLE IS HOLDING
FI DATA AND CO DATA - THAT TABLE IS CALLED SINGLE SOURCE OF TRUTH.
BECAUSE WE DO NOT NEED TO FIND OUT WHAT IS TRUTH AND WHAT IS FALSE.
EVERYTHING WHAT IS AVAILABLE IN THAT TABLE IS TRUTH. NOW THERE IS NO
QUESTION OF FI IS TRUTH OR CO IS TRUTH - THERE IS ONLY ONE PLACE WHERE
FI AND CO IS STORED AND THAT TABLE IS CALLED A SINGLE SOURCE OF TRUTH.
THAT IS CALLED ACDOCA TABLE. WHICH ALSO CALLED AS UNIVERSAL JOURNAL
TABLE.

REAL TIME PROCESSES-

EARLIER WE ARE GETTING OUTDATED REPORT BECAUSE WE ARE USING SAP ECC
WE ARE NOT ABLE TO GENERATE GRAPHICAL REPORT. PIE CHART, BAR CHART
LIKE REPORTS ARE NOT AVAILABLE IN ECC. IT WAS ONLY POSSIBLE IF WE MOVE
THE DATA FROM ECC TO BW AND BW AND BI PERFORM THOSE REPORTS. THOSE
ARE OUT DATED REPORT.

IN SAP S4HANA THERE IS SOMETHING CALLED AS EMBEDED BW. EMBDED BW

MEANS THERE ARE SOME FEATURES OF BW WHICH DIRECTLY AVAILABLE IN THE
CORE SYSTEM. DO NOT NEED TO MOVE THE DATA FROM ECC TO BW. IN THE
SAME CORE ECC OR S4HANA YOU CAN SEE GRAPHICAL REPORT LIKE PIE CHART
OR BAR CHART EVERYTHING AVAILABLE IN THE INGLE PLATFORM. BECAUE OF
THIS EMBEDED ANALAITICS YOU CAN ACTUALY GENERATE YOUR BW REPORTS
DIRECTLY IN THE LISTS. IT IS REAL TIME BECAUSE EARLIER BW WAS SEPERTE
SYSTEM - ECC WAS SEPERATE SYSTEM. NOW ECC AND EMBDED BW BOTH ARE
AVAILABLE IN SINGLE BOX OF S4HANA. SO YOUR TRANSACTIONS ALSO DONE IN
SAME SYSTEM. AND REPORTING ALSO PRINT FROM SAME SYSTEM.
THAT IS NOTHING BUT REAL TIME PROCESSING.

DYNAMIC PLAINNING AND ANALYSIS

PLAINING AND ANALASIS BOTH WILL BE HAPPENING FROM SINGLE SYSTEM.
EARLIER PLAINING ARE HAPPENING FROM BPC SYSTEM AND ACTUALS ARE
HAPPENING FROM ECC SYSTEM. NO NEED TO MOVE THE DATA FROM ECC TO BPC.
NOW THAT I NOT REQUIRED - EVERTYTHING IS AVAILABLE FROM ONE COMMON
SYSTEM.

IN SORT IN SAP S4HANA WE HAVE SINGLE SOURCE OF TRUTH MEANS ONE

SINGLE TABLE GIVE YOU COMPLETE PICTURE. WE HAVE EMBEDED BW FOR
WHICH WE DO NOT NEED TO GO OUT FOR GRAPHICAL REPORT. WE CAN
GENERATE GRAPHICAL REPORTS ITSELF. EVEN YOU WANT TO PERFORM ADVANCE
PLAINING WHICH WAS EARLIER DONE OUTSIDE ECC BOX AND EVEN THAT CAN BE
DONE IN SAME BOX. THAT IS WHOLE IDEA FOR WHY S4HANA BETTER COMPARE
TO TRADITIONAL ECC SYTEM.

SAP S4HANA PROVIDES MODERN AND SIMPLIFIED USER EXPERIENCE OPTIMIZED

FOR ALL DEVICES. THIS NOTHING BUT SAP FIORI. SAP FIORI PROVIDE YOU
BETTER EXPERIENCE - YOU CAN ABLE TO SIMPLIFIED SCREEN COMPARE TO
USING OLDER SCREEN SAY SAP ECC. THIS SCREEN CAN BE USED ON ALL DEVICES.
WE CAN USE IT ON MOBILE, WE CAN USE IT ON TAB, LAPTOP, DESKTOP. IT IS
NOT NECESSARY TO SET INFRONT OF LAPTOP OR DESKTOP. NOT SAYING THAT
ALL THE TRANSACTIONS WHICH YOU DO ON COMPUTERS AND LAPTOPS CAN BE
DONE ON MOBILE AND TABS - AT LEAST THE BASIC TRANSACTIONS THERE DO
NOT NEED MUCH OF DATA ENTRY EXAMPLE SAY YOU WANT TO APPROVE
2
SOMETHING OR REJECT SOMETHING OR THERE SOME REPORTS LIKE DASHBOARD
- YOU WANT TO SEE THE SALES OF MY COMPANY. YOU DO NOT NEED TO GO SAP
SYTEM AND LOGON - USER ID AND PASSWORD AND GO TO DIFFERENT REPORTS
AND PERFORM THE ANALYSIS. THAT IS WE CAN EXPECT BY USING SAP FIORI.

REDUCES THE DATA FOOTPRINT OF YOUR COMPANY BY REMOVING THE

AGGREGATES:-

OUT OF 600 GB JUST CAME TO AROUND 42 GB IN S4HANA.

WHAT IS THE BENEFIT OF REDUCING THE DATA - FOR WORK FAST. REDUCTION
IN THE DATA BASE SIZE TRANSACTION WILL PERFORM FASTER. AT THE SAME
TIME IT WILL ALSO SAVE THE COST.

CHOICE OF DEPLOYMENT

IN SAP ECC THE MAJOR PROBLEM OF THE CUSTOMER WE ARE IMPLEMENTING SAP
FOR THE FIRST TIME. FIRST THING WE NEED TO DO THAT NEED TO PURCHASE
THE COSTLY HARDWARE. NEED MULTIPLE SERVERS - MULTIPLE NETWORKING
DEVICES -ON TOP OF THAT ALSO NEED A TEAM OF BASIS CONSULTANT ,
NETWORK CONSULTANTS - WHO WILL BE TAKING CARE OF THE HARDWARE.
THAT IS THE REASON MANY MEDIUM SIZE CUSTOMER WHO ARE FINDING SAP
VERY COSTLY. SOFTWARE COST IS NOT VERY MUCH BUT HARDWARE,
NETWORKING, OTHER PEOPLE MANAGEMENT ALL THE THINGS THAT SAP WILL BE
VERY COSTLY THAT IS THE REASON THEY ARE GOING FOR OTHER CLOUD
SYSTEM.
NOW SAP DO NOT WANTED TO LOSE THOSE CUSTOMERS - WITH CLOUD OPTION
SMALL AND MEDIUM CUSTOMER NOW CAN OK FOR GOING SAP S4HANA.

3
4
5
=============================================

THE CAPABILITY OF STORED DATA IN RAM IS CALLED IN MEMORY DATA BASE.

TRADITIONAL DATA BASES STORED THE DATA IN HARD DISK. NOW THE SIMPLE QUESTION :-
WHAT IS THE DIFFERENCE BETWEEN RAM AAND HARD DISK.

WHEN WE REPLACE THE DATABASE FROM ORACLE TO HANA - (SAME TABLES WILL BE USED)
- BUT VERY IMPORTANT THING HERE IS DATA WILL BE STORED IN THE COMPRESSED FORM.
IF WE ARE USING THE HANA DATABASE - HANA DATABASE STORED THE DATA IN THE
COMPRESSED FORM.

6
ONLY 50/20 GB OF DATA CAN STORED IN RAM.
HOW MUCH DATA TO STORE IN RAM?
ANSWER IS - WHAT DATA YOU NEED ON DAY TO DAY REPORTING.
THE DATA NEED DAY TO DAY BASIS ONLY KEEP IN RAM. OTHER DATA STORED IN HARD DISK.

ONLY 50/20 GB OF DATA CAN STORED IN RAM.

HOW MUCH DATA TO STORE IN RAM?
ANSWER IS - WHAT DATA YOU NEED ON DAY TO DAY REPORTING.
THE DATA NEED DAY TO DAY BASIS ONLY KEEP IN RAM. OTHER DATA STORED IN HARD DISK.

7
SAP S/4HANA CLOUD PROJECT SERVICES ADITION AND SAP S/4HANA -
YOU WILL BE ONLY GETTING THE MODULE RELATED - TO PROJET RELATED -
PROJECT BASE ORGANISATION.

SAP S/4 HANA CLOUD MARKETTING EDITION - YOU WILL BE ONLY GETTING
THE MODULES WHICH ARE RELATED FOR MARKETTING FOR ORGANISATIONS.

SAP S/4 HANA, CLOUD ENTERPRISE EDITTION- IF YOU WANT TO GO FOR

ALL MODULE THEN GO WITH THIS OPTION. FULL FUNCTIONALITY AVAILABE IN
THIS OPTION.
8
SAP S/4 HANA, CLOUD ENTERPRISE EDITTION IS COSTLY COMPARE TO OTHER
TWO OPTIONS.

9
10
WHAT IS THE TERM TO MOVE THE DAT FROM RAM TO HARD DISK?

WHENEVER WE ARE IMPLEMENTING SAP HANA DATABASE (NOT S4HANA).

WHENEVER CUSTOMER USE TRADITIONAL DATABASE AND WANT TO MIGRATE SAP HANA -
THERE IS SOMETHING CALLED AS DATA SIZING. TECHNICAL CONSULTANT WILL PERFORM
THE DATA SIZING. WHAT EXACTLY SIZING? THEY WILL RUN ONE PROGRAM IN CURRENT
SYSTEM. IF YOU ARE USING ORACLE CAN RUN ON ORACLE. THIS PROOGRAM WILL GIVE ONE

11
REPORT. THAT REPORT WILL TELL YOU HOW MUCH RAM SHOULD BE DEPLOYED FOR
CUSTOMER. HOW MUCH RAM SHOULD BE USED IN ORDER TO STORE THE DATA IN HANA
FOR THE PARTICULAR CUSTOMER. SIZING MEANS WHAT? SIZING MEANS CUSTOMER WILL
NEED A SEPERATE HARDWARE TO IMPLEMENT HANA DATA BASE.
BECAUE CURRENT HARDWARE NOT SUPPORTED HANA.
WHENEVER CUSTOMER BUYING HANA DATABASE HE NEEDS TO TAKES SOME DECISIONS.
HOW MUCH HARDWARE I SHOULD BUY? THAT IS SIZING.
FOR HANA NEED TO MAKE THE DECISIONS HOW MUCH RAM IS REQUIRED? HOW MUCH
HARDWARE REQUIRE? HOW SHOULD YOU KNOW HOW MUCH RAM IS REQUIRED 20 GB OR
50 GB? THAT IS PROVIDED BY SAP.
SAP WILL RUN SOME PROGRAM IN YOU SYTEM AND IT WILL PROPOSE YOU THAT IS THIS I
THE AMOUNT OF RAM YOU WILL NEED TO MIGRATE HANA DATA BASE. THIS IS TOTALLY
TECHNICAL.
WE HOULD UNDERSTOOD THAT HOW THE THINGS ARE HAPPENING IN THE BACKEND.

BENEFITS OF VOLUMN IS FASTER QUERY PROCESING. IF WE WANT TO GENERATE THE

REPORT :- SELECT EMPLOYEE CODE, YOJ FROM EMPLOYEES
SIMPLY TWO COLUMNS FROM THE SHEET - EMPLOYEE CODE AND YOJ

IF I EXECUTE THE REPORT AND IF THE DATA STORED IN ROW BASED FORM WHAT IS HAPPEN
IS SYSTEM WILL GO AND SCAN COMPLETE RECORD BECAUSE COLUMNS ARE NOR
DEPERATED HERE. EVEN IF I WANT TO CREATE ONE COLUMN OUT OF IT SYSTEM WILL GO
AND SCAN COMPLETE RECORD.

THAT IS THE REASON ROW BASED DATA STORAGE IS VERY SLOW.

WHAT IS THE BENEFIT OF COLUMN BASED? - IN COLUMN BASED IT WILL NEVER SCAN THE 3
COLUMNS WHICH ARE NOT REQUIRED IN MY REPORT. IT WILL ONLY GO AND SCAN JUST
TWO COLUMNS (WHICH IS REQD)

SECOND BENEFIT IS COMPRESSION. WHEN WE STORED THE DATA IN THE COLUMN BASED
FORM WHATEVER THE DATA IS STORED - THESE GETS STORED IN THE COMPRESSED FORM.
WHAT I COMPRESION?

12
THESE ARE 5 RECORDS. NOW WE KNOW MORE THE LENGTH OF A PARTICULAR FIELD
SYSTEM WILL TAKE MORE SPACE IN THE DATA BASE. WHAT COMRESION DOES IS - FOR
EACH COLUMN IT WILL CREATE 1 CODE.

EVERY TIME THE DATA IS STORED IN THE DATA BASE IT NOT STORED IN THE RAW FORM.
SYSTEM WILL CREARING INDEXING FOR EACH AND EVERY UNIQUE VALUE AND THAT
UNIQUE VALUE WILL STORED IN THE DATA BASE.
WHICH MEANS WE CAN SEE

WE CAN SEE 16 KB OF DATA REDUCED TO 5 KB. THIS I POSSIBLE IN THE COLUMN DATA
BASE.

MULTICORE PROCESSOR- SAP HANA REQUIRE ITS OWN HARDWARE. FOR SAP HANA
SEPERATE LICENSED HARDWARE REQUIRED.
WHAT IS CERTIFIED HANA HARDWARE? HARDWARE MEANS THE PC WHERE YOU INSTALL
THE DATABASE. HARDWARE REQUIREMENTS SAP HAS MADE SURE THAT THE HARDWARE
YOU ARE GOING TO INSTALL HANA THAT MUST BE CAPABLE ENOUGH TO PERFORM TO
PROCESSING FATER.
ONLY THOSE HARDWARE WHO ARE USING LATEST OF FUNCTIONALITIES.
WHAT IS MULTICORE? MULTICORE PROCESSORS MEANS MULTIPLE PROCESSORS WHO WILL
BE DOING THE JOB PARALLY. MULTICORE PROCESSING MEAN MULTIPLE USERS, MULTIPLE
TRANSACTION CAN HAPPEN AT THE SAME TIME WITHOUT THE SPEED ISSUES.
CERTIFIED HARDWARE WHICH IS CERTIFIED BY SAP IT USES MULTICORE PROCESSORS.
SAP HANA USES MULTICORE PROCESSORS DUE TO WHICH IT IS POSSIBLE TO DO MULTIPLE
ACTIVITIES AND THE SAME TIME CONCEPT CALLED AS PARALLELIZATION. PARALLEZATION
MEANS MULTILE ACTIVITIES CAN BE DONE AT ONCE.

13
BSEG IS TAKING LOT OF TIME BECAUSE IT HAS MANY NO OF COLUMNS. WHAT I THE
SOLUTION WHEN I DO GL BASED REPORTING - EXM IF I GO THROUGH FBL3N REPORTING -
I.E FOR GL LINE ITEMS. WHICH ARE AVAILABLE IN BSEG. IF I ASK THIS INFORMATION FROM
BSEG - FBL3N REPORT WILL TAKE LOT OF TIME.
WHY SAP CREATED THI INDEX TABLES? SAME REASON - SAP HAS CREATED COPY OF BSEG -
THEY CREATED SUBSET OF BSEG. IF SAP ALREADY KNOWS THAT CUSTOMERS THEY WANT GL
LEVEL REPORTING - BSEG WE HAVE 200 COLUMNS BUT IN THE REPORT WE ARE ONLY
LOOKING FOR 10 COLUMNS. WHAT THEY HAVE DOEN IS THEY HAVE CREATED COPY OF
BSEG I.E BSIS. OPEN ITEM - BI AND CLEARED ITEM - BSAS.
SIMILARLY FOR VENDOR AND CUSTOMER CREATED BSID-BSAD-BSIK & BSAK.
THE WHOLE PUPOSE OF THIS TABLES IS JUST TO MAKE SURE THAT NO BODY GOES TO
QUERY FROM BSEG TABLE.
WHAT IS THE PROBLEM WITH BSIS? DEFINATELY GETS FASTER REPORTING.
IS IT NOT CREATING ADDITIONAL DATA? ID I HAVE ALL THE DATA AVAILABLE IN BSEG THE
AGAIN I CREATE COPY OF BSEG AND STORING ALL THESE DIFFERENT TABLES. IT IS NOT THE
DUPLICATION?
THIS IS ONLY REQUIRED BECAUSE ROW BASED DATA STORAGE WE HAD IN ECC.
BSEG IN ECC ITSELF BSEG IS HAVING COLUMN BASED THEN THERE NO NEED OF THIS
TABLES. THAT IS THE REASON IN SAP S4HANA WHAT SAP HAS DONE IS THEY SAID NO NEED
OF ABOVE TABLES (INDEX & AGGREGATE) IN S4HANA.
WE DONOT NEED NO INDEX AND AGGREGATE IN S4HANA.
NOW THE PROBLEM IS THAT IF FAGLFLEXT IS NOT AVAILABLE WHICH IS HOLDING THE
TOTALS - NOW IF THIS TOTAL TABLE IS NOT REQUIRED ? WHY THE TOTAL TABLE WA
REQUIRED?
EXM.

WHY DO I NEED THIS AGGREGATE TABLES - REASON IS IN THE TRADITIONAL DATA BASES
LIKE ORACLE, MSSQL - IF WE TAKE CALCULATION IT WILL TAKES HOURS - BECAUSE
14
CALCULATION ENGINE IS THAT MUCH STRONG IN SAP OR TRADITIONAL DATA BASES. IN
S4HANA WHAT SAP HAS DONE IS NO MORE TOTAL TABLES. DATA IS NOT STORED IN TOTALS
TABLES ANY MORE. WHENEVER YOU HAVE A REQUIREMENT SYSTEM WILL GO AND
PERFORM THE CALCULATION. HOW IT IS POSIBLE? SAP HAS PROVIDED WITH SAP HANA
VERY POWERFULL CALCULATION ENGINE.
SAP HANA ALSO PROVIDE HANA CALCULATION ENGINE. IT IS A POWERFULL ENGINE WHICH
WILL PERFORM CALCULATION IN MUCH FASTER WAY COMPARE TO THE TRADITIONAL ECC
SYSTEM OR TRADITIONAL DATABASES. THERE IS NO NEED OF TOTAL TABLES OR NO NEED
OF INDEX TABLES.

NOW ASK ONE QUESTION? IF FAGLFLEXT WAS USED IN SAP ECC

SYSTEM WILL GET THE ERROR. NO SUCH DATA IS AVAILABE IN THE SYSTEM.

NO DATA IS STORED IN FAGLFLEXT.

LEDGERS
LEDGERS ARE PROVIDED BY SAP TO TAKE CARE MULTIPLE ACOUNTING STANDARD OR
ACCOUNTINGTING PRINCIPLES.

WHENEVER WE ARE WORK IN ANY COMPANY ANY CUSTOMER WHO IS USING SAP - IS
ATLEAST FOLLOWING ONE ACCOUNTING PRINCIPLES FOR ONE ACCOUNTING STANDARD. IF
NOT FOLLOW ACCOUNTING STANDARD THEN HOW ARE YOU TAKE CARE FOR FINANCIALS.
DEFITELY NOT POSSIBLE. AT LEAST ACCOUNTING STANDARD IS REQUIRED AND THAT IS THE
REASON IN SAP YOU NEED TO HAVE ATLEAST ONE LEDGER. BY DEFAULT THAT IS LEADING
LEDGER - 0L.
NOW IN ADDITION TO 0L IF COMPANY WANTS TO DO OTHER REPORTING IN OTHER
ACCOUNTING STANDARD ALSO - FOR IF THEY WANT TO DO THE REPORT ON IFRS OR THEY
15
WANT TO DO US GAAP IN ADDITION TO THE COUNTRY GAAP - THEN ONLY THEY NEED TO
CREATE A SECOND LEDGER. OTHERWISE IF COMPANY IS HAPPY WITH JUST ONE
ACCOUNTING STANDARD - DO NOT HAVE REQUIREMENT FOR DIFFERENT ACCOUNTING
STANDARDS THEN THEY CAN SURVIVE ONE LEDGER I.E LEADING LEDGER WHICH IS FREE
DELIVER BY 0L.

THERE IS DIFFERENT WAY HOW TO SETUP THE LEDGERS COMPARE TO SAP ECC.
IN ECC THERE ARE 2 FOLDERS :-

FINANCIAL ACCOUNTING AND FINANCIAL ACCOUNTING (NEW)

IN FINANCIAL ACCOUNTING - NOT SHOW ANY LEDGERS. BECAUSE LEDGERS ONLY
INTRODUCED IN NEW GL ACCOUNTING.
PREVIOUSLY WHEN TOU ARE USING CLASIC GL ACCOUNTING AND IF HAVE THE
REQUIREMENT OF MULTIPLE ACCOUNTING STANDARDS - CAN YOU TELL ME HOW YOU CAN
SERVE THIS REQUIREMENTS IN CLASIC GL ACCOUNTING? IF I WANT TO DO IFRS REPORTING
IN ADDITION TO LOCAL REPORTING BUT NOT USING NEW GL ACCOUNTING - HOW I CAN
TAKE CARE OF THAT PARTICULAR REQUIREMENT?
OPTION -1:- YOU WILL CREATE SEPERATE GL. FOR EXAMPLE IF I CREATING FIXED ASSETS GL
A/C - I WILL CREATE 2 - ONE FOR IFRS PURPOSE AND OTHER FOR LOCAL PURPOSE. AND IN
THE REPORTING - WHENEVER I DO THE FINANCIAL REPORTING I HAVE TO CREATE MULTIPLE
FINANCIAL STATEMENTS VERSIONS.
I WILL SAY FGINANCIAL STATEMENT VERSIONS FOR LOCAL REPORTING - I WILL INCLUDE THE
LOCAL GL ACCOUNT IN THAT REPORT.
SIMILARLY I WILL CREATE ANOTHER FINANCIAL STATEMENT VERSION FOR IFRS AND WE
HAVE INCLUDE IFRS RELATED GL ACCOUNT IN THAT FINANCIAL STATEMENT VERSIONS. THIS
IS CALLED AS ACCOUNT BASED APPROACH. WHY BECAUSE YOU ARE CREATING MULTIPLE
ACCOUNTS TO SOLVE THE BUINESS REQUIREMENTS.

AFTRE THE NEW GL ACOUNTING SAP WHEN CAME OF WITH MULTIPLE LEDGERS - DO I NEED
TO CREATE DIFFERENT ACCOUNTS? OR THE SINGLE ACCOUNT I ENOUGH. SINGLE IN
ENOUGH. SO I AM USING NEW GL ACCOUNTING - I HAVE OPTION OF MULTIPLE LEDGERS -
EVEN THERE I ONE GL ACCOUNT - THAT IS FINE, BECAUSE MY REPORTING I ALWAYS BASED
ON THE LEDGER. THIS APPROACH IS ALLED AS LEDGER BASED APPROACH. BECAUSE WE ARE
REATING MULTIPLE LEDGERS IN THE NEW GL ACCOUNTING. SO YOU STILL HAVE OPTION
EVEN YOU ARE USING S4HANA - YOU STILL HAVE OPTION YOU CAN USE ACCOUNTS BASED
APPROACH. IT IS NOT MANDATORY TO USE LEDGER BASED APPROACH.

BUT IF ARE USING ACCOUNT BASED APPROACH THEN WHAT IS THE POINT IS
IMPLEMENTING S4HANA? THAT YOU CAN DO IN CLASSIC GL ALSO.
IT IS VERY MUCH POSSIBLE TO USE ACCOUNTS BASED APPROACH IN SAP S4HANA. BUT IT IS
STRONGLY RECOMENDED TO UTILISE NEW FEATURES OF S4HANA I.E LEDGER BASED
APPROACH.
APART FROM ACCOUNT BASED APPROACH IS THERE ANY OTHER WAY IN CLASSIC GL
ACCOUNTING TO REPORT MULTIPLE ACCOUNTING STANDARDS?
I.E SPECIAL PURPOSE LEDGER. SPECIAL PURPOSE LEDGER WAS GIVING THE SAME BENEFIT
BUT THE PROBLEM WAS SPECIAL PURPOSE LEDGER NEEDS LOT OF MONTH END ACTIVITIS
TO CARRIED OUT IN ORDER TO DISPLAY THE RESULT.
IN THE NEW GL ACCOUNTING SAP HAS COPIED THE FUNCTIONALITIES OF SPECIAL PURPOSE
LEDGER AND THEY IMPROVED IT SO THAT THERE NO PERIOD END ACTIVITIES IN REQUIRD
TO MNGE THE RESULTS. SO LEDGER CONCEPT IS THE UPGRADED VERSION OF PECIAL
PURPOSE LEDGER.

16
IN CLASIC GL ACOUNTING IF I HAVE THE REQUIREMENT OF MULTIPLE ACOUNTING
STANDARDS THERE ARE TWO OPTIONS - I CAN USE ACCOUNTS BASED APPROACH - CREATE
MULTIPLE GL A/C OR I CAN UE SPECIAL PURPOSE LEDGER.

BUT IF I UING NEW GL ACCOUNTING SAP HAS PROVIDED THE OPTION OF NEW GL
ACCOUNTING WHERE I CAN CREATE MULTIPLE LEDGERS. IF I AM CREATE MULTIPLE
LEDGERS THEN I DO NEED TO ACTIVATE SPECIAL PURPOSE LEDGERS. AND DO NOT WORRY
ABOUT DIFFERENT GL ACCOUNTS. THI OPTION IS CALLED AS LEDGER BASED APPROACH.

IN FINANCIAL ACCOUNTING(NEW) - IF WE ARE USING NEW GL ACCOUNTING

HERE WE SPLIT THE LEDGER.

IN ECC IT IS ONLY ALLOWED TO CREATE LEDGER AS LEADING OR NON LEADING. THERE ONLY
2 TYPES OF LEDGERS. ANOTHER THIS IS WHENEVER WE CREATING THE LEDGERS ALWAYS
NEED TO SPECIFY THE TOTALS TABLES. WHERE EXACLY TOTAL FIGURES WILL BE STORED
RELATED TO PARTICULAR LEDGER.

NOW CHANGE NO-1 - THERE IS NO TOTAL TABLES REQUIRED. WHY DONOT NEED THE
TOTALS TABLES IN S4HANA? BECAUSE OF HANA CALCULATION ENGINE, INMEMORY
COMPUTING, COLUMN BASED DATA STORAGE. ALL THESE FEATURES WHAT THEY ARE
PROVIDING YOU - THEY ARE PROVING YOU THE SPEED. WHICH WAS THE PROBLEM
EARLIER, EARLIER IF I ASK THE SYSTEM TO PERFORM CALCULATION IT WAS TAKING LOT OF
TIME - NOW THE CALCULATIONS ARE VERY SIMPLE. BECAUE SAP HANA USES BETTER
CALCULATION ENGINE - IT UES COLUMN BED DATA STORAGE, IT USES INMEMORY
COMPUTING - THAT I THE REASON ALL THE TOTAL TABLES ARE GONE. THERE ARE NO MORE
TOTAL TABLES. THAT I THE REASON IN S4HANA WHENEVER YOU ARE CREATING THE
LEDGERS SYSTEM WILL NEVER ASK YOU WHICH TOTAL TABLES HOULD BE USED. BECAUE
THERE I NO TOTAL TABLES IN THE BACKGROUND. WHATEVER YOU WILL BE POSTING IN THE
LEDGERS IT WILL GO AND RESIDE IN THE LINE LEVEL TABLE. IN S4HANA NEW TABLE IS
ACDOCA. DO NOT NEED TO TELL THE SYSTEM THAT PLEASE STORE THE DATA RELATED TO
THIS LEDGER ND THIS TABLE. SYTEM AUTOMATICALLY GO AND STORE THE DATA IN CDOCA
TABLE.
IF YOU WANT TO GO NEW SCREEN - TCODE FINSC_LEDGER

17
 HERE LEDGER I 2 DIGITS I.E IS SAME AS IN ECC ALSO.
LEDGER NAME- WHATEVER THE NAME PROVIDE FOR THE LEDGER. WHETHER THE LEDGER IS
LEADING R NON LEADING. (ONLY ONE LEDGER CAN BE LEADING LEDGER I.E 0L).
1ST BYFARCATION BETWEEN THE LEDGER IS LEADING OR NONLEADING.
2ND BYFARCATION WHICH IS NOT IN ECC IS STANDARD LEDGER AND EXTENION LEDGER.
WHAT IS STANDARD AND EXTENSION LEDGER?
IF I UING FB50L I HAVE AN OPTION OF LEDGER GROUP.

IF I USE FB50 INSTEAD OF FB50L

HERE SYTEM IS NOT ASKING LEDGER. WHATEVER THE LEDGER ATIVE FOR COMPANY CODE -
IF CREATED 3 LEDGERS FOR COMPANY CODE SYSTEM WILL GO AND STORE THE
TRANSACTION ALL THE 3 LEDGERS.

BUT IF I GO FOR FB50L AND IF I TELL THE SYTEM TO POST THE TRANSACTION ONLY IN THE
LEADING LEDGER THEN IT WILL NOT GO AND COPY NON LEADING LEDGER. IT IS NOT
NECESSARY THAT WHATEVER THE POSTING YOU ARE MADE TO LEADING IT WILL
AUTOMATICALLY GO TO NON LEADING. IT DEPEND WHICH TCODE WE ARE USING.
FB50 IS LEDGER INDEPENDENT TCODE WHICH MEANS IT WILL GO POST IN EACH AND EVERY
LEDGER.
BUT IF ARE USING FB50L THEN WHATEVER LEDGER YOU WILL PROVIDE IT WILL GO AND
POST ONLY THAT PARTICULAR LEDGER. IT WILL NOT TOUCH ANY OTHER LEDGER.

WHENEVER YOU ARE POSTING THE DOCUMENTS ONE OPTION IS YOU PROVDE LEDGER
GROUP FIELD LEDGER NO ALSO. BECAUSE WHENEVER YOU CREATE A LEDGER SYSTEM WILL
18
AUTOMATICALLY CREATE LEDGER GROUP WITH SINGLE LEDGER. SO FOR IF I WRITE 0L - IT
WILL ONLY GO POST 0L LEDGER. BUT IF I AM CREATING ANOTHER LEDGER GROUP SAY L1 -
IN THI LEDGER GROUP IF I ASIGN 2 LEDGERS - 0L AND SECOND FOR IFRS. O IF I POST
ANYTHING IN LEDGER GROUP L1 WHATEVER THE LEDGERS ARE ASIGNED IN THE LEDGER
GROUP IT WILL GO AND POST ALL THOSE LEDGER.
SO LEDGER GROUP CAN BE THE COMBINATION OF MULTIPLE LEDGERS.

LEADING AND NON LEADING LEDGER BOTH ARE SAME. IF YOU ARE POSTING FB50 IT WILL
GO AND POST ALL THE LEDGER. IF WE ARE POSTING FB50LAND USING LEADING LEDGER - IT
WILL GO AND POST LEADING LEDGER. OR IF YOU ARE POSTING TO NON LEADING LEDGER IT
WILL GO TO NON LEADING LEDGER.

I.E NO DIFFERENCE - SAME BEHAVIOR OF LEADING AND NON LEADING.

NOW SEE THE DIFFERENCE OF LEADING AND NON LEADING LEDGER.

LEADING LEDGER IS COMPULSORY TO COMPANY CODE BUT NON LEADING LEDGER IS

OPTIONAL - IF YOU WANT YOU CAN ADD IT TO COMPANY CODE.

REPORTING IN INDIA GAAP AND IFRS.

1ST THING I NEED TO UNDERTAND IS - HOW MANY CHANGES ARE THERE?
HOW INDIA GAAP IS DIFFERENT THAN IFRS?
IN ASSET ACCOUNTING POINT OF VIEW ALSO NEED TO UNDERSTAND THE CHANGES.
FOR INDIA GAAP MAY HAVE DIFFERENT DEP TERMS.
AND IFRS HAS DIFFERENT DEPRECIATION TERMS.
1ST THING IS IF THERE MAJOR DIFFERENCES AND MAINLY FROM THE ASET ACCOUNTING
POINT OF VIEW - THEN PLEAE DO NOT CREATE THIS (IFRS) AS EXTENION LEDGER. MAJOR
DIFFERENCES IS NOT RECOMENDED.
MAINLY IF YOU WANT TO USE AS ADDITIONAL LEDGER IN ASSET ACCOUNTING THEN IT IS
HIGHLY RECOMENDED THAT USE AS A STANDARD LEDGER. BECAUSE WE CAN NOT
PERFORM ASSET ACCOUNTING AS AS EXTENSION LEDGER.

FOR SOME BASIC ADJUTMENTS WITHOUT TOUCHING ASSETS,AP,AR - JUST THE BASIC
ADJUSTMENTS WANT TO DO FOR MANAGEMENT RELATED ADJUTMENTS. FOR THAT WILL
19
CREATE MA- MANAGEMENT RELATED ADJUSTMENTS. THIS ONE DO NOT NEED TO CREATE
AS STANDARD BECAUSE DO NOT WANT UNNECESSARILY DATA REPLICATION. THIS CREATE
A EXTENSION LEDGER.

0L I.E LEADING LEDGER IS ALWAYS STANDARD LEDGER. IT IS NOT POSIBLE TO CREATE

LEADING LEDGER AS EXTENSION LEDGER.

IN S4HANA IN ADDITION TO STANDARD LEDGER WE ALSO HAVE EXTENSION LEDGERS.

NOW SEE WHAT IS EXTENSION LEDGERS? ONE BENEFIT OF EXTENSION LEDGER IS -
EXTENSION LEDGER WILL TELL YOU THAT WHAT EVER VALUE ARE POSTED IN 0L COPY AS IT
IS IN REPORTING. BUT THAT DATA I AM NOT TORING IN TABLE. SO IT IS SAVE LOT OF
MEMORY.
HOW THIS DATA IS APPEARING IN EXTENSION LEDGER? IT IS DIRECTLY COMES FROM
EXTENSION LEDGER IT SELF. BECAUSE WHEN YOU CREATE EXTENSION LEDGER AT THE TIME
OF CONFIGURATION TOLD THE SYSTEM WHATEVER THE DATA POSTED IN 0L (UNDERLYING
LEDGER) IT WILL PIOCK THE DATA FROM 0L AND SHOW IT TO THE USER. BUT AT THE SAME
TIME WE CAN MAKE POSTING ONLY IN THE EXTENION LEDGER BY MENTIONING LEDGER
GROUP AT THE TIME OF ENTRY BY TCODE - FB01L.

IF YOU CREATE ANY EXTENSION LEDGER UBDER 0L (UNDERLAYING LEDGER) THEN IT WILL
ASSIGN TO ALL COMPNY CODE AUTOMATICALLY.

LEDGER IS A CENTRAL TENANT. ALL ACCOUNTING TRANSACTIONS ARE CONSOLIDATED IN A LEDGER.

ALL ACCOUNTING TRANSACTIONS ARE CONSOLIDATED IN BOOKS OF ACCOUNTS. THAT BOOK WE
ARE CALLING AS A LEDGER. THIS LEDGER BOOK IS BASICALLY USED FOR EXTRACT OUR FINANCIAL
STATEMENT. FOR YEAR END ACTIVITIES WE HAVE TO EXTRACT OUR P/L A/C AND BALANCE SHEET –
FOR EXTRACT OUR P/L A/C AND BALANCE SHEET NEED TO HAVE BOOKS OF ACCOUNTING ENTIRE
SHOULD BE STORED. THAT BOOKS OF ACCOUNTING ENTRIES ARE NOTHING BUT A LEDGER.
NORMALLY WE ARE CALLING GENERAL LEDGER. GENERAL LEDGER IS A CENTRAL TENANT OF TOTAL
ACCOUNTING SYSTEM. WITHOUT LEDGER WE CAN NOT DO ANY FINANCIAL ACCOUNTING
TRANSACTIONS. CAN NOT EXTRACT FINANCIAL STATEMENTS FOR EXTERNAL REPORTING PURPOSE.

IN SAP WE HAVE 2 LEDGERS. WE CAN MAINTAIN MULTIPLE LEDGES. ONE IS CALLED AS LEADING
LEDGER. 2ND ONE IS CALLED AS NON LEADING LEDGER.

LEADING LEDGER IS CALLED AS MAIN LEDGER FOR REPORTING PURPOSE OF A COMPANY CODE.

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 • EVERY COMPANY CODE FOR EXTRACT LOCAL FINANCIAL STATEMENT. FOR LOCAL
REPORTING EVERY COMPANY CODE LEVEL.
• EVERY COMPANY SHOULD HAVE ONE LEADING LEDGER. IT IS DEFAULT. THIS LEDGER
IS CALLED AS OL. LEADING IS A PARENT LEDGER FOR LOCAL REPORTING PRINCIPLES.
ALL THE ACCOUNTING ENTRIES BY DEFAULT GETTING POSTED IN THE LEADING
LEDGER.
• EVERY COMPANY CODE CAN HAVE MULTIPLE NON LEADING LEDGERS.

EXAM.

FOR THIS LEADING LEDGER NEED TO DO SOME SETTINGS.

• FOR WHICH COMPANY CODE WE ARE ASSIGNING THIS LEADING LEDGER.
• WHAT IS THE CURRENCY OF THE LEADING LEDGER.
• WHAT IS THE FISCAL YEAR OF THE LEADING LEDGER.

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ACCORDING TO MY REPORTING SYSTEM THERE IS A ONE ACCOUNTING PRINCIPLES. SAY FOR US
COUNTRY US GAAP IS GOING TO BE THE REPORTING SYSTEM. SO I NEED TO ASSIGN US GAAP TO
THE LEDGER CALLED IS OL.

• WHEN TRANSACTION POSTING IN THE LEADING LEDGER, NON-

LEADING LEDGER ALSO INHERIT (DEFAULTED) TO THE NON-LEADING
LEDGER.
• BUT WHEN I SPECIFING NON-LEADING LEDGER MEANS DOING
TRANSACTIONS IN NON LEADING LEDGER THEN VICE-VERSA LEADING
LEDGER HAS NO IMPACT IN THE ACCOUNTING TRANSACTIONS.
• THERE SHOULD BE ONE LEADING LEDGER AND CAN HAVE MULTIPLE
NON LEADING LEDGER AS PER REQUIREMENT OF THE COMPANY.
• DEVIATION IS ONLY FROM THE FINANCIAL YEAR LEVEL – LEADING &
NON LEDING LEDGER. BUT CURRENY SETTINGS ARE DEFAULTED TO THE
LEADING LEDGER TO THE NON LEDING LEDGER.

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IN SAP THERE IS A CONCEPT OF PARALLEL ACCOUNTING.

IN LEDGER SPECEFIC NEED NOT TO ACTIVATE PARALLEL ACCOUNTING. BUT IN ACCOUNTS SPECEFIC
NEED TO ACTIVATE PARALLEL ACCOUNTING.

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THIS 2 LEDGERS ARE USED FOR EXTERNAL REPORTING PURPOSE. THIS LEDGERS NEVER USED
FOR ANY KIND OF INTERNAL REPORTING PURPOSE.
SAY I WANT A SEPARATE LEDGER WHICH WILL BE ONLY USES FOR INTERNAL REPORTING
PURPOSE. WHERE I CAN DO SOME ADJUSTMENT POSTINGS, REPOSTING OF REVENUES, ANY
KIND OF CONSOLIDATION, POSTING IN THE CLOSE PERIOD. SO THESE KIND OF ADJUSTMENT

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I WOULD LIKE TO DO ONLY FOR INTERNAL DECISSION MAKING PURPOSE. I DO NOT HAVE
ANY EFFECT ON LEADING OR NONLEADING LEDGER.
IN SAP S4 HANA ONWARDS INTRODUCE A NEW LEDGER – IN SIMPLE FINANCE LEDGER
THERE WAS A LEDGER CALLED APENDEX LEDGER. NOW IN S4 HANA IT IS CHANGED TO
EXTENSION LEDGER.

• THIS EXTENSION LEDGER WILL USE SAME FINANCIAL YEAR OF UNDER LAYING
LEDGER. (LEADING OR NON LEADING). EXTENSION LEDGER USE SAME FISCAL YEAR
VARIANT OF BASE LEDGER.
• WHAT IS THE USE OF EXTENSION LEDGER? WHAT EVER THE TRANSACTIONS ARE
MAKING TO THE UNDERLAYING LEDGER AUTOMATICALLY THESE TRANSACTIONS
ARE AUTOMATICALLY INHERITED TO EXTENSION LEDGER FOR DIFFERENT PURPOSES.
• ALL THE LINE ITEMS OF TRANSACTION WILL BE INHERITED/POSTED TO EXTENSION
LEDGER. NOT DOCUMENT NO. WE CAN HAVE MANY EXTENSION LEDGER ON BASE
LEDGER.
• NO EXTENSION LEDGER CAN HAVE TOP OF ANY OTHER EXTENSION LEDGER.
• IN EXTENSION LEDGER WE CAN OPEN ANY PERIOD AT ANY TIME AND DO OUR
WORK.
• EXTENSION LEDGER CAN NOT BE INDEPENDENT. IT SHOULD BE UNDERLAYING
LEDGER (BASE LEDGER) OF LEADING OR NON LEADING LEDGER.
• MULTIPLE EXTENSUON LEDGER CAN HAVE UNDER BASE LEDGER (LEADING OR NON
LEADING)

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26
NOTE- IF WE SELECT CHECK BOX OF MANUAL POSTING THEN ONLY THE TRANSACTIONS
THAT YOU ARE POSTING IN THE BASE LEDGER WILL GET INHERITED TO THE EXTENSION
LEDGER. BUT FOR ANY KIND OF ADJUSTMENT IF WE WANT TO POST DIRECTLY TO
EXTENSION LEDGER YOU CAN NOT DO ANY KIND OF MANUAL POSTINGS OVER THERE.

LEDGER GROUP

HERE WE HAVE OL LEADING LEDGER AND N1, N2 AND N3 NON LEADING LEDGER. WE WANT
TO SOME TRANSACTION IN LEADING LEDGER OL WHICH WILL POST IN NONLEADING
LEDGER N1 AND N2 BUT POST IN N3. HERE LEDGER GROUP CONCEPT WILL WORK.

CLICK NEW ENTRIES

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SELECT THE LEDGER GROUP AND DOUBLE CLICK ON LEDGER ASSIGNMENT

CLICK ON NEW ENTRIES

SAVE
NOTE- TICK OL AS REPRESENTATIVE LEDGER.

NOW GOTO TCODE – FB01L

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WHEN WE CHOSE L8 AS LEDGER GROUP THEN SYSTEM NOT GETTING POSTED TO ANY
OTHER LEDGER. IT WILL POSTED TO OL, AS & I6.

CURRENCIES
DOCUMENT CURRENCY
THE TRANSACTION CURRENCY TYPE IS DOCUMENT CURRENCY. THAT IS THE REASON
SETTINGS FOR DOCUMENT CURRENCY IS GLOBAL. NO NEED TO ASSIGN THE COMPANY
CODE RELEVANT SETTINGS FOR EACH AND EVERY DOCUMENT CURRENCY. THERE IS ONLY
ONE DOCUMENT CURRENCY. NO NEED TO ASSIGN IT FOR EACH AND EVERY COMPANY
CODE. THAT WOULD BE USING GLOBAL ETTINGS - WE DO NOT NEED TO DO THE
CONFIGURATION FOR EACH COMPANY CODE.

COMPANY CODE CURRENCY

AT THE TIME OF DEFINATION DEFINE COMPANY CODE CURRENCY. IT IS ALSO GLOBAL.
BECAUSE WE CAN NOT CHANGE IT HERE.

THOSE CURRENCY REMAINS THROUH THE CLIENT WHERE WE DO NOT NEED TO MAINTAIN
SETTINGS COMPANY CODE WISE - THOSE ARE CALLED AS A GLOBAL CURRENCY TYPE.

GROUP CURRENCY
GROUP CURRENCY - WHERE EXACTLY IT COMES FROM? IF I ASSIGN COMPANY CODE TO 30
I.E GROUP CURRENCY - HOW SYTEM WILL DETERMINE IT IS USD OR EURO OR SINGAPORE
USD. WE DEFINE IT AT THE CLIENT LEVEL BY SCC4 TCODE.
ONCE WE CREATE GROUP CURRENCY WE NEVER CHANGE FOR EVERY COMPANY CODE.

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