Central finance

Aditya
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The Universal Journal – what’s it all about?

The Universal Journal brings together the once-separate

components Financial Accounting (FI) and Controlling (CO) into
one pool of relevant business data. This single source of truth
collects all accounting-relevant transactions and makes them
available to all relevant application.

components: Financial Accounting (General Ledger), Controlling,

Asset Accounting, and

Material Ledger.
Technically speaking, the Universal Journal combines the most
important fields from these components within a single line item
table, which enables the components to read and process the
data required for their business processes from a single location.
It was only with the introduction of the SAP HANA database
technology that the last logical step could be taken, namely to unite
the FI and CO components into one physical table (table ACDOCA).

SAP HANA with its superior compression techniques and columnar

layout is able to aggregate huge numbers of line items within
seconds, making it possible to dispense with separate physical line
item and totals tables in each application. Real-time integration is
therefore guaranteed by design. Thanks to this technology, the
Universal Journal with its centerpiece, table ACDOCA, could be
developed.
 
AP Single Source of Truth with Universal Journal

Before we answer this question, let us get a small introduction. The

Universal journal entry eliminates the need for the separation made
previously between Financial Accounting (FI) and Controlling (CO)
(single source of truth). There is a combined FI and CO document linked
with a logical document.

All the information is recorded in 1 line item table (ACDOCA).

Since financial accounting and managerial accounting are reconciled

constantly, there is no longer any need for reconciliation between FI and
CO or between FI-GL and FI-AA. Nor is there any need for the real-time
integration of these components. The reports in all components use data
from the same journal and thus known as Universal journal.
posted a FI document which triggered entries in
BSEG, FAGLFLEXA, FAGLFLEXT, COBK, COEJ and
COEP tables (and some more BSIS, etc) in ECC.

Compare it with a posting in S4HANA ON PREMISE

1.0, all the information is recorded in BKPF (header)
and ACDOCA (line items). Thus reducing the foot
print drastically.