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WHAT IS THE DIFFERENCE BETWEEN SAP

S/4HANA AND SAP ECC ERP? (SAP S/4HANA


VS SAP ECC)
SAP introduced SAP S/4HANA in 2015. Since then, most of us are following the innovations & simplifications in SAP
S/4HANA. We also wonder about the the functionalities & business benefits of SAP S/4HANA. However, even now, questions
do arise in SAP S/4HANA vs SAP ECC (SAP S4H vs SAP ECC) discussions as to what is different between SAP ECC and SAP
S/4HANA. So, what is the difference between SAP S 4HANA and SAP ECC?
In this blog post, I t cover some of the key differences between SAP S4H and SAP ECC. Therefore, by the end of the blog, you
will have a brief overview of the SAP ECC SAP S/4HANA difference.

Database Factor of SAP S/4HANA and SAP ECC


SAP S/4HANA can run only on the HANA database. This is completely different from SAP ECC. SAP ECC can run on Oracle,
IBM DB2 etc. SAP S/4HANA leverages on SAP HANA’s in-memory capabilities and design principles.

 The HANA in-memory database reads data faster than traditional databases which fetch data from the hard disk. This is because
data is read from memory, i.e., data resides in the main memory RAM (though Write happens in hard disk).

 HANA’s column based tables enable faster access (since only affected columns need to be read in a query), better compression
(because only distinct values are compared to rows), parallel processing (different columns can be easily processed parallely)

 OLTP and OLAP capabilities are available in the same system. They offer real time reporting and predictive analysis.

 There will be no aggregate (total), index, and history tables in SAP S4HANA. This is due to dynamic aggregate creations on the
fly based on line item tables.

Single Source of Truth and SAP S/4HANA


Universal Journal
SAP S/4HANA combines data structures of different components such as FI , AA , CO , CO-PA and ML into a single line item
table. This table is ACDOCA, also known as the Universal Journal. The presence of the universal journal eliminates several
aggregate and index tables. Now, data insertions occur into a single table instead of several tables. Hence reducing the data foot
print by a huge margin.

In addition, the MATDOC, the new line item for inventory management, eliminates 26+ tables. Material documents are stored in
MATDOC but not in MKPF or MSEG tables.

New Functional Capabilities


New functional capabilities are available to work with SAP S4H and the HANA in-memory computing. A few examples are
Central Finance, SAP Cash Management, and SAP BPC Optimized for SAP S/4HANA. However, these require additional
licenses.

Addition of standalone solutions to SAP S/4HANA


Core
Some standalone SAP Solutions are now available as a part of the SAP S/4HANA core. Two common examples are SAP
Transportation Management and SAP Extended Warehouse management.

Unison of CO and FI
In SAP ECC, we could observe FI GL accounts mapped to CO primary cost elements. However, in SAP S/4HANA, the universal
journal uses only one field to store both GL accounts and cost elements. Cost elements (both primary and secondary) are now GL
accounts. Hence, a relevant cost element category is used when they are created and maintained (in FS00). Reconciliation (as in
case of CO to FI) is not needed now. Therefore, period end closings will be faster.

Introduction of a New GL in SAP S 4HANA


SAP S/4HANA is technically similar to the new GL of SAP ECC. This is beacuase of it’s data structure. Customers using the
classic GL need not use the document split or the parallel ledger. However, the new GL’s functionality (Parallel ledger) is a
prerequisite for new Asset accounting.

Account based CO-PA vs Costing based CO-PA


Account based CO-PA is now the default option. The costing based CO-PA is now available as an option. However, both options
can also be run simultaneously. Please use http://scn.sap.com/docs/DOC-65828 for more details.

What about Custom Code?


In SAP S/4HANA, custom code read operations redirect to compatibility views due to a special setting at the database interface
level (i.e invisible to source code). Therefore, custom reports work without any disruptions.

Business Partners and Material Number


Extensions
In SAP S/4HANA, Customer and vendor master data need to be integrated/migrated as Business Partner. Customer-vendor
integration (CVI) is a mandatory step to run business with SAP S/4HANA.

One key difference between SAP ECC and SAP S/4HANA is that the Material number can now be 40 characters instead of the
existing 18 in SAP ECC. This is an optional feature. Therefore, impacts of this extension on interfaces, custom coding, and other
SAP applications must be evaluated. This must be done before switching to 40 characters. You can refer to note number 2267140
for more details.

HANA database:

S/4HANA can only be run on Hana database unlike ECC which can be run on Oracle , IBM DB2
etc. Back bone of S4H’s design is with HANA’s in memory capability and below design
principles

In-memory database means that data is read from memory data always reside in main memory
RAM (though Write happens in hard disk) and hence in-memory database reads data much faster
w.r.t traditional databases (fetching the data from hard disk).
Hana’s column based tables provide faster access (as only affected columns need to be read in a
query), better compression (due to few distinct values compared to rows), parallel processing
(different columns can be easily processed parallel)
OLTP and OLAP capability in same system with real time reporting and predictive analysis.
There will be no aggregate (total), index and history tables in S/4HANA. Aggregates are created
dynamically based on line item table instantaneously .

S/4HANA including the data structures of different components (for FI , AA , CO , CO-PA and
ML) into a single line item table ACDOCA, called as Universal journal . It eliminates several
aggregate and index tables. Now, data needs to be inserted only a single table instead of several
tables thus reducing the data foot print drastically.

MATDOC is also a new line item table for inventory management and it eliminates 26+ tables.
Material documents will be stored in MATDOC but not in MKPF or MSEG tables

In ECC , FI GL accounts are mapped to CO primary cost elements . In S/4HANA, only one field
of universal journal is used to store both GL account and cost element. Cost elements (both
primary and secondary) are now GL accounts and hence created / maintained (in FS00) with
relevant Cost element category. Reconciliation (as in case of CO to FI) is not needed now. Period
end closing also will be faster.

S/4HANA is technically very similar to new GL of ECC due to its data structure. Customers
using classic GL need not use Document split or parallel ledger. However, new GL's
functionality (Parallel ledger) is a pre-requisite for new Asset Accounting.

All customer and vendor master need to integrated / migrated as Business partner . Probably,
SAP is trying to align the concept of business partner as in other SCM applications like APO ,
EWM , TM etc. as these SCM applications also will be natively integrated with core of
S/4HANA in future releases.
ECC’s FI-AR-CR is replaced by credit management of FSCM (Financial supply chain
management) . FSCM-CR is based on a distributed architecture which allows interfaces with
external credit rating agencies. Traditional FI-AR-CR credit control setting requires high degree
of manual work. However, FSCM-CR has advanced features like as below:

Credit rule engine for automatic risk scoring & credit limit calculations
Automatic update to master data on approval of credit limit etc.
Work flow for credit events
Extension of Material number field : Material number can now be 40 characters from existing
18. It is a optional feature. Impact of this extension on custom coding, interfaces, other SAP
applications need to be evaluated before switching on 40 characters.

Activation of material ledger (ML) is mandatory. ML valuates inventory in multiple currencies.


Traditionally inventory is mainly valuated with a single currency in SAP ERP. ML allows
valuation in two additional currencies. Today’s global organizations operating in different
countries desire to valuate inventory in multiple currencies.

The in-memory database (read HANA) has the superpower to calculate on the fly. So
the previous index tables like BSAS, BSAD, BSIS, BSIK, BSAK, BSIM, FAGLBSAS,
FAGLBSIS which helped us with performance are no longer needed in HANA. Similarly,
aggregate tables like GLT0, GLT3, KNC1, LFC1, KNC3, LFC3, COSP, COSS, and
FAGLFLEXT are also made obsolete.

NEW ASSET ACCOUNTING IN S4

Key Changes Introduced with New Asset


Accounting
The reason that the asset value can be posted to the asset and to the general ledger simultaneously
is because most of the asset value tables have been replaced, and both the asset and financial
actuals are now held in a single table in Finance, the aforementioned ACDOCA table.

A common phrase you may hear a lot in relation to S/4HANA is the Single Source of Truth. In
S/4HANA, Finance and Controlling have been merged; and Asset Accounting and even
Profitability Analysis all create entries directly to the ACDOCA table in Finance. In other words,
you now have everything in one place.

Additional accounting principles no longer have to be posted periodically; instead all accounting
principles post real-time and at the same time. Because the accounts are reconciliation accounts in
all ledgers, you can’t post only to the general ledger and not to the asset. Altogether, this means
that you how have everything in sync with everything else, which has got to be one of the biggest
advantages, especially for us accountants.
In addition, asset postings are transferred to finance at asset level and more asset information is
now available in finance, so you can run financial reports by asset number for example in the
general ledger line item display transaction. You also don’t have to wait until the period end to
see values in the parallel ledgers, and even the planned depreciation is alw ays up to date.

The table in Figure 1 shows some examples of transactions that have changed with S/4HANA.
Although many of you will be using Fiori to access the S/4HANA transactions, particularly if you
are using the public Cloud version of S/4HANA, quite a lot of the S/4HANA transactions are very
similar whether you are using the SAP GUI or the Fiori equivalent. I thought it would be easier to
show the transaction codes so you could compare the ECC transactions and see what has changed.
Also, I’m sure some of you will still want to explore the SAP GUI transaction codes on the on -
premise version, even if you have Fiori, or intend to implement Fiori later.

# SAP Central Finance Features:

1. You can use the central finance to harmonize master data and replicate posting
2. You can map master data from several source systems (SAP & Non-SAP) to harmonize master data in
central finance system either manually or using SAP MDG (a separate license for MDG).
3. For enabling the transfer of data between your source systems and central finance, you need to
maintain mapping that defines the relationship between data in the source systems (SAP and Non-
SAP) and data in central finance. Mapping is used during the initial load and day to day transactional
data transferring to central finance system.
4. Profitability segment data of an accounting document can also be transferred to central finance
system. ACDOCA is updated with profitability document number and reporting on PA can be achieved
in central finance system.
5. Intercompany Reconciliation with Central Finance: AR and AP are replicated into
Central Finance, intercompany reconciliation (ICR) can access these receivables and
payables directly in the Central Finance system. ICR is compatible with central finance
system.
6. Document Relationship Browser: Using the document relationship browser, you can
see the document flow of an FI document and can access the all link documents (CO, SD,
MM) in origin/source system
All documents related to a transaction are available in the document relationship browser, provided the source
system is an SAP system.

Document can be navigated in relationship browser; you can use the following transactions:

Controlling Documents: Actual (KSB5), then choose àEnvironmentàRelationship Browser àDisplay Document
(FB03), then choose à Environment Document Environment à relationship Browser

7. Harmonized Financial Reporting: Central Finance system collects data from different
system and provides harmonized reporting in a single system
The picture below shows how data is replicated from the source systems to the S/4 HANA Central Finance
system:
# Overview of SAP Central Finance:
Central Finance is there in the market for quite some time, now additionally it can be seen as an approach to
adopt SAP S/4HANA. It enabled FI documents to be replicated in a new Central Finance system which running
on S/4HANA. Central Finance is relevant in an organization where there are multiple older SAP ERP instances
or other Non-SAP Finance applications.

Central Finance exploits the capabilities of HANA i.e. real-time, speed and agility to replicate financial
documents into the central system, giving a real time organization-wide financial view. In short, Central Finance
allows you to create a common reporting structure for an organization.

# SAP Central Finance Features:

1. You can use the central finance to harmonize master data and replicate posting
2. You can map master data from several source systems (SAP & Non-SAP) to harmonize master data in
central finance system either manually or using SAP MDG (a separate license for MDG).
3. For enabling the transfer of data between your source systems and central finance, you need to
maintain mapping that defines the relationship between data in the source systems (SAP and Non-
SAP) and data in central finance. Mapping is used during the initial load and day to day transactional
data transferring to central finance system.
4. Profitability segment data of an accounting document can also be transferred to central finance
system. ACDOCA is updated with profitability document number and reporting on PA can be achieved
in central finance system.

5. Intercompany Reconciliation with Central Finance: AR and AP are replicated into


Central Finance, intercompany reconciliation (ICR) can access these receivables and
payables directly in the Central Finance system. ICR is compatible with central finance
system.
6. Document Relationship Browser: Using the document relationship browser, you can
see the document flow of an FI document and can access the all link documents (CO, SD,
MM) in origin/source system
All documents related to a transaction are available in the document relationship browser, provided the source
system is an SAP system.

Document can be navigated in relationship browser; you can use the following transactions:

Controlling Documents: Actual (KSB5), then choose àEnvironmentàRelationship Browser àDisplay Document
(FB03), then choose à Environment Document Environment à relationship Browser

7. Harmonized Financial Reporting: Central Finance system collects data from different
system and provides harmonized reporting in a single system
The picture below shows how data is replicated from the source systems to the S/4 HANA Central Finance
system:
Following interfaces feed data to central finance system:

 An interface for reposting Financial Accounting/Management Accounting (FI/CO) postings


 An interface for reposting secondary CO postings
 An interface for cost object mapping

8. Integrated Business Planning: Integrated Business Planning for SAP S/4 HANA, on premise edition
(IBP) can be combined with S/4 HANA Central Finance to provide a central and consistent view of the
planning process.

IBP covers the following:

 Expense planning
 Profitability planning
 Profit and loss planning

# Central Finance Challenges:


1. Cost of Acquisition: From a business perspective there is a challenge around how to justify the
additional cost associated with a central finance approach. There would be two systems running to
reflect financial transactions.

2. Technical Challenge: Maintenance for the central finance system and the existing source systems; a
number of other components are necessary; including the SLT server, as well as associated updates
to the source systems

1. Clear Master Data Governance Strategy and capability plan is always a challenging task for the
organization

# Integration with SAP & Non-SAP Systems with S/4 HANA Central Finance System:
The Picture below shows how the systems integrate with each other.

Following interfaces feed data to central finance system:


 An interface for reposting Financial Accounting/Management Accounting (FI/CO) postings
 An interface for reposting secondary CO postings
 An interface for cost object mapping

8. Integrated Business Planning: Integrated Business Planning for SAP S/4 HANA, on premise edition
(IBP) can be combined with S/4 HANA Central Finance to provide a central and consistent view of the
planning process.

1. List the key features of the SAP Simple Finance ? (SAP Simple Finance Interview Questions Pdf)

Answer:

The following are some of the available key features of the SAP Simple Finance:

Financial Planning and Analysis

With SAP Simple Finance, companies can forecast, budget and plan as an ongoing approach. With the advantage of

Predictive Analysis, companies can forecast the influence of business decisions on their organization financial reports.

Finance and Accounting

With the benefits of advanced Accounting and Finance features, companies can satisfy the legal terms. Further, they can

finish the reports of Finance on time.

Financial Risk Management

With the benefit of Predictive Analysis, companies can determine the risks present in the processes of the Finance at the

initial stage itself and take steps to solve them. It is effortless to determine the best feasible investment rates regarding the

market standards.

Compliance and Risk Management

With the strong financial approach, it is effortless to avoid unauthorized access to important data in the enterprise. It is

simple to identify abuse as well as fraud. The companies can able to balance the risk involved in entire financial processes.

2. What are posting periods ?


Answer:

The Posting period variant controls which posting periods, both normal and special, are open for each company code. It is

possible to have a

different posting period variant for each company code in the organization. The posting period is independent of the fiscal

year variant.

3. Explain what is a capacity requirement planning ?

Answer:

It is a process for determining the quantity of machine and manual labor resources necessary to assemble a production.

4. What are document types and what are they used for ?

Answer:

Document type is the identifier of differentt account transactions like SA for G/L,AA for Asset Accounting etc.The doc.

Types controls things

like type of the account that can be posted to, the number range assigned to it, and required doc header fields.

5. How are tolerance group for employees used ?

Answer:

Tolerance group stores Posting amount defaults. Tolerance groups are assigned to User ID’s that ensures only authorized

persons can make postings.

6. What Are The Main Advantages That Attract Customers To Migrate To Sap S/4hana ?

Answer:

The main vision and approach of the SAP are to support customers survive simply in the digital world. In order to deliver

this mission, SAP S/4HANA redefining how enterprise software makes value. S/4HANA is mainly designed to power

instant value across the business and industry lines with the superior sophistication – Simplicity.

Let us explore the advantages of Simple Finance from the point of business value.

SAP S/4HANA makes the unique chance to redefine business models and power new profits in addition to revenues. With

the Simple Finance, companies can easily link to devices, people as well as business networks to present additional value

to their clients on any channels. Hence, offers the following benefits:


Big Data and Internet of Things (IOT)becomes accessible to any kind of business.

Companies can simplify their approach, power them in a real world environment and alter them as per their requirement in

order to gain new proficiencies. That is, there is no further requirement for the batch processing.

Business users can receive a vision of any kind of data from anywhere, including execution, planning, simulation, and

prediction.

Let us explore the benefit of Simple Finance in the view of IT value:

The unique chances created by the SAP S/4HANA simplify the landscape. In addition, support condenses Total Cost of

Ownership (TCO) with SAP S/4HANA.

Companies can now lessen their data footprint as well as a task with huge data sets in the seamless system (for instance,

CRM, ERP, SCM, SRM, PLM co-deployed) in order to save costs of hardware, the cost of operation as well time.

It also made innovation very simple with the open platform (that is none other than SAP HANA Cloud Edition) in order to

power advanced applications like recommending, predicting and simulating while protecting standing investments.

Business users can influence simple as well as role-based experience depending on current design principles that increase

training efforts when raising productivity. The simple configuration of the SAP S/4HANA also supports customer by

modeling the system.

Enterprise gain opportunity of deployment such as On-Premise, Cloud, and Hybrid to power rapid time-to-value.

7. Suppose I have purchased goods of 10 units(raw materials or semi-finished goods) worth Rs10000 from

vendor A (suppose) and also made payment for the same. Now during the

manufacturing process, it was observed that 3 units are defective, now

my question is how do we deal with the defective units in SAP as I have

already made payment for the 10 units(i.e Rs10000). ?

Answer:

If you have a GRN against these materials, then the same can be return
delivered. An appropriate movement type needs to be configured for the

same. As for the payment, raise a credit note on the vendor.

* Using Debit Memo you can get the money for defective 3 units.

8. Explain what is the difference between logistics and transport ?

Answer:

The difference between logistics and transport is:

Logistics: Logistics is referred as the procedure of managing goods, resources and information from the source to the

consumers in a manner that it fits the requirements of both parties.

Transportation: Transport is the movement of the goods from one point to the other. It is considered as part of logistics.

SAP Simple Finance Interview Questions Pdf

9. How is the SQL statement executed ?

Answer:

In the database of the HANA, each SQL query statement is executed with the transaction reference. For each new

transaction, a new session is allotted.

10. Explain what is wave picking ?

Answer:

Wave picking is a technique of assigning orders into groups and release them together, so as to allow several activities to

run parallel and complete the task.

11. Explain what is the meaning of Triage ?

Answer:

The sorting of products or goods based on their condition or quality is referred as Triage. Some of the goods need to be

repaired and sent back, others have to be sold off as used or defective goods.

12. Which Edition Of Sap S/4hana Do You Suggest For Our Companies ?

Answer:

The On-Premise Edition of the SAP HANA is designed to suit for the organizations across companies, which require a
broad and deep level of functionality integrated with a highly flexible range of personalization. The cloud edition of the

SAP S/4HANA is designed to suit for the companies, which require a standardized cloud submissions primarily handling

the basic business scenarios of a company or certain business set-up of business lines in industries which are integrated

with a rapid innovation cycle. In addition, this edition provides the chance for clients to deploy real world hybrid setup,

combine On-Premise and Cloud solutions for extraordinary IT flexibility as well as stimulated business innovation.

13. What are adjustment postings and its use? Give t.codes and paths if possible ?

Answer:

fb50,f-02 and others could be used for adjustments. These adjustments are to correct any financial representation that has

already been booked into the accounts.

14. What are posting keys? State the purpose of defining posting keys ?

Answer:

Posting keys determine whether a line item entry is a debit or a credit as well as the possible field status for the

transaction. Posting keys are SAP delivered. If u want changes like making additional fields optional on payment type

posting keys then the best possible action is to copy the posting key that needs to be modified and then modify it.

15. Is it possible for a company to have positive cash flow but be in serious financial trouble ?

Answer:

Yes, it is. A company that is selling off inventory but delaying payables will show positive cash flow for a while–even

though they’re in trouble. Another example would be where a company has strong revenues for the period but future

forecasts show that revenues will decline. This would happen when a company hasn’t focused on making sure there were

new prospects/sales in the pipeline.

SAP Simple Finance Interview Questions Pdf

16. What do you mean by Net Postings ?

Answer:

Usually, when a transaction is posted, for example, a vendor invoice (document type: KR), the system posts the Gross

amount with the tax and discount included. However, SAP provides you the option of posting these items as Net. In this

case, the posting excludes tax or discounts. Remember to use the special document type KN. (Similarly, you will use the

document type DN for customer invoice-Net compared to the normal invoice postings for the customer using the
document type DR.) For using this net method of posting you should have activated the required settings in the

customization.

17. Explain the impact of the purchase on the income statement, balance sheet, and statement of cash flows ?

Answer:

At the time of the purchase, there is a cash outflow (cash flow statement) and PP&E goes up (balance sheet). Over the life

of the asset it is depreciated. This shows up a reduction in net income (income statement) and PP&E (balance sheet)

decreases by the amount depreciated. At the same time retained earnings (balance sheet) also goes down. However, the

depreciation is added back in the cash from operations section (cash flow statement) as it is a non-camsh expense the

reduced net income.

18. How many financial statement versions can be assigned to co.code ?

Answer:

As many FSVs as you want can be assigned to the co code i.e. 1:n as of Co Code: FSV.

have created Company Code and all other configuration related to the

CCode. Also in MM I have created purchase order, created vendor,

material etc. I couldn’t activate the PO due to the following error

messages in red:

19. What are field status groups ?

Answer:

Field status groups control the additional account assignments and other fields that can be posted at the line item level for

a G/L account.

20. Explain what is chargeback ?

Answer:

When any shipment that does not meet the customers decided terms and conditions, a financial penalty is charged against

the supplier by customer. This charge is referred as charge back. For example, lack of proper packaging or labeling.

21. Explain what is cycle time ?

Answer:

Cycle time is the time consumed to get and order from order entry to the shipping dock.
22. Explain what is bonded warehouse ?

Answer:

Bonded warehouse is a dedicated portion of a facility where imported goods are stored before the customs duties or taxes

are being paid.

23. What is a Document Header ?

Answer:

The Document Header contains information that is valid for the whole document such as:

• Document Date

• Document Type (Control Information)

• Document Number

• Posting Date

• Posting Period

• Company Code

24. What are shortened fiscal year? When are they used ?

Answer:

Shortened Fiscal Year: a financial year, which has less than 12 periods.

SAP Simple Finance Interview Questions Pdf

25. In inventory management what do you mean by allocation ?

Answer:

assigned to company code we can assign company code to chart of account.

26. In inventory management what do you mean by allocation ?

Answer:

It is a demand which is created by the Sales Order or Work Orders next to a particular team.

27. Basically if we can expand the profit center structure by using the new field can I do Kp26 cost center activity type

with functional area planning as well ?


Answer:

You can’t do this using transaction KP26 since this hasn’t been enabled to derive the functional area. IF you want to fill all

the dimensions during planning, then investigate Integrated Business Planning for Finance.

28. In simple finance, can I have a new field based on business need which can link with logistics? For example, a team

field which will drive from sales Oder which will flow to GL posting ?

Answer:

You can add a field to the universal journal easily but you will have to create derivation logic of some kind to fill it and as

with any derivation the more complex you make the logic to fill it, the more you’ll impact performance during posting.

29. How is Account Type Connected to Document Type ?

Answer:

The Document Type is characterized by a 2-character code such as AA, DG, etc., whereas an Account Type is denoted by

a 1-character code such as A, D, etc., specifying which accounts a particular document can be posted to. The common

account types include:

• A Assets

• D Customer (Debtor)

• K Vendor (Creditor)

• M Materials

• S GL

30. State the main difference between the migration to SAP S/4HANA On-Premise and migration to SAP S/4 Finance ?

Answer:

There is no notable difference between the migration to SAP S/4 HANA On-Premise and migration to SAP S/4 Finance

from the perspective of Finance. On the other hand, because of the logistics influences, it is suggested to consider several

things with SAP S/4 HANA.

31. How can the partner of SAP support the migration of customer to SAP S/4 HANA ?
Answer:

SAP comprises a well-known partner ecosystem (which covers systems integrator and value-added retailers). This

ecosystem is ready to service and resell SAP Simple Finance for the available as well as new customers to develop future

inventions. Partners handled surprisingly more than 50 percentage of the Business Suite of SAP that is powered by

HANA. SAP and Partners will help customers on their digital journey with migration, system shifting in the cloud as well

as deployment suites for fast time to value. Entire organization, regardless of the sizes will experience advantage from the

ultimate quality service and reseller abilities that partners offer.

32. Is it Possible to Change an Existing B/S GL A/C to the P&L Type ?

Answer:

Technically, you will be able to change all the fields, except the account number, of a GL account in the Chart of Accounts

area. However, in this particular instance when you change the GL account type from B/S to P&L, make sure that you

again run the balance carry-forward program after saving the changes so that the system corrects the account balances

suitably.

SAP Simple Finance Interview Questions Pdf

33. What are the Various Components of SAP HANA ?

Answer:

SAP HANA DB

SAP HANA Appliance

SAP HANA Studio

SAP HANA Application cloud

34. When should a company consider issuing debt instead of equity ?

Answer:
A company should always optimize its capital structure. If it has taxable income it can benefit from the tax shield of

issuing debt. If the firm has immediately steady cash flows and is able to make their interest payments it may make sense

to issue debt aif it lowers the WACC.

35. How do you calculate the WACC ?

Answer:

WACC (weighted average cost of capital) is calculated by taking the percentage of debt to total capital, multiplied by the

debt interest rate, multiplied by one minus the effective tax rate, plus the percentage of equity to capital, multiplied by the

required return on equity.

36. Explain what is consignment inventory ?

Answer:

Consignment inventory is in the possession of the customer but still owned by the supplier. It means you will pay the

supplier only when their goods are sold.

37. Explain what is blind shipment and bread bulk ?

Answer:

When the source of the supplier is hidden from the customer, such shipment is referred as a blind shipment.

Bread bulk is referred to overseas shipments, where the cargo being shipped consists of smaller units like crates, bales,

cartons and so on.

38. What are the major transportation issues in warehousing ?

Answer:

The major transport issues in warehousing are:

Costs
Delays

Tracking and communications

Warehouse Safety

39. Which is cheaper, debt or equity ?

Answer:

Debt is cheaper because: it is paid before equity and has collateral backing it. Debt ranks ahead of equity on liquidation of

the business. Learn more about the cost of debt and cost of capital.

There are pros and cons to financing with debt vs equity that business needs to consider… it is not automatically better use

debt finance simply because it’s cheaper. A good answer to the question may highlight the tradeoffs, if there is any

followup required.

A company has learned that due to a new accounting rule, it can start capitalizing R&D costs instead of expensing them.

This question has four parts to it:

40. What Are The Various Compression Techniques Available ?

Answer:

There are three compression techniques and they are as follows:

Cluster encoding

Run-length encoding

Dictionary encoding

In Sap Simple Finance, Even In Case The Client Never Uses The Asset

SAP Simple Finance Interview Questions Pdf

41. Do we need to have the HANA Live installed for these reports ?

Answer:
Your classic reports (Report Writer, Drill-Down, ABAP List Viewer) will run as before using compatibility views to select

the relevant data from the universal journal. For the modern reports such as the multi-dimensional trial balance, line item

browser or income statement are using a combination of HANA views and operational data providers or virtual

infoproviders to feed the queries.

42. Is universal journal updated after document splitting ?

Answer:

The BSEG entries for payables and receivables won’t be split, but the split will happen in the universal journal

(ACDOCA) based on the splitting rules.

43. Is it also unified, in addition to, universal, journal and who is the D000002 userng ?

Answer:

User D000002 is Hasso Plattner, one of the founders of SAP and still an active blogger. As to unified vs universal, we

started the project talking about the need to unify our structures, but ended up with a universal journal.

44. In Column table view is SAP BW SID concept moving to ERP ?

Answer:

SAP BW SIDs are for the master data.

Here’s a nice tutorial about row vs column store

45. Is costing based COPA document different from new Universal document ?

Answer:

Yes the costing-based CO-PA document will be as before a combination of CE1XXXX for the transactions and

CE4XXXX for the characteristics. In the universal journal you will have fields for each characteristic in CE4XXXX and a

link to CE4XXXX via the PAOBJNR for reasons of backwards compatibility.


46. In simple finance , can I have a new field based on business need which can link with logistics? For example, a team

field which will drive from sales Oder which will flow to GL posting ?

Answer:

You can add a field to the universal journal easily but you will have to create a derivation logic of some kind to fill it and

as with any derivation the more complex you make the logic to fill it, the more you’ll impact performance during posting.

47. What is SAP Simple Finance ?

Answer:

SAP Simple Finance is a comprehensive finance solution based on SAP HANA, which can be deployed in the cloud or on

premise. Designed to be easy to use, it can deliver instant insight for finance professionals. It enhances the current finance

solution portfolio from SAP, preserving its functional strength while enabling non-disruptive migration.

48. I buy a piece of equipment, walk me through the impact on the 3 financial statements ?

Answer:

Initially, there is no impact (income statement); cash goes down, while PP&E goes up (balance sheet), and the purchase of

PP&E is a cash outflow (cash flow statement)

Over the life of the asset: depreciation reduces net income (income statement); PP&E goes down by depreciation, while

retained earnings go down (balance sheet); and depreciation is added back (because it is a non-cash expense that reduced

net income) in the cash from operations section (cash flow statement).

20
Reasons to switch from SAP ECC to
SAP Simple Finance
As we all know that deploying SAP Simple Finance is a costly activity, so from the customer point of view could
any one specify convincing reasons on why customers should transform from SAP ECC to Simple Finance.
Below are some of the reasons which I know, but they aren't convincing to change the mindset of customers.
1. Reduced redundancy, aggregations- Leading to increase in speed.
Customer's view: Why should I change to Simple finance just for increasing the speed of my routine activities.
Decrease in the speed by some minutes is not what we expect for.
2. Faster Period end closing activities - Fast close
Customer's view: This also isn't that appealing for us as, usually any closing program would take some hours
for execution and with simple finance it has just got done to few minutes or seconds. So, only for reducing the
time required for period end closing or improving some performance measures we would not like to do such a
costly transformation.
3. SAP FIORI- Simplified user experience
Customer's view: We are happy to work on our existing device from office.Just to make SAP available on all
employee devices we would not do the transformation.
4. New Asset Accounting/new posting logic to post to different ledgers:
Customer's view: In standard ECC we are happy with using the delta areas and we are also able to post to all
the ledgers as expected. So, why would we want to transform to simple finance just for new posting logic.
So, as you see as the above reasons aren't that convincing to change mind of customers to do the
transformation to Simple Finance. So, could any one guide me or give some strong reasons ( some examples
like some reports which really are a big change in Simple Finance) which would help me in presenting Simple
finance in a better way.
Also, could any one let me know how much time should we say to customer to finish the complete migration to
Simple Finance.

CO area in S/4 Finance and the technical changes therein and the changes in the configuration in CO. We will
explore the changes available and how to use them in various client scenarios.

Technical changes in CO
With introduction of Universal ledger and ACDOCA table, there are a few technical changes which has occured
in CO area. With advent of Universal ledger, real time integration is no longer and option and CO data directly
moves in to Universal Ledger.

So some of the key changes are:-

1) COBK & COEP remains the key tables for CO, with COBK storing header and COEP storing line item.

They are linked to FI tables ( BSEG, BKPF) with the POSNR field.
( SAP may remove COBK and replace it with BKPF , so wait for next phase )

2 ) Long running orders / projects which used to be stored in COSP_BAK, COSS_BAK are not stored in
ACDOCA.

3) Compatibility view exists for the tables which are replaced-V_XXXX.

4) Following tables from CO side are removed :-

COSS, COSP,

Change in some of the CO transactions:-


Functionality Old Tcode / New Tcode

Settlement-Order & Project VA88 / VA88H (Order)- the one ending with H is optimized for HANA
and is new tcod

CJ8G / CJ8GH (Project)

Result Analysis KKAK / KKAKH

WIP Calculation KKAO / KKAOH

Variance Calculation for Cost KSS1 / KSS1H

Center

Change in Customizing & importance of new nodes


New Setting for customizing Controlling in S/4 HANA:-

1) Configuration of document type for posting in Controlling:-

Customizing node

Here you will maintain / have all the basic document type which will be posted and we relevant for CO posting
2) Maintain document type mapping for CO transaction

In this node, you can control and restrict which type of document gets posted in CO

You need to define a default variant which is used to assign the CO document type to FI document type

You place your mapping of FI documents to CO transaction / document types here

This setting provides further control on the posting to CO

3) Check and define default values for posting in controlling:-


Here you define the default ledger and the document type mapping ( defined in step 2)

This is done for each of the company code.

4) Maintaining version for the ledgers-

You are allowed to maintain multiple version and assign it to different ledgers when using S/4 HANA.

Here you define the version and ledger assignment

In this way you can plan how you CO version data is read. This node is accessed during migration to S/4
Finance too.

Conclusion
With S/4 Finance, you have multiple options in setting up CO and its linkage with FI.

This helps consultant to design the process flexibly.