KEY FEATURES OF SAP S/4 HANA

FINANCE – 1709 ON-PREMISE

Posted on September 15, 2017September 15, 2017 by Jayanth Maydipalle

It’s high time to learn new Finance automation process and accept changes that comes with
SAP Leonardo for faster decision making, adaptability, innovation, business acceleration,
better outcomes and it keep’s SAP customer’s employees focus on the real job to be done.

Let’s go through the “Finance – Innovations”

 Universal Journal: Subsequent implementation of document split

 Parallel valuation: 3rd currency in Controlling and Cost of Goods Manufactured.
 Accounting: General ledger document split
 Financial Planning: Basic Sales Planning (Activity Price, Consumption)
 Cash Management: Bank relationship management including bank fee analysis;
Improved Integration with Bank Communication Management and In-House Cash
 Machine Learning for Cash Application – Invoice Matching clear incoming
payments by matching them with the corresponding receivables
 Soft close and prediction: Minimum closing time; Early insight into business trends
 Integration: Seller-side integration with Ariba Network (invoice and discount
management); Cost center (SuccessFactors); Payment advice (Fieldglass); Ariba Pay/
Supply Chain Finance
 Central finance

1. Shared Services in Accounts Payables/Receivables

2. Central reversal and correction capabilities
3. financial reporting scenarios

 SAP Fiori apps Roles

1. Accounts Payable/Receivable Accountant

2. Accounts Receivable Manager
3. Controller (Production Costs, Credit)
4. Treasury Risk Manager
5. Asset Accountant
6. General Ledger Accountant
7. Inventory Accountant
TOPIC – 1: UNIVERSAL JOURNAL – SUBSEQUENT INTRODUCTION
OF DOCUMENT SPLITTING

To fulfill the IFRS reporting requirements, you need to report your financial data at a lower
level of detail than your company code. With this feature, you can introduce new account
assignment objects, such as segment or profit center, and add these account assignments to
your journal entries when you post them. To ensure that you have a complete reporting view
of each account assignment object, the opening balance is enriched and split, per account.
The enrichment of relevant accounting data is carried out in the project cockpit, according to
the new account assignment information. To ensure correct processing of open items, at the
time document splitting is active, this feature allows you to enrich open items.
TOPIC – 2: MACHINE LEARNING – SAP CASH APPLICATION
INTEGRATION

SAP Cash Application is a cloud service that integrates with S/4HANA Cloud Edition as of
1702 and S/4HANA on-premises as of 1709 (hybrid model).

The integration to SAP Cash Application solution intends to automate the invoice-matching
process and provide the prediction results back to the SAP S/4HANA system with the help of
machine learning.

SAP Cash Application enables you to match open receivables to incoming bank statement
items using machine learning.

In the finance area, and more specifically in the area of accounts receivables, incoming bank
statement items are ideally matched automatically to open receivables such as invoices. Any
manual post-processing of incoming bank statement items that could not be matched to open
receivables takes time and effort. SAP Cash Application uses machine learning procedures to
train financial applications in order to learn from manual matchings, and thus achieve higher
automatic matching rates.

KEY FUNCTIONALITIES OF SAP CASH APPLICATION:

⊕ Proposing open receivables for incoming bank statement items

You can schedule jobs to receive a list of Machine Learning proposals for matching
receivables to existing bank statement items

⊕ Clearing incoming bank statement items.

You can schedule jobs to automatically clear incoming bank statement items based on
Machine Learning proposals, if the following conditions are met:

 The matching rate of the proposal is higher than specified in the configurations
 The proposed receivables are still open
 All other clearing rules are fulfilled

⊕ Proposing customer accounts for incoming bank statement items

You can schedule jobs to receive a list of Machine Learning proposals for matching accounts
to existing bank statement items.

 The matching rate of the proposal is higher than specified in the configurations
 The proposed account is a valid existing account

⊕ Posting incoming bank statement items

You can schedule jobs to automatically post incoming bank statement items to accounts
based on Machine Learning proposals.

SAP CASH APPLICATION DETAILED WORKFLOW:

TOPIC – 3: INTERCOMPANY REPORTING

 Shows reconciliation amount and difference in object group for company and its
partner
 Drills down to line item details
 Displays detailed information of document
 Shows the reconciliation processing status
 Navigates to reconciliation monitoring page for manual reconciliation
 Sends mail and reminder to contact person
TOPIC – 4: PROFITABILITY ANALYSIS IN THE UNIVERSAL
JOURNAL

SPLITTING COST OF GOODS SOLD IN SAP S/4HANA

Enhanced functionality enables to split costs of goods sold during more processing such as
third party or other processes with account assignment to internal orders or projects

COGS SPLITTING CUSTOMIZING HAS BEEN ADJUSTED

Previous COGS Split functionality which processed the splitting only for goods movements
with reference to a sales order is still available

SPLITTING COST OF GOODS SOLD IN SAP S/4HANA 1610 SCREEN AND 1709
SCREEN
TOPIC – 5: MATERIAL VALUATION IN S/4HANA – MATERIAL
LEDGER

 Up to 3 currencies
o Tracking historic rates in material master
 o Local legal valuation & e.g. hard or trading currency

 Actual Costing
o Optional revaluation of stock and COGS
o Leverage Actual cost component split

Thank You

Jayanth Maydipalle

Source: SAP, JAM, ML, AI and Other.

Tagged 1709, Actual Costing, CLOUD, COGS Splitting, Finance –

Innovations, Intercompany Reporting, Key Features of SAP S/4 HANA FINANCE – 1709
On-premise, Key functionalities of SAP Cash Application, Machine Learning, Machine
Learning – SAP Cash Application, Machine Learning – SAP Cash Application
Integration, Material Valuation in S/4HANA, Material Valuation in S/4HANA – Material
Ledger, on premise, Profitability Analysis in the Universal Journal, SAP,Splitting Cost of
Goods Sold in SAP S/4HANA 1610 Screen and 1709 Screen, Universal JournalLeave a
comment
SAP FINANCIAL CLOSING COCKPIT
Posted on 24 Jul 2017

ACCOUNTING AND FINANCIAL CLOSE

SAP’s accounting and financial close solutions streamlines the accounting for multiple
companies, currencies, charts of accounts, and reporting standards. The solutions enable
finance to efficiently close books on time, and create financial statements at the entity and
corporate levels for IFRS, U.S. GAAP, or other local and global requirements.

 SAP offers a modern accounting system for finance teams needing to streamline core
financial and closing processes to meet increasingly complex business and disclosure
demands.
 It accelerates your company’s path to financial transformation by eliminating
boundaries between transactional and analytical processes combined with proven
excellence in accounting and closing capabilities.
 SAP Financial Closing cockpit = Transactions codes “FCLOCOx“

TOP 10 BENEFITS OF SAP ACCOUNTING AND FINANCIAL CLOSE SOLUTIONS

1. Lower Cost of Finance

Accelerated processes increase productivity and reduce cost. Automate manual steps to
reduce staff workloads which lowers the cost of their work and increases productivity.

2. Accelerated Closing

Reduce cycle time via automation, integration and collaboration. Virtual soft close provides
better insight at anytime from anywhere. Accelerate accounting by integrating GL, fixed
assets, accounts payables, accounts receivables, inventory, revenue, and costs in real-time.

3. Real-Time Business Insight

Enables fast issue resolution and gets you closer to the business. Monitor in real-time the
progress, quality, and financial results of the closing cycle to avoid bottlenecks and address
business concerns

4. Responsiveness

Closes the gap between insight and action. Achieve fast, multi-dimensional reporting without
replicating information to a data warehouse Instant access anywhere with drill-down from the
highest to the lowest level of detail.

5. Harmonization
Harmonize internal and external reporting without redundancy. Unify financial, regulatory,
managerial and operational data in a single repository across multiple systems. Eliminate
redundant data aggregation for easy analysis down to the lowest level of detail. Reduction of
memory footprint through elimination of redundancy. Unite OLTP and OLAP together for
simplified landscape, processes, and analysis.

6. Seamless Access

Self-service access to transactions and analytics anywhere, at any time. Past, present and
future analysis at your fingertips to answer tough questions in briefings and meeting.

7. Modern User Experience

State-of-the-art user experience using the latest technology innovations. Intuitive end user
training interfaces and guided processes eliminate complex teaching undertakings. Customize
templates for event-driven closing tasks and collaboration.

8. Compliance You Can Count On

Efficiently meet the demands of complex compliance regulations. Generate high-quality

financial statements and management reports required by international and local reporting
standards.

9. Boundless Extensibility

Unlimited potential to extend system to customer’s specific business needs.

10. Foundation for Finance Transformation and Innovation

A seamless path to your finance transformation. Choose your path towards finance
transformation with real-time software available in on-premise, cloud or hybrid options.

RECONCILIATION FUNCTIONALITY IN SAP ERP

EXECUTE ENTITY CLOSE TASKS

FINANCIAL CLOSING COCKPIT ON FIORI

⊕ Cockpit to monitor the progress of the entity close via KPIs, also on a mobile device

⊕ Analyze the completion rate of closing tasks by multiple dimensions like region, country,
company, milestone, working day, etc

⊕ Monitor the tasks delayed or in error with easy collaboration to respective task owners

⊕ Analysis of historic closing cycles

Source : SAP ™
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Tagged 1709, Actual Costing, CLOUD, COGS Splitting, Finance - Innovations,

Intercompany Reporting, Key Features of SAP S/4 HANA FINANCE - 1709 On-premise,
Key functionalities of SAP Cash Application, Machine Learning, Machine Learning - SAP
Cash Application, Machine Learning - SAP Cash Application Integration, Material Valuation
in S/4HANA, Material Valuation in S/4HANA - Material Ledger, on premise, Profitability
Analysis in the Universal Journal, sap, Splitting Cost of Goods Sold in SAP S/4HANA 1610
Screen and 1709 Screen, Universal Journal

Published by Jayanth Maydipalle

Passionate for SAP-Finance which inspired me to share my FICO, S4 Finance, Fiori
Knowledge and experience through my website www.sapfidocz.wordpress.com View all
posts by Jayanth Maydipalle

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2 thoughts on “KEY FEATURES OF SAP S/4 HANA

FINANCE – 1709 ON-PREMISE”
 1. Ramunas Daminaitis says:

October 4, 2017 at 9:36 am

These are cool functionalities. Looking forward when will be able to migrate to SAP
S/4 HANA

Reply

2. Raju Kavi says:

March 3, 2018 at 5:42 pm

Hi jayanth Maydipalle, my name Raju could you please suggest me, what to prepare
regarding roles and responsibilties of SAP FICO consultant as i’m preparing for the
interview, i’m very confused on this. please do helpful and give me a reply to
rajuneela322@gmail.com

Reply

My PoV S/4HANA: SAP Activate (2/4)

The SAP Activate is the new methodology from SAP to optimize the S/4Hana implementation.
This methodology consists on a combination of:

 SAP Best Practices with pre-configured and optimized business process following
industries best practices. It concerns:

 Best Practices for S/4Hana ;

 Best Practices for Migration Content ;
 Best Practices for Integration Content ;

 SAP Tools for Guided Configuration as follow:

o Self-services or Guided configuration tool ;
o Expert configuration mode ;
o Solution Builder to ol ;
o Solution manager tool ;

 List of methods as a guidance and principles to ensure the well-managed

implementation. These methods focus on Agile principles.

The SAP Activate replaces the old methods from SAP : ASAP and SAP Lunch Methodology.
The following table (from SAP) is a clear illustration of SAP Activate Method.

When we talk about SAP Activate in S/4Hana implementation, we have some differences
depending on the selected implementation scenario. As now, to implement S/4Hana, they are
3 scenarios:

 New implementation , known also as Greenfield Implementation, enables to make an

new installation of SAP S/4Hana (Installation from Scratch). This one could be deployed
on premise as well as on cloud (private in HEC for example, or public with SAP S/4Hana
Cloud edition).
  System conversion , kwon as the brownfield, consists on conversion of an existing SAP
system into a S/4Hana system. This implementation is done only with S/4Hana on
premise deployment. This scenario is not compatible with Cloud editions.
 Landscape Transformation is a business driven project that enables to consolidate the
landscape by reducing the existing number of systems or by consolidating some
selective data from existing systems (as finance application in one central finance).

Depending on the selected scenario, the SAP activate is adapted to help clients reducing time
and costs during the S/4hana implementations. The clients are not starting from a blank slate.
I will now describe each scenario the appropriate SAP Activate characteristics and description
of step-by-step to move to the S/4Hana target configuration.

New Implementation – Greenfield Implementation:

The SAP Activate for a new implementation is illustrated as following:

 Discover phase – Experience Trial phase:

o The Trail Experience help to understand the innovation available with S/4Hana
o Identify the Business Process that could interest the clients context
o The first step consist on discover the S/4Hana using an Experience Trail. O
o This step concerns on premise and cloud deployments:

 For Cloud Editions:

o Use of Temporary license
o Trial focus on selected business process (not all the scope) as for finance,
marketing, project services, etc.,
 For On premise Editions:
o Use of trial for 30 days period
o Offer an end-to-end business process (not limited as for Cloud editions)
o Access could be using Cloud Appliance Library (Cloud access) or Asking for
a Blu-Ray and then installed on your own infrastructure (on premise
Installation)
o Help function can guide during the discovery phase to help clients try and
use all available functionalities.

 Prepare / Explore phase – Fit/gap based on model company:

o SAP Provide various model company: Marketing model, Project services model,
Enterprise Management model.
o The model company provides:
 Pre-configured environment
 A ready to run business processes optimized for S/4Hana including
reporting content and integration processes
 Pre-defined Master Data
o Using the model company, the client could run a fit / gap activities
 o The fit / gap analysis could be recorded on Solution Manager to be re used later
during the next phase.

 Realize phase – Scope and configure:

o On premise edition:
 The client could re-use the fit / gap analysis performed during the last
phase. This could be done using the solution Manager.
 Once the business process relevant for the client context are known,
the client could use activate these processes.
 The process configuration here is done using IMG
o For Cloud editions:
 On cloud, they are two systems: developments and production systems
 After gap /analysis exercise, the client could use the guided
configuration to activated the relevant processes for his context. This
called self-service configuration that enables users to adapt business
setting to their requirements. For example: organizational structure,
master data structure, etc.
 The IMG is not available for Cloud editions.

 Realize phase – Migrate, Integrate and Extend:

o During this phase, the data will be migrated from the source system to the
target one.
o SAP Activate aims to reduce cost and time during the migration operation as
this phase is very crucial in each project.
o If the source is
 an SAP System: Predefined mapping is provided
 a Legacy System: Canonical format is provided. This one will be used to
map the Business objects in SAP S/4Hana
o For Cloud Solution, best practices for Integration Content are provided for
others SAP Cloud solution: Hybris, Ariba, etc.

 Deploy Phase – Onboard and Deploy:

o This phase aims to avoid time consuming on the training of users.
o The users adoption of the solution is mandatory on the success of the project
o Sap Activate provide learning content for business users
o Integration with Sap Learning Hub and Sap Jam (for Collaboration network)
 Run Phase – Operate, Monitor and Support:
o Benefits from SAP Solution Manager Integration for operation tasks
o With Solution Manager, you can manage the documentation, best practices,
guidance, and so on.

Run phase is the last step on the process of S/4Hana implementation as a greenfield. As Sap
Activate focuses on Agile methodology, the client could go back to any phase and re use / re
adapt all done tasks with the same agility and flexibility.

System conversion – Brownfield:

  Systems requirements:
o Check if is an ECC 6.0 with or without EhP
o Unicode System
o Pure ABAP Stack (no dual stak allowed)
 Simplification List - Maintenance Planner:
o Hosted in SAP Portal
o Simplify Landscape Maintenance process (replace maintenance optimizer)
o Check the status of the system according to the simplification List: check add-
ons, Business Functions, Industry Solution, etc.
o If problem, no XML Stack is generated
 Simplification List – Pre-checks:
o Check of all required item (like CVI) are fulfilled
o Re use of an XML Stack if needed
o Pre-checks aims to ensure the state of the ERP source and highlight the
mandatory steps to be currying-out before moving forward the next phase.
o The pre-check process is re performed again by SUM functionality and will stop
the conversion if error are handled.

 Simplification List – Custom Code Migration Worklist:

o Help to identify the custom code to be reviewed when moving to S/4Hana
based on the content of the Simplification List
o Require a system with at least 7.50 or 7.51 (this can be a separate system)
o Two aspect are highlighted and analyzed by Custom Code Analyzer:
 SAP Objects changed (available on Sap Service Market Place)
 SAP Objects used by Custo Code
o A working List Items will be defined and prioritize the tasks to be done
 Software update Manager (SUM):
o Technical conversion is managed using SUM (or DMO of SUM) in one step
o The process has 4 steps:
 Software update: new application
 DB migration: new data model / Hana database
 Data conversion: conversion of the content of the old DB
o Part of Software Logistics Toolset

ps: I will ad later the 3rd scenario about the Landscape Transformation

Publié il y a 1st January 2017 par Said El Ouazzani

Libellés: bigdata Cloud Computing digital Performance Technology
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