SAP S4 HANA

S4 HANA Finance
 SAP S/4 HANA - Finance

SAP S/4HANA Finance - delivers functional completeness across all financial roles

Head of Corporate Corporate Head of Finance Chief Compliance

VP of Finance
Reporting Treasurer Operations Officer
Governance, Risk &
Financial Planning Accounting & Treasury
Financial Operations Compliance for
& Analysis Financial Close management
Finance
Strategy Development Payments and Bank Receivables Enterprise Risk
Accounting
and Translation Communications Management Management
Controls and
Planning, Budgeting, Cash and Liquidity Invoice Management
Entity Close Compliance
and Forecasting Management and Accounts Payable
Management
Profitability and Cost Debt and Investment Real Estate
Corporate Close International Trade
Management Management Management

Monitoring and Reporting and Financial Risk Travel and Expense

Fraud Management
Reporting Disclosure Management Management

Financial Close Risk Management for Financial Shared

Audit Management
Governance Commodities Services

Page 2 12 February 2019 Presentation title

Finance
Process – General Ledger Accounting
Process Challenges

► Master data ► Identifying and resolving reconciliation issue

► Journal Entry ► Closing activates and sequence
► Reconciliation ► Preparation of Financial Statement as per statutory requirement
► Closing Activities ► Multiple reporting requirement
► Reporting ► Time consuming report output
► Report not available in desired forma
►Joining multiple report in excel
► Customized program and report
Finance
Process – Change in Data Model
Traditional ECC S4 HANA

► Combined several table for reporting
► Regular reconciliation required
► Need to move data to the appropriate table for reporting
(e.g Settlement)
Ggeneral ledger maintenance using SAP S/4HANA with
automated accounting processes
► Unify accounting and controlling data in a single repository
with a general ledger with SAP S/4HANA.
► Run real-time reporting without data duplication in data
warehouses using a multidimensional, multicurrency general
ledger that doesn't have predefined aggregates.
► Minimize reconciliation by centralizing accounting data in one
repository.

Page 4 12 February 2019 Presentation title

Finance
Universal Journal – Single Source of Truth

Page 5 12 February 2019 Presentation title

List of Tables Replaced by Compatibility Views

Page 6 12 February 2019 Presentation title

Finance
Process – Master Data
Traditional ECC S4 HANA

►Primary and secondary cost element are created separately
► Cost elements become part of the chart of accounts. They
are maintained in GL account master data. There is no
separate cost element master data maintenance.
► GL accounts have now attributed on three levels
► Chart of accounts area
► Company-code-specific area
► Controlling-area-specific area

Page 7 12 February 2019 Presentation title

Finance
Process – Master Data

Page 8 12 February 2019 Presentation title

Finance
Process – Currency & Ledger
Traditional ECC S4 HANA

General Ledger in ECC Genteral ledger using SAP S/4HANA

► The Universal Journal in SAP S/4HANA can handle up to 10
► 3 parallel currencies in FI
currency fields.
► The currencies of non leading ledgers in New GL were a subset ► Parallel Ledger
of the currencies in the leading ledger ► Appendix / Extension ledger

Page 9 12 February 2019 Presentation title

Finance
Process – Currency & Ledger

Page 10 12 February 2019 Presentation title

Finance
Process – Management Accounting
Process Challenges

► Cost Center Accounting ► Identifying and resolving reconciliation issue

► Profit Center Accounting ► Closing activates and sequence
► Product Costing ► Multiple report required by management
► Activity Based Costing ► Time consuming report output
► Profitability Analysis ► Report not available in desired format
► Reconciliation ► Joining multiple report in excel
► Closing Activities ► Customized program and report
► Reporting

Page 11 12 February 2019 Presentation title

Management Accounting
Process – Accounting Based COPA
Traditional ECC S4 HANA

►Data stored in COEP table
►Operating concern is generated
► No FI document for assessment
►Costing based CO-PA solution is preferred to Account based
to leverage following advantages –
► Break-up of cost component structures,
► Production variance and quantity option.
► ACDOCA can be extended by customer-specific fields (like in
COPA)
► Complete reconciliation of profitability repots with Financials
► Create FI document with secondary cost element
► Faster reporting in Account based CO-PA with new HANA
architecture
► Split of cost-of-goods-sold posting on multiple accounts (by
cost component) and Split of production variances posting
on multiple accounts (differentiation of price / quantity effects)
► Quantity fields in the line items
► Real-time derivation of market segment information from cost
postings (cost center, order, WBS element).

Limitation
► Realignment - Realignment of historical data is not possible if
new characteristic is added or characteristic Value is changed
► Valuation strategy - Account based COPA is based on
accounting entry, thus alternate valuation strategy is not
possible
► COGS break up of fixed cost vs Variable cost is not available

Page 12 12 February 2019 Presentation title

Management Accounting

Page 13 12 February 2019 Presentation title

Finance
Process – Closing Operation
Traditional ECC S4 HANA

► FI versus CO and sub-ledgers ► Reconciliation ensure by design

► FI versus Account based CO-PA
► Reconciliation of multiple ledgers
► Reconciliation Ledger
► Reconciliation of ERP and data warehouse
► Reconciliation of totals vs. line items
► Run Batch process
► Periodic posting run for APC values for Asset
► Errors with individual assets need to be corrected before
period-end closing
► Need to move data to the appropriate table for reporting
(e.g Settlement)
► Enable a fast, compliant, and accurate close using fewer
closing steps, naturally reconciled data, and automated
operations.
► Achieve efficient peer-to-peer reconciliation of intercompany
balances and invoices between group subsidiaries without
time-consuming data load.
► Get early results for faster decision making by simulating
currency translation
► Soft Close and Hard Close functionality

Page 14 12 February 2019 Presentation title

Financial Closing Cockpit

Page 15 12 February 2019 Presentation title

Finance and Management Accounting
Process – Reporting
Traditional ECC S4 HANA

►Compatibility view of reports ► Real-time data from Universal ledger

►Report in GL previously drill down by any dimension in
FAGLFLEXT but not to the CO account assignments
►Reports in Controlling can display cost elements and
cost element groups rather than accounts and account groups
►Multiple maintenance of account groups and Financial Statement
Versions (FSV) for reporting
►Multiple hierarchies maintenance - group profit centers or cost
centers on multiple levels
► Flexible Reporting - Reports can be drawn on any dimension
based on user requirement with minimum efforts
► Semantic tagging –
► The solution to meet these challenges is the new
semantic tag based reporting framework with the key
user tool “Custom Analytical Query”.
► After assigning a semantic tag to the financial
statement version, the semantic tag can be re-used in
reports and to build your KPI’s
► Flexible hierarchies
► These are based on master data attributes and tags.
Based on the assigned tags you can easily build a new
hierarchy.

Page 16 12 February 2019 Presentation title

Financial Reporting in SAP S/4 HANA

Page 17 12 February 2019 Presentation title

Financial Reporting in SAP S/4 HANA

Page 18 12 February 2019 Presentation title

Financial Reporting in SAP S/4 HANA

Page 19 12 February 2019 Presentation title

SAP S/4 HANA - Finance

Page 20 12 February 2019 Presentation title

Finance
Process – Asset Accounting
Process Challenges

► Asset Acquisition ► Deprecation posting

► AUC ► Closing activates and sequence
► Deprecation Posting ► Identifying and resolving reconciliation issue
► Calculation of IT depreciation ► Multiple report required by management
► Asset Sale ► Time consuming report output
► Reconciliation ► Report not available in desired format
► Closing Activities ► Joining multiple report in excel
► Reporting ► Customized program and report
► Migration challenges

Page 21 12 February 2019 Presentation title

Asset Accounting

Traditional ECC S4 HANA

Classic Asset accounting in ECC New Asset Accounting using SAP S/4HANA
► Parallel Valuation in Real-time
►Delta Deprecation Area ► Separate Document for each Valuation
►Reconciliation necessary between Asset Accounting and ► New Depreciation run
General Ledger ► Technical clearing account
► Entry of Value Differences for Each Depreciation Area or
►Fixed Assets-Fiscal Year Change, balance carry forward in
Accounting Principle (Ledger Group
Asset Accounting separately ► No reconciliation necessary between Asset Accounting and
General Ledger
► The balance carry forward of Asset Accounting is integrated
with the balance carry forward of Financial Accounting with
the universal journal entry

► Asset Accounting is based on the universal journal entry. This means there is no longer any redundant data store.
► Reconciliation postings are no longer necessary
► The hitherto existing periodic posting run for APC values is redundant.
► Postings for group assets are redundancy-free
► It is no longer necessary (or possible) to restrict the transaction types to individual depreciation areas.

Page 22 12 February 2019 Presentation title

Changes in Data Structure

Actual items
Actual data of ANEK, ANEP, ANEA, ANLP, ANLC is now stored
ANEK in table ACDOCA. ANEK data is stored in BKPF.
Compatibility views FAAV_<TABLENAME> (e.g. FAAV_ANEK)
are provided to enable non-disruptive reporting on old tables
ANEP After migration: access to content of old tables is still possible via
views FAAV_<tablename>_ORI.
BKPF
ANEA
ACDOCA

ANLP

ANLC FAAT_DOC_IT Non actual items:

Statistical data is now stored in table FAAT_DOC_IT.
FAAT_PLAN_VALUES Plan data (previously ANLP and ANLC) is now stored in

FAAT_YDDA FAAT_PLAN_VALUES
Year-dependent attributes of Fixed Assets are now stored on FAAT_YDDA.

Page 23 12 February 2019 Presentation title

Asset Posting

► To split the business process in an operational and a valuating document there was a need to establish the “technical clearing account” for
integrated asset acquisition.
► For the operational part (vendor invoice/GRIR), the system posts a document valid for all accounting principles against the technical
clearing account for integrated asset acquisitions. From a technical perspective, the system generates a ledger-group-independent
document.
► For each valuating part (asset posting with capitalization of the asset), the system generates a separate document that is valid only for the
given accounting principle

Page 24 12 February 2019 Presentation title

Asset Accounting

Page 25 12 February 2019 Presentation title

Asset Accounting

Traditional ECC S4 HANA

Page 26 12 February 2019 Presentation title

Asset Accounting

Page 27 12 February 2019 Presentation title

Finance
Process – Account Payable
Process Challenges

► Direct Procurement ► Monitoring of advances

► Vendor Payments ► Vendor Ageing
► Advance payment to suppliers ► Monitoring of due date
► Vendor Ageing ► Multiple report required by management
► Reporting ► Time consuming report output
► Report not available in desired format
► Drilldown not available
► Joining multiple report in excel
► Customized program and report

Page 28 12 February 2019 Presentation title

Finance
Process – Account Payable

Page 29 12 February 2019 Presentation title

Finance
Process – Account Payable

Page 30 12 February 2019 Presentation title

Finance
Process – Account Receivable
Process Challenges

► Direct sale ► Monitoring of advances

► Payment receipt ► Customer Ageing
► Advance receipt from customer ► Monitoring of due date
► Customer Ageing ► Multiple report required by management
► Provisioning ► Time consuming report output
► Reporting ► Report not available in desired format
► Credit management ► Joining multiple report in excel
► Collection ► Customized program and report

Page 31 12 February 2019 Presentation title

Financial Operation
Process -Receivable Management
Traditional ECC S4 HANA

► Receivables managers must constantly balance the need ► SAP provides automated, integrated, and collaborative
processes for receivables management.
to decrease days sales outstanding (DSO) and bad debt write-offs,
while maintaining superior customer service.

Page 32 12 February 2019 Presentation title

Financial Operation
Process -Receivable Management

Cross-system automation for credit, dispute

and collections processes reduce bad debt
while delivering superior customer service

Analytics and workflow align Sales, A/R, and

Executives to reduce DSO

Optimized for global business services

deployment

Page 33 12 February 2019 Presentation title

Financial Operation
Process -Receivable Management

Page 34 12 February 2019 Presentation title

Financial Operation
Process - Collections management
► Prioritizedlists of customers based on your strategies
► Integration with dunning proposal

► Detailed information on customer account, payment trends, and

valuation details

Page 35 12 February 2019 Presentation title

SAP S/4 HANA - Finance

Page 36 12 February 2019 Presentation title

Cash Management

Topic Classic Cash Management S4HANA – Cash Management

House Bank / Bank – FI01, FI02, FI03 Transaction codes are replaced by new
Bank Account House Bank – FI12 Fiori app "Manage Banks"

Liquidity - BPC or BW-IP set up in a - Embedded Liquidity Plan with BPC/PAK

Planner separate system (Planning Application Kit) and Design
- ETL for master data and - No ETL is needed
transactional data is - Automated liquidity forecast is integrated
necessary

Page 37 12 February 2019 Presentation title

Finance
Process – Cash Management
Traditional ECC S4 HANA

►. Classic Cash Management ► SAP New Cash Management

► Centralized Bank Account Management
► Cash Position/Liquidity management

Page 38 12 February 2019 Presentation title

Finance
Process – Cash Management

Page 39 12 February 2019 Presentation title

Finance
Process – Cash Management

Page 40 12 February 2019 Presentation title

 SAP Cash Application
Automation
 Increase efficiency
 Reduce errors
 Enable finance to focus on
strategic tasks
Page 41 12 February 2019
Speed
 Faster payment matching
 Reduce DSO
 Increase liquidity
 Improve customer service.
Presentation title
Reduce TCO
 Learns from historical data
 Learns from accountant
behavior
 Does not require on-going
maintenance
Integrated with S/4HANA
 Integrated with S/4HANA Cloud and
On-premise

Compliments standard rules
 Maintain current processing
workflow
SAP S/4 HANA Finance 1709 - Key Features

► 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

Page 42 12 February 2019 Presentation title

Central Finance

Page 43 12 February 2019 Presentation title

Fiori Apps – Core Accounting

Page 44 12 February 2019 Presentation title

Fiori Apps – Basic Financial Operation

Page 45 12 February 2019 Presentation title

Fiori Apps – Cost Management And Profitability Analysis

Page 46 12 February 2019 Presentation title

Fiori Apps

Page 47 12 February 2019 Presentation title