324485997-SAP-S4-HANA-Finance-GL-Accounting-V-2-0.pdf

Finance in SAP S/4 HANA –General Ledger Accounting (based on S/4HANA 1511) August’2016 | Copyright © 2015 Tata Consultancy Services Limited 1 TCS Internal Objective The objective of this presentation is to get a brief understanding of what has changed in General Ledger Accounting in S/4HANA. Objective This presentation is relevant for SAP Finance consultant and Solution Architects. Note: The content in this presentation is subject to change due to continuous change in S/4HANA. Please contact SAP CoE for latest version when needed for customer interaction. 2 TCS Internal Agenda 01 01 About S/4HANA 02 01 General Ledger Accounting in S/4HANA - Overview 03 01 S/4HANA vs. S/4HANA Finance for GL Accounting 04 01 Process demo 05 01 Configuration demo 06 01 Summary 3 TCS Internal TCS Internal Agenda About S/4HANA 4 TCS Internal TCS Internal SAP S/4HANA On-premise Edition (OPE) S/4HANA S/4HANA S/4HANA  Finance and logistics on premise edition 1511 on premise edition 1610 innovations  On-premise editions 11/2016 02/2016 02/2016 05/2016 FPS S/4HANA Finance SAP S/4HANA on premise edition S/4HANA on premise edition Simple 1503 (aka sFIN 2.0) 1605 (aka sFIN 3.0)  Finance innovations Finance 03/2015 05/2015 08/2015 05/2016 Add-On 1.0 11/2015 02/2016 SP level SP level 5 TCS Internal TCS Internal SAP S/4HANA 1511 SAP S/4HANA Compatibility Packs Additional features and applications to enhance specific LoB functions or localization SAP S/4HANA Line of Business for specific SAP S/4HANA Line of Business industries Line of business specific applications to Industry and line of business specific enhance core functions applications to enhance core functions SAP S/4HANA Enterprise Management Core Core solution to manage mission critical processes 6 TCS Internal TCS Internal . Finance in SAP S/4HANA Finance related components in SAP S/4HANA Name changes  Smart finance -> simple finance S/4HANA Core S/4HANA LoB products -> S/4HANA Finance OPE  Central journal -> central finance  Integrated business planning for finance -> BPC for S/4HANA SAP Accounting BPC for S/4HANA powered by SAP HANA (Planning) SAP Cash Management SAP Central Finance powered by SAP HANA 7 TCS Internal . Deployment Architecture SAP ECC SAP ECC Non-SAP HANA DB Any DB Any DB 1 2 3 1 2 3 SAP LT HANA Live/ 1 2 3 replication Embedded Fiori BO Middleware server Analytics HANA Live/ Embedded Fiori BO S/4HANA Analytics HANA DB S/4HANA 1 2 3 HANA DB 1 2 3 Simplified Landscape Central Finance Finance Process 1 Transactions 2 Closing 3 Analytics 8 TCS Internal TCS Internal . SAP S/4HANA – Core Changes Suite on HANA S/4HANA Finance SAP Simple Finance On- SAP ERP Fiori premise edition YYDD HANA DB SAP ERP Core HANA DB changes S/4HANA ERP SAP ERP SAP S/4HANA YYDD Any DB HANA DB 9 TCS Internal TCS Internal . Agenda General Ledger Accounting in S/4HANA .Overview 10 TCS Internal TCS Internal . CO. single source of truth for FI including AA. acct based CO-PA.General Ledger Accounting in S/4HANA  Universal journal. ML  Merged GL account and cost element 11 TCS Internal . General Ledger Accounting in S/4HANA 01 01 Universal Journal 12 TCS Internal . Universal Journal  Universal Journal contains financial postings for all transactions within the enterprise  Multi GAAP reporting  Ledger approach – one accounting principle is assigned one ledger  Accounts approach – multiple accounting principles are assigned to one ledger  Multi currency reporting  FI. CO currencies updated in Universal Journal  Additional currency types  Types of ledger available in Universal Journal  Leading ledger  Non-leading ledger  Extension ledger 13 TCS Internal . FI period lock is also checked along with CO period check  Real-time FICO reconciliation / Reconciliation ledger obsolete due to merged GL account and cost element 14 TCS Internal . Universal Journal  Multiple dimension reporting in Universal Journal  Profit centre. version ‘0’ is assigned to leading ledger  Document splitting is available in Universal Journal  During postings to GL accounts for secondary and primary costs. business area. functional area  Characteristics for account based COPA  Custom dimensions  CO postings generated via secondary cost elements are also updated in Universal Journal  CO is integrated with FI via version assignment i.e. segment. AR and AA balance carry forward  New transactions for reporting  FAGLL03H – Line item browser  FAGLB03 – Display balances  FAGLL03 – Display/ change items 15 TCS Internal .Balance Carry forward (New)-Single transaction code for GL.AP.HANA optimization  FAGLGVTR . Universal Journal  Transaction codes related to newGL are used such as FB50L for postings to single ledger group  New types of postings in Universal Journal  COGS split in universal journal based on cost components  Variance analysis in universal journal with variance categories  New transactions for period close  FAGL_FCV .Foreign Currency Valuation. data is converted to leading ledger data  Restrictions for newGL optimization for S/4HANA conversion  Additional ledgers cannot be added  Splitting cannot be added  Profit centers related restrictions  Development of tool for newGL optimization in in process 16 TCS Internal . Universal Journal  During migration from classical GL. COPA characteristics Direct postings 17 TCS Internal . stationary Manufacturing  Indirect materials Orders Settlement  Sub-contracting Reporting dimensions  External services Sales order Segment Settlement  Inventory consumption Profit centre  COGS Functional area Projects  Revenue Settlement Business area  Cash and Bank CO objects  ….Universal Journal Revenue & Costs Universal Journal Cost centre  Salary posting Assessment  Depreciation posting Type of Postings  Material procurement Internal order Settlement Financial posting  Overheads – travel.. Controlling postings training. Ledger in Universal Journal Types of Ledger Standard Extension Extension Ledger Leading Non-leading (aka appendix ledger) Normally used for group Normally used for local GAAP Used for Management and reporting and local tax internal reporting 18 TCS Internal . Ledger in Universal Journal  Extension ledger is used for management/ internal reporting  Assigned to a standard ledger as base ledger  All postings from base ledgers are replicated in the extension ledger  Manual postings can be done in extension ledger which is not updated in base ledger  Posting period variant in extension ledger is different than base ledger. It enables posting for management reporting even if periods are closed for legal accounting  Accounting principle is not assigned to the extension ledger 19 TCS Internal . Example Jan-Dec Key points Ledger Group E1-Extension – 0L  Ledger group is assigned to 0L-Leading Ledger E2-Extension ledger IFRS  Extension ledger is assigned Apr-Mar to a base ledger. which can be leading or non-leading E3 Extension L1-Non Leading Ledger  In case of non-leading Ledger Group ledger has different fiscal – Z1 year and asset accounting is Jan-Dec used. new ledger group Local GAAP would need assignment of A1-Non Leading Ledger two ledgers with two fiscal (Representative ledger) years 20 TCS Internal TCS Internal . Ledger in Universal Journal . name space should start with Y* and Z*  Filled by foreign currency valuation run.These currency types are predefined by SAP 10 Company Code Currency 20 Controlling Area Currency 30 Group Currency 40 Hard Currency 50 Index-Based Currency 60 Global Company Currency  Customer Defined Currency Types. manual valuation posting run (Fiori App) or BAPI ACC_DOCUMENT_POST  No dependency on leading ledger  If you want use standard currency type for non leading ledger then the same should be used in leading ledger 21 TCS Internal . Currency in Universal Journal  Standard Currency Type. Currency in Universal Journal Prior to S/4 HANA S/4HANA (1511) Finance (FAGLFLEXA/ Controlling (COEP) Universal Journal (ACDOCA) BSEG) TSL Transaction Currency Transaction Object WRBTR WOGBTR WSL Document Currency currency Currency Company Code CO Area HSL Local Currency DMBTR WKGBTR Currency Currency KSL Global Currency 2nd Local DMBE2 Currency OSL 1st Additional currency 3rd Local DMBE3 VSL 2nd Additional currency Currency CO_OSL CO Object Currency 22 TCS Internal . General Ledger Accounting in S/4HANA 02 01 GL Account and cost element master data 23 TCS Internal . are created during GL account creation  New account types in GL account (refer to next slide for details)  Cost element category to be specified in GL master  Default cost object assignment no longer possible in cost element master data. primary and secondary. SKB1  Cost element group can be used like before in reports and in allocation cycles  GL accounts for secondary costs are required to be added in account group.General Ledger Account and Cost Element in S/4HANA  All cost elements. financial statement versions  Multiple account assignment still possible for P&L accounts  Cost element category 90 is replaced by an indicator ‘apply acct assignment statistically in Fixed Asset/ Material Acct’ 24 TCS Internal . GL accounts can be blocked for postings  Cost element still updated in master data tables CSKA. CSKB along with SKA1. must be defined in OKB9  Cost element deletion not possible. General Ledger Account and Cost Element in S/4HANA GL Account Types Balance Sheet Can be created as statistical cost X Account elements (category 90) in fixed assets and inventory accounts Non-operating P&L accounts. not created N income or expense as cost elements GL account Primary cost or P&L accounts. created with S Secondary costs secondary cost element category Demo file: S4 HANA FIN-P01-S4C-FS00 GL Master data creation 25 TCS Internal TCS Internal . created with P revenue primary cost element category P&L accounts. General Ledger Account and Cost Element – Obsolete Transactions Area Path Description Removed or New Additional Info/ Impact Cost Element Accounting Automatic Creation of Primary and Secondary Cost Elements [structure Removed node] Cost Element Accounting Create Selection Variants for Cost Removed Elements Cost Element Accounting Define Cost Element Attributes Removed Cost Element Accounting Define Cost Element Attribute Mix Removed Cost Element Accounting Determine Time-Based Fields for Cost Removed Elements Cost Element Accounting Develop Enhancements for Cost Element Removed Master Data 26 TCS Internal . S/4HANA impact on Chart of Accounts  New GL accounts for secondary cost elements  New GL accounts for technical APC accounts in asset accounting  Block GL accounts used in reconciliation ledger/ FI-CO real time reconciliation  New GL accounts for revenue reporting at condition type level if moving from costing based CO-PA to account based CO-PA  New GL accounts for COGS split at cost component level  New GL accounts for manufacturing variance split 27 TCS Internal . Agenda S/4HANA vs S/4HANA Finance for GL Accounting 28 TCS Internal . group valuation an profit center valuation with transfer Not available Available available pricing Note – includes key changes. ML. S/4HANA vs S/4HANA Finance S/4HANA S/4HANA S/4HANA Feature Finance Finance 1511 1503 1605 Data Model Changes in FIN Line item based processing and reporting Applicable Applicable Applicable Elimination of index and aggregate tables Creation of compatibility views to ensure reporting/ processing as per old data structure Cost Elements Applicable Available Applicable Functionality not available in SAP S/4HANA (functional equivalent available) Business Partner Not Not In S/4 HANA business Partner replaces customer/ vendor master. CO.Universal Journal Universal Journal is a new ledger is S/4HANA which contains data from FI. does not include all 29 TCS Internal .e. All accounts receivables Applicable applicable applicable and payables transactions are reflected against Business Partner General Ledger . Acct Applicable Applicable Applicable based CO-PA Transfer Prices/ Parallel Delta Versions Not Multiple valuation approach i. AA. Balance zero guaranteed for each currency freely Not available freely types Controlling area currency is now calculated for all accounts (also non cost elements) types currency 3. does not include all 30 TCS Internal . S/4HANA 1503 vs 1605 vs 1511 S/4HANA S/4HANA S/4HANA Feature Finance Finance 1511 1503 1605 User defined currency types Additional currency types can be created in addition to SAP standard currency type with following features: Available Available 1.Real time currency conversion for all currency types are possible (with three (with eight 2. currency types) GL. Not support to deprecation. Currency conversion can be based on any source currency Activate derivation for GL items without Profitability Segment Not Not Possible to activate the derivation of profitability characteristics for income statement items Applicable applicable applicable even if posting is not made to CO-PA Note – includes key changes.FI-AR and CO & GL allocations. "Clearing like logic" amounts are selected with historical data( supports open item-FI. currency in non-leading ledger can be different from leading ledger 5. ML and CO settlement) types) 4.FI-AP. Agenda Process Demo 31 TCS Internal . They also need to report per local tax in Germany. cost allocation and reporting of same Note: Demo is based on S/4HANA 1511 32 TCS Internal .Demo 01 01 Postings in Universal Journal  Post to expense cost center Scenario description: A company is needs to report at group level as per IFRS. The scenario demonstrates posting of various types of expenses. They are using multiple ledgers to manage group and local reporting. Process flow: posting of expenses to cost center 1 2 3 Post provision for rent Electricity expense posting Advertisement expense expenses via recurring Primary cost Bank Accountant to facility cost centre posting to internal order document 4 5 Reject Electricity cost centre Settlement to COPA for Cost allocations allocation to production marketing costs cost centres 6 7 8 ABAP query Reporting FI line item Universal Fiori app display Journal SAP transaction 33 TCS Internal . Process demo: posting of expenses to cost center Path/Transact Description Impact /Additional information Recording file ion Code FB50 Enter G/L Account Document Electricity expense posting to facility cost centre S4 HANA FIN-P01- S4C_Post to Cost FB03 Display FI document Display FI document along with cost objects center and allocation Electricity cost centre allocation to production cost (03:22) KSV5 Distribution centres FB50 Enter G/L Account Document Advertisement expense posting to internal order S4 HANA FIN-P02- S4C_Marketing KO88 Individual Processing Settlement to COPA for marketing costs expenses & settlement (02:23) FDS1 Recurring Document S4 HANA FIN-P03- F.14 Execute S4C_Recurring Entries (02:01) SM35 Execute batch Process batch to post recurring document S4 HANA FIN-R03- FAGLL03H Display line item browser S4C_FAGLL03H FI line item browser (02:09) 34 TCS Internal . Demo 02 01 Posting in extension ledger a) Post document is extension ledger for reversal of expenses Scenario description: For internal reporting. part of expenses are transferred to a provisional account. Note: Demo is based on S/4HANA 1511 35 TCS Internal . Process flow – Posting in extension ledger Post to cost centre in Display line items in Compare financial ledger EL extension ledger statement in 0L and EL Bank Accountant Impact /Additional Path/Transaction Code Description Recording file information Enter G/L Account FB50L Document for Ledger Approve S4 HANA FIN-P02-S4C- Group Reject Manager Reposting in extension ledger (02:27) FB03 Display FI document SAP transaction 36 TCS Internal . Agenda Configuration Demo 37 TCS Internal TCS Internal . controlling area.Agenda 01 01 GL configuration demo in S/4HANA a) Definition and assignment of company code. operating concern b) Ledger and currency set-up c) Document types and number ranges d) Data aging e) Note: does not include all configuration related of GL accounting 38 TCS Internal . type and number ranges can be used for S4 HANA FIN-5-S4C- Assign number ranges for >Document->Document Types->Define leading and none leading ledger.11) for Profitability Analysis (CO-PA). For none Document types and none leading ledgers. company for which the sales market has a Create Operation Concern Define Operating >Controlling->Create Operating Concern uniform structure. Delete. It is the valuation level Concern(00. S4 HANA FIN-2-S4C- It will give legal reporting and any other >Financial Accounting->Edit. Chart of accounts can be used Define and assign Chart >Master Data->G/L Accounts- different company codes. SPRO->Enterprise Structure->Definition. Configuration demo Path Description Impact /Additional information Recording file Represents an organizational unit in S4 HANA FIN-1-S4C- SPRO->Enterprise Structure->Definition. of accounts(00:54) >Preparations S4 HANA FIN-4-S4C- SPRO->Enterprise Structure->Definition. (00:12) SPRO->Financial Accounting (New). Common transactions same document >General Ledger Accounting (New). Document Types for Entry View in a leading ledger specific postings a different number ranges (00:45) Ledger document type will be assigned. 39 TCS Internal . Define Company code Define Company Code local reporting . Check Company Code (00:46) SPRO->Financial Accounting (New)- Chart of accounts will provide all list of GL S4 HANA FIN-3-S4C- >General Ledger Accounting (New)- Define chart of accounts accounts. Controlling area provides information for Define Controlling area Define Controlling Area >Controlling->Maintain Controlling Area internal management decision. Copy. Ledgers are created S4 HANA FIN-8- Define Settings for Journal >Financial Accounting Global Settings and assigned to company codes. Accounting principles are defined for S4 HANA FIN-7- > Financial Accounting Global Settings each GAAP which is to be implemented Define accounting principles S4C-Define (New) -> Ledgers ->Parallel in general ledger. For extension ledger it S4C-Posting period Posting Periods->Posting Periods. fiscal and currency Settings for Journal Entry Ledger year variant is defined for the ledgers settings (02:53) 40 TCS Internal . accounting principle. SPRO->Financial Accounting (New). S4C-Define ledgers Entry Ledger (New)->Ledgers->Ledger->Define Currencies. Configuration demo Path Description Impact /Additional information Recording file SPRO->Financial Accounting (New)- >Financial Accounting Global Settings Separate posting period variant needs to S4 HANA FIN-6- (New)->Ledgers->Fiscal Year and Define variants for open be assigned. This configuration is for parallel accounting Accounting Accounting -> Define Accounting required to be done in both parallel principles (00:26) Principles ledger and parallel accounts approach. posting periods should different from base ledger. New transaction . variant (00:24) >Define Variants for Open Posting Periods SPRO -> Financial Accounting (New) . > Financial Accounting Global 09-S4C-Define assign ledgers to ledger Settings (New)->Ledgers->Define ledger group group Parallel accounts approach: ledger Ledger Group (00:41) groups are assigned to same ledger. 10-S4C- b)Possible to define default ledger for >Financial Accounting Global Integration of Integration of Controlling CO. New transaction: a)Define and assign document type for financial postings S4 HANA FIN- originated due to CO transactions SPRO -> Financial Accounting (New). data Settings (New)->Ledgers. Controlling with Financial Accounting originated during CO transactions is >Integration of Controlling with with Financial [structure node] posted to all ledgers Financial Accounting Accounting c)Version ‘0’ assigned to leading ledger. (01:13) Data from the ledger assigned to version 0 is used for all CO transactions 41 TCS Internal . If default ledger is blank. S4 HANA FIN- Define ledger group and are assigned to different ledger.Configuration demo Path Description Impact /Additional information Recording file Parallel ledger approach: ledger groups SPRO-> Financial Accounting (New). Configuration demo Path Configuration Additional information Demo file Node Financial Accounting Define Life for Specify document life in days for the company code S4 HANA FIN-11-S4C-FI Data aging (New) -> Financial Account and account type (00:29) Accounting Global Types Settings (New) -> Tools - > Data Aging for Accounting Documents Define Life for Specify document life in years and days for the Document company code and document type Types 42 TCS Internal . Demo 02 01 List of impacted configuration transaction in S/4HANA 43 TCS Internal . (new) Customer Fields Ledger Accounting activation of specific functions might be required. For example – cost of sales accounting activation required for functional area FI global settings Ledgers Real-Time Integration of Removed No need of real time integration as FI (new) Controlling with Financial and CO data is posted to single table Accounting [structure node] ACDOCA (universal Journal) 44 TCS Internal . However. Impacted IMG transactions – new / removed/ replaced Area Path Description Removed Additional Info/ or New Impact FI global settings Ledgers Fields -> Standard Enter Functional Area in Cost Removed Functional area derived via substitution (new) Fields -> Functional Area Element Master Data OR via account assignment object OR for Cost of Sales -> via GL account OR can be entered Accounting -> Enter during financial posting Functional Area FI global settings Ledgers -> Fields -> Display Scenarios for General Removed Available by default. Removed Ledger for a Company Ledgers >Define and Activate Non. Code’ Leading Ledgers 45 TCS Internal . Impacted IMG transactions – new / removed/ replaced Area Path Description Removed or Additional Info/ New Impact FI global settings SPRO-Financial Accounting New configuration (new) (New)->Financial Accounting node ‘Define Settings Define Ledgers for General Global Settings (New)->Ledgers. Removed for Journal Entry Ledger >Define Currencies of Leading Ledger’ Ledger FI global settings SPRO-Financial Accounting New configuration (new) (New)->Financial Accounting node ‘Deactivate Define and Activate Non-Leading Global Settings (New)->Ledgers. Removed for Journal Entry Ledger Accounting >Define Ledgers for General Ledger’ Ledger Accounting FI global settings SPRO-Financial Accounting New configuration (new) (New)->Financial Accounting node ‘Define Settings Define Currencies of Leading Global Settings (New)->Ledgers. data originated during CO transactions is posted to Accounting [structure node] all ledgers c) Version ‘0’ assigned to leading ledger. Data from the ledger assigned to version 0 is used for all CO transactions FI global settings Ledgers -> Define Settings Ledgers are created and assigned to company codes. If default ledger is Financial Accounting blank. Impacted IMG transactions – new / removed/ replaced Area Path Description Removed Additional Info/ or New Impact FI global settings Ledgers -> Integration of New a) Define and assign document type for financial postings (new) Integration of Controlling with originated due to CO transactions Controlling with Financial b) Possible to define default ledger for CO. accounting principle. (new) ledger for Journal Entry New Currencies. fiscal year variant is defined Ledger for the ledgers FI global settings Ledgers -> Deactivate Ledger Non-leading ledgers can be deactivated for a company code for (new) ledger for a Company New future years Code 46 TCS Internal . Impacted IMG transactions – new / removed/ replaced Area Path Description Removed or New Additional Info/ Impact FI global settings (new) Ledgers -> ledger Assign Scenarios and Removed Customer Fields to Ledgers FI global settings (new) Document -> Define Document Types for Removed Document types General Ledger View FI global settings (new) Document -> Documents in General Document number Removed Ledger View [structure node] ranges General Ledger Master Data -> G/L Create Cost Elements Removed Accounting (New) Accounts General Ledger Periodic Processing FAGLFLEXT table Transaction GCA6 has Accounting (New) -> Allocation Define Field Usage for replaced by ACDOCT been replaced by Distribution/ assessment view which is based on transaction GLGCA6 ACDOCA table General Ledger Periodic Processing Rollup [structure node] removed Accounting (New) 47 TCS Internal . 48 TCS Internal . Impacted IMG transactions – new / removed/ replaced Area Path Description Removed or Additional Info/ New Impact Preparations for Basic Settings -> Assign Consolidation (New) Scenarios and Customer Fields Removed to Ledgers -> Assign Scenarios and Customer Fields to Ledgers Financial Accounting Tools -> Data aging for Data aging replaces archiving Global Settings (New) accounting documents function Specify the minimum number of days Consistency should be before accounting New maintained during definition of document can be the age for the source document. moved to cold area related objects and accounting document. Agenda 01 Summary 49 TCS Internal . Summary Universal Journal S/4HANA Innovations (what is new)  Universal Journal with integrated data model for FI. CO. AA. Acct based COPA. ML  Integrated legal and management accounting with merged GL account and cost element  Extension ledger for management reporting 50 TCS Internal . In CONCLUSION…S/4HANA Core Changes & Benefits Fiori Core Changes Simplified business Real time Improved user Improved Simplified process analytics experience performance architecture 51 TCS Internal TCS Internal . bellamvankata@tcs. Thank You A presentation by TCS EntSol . mailto: abhilasha.com OR malleswarareddy.SAP CoE For more information on this presentation.com Last updated on 24-08-2016 IT Services Business Solutions Consulting .seth@tcs.