SAP Simple Finance (1511)

training

Nitin G. All rights reserved

SAP Simple Finance add on
Overview of SAP HANA
Overview of the SAP Simple Finance add on
The Universal Journal
Migration to the SAP Simple Finance add on
The New Asset Accounting
Results of the migration

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SAP Simple Finance add on
Overview of SAP HANA
Overview of the SAP Simple Finance add on
The Universal Journal
Migration to the SAP Simple Finance add on
The New Asset Accounting
Results of the migration

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Data Aging
Defining Lives for Account Types

You can define a minimum life for accounts in days. This minimum
life determines the earliest period after which financial accounting
documents (data aging object FI_DOCUMENT) can be moved to
the cold database area for all accounts with a specific account type.
During data aging, the system uses the specified account lives as
well as the relevant document lives to determine the relevant
financial accounting documents. To define a minimum life for an
account type, specify the following:

Company code

Account type

Account life in days

To define the same account life for more than one company code
or account type, you can use * as a placeholder. If more than one
entry applies for the same account, the system always uses the most
exact entry.

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 Migration to Simple
Finance add on

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 Additional Considerations for Migration

Not all SAP ERP 6.0 enterprise extensions (for

example, EA-PS), industry solutions (for example, IS-
CWM, ECC-DIMP, Fl-CA, and Fl-CAX), or SAP ERP
6.0 add-ons are supported for use with Simple
Finance

For an up-to-date overview of the compatible
enterprise extensions, industry solutions and SAP
ERP add-ons released for usage together with the
Simple Finance add-on, see SAP Note 1968568 and
add-on SAP Note 1976158.

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Additional Ledger Concept

With New GL SAP had introduced parallel ledger
concept:

Leading Ledger 0L

Non Leading Ledger X1

In early 2015 SAP released SFIN 2.0 and introduced
Appendix Ledger (AL) concept

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Leading Ledger

Leading ledger 0L still stays in SFIN 2.0 and US
Customers should use this primarily for US GAAP
reporting. However the two underlying physical tables in
which all the transactions are stored, FAGLFLEXA (line
item table) and FAGLFLEXT (totals table) are no longer
there and are replaced by a new table ACDOCA which is
the detailed line item table. This table has 360 + fields and
provides the basis for majority of reporting in SAP both
statutory and managerial going forward.

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Leading Ledger

BSEG table will still be there though I have a feeling that this is
probably temporary and over a period of time ACDOCA will
be the solitary table that stores all Financial/Managerial data. In
a perfect world why we should have more than two tables in
ERP systems for financials - one for master data and one for
transactions. With SFIN 2.0 almost every total table in SAP will
go away because totals can be done on fly as the application
logic runs on HANA database which is fantastically fast. 0L
Leading Ledger by default gets assigned to all legal entities (Co
Codes in SAP) and no change to that in SFIN 2.0. SAP
document number that gets generated when you post
financials postings is now unique regardless of which ledger
you post which is different to multiple document numbers in
previous versions.

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Non Leading Ledger

Non leading ledgers still stay and can be used for select
legal entities that need to report in different accounting
standards. Normally when you post an Accounting
document, you do not post to a ledger but to a ledger
group. Ledger group is where you group the Leading
ledger and associated Non leading ledgers so that you
enter Journal entries only once and all the ledgers within
that ledger group get updated with values. If you have to
make adjustment postings for different accounting
standards you do that only in specific Non leading ledgers.

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Non Leading Ledger

Similar to Leading Ledgers, Non Leading Ledger financial
postings that were previously stored in FAGLFLEXT and
FAGLFLEXA in ECC 6 will be replaced with new table
ACDOCA in SFIN 2.0. You can have a different fiscal
calendar for the same Legal entity one for leading
ledger and one for non- leading ledger and there is no
change to that. You can continue to close periods in Non
leading ledger though they are open in Leading ledger and
vice versa. So basically the functionality for Leading and
Non leading ledgers did not change though the underlying
tables changed.

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Appendix Ledger

This is a new concept that was introduced in SFIN 2.0.
These are new ledgers that sit on top of the Leading
ledger. When you create an Appendix ledger in SAP, you
flag it as Appendix Ledger and link that to a base leading
ledger. Unlike Non leading ledger, Appendix Ledger
cannot have a separate fiscal year different to Leading
ledger but at the same time, you can open and close fiscal
periods separately from Leading ledger.

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Appendix Ledger

An appendix ledger is assigned to a standard ledger and
inherits all journal entries of the standard ledger for
reporting. Postings made explicitly to an appendix ledger
are visible in that appendix ledger but not in the
underlying standard ledger. This concept can be used to
avoid duplication of journal entries if many business
transactions are valid for both ledgers and only a few
adjustments are required in the appendix ledger.

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Appendix Ledger

All the financials postings that happen in Leading ledger
0L are available for reporting purpose in Appendix Ledger
though they are not physically updated. In addition to that,
you can manually post management reporting adjustments
directly in Appendix Ledger. Please note that in case of
Non Leading Ledgers, you can post manual postings and
system generated postings like foreign currency valuations
etc but it is not the case with Appendix ledger

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Use of Appendix Ledger

The main use case is to give business a Management
Ledger without impacting your Financial/Statutory
reporting ledgers like Leading and Non leading ledgers.
You do not get AP/AR details in AL and the only way you
update Appendix ledgers is through manual postings with
limited SAP transactions.

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Example

Company code : 1000

Leading Ledger - 0L

Non Leading Ledger N1

Appendix Ledger A1 FB50 posting and see its
affect on ACDOCA table

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Example contd..

We see entry for both 0L and N1 ledger but not A1 as it is an appendix ledger.

Now we will do a ledger specific posting in ledger A1 itself using FB50L and compare
how ACDOCA looks like:

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Example contd..

Now as you can see the ledger specific entry gets posted
only to A1 ledger, which is similar to behavior in SAP
New GL.

The key difference is that for appendix ledger entries do
not flow in all cases, only when ledger specific posting are
made.

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Summary

So the most profound change with using appendix ledger will be in
reduction of data volume. You will not have an N multiple number of
entries based on the ledger defined. Also the appendix ledger will show the
entries of main ledger for reporting.

Suppose if the parallel ledger / Non leading defined in your current
landscape does not have too many difference in Accounting principles
(may be the accounting GAAP regulation are similar) and the number of
Adjustment entries are very few ( say just ~ 20-30)

Then using an appendix ledger instead of an standard ledger / New GL
parallel ledger will provide a data reduction by almost 100 %.

This will be a key benefit for organization having multiple entities in a single
client.

Another criteria will be the use of New asset accounting and having cases
where we have some asset posted to only a single GAAP / Accounting
principle.

If these scenarios are present, then you cannot use appendix ledger to
maintain those.

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 Q&A

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