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S/4HANA
Enterprise Management 1610
24 February 2017
http://ibm.biz/S4H_Learn1610
IBM Proprietary | © 2017 IBM Corporation 1
Your Presenters
Devraj Bardhan
Senior Enterprise Architect SAP S/4HANA
Global Business Services
devraj.bardhan@de.ibm.com
@devbard (Twitter)
Taro Kokott
SAP Finance Consultant
Global Business Services
Taro.kokott@de.ibm.com
Bhartendu Agarwal
Senior SAP FICO Consultant
Global Business Services
bhartendu@in.ibm.com
IBM Proprietary || ©
IBM Proprietary © 2017
2017 IBM
IBM Corporation
Corporation 2
Finance: Business Pain
Acquisition
Legal State of the art
Finance? Planning
Risk
Margin Performance
Actuals Predefined Data sets & Out- Real-time insights into Legal Reporting / Profitability Analysis
Universal Journal ACDOCA of-the box Analytics Subledgers Hard & Soft Close by Market Segment
Planning ACDOCP
General Ledger
All Value flows in one single
Ledger Company Account
Profit
Center
Amount
1
Amount
2
Amount
3
… source
Multi-dimensional GL
Profitability
Parallel Ledger
Operating Market
…
Concern Segment
Custom defined fields
Management Accounting Universal Journal Extension Ledger
ACDOCA
Controlling Cost Amount Amount Coding
Area Element 1 2 Block
… 999.999 line items
Asset Accounting
Unified, extensible currencies
Universal Journal 1605 Multiple functional enhancements Rich multidimensional, high-performance GL for comprehensive reporting
1605 Unified Currencies and Transfer Pricing Facilitated setup and maintenance for increased transparency
Subsequent introduction of parallel ledgers Enhanced flexibility in adoption
Profitability Analysis 1605 Visibility of Details and Variances in Universal Journal Soft Close / Continuous Accounting on Entity Level: FI and CO Close match by
Revenue Recognition reflected in Universal Journal for project-based design
services and real-time derivation of characteristics Costs and revenues always match, Profitability reporting always up to date
Receivables KPI Cockpit for Managers (FI-CA) Increased working efficiency
Management Silent Factoring (FI-CA) Improved performance, transparency, and auditability
Payables Management Integration to Business Networks Increased automation, reduced error-handling efforts
Reporting Production Cost Analysis Improved variance tracking and transparency to identify potential issues
Embedded Tax Compliance Apps Ensure compliance
Statutory Reporting Framework Streamline and bundle reporting obligations
Central Finance Replication of Changes, Mass Enablement, and Reconciliation Strengthen central steering capabilities on a secured basis
Reporting
Subsequent
Classic GL in SAP
Universal Journal Introduction
ERP
Parallel Ledgers* Document Split**
SAP ERP FI (BSEG) local Crcy 2nd local Crcy 3rd local Crcy
Three local currencies in FI (including NewGL)
CO (COEP) local (Obj) Crcy CO Area Crcy
Two currencies in CO
Three currencies in Material Ledger ML local Crcy 2nd ML Crcy 3rd ML Crcy
Universal Journal Local Global 1st free 2nd free 3rd free 4th free 5th free 6th free 7th free 8th free
(ACDOCA) Crcy Crcy Crcy Crcy Crcy Crcy Crcy Crcy Crcy Crcy
SAP S/4HANA Finance
Local currency: ACDOCA field name = HSL, currency type 10 ledger-dependent
Global currency: ACDOCA field name = KSL, currency type of controlling area
Freely Defined Currencies 1–8
– You can configure any currency type.
– There is no dependency on the currency types of the leading ledger.
– ACDOCA fieldnames OSL, VSL, BSL, CSL, DSL, ESL, FSL, and GSL.
If you activate parallel valuations with transfer prices, then additional rules/constraints apply.
Legal perspective looks at the transactions from the point of view of the affiliated companies
including markups
Group valuation looks at the whole group eliminating markups (that is, intercompany profits)
Profit center valuation treats profit centers as if they were independent companies, using
negotiated prices
SAP ERP had three perspectives, but the solution had significant short-comings.
SAP S/4HANA Finance, OP 1605 now delivers these capabilities, but with a much more streamlined, consistent approach in the universal journal.
In earlier releases of SAP S/4HANA and SAP S/4HANA Finance only legal valuation was supported.
Account-Based CO-PA
Significant enhancements delivered – closing critical gaps of the past and providing new real-time insight
Split of cost-of-goods-sold posting on multiple accounts (by cost component)
Split of production variances posting on multiple accounts (differentiation of price/quantity effects)
Three new quantity fields in the line items and BAdI for conversion of logistic quantities to common quantities
(for example, products sold in different box sizes—but KPI in Finance is calculated on tons/KG of products)
Real-time derivation of market segment information from cost postings (cost center, order, and WBS element)
Costing-Based CO-PA
Product continues to exist and be supported, but no enhancements with SAP Accounting
Customers can run account-based and costing-based CO-PA in parallel
Existing customers should assess if account-based CO-PA can cover their needs
If yes, consider switching to account-based CO-PA. If no, continue using costing-based CO-PA.
Profitability characteristics on For unbilled revenues or WIP, customer wants to see the project,
balance sheet items* region, customer category Available x Not available
Breakdown of COGS into fixed and variable, as well as different Not yet fully available Available
Cost component split/COGS split kind of costs, such as material, administration, and overhead costs.
Sales conditions can be used to calculate contribution margin level, x Not available Available
Sales conditions such as sales commissions, calculated freight or discounts, which
are not posted in G/L
After changes of profitability characteristics such as division, it is Available Available
Realignment* possible to derive for historic data new values in CO-PA
Creation of a sales order item generates expected revenue and x Not yet available Available
Order entry COGS entry in profitability
Instant Insight
Depreciation posting in B/S and P&L by single asset
Reporting on any CO object by single asset (for example, depreciation on cost center by asset)
Liquidity Management
• Pre-configured app ―Liquidity Forecast Detail‖
One Exposure
• Integration to MM and SD
Local Central Finance Replicate open item and automatically/technically clear in Similar to existing ALE scenarios, these are customer-
local system: specific scenarios where consistency in certain local
Open item
SLT
Open item • Centralized open item management in Central logistics processes must be determined in a case-by-case
Finance system analysis.
Tech • No Central Finance-specific technique for posting
Clearing Pilot available starting 1605 – see note 2346233 for restrictions
Cleared back to the source systems (project solutions can be
based on existing scenarios) *ALE, RFC, other
• Neste is the biggest company in Finland engaged in Oil refining and retail business with over 15 billions euros in revenue.
• S/4 Finance was selected by Neste to replace its aging multiple systems.
Project
Details
• S/4 Finance Modules implemented successfully
• Pilot phase went live on 01st November 2016, further 4 roll outs planned
• 1511 Version implemented with IS-Oil
• One of the first S/4 implementations in Europe
Solution
• Greenfield implementation with 15 users for Pilot
Details
• Implementation of logistics modules to 4 Multiple day view in one page
• Testing, testing, it is never enough! Plan out the detailed testing plan and execute properly
• Fiori apps : It takes time, choose apps carefully and provide enough time to implement and test
Lessons
• Do not just migrate existing services and processes – optimize them
learned
• Don’t compromise on training, ensure project teams are trained on S/4 finance and are well aware of the functionalities available
S/4HANA
Enterprise Management 1610
IBM Proprietary || ©
IBM Proprietary © 2017
2017 IBM
IBM Corporation
Corporation 25
Learning Hub Courses on Finance
Read the Learning Hub blogs at: http://ibm.biz/LH_S4H_FIN on how Some of the Finance Course Names
to Search, Find, and Complete Learning Hub Courses For S/4HANA S4F00 - Overview of SAP S/4HANA Finance
Finance Courses – Search for ―S4F*‖
S4F01 - Financial Accounting in SAP S/4HANA.
Or ―1610 Finance‖ to list all Early Knowledge Transfer courses (EKT)
S4F02 - Management Accounting in SAP
S/4HANA.
S4F03 - Finance Migration to SAP S/4HANA
S/4HANA Overview S/4HANA Business Scope Best Practice Scope S4HANA Product Scope Innovation Key Use Cases
Join the S4HANA Community on SCN Use Case Blog on SCN S/4HANA Cookbook SAP S/4HANA Road Map
S4HANA 1503 White Paper and Pov (for reference only) https://w3-connections.ibm.com/blogs/50d220c6-050f-46ba-b373-
6e4cc9674785/entry/S_4_HANA_and_Simple_Finance_PoV?lang=en_us
SCN Blog on 1610 Use case (Business and Technical View https://blogs.sap.com/2016/11/09/s4hana-1610-use-case-series-intro/
Points including topics like AATP and EWM)
2015 POV
https://ibm.biz/IBM_CFO_Meets_S4_HANA_Finance