SAP S4 HANA Finance - GL Accounting - V 2.0

Finance in SAP S/4 HANA –General Ledger Accounting (based on S/4HANA 1511) August’2016 1 TCS Internal | Copyright © 2015 Tata Consultancy Services Limited Objective Objective The objective of this presentation is to get a brief understanding of what has changed in General Ledger Accounting in S/4HANA. 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 on premise edition 1511 11/2016 02/2016 05/2016 S/4HANA on premise edition 1610  Finance and logistics innovations  On-premise editions 02/2016 FPS S/4HANA Finance SAP Simple Finance Add-On 1.0 S/4HANA on premise edition 1503 (aka sFIN 2.0) 03/2015 05/2015 11/2015 S/4HANA on premise edition 1605 (aka sFIN 3.0) 08/2015 05/2016 02/2016 SP level SP level 5 TCS Internal TCS Internal  Finance innovations 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 Industry and line of business specific applications to enhance core functions Line of business specific 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 S/4HANA Core S/4HANA LoB products SAP Accounting powered by SAP HANA BPC for S/4HANA (Planning) SAP Cash Management powered by SAP HANA SAP Central Finance 7 Name changes  Smart finance -> simple finance -> S/4HANA Finance OPE  Central journal -> central finance  Integrated business planning for finance -> BPC for S/4HANA TCS Internal . Deployment Architecture HANA Live/ Embedded Analytics BO Fiori SAP ECC SAP ECC HANA DB 1 2 3 Any DB 1 2 3 2 Fiori S/4HANA HANA DB 1 Any DB 1 2 3 Middleware HANA Live/ Embedded Analytics S/4HANA Non-SAP 3 HANA DB 1 2 3 Simplified Landscape Finance Process Central Finance 1 Transactions 8 2 Closing 3 Analytics TCS Internal TCS Internal BO SAP LT replication server . SAP S/4HANA – Core Changes Suite on HANA SAP ERP S/4HANA Finance SAP Simple Finance Onpremise edition YYDD Fiori HANA DB SAP ERP Core changes HANA DB 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 . single source of truth for FI including AA. ML  Merged GL account and cost element 11 TCS Internal . CO.General Ledger Accounting in S/4HANA  Universal journal. acct based CO-PA. 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 . 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. version ‘0’ is assigned to leading ledger  Document splitting is available in Universal Journal  During postings to GL accounts for secondary and primary costs. 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 . segment.Universal Journal  Multiple dimension reporting in Universal Journal  Profit centre. business area.e. AP.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.Foreign Currency Valuation.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 . Universal Journal  During migration from classical GL. 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 . . stationary Indirect materials Sub-contracting External services Inventory consumption COGS Revenue Cash and Bank …. Cost centre Internal order Manufacturing Orders Sales order Projects Universal Journal Assessment Settlement Settlement Settlement Settlement Direct postings 17 Type of Postings Financial posting Controlling postings TCS Internal Reporting dimensions Segment Profit centre Functional area Business area CO objects COPA characteristics .Universal Journal Revenue & Costs             Salary posting Depreciation posting Material procurement Overheads – travel. training. Ledger in Universal Journal Types of Ledger Standard Extension Leading Non-leading Normally used for group reporting Normally used for local GAAP and local tax 18 Extension Ledger (aka appendix ledger) Used for Management and internal reporting 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 . Ledger in Universal Journal . new ledger group would need assignment of two ledgers with two fiscal years TCS TCS Internal Internal .Example Ledger Group – 0L Jan-Dec Key points E1-Extension 0L-Leading Ledger IFRS E2-Extension Apr-Mar E3 Extension L1-Non Leading Ledger Ledger Group – Z1 Jan-Dec Local GAAP A1-Non Leading Ledger (Representative ledger) 20  Ledger group is assigned to ledger  Extension ledger is assigned to a base ledger. which can be leading or non-leading  In case of non-leading ledger has different fiscal year and asset accounting is used. 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.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.name space should start with Y* and Z*  Filled by foreign currency valuation run. Currency in Universal Journal Prior to S/4 HANA Finance (FAGLFLEXA/ BSEG) S/4HANA (1511) Controlling (COEP) Universal Journal (ACDOCA) TSL Transaction Currency WSL Document Currency HSL Local Currency WRBTR Transaction currency WOGBTR Object Currency DMBTR Company Code Currency WKGBTR CO Area Currency KSL Global Currency DMBE2 2nd Local Currency OSL 1st Additional currency DMBE3 3rd Local Currency VSL 2nd Additional currency CO_OSL 22 TCS Internal CO Object Currency . General Ledger Accounting in S/4HANA 02 01 GL Account and cost element master data 23 TCS Internal . must be defined in OKB9  Cost element deletion not possible.General Ledger Account and Cost Element in S/4HANA  All cost elements. 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. CSKB along with SKA1. GL accounts can be blocked for postings  Cost element still updated in master data tables CSKA. 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. 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 . created with primary cost element category S Secondary costs P&L accounts. created with secondary cost element category Can be created as statistical cost elements (category 90) in fixed assets and inventory accounts P&L accounts.General Ledger Account and Cost Element in S/4HANA GL Account Types X Balance Sheet Account N Non-operating income or expense P Primary cost or revenue P&L accounts. not created as cost elements GL account Demo file: S4 HANA FIN-P01-S4C-FS00 GL Master data creation 25 TCS TCS Internal Internal . General Ledger Account and Cost Element – Obsolete Transactions Area Description Removed or New Automatic Creation of Primary and Secondary Cost Elements [structure node] Removed Cost Element Accounting Create Selection Variants for Cost Elements Removed 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 Elements Removed Cost Element Accounting Develop Enhancements for Cost Element Master Data Removed Cost Element Accounting Path 26 TCS Internal Additional Info/ Impact . 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 . ML. group valuation an profit center valuation with transfer pricing Not available Available Not available Feature Data Model Changes in FIN Line item based processing and reporting Elimination of index and aggregate tables Creation of compatibility views to ensure reporting/ processing as per old data structure Cost Elements Functionality not available in SAP S/4HANA (functional equivalent available) Note – includes key changes.e.Universal Journal Universal Journal is a new ledger is S/4HANA which contains data from FI. Acct based CO-PA Applicable Applicable Applicable Transfer Prices/ Parallel Delta Versions Multiple valuation approach i.S/4HANA vs S/4HANA Finance S/4HANA Finance 1503 S/4HANA Finance 1605 S/4HANA 1511 Applicable Applicable Applicable Applicable Available Applicable Business Partner In S/4 HANA business Partner replaces customer/ vendor master. does not include all 29 TCS Internal . CO. AA. All accounts receivables and payables transactions are reflected against Business Partner Not applicable Not applicable Applicable General Ledger . Balance zero guaranteed for each currency Controlling area currency is now calculated for all accounts (also non cost elements) 3.Real time currency conversion for all currency types are possible 2.S/4HANA 1503 vs 1605 vs 1511 S/4HANA Finance 1503 S/4HANA Finance 1605 S/4HANA 1511 User defined currency types Additional currency types can be created in addition to SAP standard currency type with following features: 1. "Clearing like logic" amounts are selected with historical data( supports open item-FIGL. does not include all 30 TCS Internal . ML and CO settlement) 4.FI-AP. Not support to deprecation. Currency conversion can be based on any source currency Not available Available (with eight freely types currency types) Available (with three freely types currency types) Activate derivation for GL items without Profitability Segment Possible to activate the derivation of profitability characteristics for income statement items even if posting is not made to CO-PA Not applicable Applicable Not applicable Feature Note – includes key changes. currency in non-leading ledger can be different from leading ledger 5.FI-AR and CO & GL allocations. Agenda Process Demo 31 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. They are using multiple ledgers to manage group and local reporting. They also need to report per local tax in Germany. The scenario demonstrates posting of various types of expenses. cost allocation and reporting of same Note: Demo is based on S/4HANA 1511 32 TCS Internal . Process flow: posting of expenses to cost center 1 2 Electricity expense posting to facility cost centre Primary cost Bank Accountant 4 Cost allocations Electricity cost centre allocation to production cost centres 3 Post provision for rent expenses via recurring document Advertisement expense posting to internal order 5 Reject Settlement to COPA for marketing costs 7 6 Reporting SAP transaction FI line item display 33 TCS Internal ABAP query Universal Journal 8 Fiori app . Process demo: posting of expenses to cost center Path/Transact ion Code Description Impact /Additional information FB50 Enter G/L Account Document Electricity expense posting to facility cost centre FB03 Display FI document Display FI document along with cost objects KSV5 Distribution Electricity cost centre allocation to production cost centres FB50 Enter G/L Account Document Advertisement expense posting to internal order KO88 Individual Processing Settlement to COPA for marketing costs FDS1 Recurring Document F.14 Execute SM35 Execute batch FAGLL03H Process batch to post recurring document Recording file S4 HANA FIN-P01S4C_Post to Cost center and allocation (03:22) S4 HANA FIN-P02S4C_Marketing expenses & settlement (02:23) S4 HANA FIN-P03S4C_Recurring Entries (02:01) S4 HANA FIN-R03S4C_FAGLL03H FI line item browser (02:09) Display line item browser 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. Note: Demo is based on S/4HANA 1511 35 TCS Internal . part of expenses are transferred to a provisional account. Process flow – Posting in extension ledger Bank Accountant Post to cost centre in ledger EL Display line items in extension ledger Path/Transaction Code Description FB50L Enter G/L Account Document for Ledger Group Reject Manager FB03 SAP transaction Compare financial statement in 0L and EL Impact /Additional information Approve Display FI document 36 TCS Internal Recording file S4 HANA FIN-P02-S4CReposting in extension ledger (02:27) . Agenda Configuration Demo 37 TCS Internal TCS Internal . Agenda 01 01 GL configuration demo in S/4HANA a) b) c) d) Definition and assignment of company code. controlling area. operating concern Ledger and currency set-up Document types and number ranges Data aging e) Note: does not include all configuration related of GL accounting 38 TCS Internal . Common transactions same document type and number ranges can be used for leading and none leading ledger. S4 HANA FIN-1-S4CDefine Operating Concern(00. It is the valuation level for Profitability Analysis (CO-PA). Delete. Check Company Code Define Company code It will give legal reporting and any other local reporting . For none leading ledger specific postings a different document type will be assigned. S4 HANA FIN-3-S4CDefine and assign Chart of accounts(00:54) SPRO->Enterprise Structure->Definition>Controlling->Maintain Controlling Area Define Controlling area Controlling area provides information for internal management decision. Copy. S4 HANA FIN-4-S4CDefine Controlling Area (00:12) Assign number ranges for none leading ledgers.11) SPRO->Enterprise Structure->Definition>Financial Accounting->Edit. S4 HANA FIN-5-S4CDocument types and number ranges (00:45) SPRO->Financial Accounting (New)>General Ledger Accounting (New)>Document->Document Types->Define Document Types for Entry View in a Ledger 39 TCS Internal . Chart of accounts can be used different company codes. S4 HANA FIN-2-S4CDefine Company Code (00:46) SPRO->Financial Accounting (New)>General Ledger Accounting (New)>Master Data->G/L Accounts>Preparations Define chart of accounts Chart of accounts will provide all list of GL accounts.Configuration demo Path Description Impact /Additional information Recording file SPRO->Enterprise Structure->Definition>Controlling->Create Operating Concern Create Operation Concern Represents an organizational unit in company for which the sales market has a uniform structure. S4 HANA FIN-7S4C-Define Accounting principles (00:26) New transaction . For extension ledger it should different from base ledger.Configuration demo Path Description Impact /Additional information Recording file SPRO->Financial Accounting (New)>Financial Accounting Global Settings (New)->Ledgers->Fiscal Year and Posting Periods->Posting Periods>Define Variants for Open Posting Periods Define variants for open posting periods Separate posting period variant needs to be assigned. This configuration is required to be done in both parallel ledger and parallel accounts approach. fiscal year variant is defined for the ledgers S4 HANA FIN-8S4C-Define ledgers and currency settings (02:53) SPRO -> Financial Accounting (New) > Financial Accounting Global Settings (New) -> Ledgers ->Parallel Accounting -> Define Accounting Principles SPRO->Financial Accounting (New)>Financial Accounting Global Settings (New)->Ledgers->Ledger->Define Settings for Journal Entry Ledger Define Settings for Journal Entry Ledger 40 TCS Internal . Currencies. S4 HANA FIN-6S4C-Posting period variant (00:24) Define accounting principles for parallel accounting Accounting principles are defined for each GAAP which is to be implemented in general ledger.Ledgers are created and assigned to company codes. accounting principle. If default ledger is blank.Configuration demo Path SPRO-> Financial Accounting (New)> Financial Accounting Global Settings (New)->Ledgers->Define Ledger Group SPRO -> Financial Accounting (New)>Financial Accounting Global Settings (New)->Ledgers>Integration of Controlling with Financial Accounting Description Impact /Additional information Parallel ledger approach: ledger groups are assigned to different ledger. New transaction: a)Define and assign document type for financial postings originated due to CO transactions b)Possible to define default ledger for CO. Define ledger group and assign ledgers to ledger group Parallel accounts approach: ledger groups are assigned to same ledger. data originated during CO transactions is posted to all ledgers c)Version ‘0’ assigned to leading ledger. Data from the ledger assigned to version 0 is used for all CO transactions Integration of Controlling with Financial Accounting [structure node] 41 TCS Internal Recording file S4 HANA FIN09-S4C-Define ledger group (00:41) S4 HANA FIN10-S4CIntegration of Controlling with Financial Accounting (01:13) . Configuration demo Path Configuration Node Additional information Demo file Financial Accounting (New) -> Financial Accounting Global Settings (New) -> Tools > Data Aging for Accounting Documents Define Life for Account Types Specify document life in days for the company code and account type S4 HANA FIN-11-S4C-FI Data aging (00:29) Define Life for Document Types Specify document life in years and days for the company code and document type 42 TCS Internal . Demo 02 01 List of impacted configuration transaction in S/4HANA 43 TCS Internal . For example – cost of sales accounting activation required for functional area FI global settings (new) Ledgers Real-Time Integration of Controlling with Financial Accounting [structure node] Removed No need of real time integration as FI and CO data is posted to single table ACDOCA (universal Journal) 44 TCS Internal . activation of specific functions might be required.Impacted IMG transactions – new / removed/ replaced Area Path Description Removed or New Additional Info/ Impact FI global settings (new) Ledgers Fields -> Standard Fields -> Functional Area for Cost of Sales -> Accounting -> Enter Functional Area Enter Functional Area in Cost Element Master Data Removed Functional area derived via substitution OR via account assignment object OR via GL account OR can be entered during financial posting FI global settings (new) Ledgers -> Fields -> Customer Fields Display Scenarios for General Ledger Accounting Removed Available by default. However. Impacted IMG transactions – new / removed/ replaced Area Path FI global settings (new) SPRO-Financial Accounting (New)->Financial Accounting Global Settings (New)->Ledgers>Define Ledgers for General Ledger Accounting FI global settings (new) FI global settings (new) SPRO-Financial Accounting (New)->Financial Accounting Global Settings (New)->Ledgers>Define Currencies of Leading Ledger SPRO-Financial Accounting (New)->Financial Accounting Global Settings (New)->Ledgers>Define and Activate NonLeading Ledgers Description Removed or New Define Ledgers for General Ledger Accounting Removed Define Currencies of Leading Ledger Removed Define and Activate Non-Leading Ledgers 45 Removed TCS Internal Additional Info/ Impact New configuration node ‘Define Settings for Journal Entry Ledger’ New configuration node ‘Define Settings for Journal Entry Ledger’ New configuration node ‘Deactivate Ledger for a Company Code’ . Currencies. accounting principle. fiscal year variant is defined for the ledgers New Non-leading ledgers can be deactivated for a company code for future years New 46 TCS Internal . Data from the ledger assigned to version 0 is used for all CO transactions FI global settings (new) Ledgers -> ledger Define Settings for Journal Entry Ledger FI global settings (new) Ledgers -> ledger Deactivate Ledger for a Company Code Ledgers are created and assigned to company codes. If default ledger is blank. data originated during CO transactions is posted to all ledgers c) Version ‘0’ assigned to leading ledger.Impacted IMG transactions – new / removed/ replaced Area Path Description Removed or New Additional Info/ Impact FI global settings (new) Ledgers -> Integration of Controlling with Financial Accounting Integration of Controlling with Financial Accounting [structure node] New a) Define and assign document type for financial postings originated due to CO transactions b) Possible to define default ledger for CO. Impacted IMG transactions – new / removed/ replaced Area Path Description Removed or New FI global settings (new) Ledgers -> ledger Assign Scenarios and Customer Fields to Ledgers Removed FI global settings (new) Document -> Document types Define Document Types for General Ledger View Removed FI global settings (new) Document -> Document number ranges Documents in General Ledger View [structure node] Removed General Ledger Accounting (New) Master Data -> G/L Accounts Create Cost Elements Removed General Ledger Accounting (New) Periodic Processing -> Allocation Define Field Usage for Distribution/ assessment Transaction GCA6 has been replaced by transaction GLGCA6 General Ledger Accounting (New) Periodic Processing Rollup [structure node] removed 47 TCS Internal Additional Info/ Impact FAGLFLEXT table replaced by ACDOCT view which is based on ACDOCA table . . related objects and accounting document.Impacted IMG transactions – new / removed/ replaced Area Path Preparations for Consolidation (New) Basic Settings -> Assign Scenarios and Customer Fields to Ledgers -> Assign Scenarios and Customer Fields to Ledgers Financial Accounting Global Settings (New) Tools -> Data aging for accounting documents Description Removed or New Additional Info/ Impact Removed Specify the minimum number of days before accounting document can be moved to cold area 48 Data aging replaces archiving function New TCS Internal Consistency should be maintained during definition of the age for the source 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 process Real time analytics Improved user experience 51 Improved performance TCS Internal TCS Internal Simplified architecture . [email protected] Last updated on 24-08-2016 IT Services Business Solutions Consulting [email protected] OR malleswarareddy.Thank You A presentation by TCS EntSol .SAP CoE For more information on this presentation. mailto: abhilasha.