Finance in SAP S/4 HANA –

General Ledger Accounting

(based on S/4HANA 1511)

August’2016

| Copyright © 2015 Tata Consultancy Services Limited

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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.

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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

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Agenda

About S/4HANA

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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

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 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

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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

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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

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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

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Agenda

General Ledger Accounting in S/4HANA - Overview

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General Ledger Accounting in S/4HANA

 Universal journal, single source of truth for FI including AA, CO, acct based CO-PA, ML
 Merged GL account and cost element

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General Ledger Accounting in S/4HANA

01
01 Universal Journal

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 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

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 Universal Journal

 Multiple dimension reporting in Universal Journal

 Profit centre, segment, 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. 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

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 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- HANA optimization
 FAGLGVTR - Balance Carry forward (New)-Single transaction code for GL,AP,AR and AA balance carry
forward
 New transactions for reporting
 FAGLL03H – Line item browser
 FAGLB03 – Display balances
 FAGLL03 – Display/ change items

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 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

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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, 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
 ….. COPA characteristics
Direct postings

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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

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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

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 Ledger in Universal Journal - 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

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 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, 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

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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

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General Ledger Accounting in S/4HANA

02
01 GL Account and cost element master data

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General Ledger Account and Cost Element in S/4HANA
 All cost elements, primary and secondary, 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, must be defined in
OKB9
 Cost element deletion not possible, GL accounts can be blocked for postings
 Cost element still updated in master data tables CSKA, CSKB along with SKA1, 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’
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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
P
revenue primary cost element category

P&L accounts, created with

S Secondary costs
secondary cost element category

Demo file: S4 HANA FIN-P01-S4C-FS00 GL Master data creation

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 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

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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

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Agenda

S/4HANA vs S/4HANA Finance for GL Accounting

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 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. All accounts receivables Applicable
applicable applicable
and payables transactions are reflected against Business Partner
General Ledger - Universal Journal
Universal Journal is a new ledger is S/4HANA which contains data from FI, CO, ML, AA, Acct Applicable Applicable Applicable
based CO-PA
Transfer Prices/ Parallel Delta Versions
Not
Multiple valuation approach i.e. group valuation an profit center valuation with transfer Not available Available
available
pricing

Note – includes key changes, does not include all

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 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. 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. "Clearing like logic" amounts are selected with historical data( supports open item-FI- currency
types)
GL,FI-AP,FI-AR and CO & GL allocations. Not support to deprecation, ML and CO settlement) types)
4. currency in non-leading ledger can be different from leading ledger
5. 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, does not include all

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Agenda

Process Demo

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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 also need to report per local tax in
Germany. They are using multiple ledgers to manage group and local reporting.
The scenario demonstrates posting of various types of expenses, cost allocation and reporting of
same

Note: Demo is based on S/4HANA 1511

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 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
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 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)
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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

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 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
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Agenda

Configuration Demo

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Agenda

01
01 GL configuration demo in S/4HANA

a) Definition and assignment of company code, controlling area, 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

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 Configuration demo
Path Description Impact /Additional information Recording file
Represents an organizational unit in
S4 HANA FIN-1-S4C-
SPRO->Enterprise Structure->Definition- company for which the sales market has a
Create Operation Concern Define Operating
>Controlling->Create Operating Concern uniform structure. It is the valuation level
Concern(00.11)
for Profitability Analysis (CO-PA).
SPRO->Enterprise Structure->Definition- S4 HANA FIN-2-S4C-
It will give legal reporting and any other
>Financial Accounting->Edit, Copy, Define Company code Define Company Code
local reporting .
Delete, 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. Chart of accounts can be used Define and assign Chart
>Master Data->G/L Accounts-
different company codes. of accounts(00:54)
>Preparations
S4 HANA FIN-4-S4C-
SPRO->Enterprise Structure->Definition- Controlling area provides information for
Define Controlling area Define Controlling Area
>Controlling->Maintain Controlling Area internal management decision.
(00:12)
SPRO->Financial Accounting (New)- Common transactions same document
>General Ledger Accounting (New)- 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. For none Document types and
none leading ledgers.
Document Types for Entry View in a leading ledger specific postings a different number ranges (00:45)
Ledger document type will be assigned.
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 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. For extension ledger it S4C-Posting period
Posting Periods->Posting Periods- posting periods
should different from base ledger. variant (00:24)
>Define Variants for Open Posting
Periods
SPRO -> Financial Accounting (New) - 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. 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.
SPRO->Financial Accounting (New)- New transaction - Ledgers are created S4 HANA FIN-8-
Define Settings for Journal
>Financial Accounting Global Settings and assigned to company codes. S4C-Define ledgers
Entry Ledger
(New)->Ledgers->Ledger->Define Currencies, accounting principle, fiscal and currency
Settings for Journal Entry Ledger year variant is defined for the ledgers settings (02:53)

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Configuration demo
Path Description Impact /Additional information Recording file

Parallel ledger approach: ledger groups

SPRO-> Financial Accounting (New)- S4 HANA FIN-
Define ledger group and are assigned to different ledger.
> 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.
New transaction: a)Define and assign
document type for financial postings
S4 HANA FIN-
originated due to CO transactions
SPRO -> Financial Accounting (New)- 10-S4C-
b)Possible to define default ledger for
>Financial Accounting Global Integration of
Integration of Controlling CO. If default ledger is blank, 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

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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

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Demo

02
01 List of impacted configuration transaction in S/4HANA

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 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. However,
(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)

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 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 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- 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 Ledger for a Company
Ledgers
>Define and Activate Non- Code’
Leading Ledgers

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 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. If default ledger is
Financial Accounting blank, 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.
(new) ledger for Journal Entry New Currencies, accounting principle, 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

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 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)

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 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.

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Agenda

01 Summary

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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

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In CONCLUSION…S/4HANA Core Changes & Benefits

Fiori

Core
Changes

Simplified business Real time Improved user Improved Simplified

process analytics experience performance architecture

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 Thank You
A presentation by TCS EntSol - SAP CoE
For more information on this presentation, mailto: [email protected] OR [email protected]

Last updated on 24-08-2016

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