Table of Contents

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Foreword
15
Preface
17
Who This Book Is For
17
How This Book Is Organized
17
Acknowledgments
20
Conclusion
20
1 Introduction to SAP S/4HANA
21
1.1 Deployment Models
21
1.1.1 On-Premise SAP S/4HANA
21
1.1.2 SAP S/4HANA Cloud
22
1.1.3 Hybrid Models
23
1.2 Universal Journal
24
1.2.1 Single Source of Truth
25
1.2.2 One Database and One Data Model for Accounting
26
1.2.3 Enhanced Reporting
27
1.3 Simplifications
29
1.3.1 Minimized Reconciliations
29
1.3.2 Extension Ledger versus Special Ledger
30
1.3.3 Simplified Period-End Close
31
1.3.4 Management Accounting Integration
33
1.4 User Interfaces
35
1.4.1 SAP GUI
35
1.4.2 Web GUI
36
1.4.3 SAP Fiori
37
1.5 Summary
41
2 Organizational Structure and Integration
43
2.1 Standard Financial Accounting Processes
43
2.1.1 Value Chain Overview
44
2.1.2 Order-to-Cash and Accounts Receivable
45
2.1.3 Purchase-to-Pay and Accounts Payable
47
2.1.4 Acquire-to-Retire and Fixed Asset Accounting
48
2.1.5 Record-to-Report and General Ledger
48
2.2 Organizational Elements of Financial Accounting
49
2.2.1 Organizational Structures
50
2.2.2 Cross-Application Organizational Assignments
60
2.2.3 Central Financial Accounting Settings and Decisions
64
2.3 Integration of Financial Accounting and Management Accounting
71
2.3.1 Management Accounting Postings in the General Ledger
71
2.3.2 Market Segment Reporting in the Universal Journal
75
2.3.3 Interface Configuration
77
2.3.4 Intercompany Management Accounting Postings
85
2.4 Summary
87
3 General Ledger Accounting
89
3.1 Record-to-Report
89
3.1.1 Subledger Closing
90
3.1.2 Reconciliations
92
3.1.3 Record and Adjust
96
3.1.4 Period Control
96
3.1.5 Reporting and Analysis
97
3.2 General Ledger Master Data
99
3.2.1 Master Data Structure
99
3.2.2 General Ledger Accounts
101
3.2.3 Chart of Accounts
106
3.2.4 Financial Statements
109
3.3 General Ledger Posting Documents
114
3.3.1 Journal Document Entry
114
3.3.2 Post, Park, and Hold
121
3.3.3 Recurring Documents
128
3.3.4 Post with References
136
3.3.5 Post with Clearing
143
3.4 Resetting and Reversing Documents
149
3.4.1 Reversing Nonclearing Documents
149
3.4.2 Reversing Clearing Documents
154
3.5 Bank Accounting
158
3.5.1 Bank Master Data
158
3.5.2 General Ledger Integration
166
3.5.3 Bank Reconciliation
168
3.6 General Ledger Period-End Closing
175
3.6.1 Opening and Closing Periods
175
3.6.2 Subledger Reconciliation
177
3.6.3 Foreign Currency Valuation
182
3.6.4 Goods Receipt/Invoice Receipt Clearing
184
3.6.5 Balance Carryforward
187
3.7 General Ledger Reporting
189
3.7.1 Accounts Inquiry
190
3.7.2 Trial Balance
193
3.7.3 Display General Ledger Account Line Items
198
3.7.4 Financial Statement
201
3.7.5 Compact Document Journal
203
3.8 Summary
205
4 Accounts Payable
207
4.1 Purchase-to-Pay
208
4.1.1 Purchase Requisition
208
4.1.2 Purchase Order
212
4.1.3 Goods Receipt
215
4.1.4 Invoice Receipt
218
4.1.5 Invoice Payment and Vendor Checking Balances
224
4.2 Vendor Accounts
228
4.2.1 Vendor General Data
229
4.2.2 Vendor Company Code Data
235
4.3 Vendor Invoices
239
4.3.1 Automatic Creation of Vendor Invoices (from Logistics)
239
4.3.2 Direct Invoices
242
4.4 Outgoing Payments
247
4.4.1 Manual Payment
248
4.4.2 Automatic Payment Program
254
4.5 Process Exceptions
267
4.5.1 Credit Memos
267
4.5.2 Down Payments Sent
269
4.6 Accounts Payable Period-End Closing
275
4.6.1 Opening and Closing Periods
275
4.6.2 Foreign Currency Valuation
278
4.6.3 Goods Receipt/Invoice Receipt Clearing
280
4.6.4 Automatic Open Item Clearing
283
4.6.5 Reclassification Run
286
4.6.6 Accounts Payable Reconciliations
292
4.7 Accounts Payable Reporting
301
4.7.1 Accounts Inquiry
302
4.7.2 Accounts Balance Report
305
4.7.3 Open Item List
310
4.8 Summary
313
5 Accounts Receivable
315
5.1 Order-to-Cash Process
316
5.1.1 Sales Order
316
5.1.2 Outbound Delivery
321
5.1.3 Billing Documents
324
5.2 Customer Accounts
328
5.2.1 Customer General Data
329
5.2.2 Customer Company Code Data
334
5.3 Customer Invoices
337
5.3.1 Automatic Creation of Customer Invoice (from Logistics)
337
5.3.2 Direct Customer Invoices
339
5.4 Customer Payments
342
5.4.1 Manual Bank Statements
343
5.4.2 Electronic Bank Statements
349
5.5 Process Exceptions
353
5.5.1 Credit Memos
353
5.5.2 Down Payments Received
360
5.6 Dunning
363
5.6.1 Automated Dunning Process
364
5.6.2 Manual Dunning Letters
367
5.7 Credit Management
368
5.7.1 Credit Master Data and Credit Limits
369
5.7.2 Simple Credit Check
374
5.7.3 Automated Credit Check
375
5.8 Accounts Receivable Period-End Closing
375
5.8.1 Foreign Currency Valuation
376
5.8.2 Billing Due Lists
378
5.8.3 Reclassification Run
383
5.8.4 Accounts Receivable Reconciliations
390
5.9 Accounts Receivable Reporting
405
5.9.1 Accounts Inquiry
405
5.9.2 Account Balances Report
412
5.9.3 Open Items List
414
5.9.4 Aging List
417
5.10 Summary
421
6 Fixed Asset Accounting
423
6.1 Acquire-to-Retire Process
424
6.1.1 Acquisition of Long-Lived Assets
424
6.1.2 Capitalization/Activation
425
6.1.3 Depreciation
426
6.1.4 Retirement/Scrapping
427
6.2 Fixed Asset Accounts and Master Data
429
6.2.1 Asset Creation
429
6.2.2 Asset Classes
434
6.2.3 Account Determination
437
6.2.4 Depreciation Key
441
6.2.5 Depreciation Area
447
6.2.6 Chart of Depreciation and Ledger Assignment
451
6.3 Fixed Asset Explorer
453
6.3.1 Planning
453
6.3.2 Actuals
456
6.3.3 Master Data
460
6.4 Asset Transactions
462
6.4.1 Acquisition/Integration to Vendor Invoice
463
6.4.2 Standard Depreciation
466
6.4.3 Impairment (Value Adjustment)
470
6.4.4 Transfers
474
6.4.5 Retirements/Disposals
478
6.5 Fixed Assets Period-End Closing
485
6.5.1 Change Fiscal Year
485
6.5.2 Depreciation Run
491
6.5.3 Closing Periods
494
6.5.4 Fixed Assets Reconciliations
496
6.6 Fixed Assets Reporting
503
6.6.1 Fixed Assets History Sheet
504
6.6.2 Acquisitions List
506
6.6.3 Depreciation Lists
509
6.6.4 Disposals
512
6.7 Summary
515
7 Customer Project Accounting
517
7.1 Customer Project Scenario in SAP S/4HANA Cloud
518
7.1.1 Financial Accounting Innovations
518
7.1.2 Simplified Customer Project Contract Setup
521
7.1.3 Customer Project Setup Overview
527
7.1.4 Customer Project Business Transactions
529
7.1.5 Financial Reporting Insights
546
7.2 Event-Based Revenue Recognition
554
7.2.1 Purpose of Event-Based Revenue Recognition
554
7.2.2 Principles of Event-Based Revenue Recognition
555
7.2.3 Activation and Configuration
563
7.2.4 Revenue Recognition Apps
568
7.2.5 Supported Contract Types and Realization Methods
573
7.2.6 IFRS 15 Capabilities
576
7.2.7 Supported Management Accounting Features
581
7.2.8 Availability of Event-Based Revenue Recognition in SAP S/4HANA
582
7.3 Simplified Period-End Close
582
7.4 Summary
584
The Authors
587
Index
589