Table of Contents

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Preface
21
About This Book
21
Target Audience and Objective
21
Structure of This Book
22
New in This Edition
25
Acknowledgments
26
Introduction
29
Evolution of the Chief Financial Officer
30
Benefits of SAP S/4HANA Finance
31
Functional Changes with SAP S/4HANA Finance
34
System Architecture with SAP S/4HANA Finance
36
Migration to SAP S/4HANA Finance
38
Path from SAP ERP to SAP Business Suite on SAP HANA to SAP S/4HANA
38
Key Prerequisites
42
Deployment Options
45
Project Phases
47
Summary
49
I Migrating to SAP S/4HANA Finance
51
1 Preparation
53
1.1 Check Functional Scope and Restrictions
53
1.2 Feasibility Checklist
55
1.3 The Maintenance Planner and Prechecks
63
1.4 Check Custom Coding
64
1.4.1 Check Custom Code and Modifications
64
1.4.2 Handling Custom-Defined Fields and Interfaces
65
1.5 Check Sizing
66
1.6 Precheck for Migration to New Asset Accounting
66
1.7 Activate Business Functions
68
1.7.1 Activate Business Functions for Asset Accounting and Parallel Valuation
68
1.7.2 Activate Enterprise Extension EA-FIN
71
1.7.3 Activate Business Function FIN_AA_CI_1
72
1.8 Check and Activate New Depreciation Calculation
73
1.8.1 Execute the Periodic Depreciation Posting Run
73
1.8.2 Execute Year-End Closing
75
1.8.3 Fiscal Year Change
75
1.9 Consistency Checks
76
1.9.1 SAP ERP Financials Data Consistency Checks
76
1.9.2 Reconciliation of the General Ledger and the Accounts Payable/Accounts Receivable Subledgers
79
1.9.3 Reconciliation of the General Ledger with Asset Accounting
80
1.9.4 Reconciliation of the General Ledger with Materials Management
82
1.9.5 Reconciliation of Ledgers
84
1.10 Perform Period-End Closing Activities
86
1.10.1 Copy Number Ranges
86
1.10.2 Lock Periods in Materials Management
87
1.10.3 Perform Closing for Periodic Asset Postings
87
1.10.4 Execute the Periodic Depreciation Posting Run
88
1.10.5 Verify Held Documents Status
88
1.10.6 Carry Balances Forward to the Current Fiscal Year
89
1.10.7 Reset Valuations for Periods in the Current Fiscal Year
91
1.10.8 Lock Prior Periods in SAP ERP Financials and Controlling
92
1.10.9 Batch Jobs
94
1.10.10 Execute Report to Confirm Asset Accounting Prerequisites
94
1.10.11 Lock Users
94
1.11 Consistency Check before Activation of SAP S/4HANA Finance
95
1.12 Execute Business Reconciliation
96
1.13 Summary
106
2 Installation and Upgrade
107
2.1 Installation and Upgrade Checklist
108
2.1.1 SAP HANA and Minimum Versions
108
2.1.2 Software Update Manager
110
2.1.3 SAP HANA Live
111
2.1.4 Administrator’s Guide, Release Information Note, and Browser Support
111
2.1.5 SAP Cash Management, Cost Objects, and Cost Object Hierarchies
112
2.1.6 Industry Solutions and Add-Ons
112
2.1.7 Maintenance Optimizer
113
2.1.8 Target Stack XML and SAP NetWeaver Kernel
116
2.1.9 Customer Code
117
2.1.10 Data Definition Language Statement Corrections
117
2.2 Review Data Model Changes
117
2.3 Use the Maintenance Planner
118
2.4 Install the Related Software Component Version
120
2.5 Apply SAP Notes
121
2.6 Content Deployment with SAP HANA Application Lifecycle Management
123
2.7 Perform HANA-tization
123
2.7.1 HANA-tization Checks
124
2.7.2 HANA-tization Tools
125
2.8 Optimization
126
2.8.1 Optimization Approach
126
2.8.2 Optimization Tools
127
2.8.3 Optimization Best Practice
128
2.8.4 SAP HANA Modeling
128
2.9 Summary
129
3 Preparation and Migration for General Ledger
131
3.1 Activate SAP Reference Implementation Guide for Financial Accounting (New)
132
3.2 Check and Adopt Fiscal Year Variants
133
3.3 Define Currency Settings for Migration
134
3.4 Migrate General Ledger Customizing
135
3.5 Define Settings for Ledgers and Currency Types
136
3.6 Define Ledger Groups
138
3.7 Assign the Accounting Principle to the Ledger Group
140
3.8 Review the Assignment of Ledger and Company Code to Accounting Principles
141
3.9 Define the Ledger for the Controlling Version
141
3.10 Define Document Types for Postings in Controlling
142
3.11 Define Document Type Mapping for Controlling Business Transactions
143
3.12 Check and Define Default Values for Postings in Controlling
143
3.13 Define the Offsetting Account Determination Type
145
3.14 Define the Source Ledger for Migration of Balances
145
3.15 Check and Define Settings for Substitution for Cost-of-Sales Accounting
146
3.16 Check and Define Settings of Controlling Area
146
3.17 Execute Consistency Check of General Ledger Settings
147
3.18 Activate Business Functions
147
3.19 Key Changes to the General Ledger
148
3.19.1 Architectural Impact
149
3.19.2 Functionality Impact
156
3.19.3 Configuration Impact
158
3.19.4 Customer and Vendor Master Data
166
3.19.5 Credit Management Impact
167
3.20 Key Changes to Period-End Closing
168
3.20.1 Architectural Impact
169
3.20.2 Functionality Impact
169
3.20.3 Security Impact
172
3.21 Summary
173
4 Preparation and Migration for Asset Accounting
175
4.1 Prerequisites
177
4.2 Install SAP S/4HANA Finance with New Asset Accounting
177
4.3 Migrate Charts of Depreciation
178
4.4 Customization Prior to Activation
179
4.4.1 Define Asset Balance Sheet Accounts of Parallel Valuation
179
4.4.2 Define the Depreciation Area for a Quantity Update
180
4.4.3 Define the Technical Clearing Account for Integrated Asset Acquisition
180
4.4.4 Specify an Alternative Document Type for Accounting Principle-Specific Documents
182
4.4.5 Specify Revenue Distribution for Asset Retirement
183
4.4.6 Post Net Book Value Instead of Gain/Loss
183
4.4.7 Check Transaction Types
184
4.5 Check Prerequisites for Activating New Asset Accounting
184
4.6 Determine Active Charts of Depreciation
185
4.7 Change Definitions of Depreciation Areas
186
4.8 Specify Transfer of Acquisition and Production Cost Values
188
4.9 Specify Transfer of Depreciation Terms
190
4.10 Activate New Asset Accounting
191
4.11 Adjust Parameters in Charts of Depreciation
192
4.12 Display Migration Log
193
4.13 Key Changes to Asset Accounting
194
4.13.1 Architectural Impact
194
4.13.2 Functionality Impact
195
4.13.3 Configuration Impact
202
4.13.4 Closing Process Impact
205
4.14 Summary
206
5 Preparation and Migration for Controlling
207
5.1 Execute SAP Business Warehouse Delta Extraction for Account-Based Profitability Analysis
208
5.2 Adapt Settings for Profitability Segment Characteristics
208
5.3 Maintain the Operating Concern
209
5.4 Activate Account-Based Profitability Analysis
210
5.5 Transport Operating Concern
211
5.6 Preparations and Migration for Material Ledger
211
5.7 Key Changes to Controlling
212
5.7.1 Functionality Impact
213
5.7.2 Configuration Impact
220
5.8 Key Changes to Profitability Analysis
228
5.8.1 Architectural Impact
229
5.8.2 Functionality Impact
230
5.8.3 Configuration Impact
232
5.9 Key Changes to Cost Center and Profit Center Accounting
234
5.9.1 Architectural Impact
234
5.9.2 Functionality Impact
236
5.10 Summary
240
6 Preparation and Migration for House Bank Accounts
241
6.1 Define Number Ranges for Bank Account Technical IDs
242
6.2 Define Number Ranges for Change Requests
242
6.3 Define Settings for Bank Account Master Data
243
6.3.1 Bank Account Types
243
6.3.2 Define Sensitive Fields to Be Protected from Changes
244
6.3.3 Define Import Methods for Bank Statements
246
6.3.4 Define Signatory Groups for Payment Approvals
246
6.3.5 Define the Signatory Groups and Approval Sequence for Approval Patterns
247
6.3.6 Assign Approval Patterns
248
6.4 Summary
250
7 Data Migration
251
7.1 Partitioning of the Universal Journal Entry Line Items Table
252
7.2 Regenerate CDS Views and Field Mapping
253
7.3 Analyze Transactional Data
256
7.4 Display Status of Analysis of Transactional Data
257
7.5 Start and Monitor Data Migration
260
7.6 Migration of Cost Elements
261
7.6.1 Check Consistency of G/L Accounts and Cost Elements
262
7.6.2 Migrate Secondary Cost Elements to the Chart of Accounts
264
7.6.3 Display Status of Migration of Cost Elements
265
7.6.4 Migrate Default Account Assignments
266
7.6.5 Display the Status of the Default Account Assignments Migration
267
7.6.6 Adopt Authorizations
268
7.6.7 Define Authorizations and Profiles
269
7.7 Technical Check of Transaction Data
274
7.7.1 Reconcile Transactional Data
275
7.7.2 Display Status of Technical Reconciliation of Transactional Data
276
7.8 Material Ledger Migration
280
7.8.1 Migrate Material Ledger Master Data
280
7.8.2 Check Material Ledger Master Data
280
7.8.3 Migrate Material Ledger Order History
281
7.8.4 Check Material Ledger Production Order and Purchase Order History
281
7.9 Enrichment of Data
281
7.9.1 Enrich Transactional Data
281
7.9.2 Display Status of Transactional Data Enrichment
282
7.9.3 Check of Migrated Documents
283
7.9.4 Display Status of Migrated Documents Check
284
7.10 Migration of Line Items into New Data Structure
285
7.10.1 Migrate Accounting Documents to Universal Journal Entry Structure
286
7.10.2 Display the Status of Document Migration to Universal Journal Entry
286
7.10.3 Check Migration of Accounting Documents to Universal Journal Entry
287
7.10.4 Display Status of Accounting Document Migration Check
288
7.11 Migration of Balances
289
7.11.1 Migrate Balances
290
7.11.2 Display Status of Migration of Balances
290
7.11.3 Check Migration of Balances
292
7.11.4 Display Status of Migration of Balances Check
293
7.12 Calculation of Depreciation and Totals Values
296
7.12.1 Calculate Initial Depreciation Values
297
7.12.2 Display Status of Calculate Initial Depreciation Values
298
7.12.3 Check Initial Depreciation and Total Values
298
7.12.4 Display Status of Check Initial Depreciation and Total Values
299
7.13 Migrate General Ledger Allocations
301
7.14 Migrate House Bank Accounts
304
7.15 Credit Management Migration
305
7.15.1 Migrate Credit Management Master Data
306
7.15.2 Display Status of Migration of Credit Management Master Data
307
7.15.3 Migrate Credit Management Exposure
307
7.15.4 Display Status of Credit Management Exposure Migration
307
7.15.5 Initialize Documented Credit Decisions
307
7.15.6 Display Status of Initialization of Documented Credit Decisions
308
7.15.7 Reconcile Documented Credit Decisions
308
7.16 Complete the Migration
308
7.16.1 Reconcile and Compare Migrated Data
309
7.16.2 Set Migration to Completed
310
7.17 Migration with Near-Zero Downtime
311
7.17.1 Near-Zero Downtime
311
7.17.2 Restrictions on Business
312
7.17.3 Activities on the Clone System
312
7.17.4 Delta Migration
313
7.18 Summary
314
8 Postmigration Activities
315
8.1 Run Reconciliation Reports to Check Data Consistency
316
8.2 Validate Business Process to Ensure Successful Migration
316
8.3 Transfer Application Indexes
317
8.4 Display Status of Application Indexes Transfer
318
8.5 Fill Due Dates in FI Documents
318
8.6 Display Status of Filling Due Dates in Financial Documents
319
8.7 Fill the Offsetting Account in Financial Documents
320
8.8 Display Status of Filling Offsetting Account in Financial Documents
321
8.9 Enrichment of Balance Carryforward
322
8.10 Manual Activities for Credit Management
323
8.11 Deactivate Reconciliation Ledger
324
8.12 Summary
325
9 Postmigration Testing
327
9.1 Test SAP HANA-Optimized Report Transactions
328
9.2 Test Multidimensional Reporting Capability
328
9.3 Test Database Footprint Reduction
329
9.4 Test Intercompany Reconciliation
329
9.5 Test the New Process Redesign
330
9.6 Test Closing Improvement
331
9.7 Test the Universal Journal
331
9.8 Execute Change Management
332
9.9 Summary
332
II Setting Up New Financials Functionality
335
10 SAP Cash Management
337
10.1 Validate Prerequisites
339
10.2 Set Up Bank Account Master Data
340
10.2.1 Banks and House Banks
340
10.2.2 Migrate House Bank Accounts
342
10.2.3 Upload and Download Bank Accounts
343
10.3 Define the Payment Approval Process
344
10.3.1 Basic Settings for Approval
345
10.3.2 Rule Maintenance
346
10.3.3 Additional Criteria for Payment Grouping
347
10.3.4 Mark Rules for Automatic Payment
348
10.3.5 Specify the Signature Method for Approval Using a Simple Signature
349
10.3.6 Enable Signatory Control
350
10.3.7 Specify Settings for the Bank Statement Monitor
350
10.4 Enable SAP Business Workflow for Bank Account Management
352
10.4.1 Maintain Event Type Linkage
352
10.4.2 Define and Maintain Organizational Hierarchy
354
10.4.3 Define Responsibilities and Assign Users
354
10.4.4 Create Custom-Defined Workflows
359
10.4.5 Predefined Workflows
359
10.5 Create Cash Pools for Cash Concentration
363
10.5.1 Define Clearing Accounts for the Receiving Bank for Account Transfers
364
10.5.2 Define Clearing Accounts for Cross-Country Bank Account Transfers
365
10.5.3 Define Account Determination
365
10.5.4 Check Account Determination
366
10.6 Manage Cash Operations
366
10.6.1 Define and Assign Flow Types
368
10.6.2 Define Liquidity Items and Hierarchies
378
10.6.3 Define Planning Levels and Planning Groups
382
10.7 Load Data to One Exposure from Operations
385
10.7.1 Integration with Source Applications
386
10.7.2 Integration with Remote Systems
386
10.8 Set Up Cash Management Transaction Data
387
10.8.1 Activate Individual Source Applications
389
10.8.2 Activate Multiple Source Applications
390
10.8.3 Rebuild Planning Levels, Groups, and Dates in Accounting Documents
390
10.8.4 Insert House Bank and House Bank Account Data to Accounting Documents
391
10.8.5 Rebuild Liquidity Items in Accounting Documents
392
10.8.6 Rebuild Flow Types in Accounting Documents
393
10.8.7 Load Transaction Data into One Exposure from Operations Hub
394
10.9 Set Up SAP Liquidity Management
395
10.9.1 Install and Configure SAP BusinessObjects Business Intelligence Content
396
10.9.2 Activate SAP BusinessObjects BI Content
397
10.9.3 Install Template for Cash Flow Analysis
399
10.9.4 Generate a Planning View
401
10.9.5 Activate SAP BPC Content
401
10.9.6 Install SAP BPC Content
402
10.10 Set Up Liquidity Planning
404
10.10.1 Specify an SAP BPC Configuration Set
405
10.10.2 Create Planning Units
406
10.10.3 Activate Planning Unit Hierarchy
406
10.10.4 Currency Conversion Rules
408
10.10.5 Reference Data Sources
408
10.10.6 Exclude Liquidity Items Representing Balance Values
409
10.10.7 Liquidity Planning Types
409
10.11 Key System Changes
410
10.11.1 SAP Business Client
410
10.11.2 Functionality Impact
411
10.11.3 Security Impact
414
10.11.4 Configuration Impact
415
10.12 Summary
416
11 SAP BPC for SAP S/4HANA Finance
419
11.1 Planning Overview and Activation
420
11.1.1 Business Benefits
420
11.1.2 Applications Used by Planning
423
11.1.3 Activate Business Functions for Planning
424
11.2 Architecture
424
11.2.1 Planning Accelerators
425
11.2.2 Data Flow Architecture
426
11.3 Authorizations
427
11.4 Activate Embedded SAP Business Warehouse
431
11.4.1 Choose SAP Business Warehouse Client
432
11.4.2 Check SAP Business Warehouse Client Setting
432
11.4.3 Set the SAP Business Warehouse Client
433
11.4.4 Assign the Logical System Client
434
11.4.5 Set SAP Business Warehouse Namespaces to Changeable
437
11.4.6 Install the Technical SAP Business Warehouse Content
438
11.4.7 Check Installation Status and Resolve Errors
439
11.4.8 Check Planning Content Activation
441
11.5 Activate the SAP BusinessObjects BI Content Bundle
442
11.5.1 Activate the DataSources
443
11.5.2 Activate the Content Bundle
444
11.6 Test the SAP Business Warehouse Installation
449
11.6.1 Set the User Parameter
449
11.6.2 Test the Planning Query Installation
449
11.7 Activate Services and Test Planning Applications
451
11.7.1 Check General Settings for Web Dynpro
451
11.7.2 Run Report RSICF_SERVICE_ACTIVATION
452
11.7.3 Activate Services for the Planning Applications
453
11.7.4 Test the New Planning Application
454
11.8 Planning Modeler
456
11.9 SAP BusinessObjects Analysis for Microsoft Office
457
11.10 Key System Changes
462
11.11 Summary
464
12 SAP Fiori Applications
465
12.1 SAP Fiori Project Phases
466
12.2 Architecture
467
12.3 Configure SAP Fiori
469
12.4 Install SAP Fiori Apps
472
12.4.1 Transaction and Fact Sheet Apps
472
12.4.2 Analytical Apps
473
12.5 SAP Fiori Launchpad
473
12.5.1 Frontend User Screen
474
12.5.2 Backend Configuration Screen
476
12.5.3 SAP Smart Business Key Performance Indicators
478
12.6 SAP Fiori Application and Roles
480
12.6.1 General Ledger Accountant
480
12.6.2 Accounts Payable Accountant
483
12.6.3 Accounts Receivable Accountant
485
12.6.4 Controller
488
12.6.5 Cash Manager
493
12.6.6 Cost Manager
495
12.7 SAP Smart Business Application and Roles
496
12.7.1 For Accounts Payable
497
12.7.2 For Accounts Receivable
498
12.7.3 For Chief Financial Officers
500
12.7.4 For Cash Management
500
12.8 Summary
501
Appendices
503
A Central Finance
505
A.1 The Business Case for Central Finance
505
A.2 Architecture
510
A.3 New Capabilities
512
A.4 Prerequisites
514
A.5 Mapping
515
A.6 Initial Load
522
A.7 Error Handling
526
A.8 Key Lessons
527
B Project Plan for SAP S/4HANA Finance Migration
529
C The Author
559
Index
561