Preface

21

Objective of This Book

21

Target Audience

22

Organization of This Book

22

How to Read This Book

25

New (Greenfield) Implementations

25

System Conversion (Brownfield) Implementations

26

Introduction

29

Your New SAP S/4HANA System

29

SAP HANA Database

29

SAP S/4HANA

32

Your New Finance Solution

33

Advances in Finance

33

SAP Fiori User Experience

39

Configuration Interface

42

Summary

43

1 SAP S/4HANA Implementation Options

45

1.1 On-Premise SAP S/4HANA

46

1.2 SAP S/4HANA Cloud Private Edition

47

1.3 SAP S/4HANA Cloud Public Edition

48

1.4 Central Finance with SAP S/4HANA

51

1.5 Summary

52

2 Project Preparation

53

2.1 Defining Your Project Objectives

53

2.2 Greenfield Implementations versus Brownfield Implementations

55

2.3 Defining the Project Scope

57

2.4 Defining the Project Timeline

58

2.5 Assembling the Project Team

60

2.6 Summary

62

3 Requirements Analysis

63

3.1 Template Requirements Analysis

64

3.1.1 Financial Accounting

64

3.1.2 Controlling

68

3.1.3 Integration with Logistics

68

3.2 Localization Fit/Gap Analysis

69

3.2.1 Localization Overview

70

3.2.2 Local Accounting Standards

71

3.2.3 Local Tax Requirements

71

3.2.4 Other Local Requirements

73

3.3 Summary

74

4 Financial Accounting Global Settings

75

4.1 New Finance Data Model in SAP S/4HANA

75

4.1.1 Universal Journal

76

4.1.2 Real-Time Integration with Controlling

78

4.2 Organizational Structure

78

4.2.1 Company

79

4.2.2 Company Code

80

4.2.3 Controlling Area

86

4.2.4 Operating Concern

90

4.3 Ledgers

91

4.4 Universal Parallel Accounting

96

4.5 Document Types

98

4.5.1 Document Type Settings

99

4.5.2 Number Ranges

101

4.5.3 Document Types for Entry View in a Ledger

103

4.6 Currencies

104

4.6.1 Currency Types

104

4.6.2 Exchange Rate Type

105

4.6.3 Exchange Rates

106

4.7 Taxes

107

4.7.1 Tax Procedure

108

4.7.2 Tax Codes

113

4.8 Summary

116

5 General Ledger

117

5.1 Master Data

117

5.1.1 Chart of Accounts

118

5.1.2 Account Groups

120

5.1.3 General Ledger Accounts

121

5.2 Document Splitting

127

5.2.1 Document Splitting Characteristics

127

5.2.2 Classification of General Ledger Accounts for Document Splitting

128

5.2.3 Classification of Document Types for Document Splitting

130

5.2.4 Defining Document Splitting Characteristics for General Ledger Accounting

131

5.2.5 Defining Zero-Balance Clearing Account

132

5.3 Automatic Postings and Account Determination

133

5.3.1 Purchasing Flows

135

5.3.2 Sales Flows

135

5.3.3 Automatic Postings in Financial Accounting

136

5.4 Periodic Processing and Financial Closing

139

5.4.1 Posting Periods

140

5.4.2 Intercompany Reconciliation

142

5.4.3 Foreign Currency Valuation

143

5.4.4 Account Clearing

146

5.4.5 Balance Carryforward

147

5.4.6 Manage Balance Validation Rules and Groups App

148

5.4.7 Financial Closing Cockpit

152

5.5 Information System

152

5.5.1 Balance Reports

152

5.5.2 Financial Statements

153

5.5.3 Tax Reports

156

5.5.4 Drilldown Reporting

157

5.6 SAP Fiori Apps

158

5.6.1 Post General Journal Entries App

159

5.6.2 Manage Journal Entries App

159

5.6.3 Upload General Journal Entries App

162

5.7 Summary

162

6 Accounts Payable

165

6.1 Business Partner

165

6.1.1 General Data

166

6.1.2 Company Code Data

167

6.1.3 Business Partner Configuration

168

6.2 Business Transactions

174

6.2.1 Incoming Invoices/Credit Memos in Financial Accounting

174

6.2.2 Posting with Alternative Reconciliation Account

176

6.2.3 Incoming Invoices/Credit Memos from Materials Management

177

6.2.4 Tax Determination in the Purchasing Process

179

6.2.5 Goods Receipt/Invoice Receipt Clearing

183

6.2.6 Payment Terms and Outgoing Payments

186

6.3 Information System

192

6.3.1 Master Data Reports

192

6.3.2 Balance Reports

194

6.3.3 Line-Item Reports

195

6.4 Summary

201

7 Accounts Receivable

203

7.1 Business Partners

203

7.1.1 General Data

203

7.1.2 Company Code Data

205

7.1.3 Sales Data

208

7.1.4 Business Partner Configuration

211

7.2 Business Transactions

221

7.2.1 Outgoing Invoices/Credit Memos in Financial Accounting

221

7.2.2 Outgoing Invoices/Credit Memos in SAP S/4HANA Sales

226

7.2.3 Pricing Procedure in Sales

227

7.2.4 Incoming Payments and Payment Terms

228

7.3 Taxes

231

7.3.1 Taxes in Financial Accounting Invoices

231

7.3.2 Tax Determination in the Sales Process

232

7.4 Customer Correspondence

238

7.4.1 Open Items List

238

7.4.2 Account Statement

241

7.4.3 Balance Confirmation

242

7.5 Information System

243

7.5.1 Master Data Reports

244

7.5.2 Balance Reports

245

7.5.3 Line-Item Reports

248

7.6 Summary

249

8 Fixed Assets

251

8.1 Organizational Structures

252

8.1.1 Chart of Depreciation

252

8.1.2 Depreciation Areas

255

8.1.3 Asset Classes

258

8.2 Master Data

262

8.2.1 Screen Layout

262

8.2.2 Account Determination

267

8.2.3 Number Ranges

272

8.2.4 User Fields and Asset Supernumbers

273

8.2.5 Asset Numbers, Subnumbers, and Group Numbers

277

8.3 Business Transactions

279

8.3.1 Acquisitions

279

8.3.2 Transfers

281

8.3.3 Retirement

285

8.4 Valuation and Closing

286

8.4.1 New Asset Accounting Concept

287

8.4.2 Multiple Valuation Principles

288

8.4.3 Depreciation Key

289

8.4.4 Depreciation Run

293

8.4.5 Revaluation

294

8.4.6 Manual Value Correction

296

8.4.7 Year-End Closing Activities

298

8.5 Information System

299

8.5.1 Asset Explorer

299

8.5.2 Asset Balance Reports

302

8.5.3 Asset History Sheet

304

8.6 Summary

310

9 Bank Accounting

311

9.1 Master Data

311

9.1.1 Bank Keys

311

9.1.2 House Banks

315

9.1.3 Bank Accounts and International Bank Account Numbers

317

9.1.4 Simplified Bank General Ledger Accounts

319

9.2 Automatic Payment Program

320

9.2.1 Automatic Payment Program Parameters

321

9.2.2 Automatic Payment Program Global Settings

322

9.2.3 Payment Method

325

9.2.4 Bank Determination

331

9.2.5 Common Issues with the Payment Program

335

9.3 Payment Files

338

9.3.1 Single Euro Payments Area Payment Files

338

9.3.2 Other Common Formats

341

9.4 Electronic Bank Statements

343

9.4.1 Overview

343

9.4.2 Account Symbols

344

9.4.3 Posting Rules

346

9.4.4 Transaction Types

348

9.4.5 Reprocessing Rules

350

9.4.6 Editing Journal Entries during Simulation

351

9.5 Summary

351

10 General Controlling and Cost Element Accounting

353

10.1 General Controlling Settings

353

10.1.1 Maintaining Controlling Areas

354

10.1.2 Number Ranges

356

10.1.3 Versions

359

10.2 Master Data

362

10.2.1 Cost Elements

362

10.2.2 Cost Element Groups

364

10.3 Actual Postings

366

10.3.1 Manual Reposting

366

10.3.2 Activity Allocation

369

10.4 Summary

372

11 Cost Center Accounting

373

11.1 Master Data

373

11.1.1 Cost Centers

374

11.1.2 Cost Center Groups

383

11.1.3 Activity Types

387

11.1.4 Statistical Key Figures

390

11.2 Actual Postings

391

11.2.1 Automatic Account Assignment

392

11.2.2 Substitutions for Account Assignment

394

11.3 Periodic Allocations

397

11.3.1 Accrual Calculation

398

11.3.2 Distribution

399

11.3.3 Assessment

405

11.3.4 Activity Allocation

412

11.4 Planning

414

11.4.1 Basic Settings for Planning

414

11.4.2 Manual Planning

416

11.5 Information System

420

11.5.1 Standard Reports

420

11.5.2 User-Defined Reports

422

11.6 Summary

426

12 Internal Orders

429

12.1 Master Data

429

12.1.1 Order Types

431

12.1.2 Screen Layouts

434

12.1.3 Number Ranges

436

12.1.4 Creating Internal Orders

440

12.2 Budgeting

446

12.3 Actual Postings and Periodic Allocations

451

12.3.1 Settlement

451

12.3.2 Periodic Reposting

459

12.4 Planning

462

12.4.1 Basic Settings

462

12.4.2 Statistical Key Figures

465

12.4.3 Allocations

466

12.5 Information System

468

12.5.1 Standard Reports

468

12.5.2 Report Painter Reports

472

12.5.3 Internal Orders Plan/Actual App

476

12.6 Summary

477

13 Profit Center Accounting

479

13.1 Master Data

480

13.1.1 Profit Centers

480

13.1.2 Profit Center Groups

485

13.1.3 Standard Hierarchies

487

13.2 Profit Center Derivation

488

13.2.1 Account Assignment Objects

488

13.2.2 Document Splitting

490

13.2.3 Profit Center Substitution

491

13.3 Information System

495

13.3.1 Standard Reporting

495

13.3.2 Drilldown Reporting

500

13.4 Summary

506

14 Margin Analysis

507

14.1 Overview of Margin Analysis

507

14.1.1 Costing-Based Profitability Analysis

508

14.1.2 Account-Based Profitability Analysis/Margin Analysis

509

14.2 Master Data

510

14.2.1 Operating Concern

510

14.2.2 Data Structure

511

14.2.3 Operating Concern Attributes

519

14.2.4 Characteristics Hierarchy

521

14.2.5 Characteristic Derivation

523

14.3 Data Flow

526

14.3.1 Invoice Value Flow

526

14.3.2 Overhead Costs Flow

532

14.3.3 Top-Down Distribution

540

14.3.4 Production Costs Flow

541

14.4 Integrated Planning

545

14.4.1 Planning Framework

545

14.4.2 Planning Elements

546

14.5 Information System

552

14.5.1 Line-Item Lists

553

14.5.2 Drilldown Reporting

556

14.6 Summary

559

15 Predictive Accounting

561

15.1 Configuration

561

15.1.1 Ledger Settings

562

15.1.2 Mapping the Predictive Ledger

564

15.1.3 Activate Extension Ledger

565

15.1.4 Activate Predictive Accounting for Sales Orders

565

15.1.5 Maintain Billing Types for Predictive Accounting

566

15.1.6 Maintain Sales Order Item Categories for Predictive Accounting

568

15.2 Data Flow

569

15.2.1 Sales Orders

569

15.2.2 Goods Movements and Billing Documents

572

15.3 Information System

574

15.3.1 Incoming Sales Orders – Predictive Accounting App

575

15.3.2 Monitor Predictive Accounting App

576

15.4 Summary

579

16 Product Costing

581

16.1 Master Data

581

16.1.1 Material Master

582

16.1.2 Bill of Materials

587

16.1.3 Work Center

587

16.1.4 Routing

589

16.2 Product Cost Planning

591

16.2.1 Costing Variant Components

591

16.2.2 Creating the Costing Variant

602

16.2.3 Cost Component Structure

607

16.2.4 Costing Sheet

611

16.2.5 Material Cost Estimates

617

16.3 Actual Costing and Material Ledger

620

16.3.1 Overview and Material Ledger Activation

620

16.3.2 Multiple Currencies and Valuations

621

16.3.3 Material Ledger Update

623

16.3.4 Actual Costing

627

16.3.5 Actual Costing Cockpit

628

16.4 Information System

629

16.4.1 Product Cost Planning

630

16.4.2 Actual Costing and Material Ledger

632

16.4.3 Drilldown Reporting

633

16.5 Summary

635

17 Group Reporting

637

17.1 Group Reporting Basics

637

17.1.1 What Is Group Reporting?

638

17.1.2 Historical Group Reporting in SAP

638

17.1.3 Key Benefits

639

17.2 Global Settings

640

17.2.1 Prerequisites

640

17.2.2 Consolidation Ledgers

641

17.2.3 Consolidation Versions

642

17.2.4 Multiple Group Currencies and Extension Consolidation Versions

644

17.2.5 Dimensions

646

17.3 Data Collection and Consolidation Configuration

647

17.3.1 Financial Statement Items

648

17.3.2 Subitem Categories and Subitems

649

17.3.3 Document Types

652

17.3.4 Number Ranges

657

17.3.5 Data Collection Tasks

658

17.3.6 Consolidation of Investments Methods

659

17.3.7 Task Groups

661

17.4 Summary

664

18 Data Migration

665

18.1 Brownfield Implementation Migration

665

18.1.1 Check Programs for SAP S/4HANA Readiness

666

18.1.2 Migration to SAP S/4HANA

669

18.2 Greenfield Implementation Migration

676

18.2.1 Migration Options

676

18.2.2 Migrate Your Data – Migration Cockpit

677

18.3 Financial Migration Objects

684

18.3.1 General Ledger Data

684

18.3.2 Accounts Payable and Accounts Receivable Data

686

18.3.3 Fixed Assets Data

687

18.3.4 Controlling-Related Data

689

18.4 Summary

690

19 Testing

691

19.1 The Testing Process

691

19.1.1 Test Plan

692

19.1.2 Testing Tools

693

19.1.3 Testing Documentation

695

19.2 Unit Testing

697

19.2.1 Sandbox Client Testing

697

19.2.2 Unit Testing Client Testing

698

19.3 Integration Testing

698

19.3.1 Planning

699

19.3.2 Phases

699

19.3.3 Documentation

702

19.4 User Acceptance Testing

703

19.4.1 Planning

703

19.4.2 Execution

704

19.4.3 Documentation

705

19.5 Summary

707

20 Go-Live and Support

709

20.1 Preparation for the Go-Live

709

20.1.1 Choosing a Go-Live Date

709

20.1.2 Defining a Cutover Plan and Responsibilities

710

20.1.3 Preparing a Backup Plan

711

20.2 Activities during the Go-Live

712

20.2.1 Technical Activities

712

20.2.2 Financial Accounting Activities

712

20.2.3 Controlling Activities

715

20.3 Validation of the Go-Live

719

20.3.1 Project Team Validation

719

20.3.2 Subject Matter Expert Validation

719

20.4 Hypercare Production Support

720

20.4.1 The First Day

720

20.4.2 Background Jobs

721

20.4.3 Managing Critical Support Incidents

723

20.4.4 Organizing Long-Term Support

723

20.5 Summary

724

Appendices

727

A Obsolete and New Transaction Codes and Tables in SAP S/4HANA

727

B The Author

731