April 29, 2017 | Author: ashish_bhalerao | Category: N/A
SAP Simple Finance Add-On: General Ledger, Accounts Receivable & Accounts Payable
Meet the Presenters Simple Finance Add-On Deep Dive Chetan Maduri Chetan is a Manager from the Hyderabad office. He has been a SAP consultant for over 11 years. His focus in areas like FI-GL (New GL), AR and AP, FSCM – Biller Direct, Collections, Dispute and Credit Management. He has experience in implementations, support, process improvement and training.
Shiva Murali Shiva is a Senior Consultant from the Hyderabad office. He has more than 4 years of experience focused on implementing SAP modules of FI and BPC. His focus areas have been BPC, GL, AP, and Travel Management. Shiva is Chartered Accountant and a SAP Certified Associate.
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Learning Objectives Simple Finance Add-On Deep Dive • Express what SAP’s Simple Finance solution brings to the table • Differentiate between the Simple Finance and Traditional Finance solutions • Explain the key features and functionality specific to the core finance solution • Define the available enhancements relevant to GL, AR & AP • Review the improvements in reporting • Describe the impact on existing configuration objects • Discuss the different Migration options
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Agenda SFIN Add-On Deep Dive
Unit
4
Description
Timing
1
Finance Transformation Accelerator (FTA) vision
5 min
2
What do the Simple Finance Add-on’s bring to the table?
5 min
3
How does Simple finance differ from Traditional Finance?
10 min
4
Key Features & Functionality
15 min
5
Enhancements
10 min
6
Configuration
10 min
7
Reporting
10 min
8
Migration
10 min
9
Wrap Up
5 min
SFIN - GL/AR/AP
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Icebreaker SFIN Add-On Deep Dive How many SAP FICO consultants currently work for Deloitte Consulting in the USI? A. 139 B. 142 C. 156 D. 123
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FTA Vision
Finance Transformation Accelerator (FTA) vision
• Continue to be a global SAP Finance Transformation leader • Pursuing and developing innovative solutions and alternate delivery models to address complex client challenges • Bringing sector specific insights, qualifications, tools and perspectives • Solving client challenges by bringing multi-functional teams and solutions • Bringing the power of our global network to our clients • Reacting to opportunities efficiently because we are well connected as a community of practitioners • Being recognized by the analyst community as a market leader in Finance transformation
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What do the Simple Finance Add-on’s bring to the table?
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SAP Finance - Reinvented
“
The world’s leading Accounting solution. Reinvented Instant Insight
Intuitive User Experience
The new principle of ONE Universal Journal Entry
New look and feel with Fiori
Migration Path
Traditional accounting transactions
Central Finance deployment
Analytical Accounting Apps
Better insight within the period
Non-disruptive and Flexible
Non-disruptive
One Chart of Account
Leverage soft close
”
Intuitive drill down reporting Balance Sheet and P&L Reporting
Compatibility Views
Flexibility Journal Entry extensibility Flexible Add-on Postings
Accelerate hard close
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SFIN - GL/AR/AP
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How does Simple Finance differ from Traditional Finance?
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Challenges of the current architecture Multiple sources of truth The combined content of several tables represents “the truth”. Reconciliation efforts are enforced by design
Code Table
Code Table
Material Ledger
CO
Table Code
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tion
eco nc i l i atio n
tion
Asset Acctg
Different capabilities in the components (customer fields, currencies, multi-GAAP etc.)
General Ledger ilia onc
tion
Components are structured differently (e.g. fields/entities differ) Multiple BI extractors needed to cover the complete truth in BI.
R
R
ec o n cili a
Need “to move” data to the appropriate table for reporting (e.g. “settlement”)
Rec
a cili n o Rec
CO-PA Table Code
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The new Principle of ONE Universal Journal Entry - Overview Single repository of journal entries across multiple applications without redundancy
Accounts Receivable
General Ledger
Fixed Assets
Profitability Analysis
Universal Journal
Accounts Payable
Material Ledger
Management Accounting
Custom Specific
Public Sector
Joint Venture*
This enables deeper, instant insight across all dimensions, easier extensibility, and process optimizations for an accelerated financial close.
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The new Principle of ONE Universal Journal – Concept Concept: “Take the best of ALL worlds”
Result: • ONE line item table with full detail for all applications, including Ledger, Market Segment & Coding Block • Enables instant insight & extensibility • Data stored only once – reducing memory footprint through elimination of redundancy
Impact: • No reconciliation needed by design • Fast multi-dimensional reporting possible without replicating data to BW • Greater Flexibility • Reduced data volume • Non-disruptiveness – for ABAP program perspective, “read access” remains the same. SAP provided “compatibility views”, which redirects the program to the new format in HANA 13
SFIN - GL/AR/AP
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The new Principle of ONE Current Architecture Traditionally, SAP has stored GL, customer, and vendor balances and open item statuses in a number of extra database tables in order to support reporting requirements . COSS Customer
Vendor
General Ledger
KNA1
LFA1
SKA1
Controlling COSS COBK
COEP COSP
LFC1
KNC1
GLT0 COSP
Finance BKPF
Index Tables (i.e. Open Item Tracking) BSEG
BSIS
BSID
BSET
BSIK
BSAK
BSAS
BSAD
Legend: Update Insert
A vendor invoice with 3 accounting line items would update at least 10 tables at least 15 times! 14
SFIN - GL/AR/AP
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The new Principle of ONE Simplified architecture with sFIN 2.0 Simple Finance 2.0 (powered by HANA) can achieve the same reporting directly from table ACDOCA without the need to store balances or open item statuses separately • The same vendor invoice in Simple Finance 1.0 would update at least 4 tables 7 times • The same vendor invoice in Simple Finance 2.0 would update at least 4 tables 5 times Customer
Vendor
General Ledger
KNA1
LFA1
SKA1
Controlling COBK
COEP
Finance BKPF
ACDOCA
Legend: Update Insert 15
SFIN - GL/AR/AP
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Pop Quiz How does Simple Finance differ from Traditional Finance?
A) BSIS
B) BSIK
Q: Which of the following tables are eliminated in simple finance:
C) BSID
D) FAGLFLEXT
E) All of the Above
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SFIN - GL/AR/AP
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Key Features & Functionality
Simple Finance Accounting Benefits by Area
Accounts Receivable
General Ledger • Finance documents copied from source systems to the central journal for line item consolidation • Simplified Master Data as Cost Elements are now GL Accounts • One Central platform General for GL and Consolidation Ledger preparation. • BSEG continues to have a 999 line limit, but ACDOCA does not - summarized entries appear in detail within ACDOCA • Central platform to quickly integrate newly acquired business into Central Journal • Eliminates FICO Reconciliation
Controlling • Elimination of FICO reconciliation • Further details explained in the Controlling Course 18
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• Process and IT simplification • One view to customer • One view of cash • New User Experience with Fiori apps an NetWeaver Business Client (NWBC)
Accounts Receivable
le Payab s t n u Acco
Accounts Payable
Simple Finance
• • • • •
One view to vendor Line item level details Process simplification Central Cash management Supports Shared Service model • Simplified archiving Copyright © 2014 Deloitte Development LLC. All rights reserved.
Key Changes
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SFIN - GL/AR/AP
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Ledgers in Simple Finance Standard versus Appendix Standard Ledger Leading Ledger • There must be exactly one leading ledger and is assigned to all company codes. Ledger 0L is delivered as leading ledger • Defines document number (BELNR) for all ledgers. • Basis for actual CO data (assigned to VERSN 0). • Contains full set of line items in ACDOCA. Additional Non-leading Standard Ledgers • Can be assigned to some company codes. • Contains full set of line items in ACDOCA. • Inherit currency configuration of leading ledger (in SFIN 2.0 SP0). • Deviating fiscal year variant / open period variant possible.
Appendix Ledger Appendix Ledger • Is defined on top of a the base or standard ledger and only accepts ledger specific manual adjustment postings, but reporting for the ledger will also contain transactions data of underlying base ledger • Inherits currency settings and fiscal year variant • Separate company code assignment and • Allows for control by its own Open Period Variant • Can be used e.g. to create a management views without influencing the data in the base ledger. • Several appendix ledgers can be defined onto the same base ledgers, but not on top of an existing appendix ledger (no stapling)
Appendix Ledger A “Post into closed periods for restatement purposes”
Universal Journal Appendix Ledger B Appendix Ledger C “Adjustments for consolidation purposes”
“Distribute revenues differently than in legal view”
Base Ledger 0L - US-GAAP
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Accelerated Month End Close Soft Close
Elimination of Closing Tasks
Hard Close
Better Insight within the Period
Hard Close
Leverage Soft Close and accelerate Hard Close
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Acceleration of Closing Tasks
SFIN - GL/AR/AP
• Real-time profitability by earlier derivation of market segment information from sales order items, cost centers, internal orders, and customer projects • Correct asset acquisition values at any time - now also for valuation areas with “special items” - no more periodic posting run required
• Eliminates end-of-period batch job bottlenecks • Elimination of multiple reconciliation tasks due to the universal journal
• Significant speed-up of asset depreciation run – the depreciation amounts are recalculated with every master data change or asset transaction, and no longer at periodend as part of the depreciation run. • Complex calculations that are performed at period close, for example, the calculation of work in process at actual costs, determination of production variances for production orders, and results analysis for sales orders, are pushed down to the SAP HANA database in order to accelerate the close
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Pop Quiz Key Features & Functionality
A) Cost Element
B) Internal Order Q: Which CO master data maintenance is merged into FI in SFin 2.0? C) Cost Center
D) Statistical Key Figures
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SFIN - GL/AR/AP
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Pop Quiz Key Features & Functionality
A) FAGLFLEXA
B) BSEG Q: Which table is being replaced by ACDOCA C) SKB1
D) None of the Above
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SFIN - GL/AR/AP
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Add-On Enhancements
Enhancements General Ledger - Additional Features
Balance Carry Forward • Ability to Initialize the Balances carries forward previously: The program for carrying forward balances, now enables to initialize the data carried forward previously, if we want to repeat a balance carry forward. • Ability to save Results List: Also, the results of a balance carry forward run be saved and can be displayed again using the carry forward program.
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Data Aging • Archiving object for accounting document (FI_DOCUMNT) is replaced by the Data Aging object (FI_DOCUMENT), which means data archiving for accounting documents is no longer possible. • Data aging function allows to transfer data to the database cold area, in order to ease the load on the memory.
Closing Cockpit
New End User Roles
• Provides ability to monitor the progress of entity close via KPIs also on mobile devices.
SAP delivers new end user roles to be templates for creation of company specific roles.
• Provides ability to analyze completion rate by region, country, company, working day etc.
For GL, the role name is as follows:
• Provides ability to analyze historical closing data.
• SAP_SFIN_ACC_ACT UALPOSTING • SAP_SFIN_ACC_CLO SING • SAP_SFIN_ACC_MAS TERDATA • SAP_SFIN_ACC_REP ORTING
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Enhancements Accounts Payable
Vendor Information System This application on the SAP Net Weaver Business Client (NWBC) allows for the implementation of three types of analysis for vendor invoices: • Due date analysis • Overdue items analysis • Currency analysis
AP with HANA Provides a faster, more holistic view to the stake holders on multiple platforms* • Critical due items • Critical vendors • Vendor satisfaction
New End User Roles SAP delivers new end user roles to be templates for creation of company specific roles. For AP, the role name is as follows: • SAP_SFIN_AP
*Platforms include tablet, phones, etc. 26
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Enhancements Accounts Receivable
Portfolio Adaptation With SAP Simple Finance it is recommended to use the SAP Credit Management (FIN-FSCM-CR) component that offers an integrated, cross-system form of credit management. It gives a real time view to the stake holders on multiple platforms* :
End User Roles SAP delivers new end user roles to be templates for creation of company specific roles. For AP, the role name is as follows: • SAP_SFIN_AR
• Days Sales Outstanding • Critical due items • Critical Customers
*Platforms include tablet, phones, etc. 27
SFIN - GL/AR/AP
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Pop Quiz Enhancements
A) None
B) 11 Q: How many new Simple roles has SAP delivered for AR, AP and GL? C) 6
D) 9
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Configuration Impact
Configuration Financial Org Structure Configuration Sequence of Configuration for New Implementations 1. Company Codes • •
Create Company Codes Maintain Global Data
2. Controlling Area • •
Create and configure controlling area Assign Company Codes
3. Ledger • •
Assign Company Codes Configure Currencies / Accounting Principle
4. CO Integration •
Configure CO Integration
5. Run consistency check by calling transaction FINS_CUST_CONS_CHK and clean up inconsistencies
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Configuration Company Code - Copying The functionality for copying company codes has been expanded and now includes the controlling area assignment which ensures that the currency settings are consistent. Transaction: EC01 Copy Company Codes
Note:
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If the controlling area is not included when copying a company code the currency setting have to be checked after the company code is assigned to a controlling area SFIN - GL/AR/AP
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Configuration Summarization – Recommended by SAP
Ledgers – New GL versus Simple Finance 2.0
Define Currencies of Leading Ledger
With Simple Finance 2.0, summarization can be turned on in SD & MM without losing visibility to the detail in the general ledger:
V_FAGL_T881
TC = OB22
Define Define Settings Settings for for Journal Journal Entry Entry Ledger Ledger
Define Ledgers for General Ledger Accounting
FINSVC_LEDGER
Define & Activate NonLeading Ledgers
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V_FAGL_T882G
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•
Configure document summarization at the highest common denominator, which will fill BSEG with the fewest number of line items (BUZEI)
•
Table ACDOCA will contain the full detail of the transaction at the line level as the document line item number field DOCLN is 6-digits in length.
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Pop Quiz Configuration
When you copy a company code in Simple Finance 1.0, the controlling area are included and the currency settings are inherently in sync.
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A) True
B) False
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Reporting
Reporting Accounts Receivable
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Accounts Payable
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GL Reporting - Financial Statement Reporting Eliminate manual report compilation and static, offline reporting; gain real-time financial statement reporting with flexibility to add dimensions for analysis on the fly and to drill down to account level detail
Run live financial statement reports that can expand down to GL account detail
Drill down to GL account balances
Drill down to GL account line items 36
SFIN - GL/AR/AP
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Migration
Migration: Point of view Deployment Scenario: Application Migration
1 Migrate to SAP HANA • Existing SAP system is migrated onto SAP HANA platform preserving current functionality • Execution of the reconciliation process required to ensure data consistency in accounting before installing any financials add-on
2 Run Application Migration • Process removes aggregate tables and links between FI and CO • Requires migration to new Assets Accounting Environment.
• Classic General Ledger not available, forcing a migration the New GL
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Migration System landscape options Option 1: Upgrade all SAP instances and Migrate (all instances)
SAP R/3 SAP ERP SAP ERP
Migrate
SAP ERP 6.0 EhP7 on HANA Financial Add-on
Option 2: Upgrade Migrate and Consolidate (reduce number of instances) SAP R/3 SAP ERP Migrate
SAP ERP
SAP ERP 6.0 EhP7 on HANA Financial Add-on
Option 3: Replicate into a Central Journal (optionally reduce number of instances over time)
SAP R/3 SAP ERP SAP ERP and Non-SAP
Replicate Real-time
SAP ERP 6.0 EhP7 on HANA Central Ledger
Financial Add-on 39
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Migration Phase Overview It is not necessary for a client to migrate to the new GL prior to utilize Simple Finance. During the migration, the new GL tables will get activated and populated as well with data* Preparation Training on G/L in SAP Accounting (*)
(Small)
blueprint for G/L configuration (*)
Reconciliation, period-end close activities, reporting snap shots for comparison
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Financials Add-on
Data Transfer
Data Migration
Post Processing
Installation of the Financials Add-On
Data transfer from classic G/L to G/L in SAP Accounting
Financial data migration GL/AP/AR/CO
Cold partition for old index tables
Creation of back-up tables
Reconciliation & checks after data transfer
Reconciliation & checks after migration
Activation of GL & configuration for asset accounting
Reconciliation & Checks
Reconciliation & Comparison of Financial KPI‘s
Process Tests
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Pop Quiz Migration
A) True Q: In version 2.0, companies have to migrate to the new GL in order to implement Simple Finance. B) False
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Wrap-Up
SFIN Add-On Deep Dive Learning Objectives You should now be able to: • Express what the Simple Finance solution brings to the table • Differentiate between the Simple Finance and Traditional Finance SAP solutions • Explain the key features and functionality specific to the core finance solution • Define the available enhancements relevant to GL, AR & AP • Review the improvements in reporting • Describe the impact on existing configuration objects • Discuss the different Migration options
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Wrap-Up Contacts If you have any additional questions or would like to schedule an additional training session, please contact the following individuals:
Chetan Maduri
[email protected] Shiva Murali
[email protected] Pardha Chillara
[email protected]
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Questions
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