Implementing SAP S/4HANA Finance: System Conversion Guide to Implementing SAP S/4HANA Finance (Third Edition) (SAP PRESS)

✍ Scribed by Anup Maheshwari

• Publisher: SAP Press
• Year: 2020
• Tongue: English
• Leaves: 635
• Edition: Enlarged
• Category: Library

✦ Synopsis

Every SAP S/4HANA journey begins with a single step so get all the steps you need for your finance system conversion project! Follow the implementation path through preparation and post-migration testing, with special attention to data migration and functional configuration. From the general ledger to asset accounting and beyond, you'll align your new system with existing finance requirements and go live. Get the nitty-gritty details and pro tips with this go-to-guide and make your brownfield project a success!

Plan your SAP S/4HANA Finance brownfield project
Migrate your financials data from SAP ERP to SAP S/4HANA
Preview key finance changes and innovations in SAP S/4HANA

Migration
It's time to migrate your data from SAP ERP Financials. Learn what to do and what to watch out for at each step of the SAP S/4HANA Finance migration, from installation through testing.

Configuration
Customize your new SAP S/4HANA Finance system with key configuration settings for general ledger accounting, the accrual engine, controlling, asset accounting, credit management, and more.

Project Planning
Set realistic project timelines and manage critical project documentation! Consult and adapt a sample project plan for your on-premise implementation project.

Migration preparation
Installation
Data checks
General ledger
Asset accounting
House bank accounts
Controlling
Credit management
SAP Fiori applications and roles
Key finance innovations
Central Finance
*Implementation checklist

✦ Table of Contents

Preface
About This Book
Target Audience and Objective
Structure of This Book
Acknowledgments
Introduction
Evolution of the Chief Financial Officer
Benefits of SAP S/4HANA Finance
Functional Changes with SAP S/4HANA Finance
System Architecture with SAP S/4HANA Finance
Summary
PART I: Defining the SAP S/4HANA Journey
1 Selecting Your SAP S/4HANA Finance Project
1.1 Value Creation with SAP S/4HANA
1.1.1 Growth
1.1.2 Profitability
1.1.3 Agility
1.2 Alignment with Key Stakeholders
1.3 Transformation through the Lens of C-Suite Executives
1.3.1 Chief Executive Officer
1.3.2 Chief Financial Officer
1.3.3 Chief Information Officer
1.4 Executive Decision-Making Process
1.4.1 Greenfield versus Brownfield Projects
1.4.2 System Conversion
1.4.3 New Implementation
1.4.4 Central Finance
1.4.5 Data Transition
1.4.6 Cloud
1.5 Key Drivers
1.5.1 Organization Ecosystem
1.5.2 Business Process Design
1.5.3 Intuitive User Experience
1.5.4 Existing Customizations
1.5.5 Master Data Management
1.5.6 Reporting and Analytics
1.5.7 Future Innovations
1.6 Hardware Planning
1.7 Organization Readiness and Change Management
1.8 Decision-Making Process
1.8.1 Classic General Ledger versus New General Ledger
1.8.2 Align with Fiscal Year Close
1.8.3 Asset Accounting
1.8.4 Business Partner Conversion
1.8.5 Credit Management
1.8.6 Material Ledger
1.8.7 Treasury and Cash Management
1.8.8 Source System Financial Data Reconciliation
1.9 Summary
2 System Conversion Project Planning
2.1 Path from SAP ERP to SAP S/4HANA
2.2 Transition from SAP ERP to SAP S/4HANA
2.2.1 System Conversion
2.2.2 New Implementation
2.2.3 Selective Data Transformation
2.2.4 Decoupled Conversion
2.2.5 Comparing All the Options
2.3 Elements of a Successful SAP S/4HANA Adoption
2.4 SAP S/4HANA Infrastructure Options
2.4.1 Choice of Application
2.4.2 Choice of Infrastructure
2.5 SAP S/4HANA Deployment Options
2.6 SAP Readiness Assessment
2.6.1 Guiding Principles
2.6.2 Prerequisites
2.6.3 Maintenance Planner
2.6.4 Source System Check
2.6.5 Custom Code Check
2.6.6 Key Activities and Timeline
2.6.7 Assessment Approach
2.6.8 Technical Impact Assessment
2.6.9 Functional Impact Assessment
2.7 Business Case for Simplification Details
2.7.1 Data Model Changes in Finance
2.7.2 Obsolete or Replaced Transaction Codes and Programs in Finance
2.7.3 General Ledger
2.7.4 Cost Element
2.7.5 Data Structure Changes in Asset Accounting
2.7.6 Asset Accounting
2.7.7 General Ledger Planning
2.7.8 Manual Accruals
2.7.9 SAP Cash Management
2.7.10 SAP Credit Management
2.7.11 Profitability Analysis
2.7.12 Material Ledger
2.7.13 Customer Vendor Integration
2.8 Key Tools to Facilitate System Conversion
2.8.1 SAP Transformation Navigator
2.8.2 SAP Readiness Check
2.8.3 ABAP Test Cockpit
2.8.4 Software Update Manager
2.8.5 SAP Solution Manager
2.8.6 simplification item Catalog
2.9 Project Phases for Conversion to SAP S/4HANA
2.9.1 Preparation
2.9.2 Installation
2.9.3 Customizing
2.9.4 Data Migration
2.9.5 Post-Migration
2.9.6 Testing
2.10 System Conversion: Recommendations and Lessons Learned
2.11 Summary
PART II: SAP S/4HANA System Conversion
3 Preparation
3.1 Planning and System Requirements
3.2 Check Functional Scope and Restrictions
3.3 Feasibility Checklist
3.4 The Maintenance Planner and Prechecks
3.5 Simplification List
3.6 Check Custom Coding
3.6.1 Check Custom Code and Modifications
3.6.2 Handling Custom-Defined Fields and Interfaces
3.7 Check Sizing
3.8 Prerelease Checks
3.8.1 Validation of Add-ons
3.8.2 Validation of Business Functions
3.8.3 Prerelease Checks and Analysis of Errors
3.8.4 Error Messages and Their Significance
3.9 Precheck for Migration to New Asset Accounting
3.10 Activate Business Functions
3.10.1 Activate Business Functions for Asset Accounting and Parallel Valuation
3.10.2 Activate Enterprise Financials Extension (EA-FIN)
3.10.3 Business Function FIN_AA_CI_1
3.10.4 Activate Business Functions for Cash Management
3.11 Check and Activate New Depreciation Calculation
3.11.1 Execute the Periodic Depreciation Posting Run
3.11.2 Execute Year-End Closing
3.11.3 Fiscal Year Change
3.12 Consistency Checks
3.12.1 Data Consistency Checks and Reconciliation
3.12.2 Reconciliation of the General Ledger with Accounts Payable/ Accounts Receivable
3.12.3 Reconciliation of the General Ledger with Asset Accounting
3.12.4 Reconciliation of the General Ledger with Materials Management
3.12.5 Reconciliation of Ledgers
3.13 Perform Period-End Closing Activities
3.13.1 Copy Number Ranges
3.13.2 Lock Periods in Materials Management
3.13.3 Perform Closing for Periodic Asset Postings
3.13.4 Execute the Periodic Depreciation Posting Run
3.13.5 Verify Held Documents Status
3.13.6 Carry Balances Forward to the Current Fiscal Year
3.13.7 Reset Valuations for Periods in the Current Fiscal Year
3.13.8 Lock Prior Periods in SAP ERP Financials and Controlling
3.13.9 Batch Jobs
3.13.10 Execute Report to Confirm Asset Accounting Prerequisites
3.13.11 Lock Users
3.14 Consistency Check before Activation of SAP S/4HANA Finance
3.15 Execute Business Reconciliation
3.16 Summary
4 Installation and Upgrade
4.1 Installation and Upgrade Checklist
4.1.1 SAP HANA and Minimum Versions
4.1.2 Software Update Manager
4.1.3 SAP HANA Live
4.1.4 Administrator’s Guide, Release Information Note, and Browser Support
4.1.5 SAP Cash Management, Cost Objects, and Cost Object Hierarchies
4.1.6 Industry Solutions and Add-Ons
4.1.7 Maintenance Optimizer
4.1.8 Target Stack XML and SAP NetWeaver Kernel
4.1.9 Customer Code
4.1.10 Data Definition Language Statement Corrections
4.2 Review Data Model Changes
4.3 Use the Maintenance Planner
4.4 Install the Related Software Component Version
4.5 Apply SAP Notes
4.6 Content Deployment with SAP HANA Application Lifecycle Management
4.7 Perform SAP HANA-tization
4.7.1 SAP HANA-tization Checks
4.7.2 SAP HANA-tization Tools
4.8 Optimization
4.8.1 Optimization Approach
4.8.2 Optimization Tools
4.8.3 Optimization Best Practice
4.8.4 SAP HANA Modeling
4.9 Lessons Learned
4.10 Summary
5 Preparation and Migration for SAP General Ledger
5.1 Check and Adopt Fiscal Year Variants
5.2 Define Currency Settings for Migration
5.3 Migrate General Ledger Customizing
5.4 Define Settings for Ledgers and Currency Types
5.5 Define Ledger Groups
5.6 Assign the Accounting Principle to the Ledger Group
5.7 Review the Assignment of Ledger and Company Code to Accounting Principles
5.8 Define the Ledger for the Controlling Version
5.9 Define Document Types for Postings in Controlling
5.10 Define Document Type Mapping for Controlling Business Transactions
5.11 Check and Define Default Values for Postings in Controlling
5.12 Define the Offsetting Account Determination Type
5.13 Define the Source Ledger for Migration of Balances
5.14 Check and Define Settings for Substitution for Cost of Sales Accounting
5.15 Check and Define Settings of Controlling Area
5.16 Execute Consistency Check of General Ledger Settings
5.17 Activate Business Functions
5.18 Lessons Learned
5.19 Summary
6 Preparation and Migration for the Accrual Engine
6.1 Migration Precheck for Customizing
6.2 Migrate Customizing for the Accrual Engine
6.3 Manual Migration Steps for Account Determination
6.3.1 Define Set of Rules
6.3.2 Define Values for Set of Rules
6.3.3 Extended Account Determination
6.3.4 Create and Edit Account Determination Post-Migration
6.4 Migrate Validation Checks
6.5 Preparing to Migrate Transactional Data
6.5.1 Specify Account Used for Migration
6.5.2 Create Mass Data Project for Migration of Accrual Engine
6.5.3 Assign Migration Project to Company Codes
6.6 Summary
7 Preparation and Migration for Asset Accounting
7.1 Prerequisites
7.2 Install SAP S/4HANA Finance with New Asset Accounting
7.3 Migrate Charts of Depreciation
7.4 Display Migration Log
7.5 Perform Additional Manual Activities
7.5.1 Define Asset Balance Sheet Accounts of Parallel Valuation
7.5.2 Define the Depreciation Area for a Quantity Update
7.5.3 Define the Technical Clearing Account for Integrated Asset Acquisition
7.5.4 Specify an Alternative Document Type for Accounting-Principle-Specific Documents
7.5.5 Specify Revenue Distribution for Asset Retirement
7.5.6 Post Net Book Value Instead of Gain/Loss
7.5.7 Check Transaction Types
7.6 Check Prerequisites for Activating New Asset Accounting
7.7 Determine Active Charts of Depreciation
7.8 Change Definitions of Depreciation Areas
7.9 Specify Transfer of Acquisition and Production Cost Values
7.10 Specify Transfer of Depreciation Terms
7.11 Activate New Asset Accounting
7.12 Adjust Parameters in Charts of Depreciation
7.13 Lessons Learned
7.14 Summary
8 Preparation and Migration for Controlling
8.1 Execute SAP Business Warehouse Delta Extraction for Account-Based Profitability Analysis
8.2 Adapt Settings for Profitability Segment Characteristics
8.3 Maintain the Operating Concern
8.4 Activate Account-Based Profitability Analysis
8.5 Transport Operating Concern
8.6 Summary
9 Preparation and Migration for Material Ledger
9.1 Migrate Material Ledger Customizing
9.2 Check Assignment of Material Ledger Types to Valuation Areas
9.3 Summary
10 Preparation and Migration for House Bank Accounts
10.1 Define Number Ranges for Bank Account Technical IDs
10.2 Define Number Ranges for Change Requests
10.3 Assign Number Ranges
10.4 Define Settings for Bank Account Master Data
10.4.1 Bank Account Types
10.4.2 Define Sensitive Fields to Be Protected from Changes
10.4.3 Define Import Methods for Bank Statements
10.4.4 Define Signatory Groups for Payment Approvals
10.4.5 Define the Signatory Groups and Approval Sequence for Approval Patterns
10.4.6 Assign Approval Patterns
10.5 Lessons Learned
10.6 Summary
11 Preparation and Migration for SAP Credit Management
11.1 Define Settings for SAP Credit Management Migration
11.2 Migrate SAP Credit Management Customizing
11.3 Define the Credit Analyst Group as a Business Partner Group
11.4 Assign the Credit Representative Group to the Credit Analyst Group
11.5 Define the Customer Credit Group
11.6 Assign a Credit Management Group to a Customer Credit Group
11.7 Assign an SAP Credit Management Processor to a Credit Analyst Group
11.8 Check and Define SAP Credit Management Customizing
11.9 Check Customizing Settings
11.10 Lessons Learned
11.11 Summary
12 Data Migration
12.1 Partitioning of the Universal Journal Entry Line Items Table
12.2 Regenerate Core Data Services Views and Field Mapping
12.3 Analyze Transactional Data
12.4 Display Status of Analysis of Transactional Data
12.5 Start and Monitor Data Migration
12.6 Migration of Cost Elements
12.6.1 Check Consistency of General Ledger Accounts and Cost Elements
12.6.2 Migrate Secondary Cost Elements to the Chart of Accounts
12.6.3 Display Status of Migration of Cost Elements
12.6.4 Migrate Default Account Assignments
12.6.5 Display the Status of the Default Account Assignments Migration
12.6.6 Adopt Authorizations
12.6.7 Define Authorizations and Profiles
12.7 Technical Check of Transaction Data
12.7.1 Reconcile Transactional Data
12.7.2 Display Status of Technical Reconciliation of Transactional Data
12.8 Material Ledger Migration
12.8.1 Migrate Material Ledger Master Data
12.8.2 Check Material Ledger Master Data
12.8.3 Migrate Material Ledger Order History
12.8.4 Check Material Ledger Production Order and Purchase Order History
12.9 Enrichment of Data
12.9.1 Enrich Transactional Data
12.9.2 Display Status of Transactional Data Enrichment
12.9.3 Check of Migrated Documents
12.9.4 Display Status of Migrated Documents Check
12.10 Migration of Line Items into the New Data Structure
12.10.1 Migrate Accounting Documents to the Universal Journal Entry Structure
12.10.2 Display the Status of Document Migration to the Universal Journal Entry
12.10.3 Check Migration of Accounting Documents to the Universal Journal Entry
12.10.4 Display Status of Accounting Document Migration Check
12.11 Migration of Balances
12.11.1 Migrate Balances
12.11.2 Display Status of Migration of Balances
12.11.3 Check Migration of Balances
12.11.4 Display Status of Migration of Balances Check
12.12 Migrate SAP General Ledger Allocations to Journal Entry
12.13 Calculation of Depreciation and Totals Values
12.13.1 Calculate Initial Depreciation Values
12.13.2 Display Status of Calculate Initial Depreciation Values
12.13.3 Check Initial Depreciation and Total Values
12.13.4 Display Status of Check Initial Depreciation and Total Values
12.14 Migrate House Bank Accounts
12.15 SAP Credit Management Migration
12.15.1 Migrate Credit Management Master Data
12.15.2 Display Status of Migration of Credit Management Master Data
12.15.3 Migrate Credit Management Exposure
12.15.4 Display Status of Credit Management Exposure Migration
12.15.5 Initialize Documented Credit Decisions
12.15.6 Display Status of Initialization of Documented Credit Decisions
12.15.7 Reconcile Documented Credit Decisions
12.16 Complete the Migration
12.16.1 Reconcile and Compare Migrated Data
12.16.2 Set Migration to Completed
12.17 Migration with Near-Zero Downtime
12.17.1 Near-Zero Downtime
12.17.2 Restrictions on Business
12.17.3 Activities in the Clone System
12.17.4 Delta Migration
12.18 Data Migration Tools
12.18.1 Legacy System Migration Workbench
12.18.2 Rapid Data Migration
12.18.3 SAP S/4HANA Migration Cockpit
12.19 Lessons Learned
12.20 Summary
13 Post-Migration Activities
13.1 Run Reconciliation Reports to Check Data Consistency
13.2 Validate Business Process to Ensure Successful Migration
13.3 Transfer Application Indexes
13.4 Display Status of Application Indexes Transfer
13.5 Fill Due Dates in FI Documents
13.6 Display Status of Filling Due Dates in Financial Documents
13.7 Fill the Offsetting Account in Financial Documents
13.8 Display Status of Filling Offsetting Account in Financial Documents
13.9 Enrichment of Balance Carryforward
13.10 Manual Activities for Credit Management
13.11 Migration of Accrual Engine Data
13.12 Deactivate Reconciliation Ledger
13.13 Additional Post-Conversion Manual Activities
13.14 Post-Conversion Changes
13.14.1 Changes Needed for Authorizations
13.14.2 Changes Needed for Customers Using SAP Fiori
13.14.3 Changes Needed for Data Warehousing Applications
13.15 Lessons Learned
13.16 Summary
14 Post-Migration Testing
14.1 Test SAP HANA-Optimized Report Transactions
14.2 Test Multidimensional Reporting Capability
14.3 Test Database Footprint Reduction
14.4 Test Intercompany Reconciliation
14.5 Test the New Process Redesign
14.6 Test Closing Improvement
14.7 Test the Universal Journal
14.8 Execute Performance Testing
14.9 Execute Change Management
14.10 Summary
PART III: Finance Transformation
15 Key Changes in SAP S/4HANA Finance
15.1 Process Overview and Changes in Financial Accounting
15.1.1 Universal Journal/General Ledger Accounting
15.1.2 Profit Center Accounting
15.1.3 Accounts Receivable
15.1.4 SAP Credit Management
15.1.5 Collections Management
15.1.6 Dispute Management
15.1.7 Accounts Payable
15.1.8 Bank Accounting
15.1.9 SAP Bank Communication Management
15.1.10 New Asset Accounting
15.1.11 Tax Accounting
15.1.12 Inventory Accounting
15.1.13 Revenue Accounting
15.1.14 Joint Venture Accounting
15.1.15 Contract Account Receivables and Payables
15.1.16 Funds Management
15.1.17 Real Estate
15.1.18 Special Purpose Ledger
15.1.19 SAP S/4HANA Finance Cloud for Customer Payments
15.1.20 Travel Management
15.1.21 Country Localization
15.1.22 Profitability Analysis
15.1.23 Financial Close and SAP Financial Closing Cockpit
15.1.24 Central Finance
15.2 SAP General Ledger
15.2.1 Architectural Impact
15.2.2 Functionality Impact
15.2.3 Configuration Impact
15.2.4 Customer and Vendor Master Data
15.2.5 SAP Credit Management Impact
15.3 Period-End Closing
15.3.1 Architectural Impact
15.3.2 Functionality Impact
15.3.3 Security Impact
15.4 Asset Accounting
15.4.1 Functionality Impact
15.4.2 Architectural Impact
15.4.3 Configuration Impact
15.4.4 Closing Process Impact
15.5 Controlling
15.5.1 Functionality Impact
15.5.2 Configuration Impact
15.6 Cost Center and Profit Center Accounting
15.6.1 Architectural Impact
15.6.2 Functionality Impact
15.7 Profitability Analysis
15.7.1 Architectural Impact
15.7.2 Functionality Impact
15.7.3 Configuration Impact
15.8 SAP Cash Management
15.8.1 SAP Business Client
15.8.2 Functionality Impact
15.8.3 Security Impact
15.8.4 Configuration Impact
15.9 Business Planning and Consolidation
15.10 Summary
16 SAP Fiori User Experience
16.1 Project Phases
16.2 Architecture
16.3 Configure SAP Fiori
16.4 Install SAP Fiori Apps
16.4.1 Transaction and Fact Sheet Apps
16.4.2 Analytical Apps
16.5 SAP Fiori Launchpad
16.5.1 Frontend User Screen
16.5.2 Backend Configuration Screen
16.5.3 SAP Smart Business Key Performance Indicators
16.6 SAP Fiori Applications and Roles
16.6.1 General Ledger Accountant
16.6.2 Accounts Payable Accountant
16.6.3 Accounts Receivable Accountant
16.6.4 Controller
16.6.5 Cash Manager
16.6.6 Cost Manager
16.6.7 Asset Accountant
16.7 SAP Smart Business Application and Roles
16.7.1 For Accounts Payable
16.7.2 For Accounts Receivable
16.7.3 For Chief Financial Officers
16.7.4 For SAP Cash Management
16.8 Summary
17 Innovations in SAP S/4HANA Finance
17.1 Financial Accounting
17.1.1 Accruals Management
17.1.2 Goods Receipt and Invoice Receipt Reconciliation
17.1.3 Time-Dependent Tax Code
17.1.4 Display Journal Entries as T-Accounts
17.1.5 SAP Account Substantiation and Automation by BlackLine
17.2 Financial Close
17.2.1 Group Reporting
17.2.2 SAP S/4HANA Cloud for Advanced Financial Closing
17.3 Management Accounting
17.3.1 Universal Allocations
17.3.2 Where-Used List
17.3.3 SAP RealSpend
17.4 Financial Planning and Analysis
17.4.1 Margin Analysis
17.4.2 Predictive Accounting
17.5 Summary
18 Central Finance
18.1 The Business Case for Central Finance
18.1.1 Key Benefits
18.1.2 Central Finance Candidates
18.2 Key Program Principles
18.2.1 Architecture
18.2.2 New Capabilities
18.2.3 Prerequisites
18.2.4 Mapping
18.2.5 Initial Load
18.2.6 Replication: Procure to Pay
18.2.7 Replication: Order to Cash
18.2.8 Error Handling
18.3 Lessons Learned
18.4 Summary
Appendices
A Project Plan for SAP S/4HANA Finance Conversion
B The Author
Index