1

SAP S/4HANA Finance

Key Features and Functionality

August 2016

2

Agenda

� Dickinson + Associates Overview

� Fiori

� In-memory Computing

� One Source of the Truth

� Cost Elements vs. G/L Accounts

� COGS by Cost Component

� Production Order Variance Categories

� Optimized Transactions for Period-End Closing

� Fixed Asset Line Items

� Real-Time Overhead Calculation

� Profitability Analysis

� ABAP Queries

Dickinson + Associates Overview

4

Dickinson + Associates Service Offerings

Software S/4 HANA Finance

Analytics

HANA

Logistics

Data and

Reporting

Innovations

Application Support

Products

S/4 HANA

BusinessObjects

HANA

Cloud

Industry

IM&C

Mill Products

CPG

Chemical

A&D

Financial Services

5

Why Dickinson + Associates?

THOUGHT

LEADERSHIP

FLEXIBILITY

TEAMWORK

COMPREHENSIVE

CONSULTING

BUSINESS PEOPLE who know SAPBUSINESS PEOPLE who know SAPBUSINESS PEOPLE who know SAPBUSINESS PEOPLE who know SAP

We bring years of real business

experience and achieve success

through dedicated teamwork.

Our consultants have been in

positions of responsibility in

industry, averaging nearly 18

years of business experience

and seven years of SAP

expertise

Dickinson + Associates seeks

every opportunity to uncover

business value and leverage

SAP’s capabilities to improve

our client’s operations

Dickinson + Associates works

with our clients and SAP to

devise a solution that fits the

needs, timeline, and budget

SAP S/4HANA Finance

7

Financials Add-On for SAP Business Suite Powered by SAP HANA

8

SAP Fiori – SAP’s New Modern User Interface

� Role-based

Designed for you, your needs,

and how you work

� Adaptive

Adapts to multiple use cases

and devices

� Simple

Only what is necessary

� Coherent

Provides one fluid, intuitive

experience

� Delightful

Makes an emotional

connection

9

SAP Fiori App Types

� Transactional Apps

These apps let you perform transactional tasks such as post incoming payments.

They represent a simplified views and interaction with existing business processes

and solutions.

� Fact Sheets

These apps display contextual information and key facts about central objects used

in your business operations. From a fact sheet area you can drill down into its

details.

� Analytical Apps/Smart Business Cockpits

These apps let you get role-based insight into real-time operations of your business

by collecting and displaying key figures directly in your browser. You can closely

monitor your most important key performance indicators (KPIs) in real time and

react immediately on changes in market conditions or operations.

A listing of all Fiori apps can be found online in the Fiori Apps Library

https://fioriappslibrary.hana.ondemand.com/sap/fix/externalViewer/

10

High Performance Analytic Appliance: HANA

� SAP HANA transforms businesses by streamlining transactions, analytics,

planning, and predictive data processing on a single in-memory database so

business can operate in real time.

� IN-MEMORY means all data is stored in the memory (RAM). There is no time

wasted in loading data from hard disk to RAM. Everything is in-memory all the

time which gives the CPU quick access to data for processing.

� COLUMN STORAGE vs. ROW STORAGE – SAP HANA is a column oriented

database. Storing data by column results in better compression than

conventional row storage. It also performs well while query processing since

queries read only the columns which are required.

� NO PRE-AGGREGATION– Pre-aggregation is no longer required. Therefore,

users do not have to wait hours to get the data they need. Flexible ad-hoc

analysis can be performed at any time.

� WHY SAP HANA?– SAP HANA enables businesses to make smarter, faster

decisions through real-time analysis and reporting combined with dramatically

accelerated business processes. The lack of delay between insight and action

results in a “real time business”.

11

High Performance Analytic Appliance: HANA

12

High Performance Analytic Appliance: HANA

13

High Performance Analytic Appliance: HANA

14

High Performance Analytic Appliance: HANA

15

Different Sources of the Truth

General

Ledger

Controlling

Profitability

Analysis

Asset

Accounting

Material

Ledger

Balance Sheet Profit & Loss

G/L and COPA updated

based on different events

(e.g. shipping vs. billing)

Different level of detail due

to document

summarization

No profit center or G/L

account in Asset

Accounting totals

Material Ledger does not

store profit center or G/L

account

16

Single Source of the Truth – Universal Journal

Public

SectorAccounts

Payable

Joint

Venture

General

Ledger Profitability

Analysis

Accounts

ReceivableCost

Center

Accounting

Asset

Accounting

Material

Ledger

Universal Journal

Single repository of journal entries across multiple applications without redundancy

This enables deeper, instant insight across all dimensions, easier extensibility, and

process optimizations for an accelerated close.

17

Universal Journal - Architecture

� One line item table with full detail for all components. Data stored only once so

no reconciliation needed.

� Reduction of memory footprint through elimination of redundancy.

� Fast multi-dimensional reporting on Universal Journal possible without replicating

data in BI.

GL

Ledger Company AccountProfit

CenterAmount 1 Amount 2 Amount 3 ….

CO-PAOperating

Concern

Market

Segment….

Universal Journal

Ledger Company AccountProfit

CenterAmount 1 Amount 2 Amount 3

Cost

CenterFixed

Asset

Market

SegmentMaterial …..

CO

CO AreaCost

ElementAmount 1 Amount 2

Cost

Center….

Asset Accounting

CompanyFixed

Asset….

Material Ledger

Company Material ….

18

List of Tables Replaced by Compatibility Views

Index tables removed

BSIS Index for G/L Accounts (open items)

BSAS Index for G/L Accounts (cleared items)

BSID Index for Customers (open items)

BSAD Index for Customers (cleared items)

BSIK Index for Vendors (open items)

BSAK Index for Vendors (cleared items)

BSIM Index, Documents for Material

FAGLBSIS Index for G/L Accounts – New G/L (open items)

FAGLBSAS Index for G/L Accounts – New G/L (cleared items)

Aggregate tables removed

GLT0 General Ledger: Totals

GLT3 Summary Data Preparations for Consolidation

FAGLFLEXT New General Ledger: Totals

KNC1 Customer Master (transaction figures)

LFC1 Vendor Master (transaction figures)

KNC3 Customer Master (special G/L transaction figures)

LFC3 Vendor Master (special G/L transaction figures)

COSS Cost Totals for Internal Postings

COSP Cost Totals for External Postings

19

List of Tables Replaced by Compatibility Views (cont.)

Tables removed

FAGLFLEXA New General Ledger: Line Items

COEP Cost Line Items

ANEP Fixed Asset: Line Items

ANEA Fixed Asset: Line Items for Proportional Values

ANLC Fixed Assets: Value Fields

ANLP Fixed Assets: Periodic Values

MLIT Material Ledger Line Items

CKMI1 Material Ledger: Index for Accounting Documents

20

Compatibility Views

21

G/L Accounts / Cost Elements

� G/L accounts and cost elements are merged into a single record.

22

G/L Accounts / Cost Elements

� Secondary cost elements exist in the G/L as well.

23

COGS Posted to G/L by Cost Component

� Total value of material shipped to

customer is posted to a single COGS

account in the G/L.

� Visibility to COGS by cost component

in CO-PA only.

� Some clients opted to create a custom

program to restate COGS in the G/L by

cost component.

Typical COGS Posting

24

COGS Posted to G/L by Cost Component

� Total value of material shipped to

customer is posted to the G/L by cost

component.

� Cost components can be mapped to

G/L accounts 1:1 or at a more

summarized level.

S/4HANA Finance COGS Posting

25

COGS Posted to G/L by Cost Component

S/4HANA Configuration

26

Production Variances Posted to G/L by Category

� Total production order variance is

posted to a single G/L account.

� Variance categories visible only in

production orders or CO-PA.

Typical Production Order Variance Posting

27

Production Variances Posted to G/L by Category

� Variances posted to the G/L by

variance category.

� Variance categories can be mapped to

G/L acconts 1:1 or at a more

summarized level.

S/4HANA Finance Production Order Variance Posting

28

Production Variances Posted to G/L by Category

S/4HANA Configuration

29

Typical Overhead Calculation

� Typically, overhead is calculated at month-end either individually via transaction KGI2 or collectively via

transaction CO43. As such, no absorption of overhead was posted until month-end.

� In order to see more frequent overhead absorption, the following options were availalbe.

� Perform overhead calcuations on a more frequent basis (i.e. weekly or daily).

� Use activity types in the routing to absorb overhead instead of using a costing sheet.

30

Real-Time Overhead Calculation

� In S/4HANA Finance, overhead can be applied in real-time to both material consumption and activity

postings.

� Overhead is applied automatically during the production order confirmation.

S/4HANA Finance Production Order Confirmation

31

Real-Time Overhead Calculation

S/4HANA Configuration

32

Optimized Transactions for Period-End Processing

� New transactions are introduced for period-end processing of production orders.

� New transactions result in 10% - 40% performane improvement.

33

Fixed Asset Line Items

� In previous versions of SAP, the

depreciation posting in the G/L was

summarized by cost center.

� In S/4HANA, a separate line item is

written for each asset.

S/4HANA Finance Depreciation Posting

34

Enhancements in Profitability Analysis

� Account-based COPA becomes the default in S/4HANA Finance.

� S/4HANA functionality such as the following reduce the need for costing-based

COPA.

� Split of COGS by Cost Component in the G/L

� Split of Variance Categories in the G/L

� Costing-based COPA continues to exist and be supported. However, new

enhancements will focus on account-based COPA.

� Customers can continue to use account-based COPA and costing-based COPA

in parallel.

� Costing-based COPA is still required for multiple valuations of COGS.

35

ABAP Queries

BSEG table can be used in table joins

ACDOCA can be used in table joins as well

36

Questions?

37

Dickinson + Associates

Mike Belcher

Manager, Solutions Engineering

Mike.B@dickinson-assoc.com

847-226-1233