SAP has reimagined finance for the digital age with S/4HANA Finance (formerly SAP Simple Finance). The software runs on the SAP HANA in-memory computing platform, so you can optimize processes, run on-the-fly analysis, and more. In this webinar, you will be introduced to some of the S/4HANA Finance key features and functionality likely to benefit your organization immediately.

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SAP S/4HANA Finance
Key Features and Functionality
August 2016

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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

3. Dickinson + Associates Overview

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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

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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

6. SAP S/4HANA Finance

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

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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

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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/

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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”.

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High Performance Analytic Appliance: HANA

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High Performance Analytic Appliance: HANA

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High Performance Analytic Appliance: HANA

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High Performance Analytic Appliance: HANA

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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

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Single Source of the Truth – Universal Journal
Public
Sector
Accounts
Payable
Joint
Venture
General
Ledger Profitability
Analysis
Accounts
Receivable
Cost
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.

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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 Account
Profit
Center
Amount 1 Amount 2 Amount 3 ….
CO-PA
Operating
Concern
Market
Segment
….
Universal Journal
Ledger Company Account
Profit
Center
Amount 1 Amount 2 Amount 3
Cost
Center
Fixed
Asset
Market
Segment
Material …..
CO
CO Area
Cost
Element
Amount 1 Amount 2
Cost
Center
….
Asset Accounting
Company
Fixed
Asset
….
Material Ledger
Company Material ….

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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

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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

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Compatibility Views

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G/L Accounts / Cost Elements
G/L accounts and cost elements are merged into a single record.

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G/L Accounts / Cost Elements
Secondary cost elements exist in the G/L as well.

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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

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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

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COGS Posted to G/L by Cost Component
S/4HANA Configuration

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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

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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

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Production Variances Posted to G/L by Category
S/4HANA Configuration

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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.

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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

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Real-Time Overhead Calculation
S/4HANA Configuration

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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.

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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

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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.

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ABAP Queries
BSEG table can be used in table joins
ACDOCA can be used in table joins as well

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Questions?

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Dickinson + Associates
Mike Belcher
Manager, Solutions Engineering
Mike.B@dickinson-assoc.com
847-226-1233