Delta from SAP ERP Financials to SAP S/4HANA Finance
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Interested in learning more about the changes in SAP S/4HANA Finance? Learn what is meant by the merge of financial accounting and controlling in SAP S/4HANA. Discover how the accounting structure and tables have changed and what the implications are. Walk through each area of financial accounting and identify what has changed, along with relevant configurations. Take a look at how new general ledger transactions work in SAP S/4HANA and find out what the universal journal is. Explore important changes to asset accounting and identify updates to the underlying table structure to allow for real-time posting between asset accounting and the general ledger. Learn more about the preparation and migration tools available.
- Key changes to financial accounting and structure in SAP S/4HANA Finance
- New general ledger structure in the universal journal
- Master data changes in G/L accounts and the business partner
- SAP S/4HANA preparation and migration tools
Reading Example
2.1 Background
SAP ECC 6.0 and earlier versions of SAP were made up of a number of separate modules such as financial accounting, controlling, purchasing, sales and distribution, manufacturing, plant maintenance, asset accounting, and so on. Most modules had their own tables and own data and although most of them eventually posted into the financial accounting (FI) module, they did not always post in real time things could be missed, and a lot of batch postings and checking took place.
Primary costs were posted to FI, but not secondary costs, which stayed in CO. This could lead to different profit figures for management reporting and for financial reporting and even profitability analysis reports sometimes included or excluded items that were or were not in financial and management accounting.
In addition, if you still had the classical general ledger (G/L) and wanted to report figures according to different accounting principles, such as local generally accepted accounting principles (GAAP) or International Financial Reporting Standard (IFRS) reporting, it could be quite complicated to extend the chart of accounts to cover both, adjust the configuration and financial statement versions accordingly, and then reconcile the two figures.
At the end of each period, a considerable amount of time could be spent checking that everything was posted through to the G/L, running reports from different sources, and performing reconciliations between the different modules and different accounting principles. There were also a number of tasks which could only be performed at the period end, making the period closing a long and complicated process.
With the advent of the New General Ledger in 2004, things became slightly easier, as you could then create additional ledgers for the different accounting principles. You could post most items automatically to one or more ledgers at the same time, with additional adjustments to individual ledgers where values were different.
In some cases, for example in asset accounting, not all transactions could be posted in real time, and transactions to additional depreciation areas had to be posted separately to the parallel ledgers at the end of the month.
The most important changes in finance in SAP S/4HANA revolve around the concept of a single source of truth, which we will explain in the next section.
Ratings
T. Stefan
23.08.2023
A. Bay
25.04.2021
R. Woodstock
28.12.2019
This book is a real labour-of-love in which Oona Flanagan provides highlights of the key Deltas between ECC and S4HANA. Not only does it cover config & master data but is also outlines the key changes to transactions and KPI reports. It provides an invaluable guide to any high-performing organization that wishes to undertake a seamless transition to S4HANA.T. Michael
03.10.2019
Well researched book explaining the changes from ECC 6 to S/4HANA. Oona did a great job organizing the content by component, with many useful examples and screen shots - great job!E. Collins
28.08.2019
Informative and an excellent bridge between ERP financial and S/4 Hana Finance. Well written with lots of detail and examples