Next Generation

Generation - SAP S/4 HANA

HANA Finance

SAP S/4 HANA Finance

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Nov 2016
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Training Details

Training Purpos
Purposee

To gain SAP S/4 HANA Finance overview, and key points for SAP S/4 HANA Finance
implementations/Migrations.

Target Attendan
Attendants
ts

 FI-CO Consultants
 Team leads
 Project managers

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Agenda
Agen da Topic

Introductions

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Agenda
Agen da Topic

Overview of SAP S/4 HANA

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Typical Challenges raised by CxOs……..

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How In-Memory Paradigm is Transforming IT & Business

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SAP ERP Evolution

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Roadmap : The Path to S/4 HANA - Simplified Enterprise Application for Business

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S/4 HANA – The next Generation Business Suite

What Changes with S/4 HANA? Key Benefits?

1. A complete rewrite of the old ECC code for that functional area, and 1. Move OLAP back into ERP
includes moving application code down to the database as stored 2. Bring in many data sources from inside and outside the business
procedures into the HANA platform
2. New data model with removal of all old tables, aggregates and 3. Use Speed of In-Memory to match & cleanse data on the fly
indices to fewer columnar based tables – So Real Single Version of 4. Build business rules in the Platform to create a new Data Model
the Truth and new processes
5. Optimization of business processes including removal of
3. Transactions are automatically enabled with new SAP Fiori front end
unnecessary steps, and some batch processing
for anytime, anywhere access
6. Deliver actionable insight and innovation fast from “Big Data
4. Real Time Operational Analytics on the ERP platform versus data 7. Simplified User Interface via SAP Fiori
latency with SAP BW reporting.,
Key pre-Reqs What Makes this possible?
1. ECC on RDMS will only provide limited benefits versus S/4 HANA 1. In Memory Database … RDMS will never be supported for S/4
2. Suite on HANA will provide some benefits HANA
3. Full IT and Business Benefits from S/4 HANA and enablement of S- 2. Support for Columnar Database tables
Innovations 9 layer via stored procedures
3. Ability to move logic to database
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S/4 HANA – ERP Platform of the Future

HCM Marketing &

(New Simple ERP)
(HR & Talent) E-Commerce
Peopl
Internet
SAP S/4HANA applications and e
of Things
extensions
• Simple Finance (New)
• Simple Logistics (New)
• Industry & LOB Solutions (Core)
Business Devices
SAP HANA Platform
networks
• SAP Fiori User Interface (role-
based user expérience for all
devices)
• HANA Cloud Platform (HCP)
(DevOps Platform for SAP HANA Big
Social Procurement Sales &
Extensions) Data
networks & Travel Service
• Analytics Platform
• Integration Platform (e.g. HANA
Cloud Integration (HCI) for SaaS;
BigData Integration)

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SAP S/4 HANA – Delivers unique value to Business and IT

Reimagined Reimagined Business Reimagined Business

Business Models Processes Decisions
Simplicity to connect to people, Simplicity to focus on the essential tasks Simplicity to focus on the essential tasks
devices, business networks and change business processes and change business processes

No more complex collaboration – No more batch – No more manual consolidation – all

all business connected all processes in real time decisions on the fly and at the highest
level of granularity

Reimagined Reimagined
Reimagined System Configuration
User Experience Simplicity to configure the system with Data Model
Simplicity to focus on the essential tasks guided configuration Simplicity to reduce data footprint with in‐
and change business processes memory technology – no indices, no
aggregates, no redundancies

Function Role System driven configuration Traditional In‐memory

oriented oriented databases platform
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Agenda Topic

Overview of SAP S/4 HANA

Finance

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What is SAP S/4 HANA Finance (formerly SAP Simple Finance)

SAP Simple Finance is a comprehensive finance solution based on SAP HANA,
available with SAP Business Suite 4 HANA, or S/4 HANA allowing “real-time”
analytics at “most granular level” across all financial dimensions with a new data
model and new user experience.

Instant business insight Intuitive User Experience Flexible and Non-disruptive Streamlined Data
Real Time Processes All devices Cloud or on premise Model
Single Source of Truth

 It should not be interpreted as merely a simplified version of SAP FI/CO , contrary to what the name suggests.
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What is HANA

What is HANA?
Acronym for "High-Performance Analytic Appliance“
The HANA platform brings processes and analytics together, enabling clients to use real-time data
for fast decisions and outperform the competition
HANA is a combination of technologies:
•In-Memory data storage
•Column-based storage
•Optimisation and compression
•Data logic moved from application layer to data layer

In-Memory is a technology that …

 Allows processing of massive quantities of real-time data
 Provides immediate results from analysis and transactions
 Utilises main memory (RAM) of the system for faster processing

Column Based Storage

 Relational Databases traditional use row-based data storage
 HANA support both row-based and column-based storage, and is
optimised for column-based
 Colum-based storage has benefits such as faster data access, better
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compression, better parallel processing
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SAP S/4 HANA Finance – Product View

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What’s in it for …..

+ Simple Data Model + Single Source of Truth

• Predictive Business data
+ Transaction processing and • Period Close Simulation
+ Reduced Data Footprint
analytics together • Fraud & Risk Management
• Deeper real-time insights
+ High Data throughput
+ Accelerated Close across organization
• Support for Database
+ Multiple Deployment
+ On the fly Capabilities platforms
Options
+ New functionalities …..much more
+ Non-disruptive

+ Inline with latest trends + Integrated Planning

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+ NextGen User Experience
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Challenges of the ECC Architecture - Multiple Sources of Truth

Challenges in ECC
:

 Cumbersome
Reporting of
Financial data

 Effort intensive
financial closure
due to large
reconciliation
efforts

 Delayed decision
making due to lack
of automated KPIs

 Lack of reliable
planning and
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forecasting
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Universal Journal - Single Version of Truth

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Simplified Data Model

 Classic approach: 2 tables, 8 materialized views and 9 materialized aggregates

 materialized views: BSIS, BSAS, BSID, BSAD, BSIK, BSAK, FAGLBSIS, FAGLBSAS
 materialized aggregates: GLT0, GLT3, FAGLFLEXT, KNC1, LFC1, KNC3, LFC3, COSS, COSP.
 New Simple Finance approach: 2 tables with corresponding compatibility views
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S/4 HANA – Example of dramatic Simplification : Invoice Posting

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Tables that are removed (now views)

ANEA Fixed Assets: Line items for proportional values FAGLBSAS Index for G/L Accounts – New G/L (Cleared Items)
ANEK Fixed Assets: Document header FAGLBSIS Index for G/L Accounts – New G/L
ANEP Fixed Assets: Line items FAGLFLEXA New General Ledger: Line items
ANLC Fixed Assets: Cumulative values FAGLFLEXT New General Ledger: Totals

BSAD Index for Customers (Cleared Items) GLT0 General Ledger: Totals
GLT3 Summary Data Preparations for Consolidation
BSAK Index for Vendors (Cleared Items)
KNC1 Customer master (transaction figures)
BSAS Index for G/L Accounts (Cleared Items)
KNC3 Customer master (special G/L transaction figures)
BSID Index for Customers
LFC1 Vendor master (transaction figures)
BSIK Index for Vendors
LFC3 Vendor master (special G/L transaction figures)
BSIM Index, Documents for Material
MLCD Material ledger
BSIM Secondary index for documents on material MLCR Material ledger
BSIS Index for G/L Accounts MLCRF Material ledger
CKMI1 Index for accounting documents MLHD Material ledger: Document header
COEP Cost Line Items MLIT Material ledger: Line items
COSP Cost Totals for External Postings MLPP Material ledger
COSS Cost Totals for Internal Postings MLPPF Material ledger

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Database Footprint Reduction (theoretical model)

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Non Disruptiveness

Safeguarding customer
investments
From the perspective of an ABAP
program nothing changed (read
access)
We provide so called “compatibility
views”.
Via this views the select is
redirected to the new persistency in
HANA
In the example given, an access to
table COEP is redirected via the
view V_COEP to the new Universal
Journal Entry
Consequence: Customer ABAP
programs that read directly “COEP”
via select statements continue to run
as before

 Allprograms with write access to those deleted tables replaced by CDS views will create issues and
can not be used anymore without adaptation. Remove all write accesses in the views replaced by
tables. Use the code inspector (note 1976487)
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Optimization by Code Pushdown Approach

Traditionally, application logic is executed in the ABAP application server and data is copied between
the data and application server. This is an expensive process for data intensive processes. With AS
 ABAP 7.4 for HANA , it is possible to “Push Down “ calculation intensive logic on data within the
data set from the application server to the database server. SAP HANA database then performs the
calculations and sends the resulting data set.

Code Pushdown
Old

ABAP ABAP
Select valid orders Select valid orders HANA
Select orders data
Select orders data
Loop each orders
Do aggregation Do aggregation for
Loop aggregated data
all orders
Do calculation
Do calculation
DB update
DB update Endloop
Endloop

UI display UI display
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Traditional Finance vs S/4 HANA Finance

Area of Traditional Finance Simple Finance
Difference
Change in Traditional SAP had Index and Totals tables The following Index Tables have been eliminated
Architecture BSIS, BSAS, BSID, BSAD, BSIK, BSAK, New GL‐ FAGLBSIS, FAGLBSAS
The Below Totals Tables have been eliminated
GL‐ GLT0, GLT1, GLT3, AR‐ KNC1, KNC3, AP‐ LFC1, LFC3, CO‐ COSP
COSS, New GL‐ FAGLFLEXT
Speed SAP had to update the Line items and Totals tables Only BKPF & ACDOCA tables are updated. The Update now is 3
for each document times Faster and the results for analytics are exponential
The Principle of 1 Traditionally there were Multiple Sources of Truth for Universal Journal Entry for Financial and Management accounting
Financial Accounting & Management Accounting

Master Data GL accounts, Primary and Secondary Cost elements Primary and Secondry Cost Elements are maintained in the GL
had to be separately maintained account itself.
Reconciliation Tedious FICO reconciliation process. A reconciliation CO‐FI reconciation has been eliminated
document was posted each time
Parallel Valuations Leading Ledger posted in Real Time while the Non Both Leading and Non Leading Ledger posts in real time. This avoids
Leading Ledger posted periodically time consuming periodic Processing
Closing Process Traditionally The closing process was lengthy as These calculations have been pushed down to the HANA data base
complex calculations were performed at period close for an accelerated close. Batch Jobs converted to online processing.

Asset Accounting Mandatory replacement for old Asset Accounting Improved Asset Accounting processes with faster depreciation, no
with simplified posting logic and tight integration periodic posting, transparent assignment of accounting principles,
with Universal Journal. automatic reconciliation by design.
New Features Cash Mgt and Integrated Business Planning was not Cash Management and Integrated Business Planning powered by
part of Traditional Finance HANA have been built in Simple Finance
User Interface Normal GUI Screens plus NWBC portal Next Generation FIORI Apps on multiple devices
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Recommendation for Customers Using Special Ledger

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SAP Cash Management Powered by SAP HANA

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Integrated Business Planning Powered by SAP HANA

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S/4 HANA Product Name

Two new code lines – S/4 HANA Finance & S/4 HANA Enterprise Edition

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Versioning Scheme
As of May 2015, SAP Simple Finance add-on 2.0 is named SAP Simple Finance, on-premise edition 1503
Additionally,the numbering of product versions has been changed.
SAP Note 2171868 provides the latest details.
Further, the name has been changed as below
Old Product Name New Product Name Technical Product Name

SAP Simple Finance add‐on for SAP Business Currently available product version: SAP SFINANCIALS
Suite powered by SAP HANA SAP Simple Finance, on‐premise edition , cloud edition
 – now renamed to SAP S/4 Finance
SAP S/4 HANA Enterprise Edition ( This is the new product with SAP S/4 HANA Enterprise
S/4 FIN + Logistics ). Customer cannot choose only to activate Edition ( 1511)
S4 FIN in Enterprise Edition & not use Slog .

Change of Product Version Numbers

Old Product Version Number New Product Version Product Version Old SPS New SPS Number
Number Number
Simple Finance 2.0 1503 – Released SAP Simple SPS 00 Initial Shipment Stack
Finance 1503
Simple Finance 3.0 ( May not be called 1605 – (planned) SPS 01 SPS 1505
by this name ) but 1605 as per new SPS 02 SPS 1508
naming convention
SPS 03 SPS 1511
SPS 04 SPS 04 ( released Feb 16)

 For an intermediate period in time during 2015, Support Package stack numbers had been changed to reflect the month/year of
availability.
 This change has been reverted back to the former schema in order to avoid confusion with the above product version numbers .
 S/4 HANA Enterprise Edition 1511 has all features of 1503 SP03 + SLog 30
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SAP S/4 HANA – General Adoption Paths for On-Premise

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Early Adopter Experience

1. The configuration takes more or less similar time frame .

2. In few areas the configuration and master data set up have moved to NWBC (
Net weaver client portal) e.g. Bank Account Management, Cash and liquidity
planning
3. Account Based COPA preferred
4. GL or Cost center planning has moved to Integrated Business Planning
5. Observed system error in few areas like coding Block
6. Real time entry to both leading and non leading ledgers
7. Introduction of Appendix ledger with enhanced functionality
8. The asset migration has been simplified , 3 step process instead of one step
process.

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S/4 HANA Finance – Reasons for Caution

 Relatively new product and there are legitimate questions about its maturity
 HANA forces a vendor lock-in for the Database
 Costs/licensing implications still not very clear 
 Full impact of Simple Finance enablement, including business benefits, integration
with connected applications and technical migration still not convincing
 Certain IS and specific components are not yet supported – JVA , FM, Lease
 Accounting, Public Sector 
 Transfer Pricing, Multiple valuations of COGM is not yet supported
 Solution for complex localizations may be a challenge – Brazil, China , Russia.

• New implementations should consider “Why not S/4 HANA”

• Some caution should be adopted when discussing HANA with large-scale global SAP customers, until a more detailed
evaluation is carried out

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Agenda Topic

Impact in General Ledger

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Accounting Before Simple Finance : Multiple Sources of Truth

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Accounting After Simple Finance : The New Principle Of One

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General Ledger – Technical Changes with Simple Finance

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General Ledger – Technical Changes with Simple Finance

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Summary of Tables Changes in GL, AR, AP

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Link between FI and CO with the classic logic

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Limitation with the classic logic

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Link between FI and CO with the NEW logic

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FI Postings with Simple Finance

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Simple Finance - Ledgers

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Standard Ledger

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Appendix Ledger

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Appendix Ledger

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Appendix Ledger - Example

 Appendix Ledger 15

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Appendix Ledger - Example

 Appendix Ledger 15

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