Business Driven Configuration Questionnaire – Finance

Topic Topic Definition Question

G/L Accounts Each business transaction entered into SAP S/4HANA Do you have additional G/L accounts which will
Cloud is analyzed and split by the profit center or segment be added to the SAP Best Practices chart? If so,
using document splitting. With this function, the document please provide the list and categorize into
splits the line items based on the “characteristics” we Revenue, Expense, Bank, Cash, or Balance
define in system. Sheet.

To support the correct classification of each individual

documents during the splitting process, G/L accounts
need to be classified into different categories – Revenue,
Expense, Bank, Cash and Balance Sheet.

SAP S/4HANA Cloud is delivered with an SAP Best

Practice chart of account which have been categorized
accordingly.

Profit Centers Per the accounting principles IFRS and US GAAP, Please define the hierarchy required to organize
companies are required to report on their operating your profit centers to align with your
segments. In order to comply with this requirement, SAP organizational structure within the controlling
offers the possibility to create segments. area.
From an SAP point of view, segments represent divisions
of the company for which financial statements and
external reports can be created.
SEPA If you are using SEPA mandates to collect cash from SAP S/4HANA has defined statuses that an
customer accounts, SAP S/4HANA comes with settings existing mandate's status cannot be changed to.
that enables the same. During the general business Review the list and indicate if any changes are
process of cash collection, you might be required to required.
change the status of SEPA mandates created. However,
you might want to restrict users from changing SEPA
mandates to something that it should not be changed to.
Here you define the statuses to which you cannot change
a current mandate's status to.

SEPA For all SEPA based AR receipts, SEPA mandates are The SAP S/4HANA Cloud system has a list of
created. You can define the reason codes for changing reason codes provided.
mandate status. The reason code explains why the status
of a mandate has been changed. You can choose a Please review and indicate if there is a need for
reason code when you create or change a mandate. additional reason codes, or for changes in
descriptions of the existing reason codes.
Payments & You can set up all company codes against which there The SAP S/4HANA Cloud system comes with
Receipts would be payables/receivables that have to be company codes set up for payment transactions.
paid/received. You can make specifications for all
company codes involved in the payment transactions. Review settings delivered in the system and
You can also define permitted customer/vendor special indicate if any new company codes added are to
GL transactions to be received/paid. be set up or if changes to existing settings have
to be made.

Company Codes From an SAP point of view, the company code is an Think of each country in the project scope and
independent accounting unit for which a balanced set of provide by country (where applicable) the
books is produced. It represents the legal entity from fiscal number of legal entities required or are in scope.
point of view.

Account SAP S/4HANA Cloud offers the ability to block business Please review the list of 10 block reasons
Receivable partners based on block reasons. There are a number of provided with the Starter-System. If additional
predefined block reasons delivered and assigned to pre- codes are required, please provide a list.
defined events. Typical examples include: bad scores,
insolvency, high-risk country, or bad payment behavior.

Corporate closing You can define consolidation ledgers and by alternative SAP S/4HANA comes with predefined
group currencies, in addition, SAP S/4HANA Cloud consolidation ledgers. Please review them on
provides the ability to assign alternative accounting source your Starter-System and their assignment to
ledgers, and currencies. valuations, second, and third currencies.

Data Processing As part of corporate close, you select and assign the The SAP S/4HANA Starter-System comes with
defined monitor task groups, set up reclassification reclassification tasks defined and assigned to
methods and tasks, and define selections that bundle filter document types and reclassification methods.
criteria to be used in reclassification methods. In this step, Please review them and indicate if any specific
you define reclassification tasks. Each reclassification task changes are required.
is assigned to a document type and reclassification
method.
Data Processing In order to support closing and consolidation tasks, the The Starter-System comes with task groups
SAP S/4HANA has task groups for data monitor and assigned to versions and periods. Indicate if task
consolidation monitor defined. In this task, the task groups groups are required to be assigned to different
are assigned to versions and periods. versions and periods.

Commodity Codes Define the numbering schemes that you want to use for Your Starter-System is set up with a numbering
classifying materials with commodity codes, intrastat scheme. Please review and indicate if additional
service codes, and control classes. numbering schemes are required.

Commodity Codes Define the numbering schemes in which you want to enter For the delivered numbering schemes, the SAP
commodity codes, intrastat service codes, and control S/4HANA Cloud system is assigned with a
classes. For the commodity codes, you can transfer the numbering scheme content.
corresponding numbers from your SAP GTS System to
the relevant numbering scheme. The data of this activity If you have indicated to define additional
can also be changed directly in the Productive-System. numbering schemes, indicate their source here.
Commodity Codes As part of setting up the SAP S/4HANA system for The Starter-System comes set up with
International Trade, you define the Numbering Scheme Numbering Scheme and Numbering Scheme
and Numbering Scheme Content. This activity ensures Content which is activated for specific dates.
you activate the Numbering Scheme Content and you Review the set up and indicate if any changes
specify the time for which a numbering scheme is active. are required.
The data of this activity can also be changed directly in
the productive system.
Commodity Codes The Numbering Scheme settings on the SAP S/4HANA The SAP S/4HANA system comes with a
system are set up to perform International Trade. In this Numbering Scheme for commodities assigned to
activity, the Numbering Scheme for commodities is countries. Review the set up and confirm if the
assigned to countries. Numbering Scheme is assigned to your country.
Indicate if changes or additions are required.

Licences Once legal regulations are defined, you can define which The SAP S/4HANA Cloud Starter-System comes
license types you want to use within the legal regulations. with license types defined for all legal
regulations.
For all legal regulations, define license types. Available
license types are: general license, collective license, Please review the settings for completeness. If
individual license, and license exception. additional legal regulations are required in for
'Define Legal Regulations', then indicate in your
response the license types.

Trade Compliance As part of setting up the SAP S/4HANA system for The Starter-System comes with a list of Sales
International Trade, you define the Sales Order Document Types. Indicate if you like any of the
Documents and Outbound Delivery Documents for which listed Sales Document Types is to be called for
you would like to perform Trade Compliance Checks. In Trade Compliance Check.
this step, you activate the sales order types for which you
want to perform Trade Compliance checks.
Trade Compliance As part of setting up the SAP S/4HANA system for The Starter-System comes with a list of
International Trade, you define the Sales Order Outbound Delivery Documents. Indicate if you
Documents and Outbound Delivery Documents for which like any of the listed Delivery Document Types is
you would like to perform Trade Compliance Checks. In to be called for Trade Compliance Check.
this step, you activate the delivery types for which you
want to perform Trade Compliance Checks.
International Trade As part of setting up the SAP S/4HANA system to manage The SAP S/4HANA system comes with company
international trade, you can define compliance checks to codes listed against which trade compliance
be performed. In this activity, you can specify the checks have to be carried out. If there is a need
company codes for which you want to perform the Trade to activate trade compliance checks against any
Compliance Checks. company code, kindly provide a list of company
codes that are required to have the setting.

General Settings As you set up compliance checks to be performed on your The SAP S/4HANA system provides you to pick
international trade, you activate the company codes, sales the subsequent functions sales processes to be
order types, and document types against which blocked. Indicate if you would like to activate
compliance checks have to be carried out. In this section, blocking of the subsequent SD processes.
you can specify the subsequent functions to be
suppressed by a Trade Compliance block. Unless you
make an entry here, all subsequent functions are allowed
despite the block.
Trade Compliance Certain international trades you perform might require SAP S/4HANA comes with legal regulations
compliance checks. Here, you define legal regulations for defined. Each legal regulation is classified as a
the individual Trade Compliance checks. The legal Legal Control, Embargo, or Watch List
regulations are assigned to one “Trade Regulation Area“ Screening.
at a time.
Review the settings in your Starter-System and
Once Trade Compliance checks are defined, you can indicate if there is a need for additional legal
activate sales order types/outbound delivery documents to regulations.
perform these compliance checks and take necessary
action such as blocking orders/deliveries.

Document In SAP S/4HANA, you have the ability to transfer The SAP S/4HANA Starter-System has settings
Transfer documents to SAP GTS systems. In this activity, you defined to transfer documents to SAP GTS
make the settings for transferring documents to the SAP system. Review the settings and indicate if any
GTS system. existing document types have to be added or
removed.

Authorization SAP S/4HANA enables you to define authorization The Starter-System is delivered with the
Management groups. These authorization groups enable you to protect authorization groups defined. Please review and
the access of individual objects. To perform a particular indicate if there is a need to have additional
activity, a user has to have the authorization for the authorization groups for specific access control in
activity and authorization group combination. You can use your organization.
authorization groups to provide/restrict access to specific
users.
Organization The SAP S/4HANA system allows you to define company Review the standard settings provided in your
codes that you want to use in Contract Accounts Starter-System and indicate if you require any
Receivable and Payable. You will also have to assign the change to be made. If you have added any
attributes required for controlling postings to each additional company codes, indicate if you want to
company code that you want to use in Contract Accounts use them in Contract Accounts Receivable and
Receivable and Payable. Payable.

Organization You can define the company codes to be used for posting The SAP S/4HANA Cloud system comes with
to contract account. These company codes are predefined company code groups.
summarized in company code groups.
If there are additional company codes defined,
please review the standard settings and indicate
if additional groups are required

Organization In order to use the SAP S/4HANA system for Contract The Starter-System is delivered with company
Accounts Receivables and Payables, set up Company codes set up for Contract Accounting. Review
Codes for Contract Accounts Receivables and Payables. the Company Codes assigned to Company Code
You then define Company Code Groups. In this step, you Groups and indicate if any changes are required.
assign the Company Codes defined for Contract
Accounting to Company Code Groups.
Contract Accounts In SAP S/4HANA for Contract Accounts Receivables and Review the settings in the Starter-System and
Payables, you define contract account categories as indicate if there is a requirement to define
grouping characteristics for accounts that display the contract account categories as grouping
same control features. characteristics for accounts.
Posting and The SAP S/4HANA system provides you the ability to The Starter-System comes with document types
Documents define document types that you want to use for the defined and number ranges assigned. Review
business transactions in Contract Accounts Receivable the settings in your Starter-System and indicate if
and Payable. These document types help differentiate any changes are required.
between business transactions; number ranges are also
assigned to them, which determines the document
number during document postings.
Posting and While using Contract Accounting in SAP S/4HANA, you The SAP S/4HANA Starter-System comes with
Documents define the external main and sub transactions for your main and sub-transactions defined and assigned
company. You then assign the parameters for document to document control parameters. Review the
control, such as company code, and statistics key to these settings and indicate if any changes are required.
transactions. Main and sub-transactions control the
determination of item attributes and processing of items.

Posting and In SAP S/4HANA, you can define account assignments for The Starter-System comes with account
Documents cost accounting (such as cost center) in connection with assignments defined for the two company codes
the company code and the business area. You define the delivered with the system. Indicate if there is a
short key, which is then assigned to a cost object for a need to have additional account assignments for
combination of Company Code, Business Area, Segment, the company codes. Indicate if you would like to
Profit Center. have account assignments defined for any new
company codes added.

Payments You can make specifications for all company codes The SAP S/4HANA Starter-System comes
involved in the payment transactions. You can assign a delivered with a list of paying company codes.
paying company code to each company code. This means
that you can have one company code process payment Please review the system and indicate if any
transactions centrally for several company codes. Specify additional paying company codes are required. If
the minimum amount for creating an incoming or outgoing there are new company codes defined, it will be
payment. required to analyze and arrive at a list of paying
company codes.

Returns When you create or change a returns lot, the system The SAP S/4HANA Cloud system comes
checks the clearing accounts entered. Only accounts that delivered with clearing accounts against each
you have defined as clearing accounts are permitted. You company code, house bank, and account ID
can activate the clearing account for returns lots and combination.
payments lots.
Please review the Starter-System and indicate if
there will be a need for additional clearing
accounts, particularly if there are any additional
house banks set up.

Define Write-Off There could be multiple reasons for a write-off. You have Review the list of available write-off reasons in
Reasons the option to define reasons for a write-off. Additionally, your Starter-System.
you can determine for each write-off reason, the reason
code may only be used for a write-off of an individual item Indicate if there needs to be a change in
or for a mass write off or for both. You can also activate description to the write-off reasons or if any
the reason code to be valid for partial write-off's. additional reasons are required.
Invoice Receipt Here, you define the name which your invoicing party SAP S/4HANA allows you to enter company
(supplier) uses in invoices for your company to the code names that your invoicing party uses.
company code defined for this. Review the standard available content and
indicate if there is a requirement to enter
company code names against individual
invoicing parties.

Invoice Receipt Your suppliers invoices may include taxes, you can assign Review the Starter-System delivered list of tax
the tax rates mentioned on the invoices to tax codes. Here codes. Indicate if there is a requirement to assign
you assign the tax rates transmitted by your invoicing specific tax codes and rates to invoicing parties.
party (supplier) to the corresponding tax codes defined in
the system.
Integration You can also define the next steps to be taken if there is a SAP S/4HANA Cloud comes with settings
difference in the values (quantity and price) between the defined to handle scenarios in which EDI invoice
EDI invoices and values proposed by the system. prices are different from that of system proposed.

The options include: Review the settings and indicate if there is a

EDI invoice is posted. If there exists a price/quantity need to change the existing settings. Any change
difference, the invoice is blocked for payment. in settings will need to be evaluated.
1. The invoice is parked with EDI values and system
proposed values. Take manual action later.
2. Invoice is posted with values determined by the system.
EDI invoice is reduced by amount of variance.
3. Compare the positive small difference with tolerance
defined (with values set up in Supplier-Specific
Tolerances). If the difference is lower than the tolerance
defined, it posts and blocks the invoice for payment. If the
difference is higher, the system parks the invoice for
manual processing.
4. The invoice document is checked against the
tolerances in accordance with online processing. You can
maintain the tolerance keys on a company code specific
basis and use them to determine which variances are
checked.

Invoice Receipt There might be invoices that you receive electronically via Review the list of document types set up in your
EDI. In his process, you define the document types for all Starter-System. Review the assignment of
incoming invoices and credit memos. The document types document types assigned against invoicing
for invoices and credit memos can be further different for partners in this section. Indicate if there is a
different suppliers, if required. requirement to have different document types for
different invoicing types.
Payment Terms The payment terms represent the agreements you have Please provide the description required for
with your business partners defining the terms of payment terms.
payment. When a purchasing or sales document is
entered for a customer or vendor, the payment terms are
copied from master data and are used to calculate the
prices for the items, the due date of an invoice, or the total
discount allowed. Examples of payment terms include 30
days net from invoice date, etc.

Each payment term should have a description.

Note: outgoing customer invoices created from the system

will use the descriptions provided here.

Cost Allocation Costing sheets are used to define the parameters for Please provide a list of overhead cost centers/GL
overhead calculation and cost allocation. Cost centers are (cost element) combinations/percentage rates -
populated within the sheet to be credited in conjunction to be credited at month end.
with the G/L account (cost element). It also requires the
customer provide a list of overhead costs which are
classified as fixed costs. SAP S/4HANA Cloud supports
cost allocation by fixed percentage.

Dispute Codes SAP S/4HANA Cloud offers the functionality of dispute S/4HANA Cloud provides pre-defined dispute
management. For each dispute case, you can assign a case reasons (please visit Configure your
specific reason and use this information further in the Solution on the Starter-System). Examples of
open disputes report. In this report, is possible to filter dispute case reasons include: damaged goods,
dispute cases by company code, customer, and dispute price difference, wrong product, quality issue,
reason. etc.

Please review these reasons and where

required, provide a list of changes required to
standard ones and/or add further case reasons.

Worklist for The collection strategy with its rules is used by the system SAP S/4HANA Cloud comes delivered
Collections to prioritize business partners when creating the collection predefined with collection rules. Please review
worklists. You can define the currency in which the the collection rules on the Starter-System and
amounts are displayed in the worklist. You can also determine if these are sufficient, require change
review how the respective rule contributes to the or if additional ones are required.
prioritization of the business partner in the worklist.
Worklist for The collection strategy with its rules is used by the system SAP S/4HANA Cloud comes delivered
Collections to prioritize business partners when creating the collection predefined collection rules. The country currency
worklists. You can define the currency in which the is the default currency for determining the rules,
amounts are displayed in the worklist. You can also however, if an alternative currency is required,
review how the respective rule contributes to the please specify in your answer. Please note, that
prioritization of the business partner in the worklist. if you do specify the need for an alternative
currency, this will become the default currency
and is applied to all rules specified here.

General Settings Customers and vendors are created in SAP S/4HANA Please review the settings on the Starter-System
Cloud as business partners. These are grouped by and provide the grouping criteria and
categories on the system, however you are able to descriptions required for your organization.
change the description of, delete or add additional groups
to the ones provided (as shown on the Starter-System).

Default Tax Code In SAP S/4HANA Cloud, it is possible to setup and assign Review the default tax code found on the starter
each company code to a default tax code. The code would system. Please indicate if it is to be adjusted and
default as a suggested code when entering a supplier what the change should be for your business.
invoice.

Note: a tax code can be applied to a purchase order,

which will automatically populate the invoice line when the
invoice is posted. The default code suggested by the
system can be changed by the user with the correct one, if
needed.
Plants SAP S/4HANA Cloud ships a default organizational Please review default organizational structures
structure which enables you to explore your solution found on the Starter-System and map them to
covering company codes, plants, credit control areas, your organization. In addition, provide a list of
shipping points, etc. your mapped structures and naming
requirements for each structure.

Cost Center Cost center category is an indicator in the cost center Review the existing cost center categories (as
Categories master data. It enables the assignment of same found on the Starter-System) and the settings
characteristics to similar cost centers. The cost center proposed. If needed, change the settings or add
category controls the following functionalities: new cost center categories. Examples of existing
- Record consumption quantities for postings cost center categories include: Marketing,
- Enter a default functional area Production, Logistics, Management, Sales,
- Choose if primary costs or secondary costs are Administration, etc. Once reviewed, please
permitted and if commitments are allowed provide a list changes which are required.

Service Costs Service cost levels determine the applicable cost rate for SAP S/4HANA Cloud comes delivered with a
services provided by employees. They are attributes in the sample set of service levels. Please review them
employee fact sheet. When an employee confirms on the Starter-System and if required, provide a
working time to deliver a service, the system posts the list of your service levels and descriptions.
service costs with a cost rate based on the employee’s
service cost level. Services provided by that employee
are, therefore, always charged at the same rate
regardless of the service.
Cost Centers The costs occurred in the organization should be Please provide details of cost center structures
transparent. Therefore, SAP provides the functionality to for each legal entity within the project scope.
analyze the overhead costs according to where they were
incurred.

SAP S/4HANA Cloud provides a default set of cost

centers per company code that can be used, changed, or
deleted by the customer. New cost centers can be added
as well, to better reflect the departments and
organizational structure of the company. Please detail as
is organizational structure/departments.
Cost Centers To speed up the process of booking accounting Determine and provide a list of cost accounts
documents and reducing errors, SAP offers the that require a default cost center. These would
functionality to assign a default cost center for the cost typically be for exchange rate gains/losses,
accounts. This cost center will be determined revaluating material stocks, and inventory
automatically during the booking process. differences.

Automatic Posting SAP S/4HANA Cloud will post automatically to G/L SAP S/4HANA Cloud comes delivered with a
to GL Accounts accounts for sales transactions, inventory movements, Best Practice Chart of Accounts YCOA (as found
procurement activities, revenue, reconciliation, cash, and on the starter system).
payment cards with the assignment of GL accounts Please review the account assignment provided
(account determination). for each of the area/parameter/subgroup
categories.
It also supports the automatic posting of exchange rate
differences and retained earnings and the reclassification
of A/P and A/R accounts according to their maturity and
assign G/L accounts to bank accounts.

Functional Areas Cost of Sales Accounting is supported in SAP S/4HANA Determine if Cost of Sales Accounting will be
Cloud by using the functional areas - characteristic that used by your company, review, and update the
sorts operating expenses according to functions. SAP existing functional areas (as found on the starter
Best Practices provides functional areas for the following system) based on your company organization.
areas: Production, Marketing, Administration, Sales, etc.

Reporting In accordance with special accounting principles, such as If you are required to analyze and report profit by
IAS/ IFRS, segment reporting is required for product segments in your organization, please provide
related enterprise areas. The purpose of segment the a list of sub areas (segments) within your
reporting is to make the profit and risk situation of organization which are required to be maintained
individual areas (segments) in your enterprise transparent. for this purpose.

Segments Per the accounting principles IFRS and US GAAP, Does your organization require the setup of
companies are required to report on their operating segment divisional reporting?
segments. In order to comply with this requirement, SAP
offers the possibility to create segments.
From an SAP point of view, profit centers represent
divisions of the company for which financial statements
and external reports can be created.
Segments Per the accounting principles IFRS and US GAAP, Please provide details of your divisional
companies are required to report on their operating structures which would require financial and
segments. In order to comply with this requirement, SAP external reports within a company.
offers the possibility to create segments.
From an SAP point of view, profit centers represent
divisions of the company for which financial statements
and external reports can be created.
Intercompany During an intercompany sales process, the supplying Will you have intercompany transactions
company generates an intercompany invoice to the occurring between companies within the scope of
ordering company. You can generate the SAP Electronic SAP S/4HANA Cloud?
Data Interchange (EDI) configuration that the system uses
to post this invoice to the ordering company code.

The intercompany invoice is a customer invoice (sent from

the supplying company). And a supplier invoice (received
by the ordering company). The system uses IDocs to
automatically generate the corresponding payables in the
ordering company's accounts.

Chart of Accounts SAP provides each customer with an SAP Best Practice How detailed is the chart of accounts which is
chart of accounts which covers all the reporting currently used in your organization and level of
requirements for the business adopting SAP S/4HANA reporting required from the chart?
Cloud.
VAT/GST/Sales SAP S/4HANA Cloud comes delivered with a set of tax Please review the tax codes and rates that come
Tax (GST/VAT/Sales tax) codes for each country. These delivered for each country in scope on the
should not be deleted, however customers have an option Starter-System. If additional codes are required,
to define additional tax codes if necessary. please provide a list of new tax description/rate
assignment and define as input or output tax.

Period End Close How many posting variants are required for your
A posting period variant is created and assigned to each legal entities? Please keep in mind that one
company code to support opening and closing periods. variant can be assigned to more than one entity if
One variant can be assigned to multiple legal entities they close at the same time each month.
(company codes).

Payment Release A payment release can be evaluated and reviewed by a What default currency is required for each legal
Strategy default currency (i.e. all payments are evaluated in USD entity to support the evaluation of batch
despite containing a mix of different currencies to make payments?
payment). It also provides the ability to evaluate payments
from different company codes and local currencies.

Within the same step, also define and set the number of
days for payment submission.

Payment Release A payment release can be evaluated and reviewed by a Please provide the number of days for payment
Strategy default currency (i.e. all payments evaluated in USD resubmission for each legal entity.
despite containing a mix of currencies). It also provides
the ability to evaluate payments from different company
codes and local currencies.

Within the same step, also define and set the number of
days for payment submission.
Bank Statement Many companies receive their bank statement data from Please provide details of banks within scope
Processing the bank electronically. With SAP S/4HANA Cloud, you which will import bank statements into SAP
can import the bank statement files into the SAP system S/4HANA Cloud. For the purpose of the
using the electronic bank statement. questionnaire, only the bank name and file
format sent from the bank.

Basic Settings for Cash management is used to monitor cashflows and Please define how payment signatories are
Minimum Cash ensure that you have sufficient liquidity to cover your approved and method of approval using the topic
Management financial obligations. It is integrated with other definition as the guide.
components of SAP S/4HANA Cloud. Where the full
scope of cash management is activated, the customer is
required to define how they wish to view new requests for
payment signatories. Changes can be viewed by each
individual request, company code, account type, or a
combination of account type for each company code.
Approvals can be activated immediately (directly), dual
controls, or via a workflow.
Accounting SAP S/4HANA Cloud supports the reversal of previously SAP S/4HANA Cloud comes delivered with four
Document posted documents but requires the use of reasons codes standard reason codes. Please review them on
Reversal Reason to not only define why the document was posted, but also the Starter-System and determine if these are
Codes control what is permitted during posting. These include sufficient or if additional ones are required. If
determining if negative postings are allowed and whether additional codes are required, please provide the
the users can define alternative posting dates during the reason description and settings required – for
reversal process. each (i.e. negative postings and alternative
posting dates activation).

Parallel Ledgers SAP S/4HANA Cloud supports the use of parallel ledgers If your business has the requirement for
through the use of leading and non-leading ledgers. The maintaining a non-leading ledger, please provide
non-leading ledger operates in parallel ledger to the the list of legal entities which have the
leading ledger and supports local reporting. Typically, the requirement indicating the country. In addition,
leading leader supports IFRS/GAAP, whilst for individual please provide an offset or technical account
company codes, there may be a need to support local within the local chart which could be used for this
reporting requirements using a country specific ledger. purpose.

Tolerances - GL SAP S/4HANA Cloud supports GL accounts that are There are two pre-defined tolerance groups for
Differences managed as "open items." These are typically balance GL accounts on the Starter-System for review.
sheet accounts to which there are corresponding debits
and credits entries. Open item accounts are matched and Please review the existing settings and define
cleared automatically by the system, however, it is the rules required, the maximum amount, or as a
possible that small differences may exist between the percentage that can be accepted as a difference
contra entries. The difference will be posted to a during the clearing process. The difference will
predefined P&L account. be posted to a predefined P&L account.

SAP S/4HANA Cloud offers the possibility to setup

tolerance groups for GL accounts. The groups define the
tolerance thresholds for GL accounts assigned to the
group. The groups are defined at company code level.
Payment Payment differences i.e. under/over payments are Please review the list of reason codes and
Difference managed through the use of reason codes. Each reason descriptions provided on the Starter-System.
code is clearly described and individually controls whether
the difference is made to individual to either a separate
under/over payment G/L account or to the origin of the
transaction.

Payment differences may arise from a number of

circumstances – cash discounts, foreign exchange rate
differences, quantity differences, etc. SAP S/4HANA
provides an extensive list of reason codes to support the
customer.
Payment Reason The incoming payment process from customers is Review the reason codes provided on the
Codes supported in SAP S/4HANA Cloud automatically via the Starter-System, if additional ones are required,
bank statement upload. In this process, it is possible that please provide a list of specific business
the actual amount paid by the customer does not match scenarios which have not be covered. Examples
the value of the invoice. This can be triggered by fees of reason codes provided include: cash discount,
charged by the bank, cash discount taken when net deducted bonus, invoice error, price query, bank
payment was due, and different currency exchange rates charges, etc.
used or the customer made a calculation error.

To differentiate among these options, it is possible to

create reason codes for each specific case. Using the
reason code, it is possible to charge off the difference via
a separate account or treated it as a dispute item with the
customer.

Outgoing Define groups of signatories who are authorized to SAP S/4HANA Cloud comes delivered with a
Payments - approve payments. two-step approval process as a best practice.
Approvers
Please indicate the minimum and maximum
amounts allowed for each approval group.

Payment Terms The payment terms represent the agreements you have The SAP S/4HANA Cloud system comes with a
with your business partners defining the terms of list of standard values for the payment terms.
payment. When a purchasing or sales document is Please review the Starter-System and if required,
entered for a customer or vendor, the payment terms are add/define your own rules with which the system
copied from master data and are used to calculate the can determine the required payment terms of
prices for the items, the due date of an invoice, or the total payments automatically.
discount allowed. Examples of payment terms include 30 You can use different payment terms of payment
days net from invoice date, etc. keys for suppliers and customers and limit the
permitted account type correspondingly within
the terms of payment.
Please define payment terms required for
customers and suppliers.
Bank Statement When the bank statements are loaded into SAP Please provide an average cost for manually
Processing S/4HANA, incoming payments can be assigned to the posting a bank line item to the general ledger.
open items in accounts receivables based on predefined
rules. However, not all incoming payments will be
assigned automatically and would require manual
processing.
This has a cost in terms of time used by the accounts
receivable accountants. The setting of an average price
for each unassigned open bank statement item lets you
view the cost of the unassigned items over a period.

Define Bank In the automatic payment program, the determination of Please provide a breakdown of banks within the
Account by house bank accounts are dependent on the company, scope of the project (i.e. Bank A has three
payment type payment method, payment currency, and house bank. account(s) open- define the payment
method/currency for each of the accounts in
scope). A breakdown for each of your legal
entities in scope is required.

Dunning To prevent relatively small overdue amounts from For each dunning level, define the minimum
triggering high dunning levels, the customer can specify amount, the minimum percentage, and the
the minimum amount and minimum percentage rates for minimum amount for interest.
each dunning level. The next dunning level is then
triggered only if the amount to be dunned is equal to or
exceeds the minimum amount and the minimum
percentage rate (with reference to all open items).
Dunning A dunning charge may be required to be made for a Is there a requirement to define dunning charges
customer due to long overdue outstanding invoice for your organization? Please define how these
payments. should be setup for each dunning level.

Dunning Late or overdue customer payments can accrue interest. If required, define the interest rate to apply for
SAP S/4HANA Cloud supports this process using the each dunning indicator. This should apply to
dunning process, it can setup by dunning level and credit/debit balance.
interest calculation per levels. Interest is generally
calculated for higher dunning levels to render the dunning
notice more insistent.
Dunning Late or overdue customer payments can accrue interest. Please review the dunning procedure provided
SAP S/4HANA Cloud supports this process using the on the Starter-System and provide the number of
dunning process. SAP S/4HANA Cloud comes delivered dunning levels required.
with one dunning procedure with four levels to defined
charges or interest chargeable.
Ranking Order- When outgoing payments are performed using the Please provide the ranking order of house banks
Bank Accounts automatic payment program, the system determines the to be used for payment based on the
appropriate bank account to make the payment from. It combination.
uses a combination of the paying company code, payment
method, and payment currency. Therefore, if a different For example, Bank Account 100 ranked first for
bank accounts are used for checks vs. wire transfers, the all domestic checks and wire payments, Bank
payment program will determine the appropriate bank to Account 2 ranked first for foreign currency
use for this purpose. It is also able to determine which payments. If only one account is used for all
bank accounts can process foreign currency payments vs. payments - by default, it ranks first).
domestic payments.
Dunning During the dunning process, SAP S/4HANA Cloud offers Review the dunning block reasons provided on
the possibility to block dunning for a specific document by the Starter-System and define additional ones if
entering a dunning block at the item level or block for needed. Dunning block reasons can be displayed
dunning a specific customer (business partner). This in reports.
functionality is realized through the dunning block reason.
There are already predefined dunning block reasons as
part of SAP S/4HANA SAP Best Practices (i.e. Disputed,
Promised to Pay, Legal Department, etc.).

Outgoing A payment approval pattern defines how a payment Please define approval patterns for each
Payments - should be processed by signatory groups in a sequential approval group defined for 'Payment Signatory
Approval Steps order. For each pattern, you specify the number of Groups' including the minimum and maximum
approval steps required and which group is responsible values allowed for each group.
for which step.

Tolerances - As part of the SAP S/4HANA standard functionality, you Review the tolerance groups provided on the
Customer/Supplier can define tolerances to deal with situations in which the Starter-System for customers and vendors and
Payment amount stated in the invoice differs from the amount make the appropriate changes required by
Differences received from the customer or paid to the supplier. A business or legal requirements.
tolerance group is defined and can be assigned in the
customer/supplier master data. For each tolerance group,
you can specify the following:
1. Up to which difference in payment amount the posting
to expense or revenue accounts is allowed by the system
while clearing open items (amount and percentage)
2. Which terms of payment apply for residual (outstanding
balance) items if they are posted during clearing.

Interest You define the reference interest name, against which you The Starter-System comes with a list of
Calculation will be able to assign interest rate values in a different reference rates defined.
step. You define list of all your reference interest rates
such as LIBOR, etc. Define your reference interest rates Please review the system for completeness or
by entering a key and a meaningful name. indicate if additional reference interest rates have
to be defined.

Outgoing SAP S/4HANA Cloud has the option to optimize outgoing Please define the additional setting requirements
Payments - payments, calculates, and triggers the maximum cash for each company code which are in scope.
Payment discount for each payment.
Discounts Tolerance days for payables are the number of
The cash discount for outgoing payments is normally days by which the cash discount period may be
taken from the payment terms assigned in the invoice or exceeded.
the supplier master data.

Outgoing SAP S/4HANA Cloud has the option to optimize outgoing Please define the additional setting requirements
Payments - payments, calculates, and triggers the maximum cash for each company code which are in scope.
Payment discount for each payment.
Discounts Minimum percentage rates for payments with
The cash discount for outgoing payments is normally cash discounts (lower limit for payments with
taken from the payment terms assigned in the invoice or cash discount).
the supplier master data.
Outgoing You can set up all company codes against which there The SAP S/4HANA Cloud system comes with
Payments - would be payables/receivables that have to be company codes set up for payment transactions.
Payment paid/received. You can make specifications for all
Discounts company codes involved in the payment transactions. Review the Cash discount terms and tolerance
You can also define permitted customer/vendor special levels defined for each company code on your
GL transactions to be received/paid. starter system for completeness and identify
what changes are required to meet your
business needs.

Payments The process of vendor/customer payments in SAP Please provide a list of legal entities (company
S/4HANA Cloud is performed automatically once the codes) which will be making payments listing the
system is setup. One requirement is to set up the legal maximum and minimum amounts permitted.
entities that make payments and preset the permitted Also, indicate whether single payments are
maximum and minimum payments values in the local required by the company code.
currency.

If there is a requirement to make separate payments to a

vendor, for example, one vendor has four invoices to be
paid, you have the ability to create four separate
payments/remittance advices. If this option is required, it
will be activated for all payments made by the legal entity.
Payments The process of vendor/customer payments in SAP Please Indicate against the list of legal entities
S/4HANA Cloud is performed automatically once the (company codes) if exchange rate difference
system is setup for you. If you have foreign currency should be calculated or deactivated.
payments occurring, the payment program posts the
exchange rate differences arising from foreign currency
items to an exchange rate gain and loss account (i.e. the
difference between the rate at the time of posting and that
when the item is paid). In order to determine the local
currency amount at the time of payment, the payment
program uses the exchange rates defined in the system.
To avoid this occurring, you can deactivate the setting as
part of the setting up of paying companies.
Vendor / Customer The process of vendor/customer payments in SAP How many banks and bank accounts are
Payments S4HANA Cloud is performed automatically once the required to support the project scope?
system is set up for you. It utilizes different payment
methods (i.e. wire transfers, checks, direct debit, etc.) to
determine how payables are made.

To make or enable automatic payments of customer credit

balances or vendor payments, bank accounts from which
the payments are made from are required.

Payment Blocks You can set block payments using payment block reasons Please check if there are block reasons and
within the automatic payment program, in addition to determine which block reasons should prevent
manual payments. If the indicator is set, the payment automatic or manual payments. You can check
block reason prevents items with the clearing transactions the settings for the payment block reasons and
"incoming payment" and "outgoing payment" from being make any corrections that may be necessary.
processed. Blocks can be manually changed or resolved
by resolution.
Cash Operations - SAP S/4HANA Cloud enables customers to keep track of If you have defined additional General Ledger
Extra cashflows in, used within the business and outflows. accounts to the SAP S/4HANA Cloud accounts
Liquidity items are codes maintained to track cashflows within receivables/payables, cash in transit
within the business. Each item is marked as an inflow or range, please indicate whether they should be
liquidity items define are maintained as cash in or out considered for cash management.
flows (i.e. Cash receipt – In, Tax Refund – In, Bank
Transfers – Out).

You define and maintain flow types if a new G/L account

is created and it requires a flow type to classify accounting
document line items into different flow categories. Based
on the setting, those items representing receivables,
payable, or cash in transit can be properly integrated into
financial operations cash forecasts.

Bank Clearing The incoming payment process makes use of Check the GL account used for outgoing
Accounts intermediate accounts (clearing accounts) for each transfers provided in the SAP S/4HANA Cloud.
payment received (as recorded on the bank statement). There is only one set-up GL Account for this
process, but you can maintain additional ones if
When the payment is cleared by the bank, as reflected on needed. Please indicate if additional GL
the incoming bank statement, all items are posted to the accounts are needed.
intermediate account which will clear when matched to
open customer invoices. Balances left on the intermediate
account reflect payments which have not been matched to
customer accounts/line items.

Bank Clearing During the outgoing payment process, SAP makes use of Check the GL account used for incoming
Accounts intermediate accounts (clearing accounts) for each transfers provided in the SAP S/4HANA Cloud.
payment based on the payment method used. There is only one set-up GL Account for this
process, but you can maintain additional ones if
When the payment is cleared by the bank, as reflected on needed. Please indicate if additional GL
the incoming bank statement, outstanding items on the accounts are needed.
intermediate account will be cleared when matched. The
balance would reflect payments done in SAP but not
confirmed by the bank.

Bank Clearing During the outgoing payment process, SAP makes use of Check the GL account used for outgoing
Accounts intermediate accounts (clearing accounts) for each transfers provided in the SAP S/4HANA Cloud.
payment based on the payment method used. There is only one set-up GL Account for this
process, but you can maintain additional ones if
When the payment is cleared by the bank, as reflected on needed. Please indicate if additional GL
the incoming bank statement, outstanding items on the accounts are needed.
intermediate account will be cleared when matched. The
balance would reflect payments done in SAP but not
confirmed by the bank.

Cashflow SAP S/4HANA Cloud enables customers to keep track of SAP S/4HANA Cloud comes with a list of liquidity
cashflows in, used within the business and outflows. items which should be reviewed on the Starter-
Liquidity items are codes maintained to track cashflows System for completeness. If there any missing
within the business. Each item is marked as an inflow or items or items which require renaming, please
liquidity items define are maintained as cash in or out provide a list.
flows (i.e. Cash receipt – In, Tax Refund – In, Bank
Transfers – Out).
Intrastat Intrastat is for collecting information and producing Provide the default mode of transport for receipts
statistics on the trade in goods between the countries of (i.e. road, rail, or sea) for each combination of
the European Union. You can modify the default values 'Country of Destination' and 'Country of
for modes of transport at the border, ports, and airports. Departure.'
You can set default values for transportation data to be
able to use these values when creating Intrastat
declarations for receipts. Mode of Transport at the Border
(Intrastat) Identifies the mode of transport (i.e. road, rail,
or sea) by which the goods cross a border. This
information is required for the Intrastat declaration.
Intrastat Intrastat is for collecting information and producing Provide the default mode of transport for
statistics on the trade in goods between countries of the dispatches (for example: road, rail, or sea) for
European Union. You can modify the default values for each combination of 'Country of Departure' and
modes of transport at the border, ports, and airports. You 'Country of Destination.'
can set default values for transportation data to be able to
use these values when creating Intrastat declarations for
dispatches.
Advanced SAP S/4HANA Cloud comes with pre-delivered standard This optional question is only relevant if you want
Configuration for correspondence types which, in addition, customers can to define custom correspondence types. Review
Correspondence create custom correspondence types by including the standard correspondence types on the
additional parameters. Define custom variants for Starter-System. List additional variants that you
correspondence types by specifying additional parameters want to create.
that are relevant for them. Correspondence type variants
can be used to create custom correspondence in the SAP
Fiori app.

To enable correspondence type variants in the SAP Fiori

app, you need to specify UI labels for them using
configuration step 2, 'Assign Labels and Company Codes
to Correspondence Variants.' In addition, you can use this
step to assign correspondence type variants to specific
company codes.

To define which parameters should appear as mandatory,

which should be 'read-only,' and should be hidden, use
configuration step 3, 'Configure Parameters for Custom
Variants.'
Advanced SAP S/4HANA Cloud comes with pre-delivered standard This optional question is only relevant if you want
Configuration for correspondence types which, in addition, customers can to define custom correspondence types. Review
Correspondence create custom correspondence types by including standard correspondence types on the Starter-
additional parameters. Define custom variants for System. List additional labels and Company
correspondence types by specifying additional parameters Codes that you want to assignee to variants.
that are relevant for them. Correspondence type variants
can be used to create custom correspondence in the SAP
Fiori app.

To enable correspondence type variants in the SAP Fiori

app, you need to specify UI labels for them using
configuration step 2, 'Assign Labels and Company Codes
to Correspondence Variants.' In addition, you can use this
step to assign correspondence type variants to specific
company codes.

To define which parameters should appear as mandatory,

which should be 'read-only,' and should be hidden, use
configuration step 3, 'Configure Parameters for Custom
Variants.'

Advanced SAP S/4HANA Cloud enables customers to create custom This optional question is only relevant if you want
Configuration for correspondence types by including additional parameters. to define custom correspondence types. Review
Correspondence Define custom variants for correspondence types by standard correspondence types on the Starter-
specifying additional parameters that are relevant for System. List parameters that you want to assign
them. Correspondence type variants can be used to to additional variants.
create custom correspondence in the SAP Fiori app.

To enable correspondence type variants in the SAP Fiori

app, you need to specify UI labels for them using
configuration step 2, 'Assign Labels and Company Codes
to Correspondence Variants.' In addition, you can use this
step to assign correspondence type variants to specific
company codes.

To define which parameters should appear as mandatory,

which should be read-only, and should be hidden, use
configuration step 3, 'Configure Parameters for Custom
Variants.'
General Settings SAP Credit Management helps you to make efficient Please review standard settings for Credit
credit decisions. Your system offers functions to Management on the Starter-System. If you
determine the risk of lack of payment early on and helps decided to create more than one credit segment,
the credit controller to make credit decisions quickly. To please provide assignment of Sales Area to
do this, you can make corresponding presettings or adjust Credit Segment.
preconfiguration.
General Settings SAP Credit Management comes with predelivered best Answer only if you want to change automatic
practices 'Automatic Credit Control Checks.' You can credit control. First review standard settings on
decide to define your own credit checks. the Starter-System. Please provide answers to
the following:
The automatic credit check can target certain aspects
during a check and run at different times during order 1. Provide a combination of credit segment, risk
processing. You can define your own credit checks to class and credit group as well as a description for
correspond to your requirements in the area of Credit the credit check you want to define.
Management.
2. Provide details as found in corresponding
You can determine an automatic credit check for any SSCUI screen of credit control. Specify the
combination of the following: scope of the check and the system response.
- Credit Segment
- Risk Class 3. If necessary, provide the general data for the
- Credit Group credit check.

Example: you can define a credit check for a certain credit

segment and for all sales orders in which the customer
has risk class 2 (RK2).
It is possible to define a system response for each credit
check (for example, warning message). In the case of a
warning message, a block can be set in the credit status
of a document.

If you define your own credit checks, proceed as follows:

specify whether a credit check in SAP Credit Management
is in scope
You can define check rules for the credit check in SAP
Credit Management in the Define Checking Rules
Customizing activity.
- Specify system response to check
- Allocate credit segment
- Allocate risk class
- Assign description to the credit check.

Embargo You can maintain the legal control settings for the First, review standard settings on the Starter-
individual legal regulations for Embargo. System. Please provide which legal regulations
are assigned to which partner groupings for
You use this customizing activity to make settings for embargo check.
controlling the embargo check. You must define the
business partners for which the system performs an
embargo check. To do this, you must assign partner
groupings to the legal regulations that you use for the
embargo checks for import, and export transactions.
Partner groupings can be created with SSCUIs in your
SAP S/4HANA Cloud system.

Requirements: you have executed the Define Groupings

of Partner Functions Customizing activity.
Embargo You can define the legal regulation you want to activate First, review the standard settings on the Starter-
for embargo. Set which legal regulations for embargo are System. Please provide answers to which legal
to be checked for which country (country of the regulations are to be checked for which
organizational unit responsible). organizational unit per country (company code).

In this customizing activity, you can activate the legal

regulations that you want to use for embargo based on the
country of the responsible organizational unit (company
code). The legal regulation determines which checks are
performed with the trade compliance documents.
General Settings You can create Partner Groupings to group your business First, review the standard settings on the Starter-
partners. This can be used for example in Embargo Legal System. Describe if you want to create additional
Regulations where you assign Embargo to Partner partner grouping please.
Grouping. Then, you assign Partner grouping to your
Business Partner Master Data.
Valuations Optionally, you can define a value adjustment key based First, review standard settings on the Starter-
on country or due date. You can then enter the value System. If needed, define a value adjustment key
adjustment key in the customer master record. This value for the value adjustment. Provide the settings
adjustment key determines the provision percentage rate you need for individual value adjustment.
used to calculate the value adjustment on customer open
items. Later, you will be able to save the value
adjustment key in the customer master record.

General Settings SAP Credit Management helps you to make efficient Please review the default credit groups in your
credit decisions. Your system offers functions to Starter-System. Provide information if you want
determine the risk of lack of payment early on and helps to add or change default settings.
the credit controller to make credit decisions quickly.
Customer credit groups are used to group business
partners. The customer credit group is used as a selection
criterion in reporting and when generating worklists. For
example, possible customer credit groups are domestic
and foreign customers, regular customers, or insured
customers.
G/L Accounts Semantic tags and semantic tag groups can be assigned Please check the Semantic Tag Groups in the
to your Balance Sheet/Profit and Loss Structures Starter-System. Do you want to define your own
(Financial Statement Tag Groups?
Versions). For more information, see SAP Note 2538634.
Predelivered semantic tags are used in reports or KPIs
defined by SAP. These predelivered tags cannot be
changed or deleted, otherwise the reports and KPIs would
no longer work. Customers can make use of these
predelivered tags in their own reports and KPIs. Semantic
tag groups can be used to sort and organize semantic
tags.
G/L Accounts Semantic tags and semantic tag groups can be assigned Please check the default settings in the Starter-
to your Balance Sheet/Profit and Loss Structures System. If you want to define your own tags,
(Financial Statement provide an ID, a name/long name, and assign the
Versions). For more information, see SAP Note 2538634. tag to a tag group.
Predelivered semantic tags are used in reports or KPIs
defined by SAP. These predelivered tags cannot be
changed or deleted, otherwise the reports and KPIs would
no longer work. Customers can make use of these
predelivered tags in their own reports and KPIs. Semantic
tag groups can be used to sort and organize semantic
tags.
Planning The system uses categories to distinguish different sets of Review the standard settings in your Starter-
plan data. You can create different categories for different System. Decide if you want to create Y
purposes. For example, for optimistic and pessimistic plan categories for planning or edit existing
scenarios or for top-down and bottom-up planning or any categories. Please provide details if you decide
other purpose. to change standard settings.

General Ledger In the General Ledger, you will find functionality for First, check the standard settings in your Starter-
Journal Entry automatic clearing of GL open items. The program clears System. For each account type and account
the open items that are grouped together if their total number interval, you can specify up to five
balance equals zero in local and foreign currency. criteria for grouping GL open items for automatic
clearing.

Do you want to specify additional criteria for

grouping GL open items for automatic clearing?

Automatic SAP S/4HANA Cloud comes with automatic payment Check in the Starter-System whether the
Incoming/Outgoing functionality. Default settings are delivered which you payment methods required for your organization
Payment should review in your Starter-System. are defined in the system. Please communicate if
you would like to make adjustments to the
required payment methods by providing country-
specific data.