S/4HANA Finance - Big Picture
S/4HANA brings fundamental changes in the finance sector.
In our S/4HANA Finance - BIG PICTURE we explain the simplification and innovation of the new components. The introduction of some functionalities is mandatory, others can be used optionally to further expand your system.
The basis of many changes under S/4HANA is the completely new data model that links the previously separate FI and CO modules. A central transaction data table combines posting data from financial accounting, controlling, asset accounting and the material ledger. This data pool of all FICO-relevant business data forms a single source of truth for all financial data and reports.
S/4HANA is a new, fully integrated and automated solution for mapping parallel valuation approaches. It offers the option of displaying sales or cost of sales and inventory valuation using group and profit center accounting transfer prices in addition to legal transfer prices. This ensures a time and cost effective process of P&L consolidation and inventory valuation.
The accounting CO-PA has experienced an enormous expansion of its functionalities and is moving into focus under S/4HANA as "Simplified COPA". Fully integrated in the Universal Journal and with the extended possibility to display the cost of sales according to the cost stratification from the material cost estimate and to depict variance categories, this account-based display of the profitability analysis is gaining in importance.
As a subledger integrated into the Universal Journal, the Material Ledger (ML) becomes the sole source of inventory and material valuation. With the optional actual costing, the ML calculates periodic unit prices and allows a readjustment of inventories and cost of sales for the actual cost approach. Parallel valuation with transfer prices for inter- and intra-company (profit center) transactions in up to three different valuations (legal valuation, group valuation and profit center valuation) and supports consolidation.
With the Business Partner, a completely revised concept is available for debtors and creditors, which makes harmonized and simplified master data maintenance possible. Customers, suppliers and other business partners are now maintained centrally in a new transaction. A business partner can be created with several roles and thus reflect several different "business relationships" as a central master record, e.g. he can be customer and supplier at the same time.
Credit management is a significant factor in the success of a company, as it helps to minimize financial default risks. With S/4HANA, the classic credit management is completely replaced by the new credit management component. The new cross-system application consolidates various approaches of the classic solution and, through additional functions, enables an efficient and, in some cases, forward-looking credit decision process.
The new asset accounting is characterized by simplification. Based on the functionalities of the new General Ledger, which is a basic requirement for New Asset Accounting, the depiction of parallel valuation approaches in New Asset Accounting is significantly simplified. Postings can be executed in real time and posted across valuations. The enhanced function package also provides new reporting features.
The new in-memory database and the simplified data model in S/4HANA offer considerable potential in terms of reporting options. The integrated component S/4HANA Embedded Analytics picks up exactly these advantages and offers a comprehensive alternative to classic BI solutions, enabling efficient evaluation and analysis of transactional and operational data - on the fly and directly from the ERP system.
Lean dialogs, usability in focus, clearly structured, attractively designed user interfaces (UI) - and device-independent, anytime, anywhere. Who would reject an application with these characteristics? For future applications of SAP, Fiori is the declared design concept. The apps are not only consistently set in S/4HANA as the front end, but new components are also delivered with Fiori technology in the classic Business Suite. SAP now provides more than 10,000 standard Fiori apps for business processes free of charge.
CO-Integration
Very important for the success of any S/4HANA transformation is that the FI/CO team - both the business and the IT side - is part of the project from the very beginning.
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