Implementing SAP S/4hana Finance: System Conversion Guide (Hardcover, 3, Enlarged)

... Preface ... 25

... About This Book ... 26

... Acknowledgments ... 33

... Introduction ... 35

... Evolution of the Chief Financial Officer ... 36

... Benefits of SAP S/4HANA Finance ... 37

... Functional Changes with SAP S/4HANA Finance ... 40

... System Architecture with SAP S/4HANA Finance ... 42

... Summary ... 44

PART I ... Defining the SAP S/4HANA Journey ... 45

1 ... Selecting Your SAP S/4HANA Finance Project ... 47

1.1 ... Value Creation with SAP S/4HANA ... 49

1.2 ... Alignment with Key Stakeholders ... 51

1.3 ... Transformation through the Lens of C-Suite Executives ... 53

1.4 ... Executive Decision-Making Process ... 57

1.5 ... Key Drivers ... 68

1.6 ... Hardware Planning ... 71

1.7 ... Organization Readiness and Change Management ... 72

1.8 ... Decision-Making Process ... 73

1.9 ... Summary ... 78

2 ... System Conversion Project Planning ... 79

2.1 ... Path from SAP ERP to SAP S/4HANA ... 79

2.2 ... Transition from SAP ERP to SAP S/4HANA ... 83

2.3 ... Elements of a Successful SAP S/4HANA Adoption ... 88

2.4 ... SAP S/4HANA Infrastructure Options ... 89

2.5 ... SAP S/4HANA Deployment Options ... 90

2.6 ... SAP Readiness Assessment ... 93

2.7 ... Business Case for Simplification Details ... 100

2.8 ... Key Tools to Facilitate System Conversion ... 113

2.9 ... Project Phases for Conversion to SAP S/4HANA ... 116

2.10 ... System Conversion: Recommendations and Lessons Learned ... 124

2.11 ... Summary ... 125

PART II ... SAP S/4HANA System Conversion ... 127

3 ... Preparation ... 129

3.1 ... Planning and System Requirements ... 129

3.2 ... Check Functional Scope and Restrictions ... 130

3.3 ... Feasibility Checklist ... 132

3.4 ... The Maintenance Planner and Prechecks ... 141

3.5 ... Simplification List ... 142

3.6 ... Check Custom Coding ... 142

3.7 ... Check Sizing ... 144

3.8 ... Prerelease Checks ... 145

3.9 ... Precheck for Migration to New Asset Accounting ... 147

3.10 ... Activate Business Functions ... 149

3.11 ... Check and Activate New Depreciation Calculation ... 153

3.12 ... Consistency Checks ... 157

3.13 ... Perform Period-End Closing Activities ... 163

3.14 ... Consistency Check before Activation of SAP S/4HANA Finance ... 172

3.15 ... Execute Business Reconciliation ... 173

3.16 ... Summary ... 183

4 ... Installation and Upgrade ... 185

4.1 ... Installation and Upgrade Checklist ... 186

4.2 ... Review Data Model Changes ... 195

4.3 ... Use the Maintenance Planner ... 196

4.4 ... Install the Related Software Component Version ... 197

4.5 ... Apply SAP Notes ... 199

4.6 ... Content Deployment with SAP HANA Application Lifecycle Management ... 201

4.7 ... Perform SAP HANA-tization ... 201

4.8 ... Optimization ... 203

4.9 ... Lessons Learned ... 206

4.10 ... Summary ... 210

5 ... Preparation and Migration for SAP General Ledger ... 213

5.1 ... Check and Adopt Fiscal Year Variants ... 214

5.2 ... Define Currency Settings for Migration ... 215

5.3 ... Migrate General Ledger Customizing ... 216

5.4 ... Define Settings for Ledgers and Currency Types ... 217

5.5 ... Define Ledger Groups ... 219

5.6 ... Assign the Accounting Principle to the Ledger Group ... 221

5.7 ... Review the Assignment of Ledger and Company Code to Accounting Principles ... 222

5.8 ... Define the Ledger for the Controlling Version ... 222

5.9 ... Define Document Types for Postings in Controlling ... 223

5.10 ... Define Document Type Mapping for Controlling Business Transactions ... 224

5.11 ... Check and Define Default Values for Postings in Controlling ... 225

5.12 ... Define the Offsetting Account Determination Type ... 225

5.13 ... Define the Source Ledger for Migration of Balances ... 225

5.14 ... Check and Define Settings for Substitution for Cost of Sales Accounting ... 226

5.15 ... Check and Define Settings of Controlling Area ... 227

5.16 ... Execute Consistency Check of General Ledger Settings ... 228

5.17 ... Activate Business Functions ... 228

5.18 ... Lessons Learned ... 229

5.19 ... Summary ... 231

6 ... Preparation and Migration for the Accrual Engine ... 233

6.1 ... Migration Precheck for Customizing ... 234

6.2 ... Migrate Customizing for the Accrual Engine ... 234

6.3 ... Manual Migration Steps for Account Determination ... 235

6.4 ... Migrate Validation Checks ... 239

6.5 ... Preparing to Migrate Transactional Data ... 239

6.6 ... Summary ... 240

7 ... Preparation and Migration for Asset Accounting ... 241

7.1 ... Prerequisites ... 242

7.2 ... Install SAP S/4HANA Finance with New Asset Accounting ... 243

7.3 ... Migrate Charts of Depreciation ... 243

7.4 ... Display Migration Log ... 245

7.5 ... Perform Additional Manual Activities ... 245

7.6 ... Check Prerequisites for Activating New Asset Accounting ... 250

7.7 ... Determine Active Charts of Depreciation ... 251

7.8 ... Change Definitions of Depreciation Areas ... 252

7.9 ... Specify Transfer of Acquisition and Production Cost Values ... 254

7.10 ... Specify Transfer of Depreciation Terms ... 256

7.11 ... Activate New Asset Accounting ... 257

7.12 ... Adjust Parameters in Charts of Depreciation ... 258

7.13 ... Lessons Learned ... 259

7.14 ... Summary ... 260

8 ... Preparation and Migration for Controlling ... 261

8.1 ... Execute SAP Business Warehouse Delta Extraction for Account-Based Profitability Analysis ... 262

8.2 ... Adapt Settings for Profitability Segment Characteristics ... 262

8.3 ... Maintain the Operating Concern ... 263

8.4 ... Activate Account-Based Profitability Analysis ... 265

8.5 ... Transport Operating Concern ... 265

8.6 ... Summary ... 265

9 ... Preparation and Migration for Material Ledger ... 267

9.1 ... Migrate Material Ledger Customizing ... 268

9.2 ... Check Assignment of Material Ledger Types to Valuation Areas ... 268

9.3 ... Summary ... 269

10 ... Preparation and Migration for House Bank Accounts ... 271

10.1 ... Define Number Ranges for Bank Account Technical IDs ... 272

10.2 ... Define Number Ranges for Change Requests ... 272

10.3 ... Assign Number Ranges ... 273

10.4 ... Define Settings for Bank Account Master Data ... 273

10.5 ... Lessons Learned ... 279

10.6 ... Summary ... 280

11 ... Preparation and Migration for SAP Credit Management ... 283

11.1 ... Define Settings for SAP Credit Management Migration ... 284

11.2 ... Migrate SAP Credit Management Customizing ... 287

11.3 ... Define the Credit Analyst Group as a Business Partner Group ... 287

11.4 ... Assign the Credit Representative Group to the Credit Analyst Group ... 288

11.5 ... Define the Customer Credit Group ... 288

11.6 ... Assign a Credit Management Group to a Customer Credit Group ... 289

11.7 ... Assign an SAP Credit Management Processor to a Credit Analyst Group ... 289

11.8 ... Check and Define SAP Credit Management Customizing ... 289

11.9 ... Check Customizing Settings ... 290

11.10 ... Lessons Learned ... 291

11.11 ... Summary ... 293

12 ... Data Migration ... 295

12.1 ... Partitioning of the Universal Journal Entry Line Items Table ... 295

12.2 ... Regenerate Core Data Services Views and Field Mapping ... 297

12.3 ... Analyze Transactional Data ... 299

12.4 ... Display Status of Analysis of Transactional Data ... 301

12.5 ... Start and Monitor Data Migration ... 305

12.6 ... Migration of Cost Elements ... 306

12.7 ... Technical Check of Transaction Data ... 319

12.8 ... Material Ledger Migration ... 324

12.9 ... Enrichment of Data ... 325

12.10 ... Migration of Line Items into the New Data Structure ... 329

12.11 ... Migration of Balances ... 333

12.12 ... Migrate SAP General Ledger Allocations to Journal Entry ... 340

12.13 ... Calculation of Depreciation and Totals Values ... 342

12.14 ... Migrate House Bank Accounts ... 347

12.15 ... SAP Credit Management Migration ... 349

12.16 ... Complete the Migration ... 351

12.17 ... Migration with Near-Zero Downtime ... 354

12.18 ... Data Migration Tools ... 357

12.19 ... Lessons Learned ... 359

12.20 ... Summary ... 360

13 ... Post-Migration Activities ... 361

13.1 ... Run Reconciliation Reports to Check Data Consistency ... 362

13.2 ... Validate Business Process to Ensure Successful Migration ... 362

13.3 ... Transfer Application Indexes ... 363

13.4 ... Display Status of Application Indexes Transfer ... 364

13.5 ... Fill Due Dates in FI Documents ... 364

13.6 ... Display Status of Filling Due Dates in Financial Documents ... 365

13.7 ... Fill the Offsetting Account in Financial Documents ... 366

13.8 ... Display Status of Filling Offsetting Account in Financial Documents ... 367

13.9 ... Enrichment of Balance Carryforward ... 368

13.10 ... Manual Activities for Credit Management ... 369

13.11 ... Migration of Accrual Engine Data ... 371

13.12 ... Deactivate Reconciliation Ledger ... 372

13.13 ... Additional Post-Conversion Manual Activities ... 372

13.14 ... Post-Conversion Changes ... 373

13.15 ... Lessons Learned ... 374

13.16 ... Summary ... 375

14 ... Post-Migration Testing ... 377

14.1 ... Test SAP HANA-Optimized Report Transactions ... 378

14.2 ... Test Multidimensional Reporting Capability ... 378

14.3 ... Test Database Footprint Reduction ... 379

14.4 ... Test Intercompany Reconciliation ... 379

14.5 ... Test the New Process Redesign ... 381

14.6 ... Test Closing Improvement ... 381

14.7 ... Test the Universal Journal ... 381

14.8 ... Execute Performance Testing ... 382

14.9 ... Execute Change Management ... 384

14.10 ... Summary ... 384

PART III ... Finance Transformation ... 387

15 ... Key Changes in SAP S/4HANA Finance ... 389

15.1 ... Process Overview and Changes in Financial Accounting ... 389

15.2 ... SAP General Ledger ... 413

15.2.5 ... SAP Credit Management Impact ... 431

15.3 ... Period-End Closing ... 433

15.4 ... Asset Accounting ... 437

15.5 ... Controlling ... 448

15.6 ... Cost Center and Profit Center Accounting ... 462

15.7 ... Profitability Analysis ... 469

15.8 ... SAP Cash Management ... 474

15.9 ... Business Planning and Consolidation ... 482

15.10 ... Summary ... 483

16 ... SAP Fiori User Experience ... 485

16.1 ... Project Phases ... 486

16.2 ... Architecture ... 487

16.3 ... Configure SAP Fiori ... 489

16.4 ... Install SAP Fiori Apps ... 492

16.5 ... SAP Fiori Launchpad ... 493

16.6 ... SAP Fiori Applications and Roles ... 500

16.7 ... SAP Smart Business Application and Roles ... 519

16.8 ... Summary ... 525

17 ... Innovations in SAP S/4HANA Finance ... 527

17.1 ... Financial Accounting ... 528

17.2 ... Financial Close ... 535

17.3 ... Management Accounting ... 538

17.4 ... Financial Planning and Analysis ... 540

17.5 ... Summary ... 544

18 ... Central Finance ... 545

18.1 ... The Business Case for Central Finance ... 545

18.2 ... Key Program Principles ... 549

18.3 ... Lessons Learned ... 570

18.4 ... Summary ... 571

A ... Project Plan for SAP S/4HANA Finance Conversion ... 573

B ... The Author ... 621

... Index ... 623