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SAP’s Janet Salmon provided couple webcasts on the new Smart Accounting solution, now in ramp-up, last week.  I see this as a follow on to How HANA Impacts Product Cost Reporting – ASUG Webcast Part 1

The usual legal disclaimer applies:

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Figure 1: Source: SAP

Things in the future are subject to change.

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Figure 2: Source: SAP

Janet said that “Costing based CO-PA isn’t going away” but instead look at another alternative

Use cost elements to link CO-PA dimensions with accounts in FI

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Figure 3: Source: SAP

Figure 3 shows the original designs started in R2 – transact, record, in a financial document and then report on it

However it became complicated as databases more complicated so built new views

SAP had a separate ledger for COGS, CO reporting PS reporting – separate tables in the system

The vision was to report on raw data.

Then SAP moved information to Business Warehouse, but for some customers it takes 8 hours to move from Material Ledger to BW

With this solution SAP now collects transaction data in one data stream and reports on that

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Figure 4: Source: SAP

Figure 4 shows “one data stream, granularity” with a “nicer user experience” and you can “close on the fly”.

The future vision is consolidation on the fly

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Figure 5: Source: SAP

Janet said that “speed coming back is radically fast”.

Smart Financials assumes HANA underneath with a code split of two blocks: SAP-FIN and ERP-FIN

Logistics stay same, industry solutions stay the same

Interface hasn’t changed

With HANA Live content, it puts views on tables on ERP – like BW extractors

She said this is leaner, like “putting data on the fly”

Reduce Reconciliation Effort

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Figure 6: Source: SAP

Logical link is provided between FI and CO for one document view

It uses HANA Live to drill down

It becomes an account based structure

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Figure 7: Source: SAP

Figure 7 should look familiar to everyone who has taken an Intro to SAP Accounting Course (including me).  You can see there is no link between the FI and CO items.

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Figure 8: Source: SAP

Certain requirements such as revenue postings and invoices can summarize in invoice but keep details in CO-PA

  • Stop summarizing in FI
  • Default in system is something to bear in mind

Key point made in Figure 8 is that FI and CO have the same level of granularity (they do not today)

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Figure 9: Source: SAP

Figure 9 shows making a physical link between FI and CO now

Smart accounting is based on new general ledger

Sender receiver relationships usually cross FI

Part 2 is coming, where using the BI tools against the Smart Financials solution is shown, including Analysis Office.

Please note that SAP’s Vishal Sikka discusses BSEG and how we use it in this new Open SAP Course Course: An Introduction to SAP HANA by Dr. Vishal Sikka

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6 Comments

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    1. Tammy Powlas Post author

      Not to my knowledge as the product is still in ramp-up

      I’m very curious to see it myself; 15 years of FI-CO knowledge is about to change.  Many of these screen shots reminded me of my first SAP Accounting class in Calgary in 199x…

      Perhaps once it is GA we will be able to see it.

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  1. Peter Chen

    Thanks, Tammy.

    you are right.  Wrote so many ABAP codes against the secondary index tables BSIS….now they are history…will be….

    it appears SAP is keeping them as views to allow smooth transition of custom codes….

    CHange is indeed coming…

    thanks again

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  2. Kai Hoffmann

    Hi Tammy

    thanks for these insights. I find it incredibly hard to find useful Information on smart financials that go down to this operational Level.

    I kind of understand that BSEG and COEP can be merged and i see the benefits from this.

    Where i am currently at a loss is what happens to costing based COPA. In your second part of the blog you say SAP recommends now to use account based COPA (indeed a nice recommendation but what to do if all you life you worked costing based COPA…) but costing based COPA can stay. In which case i would still be stuck with fundamental FI/CO reconciliation issues or not? Or but differently: if i implement today account based COPA then i am anyway closer integrated between FI and CO so what kind of benefit does smart Financials offer me in the COPA area if continuing with costing based COPA?

    Maybe i just dont see the whole Picture here and you have some insights?

    Thanks

    Kai

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    1. Gregory Misiorek

      Hi Kai,

      i don’t mean to steal the thread from Tammy, but in the spirit of an open forum i would like to leave this comment.

      i’m not in the ramp-up either, but IMHO, the main benefit comes from the underlying (smart) architecture of the FI/CO on HANA, i.e. dispensing with persistent subtotals and totals (or cost-based COPA in your case). if i understand anything about the columnar databases, that have their field values encoded and compressed, i don’t see a need to reconcile any more as the discrepancies are assumed as non-existent.

      now, the experience tells us otherwise, so i’m just as curious as anyone else how SAP is going to pull this off.

      rgds,

      greg

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