Hello SAP Financials Community,

Good day to all of you!!

This document is in continuation to my previous blog Simple Finance… SAP’s big leap towards restructuring SAP Financials on Simple Finance.

In this document, I will make an attempt to summarize the features / changes introduced by Simple Finance Add-on 1.0, for various process areas / activities.

Lets hit the ground now!!

The below summary is prepared out of document published by SAP, however, in a concise and easy-to-remember form. I have myself explored a majority of these, but not all.

Process Area Sub-Area Impact
Cost Center Accounting Master Data In the activity type master data, pre-distribution of fixed costs is not supported for sender cost centers.
Activity Price Calculation In the planning versions, tab of price calculation, the actual method should be set as Periodic price .
Splitting Structure
In the assignments of the splitting structure configuration, multiple splitting assignments are not supported.
In the Selection for assignment , Group is not supported.
In the splitting rules, only splitting methods 12, 21, 22, 23, 24, and 25 are supported. The Weighting indicator is not supported.
In the selection for splitting rules configuration, version 0 is supported.
Plan-to-Produce Master Data
Origin Group of the Delivered material must not be changed
Multiple operation sequences and parallel sequence are not supported.
Operation split for scheduling is not supported.
Period End Close Variance Calculation
Target cost versions other than 0 not supported
The explanation function provides less detailed information than before. No explanation is provided for scrap calculation
“Write Line Items” should be selected in the Variance Key definition
Minor differences are not supported.
Primary price variances are not supported.
Variance categories can be posted to different GL Accounts
New T Codes, same as Classic Ones, with a suffix ‘H’ (i.e. KKS1H)
Performance improvement of the Variance calculation program using the power of HANA
The Close schedules must be updated to include the new programs
WIP Calculation

New T. Code KKAOH has been introduced for calculation of WIP

Using KKAOH, WIP can only be calculated on production orders, not on product cost collectors or process orders

New WIP report helps to see the details of the WIP GL Account broken down into Primary and Secondary costs of Production orders
Performance improvement of the WIP calculation program using the power of HANA
The Close schedules must be updated to include the new programs
WIP calculation in only one version (Legal Valuation) is supported
Assessments & Settlements To take full advantage of the SAP HANA architecture, assessment cycles and settlement rules to ensure they are working with account- based profitability analysis
Overhead Calculation
The standard dependencies (D000 – D080) are supported. The customer-defined dependencies are not supported
A quantity-based overhead rate should not be referenced by another quantity-based overhead rate.
Object currency conversion is not supported for quantity-based overhead rates. In such cases, the object currency must be the same as the controlling area currency.
Users need to configure the amount using the controlling area currency in the Costing Sheet.
Order and Business Process are not supported as the object to be credited.
From/To origin are not supported. All units of measure of the cost elements defined in the Base must be compatible.
Order-to-Cash COGS Postings COGS can be split between multiple GL accounts to mirror the Cost Components
Credit Management FI-AR-CR (Credit Management) will be sunset in next release. FSCM-Credit Management must be used
Asset Accounting Technical
Classical AA no longer available. This applies across the system. New AA must be used
Enterprise Extension EA-FIN is MUST. Using New GL is MUST
Leading Valuation can take place in any dep. Area. No longer necessary to use Area 01 for this
SAP EHP7 with business function FIN_AA_PARALLEL requires us to use Ledger Approach only. SFIN Supports both ledger and accounts approach
ALE transfer is not available in New AA
The batch input method for transactions based on AB01 is not available. New BAPIs must be used. Any existing interfaces may have to be reworked
New T Codes, same as Classic Ones, with a suffix ‘L’. Old T Codes no longer available. Auto direct to New T Code if one uses the older one
Postings
Leading and Parallel Dep. Area can now post in real time.
       – Hence, Concept of Delta Dep. Area is Obsolete
Asset postings (i.e. separate documents) can be made separately to each Dep. Area / Accounting principle, using AB01L
    – The restriction of transaction types to depreciation areas no longer applies
    – User Exit APCF_DIFFERENT_AMOUNTS_GET no longer supported
Simplified management of goods that are to be capitalized in accordance with one set of accounting principles, but are to be posted to expense in accordance with a different set
The integrated posting of investment support on assets using FI transactions is not supported. Tcode ABIFL must be used
Documents before changeover from Classical to New AA cant be reversed. An Inverse posting must be made
Work lists made in AA before the changeover may not work. Hence, all pending tasks with the WL must be processed before the migration or New WL must be created after the Migration
For all asset postings, all posting dep. Areas are updated in real time. Hence, ASKBN is now required only for Dep. Areas that manage reserves for Spl. Depreciation only
Joint Venture Accounting (Oil & Mining) Not Compatible with New Asset Accounting
Planning
New Planning Solution brings financial accounting (FI) and management accounting (CO) together. Flexible Top-Down and Bottom-Up planning function made available
The ability to aggregate and disaggregate data quickly makes it possible to perform simulations and forecasting much faster than was previously possible.
User friendly MS Excel front end and Embedded BI cube makes planning easier. Sample BI cubes are integral part of the SAP now
SAP also delivers a program that automatically analyzes existing customer-specific CO-PA dimensions and generates the corresponding BI objects.
As this planning solution is completely new, it has no impact on existing plan data. SAP will not provide migration functionality.
Project Systems Master Data To take best advantage of the SAP HANA selection capabilities, you must create selection variants
Results Analysis
Only the following results analysis methods are supported:
   – Revenue-based results analysis (method 01)
   – Cost-based results analysis based on the % of completion (method 03)
Customer enhancement and the other 15 methods are not supported.
Expert Mode is partially supported.
Only RA in Legal Valuation is supported
Planned Results Analysis is not supported.
Data Archiving

Data Archiving made redundant, Already Archived documents can still be accessed

Data Aging introduced

Cash and Liquidity Management
Classic Cash and Liquidity Management solution is obsolete
New Cash Management Solution on HANA provides the following new features
  – Bank Account Management
  – Cash Position and Short-Term Cash Forecast
  – Embedded Liquidity Planning
  – Cash flow and liquidity forecast calculation powered by SAP HANA
  – New user experiences with the Net Weaver Business Client (NWBC)
Year End Close Balance C/f The program for carrying forward balances now enables you to initialize data carried forward previously when you want to repeat a balance carryforward
Reporting Income statement by market segments Reporting uses a logical document that links the financial accounting (FI) line item, the CO line item, and the CO-PA dimensions (where available) to provide an income statement broken down by market segments.
Summarization Hierarchies in CO
Data Collection before hand has been made redundant
On-the-Fly Summarization report has been introduced
Dynamic Summarization, rather than Pre-defined Summarization
Tables Summary Tables removed GLT0, FAGLFLEXT, COSS, COSP, KNC1/3, LFC1/3. (replaced by CDS Views)
Index Tables removed BSIS, BSAS, BSID, BSAD, BSIK, BSAK, FAGLBSIS, FAGLBSAS (replaced by CDS views)
Impact on custom reports Custom reports based on above tables will continue to work
Logical document

FI / CO document are now linked at Line Item level

This facilitates a logical view of the FI/CO document (Using HANA Live) via program FCO_LOGICAL_DOCUMENT

Hope you enjoyed the learning. Keep watching this space for other documents in the series

Do share your feedback about the document, once you read it. You may leave your comments at the end of the document, by clicking on “Add Comment”

You may also forward it to your colleagues so that it reaches the maximum audience

Best Regards,

Ajay Maheshwari

PS: Tagging SAP ERP Financials – Controlling and SAP ERP Financials  – Asset Accounting forums into the document

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33 Comments

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  1. Ganesh Suryanarayanan

    Thanks Ajay, for the quick snapshot on the changes, really helpful. Already circulating this article to my peer group and printing out this, so i can have on my table.

    Appreciate your effort on this.

    Thanks

    Ganesh.S

    (0) 
  2. Ramakrishna Sabani

    Thanks Ajay, for keeping us up to date with this new Simple Finance.

    One question, I heard through some one that there is not much customization is required with new HANA, every thing is in built, am just wondering how it is possible  is that true?

    Other concern, what SAP FICO consultants job would be if there is no enough configuration tasks ?

    Thanks,

    RK

    (0) 
  3. Anand Seetharaju

    Ajay,

    Great job explaining simple finance.

    Could you please re-post the table summary? It seems the table is not showing fully in the page.

    Thanks

    (0) 
  4. Surya Varma

    Dear Ajay,

    My greatest respect to you. You are simply awesome.

    In the “ME” only world you celebrate the “WE” culture.

    At a time where most consultants very jealously guard their knowledge, you would share such important things,which you would have acquired  by toiling very hard, with everyone of us. This trait of yours is truly remarkable.

    You are a true Go-Giver in letter and spirit

    Thanks & Regards

    Surya Varma

    (0) 
  5. J Swaminathan

    Hi Ajay,

    Thanks for your blog and find it quite informative.  I did go through the webcast earlier but still have a few doubts on the changed functionalities. Would appreciate if you could help clarify the following please.

    1. What exactly is ‘Lite version of New GL’. Does this happen automatically when we install SFin 2.0?  If “yes’, should a full fledged migration be carried out at a later stage.
    2. How about the legacy data (of all totals and indexed tables). Would all of that auto convert to the new HANA CDS view? …say a firm has 10 year plus old data.
    3. Does the above apply for Special Purpose Ledger data too as that too has totals and line items table?
    4. Lastly, is there a tool or cockpit that would help validate all Z tables and Z programs and possibly align with HANA views.

    Regards,

    Swami

    (0) 
    1. Ajay Maheshwari SAP Trainer Post author

      Hi Swami

      Thanks for your feedback.. Answer to your Qs are as below

      1. Lite version of New GL means during activation of SFIN, you will be migrated to New GL, without Doc Splitting and Parallel ledger. These need to be activated later on. SAP is supposed to launch that service this year (as per my understanding)

      2. Yes

      3. Yes. During migration, even SPL tables will be migrated. I have no hands-on experience with this

      4. Not sure about that.. But SAP claims that it is a non-disruptive approach. So, all your Z programs are supposed to work as before

      Custom tables, if any, may be migrated during the migration

      Br, Ajay M

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  6. Marssel Vilaça

    Hi Ajay, great quick checklist. Thank you!

    Do you know if sFIN will affect calculation procedures like TAXBRA?

    It’s known the migration could have some objects deleted like functions, Badi, reports.

    My best wishes!

    (0) 
    1. Ajay Maheshwari SAP Trainer Post author

      Hi Marssel

      I dont have information regarding that..

      I do have a list of countries that are currently supported and the ones which will be supported soon.. Let me check that and get back to you

      Br, Ajay M

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    1. Gregory Misiorek

      Hi Raquel,

      good note. if i understand it correctly, you need to upgrade to sfin 2.0 (1503) and migrate your transactions from COEP and BSEG into ACDOCA before you are able to benefit from its activation.

      unless you are not a preexisting SAP customer and want to jump right into 2.0 out of nowhere.

      thx,

      greg

      (0) 
  7. Easwar sdn

    Hi Ajay,

    Very useful one.. 🙂

    Thank you for sharing your knowledge.

    Seems previous blog is not available. Could you share the link ..?

    When we tried to access the previous blog link, system gives the below message.

    —————————————————————–

    Not Found

    The item does not exist. It may have been deleted.

    —————————————————————–

    (0) 
  8. Srinatha Polati

    Hi Ajay,

    Excellent way of presenting the summary of Simple Finance features and changes.

    It is really appreciated your efforts to share the knowledge for the benefit of all SCN members.

    Regards,

    Srinath Polati

    (0) 
  9. Raj A

    Thanks for sharing your valuable knowledge. Your writing is simple to understand. Easy to grasp. Your students are really lucky to have you as their teacher.

    Kind regards,

    Raj

    (0) 

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