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SAP’s Financial & Controlling module (one of the core modules from SAP, since its R/2 days) is a pretty mature offering with awesome breadth and depth. But over the years, the world has changed a lot.  New financial regulations across the globe are necessitating change. There is also a need for lightning fast financials reporting.  The world of data is changing swiftly and financial operations must deal with enormous amounts of data processed at higher speeds and make sense of it.

Considering this and to leverage its high-performance HANA platform, SAP has taken its Financial & Controlling module to the next level by launching “Simple Finance” (short form- SFIN) with SAP Business suite 4 HANA (i.e. S/4 HANA) ). And while doing it, SAP not only overcame some of the short-comings (of traditional FICO module) but also packed it with some powerful new features.

The single source of truth

In Simple Finance, SAP has introduced a new table named ‘ACDOCA’ for the Universal Journal. It allows bringing data from General Ledger, Asset Accounting, Material Ledger, Controlling (Including coding block & CO-PA) into one journal. By this one master stroke, SAP has overcome the need of reconciliation (FI & CO), has overcome the need of settlement(All cost elements, including secondary cost elements are G/L accounts) & has done away with index tables /aggregate tables. 

  • Index tables removed – BSIS, BSAS, BSID, BSAD, BSIK, BSAK, BSIM, FAGLBSIS, FAGLBSAS
  • Aggregate tables removed – GLT0, GLT3, FAGLFEXT, KNC1, LFC1,KNC3, KFC3, COSS, COSIP
  • Tables removed  – FAGLFLEXA, COEP, ANEP, ANEA, ANLC, ANLP, MLIT
  • Material Ledger – Contents of tables MLIT, MLPP, MLPPF, MLCR, MLCRF, MLCD, CKMI1, BSIM are now stored in ACDOCA. MLHD data is stored in BKPF
  • Focus will be on Account-based CO-PA
  • The Journal Entry consists of a header (stored in table BKPF) & items (stored in table ACDOCA).  (Table BSEG continues for items. But it stores items coming from classical FI postings like FB01, FB50, FB60, FB70 etc.)

 

  • ACDOCA provides 6 digit field for document line item numbering & 23 characters for currency field. It provides multi-GAAP capability through “RLDNR” dimension (Ledger in GL accounting)
  • Profit Center Accounting (PCA), Sp. Purpose Ledger (FI-SL), & Consolidation (EC-CS) remain untouched & work as before. Components built with FI-SL technology like Joint Venture accounting & Public sector are untouched & work as before. Cost-based CO-PA works as before.

The ACDOCA design provides the highest level of granularity to users. It enables trial balance with many drill-downs & also provides multi-dimensional income statement.

Line item based analytics –

SFIN allows Processing and analysis of data based on line items rather than pre-configured totals, so that you can achieve the highest level of granularity available. Moreover, you do not have to set up aggregates before evaluating the data, which limits the type of analysis you can do and the speed of the analysis. With SAP HANA, you can perform your analysis quickly. This covers all the dimensions that you have in your line items.

Covering each and every topic of Simple Finance is not feasible, but in nutshell, it consists of following sub-modules:

  • General Ledger
  • Account Receivable
  • Accounts Payable
  • New Asset Accounting
  • Management accounting (including Material Ledger & Profitability Analysis)
  • Cash Management
  • Integrated Business Planning for Finance (IBPF)

User Experience – 

Fiori is SAP’s user experience paradigm. It allows role-based queries (with drill-down & slice-and-dice capabilities with graphical representation) on all devices (work-station, tab, mobile phones). Launch pad designer allows user personalization. SFIN comes with some ready-to-use queries which work without any configuration. One can add more (customized) queries/tiles with minimal efforts.

Reporting capabilities –

Customers can use new dashboards based on Fiori layout options, SAP Smart Business Apps, SAP Analysis for Office and SAP HANA Live and new sFIN HANA Live content.

Depending on the requirements, reports can be built in HANA Studio, or also via the embedded BW. It depends on customer requirements for how much standard content should be (re-)used versus custom built.

Simple Finance users will experience much greater execution speeds, in some cases even as high as 1000x. It removes bottlenecks from closing process, eliminates time and efforts needed for reconciliation. The new architecture also eliminates data redundancy & thereby reducing the data foot-print drastically. The new user interface tools such as Fiori, Office Analysis Excel will revolutionize the user experience.  Instant improvement were observed in operational performances as well as closing processes which were seen to be 5X faster than before.

Simple Finance allows SAP customers to run trial Balance sheets, P&L’s and Cash flow analysis any time of the day and any day of the quarter. The granular design enables trial balance with many drill-downs & also provides multi-dimensional income statement.

Migration

Organizations on SAP (with traditional SAP FICO module) can migrate to Simple Finance (SFIN 2.0) in following way –

Those who are on New GL can directly migrate to SFIN.

Those who are on classical GL, need to first migrate to New GL (bare-minimum functionality, no need to have document splitting or parallel ledger) & then move to SFIN.

This migration happens purely through SPRO & doesn’t need any technical (i.e. ABAP/4) help.

This migration is not to be confused with the one using “Central Finance component” (which helps in moving data from distributed ERP landscape and even from non-SAP ERP, using SLT – SAP Landscape Transformation)

Deployment options –

Currently, SFIN is available as SFIN 2.0 On-premise edition (1503) only. But as SAP is chalking out its Cloud strategy aggressively, it is only a matter of time before its availability in Cloud edition.

Important SAP Notes you may want to refer for more details –

  • SAP Note 2119188 Release scope including industry solution status
  • SAP Note 2103558   Availability/Compatibility of SAP add-ons
  • SAP Note 1946054 – SAP Simple Finance, on premise edition: Transaction codes and programs – Comparison to EHP7 for SAP ERP 6.0
  • SAP Note 2131643 – Replacement of SAP Simple Finance add-on 1.0 reporting content with SAP Simple Finance, on premise edition 1503

Conclusion –

SFIN offers absolutely great value, for those customers who are going directly for it as part of their SAP implementation (i.e. case of green-field implementation), as well as for those who already are running on SAP & move to SFIN.

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36 Comments

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  1. João Paulo Almeida

    Hi Prashant Pimpalekar,

    Very good! But when you said that these documents will be saved on BSEG are from classical posting from FB’s, means that these documents will be saved when the project was migrated, am I right?

    I guess for the new documents created by FB’s will be saved on ACDOCA,

    Thank you.

    JPA

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  2. Neal Tarditi

    Hi Prashant,

    Excellent summary.

    FAGLFLEXA and COEP are still there in SAP (I haven’t looked at the assets). FAGLFLEXA still used for splitting.

    The index and aggregate tables are replaced by Hana generated DDL SQL views (i.e. can still look at the tables in SE16/SE11 but HANA just fills the HANA view with information from the line item tables – look and feel of se11/se16are the same as pre Hana)

    @ Joao Paulo BSEG is still populated for all FI transactions as per normal but the ACDOCA table is also populated at the same time with BSEG and COEP (i.e. CO) information. The reason for stating FB’s is that any CO transaction that only posts to CO will be populated in ACDOCA and not in BSEG (i.e. BSEG operates as per normal SAP) – examples are assessment and distributions between cost objects such as Cost Centres.

    Thanks Prashant for the info.

    Regards

    Neal

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  3. Ganesh Sadula

    Prashant,

    Thank you for sharing informative about SFIN,

    Sir,

    SAP H/4 , We tested P2P cycle is reflecting in BSEG, BSIK, BSIS and also in ACDOCA table .

    It flow in on only ACDOCA table in SAP S4 HANA. if data flow Index tables and ACDOCA table it will be heavy data on server.


    please suggest me as above


    With regards,

    Ganesh

    (0) 
    1. Coder X

      If your question is; “why do you still see index tables BSIK and BSIS with data and will it take up space in the HANA DB?”, then the answer is; “BSIK and BSIS are no longer physical tables but non-materialized compatibility views which do not take any memory on your HANA DB”. You are only allowed to use SELECT statements on these tables to support backward compatibility.

      Non-materialized views do not take up space in the DB because they are computed on the fly. So you need not worry about the data foot print from any of the index tables. This explanation holds true for all the index tables removed from S/4 HANA.

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  4. Jay Bhattacharyya

    Hi Prashant,

    This is very useful information.

    Are you going throw some light on migration to Central Finance from non-SAP (esp. Oracle) ERPs? I’m interested to know details of the migration process and pitfalls (if any).

    Thanks.

    (0) 
  5. Bharat Khanna

    Hello Prashant,

    Thanks for the clear pictre of ACDOCA table. Very helpful. Will be willing to read more of SFIN, inc case you have posted few more.

    (0) 
  6. Harshad Bhingarkar

    Hi Prashant,

    Indeed its a valuable information. Being a technical consultant, I would like to know the impact of these changed data model on ABAP side.

    We have beed using various BAPIs, IDOCs, BTEs, Substitution / Validation exits for various functionalities throughout various versions.

    Obvious question is, how these are handled in S/4HANA 1605 version and if there is any document / Release notes available for migration of these Technical Artifacts. I tried to find, but could not find a good information on this. Will be helpful if you can point me on this.

    – Harshad

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  7. M. Umer

    Hi Prashant,

    Nice Efforts.

    Can you anyone here Answer few of my Curiosities Regarding below:

    How We will Map Data in SLT Using Central Finance Scnerio?

    How CO Document Posted in Source System will be Handled Target System?

    Hoe we will Covert all of our Cost Elements (Primary, Secondary) to GL Accounts. I know using T.Code FS00 we can do one by one, How we can Do in Bulk. Is there is any New Functionality SAP has Introduced for that?

    My Client might will Start Migration Project Shortly.

    Any Notes, Configuration Guide and Documentation Links will be Appreciated.

    Thanks

    Umer

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    1. Govind Gogate

      Hello Umer,

      Regarding point # 3 on cost elements – there is no facility available to do bulk upload for the cost elements (which are going to be created using FS00), like the one which was available earlier (Automatic Creation of Primary and Secondary Cost Elements).

      – You reach the transaction code FS00 when try to create Cost Element.

      – while creating a GL account, need to specify the GL account type – whether it is a balance sheet / Primary cost or revenue  or secondary cost account.

      – On the basis of the same, on the tab”Control data”, Account settings in controlling area” will be available to determine  the cost element category.

      Thank you!

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    2. Neal Tarditi

      RE: How We will Map Data in SLT Using Central Finance Scnerio?

       

      The mapping will be in Z tables in Central Finance or MDM functionality if implemented

      (0) 
      1. M. Umar

        Thanks Neal for your Feedback. I Appreciate it.

         

        Can you Explain a Little More in Detail if we use Basic Version of MDG Which Does Not Require a Separate License, then How We can Perform Mapping and Can you tell us about Cost Object Mapping Frame Work, How it Works and How Do we Map Cost Objects Like Internal Orders and Production Order using Cost Object Mapping Frame Work.

        (0) 
  8. Functional S4HANA

    Hi Guru,

     

    Have you come across during S4 migration the FAGLFLEXA count before and after migration  has changed drastically. in my case it has increased by 80% of existing count and what could be the potential reason the increase.

     

    Thanks for reply.

    (0) 
  9. Santosh Kumar Pannala

    Hi,

    Very good and useful information. My client looking towards for S/4 implementation. They have started technical migration to HANA. However they are still taking more time when to move on Simple Finance.

    Just wanted to check are there are pre-requisite steps or preliminary setup that we can do now like BP creations or anything which can reduce some of amount of time. The main aim is to start ourselves prepared for the big project and begin with minimum things that do not have any dependencies.

     

    Regards,

    Santosh

     

    (0) 

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