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Author's profile photo Kesharika Goonawardena

SAP Finance Sub modules comparison from ECC to S/4 HANA

As a SAP consultant who has recently completed a S/4 HANA green field implementation project, just thought of sharing the new features (differences and improvements) which were identified in each sub module area, in S/4 HANA Finance module with compared to ECC.

Hope this will be helpful for the other consultants who are plaining to go ahead with the new SAP S/4 HANA implementation.

Finance General

  1. Totals and application index tables were removed ( exist as views) and theses are replaced by the Universal journal ACDOCA table.

In S/4 HANA – ACDOCA table

This is a compatible table which provides all  CO,AA, and other cost object information in one table.

  1. Certain transaction codes and programs in the application areas, have been replaced with newer transactions, programs, or WebDynpro applications.

Eg: FAGL_FC_VAL  – Foreign currency valuation  has replaced by FAGL_FCV

In ECC

In S/4 HANA

Refer to SAP Note 1946054 for more details.

FI- GL

  1. If migrate from ECC to S/4 HANA, can migrate Ledgers of New General Ledger of the Business Suite or the Classic General Ledger GL to the Universal Journal in S/4HANA. But the number of Ledgers and the configuration of its currency will stay; it is not possible to introduce new ledgers or new currencies during the migration to S/4 HANA.

If Classic General Ledger was used, the ledger ’00’ is migrated to the new leading ledger ‘0L’  of the universal journal.

2.  SAP controlling (CO) is now part of the universal journal. It creates only one document in FI.               During FI posting document carries both FI and CO information with single source of truth.

Eg: Following shows the MM- MIGO financial document.

In ECC

In S/4 HANA  ( In S/4 HANA material ledger activation is a mandatory requirement, therefore material ledger document get generate for each material related transaction. )

 

3. There is no longer a need for CO Realtime integration for transfer of secondary CO postings to New GL or the Reconciliation Ledger of Classic GL.

In ECC

In S/4 HANA

  1. Currencies
In ECC In S/4 HANA

There used to be up to 3 parallel currencies in FI, T-code: OB22

2 parallel currencies in CO. T-code : OKKP

currency configuration depends on the universal journal ledgers, there is a common place to define ledger and currency. T-code: FINSC_LEDGER
The currencies of non-leading ledgers in NewGL, were a subset of the currencies in the leading ledger.
One of the CO currencies needed to be the local currency, but it was not necessary that the other currency in CO was also configured in FI. With the universal journal and the common line item table ACDOCA for FI and CO, there is also a central currency configuration for the universal journal.

Financial Accounting (New ) à Financial Accounting Global Settings (New) à Ledgers à Ledger àDefine Settings for Ledgers and Currency Types.

In ECC

CO currency setting in ECC

In S/4 HANA

In ledger can have 8 freely defined additional currencies (total 10)

         5. Other than parallel ledger can have appendix ledgers. Appendix ledger for delta postings.

6.An additional column appears in Transaction OB52 (opening and closing periods) for postings from Controlling to Finance, (although you still need OKP1 at Controlling Area level).

In S/4 HANA

FI- AP

  1. FK01 is now not in used. Now need to create vendor using BP ( Business Partner ) creation role.

In ECC – FK01

In S/4 HANA – BP

FI-AR

  1. Credit Management now with FSCM , Other than creating the credit controlling area, need to define credit segments and assign it to BP role.

In ECC – FD32

In S/4 HANA

Configuration : FSCM à Credit Management à Master Data à Create Credit Segments

Transaction : BP – Role UKM000. Define Credit limit information.

FI-AA

  1. Actual data of ANEK, ANEP, ANEA, ANLP, ANLC is now stored in table ACDOCA. ANEK data is stored in BKPF.

2. Execute mandatory application configuration steps related to Asset Accounting. IMG -> Asset Accounting New à Migration: Asset Accounting New à Adjust parameters of chart of depreciation

Once configured the chart of depreciation, Adjustment of parameter of the chart of depreciation need to be executed.

3. Asset Accounting Parallel Valuation

Important part of new Asset accounting is parallel valuation in multicurrency environment.

The leading valuation can be recorded in any depreciation area. The system now posts both the actual values of the leading valuation and the values of parallel valuation in real time.

New Asset Accounting makes it possible to post in real time in all valuations (that is, for all accounting principles).

In ECC

In S/4 HANA

4. Define Technical Clearing Account for Integrated Asset acquisition

For an integrated asset acquisition posting, the system divides the business transaction into an operational part and a valuating part. To split the business process in an operational and a valuating document parts there need to be established the “technical clearing account” for integrated asset acquisition.

Operational Entry

For the operational part (vendor invoice), the system posts a document valid for all accounting principles against the technical clearing account for integrated asset acquisitions. (ledger-group-independent document)

Dr Technical clearing

CR Vendor

Valued Entry

For each valuating part (asset posting with capitalization of the asset), the system generates a separate document that is valid only for the given accounting principle. This document is also posted against the technical clearing account for integrated asset acquisitions.

( ledger-group-specific documents for each accounting principle )

DR Asset

CR Technical clearing

In S/4 HANA

Asset acquisition posting

5. Simplified depreciation run (AFAB )

Accounting principle specific posting is possible using new depreciation run.

In ECC

In S/4 HANA

Settlement rules can also be ledger specific if required

6. Statistical postings– instead of statistical cost elements with cost category 90 there is now a special field in the GL account master record is there only in fixed asset and material reconciliation accounts to record this in controlling area.  ( Record account assignment. )

In ECC

In S/4 HANA

7. Asset cut over migration:

In S/4 HANA, Asset transaction data is posted through ABLDT, it updates Assets Accounting and General Ledger Accounting at the same time; due to this, no reconciliation issues occur.

In S/4 HANA

Step 1: Upload only Master Data using the transaction code AS91.

Step 2 : Upload Asset Historical Values, Accumulated Depreciation and Depreciation for the year using the transaction code ABLDT. In  doing this universal journal entry is posting to the fixed asset.

Step 3: Upload current year acquisitions using the transaction code AB01.

BAPI : BAPI_FIXEDASSET_OVRTAKE_CREATE, can be used for data upload.

In ECC

In ECC transaction data was getting posted separately in Assets Accounting through :

a.  AS91

b. General Ledger Accounting through OASV/FB01.

8. Planned depreciation values will get updated in real time as on when there is a change in the asset master data. No need of executing plan depreciation separately.

9. There is no separate balance carry forward needed in asset accounting, the general ledger balance carry forward transaction FAGLGVTR transfers asset accounting balances.

The program Fixed Assets-Fiscal Year Change  transaction AJRW is no longer has to be performed at fiscal year change.

In ECC

In S/4 HANA

FI- BL

  1. Fiori App use for Bank configuration

The following transaction codes are replaced by the new Fiori app Create House Bank, Manage Banks, which can be accessed from the Fiori Launchpad.

  • Create Bank: FI01
  • Change Bank: FI02
  • Display Bank: FI03

Now can maintain banks hierarchies based on bank business partners , overdraft limits, signatories and approvals flow and additional reporting such as the foreign bank account report.

Bank accounts can download and uploaded through Excel in different SAP clients (Development to Production).

In ECC

FI –>  Bank Accounting –>  Bank account –> Define House bank

In S/4 HANA

Data Migration Technology

In S/4 HANA for cut over data migration and for other data migrations, SAP has introduced a new functionality. That is LTMC, (web dynpro)  SAP S/4 HANA Migration cockpit for data uploads.

The use of LSMW for data load to SAP S/4HANA is not recommended, hence an SAP Migration cockpit can be used for migrations. But still you can use LSMW based on your preference.

It provides predefined Microsoft Excel templates which can be downloaded, filled with data, and uploaded to SAP S/4HANA.

Before starting, web service needs to be activated through the T-code SICF.

Refer SAP Note 2481235 for more details.

User Interface

Fiori Launch Pad with Fiori Apps for most of the standard T-codes.

I wrote this blog post to share my knowledge with you. So, if I have missed anything interesting or important, feel free to add those in the comment box. Hope this will help all the finance and non-finance SAP consultant to get an idea on the new features in S/4 HANA.

 

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      32 Comments
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      Author's profile photo Alejandro Jacard Plubins
      Alejandro Jacard Plubins

      Are there any specific FIORI tiles that simplify or enable FI operations? i see you posted the new BANK management FIORI applciation, but it would be nice to see if there are any AP-AR or FI-CO FIORI applications too

      Author's profile photo Stefanos Pougkas
      Stefanos Pougkas

      There are many. You can use the key and end user training simulations to check out some all fiori processes:

      https://blogs.sap.com/2017/03/12/key-and-end-user-enablement/

       

      P.S. appendix ledgers are called extension ledgers since the 1511 release.

      Author's profile photo Kesharika Goonawardena
      Kesharika Goonawardena
      Blog Post Author

      Yes Alejandro, There are many and most of the standard transactions are covered in Fiori Apps.

      just check https://medium.com/@kesharika/first-steps-in-fiori-launchpad-user-guide-c9a256ec697a

      In here I have mentioned some user guide for Fiori users.

      Author's profile photo Kehkashan Anis Ahmed Jamadar
      Kehkashan Anis Ahmed Jamadar

      For Fiori Applications ,please check Fiori Apps Library,Filter it according to the Product version ,and scope items .You will get the list.

      Author's profile photo Joseph Zongo
      Joseph Zongo

      This is really helpful. Thank you for sharing! Do you have any project document to practice in S4hana?  I mean from A to Z FICO project.

       

      Author's profile photo Satyaprasad Sighakolli
      Satyaprasad Sighakolli

      Good one. Thanks for sharing

       

      Author's profile photo Monika Patel
      Monika Patel

      Nice blog . thanks for sharing.

      which version of S/4HANA does this blog refers to ?

      Author's profile photo Kesharika Goonawardena
      Kesharika Goonawardena
      Blog Post Author

      This mainly refers to 1610 and applies to other new versions as well.

      Author's profile photo Muhammad Arif Billah
      Muhammad Arif Billah

      Thanks for sharing the detail.

      nice and detail blog...

      Author's profile photo Bona Egenti
      Bona Egenti

      Excellent work - I like the comparison of both systems.

      Perhaps you can shed light on the learning curve or challenges on your first conversion project in particular preparing data for the single table load.

      Thanks

       

      Author's profile photo Warren Nash
      Warren Nash

      Beautiful blog and gives real and full insights.  Maybe SAP AG can learn from you.

      Author's profile photo venu gopal
      venu gopal

      Nice explanation, keep going same hard work.

      Author's profile photo Nasr ullah
      Nasr ullah

      Very Nice to learning the SAP.

      Author's profile photo Chinmay Damle
      Chinmay Damle

      Really Nice to learing

      Author's profile photo Chinmay Damle
      Chinmay Damle

      Nice document to learn the difference between S/4 & ECC

      Author's profile photo Kehkashan Anis Ahmed Jamadar
      Kehkashan Anis Ahmed Jamadar

      Good document

      Author's profile photo Srinivas Cv
      Srinivas Cv

      Excellent blog

      Author's profile photo Ronak Parikh
      Ronak Parikh

      Nice Blog. Can you please share any document for S/4 Hana Simple Finance migration for green field Implementation project on parikhronak2015@gmail.com. It will be of great help

      Author's profile photo Roslyn Parajes
      Roslyn Parajes

      Thanks so much for this blog. Really appreciate and grateful for this summarized comparison of changes between ECC & S4HANA.

      Author's profile photo jayendra sawant
      jayendra sawant

      Thanks for sharing,

      This document helped me a lot.

       

      Author's profile photo Prashanth Bhat
      Prashanth Bhat

      Hi,

       

      good document. well written. Thanks. if you have any further such documentations, please share to prashanthbhat16@gmail.com

       

      Kind Regards,

      Prashanth

      Author's profile photo Kataru Penchala Krishna
      Kataru Penchala Krishna

      Nice information Kesharika and can you please share if you have any document regarding to SAP S/4 Simple finance to below email id

       

      kataru_krishna@yahoo.com

      Author's profile photo Daniel de Souza Carvalho
      Daniel de Souza Carvalho

      Thank you Kesharika for sharing this information.

      Author's profile photo Gregory Misiorek
      Gregory Misiorek

      Hi Kesharika,

      nice work. was wondering if and how it can be adjusted for brownfield implementations, i.e. implementations of existing ECC Business Suites that customers would want to turn into S4.

      in my mind, the most interesting aspect would be how BKPF/BSEG stop being the GL and become a pass-through to ACDOCA with all the subledgers remaining largely unchanged.

      thank you, greg

       

      Author's profile photo MD. TARIQUL ALAM
      MD. TARIQUL ALAM

      Good Job

      Author's profile photo NARAYANAPPA KURABA
      NARAYANAPPA KURABA

      Thank you very much for your time and effort in sharing your knowledge on difference of few functionalities between ECC and S/4 from Finance perspective and relevant areas you had covered.

      Big Thanks.

      Author's profile photo Naga Deepthi Chopparapu
      Naga Deepthi Chopparapu

      Good document to understand the differences between ECC and S4 HANA FI.

      Thanks

      Deepthi

      Author's profile photo Saikat sen
      Saikat sen

      Thanks for your effort. Informative article. Thank you .

       

      Regards

      Saikat.

       

       

      Author's profile photo Muhammad Hasan Mufid
      Muhammad Hasan Mufid

      Well done Mrs. Kesharika, good articles with nice explanation

      Author's profile photo Sudharsan Renganathan
      Sudharsan Renganathan

      Thanks for sharing.All in one place

      Author's profile photo Aniket Dekate
      Aniket Dekate

      Hi thanks for sharing it was great. Can I get more information

      Author's profile photo Bao .
      Bao .

      Dear Kesh,

      As you mentioned "Bank accounts can download and uploaded through Excel in different SAP clients (Development to Production)."

      unfortunately I am not able to find out in the easy access menu, would you please show us.