ECC to S/4 HANA - Finance Conversion

[pablo_mejias]

This blog will detail the important points to consider for a conversion.

As a first step we need to determine the business processes that will be impacted when making the conversion to S/4. For that you need to check the simplification list Simplification

 

As approach it is important to know the following points:

•        Business Partner Approach (Customer/Vendor integration) mandatory in S/4HANA

•        The FI-AR-CR Credit Management has been replaced by SAP Credit Management (FIN-FSCM-CR)

•        Material Ledger mandatory for material valuation

•        Classic Cash Management has been replaced by new SAP Cash Management.

•        New Asset Accounting Required

•        Classic Real Estate has been replaced by New Real Estate

•        Fiori 2.0 required if Fiori is used in 1709

•        Traditional Foreign Trade functionality in SD/MM replaced by Global Trade Server

•        Revenue Recognition in SD (SD-RR) has been replaced by free of charge add on Revenue    Accounting and Reporting

 

Check this link:

https://help.sap.com/doc/f45c88b65643403d97682484273216d0/1809.000/en-US/SIMPL_OP1809.pdf



Now it is necessary to understand that: S/4 HANA Conversion is not a technical upgrade only. It includes functional changes. This must be considered appropriately in the project plan.

 

And now talking about Finance Conversion you need know:

• SAP conversion programs read data from old tables and transfer them to new structures.


• Compatibility views (tables) are created to make old reports / transaction codes work.


• Configuration/customizing has to be adapted in some areas (see Simplification List).


• For Finance the customizing has to be done during Conversion. It cannot be prepared in the old system.

• With a system Conversion it is not possible to activate new functionalities like document split, parallel ledgers etc. Classic general ledger is transferred technically to new general ledger/ACDOCA without activating new functionalitie

 

The tasks to be performed in the source system before conversion are the following:

• Identify and review the relevant Simplification items


• Prepare Asset Accounting and Material Ledger


• Run Customizing pre-checks and adapt settings, if needed


• Check consistency and reconcile data


• Period end closing activities


• Document your posting data


• Archive data no longer need

 

Preparing Application Specific Tasks

 

 



 

Finally at the time of making the conversion it is important to know 2 things:

 

1- During the migration of information, errors of information inconsistencies can be detected:

• Inconsistencies caused by hardware defect (e.g. corrupt blocks)


• Inconsistencies caused by user handling errors (e.g. switching off line item display in FI


• without line item deletion, missing balance carry forward, etc.)


• Customer reports without consistent updates on the database


• Manipulation on the database (e.g. direct postings on reconciliation accounts)


• Improper customizing changes (without respecting warning messages)


• Wrong migration (from former migrations)


• Wrong data management strategy (e.g. deletion of wrong data, archiving of FI data of the current fiscal year)

2- Recon Reports (to be run before and after conversion)

• The financial statements (program RFBILA00)


• The asset history sheet (program RAGITT_ALV01)


• The depreciation run for the planned depreciations (program RAHAFA_ALV01)


• The totals report for cost centers (transaction S_ALR_87013611)


• Sales order selection (program RKKBSELL)


• The G/L account balance list (program RFSSLD00)


• The general ledger line items list (program RFSOPO00)


• The compact document journal (program RFBELJ00)


• The vendor sales (program RFKUML00)


• The vendor open item list (program RFKEPL00)


• The customer sales (program RFKUML00)


• The customer open item list (program RFDEPL00)


• The customer recurring entry original documents (program RFDAUB00)


• The cost centers: actual/plan/variance (transaction GR55 with report group 1SIP)

 

THANKS!