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Author's profile photo Ulrich Hauke

Finance in SAP S/4HANA Cloud 2008

The challenges posed by the COVID‑19 pandemic are likely to continue in the longer term. Finance and accounting must act wise and foresighted to measures in order to maintain business operations. With SAP S/4HANA Cloud 2008 we launch new functions to support realization of revenues for enterprise projects early, to implement promising mergers in the group quickly and to simplify and optimize payment processes. 

Video 1: Release Highlight Video on Finance

Event-Based Revenue Recognition for Project-Based Sales

Event-Based Revenue Recognition has been enhanced to support revenue recognition for selling projects assigned to sales order items. The standard scenario provides the integration of enterprise projects with sales orders which enables the direct flow of revenue to projects and goods issue for deliveries with an out-of-the-box revenue recognition. This reduce manual effort with real-time automatic revenue recognition postings during the period and provides ongoing margin analysis thru real-time matching of revenue and cost with no separate settlement required.

Video 2: Event-Based Revenue Recognition for Project-Based Sales allows you to monitor revenue recognition values and project profitability in real-time.

Merger in Consolidation of Investments

In a merger, the entire balance sheet of a consolidation unit is transferred to another consolidation unit. There are vertical and horizontal mergers. In a vertical merger, the balance sheet of the ceding consolidation unit is transferred to one of its direct investors. In a horizontal merger, the ceding consolidation unit and absorbing consolidation unit share the same direct investor. Both cases are supported with dedicated activities in activity base consolidation of investments. The divestiture of the ceding consolidation unit is automated and there is a semi-automated transfer of equity to the absorbing consolidation unit.

Fig. 1: Merger in Consolidation of Investments

Bank Account Processing with Bank Reconciliation Accounts

You can now simplify your payment processes by connecting new house bank accounts to a new type of G/L account, that is, a bank reconciliation account. A  G/L account with this new G/L account type can be assigned to more than one house bank account. In other words, you can cut down the number of G/L accounts needed for your payment processes significantly by creating only a small number of bank reconciliation accounts and clearing accounts and using them for several house bank accounts. This may help you to simplify the chart of accounts maintenance and the payment configuration.

Fig. 2: New GL Account Type – Bank Reconciliation Account

Here are more innovations not covered in the video:

Enhanced Intercompany Matching and Reconciliation Automation in Corporate Close

The Intercompany Matching and Reconciliation (ICMR) is introduced to speed up your intercompany reconciliation process from company close to corporate close. As a built-in solution in SAP S/4HANA Cloud, it manages seamless end-to-end interunit reconciliation to elimination process. Now with SAP S/4HANA Cloud Release 2008, you can do the reconciliation in real time and eliminate intercompany transactions based on the detailed results with breakdown into various reasons.

Fig. 3: Auto posting workflow status


Profit Center Reorganization 

The profit center reorganization includes the profit center reassignment for commercial projects (CPM projects) linked sales orders. It handles the transfer of open receivables triggered out of the project billing and the transfer of accrued/ deferred revenue from revenue recognition. The app “Manage Organizational Change” orchestrates all necessary activities of an organizational change. This allows the adjustment of profit centers of commercial projects and sales orders in a productive system with posted accounting data and handle the profit center changes in a compliant and consistent way

Fig. 4: Profit Center Reorganization


For more information on SAP S/4HANA Cloud, check out the following links:

Follow us via @SAP and #S4HANA, or myself via @HaukeUlrich and LinkedIn

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