Migrating from SAP ECC to SAP S/4HANA brings with it a few challenges. While finance controls professionals may not think that migration could bring significant change to their operations paradigm, the truth is that it very well could. Several major changes in SAP S/4HANA impact financial controls. Among these changes include:
- Universal Ledger: a system that incorporates all individual ledgers into a single one. The Universal Ledger has support for up to ten parallel currencies.
- New Asset Accounting: This approach creates automatic reconciliation between the Asset and Universal Ledger.
- Financial Supply Chain Credit Management: This module replaces SD Credit Management.
- Mandatory Material Ledger: Replaces valuation of stock.
- SAP S/4HANA Revenue Accounting: Replacing the SD Revenue Recognition system so that the revenue accounting module can integrate with the Universal Ledger.
- Business Partners: places both Customer and Vendor transactions.
Naturally, these changes will have a significant shift in how financial controls use SAP.
The Impact of These Changes on Controls
Some of the tables that we’ve been using for yea4s in ECC have been replaced altogether. Other tables have remained but have changed in some way because the tables have been changed, the interaction from a controls perspective has also changed. Areas of controls work that is likely to be impacted by the changes in the tables mentioned above are:
- Data Analysis: Manual Journal reviews will change because of the interaction with the S/4 Universal Ledger, for example.
- Configuration Controls: An example of this is the change in Credit Management and finance.
- Financial Controls: Reviews of Revenue Recognition thanks to S/4 Revenue Accounting
Additional Checks Post-Migration
While the SAP Software Update Manager (SUM) deals with converting the data models from ECC into S/4HANA, verification is still needed. After migration, controls personnel should verify that specific tables have been carried forward correctly into the new system. Among the checks that should be performed are:
- Ensure that finance data reconcile correctly in the new system.
- Check finance data tables for consistency.
- Balance totals should patch posting totals in postings.
- Check that all open customer and vendor invoices are migrated as “open” in the new system.
- Ensure financial statements (Balance Sheets and Profit & Loss reports) are reconciles between both systems.
- Check that balances are resolved between both systems.
- Before data migration goes live, ensure that Ledgers and Company Codes are adequately assigned.
- Verify that General Ledger configs are accurate and correct.
- Run a manual check on Table T012K using SE16.
- Verify that customers and vendors CAN be migrated into S/4HANA.
- Ensure proper migration of vendors and customers, especially their bank account details.
- Asset postings should reconcile with General ledger pre-migration.
- Verify that ECC accounting data CAN be migrated to S/4HANA.
- Verify inventory reconciliation with General Ledger.
- Material Ledger stock value must also reconcile with General Ledger.
- Check that stock quantities and values match between SAP ECC and SAP S/4HANA.
- Verify cost-center totals match between systems.
- Ensure revenue data is consistent pre-migration.
- Check revenue postings to verify they’re consistent.
These steps will allow a business to be more confident that their SAP S/4HANA migration successfully migrated financial controls data across successfully.. The peace of mind is worth the extra effort.