Contents

Background. 1

Financial Accounting. 2

1. Ledger Scenario. 2
2. Reports by Profit Centers. 2
3. Functional Currency. 2
4. Organizational Structure. 2
5. Customer-Specific Fiscal Year Variant 2
6. Alternative Fiscal Year Variant 3
7. Fixed Assets – Additional Depreciation Areas. 3
8. Advanced Valuation. 3
9. Group Valuation. 3
10. Implementation Status for G/L Account Master Data Management 4

COST MANAGEMENT. 4

1. Event-Based Production Cost Posting. 4
2. Actual Costing. 4

Summary. 5

Appendix. 5

Update log: add 10.Implementation Status for G/L Account Master Data Management

Background

“SAP S/4HANA Cloud, public edition” refers to the solution that we provide to you, whereas “SAP S/4HANA Cloud” refers to the product that you use.

When you sign your subscription contract for SAP S/4HANA Cloud (for example, after subscribing to RISE with SAP S/4HANA Cloud), you don’t only get the SAP S/4HANA Cloud software, but rather an entire environment that contains additional products and services designed to help you make the most of SAP S/4HANA Cloud. The environment that you receive is modular; this means that it contains some default products that are necessary for the standard functions, while other products are optional, and their inclusion depends on your business requirements. You can use SAP for Me to get an overview of the products and services to which you’re entitled.

With the implementation of SAP S/4HANA Cloud, public edition, which need to take multiple foundations into account and influence the key success factors of the project, this blog concludes what is referred to as finance need to know for project implementation.

Financial Accounting

1. Ledger Scenario

Is there a need to post in parallel with multiple accounting principles and does it require an additional third ledger?

Examples: CNAP for Chinese accounting standards, IFRS for International Financial Reporting Standards, USAP for U.S. accounting standards, etc.

Refer to Ledger Scenario: Choose the right combination according to your business needs

Refer to Blog Post

Prerequisite: no journal entries have been posted in the system.

2. Reports by Profit Centers

Are there requirements for reporting by profit center or segment?
For example: balance sheet , income statement, cash flow statement by profit center, etc.

Refer to presents the report by profit center, business area, segment

Prerequisite: no journal entries have been posted in the system.

3. Functional Currency

Is there a need to display the report in a non-local currency?
Example: A Hong Kong company with a customer has activated the cloud edition of Hong Kong, China, and the local currency is Hong Kong Dollar,
but the business currency for its entire business is recorded in US dollars, requiring all reports (including finance and business) to be displayed in US dollars.

Reference to official introduction of the functional currency

Prerequisites for Reference Functional Currency Usage

Prerequisite: no journal entries have been posted in the system.

4. Organizational Structure

Deletion not possible after org structure created, please be careful!

Refer Delete Company Code

5. Customer-Specific Fiscal Year Variant

Do you need to create a customer-specific fiscal year variant?

Prerequisite: Configurable template SZ selected as FYV during system initial setup

Implementation Phase: Product-Specific Configuration – Before Any Postings

Configuration activity: Maintain Fiscal Year Variant (ID 102712)

Refer to  Defining Your Own Fiscal Year Variant
Prerequisite: no journal entries have been posted in the system.

6. Alternative Fiscal Year Variant

Do you need to create an alternative fiscal year variant?

Prerequisite: new company code – no existing data, local GAAP assigned to non-leading ledger

Implementation phase: product-specific configuration, company codes that require an alternative FYV must not have any data during or after the initial implementation project in productive mode.

Configuration Activity: Assign Fiscal Year Variants to Ledgers and Company Codes (ID 105409)

Refer to Alternative Fiscal Year Variant

Note: Industry-specific fiscal year variants, such as the 4-4-5 variant or fiscal year variant with 13 posting periods, are not supported as alternative FYV.

Prerequisite: no journal entries have been posted in the system.

7. Fixed Assets – Additional Depreciation Areas

Do you need additional depreciation areas?

As of SAP S/4HANA Cloud 2208, the following new scope items are available:

5HG – Asset Accounting – Additional Depreciation Area

5KF – Asset Under Construction – Additional Depreciation Area
Prerequisite: You can only select and activate the scope item in initial scoping . It can’t be added later.

8. Advanced Valuation

The advanced valuation is activated by default in new implementation project.

Refer to 3139304 – Add New Country/Region and Activate Advanced Valuation Automatically

The following blogs can guide you how to implement.

• New Advanced Valuation Process in SAP S/4HANA Cloud – (I) Post Discounting of Long-Term Assets and Liabilities
• New Advanced Valuation Process in SAP S/4HANA Cloud – (II) Advanced Foreign Currency Valuation
• New Advanced Valuation Process in SAP S/4HANA Cloud – (iii) Post Credit-Risk Based Impairment
• New Advanced Valuation Process in SAP S/4HANA Cloud – (iv) Post B/S Reclassification

9. Group Valuation

Do you need the functionality of 5W2 (Group valuation)? If required, you must use CBC to select and activate in initial scoping, can’t be activate in subsequent extension activation.

Scope item Group Valuation (5W2)

3093830 – SAP S/4HANA Cloud 2111 to 2302: Release Restriction Note for Group Valuation

3100892 – Group Valuation (SAP S/4HANA Cloud 2111 to 2302)

Prerequisite: Please note that the relevant scope items need to be enabled after enabling 5W2

10. Implementation Status for G/L Account Master Data Management

Cloud customers expect an out-of-the-box solution.

SAP Best Practices predelivers reference G/L Accounts. Customers face several major challenges with these accounts:

The predielivered reference G/L accounts often don’t meet individual customer requirements.

These accounts are written into transports and released into our customers’ production systems via content deployment. This leads to many unused reference G/L accounts in test/production systems.

Although the “Not Used” indicator enables users to remove accounts from their test/production systems at the chart of accounts level, it cannot currently be used to remove unused accounts at the company code level.

1. A new “Implementation Status” will replace the old “Not Used” indicator in the “Manage G/L Accounts Master Data” app. There are three possible status values:

I – In Process: Accounts that are newly deployed from Best Practice Content are designated “In Process”. Customers can easily identify such accounts and decide by themselves whether they want to adapt them now or later. In addition, new accounts that are created by customers can have status “In Process”. Accounts with this status are not transported.

P – Productive Use: Accounts that customers have tested can be set as “Productive Use”. These accounts—and only these accounts—will be written into transports and moved into test/production systems.

N – Not Used: Accounts that customers don’t need can be designated “Not Used”. These accounts will not be moved into test/production systems, and if they are already in these systems*, they will be removed. (*If there are no postings associated with these accounts). Importantly, this redesign enables this maintenance at the company code level as well.

Check help document link

COST MANAGEMENT

1. Event-Based Production Cost Posting

The new implementation project activates 3F0 by default, which is recommended by SAP.

Refer to Help Documentation

Refer to Event-based Production Cost Posting (3F0)

2. Actual Costing

Is there a requirement for actual costing?

Refer to Help Documentation
Refer to of Actual Costing (33Q)

Corresponding Customer requests globally
Production order valuation at actual practices of activities
33Q_Material_Ledger-Material_Price_Analysis材料结果显示33Q-Revaluation
33Q-Revaluation at actual prices of activities for production orders

Note: Actual costs can only be evaluated on the material level, not to the order level.

Summary

These financial considerations affect the implementation and need to be treated with caution. Otherwise tenant refresh is needed which will prolong the implementation timeframe.

Appendix

4 published Financial guided answers