SAP Simple Finance

About the Tutorial

SAP Simple Finance (S/4 HANA Finance) is one of the important modules to manage SAP
Finance and Accounting powered by SAP HANA. It is used to perform financial operations
and accounting in real time and reporting using BI tools. SAP Simple Finance helps to
analyze the financial conditions of an organization in the market.

This is an introductory tutorial that covers the basics of SAP Simple Finance and how to
deal with its various modules and sub-modules.

Audience
This tutorial will be extremely useful for professionals who aspire to learn the ropes of SAP
Simple Finance and implement it in practice. It is especially going to help consultants who
are mainly responsible for implementing Financial Accounting and Cost Accounting solution
powered by SAP HANA solution.

Prerequisites
This is an elementary tutorial and you can easily understand the concepts explained here
with a basic knowledge of how a business deals with its Financials. However, it will help if
you have some prior exposure to accounting and how to deal with financial data.

Disclaimer & Copyright

Copyright 2017 by Tutorials Point (I) Pvt. Ltd.

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 SAP Simple Finance

Table of Contents
About the Tutorial .................................................................................................................................... i

Audience .................................................................................................................................................. i

Prerequisites ............................................................................................................................................ i

Disclaimer & Copyright............................................................................................................................. i

Table of Contents .................................................................................................................................... ii

1. SAP HANA INTRODUCTION ............................................................................................... 1

SAP HANA Roadmap to S/4 HANA ........................................................................................................... 2

S/4 HANA Overview ............................................................................................................................. 2

2. SAP SIMPLE FINANCE INTRODUCTION .............................................................................. 5

SAP Simple Finance Key Features ......................................................................................................... 6

Technical System Landscape ................................................................................................................... 6

3. SAP SIMPLE FINANCE ARCHITECTURE ............................................................................... 8

Universal Journal Extensibility in New Architecture .............................................................................. 10

4. SAP SIMPLE FINANCE EXTEND G/L CODING BLOCK ......................................................... 11

5. SAP SIMPLE FINANCE UNIVERSAL JOURNAL ................................................................... 13

6. SAP SIMPLE FINANCE DOCUMENT NUMBER .................................................................. 16

Defining Document Type and Number Ranges ...................................................................................... 16

7. SAP SIMPLE FINANCE DISPLAY FINANCIAL TABLES .......................................................... 18

8. SAP SIMPLE FINANCE DEPLOYMENT OPTIONS ................................................................ 24

SLT Replication in HANA ........................................................................................................................ 24

Advantages of SLT Replication .............................................................................................................. 24

Limitations of SLT Method .................................................................................................................... 25

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9. SAP SIMPLE FINANCE POST & REVERSE DOCUMENTS .................................................... 26

10. SAP SIMPLE FINANCE REPORTING OPTIONS ................................................................... 30

11. SAP SIMPLE FINANCE MIGRATION .................................................................................. 32

Migration Process ................................................................................................................................. 33

12. SAP SIMPLE FINANCE MANUAL REPOSTING OF COSTS ................................................... 34

13. SAP SIMPLE FINANCE G/L ACCOUNTING......................................................................... 37

Display G/L Account Balances ............................................................................................................... 37

Display G/L Account Line Items ............................................................................................................. 38

14. SAP SIMPLE FINANCE CREATE A PRIMARY COST ............................................................. 40

15. SAP SIMPLE FINANCE CREATE A SECONDARY COST ........................................................ 44

16. SAP SIMPLE FINANCE LEDGER MANAGEMENT ............................................................... 46

Types of Ledger ..................................................................................................................................... 46

17. SAP SIMPLE FINANCE ASSET ACCOUNTING..................................................................... 49

Creating an Asset Accounting ................................................................................................................ 49

18. SAP SIMPLE FINANCE CREATE AN ASSET......................................................................... 53

19. SAP SIMPLE FINANCE ASSET SCRAPPING ........................................................................ 56

20. SAP SIMPLE FINANCE CREATE DEFAULT ACCOUNT ASSIGNMENT................................... 59

21. SAP SIMPLE FINANCE MANAGEMENT ACCOUNTING ...................................................... 61

22. SAP SIMPLE FINANCE PROFITABILITY ANALYSIS .............................................................. 63

23. SAP SIMPLE FINANCE PERIOD LOCK TRANSACTION ........................................................ 68

Period Lock in FI .................................................................................................................................... 68

Period Lock in CO .................................................................................................................................. 69

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 SAP Simple Finance

24. SAP SIMPLE FINANCE NEW PERIOD CLOSING PROGRAM................................................ 70

CO Transaction for Opening/Closing Periods ......................................................................................... 71

25. SAP SIMPLE FINANCE SIMPLE FINANCE INTEGRATION.................................................... 72

26. SAP SIMPLE FINANCE IBPF .............................................................................................. 74

27. SAP S/4 HANA FINANCE CONSULTANT CAPABILITIES ...................................................... 75

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 1. SAP HANA IntroductionSAP Simple Finance

In traditional SAP applications, all the data is stored at the database level and calculations
are performed. The results are displayed at the application layer. Most of the query
processing time involves calculations and aggregations. It is recommended that all
application logic should be pushed at the database level to improve the performance of
query execution.

SAP HANA based applications provide best application performance by pushing the
execution into the database as possible. All the data is stored in in-memory database so
the reading data is much faster as compared to a conventional database.

SAP HANA supports real-time data replication and hence removes unnecessary latency
and complexity of data load.

Advantages of Using SAP HANA

Following are the advantages of using SAP HANA as underlying database.

Real-time data analysis

Elimination of unnecessary complexity of hardware
No latency in database due to nightly ETL jobs
In-memory database
Column store supports calculations on the run
Parallel processing
Data compression

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 SAP Simple Finance

SAP HANA Roadmap to S/4 HANA

SAP HANA developed interest by mid-2011 and various Fortune 500 organizations started
considering it as an option to maintain their Business Warehouse needs. In 2012, SAP
Business Warehouse powered by HANA was introduced to support real-time analysis and
real-time reporting was introduced.

In 2013, SAP Business Suite powered by SAP HANA was introduced that supported real-
time business, OLAP, and Transaction on the same system.

In 2014, SAP Simple Finance powered by SAP HANA was introduced for instant financial
insight, no aggregates, and single source of data for reporting.

In 2015, SAP S/4 HANA was introduced that provided a simplified data model, new user
experience, advance processing, and multitenancy.

S/4 HANA Overview

S/4 HANA Business suite is based on the native HANA platform to support simplified data
models, no aggregates, no indices, etc. It has an integrated Fiori-based user interface and
role-based access for different purposes.

S/4 HANA is based on advanced in-memory platform and offers a personalized Fiori-based
user experience to access role-based solution. It can be deployed over cloud environment
or on-premise solution. There are many customers which are moving from SAP Business
Suite to S/4 HANA and for 75% customers, it takes an average 6 months for migration
project.

SAP also offers SAP rapid deployment project to perform a fast migration to HANA platform
and to SAP Simple Finance solution. Various SAP partners provide fixed price integration
for few clients.

Customers can use the customization even after migration of the system. Migration of SAP
Business Suite to S/4 HANA is done via implementation package in the form of SAP Simple
Finance and Simple Logistics, and many more.

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 SAP Simple Finance

With SAP S/4 HANA, SAP is providing a new product and a next generation of business
applications simple enterprise software for big data and is designed to help you run
simple in the digital economy.

With the advanced features of SAP HANA, SAP S/4 HANA is designed for real-time business
operations, planning, and BI analyses. Following is a SAP Fiori-based user interface of S/4
HANA solution, which provides role-based experience to its users.

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You can also define user preferences like - Language, Theme, Default values and any
personalized search. Once you make the selection, click the Save button to save the user
preferences.

You can also customize the home page screen of SAP S/4 user experience by clicking the
Edit sign at the bottom of the screen. You can select different home screen themes as
shown in the following screenshot.

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 2. SAP Simple Finance Introduction
SAP Simple Finance

SAP Simple Finance provides an accounting solution powered by SAP HANA. S/4 HANA
finance comes with different finance and accounting management processes and supports
operations efficiently. With SAP S/4 HANA Finance, you have the following releases:

SAP S/4HANA Finance 1605

SAP S/4HANA Finance, On-Premise Edition 1503
SAP Simple Finance Add-On for SAP Business Suite powered by SAP HANA

Note: SAP Simple Finance is also called SAP S/4 HANA Finance. With the release of 1605,
SAP Simple Finance is only known as S/4 HANA Finance and this will be the only name of
other releases of SAP Simple Finance.

During the installation of SAP S/4 HANA Finance, various front-end and back-end
components get installed.

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SAP Simple Finance Key Features

Following features are available for SAP Simple Finance -

Financial Planning and Analysis

Using SAP Simple Finance, organizations can use it to forecast, plan, and budget as an
ongoing process. With the use of Predictive Analysis, you can forecast the impact of
business decisions on the financial reports of the organization.

Accounting and Finance

With the use of advance Finance and Accounting features, organizations can meet the legal
terms and complete the financial reports on time.

Financial Risk Management

Using Predictive Analysis, organizations can find the risk in financial processes at an early
stage and device ways to mitigate them. It is easy to find the best possible investment
rates as per market standards.

Risk and Compliance Management

Using strong financial processes, it is easy to prevent unauthorized access to sensitive
data in the organization. It is easy to detect fraud and abuse, and organizations can
proactively balance the risk for all the financial processes.

Technical System Landscape

SAP S/4 HANA Finance is developed based on SAP NetWeaver and SAP ERP Business suite.
Following is the minimum system landscape for backend of S/4 HANA Finance (without
SAP Fiori and Smart Business application).

SAP S/4 HANA Finance involves ERP 6.0 to be updated to SAP ep8 for SAP ERP 6.0 and it
is tightly integrated with other ERP applications like Material Management, and Sales and
Distribution.

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 SAP Simple Finance

SAP S/4 HANA comes with a simplified data model. The tables and indexes are removed
and replaced with HANA views in the underlying database.

SAP S/4 HANA Finance uses an in-memory computing power of HANA. To run SAP S/4
HANA, you have to use the latest features of ABAP technology that comes with NetWeaver
7.5.

Central Finance
Central Finance is used to transition to SAP S/4 HANA Finance without impacting the
current system landscape. Using Central Finance, you can implement a common reporting
structure by mapping the common entities in the local system to a common set of master
data in the Central system.

For data replication from source system to Central Finance, you have to use SAP Landscape
Transformation Replication Server.

You can use Software Update Manager (SUM) to perform the installation of SAP S/4 HANA
Finance and to perform system upgrades as well as enhancement package installations.

Note: It is not possible to install SAP S/4 HANA Finance with classical database and you
have to ensure that migration happens to SAP HANA before installation. You cant migrate
to SAP HANA once the installation of S/4 HANA Finance is done.

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 3. SAP Simple Finance Architecture
SAP Simple Finance

SAP Simple Finance provides huge cost and time saving to manage finance and accounting
by leveraging the computing power of SAP HANA. Universal journal combines all the good
qualities of accounting components. In the previous SAP Finance Accounting tool, all the
components are separately managed due to technical restrictions without HANA platform.

Before SAP Simple Finance there were a lot of challenges, such as -

Different level of details stored in respective components/tables

To move the data to appropriate table for reporting purpose
Multiple BI extractors to analyze full data in BI
Reconciliation needed for all components

With the new architecture of SAP Simple Finance, Universal Journal serves as a single
source for all components with one line item table.

Key Features of the New Architecture

Following features are provided with new SAP Simple Finance architecture -

Multidimensional reporting on Universal journal without performing data

replication to BI.

Universal Journal as one-line item table with full detail for all the components. No
reconciliation is required and data is stored only once.

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 SAP Simple Finance

Improved structural capabilities of the financial solution - multiGAAP, additional

currencies, etc.

Support for the existing ABAP programs or reports to prior tables with read
access.

Following tables are replaced by compatibility views in the new architecture -

Index Tables Removed:

BSIS - Index for G/L account

BSAS - Index for G/L Accounts (Cleared Items)
BSID - Index for Customers
BSAD - Index for Customers (Cleared Items)
BSIK - Index for Vendors
BSAK - Index for Vendors (Cleared Items)

Aggregate Tables Removed:

GLT0 - General Ledger Totals

GLT3 - Summary Data Preparation for Consolidation
KNC1 - Customer Master (Transaction Figures)
LFC1 - Vendor Master (Transaction Figures)

Other Tables Removed:

COEP - Cost Line Items

ANEP - Fixed Assets: Line Items

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 SAP Simple Finance

Universal Journal Extensibility in New Architecture

You can easily extend Universal Journal with customer fields. Extensibility is available for
all the components that use Universal Journal - G/L, Asset Accounting, and Material
Ledger.

Extensibility for General Ledger coding block extensibility.

HANA based reporting of all the components - General Ledger, AA, and Controlling.

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4. SAP Simple Finance Extend G/L Coding Block
SAP Simple Finance

Following are the steps to extend G/L Coding Block

Step 1: To extend G/L coding block, you have to navigate SPRO -> IMG -> Financial
Accounting (New) -> Financial Accounting Global Settings (New) -> Ledgers -> Fields ->
Customer Fields -> Edit Coding Block.

Step 2: In the next window, click the tick mark to confirm incorporation of new fields in
SAP coding block.

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 SAP Simple Finance

Step 3: When you add a customer field to the coding block, structure CI_COBL and
CI_COBL_BI are created. Select CI_COBL Coding Block Customer Include and click Add
Fields (F6).

Step 4: In the next window, enter the following details -

Field Name
Field Label
Data Type
Field Length

Step 5: Select from the following Data Type - CHAR or NUMC. Once you enter all the
details, click the Execute button.

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 5. SAP Simple Finance UniversalSAP
Journal
Simple Finance

A Universal Journal entry consists of a header and respective items and in some scenarios
it is possible to have item entries without a header value. Universal Journal is a one-line
item table with full detail for all the components. No reconciliation is required and data is
stored only once.

Header Table BKPF

Respective Item Table ACDOCA

Respective item table ACDOCA consists of all the fields required for General
Ledger, Asset Accounting, and Material Ledger, etc.

Universal Journal contains 6-digit line item numbering

Universal Journal contains 23-digit currency fields

For each business transaction in one of the application components, a journal entry is
created -

General Ledger Accounting

Asset Accounting
Controlling
Material Ledger
Profitability Analysis

The Journal Entry removes the separation between Financial Accounting and Controlling
hence there is no need for any reconciliation between FI and CO, or between FI - General
Ledger and FI - Asset Accounting.

Following are the details of the technical component of Simple Finance

Technical Name SFIN_20_ACCOUNTING_UJE

Country Dependency Valid for all countries

SAP_FIN 720
Software Component Version

Financial Accounting (FI)

Application Component Controlling (CO)
Accounting General (AC)

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 SAP Simple Finance

As mentioned above, a universal journal entry maintains 23-digit currency fields which
brings the currency concept for FI and CO.

For each journal entry, there is a ledger maintained in which the business transaction is
posted. You can also enhance the journal entry by extending the coding block and adding
CO-PA characteristics.

All Universal Journal entries are written to a new table - ACDOCA and no entries are made
to the old tables. However, you can continue to use reports that use data from the old
tables.

Navigate to SAP Easy Access -> Accounting -> Controlling -> Profitability Analysis ->
Planning -> Integrated Planning -> Transfer Plan Values to FI-GL (New).

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 SAP Simple Finance

Navigate to SAP Easy Access -> Accounting -> Controlling -> Profitability Analysis ->
Planning -> Tools -> HANA Integration.

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 6. SAP Simple Finance DocumentSAP
Number
Simple Finance

In Simple Finance, there is only one entry for all the components, there is only one
document number sufficient. Each Journal entry has a header and a line item. The
document number is generated for each journal entry.

A Document Number in Simple Finance is based on the fiscal year and the company
code. Following points can be considered regarding the document number -

CO Document number is not dependent on the year.

ACDOCA table has a 6-digit field for document line.
Material Document number is not dependent on the company code.
The creation of Journal entries is done as per Prima Nota in the source document.

Defining Document Type and Number Ranges

Using document types, you can differentiate between different business transactions and
how they are stored. You can also define the document type for General Ledger
Accounting.

Under Define Document Type for Entry View, you have an option to define the document
type settings for postings in entry view. This posting affects all the ledger entries.

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You can also define Number ranges for the documents. For each number range in Simple
Finance system, you have to specify -

Number interval for which document numbers are selected.

Number Assignment Type - Internal or External.

It is possible to assign one or more document type to each number range. One number
range can be used for multiple documents types.

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7. SAP Simple Finance Display Financial Tables
SAP Simple Finance

There are few financial tables FAGLFLEXT, GLTO, COSS, ACDOCA, BSEG, and FAGLFLEXA
that you can access in SAP Simple Finance system. To display financial tables, use
Transaction Code - SE16n.

Step 1: Login to SAP system and enter Transaction SE16n in Transaction box -> Press
ENTER key.

Step 2: In the next window, enter FAGLFLEXT in the Table field and press ENTER key
to confirm your entry.

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 SAP Simple Finance

Step 3: To see the output of the table, navigate to Table Display -> Execute -> Online.

Step 4: The classic General Ledger Totals table is now a HANA generated view table. To
view, Enter the table name BSIS and press the ENTER key.

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 SAP Simple Finance

Step 5: Enter the table name and navigate to Table Display -> Execute -> Online.

Step 6: To see index tables, which are now HANA generated view table, enter the table
name COSS and press ENTER key.

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Step 7: To see CO totals tables, which are now also HANA generated view table, enter the
table name ACDOCA and press the ENTER key.

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 SAP Simple Finance

Step 8: To see the huge amount of fields from all other applications, including the custom
fields added to the coding block, press F7 button.

You can check the approximate line items in the Universal Journal Table. These are mostly
a direct result from the migration to Simple Finance.

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 SAP Simple Finance

View BSEG table that has much fewer entries when compared to ACDOCA. This is to be
expected as CO line items, Asset Accounting, and Ledger information amongst others is
not held in the table.

Step 9: To view faglflexa table, enter the table name FLAGFLEXA in the table box and
confirm the entry by pressing the ENTER key. Point to note here is that you can see the
new g/l line items table due to extra characteristics (such as the ledger) and document
splitting has many more entries than BSEG.

You can also take an extract of the table in the background, or create an extract in the
background.

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 8. SAP Simple Finance DeploymentSAPOptions
Simple Finance

You can deploy a simple finance system either on-premise or in a cloud environment.
When you deploy central finance system in cloud deployment scenario, the data replication
is performed using the same mechanisms that is used in on-premise installations - SLT.
To perform data replication via SLT, SLT portions will have to be available on both, the
sending (on-premise) and the receiving system (cloud).

Non-SAP reporting and analytics, and additional SAP Simple Finance, or partner products
need to be connected to the cloud instance or be made available within the cloud
installation as required.

SLT Replication in HANA

SAP Landscape Transformation Replication is a trigger-based data replication method
in HANA system. It is a perfect solution for replicating real-time data or schedule-based
replication from SAP and non-SAP sources. It has SAP LT Replication server, which takes
care of all trigger requests. Replication server can be installed as a standalone server or
can run on any SAP system with SAP NW 7.02 or above.

There is a trusted RFC connection between HANA DB and ECC transaction system, which
enables trigger-based data replication in HANA system environment.

Advantages of SLT Replication

Following are certain advantages of SLT Replication:

SLT Replication method allows data replication from multiple source systems to
one HANA system, and also from one source system to multiple HANA systems.

SAP LT uses trigger-based approach. It has no measureable performance impact

in the source system.

It also provides data transformation and filtering capability before loading to

HANA database.

It allows real-time data replication, replicating only relevant data into HANA from
SAP and non-SAP source systems.

It is fully integrated with HANA System and HANA studio.

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Limitations of SLT Method

In SLT method, you dont have centrally executed processes that results in back-postings
to the source systems in order to maintain the integrity and legacy system status of those
systems.

The amount of configuration, customizing, and master data synchronization required in

the central instance depends on the type of the process desired. Many scenarios, especially
core GL scenarios, are achievable with a limited effort. More complex scenarios, or
scenarios beyond (core GL) Finance might be challenging or in selected cases not feasible.

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9. SAP Simple Finance Post & ReverseSAPDocuments
Simple Finance

In SAP Simple Finance system, you can post and reverse many simple FI documents.
When a document is posted, SAP system updates the transaction figures in the accounts
to which the document is posted. You may also need to reverse an incorrect document.
Document reversal is required in the following scenarios -

The document contains no cleared items.

The document contains only customer, vendor, and G/L account items.

The document was posted with Financial Accounting.

All entered values (such as business area, cost center, and tax code) are still
valid.

To post a simple FI document following are the steps.

Step 1: Navigate to SAP Fiori Launchpad and login using the user name and password.

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Step 2: Navigate to Manage Journal Entries, and enter the document date and other
details.

Step 3: In the Posting window, enter the following details-

Company Code
Debit
G/L Account
Credit

Step 4: Scroll up and enter any Attachment, Notes, or Header value to this entry. You can
add a note at any time and they are logged by user and time.

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Step 5: To post the journal entry, click the Post button next to the Simulate button and
document # will be generated.

Step 6: To perform reversal for any journal entry, select the entry in Manage Journal
entry and click Reverse.

Step 7: Select Reversal period from the dropdown list.

You have the following Reversal Reason option -

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Step 8: Enter the Posting Date as todays date, the Tax Report Date as todays date and
click OK. When you reverse a document multiple times, you get the following message -

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 10. SAP Simple Finance ReportingSAP
Options
Simple Finance

SAP S/4 HANA provides various flexible reporting options. You can select between different
reporting options in the backend and the frontend system. You can perform real-time
reporting on top of Simple Finance system. Reporting can be done using SAP
BusinessObjects reporting tools such as SAP Lumira, or reporting via SQL or Smart
Business Apps.

You can also use embedded BW to support business processes in Business Suite such as
Integrated Business Planning for Finance, and support for SAP BW OLAP scenarios.

Following are the key advantages of SAP BW embedded support on HANA Live Views -

Hierarchy support in BW system

User management
Real-time reporting on HANA Live views
Calculations on the fly
User management in NetWeaver system

Following are the benefits-based Performance considerations:

ABAP Code Injection Possible

HANA Optimized Used
Load Balancing on App Server
BW Caches

When you use SAP BW embedded option for reporting, the only drawback is to manage
BW technology stack.

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Back-End Reporting Options

Front-End Reporting Options

Points to Remember
In SAP S/4 HANA Reporting options, you have few of the tools - Crystal Reports, Xcelsius,
AO and BEx in the above list which doesnt support Cloud deployment model of S/4 HANA.

Most of the tools have separate license required for reporting purpose - Web Intelligence,
Lumira, BO Explorer, AO, BO Explorer, BeX, and Xcelsius. S/4 HANA includes limited
runtime license with Simple Finance for Design Studio as a frontend reporting tool.

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 11. SAP Simple Finance Migration
SAP Simple Finance

You can also migrate to the latest version of Simple Finance Add-On when you are running
on a system - new G/L, classic G/L, or Simple Finance 1.0. New SAP S/4 HANA customers
can take over their legacy data using classic migration tools.

When you migrate to SAP Simple Finance Add On, it is fast and easy. The duration is very
small and you can execute at any period end. You dont need a new G/L migration service
to migrate to SAP Accounting powered by HANA. Changes to coding blocks, external
interfaces, security, reporting etc. are optional.

When you migrate to Accounting on HANA from a classic G/L setup, it doesnt support the
following scenarios -

Balance sheets at the Profit Center Level

Implementation of document splitting

When you are running on a classic G/L model, it doesnt support new
Implementation of parallel accounting and segment reporting

Change and Conversion of Chart of Accounts

When you start a migration project to SAP Simple Finance Add On, the following factors
could influence the project duration:

One of the important factor that should be considered during migration is quality
and the size of data to be migrated. It is quicker to migrate a system with go-live
from 2014 than another system with go-live on 2000.

Experience Level of Project Members and Consultants involved in the migration

project

Availability and setup of the Test system

Delta migration scenario to optimize downtime

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Migration Process
In a migration project to SAP Simple Finance Add on, you have to perform the following
steps -

Step 1: System Preparation Phase

The first phase in the migration project is system preparation phase, where you perform
pre-check, data cleanup, consistency of data, closing tasks, and reporting.

Step 2: Installation of SAP Simple Finance Add-On and Other Components

The next step is the installation of SAP Simple Finance Add On component, setting up
HANA Live and SAP Fiori implementation to provide better tile based UX.

Step 3: Customizing for Migration

Perform customizing for General Ledger, Asset Accounting, and Controlling.

Step 4: Data Migration

Perform data migration to move data from the legacy system to SAP S/4 HANA system.

Step 5: Post Migration Activities

Once the migration is performed, you need to perform cold store and add further
information to documents.

Step 6: Data Checks

The last step is to perform the checks on migrated data, report validation, and test the
processes.

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12. SAP Simple Finance Manual Reposting of Costs
SAP Simple Finance

You can do manual posting of cost in SAP Simple Finance and display the results in the
table. To do manual reposting, following are the steps.

Step 1: navigate to Accounting -> Controlling -> Cost Center Accounting -> Actual Posting
-> Manual Reposting of Costs or use Transaction code KB11N

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Step 2: Enter the following details in the next window as shown in the above screenshot -

Document Type - SA
L5 in the Ledger Group box
1000 in the CCtr (old) box
Confirm your entry by pressing the Tab key
400000 in the Cost Elem. box
The Amount
PCM in the CCtr (new) box
Transfer Number in the text box

Step 3: To save the entry, click the Save button.

Step 4: In SAP Easy Access, enter SE16N in the Transaction box and confirm your entry
by pressing the Enter key.

Step 5: Enter the following details in the following screenshot -

Enter ACDOCA in the Table box. Confirm entry by pressing the Enter key.
Enter the Current Year in the Fiscal Year box.
Enter the document number in the Ref. Document box -> Execute or press F8.

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 SAP Simple Finance

Scrolling further, you can see the large number of data derived and stored from the single
posting in the universal journal table.

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 13. SAP Simple Finance G/L Accounting
SAP Simple Finance

In SAP Simple Finance, G/L accounting is used to ensure financial data and statements
are correctly entered. It provides you with a financial statement in compliance with legal
requirements of the country.

Role: SAP_SFIN_BCR_GLACCOUNTANT

Following functions can be performed using G/L Accounting:

Post G/L Accounts

Manage G/L Documents
Display Chart of Accounts
Manage G/L Account Master Data
Manage Profit Center Master Data
Manage Profit Center Groups
Manage Activity Type Master Data
Manage Cost Center Master Data

Display G/L Account Balances

Using SAP Fiori Launchpad, you can compare the balances as well as credit and debit
amounts in a fiscal year, to display data in different currencies for the cross fiscal year.
You can also perform comparison of data for the current year with previous fiscal years,
or you can also export the list to CSV file.

You can directly open this app from Fiori Launchpad as shown in the following screenshot.

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 SAP Simple Finance

When you implement this app, you have to ensure that your system landscape has been
set up to enable SAP Fiori. The front-end components and back-end components for your
app are already available in this system landscape.

You have to enter the following information to perform a comparison -

Company Code
Ledger
Fiscal Year

You have the option to check the balances and perform a comparison. You can also select
Currency from the dropdown list. To view the G/L Account balances, click the Go button
once you select all the details.

From this app, you can also call another transactional app in Fiori Launchpad - Display G/L
Account Line Items.

Display G/L Account Line Items

This app can be used to check G/L account line items. You have an option to apply filters
whether an app should display open and cleared items or all of the items for an account.
The display line items depend on the ledger to be posted.

In case of using SAP JAM, a link to this app can be created with the filter condition and
automatically posted to Jam or you can also send the link via email.

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You can use this app to perform the following back-end transaction(s):

Line Item Browser (G/L View)

Line Item Display (Entry View)

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 14. SAP Simple Finance Create a Primary Cost
SAP Simple Finance

You can create a Primary cost account in updated G/L account maintenance transaction.
In SAP Finance Accounting, the primary cost elements are personal cost, material cost,
etc. When the cost element is carried between FI and controlling, it is called primary and
linked is established using G/L account.

Step 1: Navigate to Accounting -> Financial Accounting -> General Ledger -> Master
Records -> G/L Accounts -> Individual Processing -> Centrally FS00.

Step 2: In the next window, enter G/L account. Enter the Company Code and click the
Template button.

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Step 3: You will be prompted to enter the value in the Reference G/L account box.

Step 4: You will be prompted to enter the value in the Reference Company Code box.

Step 5: Click the Continue button. In the next window, enter the text box and
Consumption, raw material 2 in the G/L Acct Long Text box.

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Step 6: Navigate to Control Data tab. An alternative account number can only be assigned
to one account of the operational chart of accounts, so delete the entry for this copy.

Step 7: Scroll down and click Input Help CElem category d to open a drop-down list with
valid values.

Step 8: Navigate to Create/Bank/Interest tab and choose the Record Quantity check box.
Enter pc in the Int. meas. unit box.

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Step 9: The next step is to move to Key word/Translation tab to select it.

Step 10: Move to Information (CoCd) Wb to select it. Click the Save button.

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15. SAP Simple Finance Create a Secondary Cost
SAP Simple Finance

In SAP Simple Finance, only primary cost elements have an associated G/L account.
Secondary cost elements which are used to allocate costs for internal activities, they dont
have any corresponding G/L account.

Step 1: To create a secondary cost element, navigate to Accounting -> Controlling ->
Cost Element Accounting -> Master Data -> Cost Element -> Individual Processing -> Edit
Cost Element.

Step 2: In the next window, enter G/L account. Enter the Company Code and click the
Template button.

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Step 3: You will be prompted to enter the value in the Reference G/L account box.

Step 4: You will be prompted to enter the value in the Reference Company Code box.

Step 5: Click the Continue button. In the next window, enter the text box and
Consumption, raw material 2 in the G/L Acct Long Text box.

You can create a secondary cost by selecting ChartOfAccounts as Secondary and by

following the steps as used in primary.

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 16. SAP Simple Finance Ledger Management
SAP Simple Finance

In SAP Simple Finance, you can use multiple ledgers in parallel. Ledgers are used to
generate different financial statements as per accounting principles. Ledgers are defined
in Customizing for Financial Accounting New.

To create a ledger, navigate to Financial Accounting (New) -> Financial Accounting Global
Settings (New) -> Ledgers -> Ledger.

When a ledger is created, the system automatically creates a ledger group with the same
name.

Types of Ledger
In SAP Simple Finance system, there are two types of Ledger -

Leading Ledger
You have to define one ledger as the leading ledger and in the standard system leading
ledger is 0L. The leading ledger is assigned to all the company codes. A Leading ledger
contains the same setting like currencies, fiscal year variant, and posting period variant
that apply to the company code.

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It is also possible to define a secondary and third currency for each leading ledger.
Navigate to SPRO -> IMG -> Financial Accounting Global Settings (New) -> Ledgers ->
Ledger -> Define Currencies of Leading Ledger.

Non-Leading Ledger
Non-Leading ledgers are also called extension ledgers. Non-Leading ledgers are based
on local accounting principles. You can perform assignment of Ledger to Company code
from the ledger menu.

Navigate to SPRO -> IMG -> Define Settings for Journal Entry Ledger and Currency Type.

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In Customizing, you have to set up the ledger and assign it to the company code. Assume
that there is a company code with assignment to Ledger N1 non-leading ledger, we also
assign ledger A1 for the company code.

You can display this in the financial table - ACDOCA. Enter the transaction code SE16n in
Transaction box -> Press ENTER key. Enter the table name - ACDOCA and see the display.

Example
Let us say you have to create financial statements as per IAS Accounting and individual
company codes has local accounting principles such as US GAAP.

You can create following Ledger types -

Ledger 0L: You can create a Leading Ledger to manage as per group accounting principle.

Ledger L1: You can create a Non-leading Ledger that can be used to manage all company
codes as per US GAAP.

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 17. SAP Simple Finance Asset Accounting
SAP Simple Finance

Asset Accounting in Simple Finance is used for monitoring of assets in SAP system. In SAP
Accounting powered by HANA system, you have only new asset accounting available with
new G/L accounting. As SAP Finance system is integrated with other modules, you can
move data to and from other systems, i.e. you can transfer data from SAP Material
Management to Asset Accounting system. You can directly post invoice receipt or goods
receipt to the asset accounting component.

You have the following components under Asset Accounting:

Basic Functions
Following are the basic functions under Asset Accounting -

Master data
Asset Acquisition and other transactions
Basic valuation functions
Closing operations

Advance functions
You can perform advance functions for investment support and insurance.

Financial Statement You can perform and create consolidated group financial
statements.

Information System

Usage of new depreciation calculation engine

Creating an Asset Accounting

Step 1: To create an asset account as statistic cost element, enter the Transaction code
- fs00 and press ENTER key in SAP Simple Finance.

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Step 2: In the next window, enter G/L account and Company Code. Click the With
Template option on the right top corner of the screen.

Step 3: Enter the short and the long text under Description box. Navigate to Control Data
tab to select it and clear Alternative Account No field.

Step 4: To save this entry, click the Save button at the top. To confirm the entry, enter
the Transaction code /nAO90.

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Step 5: Click Line Section-Int. and double-click Account Determination. Click Selection
Line as entered in the previous window and Account Determination. Click Balance Sheet
Accounts.

Step 6: In the next window, enter Balance.Sh.acct.APC value and press the ENTER key.
To save the entry, click the Save button at the top of the screen.

Step 7: Again Enter the Transaction code /nfs00 and click the Change button.

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Step 8: Select the Apply Acct Assignments Statistically in Fixed Asset Acct / Material Acct
check box and click the Save button.

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 18. SAP Simple Finance Create anSAPAsset
Simple Finance

In SAP Simple Finance, you can create a new asset under Asset Accounting. An asset in
accounting is known as any tangible/intangible resource that can add a value and can be
included in the financial statement.

Step 1: To create a new asset, navigate to Accounting -> Financial Accounting -> Fixed
Assets -> Asset -> Create -> Asset or use Transaction code AS01.

Step 2: In the next window, enter Asset class and Company Code. Press ENTER key to
confirm the details.

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Step 3: You can select from different Asset class types as per Company Code value.

Step 4: In General tab, you have to enter the Description of the asset and navigate to
Time Dependent tab and enter the Cost Center details.

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 SAP Simple Finance

Step 5: Next is to Navigate to Click the Deprec. Select the Areas tab and enter the value
of UseLife box.

Step 6: Click the Save button to save the entry and you will get a confirmation that asset
XXXXXXX is created in the system.

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 19. SAP Simple Finance Asset Scrapping
SAP Simple Finance

In SAP Asset Accounting, it is required to remove an asset partially or completely from

asset portfolio. This is called asset retirement or asset scrapping.

There are following types of retirement:

When you sell an asset, it results in revenue being earned. The sale is posted
with a customer.

When an asset is sold, it results in revenue being earned. This is posted against
clearing account.

You scrap an asset with no revenue earned.

When an asset is sold to an affiliated company.

Step 1: To perform a partial scrapping in Asset Accounting, navigate to Accounting ->

Financial Accounting -> Fixed Assets -> Posting -> Retirement -> Asset Retirement by
Scrapping.

Step 2: Enter the Company Code and click the Continue button. You can also start the
transaction ABAVN - Asset Retirement by Scrapping, double-click it.

Enter GAAP in the Accounting Principle box (U1).

Enter today's date +1 month in the Document Date box.
Enter today's date +1 month in the Posting Date box.
Enter today's date +1 month in the Asset Value Date box.

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 SAP Simple Finance

Step 3: Click the Partial retirement tab to select it. In the next window, enter Amount
Posted and From curr.-yr aquis.. check box and click the Simulate button.

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 SAP Simple Finance

When you use scrapping, it decreases APC value by the amount entered minus deprecation
calculated. In this, Only GAAP is selectable as the document is only posted to the OL ledger
and the other ledgers get no update.

Step 4: To post, click the Save button.

Step 5: To view the result, start the Transaction AW01N - Asset Explorer by double-
clicking it.

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20. SAP Simple Finance Create Default Account
SAP Simple Finance

Assignment

You can create a default account assignment for any cost element using Transaction code
OKB9. Later, you can also post a document to check if that account assignment works.

Transaction code - OKB9

Step 1: To create a new Account Assignment, click New Entries.

Step 2: In the next window, you have to enter the following fields -

The values of CoCd box

The value in Cost Elem. box
The value in the Cost Ctr box

Step 3: To save the entry, click the Save button at the top.

Step 4: To post a test document to check that the account assignment works, use
Transaction code fb50. In the next window, click Tree On.

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 SAP Simple Finance

Step 5: Select the Screen Variant in the next window and click Tree Off button.

Step 6: In the next window, enter the following details -

Document #
The value in Doc Header Box
G/L acct
Select entry Debit by clicking it
Amount in doc. Curr. Box
Select entry H credit by clicking it
Amount in doc.curr. box

Step 7: To make the document assignment, click the Save button at the top.
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21. SAP Simple Finance ManagementSAP
Accounting
Simple Finance

In Simple Finance, Management accounting deals with Controlling and Enterprise

Controlling modules. Financial Accounting deals with G/L Account Master - Chart of
Account, Company Code; however, Management Accounting includes Cost Elements under
Controlling Area.

Following figure brings out the different between Management Accounting and Financial
Accounting.

Technical Changes with SAP Simple Finance

Actual data of COEP value type - 04 and 11 are stored in ACDOCA table.

Required actual data for long running orders COSP_BAK, COSS_BAK is stored in
ACDOCA table.

You have the compatibility views V_<Tablename> provided to reproduce old

structures.

With the use of views V_<Tablename>, you can still access the data in old tables.

You have the value types other than 04' and 11' are still stored in COEP,
COSP_BAK, COSS_BAK.

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Document Types in Controlling

With the use of SAP Simple Finance, controlling processes are enabled to post into Ledger
groups and you can also specify the document type.

In SAP Simple Finance, on user interface it is enabled for KB11N, KB41N, and KB15N.

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 22. SAP Simple Finance ProfitabilitySAPAnalysis
Simple Finance

With the use of Profitability Analysis, it provides the organizations with profitability
related information on the performance of its sales channels. Profitability Analysis is used
to support decision making, and planning for sales and marketing in an organization.
Organizations can define their planning strategy based on the profitability analysis.
Following are the key points about profitability analysis:

The definition of a market is configured in the system by selecting the

characteristics that are the subjects of analyses.

Performance figures may be based either on profit and loss accounts (Account
Based CO-PA) or freely-defined value Gelds (Cost Based CO-PA).

Account-based CO-PA is the recommended approach.

Cost-based is fully supported but is not integrated in the Universal Journal.

You can use both approaches in parallel, for number of customers you have to
evaluate if there is a need for cost-based CO-PA.

Real-time Account-Based Profitability

Following are the key features about account-based real-time Profitability Analysis -

The Universal Journal as a single source of truth in Financials provides profitability

attributes for every P&L line item.

The Operating Concern generation appends the CO-PA characteristics to the

Universal Journal.

Profitability attributes are derived online.

Profitability attributes can be enriched by further processes such as settlement or

allocations.

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Let us see how to check configuration of the Operating Concern.

Step 1: Navigate to SPRO -> IMG -> Controlling -> Profitability Analysis.

Step 2: In Profitability Analysis, navigate to Structures -> Define Operating Concern ->
Maintain Operating Concern.

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Step 3: In the next window, enter the Operating Concern value and click the Display
button. You can select from different Operating Concern values.

Step 4: When you click Display, in the next window you can see a Characteristics tab and
a Value Fields tab (value fields are only used in Cost-Based CO-PA).

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 SAP Simple Finance

Step 5: Click the Value fields tab to select it.

Step 6: Check the attribute values and Environment by pressing the Back button or you
can also press F3 to move to the back screen.

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 SAP Simple Finance

Step 7: Click the Exit button at the top. Now let us see how to define Characteristic
Derivation.

Step 8: Select the Operating Concert and the type of profitability Analysis - Cost Based
or Account Based.

Step 9: Use the derivation tool to fill up your custom characteristics with values based on
complex or simple rules. You can also maintain rule values or press F9 for the same.
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23. SAP Simple Finance Period Lock Transaction
SAP Simple Finance

In SAP Accounting CO relevant postings do not check only the CO Period Lock as in the
past but the GL period opening/closing as well. Therefore, you have to allow postings to
accounts from account type secondary Costs in the GL period opening/closing.

In Controlling, it is possible to define which transactions you want to lock, and for which
periods.

For example: Let us say that you lock period - 1&2 against the actual overhead assessment
postings and all other postings in this periods are allowed.

Period Lock in FI
In SAP Simple Finance, you can specify which account type you want to allow for posting
in FI and you can also specify the period and Fiscal Year. In SAP Simple Finance, it is also
necessary to open accounts from account type Secondary Costs for FI postings.

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 SAP Simple Finance

Period Lock in CO

In Controlling, you can define which transactions you want to lock and period. You need
to select Controlling Area and Fiscal year.

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24. SAP Simple Finance New Period Closing Program
SAP Simple Finance

Use Transaction code FAGL_EHP4_T001B_COFI or navigate as mentioned in Period Lock

under FI. Enter Pstng period variant and click the Continue button.

You can assign a separate posting period variant to a ledger/company code combination.
You can also control the opening and the closing of a period by ledger in this way.

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 SAP Simple Finance

CO Transaction for Opening/Closing Periods

Step 1: To perform opening/closing period under Controlling, use Transaction code OKP1.

Step 2: In the next window, you have to enter the Current Year in the Fiscal Year box and
click the Actual button or press F5. Select a period that you want to lock and click the Lock
Period.

Step 3: You can also Unlock Period, Lock Transaction, or Unlock Transaction.

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25. SAP Simple Finance Simple Finance SAP
Integration
Simple Finance

You can also integrate Simple Finance Integration with Cash Management, Cash
Operations, Bank Account Management, and Liquidity Management.

SAP Cash Management powered by SAP HANA provides various benefits -

Bank Account Management

Following features are available under Bank Account Management -

Centralized Bank Account Management

Lifecycle Management for Bank Accounts
Master Data Fully Charged by Business Users

Cash Operations
Following features are available under Cash Operations -

Short Term Cash Positions Analysis

Make and Track Bank Transfers

Liquidity Management
Following features are available under Liquidity Management -

Mid and Long Term Liquidity Forecast

Actual Cash Flow Analysis
Embedded Rolling Liquidity Planning and Variance Analysis

Following are SAP Smart Business apps available under Fiori User Interface for Cash
Management -

Analytical and Transaction Fiori Apps

When you open SAP Fiori Launchpad, you can see the list of Transactional and Analytical
apps under Liquidity Management and Bank Account Management that can be used with
SAP FI.

Under Liquidity Management, you have the following apps -

Develop Liquidity Plans

Liquidity Forecast
Cash Flow
Liquidity Plans
Liquidity Forecast Details

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Under Bank Management, you have the following apps -

Manage Bank Accounts

My Bank Account Worklist
Manage Banks
Foreign Bank Account Report
Manage House Banks
House Bank
House Bank Account

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 26. SAP Simple Finance IBPF
SAP Simple Finance

Integrated Business Planning for Finance (IBPF) function in Simple Finance allows to
perform financial planning to integrate with SAP ERP user interfaces, workflows, and
replace the existing features in SAP ERP system. You can remove the limitations during
planning in SAP GUI.

Benefits of Using IBPF

Advantage of HANA views that support direct real-time access to ERP Master Data
and FI-CO document tables.

It provides significant functions with templates to cover multiple planning

scenarios.

Allows organizations using traditional financial planning within ERP to rapidly

implement while protecting their existing investment.

Seamless upgrade feature: CO Historic Plan Data can be migrated to the new
solution (currently not GL).

Integrated FI and CO - top down and bottom up planning capabilities, integrating

data from high level expense to most detailed market segmentations.

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27. SAP S/4 HANA Finance ConsultantSAP
Capabilities
Simple Finance

Following are the kind of experience and capabilities required to handle the key
responsibilities of a SAP S/4 HANA Finance Consultant

Must have 2-3 full life-cycle SAP implementations as experience.

Strong understanding of SAP Finance Data and Table Structures.
Strong Financial Business Process knowledge.
Good working knowledge of the Central Finance scenario in Simple Finance in a
distributed system landscape.

Hands-on experience in replicating finance data from multiple SAP ERP systems to
SAP Simple Finance system.

Good knowledge of SAP Simple Finance and Controlling processes in SAP New
General Ledger, Accounts Receivable, Accounts Payable, New Asset Accounting,
Controlling and Integration with Other Modules.

Skills in Simple Finance applications process design and configuration. Ability to

support troubleshooting.

Skills to identify, assess, and solve complex business problems for area of
responsibility within Simple Finance, where analysis of situations or data requires
an in-depth evaluation of variable factors.

Experience in writing functional specifications.

Certification on Simple Finance will be an added advantage.

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