What’s New in 1610 and 1709 Release for SAP S/4HANA Finance?Category: SAP S/4HANA Finance Posted:Apr 24, 2018 By: Ashley Morrison
The previous release of SAP S/4HANA 1610 in the finance area had concentrated on embedded real-time software. The new capabilities and innovations in SAP S/4HANA 1610 allow the manufacturers to manage the embedded software all through the product lifecycle. The new product development is quickening by the businesses with the response to the collected information about their scholarly products, the requirements based on the product design, and observe the development of the product status, involving quality, outline as well as development progress.
Another innovation with SAP S/4HANA 1610 is the undertaking administration arrangement and improved portfolio, which is an extra SAP S/4HANA component that accentuations on the supporting the venture and portfolio chiefs. SAP has completely refreshed the way a customer works together with the structure to engage perfect adequacy.
The additional options in the SAP S/4HANA 1610 include the propelled availability of potential functionality, incorporated quality administration, and SAP S/4HANA for worldwide exchange.
This post fundamentally focuses on the latest innovation of SAP S/4HANA in the field of Simple Finance lets have a look at them. There are a few points of interest in SAP S/4HANA within the organization. The distinction with the typical FICO in R3 is discussed, including some of the features which are involved in the Simple Finance 1.0 in 2014.
1. One Single Source truth and all accounts become GL accounts:
At the point when all the genuine details are stored in the new table of ACDOCA, it will not create any redundant, aggregate or total tables, as all the measurements of AA, ML, CO, GL will be put away in ACDOCA.
The ACDOCA contains the multidimensional GL, parallel currencies and records, 999,999 details. The latest innovations in the 1610 release have solved the challenges in collecting the substances of various tables to display the reality and settle the details which are stored in different tables of SAP.
2. Parallel Currencies and Valuation:
In the SAP S/4HANA 1610 release, the ten parallel currencies for every record can be seen together. With this new innovation, it is possible to convert all types of currencies in real-time, also zero balance per document is now confirmed for every currency, and the currency for the CO- area is presently figured for all the records.
The parallel valuation functionality is now improved in the 1610 release. There are two ways which are offered in this release to store the numerous valuations.
1.Parallel valuation updated in parallel single valuation record:
It provides a separate record for each valuation, including straightforward partition related to posting and reporting.
2. Parallel valuation rationalized in the multi-valued ledger:
It includes an isolated quantity of segments in a similar record, facilitates memory impression, effort and time required for closing.
3. Profitability Analysis in SAP S/4HANA 1610:
As the SAP S/4HANA highlights on the improvements and combination of record based COPA, it is possible to analyze profitability. The profitability in light of costing is as yet accessible and can be utilized as a part of parallel without any integration with the Universal Journal i.e. ACDOCA table.
Following are the improvements in the account-based profitability analysis:
- While posting the issue of the merchandise, the split of costs of goods which is sold on several accounts is utilized.
- At the time of order settlement, the production opportunities on several accounts are split.
- The real-time derivation of market segment information from cost posting should be possible.
- The 3 new quality fields are offered during the details.
Following are the limitations of the account-based profitability analysis:
- The sales conditions are not supported which are not posting to GL.
- The realignment of attributes is somewhat upheld, which are modified in the wake of posting.
4. Attribute Profitability Segments:
This is one of the best improvement in the field of profitability analysis. For example, when anyone has a debit memo request in a period and material administration order with a settled rule for COPA. The debit memo request will not have any benefit section, but an account assignment related to the service order. It implies that until the service order is established to COPA, one can not have the profitability segment information. By utilizing this new functionality one can have the genuine account assignment in the service order and an attribute assigned to a benefits section.
5. Event-Based on Revenue Recognition:
Presently, the revenue recognition procedure is completely incorporated with the Universal Journal. In that respect, no distinct storage is available for revenue recognition. The cost and revenues are known at the time of their arrival. There are two postings which will produce during the entry of the source document. The two entries are:
One is the entry for the initial cost and revenue and another one is an entry for the revenue recognition posting. The revenue recognition posting and manual modifications are monitored with the new app, i.e. Event-based revenue recognition.
6. Bank Account Management (lite):
There were few house banks and bank accounts in SAP available in the old setup of bank account management. The new version of SAP S/4HANA involves the basic functions related to the bank management functionality of cash management is introduced in the core. This is known as Bank Account Management lite.
Following are the innovative features and contrasts which are compared to the old house bank and financial balance setup:
- Group-wise account administration
- Overdraft Constrain
- Opening and shutting with the approval process
- Easily managed bank accounts
The customers are able to maintain and manage the bank accounts with the help of a committed application called Web Dynpro or Fiori application. The house bank can themselves created in a customized way. The transaction of Fi12 is outdated now, which is supplanted by transaction Fi12_hbank. In this manner, the procedure of creating the house bank and the house bank ledger is disconnected and can be implemented in two separate spots.
Checkout the Article- SAP HANA, S/4HANA, and S/4HANA Finance in a Nutshell
7. New Asset Accounting
It is a pre-requirement to migrate towards the new asset accounting for transferring to S/4HANA Finance due to the following reasons:
- Resolution amongst GL and AA ensured
- No data redundancy
- A simplified outline of deterioration: just 1 CoD
- No delta depreciation zones
- Asset balance in real-time
- Plan values in real-time
- No data idealness
8. Embedded Analytics and Reporting:
SAP incorporates transactions and analytics on one framework permitting the operational reporting details regarding live transaction data. There are several new possibilities in SAP S/4HANA, with the new data structure, pre-delivered virtual information models, the performance of HANA and the modern and state of the art reporting tools and interfaces.
The idea behind using the embedded analytics in S/4HANA is to offer the models through the entire suit in which the business logic is implanted. In this way, the data models which are offered are used to carry out the appropriate information rather than crude information.
The most commonly used S/4HANA implementation used by the clients are Fiori-reporting, SAP Lumira, and Analysis for office.
Innovation in 1709 release in SAP S/4HANA Finance:
With the achievement of SAP S/4HANA 1610, the SAP S/4 HANA 1709 is released on September 15th, 2017. It involves many architectural advancements, including the most recent tools that are available for SAP S/4HANA adoption as well as the functional inventions and developments. The SAP S/4HANA 1709 fundamentally executes on SAP HANA2, which is the second generation of SAP’s in-memory database stage, which supports scale-out and utilization of active added presentation. The architectural developments enable the clients to take the preferred standpoint from the most recent developments in the database frameworks.
In SAP S/4HANA 1709, the innovations in the financial field involve embedded analytics competencies, improved real-time accounting and closing competencies, advanced cloud apps on the SAP cloud platform as well as the first machine learning scenario for finance.
Let’s now explore the five major areas in the finance, which is released with SAP S/4HANA 1709:
1.Central Finance: The first major area is Central Finance, which involves another Fiori app. This apps grants you to visit the documents related to the central financial perspective and also you can visit the source document as well. In place of making payment to each source system, it is easy to make the centralized payments as well as carry out centralized clearing tasks, this is conceivable by utilizing the central payment feature for SAP central finance. An enhanced VAT configuration check for the company code is likewise included in the 1709 release, which allows you to trigger an improved check related to the taxes. It is essential to utilize this check for the central payment.
The clients are looking for a solution for the replication of costing-based CO-PA in central finance, in the SAP ERP foundation framework with respect to productivity based on the account in SAP S/4HANA, which is not bolstered yet. In provision with SAP S/4HANA 1709, the duplication is supported by utilizing a tool-set, as a part of the custom implementation project. The accessible tool-set contains a CO-PA mapping tool and also an improved strategy of duplication.
2.Financial Planning and Analysis: In order to support product cost analysis, the various new enhancements, for example, the SAP Fiori app are also delivering that support the financial planning and analysis. A work focus view is included in this, which not just gives the picture related to actual cost at work focus but it also provides the organized data. Apart from this, some progress is achieved in the profitability analysis in Universal Journal. The splitting cost of products retailed in SAP S/4HANA is improved and now a reporting app that demonstrates the realignment results are also brought out. These enhancements help to provide a vibrant picture to the clients. The new exercise manual is another incredible component designed for the cost of products that are fabricated. Alternate innovations are semantic tagging and flexible hierarchies. These innovations are based on master data features and tags. These two innovations provide a flexible design and simplify the entire revealing capability.
3.Accounting and Financial Close: This is another innovation in the field of finance, which is divided into posting and reporting view. An introduction to the document splitting is now supporting according to the requirements of the customers. The SAP financial closing and accounting is a fundamental portion of SAP S/4HANA 1709, in order to accomplish the speeder element close through meeting the supervisory prerequisites. The financial and accounting close supports in planning, executing, monitoring, and analyzing financial responsibilities for the objects within the group. The intervallic recurring actions are likewise performed with the participation of several agents. A new framework is provided by the advanced compliance reporting, which helps to meet the acute compliance reporting needs for the several accounting principles.
4.Treasury Management: The various innovations and improvements are delivered within the treasury management, here is the list of them:
- Continued innovation of centre treasury
- Stretched centre treasury with value-added cloud administrations
- SAP cash management
- New functionality for treasury and cash management
- Upgraded foreign currency hedgerow management
- Upgraded bank relationship management.
The workflow functionality for the administration of financial accounts is reformed, so that a new format for the workflow is now included, which further involves the new apps for processing and tracking workflow requests and a new app called “Manage Workflows”.
Checkout the Article-Users Should Know About: SAP S/4HANA Sourcing & Procurement
5.Financial Operations: The financial operations in the SAP S/4HANA 1709 release include four SAP cloud platform apps, i.e. SAP cloud for credit reconciliation, customer payments, for digital payments and SAP cash application. These apps support end-to-end techniques by providing cloud services. The enhanced incorporation of procedures between finance operations and the business network applications is also an added advantage, including:
- Invoice and discount administration
- Supply chain
- Cost centre with SAP SuccessFactors Finance solutions
- Payment guidance with SAP field-glass solutions
Go through our SAP S/4HANA SIMPLE FINANCE EXAM C_TS4FI_1610 Certification Made Easy to crack the Interviews.
Thus, it can be expressed that the advantages from the previous releases of SAP S/4HANA are still continuing in the latest innovation in 1610 and 1709 SAP S/4HANA Simple Finance, including the resolution and popularization of usually, addressed challenges in the field of reporting. These innovations make Simple Finance an appreciated addition to any business software infrastructure.
I hope that by now you have had an overview of SAP S/4 HANA Finance. Before you enroll in ZaranTech’s certification course on SAP S/4 HANA Finance, do check out the S4 HANA Finance demo: