Preface

15

Who This Book Is For

15

How This Book Is Organized

15

Acknowledgments

18

Conclusion

18

1 Introduction to SAP S/4HANA

19

1.1 Deployment Models

19

1.1.1 On-Premise SAP S/4HANA

19

1.1.2 SAP S/4HANA Cloud: Public and Private Edition

20

1.1.3 Hybrid Models

22

1.2 Universal Journal

22

1.2.1 Single Source of Truth

23

1.2.2 One Database and One Data Model for Accounting

24

1.2.3 Enhanced Reporting

25

1.3 Simplifications and Innovations

27

1.3.1 Minimized Reconciliations

27

1.3.2 Extension Ledger versus Special Ledger

27

1.3.3 Simplified Period-End Close

28

1.3.4 Management Accounting Integration

32

1.3.5 Parallel Accounting and Currencies

33

1.3.6 Predictive Accounting

33

1.3.7 Event-Based Revenue Recognition

34

1.4 User Interfaces

34

1.4.1 SAP GUI

34

1.4.2 Web GUI

35

1.4.3 SAP Fiori

36

1.5 Summary

40

2 Organizational Structure and Integration

43

2.1 Standard Financial Accounting Processes

43

2.1.1 Value Chain Overview

43

2.1.2 Order-to-Cash and Accounts Receivable

45

2.1.3 Purchase-to-Pay and Accounts Payable

47

2.1.4 Acquire-to-Retire and Fixed Asset Accounting

48

2.1.5 Record-to-Report and General Ledger

49

2.2 Organizational Elements of Financial Accounting

50

2.2.1 Organizational Structures

50

2.2.2 Cross-Application Organizational Assignments

61

2.2.3 Central Financial Accounting Settings and Decisions

64

2.3 Integration of Financial Accounting and Management Accounting

71

2.3.1 Management Accounting Postings in the General Ledger

71

2.3.2 Market Segment Reporting in the Universal Journal: The Margin Analysis Application

74

2.3.3 Interface Configuration

76

2.3.4 Intercompany Management Accounting Postings

84

2.4 Summary

86

3 General Ledger Accounting

89

3.1 Record-to-Report

89

3.1.1 Subledger Closing

90

3.1.2 Reconciliations

91

3.1.3 Record and Adjust

95

3.1.4 Period Control

95

3.1.5 Reporting and Analysis

95

3.2 General Ledger Master Data

97

3.2.1 Master Data Structure

98

3.2.2 General Ledger Accounts

99

3.2.3 Chart of Accounts

103

3.2.4 Financial Statements

106

3.3 General Ledger Posting Documents

109

3.3.1 Journal Document Entry

110

3.3.2 Post, Park, and Hold

115

3.3.3 Recurring Documents

121

3.3.4 Post with References

128

3.3.5 Post with Clearing

133

3.3.6 Parallel Accounting

137

3.3.7 Universal Parallel Accounting

141

3.4 Resetting and Reversing Documents

145

3.4.1 Reversing Nonclearing Documents

146

3.4.2 Reversing Clearing Documents

150

3.5 Bank Accounting

154

3.5.1 Bank Master Data

154

3.5.2 General Ledger Integration

160

3.5.3 Bank Reconciliation

162

3.6 General Ledger Period-End Closing

167

3.6.1 Opening and Closing Periods

168

3.6.2 Subledger Reconciliation

170

3.6.3 Foreign Currency Valuation

174

3.6.4 Goods Receipt/Invoice Receipt Clearing

175

3.6.5 Balance Carryforward

178

3.6.6 Financial Closing Cockpit

180

3.7 General Ledger Reporting

189

3.7.1 Accounts Inquiry

190

3.7.2 Trial Balance

192

3.7.3 Display General Ledger Account Line Items

196

3.7.4 Financial Statement

198

3.7.5 Compact Document Journal

201

3.8 Summary

203

4 Accounts Payable

205

4.1 Purchase-to-Pay

205

4.1.1 Purchase Requisition

206

4.1.2 Purchase Order

209

4.1.3 Goods Receipt

212

4.1.4 Invoice Receipt

214

4.1.5 Invoice Payment and Vendor Checking Balances

219

4.2 Vendor Accounts

222

4.2.1 Vendor General Data

223

4.2.2 Vendor Company Code Data

229

4.3 Vendor Invoices

231

4.3.1 Automatic Creation of Vendor Invoices (from Logistics)

231

4.3.2 Direct Invoices

234

4.4 Outgoing Payments

239

4.4.1 Manual Payment

240

4.4.2 Automatic Payment Program

245

4.5 Process Exceptions

255

4.5.1 Credit Memos

256

4.5.2 Down Payments Sent

258

4.6 Accounts Payable Period-End Closing

262

4.6.1 Opening and Closing Periods

262

4.6.2 Foreign Currency Valuation

265

4.6.3 Goods Receipt/Invoice Receipt Clearing

267

4.6.4 Automatic Open Item Clearing

269

4.6.5 Reclassification Run

271

4.6.6 Accounts Payable Reconciliations

276

4.7 Accounts Payable Reporting

284

4.7.1 Accounts Inquiry

284

4.7.2 Accounts Balance Report

287

4.7.3 Open Item List

291

4.8 Summary

294

5 Accounts Receivable

297

5.1 Order-to-Cash Process

298

5.1.1 Sales Order

298

5.1.2 Outbound Delivery

303

5.1.3 Billing Documents

305

5.2 Customer Accounts

308

5.2.1 Customer General Data

309

5.2.2 Customer Company Code Data

314

5.3 Customer Invoices

316

5.3.1 Automatic Creation of Customer Invoice (from Logistics)

316

5.3.2 Direct Customer Invoices

319

5.4 Customer Payments

322

5.4.1 Manual Bank Statements

322

5.4.2 Electronic Bank Statements

327

5.5 Process Exceptions

330

5.5.1 Credit Memos

330

5.5.2 Down Payments Received

336

5.6 Dunning

339

5.6.1 Automated Dunning Process

339

5.6.2 Manual Dunning Letters

342

5.7 Credit Management

343

5.7.1 Credit Master Data and Credit Limits

344

5.7.2 Simple Credit Check

349

5.7.3 Automated Credit Check

349

5.8 Accounts Receivable Period-End Closing

350

5.8.1 Foreign Currency Valuation

350

5.8.2 Billing Due Lists

352

5.8.3 Reclassification Run

356

5.8.4 Accounts Receivable Reconciliations

362

5.9 Accounts Receivable Reporting

374

5.9.1 Accounts Inquiry

375

5.9.2 Account Balances Report

381

5.9.3 Open Items List

382

5.9.4 Aging List

384

5.10 Summary

387

6 Fixed Asset Accounting

389

6.1 Acquire-to-Retire Process

390

6.1.1 Acquisition of Long-Lived Assets

390

6.1.2 Capitalization/Activation

391

6.1.3 Depreciation

392

6.1.4 Retirement/Scrapping

393

6.2 Fixed Asset Accounts and Master Data

394

6.2.1 Asset Creation

394

6.2.2 Asset Classes

398

6.2.3 Account Determination

400

6.2.4 Depreciation Key

402

6.2.5 Depreciation Area

408

6.2.6 Chart of Depreciation and Ledger Assignment

412

6.3 Fixed Asset Explorer

414

6.3.1 Planning

415

6.3.2 Actuals

417

6.3.3 Master Data

420

6.4 Asset Transactions

422

6.4.1 Acquisition/Integration to Vendor Invoice

422

6.4.2 Standard Depreciation

425

6.4.3 Impairment (Value Adjustment)

428

6.4.4 Transfers

432

6.4.5 Retirements/Disposals

435

6.5 Fixed Assets Period-End Closing

439

6.5.1 Change Fiscal Year

439

6.5.2 Depreciation Run

446

6.5.3 Closing Periods

448

6.5.4 Fixed Assets Reconciliations

451

6.6 Fixed Assets Reporting

457

6.6.1 Fixed Assets History Sheet

457

6.6.2 Acquisitions List

458

6.6.3 Depreciation Lists

461

6.6.4 Disposals

464

6.7 Summary

466

7 Customer Project Accounting and Event-Based Revenue Recognition

467

7.1 Customer Project Scenario in SAP S/4HANA Cloud

468

7.1.1 Financial Accounting Innovations

468

7.1.2 Simplified Customer Project Contract Setup

470

7.1.3 Customer Project Setup Overview

476

7.1.4 Customer Project Business Transactions

477

7.1.5 Customer Project Period-End Close

490

7.1.6 Fixed-Price and Periodic Service Contracts

494

7.1.7 Financial Reporting Insights

496

7.2 Event-Based Revenue Recognition

503

7.2.1 Principles of Event-Based Revenue Recognition

504

7.2.2 Event-Based Revenue Recognition for Customer Projects

512

7.2.3 IFRS 15 Capabilities

522

7.2.4 Supported Management Accounting Features

527

7.2.5 Revenue Recognition Apps

530

7.2.6 Supported Business Scenarios

537

7.2.7 Activation and Configuration

546

7.2.8 Positioning and Availability in SAP S/4HANA

550

7.3 Simplified Period-End Close

551

7.4 Summary

553