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What is SAP S/4HANA Finance?
SAP S/4HANA Finance is an updated version of SAP Simple Finance which includes many new features in addition to what was offered in SAP Simple Finance. To name a few are Universal Journal, streamlined design, and real-time analytics. If asked why SAP launched SAP S/4HANA, then the answer would be that it is mainly done to upgrade transactional, analytics and planning systems enabling them to provide faster and quick insights and mobility on analysis at all levels of financial data. S/4HANA Finance is available as both on-premise and cloud versions.SAP S/4HANA Finance 1809
The latest one among all SAP S/4HANA versions is SAP S/4HANA Finance 1809, which is based on the most updated cloud technology and carries the best of functionalities of S/4HANA platform in Financial Management.Now let us know the key Features of SAP S/4HANA Finance.
New GL concept
In New GL client, there is one Leading Ledger for each client which is valid for all company codes. We need to decide and choose which accounting standard should be used for Leading Ledger. The assignment can’t be deactivated once it is defined. Leading Ledger normally follows the same accounting standard which is used to draw up consolidated Financial Statement. Leading ledger is integrated with all subsidiary Ledgers. Non-Leading Ledger is used parallel to Leading Ledger. Just like Leading Ledger, Non-Leading Ledger also must be activated for each company code.Extension Ledger
Extension Ledger (Appendix Ledger) concept was introduced in SFIN 2.0. It is an extension to another ledger that can be used for adjustment or consolidation purposes for closed periods or entries which companies use in Extension Ledger. It reduces the usage of Non-Leading Ledger, however, it cannot be considered as a replacement of Non-Leading Ledger. Extension Ledger is available in S4HANA only, which helps to save space in the database. We can use it avoid duplication of Journal Entries.Cost Element included in Ledger Account
Earlier in ECC, to create Primary Cost Element, it was mandatory to create one GL account which can then be extended as Primary Cost Element under controlling Area. Now in S4 HANA Finance, one GL account can be created directly with the required cost element category.Secondary Cost Element
When there was no direct determination of cost, we had to use the Secondary Cost element for cost allocation. Creation of secondary cost element and posting of transactions always required to be performed within the Controlling Area only. But in S4 HANA Finance, Secondary cost element also is a part of Universal Journal (Finance) and it can be created as General Ledger Master.Business Partner Concept
Now we can create & manage our Customers & Vendors centrally as our Business Partners and assign their roles. For example, customers can be created as a Business Partner (BP) with different roles like FI, Customer, Credit Management or Collection Management etc. Business Partners can be a person, an Organisation, a group of persons, Group of organizations etc.Receivable Management (Credit Management, Collection & Dispute Management)
As per the new simplification list, S4 HANA Finance 1610 the traditional credit control area is not applicable for Accounts Receivable. We have to use the FSCM-Credit Management functions for defining the credit score, credit rating under credit Procedure of Credit Management functionalities.
Cash Management
SAP S/4HANA Finance for cash management enables group treasury or the cash department to manage cash and liquidity centrally. It includes Bank Account Management and Cash Management.A close companion of SAP S/4HANA Finance (Financial Accounting) is SAP Product Costing on HANA (Management Accounting) which if understood and learned with or after SAP S4 HANA Finance makes you a perfect SAP HANA Finance and Controlling consultant enabling you to work on any SAP project having requirement of financial accounting and management accounting applications.
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