sap accounting powered by sap hana – moving controlling and finance closer together

© 2014 ERP Corp. All rights reserved.

SAP Accounting powered

by SAP HANA – Moving

Controlling and Finance

Closer Together

Janet Salmon

SAP AG

Introduction

3

• The vision for SAP Accounting powered by SAP HANA

• SAP Accounting powered by SAP HANA – No More Aggregates

• A Common P&L: Linking FI and CO line items

• Account-based CO-PA:

• Changes to report revenue and cost of goods sold by the CO-

PA dimensions

• Enhancements to provide the necessary detail

• Allocations and Top-Down Distribution:

• How overhead is captured and allocated from cost centers to

CO-PA dimensions

• Top-Down distribution to disaggregate revenues and costs

• Work in Process: New reports and new approaches at period

close

Topics

• SAP Accounting powered by SAP HANA

• Removing Redundancy

• Reducing Reconciliation Effort

• Why Account-Based CO-PA?

• What Happens to the Allocations?

• WIP, Variances, and Results Analysis

• Summary

4

Start of first section:

List the main points in your presentation and insert this slide at

the start of each new topic. Move the highlighted box down for

each new section. This divides your presentation into easy to

follow sections.

One atomic copy of data for

Transactions + Analysis, all in Memory

Eliminate unnecessary complexity and latency

Less hardware to manage

Accelerate through innovation, simplification + in-memory

3 copies of data in different data models

Inherent data latency

Poor innovation leading to wastage

Transactions + Analysis + Acceleration

processes separated

SAP HANA(DRAM)

Transact

ETL

Analyze

ETL

Hasso Plattner and Real-time Business

A Common Database Approach for OLTP and

OLAP Using an In-Memory Column DatabaseHasso Plattner

Accelerate

Cache VS

The Vision for SAP Accounting powered by SAP HANA

One source for financial

and management

accounting

Beautiful user interfaces

Availability on multiple

devices

Line item based and extensible

Not limited by totals or pre-

configuration

Fast and flexible

Beautiful user interfaces

Apps for improved quality

Accelerated month-end closing

processes and postings

Intra-month processes and

simulations

Consolidation methods on the fly

Basis for comprehensive Consolidation

No data replication necessary

* planned

Three Financial Offerings Today

…AnyDB

Client

SAP Business Suite

SAP ERP

Finance

Business Suite

on SAP HANA

SAP HANA DB

SAP Business Suite

BW

SAP HANA DB

ERP Business Suite

Financials Add-On for

SAP Business Suite

powered by SAP HANA

Client

Financials Add-On

BW

Ap

ps

EhP 7 EhP 7

Client

Any DB Based on InMemory Technology (e.g. HANA)

Finance Finance incl.

Accelerators

Apps

Topics






• WIP, Variances and Results Analysis

• Summary

8





follow sections.

Materialized Aggregates (Totals and Index Tables)

Real World

Process

e.g. Invoice

CO

Document

FI

Document

Totals & Indices

Financial Accounting

Totals & Indices

Management Account.

ERP Financials

any classic DB

Financials powered

by HANA

Stability

Processing

Analytics

Real World

Process

e.g. InvoiceCO Document

FI Document

Flexibility

Processing

Totals for

Financial

Accounting

Totals for

Management

Accounting

HANA views on the fly

Pre-Defined Aggregates

Flexibility

Stability

Analytics

http://www.saphana.com/community/blogs/blog/authors/D000002

• Data Redundancy

• Reconciliation Effort

• Minor Flexibility

• Higher Throughput

• Reduced

Reconciliation

• Higher Flexibility

• Reduced Data

Volume

• High Performance

Avoiding Redundancy in FI: Non Disruptive with Equally

Named Views For Previous Total/Index Tables

10

Views Replace DDIC Tables (GLT0)

• ABAP Programs that previously read table GLT0 now select directly from

BSEG

• Back up tables (GLT0_BCK) are used during the migration progress

Avoid Redundancy in CO

• Non-disruptive with equally named views for previous total

tables

Views Replace DDIC Tables (COSP)

• ABAP Programs that previously read table COSP now select directly

from COEP

• Back up tables (COSP_BAK) are used during the migration progress

and for non-redundant data, e.g. commitments

Other Aggregates: Summarization Reports

• Summarization reports are used to summarize values according to hierarchical

structures defined by your organization.

• This makes it possible to analyze values and quantities at higher levels, such

as at plant level

• A summarization hierarchy is used to summarize the values of the following

objects:

• Maintenance and service orders

• Internal orders

• Projects

• Sales orders and their items

• Manufacturing orders, QM orders, and PCC

Summarization: Before and After

Goal: Remove VD* objects from tables Goal: Aggregate along hierarchy on the fly

Topics







• Summary

16





follow sections.

Reducing Reconciliation: Logical Document

Balance Sheet

Accounts

Profit and Loss

Accounts

e.g. Payroll, COGS,

Revenue

Primary Cost

Elements

e.g. Payroll by Cost Center,

COGS & Revenue by CO-

PA Dimensions

Secondary Cost

Elements e.g. profit center boundaries

are crossed

One to one link

by line item

Secondary Cost

Elementse.g. no change to profit

centers

Real Time Integration

Accounts

Account

extended by

CO

dimension(s)

Different

account

granularity

Switch in

account

structure

Harmonized Internal and External Reporting SAP ERP Financials – Postings to FI and CO

Management

Accounting

Cost and revenue relevant postings create line items for P&L accounts in FI and cost elements in CO. FI line items

are often aggregated compared to CO line items. Even if posted with the same granularity, there is no link on

line-item level. This makes reconciliation of FI versus CO difficult. FI and CO documents are only linked on header

level.

MM SD HRPP

Header Table

COEP

COBK

Line Item

Table

CO line item nr. 123

Cost element: 400000 100 DR

Cost center: A

BKPF

BSEG

FI line item nr. 10

Vendor: 4711 100 CR

Cost account: 400000 100 DR -

Header Table

Line Item Table

Financial

Accounting

MM = Material Mgmt

SD = Sales & Distribution

PP = Production Planning

HR = Human Resources

No link

between

FI and

CO line

items in

SAP ERP

1:1

With SAP Accounting powered by SAP HANA, the FI and CO line items are stored on the same level of

granularity and are linked 1:1. This facilitates an easy reconciliation and drill-down to full detail in reporting.

MM SD HRPP

Header Table

COEP

COBK

Line Item

Table


Cost element: 400000 100 DR

Cost center: A

BKPF

BSEG

FI line item nr. 10

Vendor: 4711 100 CR

Cost account: 400000 100 DR

Header Table

Line Item Table

Management

Accounting

Financial

Accounting

NEW

1:1

1:1

Same

granularity

of line items

and 1:1 link

in Smart

Accounting

Harmonized Internal and External Reporting SAP Accounting powered by SAP HANA – Postings to FI and CO

Extensions to the CO Line Item Table (1)

• COEP line items contain a link to the source line item in FI (profit and loss

items) or to the real-time integration postings in FI

MM SD HRPP

Header Table

COEP

COBK

Line Item

Table


Cost element: 800000 100 CR

CO-PA Object No. 4711

BKPF

BSEG

FI line item nr. 10

Receivables 100 DR

Revenues (acc. 800000) 100 CR

Header Table

Line Item Table

Management

Accounting

Financial

Accounting

NEW

CE4xxxxAccount-based

Profitability

Analysis (CO-PA)

CO-PA Object number:

4711

Material: F-01

Material group: FERT

Sales org.: S001

NEW

Each CO line

item for primary

postings

includes a

consistent

object number

from CO-PA

for improved

multi-dimensional

P&L reporting.

Harmonized Internal and External ReportingSAP Accounting powered by SAP HANA – CO and Account-Based CO-PA

Extensions to the CO Line Item Table (2)

• COEP line items contain a link to the CE4 table where the CO-PA

dimensions are stored.

• COEP line items break out the CO object number by account assigment

for easier reporting.

Reporting – Architectural Overview

HANA Views on Financials Logical Document

BSEG/

BKPF

COEP/

COBKCE4SFIN

Crystal

Reports

Analysis

Office

Fiori

Apps. . .

Financials Logical Document

Reporting Interfaces

Embedded BW (queries)

Master

Data

Sample Report: Income Statement

Topics







• Summary

25





follow sections.

Types of Profitability Analysis

26

• Profitability Analysis prior to SAP Accounting powered by SAP

HANA

Costing-Based

Value Fields

Revenue 1,000,000

Sales Deductions 100,000

------------

Net Revenue 900,000

Variable Mat. Costs 400,000

Variable Prod. Costs 190,000

Production Variances 10,000

------------

Contribution Margin 1 300,000

Material Overhead 50,000

Production Overhead 50,000


Res & Development 10,000

Marketing Costs 50,000

Administrative Costs 40,000

------------


Account-Based

Cost/Revenue Elements

800000 Revenue 1,000,000

808000 Sales Deductions 100,000

----------

Net Revenue 900,000

893000 Cost of Goods Sold 690,000

231000 Price Difference Account 10,000

651000 R & D Costs 10,000

671000 Marketing Costs 50,000

655000 Administrative Costs 40,000

----------

Operating Profit 100,000

Changes to Cost of Goods Sold, Variances & CO-PA

Quantities

Cost of Goods Sold posting >

Split by Cost Components

Variance Posting >

Split by Variance Category

Additional Quantities

with BAdI Logic

Split of COGS Based on Standard Cost Components

• Result in FI/CO (delivery quantity 1 pc) Costing:

• CO document incl. split in fix:

2

8

Multiple Quantity Fields in the Line Item Tables

• Quantity settings:

• Three new fields in COEP -> BADI for populating fields

2

9

Split of Price Differences Using Variance Categories

• Variances (delivery with SP3):

• account 1

• account 2

Standard posting would be: New posting logic with

CO-PA Object:

3

0

GBB AUA

100

PRD PRF

100

GBB AUA

100

PRD PRF

100

Link each line to

one account

Account 1

70

Account 2

30

Topics







• Summary

31





follow sections.

Assessment Cycles in Account-Based CO-PA

2 = account-based

Amount field used in

combination with cost

elements on sender tab

Top-Down Distribution in Account-Based CO-PA

33

Top-down distribution in account-based CO-PA has been available since 4.7

Amount field used in

combination with cost

elements in selection criteria

Topics







• Summary

34





follow sections.

SAP Accounting powered by SAP HANA - WIP Analysis

• Work in Progress (WIP)

• WIP positions are now available with a higher granularity that shows the

underlying primary and secondary costs

• The analysis is achieved by linking GL WIP line items with settlement line

items via the order number in the GL line item.

Select orders data

Loop each orders

Endloop

UI display

ABAP

Select valid orders

Do aggregation

Do calculation

DB update

UI display

ABAP

Select valid orders HANA

Select orders data

Do aggregation for

all orders

Old Code Pushdown

Loop aggregated data

Endloop

Do calculation

DB update

Period Close Processing

Code Pushdown ApproachResults Analysis for Sales Orders

KKAK KKAKH

Optimized Period Close Transactions

38

• Settlement (plant selection) CO88 -> CO88H

• Settlement (make-to-order sales orders) VA88-> VA88H

• Settlement (internal orders) KO8G-> KO8GH

• Settlement (projects) CJ8G -> CJ8GH

• Results Analysis KKAK -> KKAKH

(POC method or revenue-based)

• WIP Calculation at Actual Costs KKAO -> KKAOH

• Variance Calculation w. Full Settlement KKS1-> KKS1H

• Variance Calculation for Cost Centers KSS1-> KSS1H

Topics







• Summary

39





follow sections.

Resources

• SAP Accounting powered by SAP HANA - Frequently Asked

Questions Blog Post

• http://www.erpcorp.com/sap-controlling-blog/entry/sap-

accounting-powered-by-sap-hana-frequently-asked-questions

• Janet Salmon, Controlling with SAP – Practical Guide

• ISBN-10: 978-1-4932-1012-1

• https://www.sap-press.com/controlling-with-sap-practical-

guide_3625/

• Janet Salmon and Ulrich Schlueter, SAP HANA for ERP Financials

• ISBN: 978-3-943546-97-2

• http://shop.espresso-tutorials.com/Gedruckte-SAP-Buecher/SAP-

HANA-fuer-ERP-Financials-2-Auflage::35.html

• http://help.sap.com/sfin100

40

Five Key Ideas

• SAP Accounting powered by SAP HANA is a new product with a

new code line designed specifically for use with SAP HANA

• General availability began on August 1, 2014

• SAP Accounting powered by SAP HANA uses the line items

instead of the totals tables, allowing for faster updates and

removing redundancy

• SAP Accounting powered by SAP HANA links the FI line items

with the CO line items to give a complete profit and loss

statement containing all relevant reporting dimensions

41

Five Key Ideas (cont.)

• SAP Accounting powered by SAP HANA focuses on account-

based CO-PA for reconcilability, but you can continue to use

costing-based CO-PA to meet other business requirements

• SAP Accounting powered by SAP HANA significantly improves

the period close by offering new transactions for settlement,

WIP calculation, variance calculation, and results analysis

42

Questions

• Now:

• Ask questions now for immediate answers

• Later:

• [email protected]

43

Q&A

Disclaimer

SAP®, R/3, mySAP, mySAP.com, xApps, xApp, SAP NetWeaver®, Duet®, PartnerEdge, and other SAP® products and

services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in

Germany and in several other countries all over the world. All other product and service names mentioned are the

trademarks of their respective companies. ERP Corp is neither owned nor controlled by SAP.

sap accounting powered by sap hana – moving controlling and finance closer together

Technology

b 128introduction3the

session title r

data sciences

preprocessing of data

memory3 copies of data

business data of enterprises

sap hanasap accounting

atomic copy of data