Preface

17

Who This Book Is For

17

How This Book Is Organized

17

Acknowledgments

20

Conclusion

20

1 Introduction to SAP S/4HANA

21

1.1 Deployment Models

21

1.1.1 On-Premise SAP S/4HANA

21

1.1.2 SAP S/4HANA Cloud

22

1.1.3 Hybrid Models

23

1.2 Universal Journal

24

1.2.1 Single Source of Truth

25

1.2.2 One Database and One Data Model for Accounting

26

1.2.3 Enhanced Reporting

27

1.3 Simplifications

29

1.3.1 Minimized Reconciliations

29

1.3.2 Extension Ledger versus Special Ledger

30

1.3.3 Simplified Period-End Close

31

1.3.4 Management Accounting Integration

33

1.4 User Interfaces

35

1.4.1 SAP GUI

35

1.4.2 Web GUI

36

1.4.3 SAP Fiori

37

1.5 Summary

41

2 Organizational Structure and Integration

43

2.1 Standard Financial Accounting Processes

43

2.1.1 Value Chain Overview

44

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

48

2.2 Organizational Elements of Financial Accounting

49

2.2.1 Organizational Structures

50

2.2.2 Cross-Application Organizational Assignments

60

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

75

2.3.3 Interface Configuration

77

2.3.4 Intercompany Management Accounting Postings

85

2.4 Summary

87

3 General Ledger Accounting

89

3.1 Record-to-Report

89

3.1.1 Subledger Closing

90

3.1.2 Reconciliations

92

3.1.3 Record and Adjust

96

3.1.4 Period Control

96

3.1.5 Reporting and Analysis

97

3.2 General Ledger Master Data

99

3.2.1 Master Data Structure

99

3.2.2 General Ledger Accounts

101

3.2.3 Chart of Accounts

106

3.2.4 Financial Statements

109

3.3 General Ledger Posting Documents

114

3.3.1 Journal Document Entry

114

3.3.2 Post, Park, and Hold

121

3.3.3 Recurring Documents

128

3.3.4 Post with References

136

3.3.5 Post with Clearing

143

3.4 Resetting and Reversing Documents

149

3.4.1 Reversing Nonclearing Documents

149

3.4.2 Reversing Clearing Documents

154

3.5 Bank Accounting

158

3.5.1 Bank Master Data

158

3.5.2 General Ledger Integration

166

3.5.3 Bank Reconciliation

168

3.6 General Ledger Period-End Closing

175

3.6.1 Opening and Closing Periods

175

3.6.2 Subledger Reconciliation

177

3.6.3 Foreign Currency Valuation

182

3.6.4 Goods Receipt/Invoice Receipt Clearing

184

3.6.5 Balance Carryforward

187

3.7 General Ledger Reporting

189

3.7.1 Accounts Inquiry

190

3.7.2 Trial Balance

193

3.7.3 Display General Ledger Account Line Items

198

3.7.4 Financial Statement

201

3.7.5 Compact Document Journal

203

3.8 Summary

205

4 Accounts Payable

207

4.1 Purchase-to-Pay

208

4.1.1 Purchase Requisition

208

4.1.2 Purchase Order

212

4.1.3 Goods Receipt

215

4.1.4 Invoice Receipt

218

4.1.5 Invoice Payment and Vendor Checking Balances

224

4.2 Vendor Accounts

228

4.2.1 Vendor General Data

229

4.2.2 Vendor Company Code Data

235

4.3 Vendor Invoices

239

4.3.1 Automatic Creation of Vendor Invoices (from Logistics)

239

4.3.2 Direct Invoices

242

4.4 Outgoing Payments

247

4.4.1 Manual Payment

248

4.4.2 Automatic Payment Program

254

4.5 Process Exceptions

267

4.5.1 Credit Memos

267

4.5.2 Down Payments Sent

269

4.6 Accounts Payable Period-End Closing

275

4.6.1 Opening and Closing Periods

275

4.6.2 Foreign Currency Valuation

278

4.6.3 Goods Receipt/Invoice Receipt Clearing

280

4.6.4 Automatic Open Item Clearing

283

4.6.5 Reclassification Run

286

4.6.6 Accounts Payable Reconciliations

292

4.7 Accounts Payable Reporting

301

4.7.1 Accounts Inquiry

302

4.7.2 Accounts Balance Report

305

4.7.3 Open Item List

310

4.8 Summary

313

5 Accounts Receivable

315

5.1 Order-to-Cash Process

316

5.1.1 Sales Order

316

5.1.2 Outbound Delivery

321

5.1.3 Billing Documents

324

5.2 Customer Accounts

328

5.2.1 Customer General Data

329

5.2.2 Customer Company Code Data

334

5.3 Customer Invoices

337

5.3.1 Automatic Creation of Customer Invoice (from Logistics)

337

5.3.2 Direct Customer Invoices

339

5.4 Customer Payments

342

5.4.1 Manual Bank Statements

343

5.4.2 Electronic Bank Statements

349

5.5 Process Exceptions

353

5.5.1 Credit Memos

353

5.5.2 Down Payments Received

360

5.6 Dunning

363

5.6.1 Automated Dunning Process

364

5.6.2 Manual Dunning Letters

367

5.7 Credit Management

368

5.7.1 Credit Master Data and Credit Limits

369

5.7.2 Simple Credit Check

374

5.7.3 Automated Credit Check

375

5.8 Accounts Receivable Period-End Closing

375

5.8.1 Foreign Currency Valuation

376

5.8.2 Billing Due Lists

378

5.8.3 Reclassification Run

383

5.8.4 Accounts Receivable Reconciliations

390

5.9 Accounts Receivable Reporting

405

5.9.1 Accounts Inquiry

405

5.9.2 Account Balances Report

412

5.9.3 Open Items List

414

5.9.4 Aging List

417

5.10 Summary

421

6 Fixed Asset Accounting

423

6.1 Acquire-to-Retire Process

424

6.1.1 Acquisition of Long-Lived Assets

424

6.1.2 Capitalization/Activation

425

6.1.3 Depreciation

426

6.1.4 Retirement/Scrapping

427

6.2 Fixed Asset Accounts and Master Data

429

6.2.1 Asset Creation

429

6.2.2 Asset Classes

434

6.2.3 Account Determination

437

6.2.4 Depreciation Key

441

6.2.5 Depreciation Area

447

6.2.6 Chart of Depreciation and Ledger Assignment

451

6.3 Fixed Asset Explorer

453

6.3.1 Planning

453

6.3.2 Actuals

456

6.3.3 Master Data

460

6.4 Asset Transactions

462

6.4.1 Acquisition/Integration to Vendor Invoice

463

6.4.2 Standard Depreciation

466

6.4.3 Impairment (Value Adjustment)

470

6.4.4 Transfers

474

6.4.5 Retirements/Disposals

478

6.5 Fixed Assets Period-End Closing

485

6.5.1 Change Fiscal Year

485

6.5.2 Depreciation Run

491

6.5.3 Closing Periods

494

6.5.4 Fixed Assets Reconciliations

496

6.6 Fixed Assets Reporting

503

6.6.1 Fixed Assets History Sheet

504

6.6.2 Acquisitions List

506

6.6.3 Depreciation Lists

509

6.6.4 Disposals

512

6.7 Summary

515

7 Customer Project Accounting

517

7.1 Customer Project Scenario in SAP S/4HANA Cloud

518

7.1.1 Financial Accounting Innovations

518

7.1.2 Simplified Customer Project Contract Setup

521

7.1.3 Customer Project Setup Overview

527

7.1.4 Customer Project Business Transactions

529

7.1.5 Financial Reporting Insights

546

7.2 Event-Based Revenue Recognition

554

7.2.1 Purpose of Event-Based Revenue Recognition

554

7.2.2 Principles of Event-Based Revenue Recognition

555

7.2.3 Activation and Configuration

563

7.2.4 Revenue Recognition Apps

568

7.2.5 Supported Contract Types and Realization Methods

573

7.2.6 IFRS 15 Capabilities

576

7.2.7 Supported Management Accounting Features

581

7.2.8 Availability of Event-Based Revenue Recognition in SAP S/4HANA

582

7.3 Simplified Period-End Close

582

7.4 Summary

584