sap accounting powered by sap hana – moving controlling and finance closer together
DESCRIPTION
New users have traditionally struggled to understand the way SAP separates Financial Accounting and Management Accounting where most legacy systems see the two as one. While it’s easy enough to understand how a payroll account flows from the profit and loss statement into cost center accounting because the account information stays the same, the situation becomes more challenging as a revenue account flows into profitability analysis and is transformed into a value field, or a cost of goods sold account becomes multiple value fields depending on the cost components involved. In its latest product release, SAP is bringing the two worlds closer together. In this session we’ll look at how SAP is addressing these issues with its new product SAP Accounting powered by SAP HANA, part of SAP Simple Finance. This presentation will delve into how the requirements for internal and external reporting are converging and how this convergence impacts SAP Controlling. This session will cover: *Changes to report revenue and cost of goods sold by the CO-PA dimensions and how break out the cost of goods sold into multiple accounts *How overhead is captured and allocated either from cost centers to CO-PA dimensions (assessment) or from high-level to lower-level CO-PA dimensions (top-down distribution) *The underlying architecture and how FI and CO line items are linked. *New reports that visualize the transformation of expense into cost of goods sold, work in process, and assets under construction *How the period close process has been accelerated in SAP Controlling Get a sneak peak at the first planning applications that allow you to plan costs according to the new paradigm of SAP Simple Finance, where the account is the leading dimension for all accounting activities.TRANSCRIPT
© 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:
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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
• 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
8
Start of first section:
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the start of each new topic. Move the highlighted box down for
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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
• 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
16
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the start of each new topic. Move the highlighted box down for
each new section. This divides your presentation into easy to
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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
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
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
CO line item nr. 123
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
• 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
25
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.
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
Contribution Margin 2 200,000
Res & Development 10,000
Marketing Costs 50,000
Administrative Costs 40,000
------------
Contribution Margin 3 100,000
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
• 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
31
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.
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
• 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
34
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.
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
• 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
39
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.
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
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.