SAP Simple Finance HANA, also known as SAP S4 HANA Finance is packed with many new user-friendly features and benefits for its customers, clients and users too. This is to say, it is a complete solution for all business requirements and its users too. With its advanced HANA technology and In-memory database system, it is much easier to use and implement.
Furthermore, its latest integration system helps business owners to keep full control over all of its functions and easy access to all applications from one place.
Before pointing to the key features of SAP S4 HANA Finance, first I briefly elaborate on what is SAP S/4HANA Finance and what are its latest versions.
SAP S/4HANA Finance is the new version of the SAP functional module which includes many new features in addition to earlier ones. To name a few, Universal Journal, streamlined design, and real-time analytics.
It is mainly to upgrade transactional, analytics and planning systems. Thus 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.
The most popular version of S/4HANA is SAP S/4HANA Finance 2022. This works on cloud technology and carries the best functionalities of the S/4HANA platform in Financial Management.
Watch Video: SAP S/4HANA Finance 2022 – Detailed Guide
In SAP 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 we should use for Leading Ledger.
Noteworthy, once we define the assignment, we cannot deactivate them. Leading Ledger normally follows the same accounting standard which is used to draw up consolidated Financial Statements.
The leading ledger is integrated with all subsidiary Ledgers. Non-Leading Ledger is used parallel to Leading Ledger. Just like Leading Ledger, we must activate Non-Leading Ledger also for each company code.
Related Video: Leading & Non-Leading Ledger in SAP
SAP introduced Extension Ledger (Appendix Ledger) concept in SFIN 2.0. It is an extension to another ledger that we can for adjustment or consolidation purposes. We mainly use it for closed periods or entries which companies use in Extension Ledger.
Furthermore, it reduces the usage of a Non-Leading Ledger. However, we cannot consider it as a replacement for a Non-Leading Ledger.
This is to say, Extension Ledger is available in S4HANA only, which helps to save space in the database. We can use it to avoid duplication of Journal Entries.
Earlier in ECC, to create a Primary Cost Element, we mandatorily need to create one GL account which then we can extend as a Primary Cost Element under the controlling Area. However, now in S4 HANA Finance, we can create one GL account directly with the applicable cost element category.
Earlier in the absence of a direct determination of cost, we had to use the Secondary Cost element for cost allocation. We always needed to create a secondary cost element and post transactions within the Controlling Area only.
However, in S4 HANA Finance, the Secondary cost element is a part of Universal Journal (Finance) and hence we can create it as General Ledger Master.
Now we can create & manage our Customers & Vendors centrally as our Business Partners and assign their roles. For example, we can create customers as Business Partners (BP) with different roles. These are FI, Customer, Credit Management Collection Management etc. Further, we can assign these Business Partners as a person, an Organisation, a group of persons, a group of organisations etc.
Related: SAP Business Partner Concept
As per the new simplification list, S4 HANA Finance 1610 the traditional credit control area is not applicable for Accounts Receivable. Thus, we have to use the FSCM-Credit Management functions for defining the credit score, and credit rating under the credit Procedure of Credit Management functionalities.
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 you understand and learn with or after SAP S4 HANA Finance makes you a perfect SAP HANA Finance and Controlling consultant. This is to say, it enables you to work on any SAP project which has a requirement for financial accounting and management accounting applications.
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