Key New Functionalities in S/4HANA Cloud 1805 for Finance

[Shakeel_Ahmed]

# Overview

Recently on 9th May 2018 at Mumbai-India, S/4HANA Cloud 1805 has been released loaded with bundle of new functionalities and many improvement/changes to the existing functionalities. In this blog we would focus only on key new functionalities in S4HC 1805 for Finance.

Note: My contribution is very little in this blog, it is just that I keep reading new things and I came across this so putting it here with some value addition. All this information are available on SAP site as well.

 

# Key New Functionalities in S/4HANA Cloud 1805

 

Service Interfaces for SAP S/4HANA Cloud:

• Payment Advice – Send

The Payment Advice – Send service enables you to send payment advices with the data provided in a payload to the payment recipient. It is based on the SOAP protocol.

This service is also available in the SAP API Business Hub (https://api.sap.com ).

• Payment Advice Cancellation – Send

The Payment Advice Cancellation – Send service enables you to send a cancellation of an already sent payment advice with the data provided in a payload to the payment recipient. It is based on the SOAP protocol.

This service is also available in the SAP API Business Hub (https://api.sap.com )

• Payment Advice – Create

The Payment Advice – Create service enables you to create payment advices with the data provided in a payload. It is based on the SOAP protocol.

This service is also available in the SAP API Business Hub (https://api.sap.com ).

• Payment Advice – Cancel

The Payment Advice – Cancel service enables you to cancel payment advices that are already created in the system. It is based on the SOAP protocol.

This service is also available in the SAP API Business Hub (https://api.sap.com )

• Bank Statement – Post

The Bank Statement - Post service allows you to post bank statements with the data provided in a payload. It is based on the SOAP protocol and can be consumed in Fiori apps and on other user interfaces.

This service is also available in the SAP API Business Hub (https://api.sap.com )

• Replicate Profit Center Master Data

The Replicate Profit Center Master Data service enables you to replicate profit center master data from one system to another. The service is based on the Data Replication Framework and SOAP message

This service is also available in the SAP API Business Hub (https://api.sap.com )

• Manage Reported Financial Data in Bulk for Consolidation

The Manage Reported Financial Data in Bulk for Consolidation service allows you to import the reported financial

data of multiple consolidation units from the client system to SAP S/4HANA Cloud. It is based on the SOAP protocol.

This service is available in the SAP API Business Hub (https://api.sap.com )

• Send Confirmation for Reported Financial Data for Consolidation

The Send Confirmation for Reported Financial Data for Consolidation service allows you to receive the confirmation

sent from SAP S/4HANA Cloud to your client system, about the status of the reported financial data imported through the API call Manage Reported Financial Data in Bulk for Consolidation. The confirmation

includes information such as whether or not the import is successful or if any of the data contains errors. It is based on the SOAP protocol.

This service is available in the SAP API Business Hub (https://api.sap.com )

 

Financial Planning and Analysis

 

• Sales Accounting Overview

With this app you can easily access key information and KPIs within the Sales Accounting area, and gain insight into current trends. The app provides a central source of information for the sales accountant, and offers a range of filters and built-in navigation to related apps. Key Features:Incoming Sales Orders Shows sales order revenue for the specified period, with a selection of display options.

1. Incoming Sales Orders - Chart Chart showing either sales order revenue, or the number of orders, over a six-month period.


2. Sales Revenue Benchmark Chart showing actual / plan / previous year data by industry, material group, and so on.


3. Monthly Sales Revenue Actual / plan, or actual / previous year sales revenue data.


4. Sales Volume per Material Shows top 10 material types by difference (actual / plan or actual / previous year).

 

This app uses the semantic tags Billed Revenue and Recognized Revenue.

 

• Manage Cost Rates - Professional Services

 

With this app you maintain cost rates for services provided in a professional services environment. Different

attributes are available on which the cost rates can be based, allowing you to configure the rates to meet your particular requirements. You can define cost rates not only for cost centers and activity types but also for employee grade levels or even individual employees. Thus the cost rates can be based on the service provided or on the employee providing the service. You can also define cost rates for specific work items, which allows you to have different rates for specific activities performed by an employee, such as project management, training, or demonstrations.

 

You can define cost rates for the following fields:

1. Receiving Company


2. Cost Center


3. Activity Type


4. Service Cost Level


5. Employee Name


6. Work Item ID


7. WBS Element You can also define intercompany cost rates.

 

This app replaces the Maintain Activity Cost Rates app.

 

 

• Production Cost Analysis - New Data Structure and Calculation Logic

From SAP S/4 HANA Cloud 1805, Production Cost Analysis is enhanced based on a new data structure and a new calculation logic. The enhancements are as follows:

1. Supports a 'make to order' scenario. Sales Order - the new filter criteria, helps you understand which manufacturing order produces products for a specific sales order.


2. Introduces Category as a new filter criteria to distinguish target cost at plan cost and target cost at standard cost for manufacturing orders.


3. For CO Production Order (order category 04) and Product Cost Collector (order category 05), target cost is calculated the same as the classic solution, target cost version is still used in the backend. However, Category is used for Product Cost Collector and CO Production Order instead of target cost version, namely: Manufacturing Order Plan Cost (PLANORD01) =Target cost version 1 Manufacturing Order Standard Cost (PLANORD02) = Target cost version 0 There is no other additional target cost version supported in S/4 HANA Cloud 1805.


4. Enhances target cost at work center/operation level in Work Center View.


5. Shows Order Standard Cost in reporting.

 

• Object Currency in Report "Projects - Baseline/EAC/ Ongoing"

All key figures of this report are now available also in object currency.

 

Accounting and Financial Close

• Configuration for General Ledger Accounting

Configuration Area	New configuration step	What you can do
Organizational Structure	Assign Company Code to Company	Assign company codes to companies for consolidation.
Posting	Edit Constant for Non-assigned Processes	Define account assignment assignments for line items during processes when you can’t derive account assignments, for example, when a journal entry has been posted
Posting	Define Document Types	Define document types for posting journal entries.
Posting	Define Document Types in a Ledger	Assign number ranges to document types for non-leading ledgers.
Valuation	Define Valuation Methods	Define valuation methods that determine how foreign currency valuation is performed in financial closing operations
Valuation	Define Valuation Areas	Define valuation areas for financial closing operations.
Valuation	Assign Valuation Area to Accounting Principles	Assign desired accounting principles to valuation areas.
Tax	Define Foreign VAT Registration Numbers	Enter the local VAT numbers that you received when you registered your business with other European Union countries
Tax	Assign Country to Calculation procedure	Maintain keys of calculation procedures for each country.

• Reconcile GR/IR Accounts

With this app, you can reconcile your GR/IR (Goods Receipt/Invoice Receipt) accounts. The app supports you in reducing open items and thus prevent write-offs and enables you to spot issues early on. The app enables you to monitor the GR/IR reconciliation processing continuously. Issues are then solved regularly which prevents that you end up with a lot of issues to be solved in a very short time frame.

You can create a worklist of purchasing document items with differing amounts or quantities in goods receipts and invoice receipts, and thus open items on GR/IR accounts. You can request changes for those purchase order items with open items in Financial Accounting (FI), for example request the completion of delivery or the correction of the invoice. The sequence of steps taken solves the issues.

Note: To use the app, you need a separate subscription license. For further information, please contact your SAP Account Executive.

 

• Monitor GR/IR Account Reconciliation

With this app, you can get an overview over GR/IR (Goods Receipts/Invoice Receipts) account reconciliation processing. For purchasing document items, such as purchase order items or delivery notes, and open FI items different Key Performance Indicators (KPIs) are displayed.

To analyze the business situation for purchase order items with amounts or quantities that do not match in goods and invoice receipts, the following KPIs are displayed:

1. Number of purchase order items with

Amount surplus in goods receipts

Amount surplus in invoice receipts

Amount match but difference in quantities

Grouping by processor, status and other criteria

1. Number of open FI items with

Grouping by company code

Grouping by posting date

Grouping by supplier

Grouping by dimension, such as controlling area or profit center

 

• Period-Based Trial Balance

You can change the calculation for the trial balance. You have two options for displaying the trial balance. You can either display it period-based or day-based. As default the trial balance is calculated period-based, as with this option the trial balance is calculated faster. You can change the calculation by choosing the respective setting in the Me Area on the launchpad.

 

• Automatic Account Determination

You can use the app to configure G/L account assignments. New processes and transaction keys in the financial accounting area have been newly added

 

See the following new processes and transaction keys with descriptions:

• Prepare Intercompany Transactions

BUV (Clearing between Company Codes)

• Discount Long-term Receivables, Payables, and Provisions

B03 (Flat-rate Individual Value Adjustment)

 

 

Consolidation

 

• CDS Views for Consolidation

The following CDS (Core Data Services) views for Consolidation have now been released. You can use them to provide access to the details of group journal entries that are not consolidated or to group reporting data that has the consolidation logic or reporting rules applied.

1. I_ConsolidationJournalEntryC (Group Journal Entries Cube)


2. I_ConsolidationGroupReportC (Group Report Data Cube)


3. I_ConsolidationGroupRptEnhcdC (Enhanced Group Report Data Cube)

 

 

• Import Group Journal Entries

 

With this app, you can post multiple manual journal entries into the system all at once, to adjust the reported financial data, standardizing entries, and consolidation entries to the requirements of the group. Depending on the posting type (unit-dependent adjustments, two-sided elimination, or group-dependent adjustments), you download a template file that contains the relevant fields to make the postings, enter the required information, and upload the completed file back to the app. The data is verified and updated in the database.

 

VAT Report

• Generic VAT Report

A new report definition has been provided to enable you to configure generic VAT reports for your country or company-specific requirements. After you configure your report, you can run it using the Run Compliance Reports app

 

The report calculates and displays summary data for your VAT liabilities. You can view the input and output VAT calculated at a tax code, tax rate, document and company code level.

 

 

To run the report, you first need to assign the report definition ADV_VAT_RET to a report category using the Define

 

Compliance Reports app. After this, you need to set the report-specific parameters in the Setting Up Your Compliance Reporting configuration step.

 

 

Treasury Management

 

Cash and Liquidity Management

 

• Cash Flow Comparison - Actual/Forecast

With this app, you can compare the actual cash flows with the forecasted cash flows on a specified value date. In addition, if you switch on the snapshot functionality, you can also compare different versions of the forecasted cash flows at different snapshot time with the actual cash flows. The cash flow data can be presented on a daily, weekly or monthly basis.

 

• Manage Cash Pools

With this app, you can manage cash pools centrally that aggregate the amounts of all the assigned bank accounts. The cash pools can later be used in pooling cash between the assigned header accounts and subaccounts. This cash pooling feature can help your company to improve its liquidity management.

 

• Manage Cash Concentration

With this app, you can initiate an immediate cash concentration with an automatic simulation process of cash movement from the assigned subaccounts to the header accounts. This feature allows your company to manage cash balances centrally, and thus improve the efficiency of cash management.

 

• Cash Pool Transfer Report

With this app, you can get a daily report of cash transfers in a cash pool. You can then track the concentration amounts between header accounts and subaccounts in a specified period of time.

 

• Maintain Cash Pools in Bank Account Master Data

With this feature, you can maintain bank account and other related information for the cash pools in the bank account master data after the cash pools are defined in the Manage Cash Pools app.

 

• Bank Correspondence

With this feature, Email or PDF correspondence letters can be automatically generated when bank accounts are set to closed and when payment signatories are updated in the system.

 

• Data Management in Cash and Liquidity Management

This feature enables you manage the personal data in a simplified way in Cash and Liquidity Management.

1. With the end of purpose (EoP) check FIN_FSCM_CLM_BAM, you can determine whether business partner data is still relevant for business activities in Bank Account Management.


2. With the end of purpose (EoP) check FQM, you can determine whether business partner data is still relevant for One Exposure from Operations.


3. With the destruction object BAM_AMD, you can destroy the bank account contact person data, namely the general contacts and the bank relationship managers that are maintained in the bank account master data.


4. With the destruction object FQM_FLOW, you can destroy personal-related data that are stored in One Exposure from Operations.

 

Treasury and Risk Management

 

• TRM, Enhancements to Hedge Management and Accounting of Net Open Exposures (FX Risk)

With this feature, the Hedge Management and Accounting of Net Open Exposures (FX Risk) process was enhanced. You can now initialize existing hedging relationships already posted in FI according to IAS39 by transferring them to the new standard - IFRS9. Collar FX Options and FX Swaps are now supported as hedging instruments. In an overhedge situation, you can create hedge requests using the Hedge Management Cockpit app.

 

• TRM, Interest Rate Overview

With this app, you can display an overview of interest rate related financial risks including current interest rate, historic interest rate, and yield curves, at a selected key date. You can also get an overview of debt and investment related financial risks, including maturity profile, total debts and investments by key date, as well as debt and investment by interest category and reference interest rate.

 

• TRM, Define Determination Rules - Account Assignment References

With this app, you can define rules for the automatic determination of account assignment references for parallel valuation areas. You define the rules for each product group and subledger position to be able to make postings to a position.

• TRM, Netting of Financial Transactions

The Netting apps allow you to group together transactions to pay them collectively. It is used to simplify payment processing.

• TRM, New Configuration Steps

Several self-service configuration steps for making settings related to Treasury and Risk Management have been added to the Manage Your Solution app. Make your entries in the Configure Your Solution app, which is part of the Manage Your Solution app. In the Realize phase, make changes to predelivered configuration settings or create new settings if needed. It is possible to create new settings by copying existing settings and adapting them.

 

• TRM, New Apps

This feature enables you to use the following new apps: Create Collar FX Option, Create Netting, Change Netting, Display Netting, Undo Netting, Display Netting Proposals, Create Reference, Change Reference, Display Reference,

Undo Reference, Define Fixing References, Define Determination Rules - Account Assignment References, Interest Rate Overview, Change Day Ref. Date of Snapshot, Initialize Hedging Classification, and Initialize Hedging Relationships

 

Financial Operations

Receivables Management

• Configuration for Credit Management

 

With this release, the Manage Your Solution app has new configuration steps for making settings related to SAP Credit Management.

• Configuration for Dispute Management

With this release, the Manage Your Solution app has a new configuration step for making settings related to SAP Dispute Management. This configuration step replaces an already existing step.

• Configuration for Collections Management

With this release, the Manage Your Solution app has new configuration steps for making settings related to SAP Collections Management.

• Configuration for Dunning

With this release, the Manage Your Solution app has new configuration steps for making settings related to Dunning. These configuration steps replace already existing steps.

• Import from Spreadsheet

With this release, the Manage Bank Statements app has a new feature that allows you to import bank statement items from a spreadsheet.

 

• Open on Key Date

The Future Receivables, Overdue Receivables, and Total Receivables apps now support an Open on Key Date feature. This feature allows you to analyze your receivables for any given key date. To define key dates in addition to the key dates delivered standard by SAP, you must be assigned a role that has the same minimum authorization and business catalogs as the Analytics Specialist (SAP_BR_ANALYTICS_SPECIALIST) business template role. Users with these authorizations can then define key dates that allow you to generate reports according to your reporting and analytics needs.

 

• Skill: Manage Bank Statements

This skill allows you to query and update bank statement items using SAP CoPilot. You can simply say or type your query to see an overview of your bank statements fitting that query. Or you can update your bank statement items using SAP CoPilot.

 

• Cash Collection Tracker - Collections Management

With this feature you can track your collection progress against due receivables for a selected period. You select a period or date and the app displays the sums of all open invoices due in previous periods, invoices posted in previous periods that are due in the selected period, and new invoices that are both posted and due in the selected period. The sum of these due receivables forms the total target

 

Invoice Management

• Configuration for Invoice Management

With this release, the Configure Your Solution app has new configuration steps for making settings related to Invoice Management.

• Open on Key Date

The Aging Analysis, Overdue Payables, and Future Payables apps now support an Open on Key Date feature. This feature allows you to define key dates in addition to the key dates delivered standard by SAP. To define key dates, you must be assigned a role that has the same minimum authorization and business catalogs as the Analytics Specialist (SAP_BR_ANALYTICS_SPECIALIST) business template role. Users with these authorizations can then define key dates that allow you to generate reports according to your reporting and analytics needs.

 

Settlement Management

 

• Manage Settlement Documents

This feature enables you to filter and search for your settlement documents. In addition, you can navigate to the documents and display and analyze them

 

• Enterprise Search Enablement for Condition Contracts

With this feature you can search for condition contracts directly from the SAP Fiori Launchpad with user-defined

search criteria. The search also provides fuzzy search capabilities.

 

• Self-Service Configuration for Sales Rebate Condition Contract Types

With this feature you can change delivered condition contract types and create custom condition contract types based on SAP standard content for sales rebates processing. You can also assign a critical change group for sales

rebate condition contract types to control whether the system automatically generates settlement calendar entries for an accruals update.

 

• Condition Contract Type Blocking

With this feature you can block condition contract types for further use when you are using self-service configuration. Blocked condition contract types cannot be used for contract creation whereas condition contracts of the specific types can still be found and processed.

 

SAP Best Practices Content

 

• Event-Based Revenue Recognition - Sell from Stock

The scope item now includes the following: Free of charge or zero-priced items are now supported for bundling in the context of IFRS 15

• Classification for Customs Tariff Number and Commodity Code

This scope item provides the ability to manage tariff codes and commodity codes and their assignment to products.

 

Configuration settings can be edited or enhanced in configuration apps. To find out more about changed or new configuration apps for this scope item, you can refer to the following overview .

 

• Inter-company Financial Posting and Payment on Behalf – Domestic

The scope item now includes the following: Using the Account Determination SCCUI app, you can set clearing accounts between company codes.

• Electronic Payment Advice Integration

The scope item now includes the following:

1. Payment Advice Notification (Inbound message)


2. Payment Advice Cancellation Notification (Inbound message)

 

• Bank Connectivity via APIs

This scope item provides API connectivity between SAP S/4HANA Cloud and banks.

 

• Key Risk Indicator Monitoring

This scope item integrates SAP Risk Management with SAP S/4HANA Cloud to support risk monitoring across the enterprise.

• Inter-company Process for Cash Concentration

This scope item enables the customer to transfer funds from diverse accounts into a central account to improve the efficiency of cash management

• Consolidation Integration with SAP S/4HANA Cloud

This scope item enables the integration between SAP S/4HANA Cloud Consolidation and the external systems.

• Contract Accounting: Open Item Management

In this scope item, you handle open item management for contract accounting.

(Germany, United States of America)

 

• Monitoring of Goods and Invoice Receipts

The Goods Receipt/Invoice Receipt Monitor is a tool to make status proposals depending on a specific PO item's situation. The service can be used standalone or seamlessly integrated in the GR/IR Monitor.

(Germany, United States of America)

• Machine Learning for Monitoring of Goods and Invoice Receipts

Machine Learning using SAP Cloud Platform can be used to expand the functionality of the SAP Goods Receipt/ Invoice Receipt Monitor used with SAP S/4HANA. This scope item addresses the set up and configuration of machine learning for the GR/IR Monitor.

(Germany, United States of America)

• Lockbox

The scope item now includes the following: The integration of Lockbox with the SAP Cash Application provides matching proposals during the reprocessing of the lockbox items. SAP Cash Application is based on Machine Learning.

(Canada, United States of America)

 

• Combined Invoice - Goods and Service Items

This scenario covers the need to charge a customer for the goods sold and the services provided.

(Brazil)

• Returnable Packaging to Vendor

This process covers when a goods supplier sends a Nota Fiscal with a material and a returnable package, and requests return of the latter item.

(Brazil)

• Complementary Invoice – Pricing

A subsequent credit or debit exists when an additional invoice is received for a transaction that was previously invoiced.

(Brazil)

• Delivery of Goods on Behalf of Another Company

In this process, the company uses a third-party vendor to ship the goods directly to the customer. The company then invoices the customer.

(Brazil)

 

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