S/4Hana Episode 2: Simple Finance, What Changes?

The changes introduced by Simple Finance are visible from a technical standpoint, but do not have a significant impact on the user interface, which remains, all in all, conventional. We have listed for you the main changes encountered, and although this list is not exhaustive, it provides an initial overview and can give an idea of the main changes brought about by Simple Finance.

• We will now speak of a single source of truth with the introduction of a new table containing the details of accounting and analytical entries. It allows for the management of multi-GAAP, splitting, analytical detail, as well as access to master data. This helps eliminate data reconciliation steps, which are time-consuming and low-value-added tasks (accountants and controllers can breathe a sigh of relief!).
• The “single source of data” is called The Universal Journal and contains all enriched records from all other SAP modules (FI-GL, the CO suite and mainly CO–PA, Fixed Assets, Material Ledger, …). By implementing this new concept and leveraging the performance of the Hana database, the setup of multidimensional reporting is simplified (for example, there is no longer a need to replicate data in other reporting systems).
• The rise of a new source table is accompanied by the disappearance of other components such as total tables and index tables. However, to ensure the continuity of customer-specific programs, SAP introduces a new concept: Compatibility Views. These correspond to views of classic tables, which function as decoders and allow for mapping fields to the new “ACDOCA” table. In other words, specific programs that pointed to old tables and fields still work without any modification.
• This standardization of tables implies a change in master data management and, more specifically, of the general ledger account and cost elements, which are merged into a single object. New notions identifying documents and line items are also found, as well as additional and extensible columns with Coding block entries (i.e., New-GL dimensions) and CO – PA characteristics.
• Another new feature of Simple Finance is the concept of the Appendix Ledger, allowing the storage of value deltas in another ledger, thus providing flexibility for reporting adjustments.

Ultimately, the changes brought by Simple Finance impact the database architecture more than the user experience. Transactional operations are not disrupted, although they are simplified through the implementation of input assistance. However, a significant gain can be observed in data access with in-memory and real-time processing, which facilitates reporting and opens the door to faster and more efficient information analysis.

Are you ready to switch to Simple Finance?

Is a new project or migration to Simple Finance being prepared at your company? MeltOne is ready to take on the challenge with you by supporting you through all phases of the project.

• Structure your Simple Finance project (with or without migration)
• Define the most suitable architecture for your context (on-premise, on-cloud)
• Manage and implement your Simple Finance project

Would you like to know more? Feel free to contact us by email: jsaccona@meltone.com

The trilogy of our S/4HANA articles continues; the next installment will be dedicated to migrating to Simple Finance.