Feature Scope DescriptionDocument version: 1.0 – 2015-06-18

SAP S/4HANA Foundation - Promotion

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Document History

The following table provides an overview of the most important document changes.

Table 1

Version Date Description

1.0 2015-06-18 Public Version

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Content

1 SAP S/4HANA Foundation - Promotion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

2 Accounting and Financial Close . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

3 Asset Accounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

4 Accounts Receivable Accounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

5 Accounts Payable Accounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

6 Profitability and Cost Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

7 Overhead Cost Accounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

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1 SAP S/4HANA Foundation - Promotion

The SAP S/4 HANA Foundation - Promotion offering supports customers in fulfilling the recording, valuation, and reporting requirements for multi-GAAP reporting (IFRS, local GAAPs). At the same time, it provides the basis for cost and revenue reporting in management decision making. It can be integrated in real time to other applications such as procurement, sales, or manufacturing.

The offering encompasses the classic disciplines of financial and managerial accounting, and relies on line items as a single source of truth for operational reporting and financial processes. This model provides transactional details to reporting without the need to extract and duplicate data in analytical data structures.

The following table provides an overview of the offering's key capabilities:

Table 2

Key Capabilities Additional Information

Accounts receivable accounting Accounts Receivable Accounting [page 8]

Accounts payable accounting Accounts Payable Accounting [page 9]

General ledger Accounting and Financial Close [page 6]

Asset accounting Asset Accounting [page 7]

Inventory accounting

Accrual accounting

Customer and product profitability analysis Profitability and Cost Analysis [page 10]

Overhead cost accounting Overhead Cost Accounting [page 11]

Profit center accounting

Cost center and internal order accounting

Project accounting

Product cost accounting

Period-end functionality in general ledger and subledgers

Financial statements

Financial and management reporting

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2 Accounting and Financial Close

Business Background

You use Accounting and Financial Close to perform external accounting tasks using General Ledger Accounting.

Key Features

As a general ledger accountant, you can use the following functions:

Table 3

Key Feature Use

Master Data You can manage master data for profit centers, profit center groups and G/L accounts.

If you specify profit centers in postings, you can create a profit and loss statement (P&L) for profit centers and a financial statement for internal purposes.

G/L account master data defines how business transactions are posted on G/L accounts and how the posting data is processed. The directory of all G/L accounts is the chart of accounts.

Postings and Documents You use documents to enter business transactions.

You can manage open items by reversing or clearing open items for example. You can also reset a clearing.

You can create recurring entries for postings that are repeated regularly.

Closing Operations and Reporting For closing operations at period-end closing, you can use the programs available for analyzing, valuating, and reclassifying the posting data.

With these closing operations, you create a financial statement and a profit and loss statement (P&L).

There are different programs available for sales/purchases tax declarations and tax payable postings.

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SAP S/4HANA Foundation - PromotionAccounting and Financial Close

3 Asset Accounting

Business Background

You use Asset Accounting to manage and monitor tangible fixed assets. It provides detailed information about the transactions relating to tangible fixed assets.

Prerequisites

To be able to use Asset Accounting, you have to also use General Ledger Accounting.

For more information, see Accounting and Financial Close [page 6] .

Key Features

As an asset accountant, you can use the following functions:

Table 4

Key Feature Use

Master Data Using the asset master record, you can create, edit, and manage the master data of Asset Accounting.

Asset Acquisitions and Asset Retirements You can post asset acquisitions integrated with accounts payable accounting or not integrated.

Analog to this, you can post asset retirements integrated with accounts receivable accounting or not integrated.

In addition to this, there are more functions available for asset acquisitions and retirements.

Depreciation With depreciation you map impairments incurred or impairments that are due to tax law requirements.

More Transactions, Reversal More transactions, for example post-capitalizations are available.

You can reverse documents that are posted in Asset Accounting.

Closing Operations and Reporting You post the depreciation amounts periodically, directly in General Ledger Accounting.

Create an asset history sheet to represent the development of the fixed asset from the opening balance through to the closing balance.

More tools for the reporting and analysis of asset portfolios, asset transactions, and depreciation are also available.

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4 Accounts Receivable Accounting

Business Background

You use accounts receivable accounting for processing open customer invoices, and to monitor incoming payments.

Key Features

For this purpose, you can use the following features:

Table 5

Function Use

Monitoring of receivables You can display overdue receivables and customer balances. In addition, you can process individual customer items.

Clearing of open invoices You can post incoming payments and manually clear open items.

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SAP S/4HANA Foundation - PromotionAccounts Receivable Accounting

5 Accounts Payable Accounting

Business Background

Invoices are created in purchasing and submitted to accounts payable. As an accounts payable accountant, when you receive an invoice, you can view key performance indicators (KPIs) for the invoice and process the invoice.

Key Features

The following features support you with this process:

Table 6

Key Feature Use

Analysis of payments to vendors You use this feature to view information about payments to vendors. You can check the overdue payable amount and the future payable amount. If you identify negative trends in the payable amount, you can notify the responsible persons to take action.

Management of cash discounts You use this feature to forecast the available cash discounts and to monitor the cash discount utilization in your responsible area. You can find out where you need to make better use of cash discounts in order to avoid cash discount loss in the future.

Reviewing of cleared overdue invoices You use this feature to get details and statistical facts about cleared overdue invoices.

Evaluation of days payable outstanding You use this feature to identify vendors with the highest or the lowest days payable outstanding.

Management of payments You use this feature to create, post, and, if necessary, reverse payments.

Management of payment blocks You use this feature to set and remove payment blocks on invoices or vendor accounts.

Management of payment proposals You use this feature to revise and release payment proposals. Journal entries are then generated in the finance system.

Reviewing of checks You use this feature to display a check from a payment run as a PDF. You can then view the check details.

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6 Profitability and Cost Analysis

Business Background

This business area enables you to evaluate market segments, classified according to products, customers, orders, or any combination of these, or according to strategic business units, such as sales organizations or profitability segments, with respect to your company’s profit or contribution margin. As part of period-end closing, you can also carry out activities such as results analysis, settlements, and overhead allocations.

Key Features

Table 7

Key Feature Use

Settlement You can compare the ratio of planned and actual costs on a project with the ratio of planned and actual revenue to determine whether the project costs can be capitalized as work in process

You can also settle projects to capitalize the balance from the results analysis and obtain detailed data in the results analysis for enterprise controlling

Revenue and cost of sales You can provide information on revenue and cost of sales to support internal accounting and decision-making.

Overhead allocation (profitability analysis) You can perform overhead allocation for profitability analysis

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SAP S/4HANA Foundation - PromotionProfitability and Cost Analysis

7 Overhead Cost Accounting

Business Background

This business area covers transaction-based actual postings that are normally used in Overhead Cost Accounting. It also offers a transparent view across cost center accounts, enables journal entries to be processed for various purposes, and periodic as well as end-year activities to be prepared.

Key Features

The following features support you with this process:

Table 8

Key Feature Use

Master data in cost accounting You can manage various types of master data, such as

● Cost centers

● Cost center groups

● Activity types

Activity prices You can maintain activity prices for any combination of cost center and activity type. The activity price is needed for allocating an internal activity.

Statistical key figures You can maintain statistical key figures, which serve as a basis for internal allocations.

Overhead allocation between cost centers You can allocate posted costs from support cost centers to primary cost centers.

Actual data reporting You can report on actual data for selected periods for the following objects:

● cost centers

● projects

● market segments

● profit centers

● Profit & loss statement

Material inventory values You can report on quantities and values of the material inventory.

You can also report on rounding differences between the current stock postings of the actual stock and the calculated stock.

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Typographic Conventions

Table 9

Example Description

<Example> Angle brackets indicate that you replace these words or characters with appropriate entries to make entries in the system, for example, “Enter your <User Name> ”.

Example Example Arrows separating the parts of a navigation path, for example, menu options

Example Emphasized words or expressions

Example Words or characters that you enter in the system exactly as they appear in the documentation

www.sap.com Textual cross-references to an internet address

/example Quicklinks added to the internet address of a homepage to enable quick access to specific content on the Web

123456 Hyperlink to an SAP Note, for example, SAP Note 123456

Example ● Words or characters quoted from the screen. These include field labels, screen titles, pushbutton labels, menu names, and menu options.

● Cross-references to other documentation or published works

Example ● Output on the screen following a user action, for example, messages

● Source code or syntax quoted directly from a program

● File and directory names and their paths, names of variables and parameters, and names of installation, upgrade, and database tools

EXAMPLE Technical names of system objects. These include report names, program names, transaction codes, database table names, and key concepts of a programming language when they are surrounded by body text, for example, SELECT and INCLUDE

EXAMPLE Keys on the keyboard

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