What’s New in 1610 and 1709 Release for

SAP S/4HANA FINANCE?

The previous release of SAP S/4HANA 1610 in finance area had concentrated on embedded
real-time software. The new capabilities and innovations in SAP S/4HANA 1610 allow the
manufacturers to manage the embedded software all through the product lifecycle. The new
product development is quickening by the businesses with the response to the collected
information about their scholarly products, the requirements based on the product design, and
observe the development of the product status, involving quality, outline as well as development
progress.

Another innovation with SAP S/4HANA 1610 is the undertaking administration arrangement
and improved portfolio, which is an extra SAP S/4HANA component that accentuations on the
supporting the venture and portfolio chiefs. SAP has completely refreshed the way a customer
works together with the structure to engage perfect adequacy.

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The additional options in the SAP S/4HANA 1610 include the propelled availability of potential
functionality, incorporated quality administration and SAP S/4HANA for worldwide exchange.

This post fundamentally focuses on the latest innovation of SAP S/4HANA in the field of Simple
Finance lets have a look at them. There are a few points of interest of SAP S/4HANA within the
organization. The distinction with the typical FICO in R3 are discussed, including some of the
features which are involved in the Simple Finance 1.0 in 2014.

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1.One Single Source truth and all accounts become GL accounts:

At the point when all the genuine details are stored in the new table of ACDOCA, it will not
create any redundant, aggregate or total tables, as all the measurements of AA, ML, CO, GL will
be put away in ACDOCA.

The ACDOCA contains the multidimensional GL, parallel currencies and records, 999,999
details. The latest innovations in the 1610 release have solved the challenges in collecting the
substances of various tables to display the reality and settle the details which are stored in
different tables of SAP.

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2. Parallel Currencies and Valuation:

In the SAP S/4HANA 1610 release, the ten parallel currencies for every record can be seen
together. With this new innovation it is possible to convert all types of currencies in real-time,
also zero balance per document is now confirmed for every currency and the currency for the CO
– area is presently figured for all the records.

The parallel valuation functionality is now improved in the 1610 release. There are two ways
which are offered in this release to store the numerous valuations.

1.Parallel valuation updated in parallel single valuation record:

It provides a separate record for each valuation, including straightforward partition related to
posting and reporting.
2.Parallel valuation rationalized in the multi-valued ledger:

It includes an isolated quantity of segments in the similar record, facilitates memory impression,
effort and time required for closing.

3. Profitability Analysis in SAP S/4HANA 1610:

As the SAP S/4HANA highlights on the improvements and combination of record based COPA,
it is possible to analyze profitability. The profitability in light of costing is as yet accessible and
can be utilized as a part of parallel without any integration with the Universal Journal i.e.
ACDOCA table.

Following are the improvements in the account based profitability analysis:

 While posting the merchandises issue, the split of costs of goods which is sold on several
accounts is utilized.
 At the time of order settlement, the production opportunities on several accounts are split.
 The real-time derivation of market segment information from cost posting should be
possible.
 The 3 new quality fields are offered during the details.

Improvement Summary:

Following are the limitations of the account based profitability analysis:

 The sales conditions are not supported which are not posting to GL.
 The realignment of attributes is somewhat upheld, which are modified in the wake of
posting.

4. Attribute Profitability Segments:

This is one of the best improvement in the field of profitability analysis. For example, when
anyone has a debit memo request in a period and material administration order with a settled rule
for COPA. The debit memo request will not have any benefit section, but an account assignment
related to the service order. It implies that until the service order is established to COPA, one can
not have the profitability segment information. By utilizing this new functionality one can have
the genuine account assignment in the service order and an attribute assigned to a benefit section.

5. Event Based on Revenue Recognition:

Presently, the revenue recognition procedure is completely incorporated with the Universal
Journal. In that respect, no distinct storage is available for revenue recognition. The cost and
revenues are known at the time of their arrival. There are two postings which will produce during
the entry of the source document. The two entries are:
One is the entry for the initial cost and revenue and another one is an entry for the revenue
recognition posting. The revenue recognition posting and manual modifications are monitored
with the new app, i.e. Event based revenue recognition.

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6. Bank Account Management (lite):

There were few house banks and bank accounts in SAP available in the old setup of bank
account management. The new version of SAP S/4HANA involves the basic functions related to
the bank management functionality of cash management is introduced in the core. This is known
as Bank Account Management lite.

Following are the innovative features and contrasts which are compared to the old house bank
and financial balance setup:

 Group-wise account administration

 Signatory
 Overdraft Constrain
 Opening and shutting with the approval process
 Easily managed bank accounts

The customers are able to maintain and manage the bank accounts with the help of a committed
application called Web Dynpro or Fiori application. The house bank can themselves created in a
customized way. The transaction of Fi12 is outdated now, which are supplanted by transaction
Fi12_hbank. In this manner, the procedure of creating the house bank and the house bank ledger
are disconnected and can be implemented in two separate spots.
7. New Asset Accounting

It is a pre-requirement to migrate towards the new asset accounting for transferring to S/4HANA
Finance due to the following reasons:

 Resolution amongst GL and AA ensured

 No data redundancy
 A simplified outline of deterioration: just 1 CoD
 No delta depreciation zones
 Asset balance in real-time
 Plan values in real-time
 No data idealness

8. Embedded Analytics and Reporting:

SAP incorporates transactions and analytics on one framework permitting the operational
reporting details regarding live transaction data. There are several new possibilities in SAP
S/4HANA, with the new data structure, pre-delivered virtual information models, the
performance of HANA and the modern and state of the art reporting tools and interfaces.

The idea behind using the embedded analytics in S/4HANA is to offer the models through the
entire suit in which the business logic is implanted. In this way, the data models which are
offered are used to carry out the appropriate information rather than crude information.

The most commonly used S/4HANA implementation used by the clients are Fiori-reporting,
SAP Lumira, and Analysis for office.
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Innovation in 1709 release in SAP S/4HANA Finance:

With the achievement of SAP S/4HANA 1610, the SAP S/4 HANA 1709 is released on
September 15th 2017. It involves many architectural advancements, including most recent tools
which are available for SAP S/4HANA adoption as well as the functional inventions and
developments. The SAP S/4HANA 1709 fundamentally executes on SAP HANA2, which is the
second generation of SAP’s in-memory database stage, which supports scale-out and utilization
of active added presentation. The architectural developments enable the clients to take the
preferred standpoint from the most recent developments in the database frameworks.

Learn SAP S/4HANA Simple Finance from Industry Experts

In SAP S/4HANA 1709, the innovations in the financial field involve embedded analytics
competences, improved real-time accounting and closing competences, advanced cloud apps on
the SAP cloud platform as well as the first machine learning scenario for finance.

Let’s now explore the five major areas in the finance, which is released with SAP S/4HANA
1709:
 Source:blogs.sap.com

1.Central Finance: The first major area is the Central Finance, which involves an another
Fiori app. This apps grants you to visit to the documents related the central financial perspective
and also you can visit to the source document as well. In place of making payment to each source
system, it is easy to make the centralized payments as well as carry out centralized clearing tasks,
this is conceivable by utilizing the central payment feature for SAP central finance. An enhanced
VAT configuration check for the company code is likewise included in the 1709 release, which
allows you to trigger an improved check related to the taxes. It is essential to utilize this check
for the central payment.

The clients are looking for a solution for the replication of costing-based CO-PA in central
finance, in the SAP ERP foundation framework with respect to productivity based on account in
SAP S/4HANA, which is not bolstered yet. In provision with SAP S/4HANA 1709, the
duplication is supported by utilizing a tool-set, as a part of the custom implementation project.
The accessible tool-set contains CO-PA mapping tool and also an improved strategy of
duplication.

2.Financial Planning and Analysis: In order to support product cost analysis, the various
new enhancements, for example, the SAP Fiori app are also delivering that support the financial
planning and analysis. A work focus view is included in this, which not just gives the picture
related to actual cost at work focus but it also provides the organized data. Apart from this, some
progress is achieved in the profitability analysis in Universal Journal. The splitting cost of
products retailed in SAP S/4HANA is improved and now a reporting app that demonstrates the
realignment results are also brought out. These enhancements help to provide a vibrant picture to
the clients. The new exercise manual is another incredible component designed for the cost of
products which are fabricated. Alternate innovations are semantic tagging and flexible
hierarchies. These innovations are based on master data features and tags. These two innovations
provide a flexible design and simplify the entire revealing capability.

3.Accounting and Financial Close: This is another innovation in the field of finance,
which is divided into posting and reporting view. An introduction to the document splitting is
now supporting according to the requirements of the customers. The SAP financial closing and
accounting is a fundamental portion of SAP S/4HANA 1709, in order to accomplish the speeder
element close through meeting the supervisory prerequisites. The financial and accounting close
supports in planning, executing, monitoring, and analyzing financial responsibilities for the
objects within the group. The intervallic recurring actions are likewise performed with the
participation of several agents. A new framework is provided by the advanced compliance
reporting, which helps to meet the acute compliance reporting needs for the several accounting
principles.

4.Treasury Management: The various innovations and improvements are delivered within
the treasury management, here are the list of them:

 Continued innovation of center treasury

 Stretched center treasury with value-added cloud administrations
 SAP cash management
 New functionality for treasury and cash management
 Upgraded foreign currency hedgerow management
 Upgraded bank relationship management.

The workflow functionality for the administration of financial account is reformed, so that a new
format for the workflow is now included, which further involves the new apps for processing and
tracking workflow requests and a new app called “Manage Workflows”.

5.Financial Operations: The financial operations in the SAP S/4HANA 1709 release
include four SAP cloud platform apps, i.e. SAP cloud for credit reconciliation, customer
payments, for digital payments and SAP cash application. These apps support the end-to-end
techniques by providing the cloud services. The enhanced incorporation of procedures between
finance operations and the business network applications is also an added advantage, including:

 Invoice and discount administration

 Supply chain
 Cost center with SAP SuccessFactors Finance solutions
 Payment guidance with SAP field-glass solutions
 Image Source:blogs.sap.com

Conclusion:
Thus, it can be expressed that the advantages from the previous releases of SAP S/4HANA are
still continuing in the latest innovation in 1610 and 1709 SAP S/4HANA Simple Finance,
including the resolution and popularization of usually addressed challenges in the field of
reporting. These innovations make the Simple Finance an appreciated addition to any business
software infrastructure.