Preparation phase | Finance

STEP04
Content:

• Finance preparation activities

• Introduction and approach

• Preparation activities
Finance Preparation
Introduction and Approach
10STEP0s2S/4 | Systems and STEPs

SAP S/4HANA
ERP 6.0, EhP 7 2022
One Month Duration
MSSQL SAP HANA 2.0

Preparation phase Realization phase

Maintenance Custom code Software Update Manager Application specific
System requirements Pre checks
planner preparation (SUM) follow-up activities

STEP01 (Kick-Off) STEP02 (MP, Readiness Check, SI-Check, Sizing) STEP05 (SUM) STEP06 (FIN-Mig)
STEP03 (BP&CVI) STEP07 (Fiori)
STEP04 (FIN) STEP08 (Post)
STEP09 (Cust. Code)
STEP10 (Feedback)
Conversion Overview (As Shown in Conversion Guide)

Conversion to SAP S/4 HANA follows a well defined process. The following graph gives an
overview on the tools, phases and activities involved in this process.
Prepare Phase Realize Phase

t1 t2 t3 t4 t5 t6

Cross-app & app-

System Maintenance Custom Code Software Update
Pre-Checks* specific follow-on
Requirement Planner Migration Manager (SUM)
activities

Cross-application & application specific DB Migration

preparation activities
Software Update
Simplification List SAP S/4 HANA ** incl. Migration of
Data Conversion
*incl preparation Finance Customizing
of Financial Data and Data

Step 04 Step 06
Finance conversion in the context of SAP S/4HANA On-Premise Edition

“Uplifting” an existing SAP ERP system to

System ERP System On-Premise SAP S/4HANA
Conversion
with all its code, configuration and data

§ Conversion Guide for SAP S/4HANA 2022 refers to note 2332030 for Finance Conversion.
§ SAP conversion programs read data from old tables and transfer them to new structures.
§ Compatibility views (tables) are created to make old reports / transaction codes work.
§ Configuration/customizing has to be adapted in some areas (see Simplification List).
§ For Finance the customizing has to be done during Conversion. It cannot be prepared in the old system.
§ With a system Conversion it is not possible to activate new functionalities like document split, parallel
ledgers etc. Classic general ledger is transferred technically to new general ledger/ACDOCA without
activating new functionalities.
SAP S/4HANA: Universal Journal

Classic GL Migrate to New Universal

in SAP ERP GL
Parallel Ledgers Document Split
Journal Document Split
Parallel Ledgers

Classic GL in Universal Subsequent

SAP ERP Journal Introduction
Parallel Ledgers
Parallel Ledgers* Document Split**
Document Split

Important Notes: New Currency

SAP Note 2943475 - SAP S/4HANA 2020, Public Sector Management: Restriction Note
SAP Note 3081623 - SAP S/4HANA 2021, Public Sector Management: Restriction Note Planned: Transition from parallel G/L accounts to parallel ledgers
SAP Note 2334583 - Introduction of new currencies in SAP S/4HANA

Document Split = Online Document Split

Consistency Checks
During Preparation Phase
Start Release
Preparation Phase
Uptime Downtime

Customizing Consistency Checks

Data Quality Check of Customer-Vendor-Integration
Consistency checks of Transactional Data & Totals –
ERP 6.0x manually via SAP ERP standard reports, list of proposed reports (see Conversion Guide Note 2332030 )

“Consistency checks of
“Customizing Consistency Checks” Transactional Data & Totals”

TFC_COMPARE_VZ (New GL) Reconcile GL and AP and AR

§ /SDF/RC_START_CHECK SAPF190 (Classic GL Only)
Simplification Item-Checks
RAABST01 Reconcile GL and AA
RAABST02

RASFIN_MIGR_PRECHECK Tests whether necessary

prerequisites for New Asset
Accounting have been fulfilled

RGUCOMP4 (t-code GCAC) Compares Ledgers

Check Customizing Settings Prior to Upgrade
Current check framework:

Ø /SDF/RC_START_CHECK Check note 2245333 for a complete view on

customizing checks according to the release
version.
Customizing Consistency Checks
 How to use Simplification Item Checks
Handling of the check results

Relevance Check: This check

determines which simplification items are
relevant for this specific system.
Probably Relevant
Relevance Unknown
Irrelevant

Consistency Check: This check

determines data inconsistencies or
missing mandatory preparation activities
required for system conversion to be
successful
Inconsistency at level abortion
Inconsistency at level error
No potential inconsistency
Inconsistency at level warning
Not Applicable

Tips: Exemption: For consistency checks

• Relevance Check – Review all items in “Yellow”. Most of the time “Green” can be skipped.
that can be exempted, research and
understand the consequence before
• Consistency Check – Use corresponding notes to resolve all “Red” or SUM will fail at phase
exempting an error by reading the
RUN_S4H_SIF_CHECK_EXEC
relevant note
• Exemption – Resolve all “Red” if possible and only apply exemption as needed Inconsistency can be exempted
Not Applicable
Customizing Consistency Checks

Validate the results against SAP Note 2245333 - - Pre-Transition Checks for FIN: Error Messages and Possible Solutions
Consistency Checks
During SAP S/4HANA Conversion

Consistency checks of
Transactional Data before
Finance Migration
Data Quality Check
of Customer-Vendor- Consistency checks if
Integration each migration phases
performed correctly S/4 HANA

SUM Phase Post Processing Uptime

Target Release

Start Release
Preparation Phase
Uptime Downtime

=
Customizing Consistency Checks
Data Quality Check of Customer-Vendor-Integration
Consistency checks of Transactional Data & Totals –
ERP 6.0x manually via SAP ERP standard reports, list of proposed reports see Conversion Guide

t
SAP ERP Consistency Checks of Transactional data vs.
SAP S/4HANA Data Consistency Checks of Transactional Data
SAP ERP – PRD SAP S/4HANA SAP S/4HANA –
Consistency Checks of Preparation Phase Test System Consistency Checks
Test Environment
§ Several ERP Standard consistency check reports § Conversion Framework with automatic

=
§ Focus general consistency checks parallelization and job scheduling

§ Start manually § HANA optimized consistency checks

§ No framework for parallelization § Checking whole database with all fiscal years

§ Includes difficult to understand expert reports § Checks are focused to detect SAP S/4HANA
conversion relevant issues

Impact
§ In the preparation phase all SAP S/4HANA relevant inconsistencies in ERP-PRD cannot be identified.
§ When executing corrections in PRD, it is not possible to confirm that all SAP S/4HANA relevant inconsistencies have
been solved
à Data correction in SAP S/4HANA conversion is an iterative process
Conversion Approach
2 Work Packages Conversion Approach

Sand boxes conversions Production environments conversion

and project plan to S/4 HANA

§ Execute multiple iterations of migration Migrate production landscape with functional S/4
(full copies of productions system). testing per: HANA

§ Realize final project plan. § Development environment

§ Set up a detailed run book. § Test environment
§ Production environment

ERP
6.0x
Multiple Sandbox iterations

Transports Transports
DEV QAS PRD Corrections

System Copy

System SAP S/4HANA 2022

PRD’ Conversion
SAP HANA 2

System SAP S/4HANA 2022

PRD’’ Conversion SAP HANA 2

Finance Conversion to SAP S/4HANA
The approach

§ Numerous live projects for SAP S/4HANA Finance and SAP S/4HANA on premise have successfully performed
conversion from ERP systems with the tools used in this training program.

§ Lessons Learned
– Finance customizing needs to be adapted depending on new functionalities available with new release (like
additional currencies, parallel ledgers, parallel valuation)
– Check reports / programs can only run in the productive ECC source system on the old structures and do not show
every error that can come up during Conversion to SAP S/4HANA
– Transactional data in source system might lead to errors during Conversion. Known errors need to identified and
corrected before productive conversion.
Finance Preparation Activities
Preparation Activities
§ Check Customizing and Prerequisite Settings Prior to Migration

ü Use /SDF/RC_START_CHECK - Use the Simplification Item-Checks to check customizing settings

§ Consistency checks of Transactional Data & Totals for General Ledger

ü Note 2755360 - Reconciliation prior to S/4HANA Conversion

You can check the consistency of your GL data by executing transaction FIN_CORR_RECONCILE and viewing the result using transaction
code FIN_CORR_DISPLAY

ü 2793849 - Analysis and Correction of G/L Inconsistencies in ECC prior to S/4HANA Conversion- Application Coding
A tool to analyze and correct errors directly in the Source system. Transaction FIN_CORR_MONITOR

§ Consistency checks of Transactional Data & Totals for Fixed Assets

ü 2896400 – Reconciliation of Asset Accounting Inconsistencies in ECC prior to S/4HANA Conversion:

The new Fixed Asset Consistency Checks consist of two new transaction codes: FIN_AA_CORR_RECON &
FIN_AA_CORR_DISPLAY. Both transactions are executed in the source ERP system prior to conversion

https://blogs.sap.com/2020/09/02/s-4hana_system-conversion_-finance-data-consistency-checks/
https://blogs.sap.com/2020/10/06/finance-consistency-checks-fin_corr_monitor/
https://blogs.sap.com/2020/12/22/fixed-assets-consistency-checks-fin_corr_aa_monitor/
Check and Reconcile Your Data

§ Check the technical correctness of your financial data. SAP recommends the following checks:

Report Purpose

TFC_COMPARE_VZ (New GL) Reconciles General Ledger with the Accounts Receivable
SAPF190 (Classic GL Only) and Accounts Payable subledgers

Reconciles the General Ledger with Asset Accounting for

RAABST01
the leading valuation and parallel valuation
RAABST02
For further information, see SAP Note 2390881 .

RGUCOMP4 (same as t-code GCAC) Compares ledgers with the new General Ledger

RM07MBST
Reconciles Materials Management (MM) with the
General Ledger
RM07MMFI
Application Specific Preparation
Preparing Application Specific Tasks

Uptime

Downtime
 Period-End Closing and Prepare for Cut-Over
§ You should perform your normal period-end closing activities and document the results.
§ Although not all these activities are specifically required for conversion to occur, full period-end closings activities are
considered a best practice from a financial reconciliation perspective. There are however specific activities which are
mandatory (for full details see the Conversion Guide- note 2332030).

ü Year End Closing has to be finalized ü Year End Closing

Make sure that all carry forward balances are complete and
A certified financial statement for the previous consistent. To ensure this, carry forward the balances for all currencies
fiscal year is mandatory and all ledgers.
Period-End Closing and Prepare for Cut-Over
- Downtime -
§ Few days before the technical downtime,
Execute your normal period/month end closing activities. For Asset Accounting, at least the following activities must be
executed:
ü Depreciation run (transaction code AFAB)
ü Period APC posting run (transaction code ASKB) if applicable

• Immediately before technical downtime:

ü Execute all scheduled jobs
ü Ensure held documents are wither posted or deleted
ü Perform closing for periodic asset posting (transaction code ASKB) if applicable
ü Execute depreciation calculation (transaction code AFAR)
https://blogs.sap.com/2020/06/28/sap-s-4hana-conversion-projects-tips-on-asset-accounting-preparation-phase/
 Reconcile and compare Data
Document your Posting Data
§ Execute 13 snap-shot reports in source ERP system during business downtime to document financial position before
conversion. These same reports will be executed in Step06 in the converted S/4HANA system and validated for
consistency.

1. The financial statements (program RFBILA00)

2. The totals report for cost centers (transaction S_ALR_87013611)
3. Order: Actual/Plan/Variance (transaction S_ALR_87012993)
4. The G/L account balance list (program RFSSLD00)
5. The general ledger line items list (program RFSOPO00)
6. The compact document journal (program RFBELJ00)
7. The asset history sheet (program RAGITT_ALV01)
8. The depreciation run for planned depreciation (RAHAFA_ALV01)
9. The vendor sales (program RFKUML00)
10. The vendor open item list (program RFKEPL00)
11. The customer sales (program RFDUML00)
12. The customer open item list (program RFDEPL00)
13. The customer recurring entry original documents (program
RFDAUB00)
Data Transition Validation Tool DTV
DTV- Tool – Initial Scope

Supports validation of
System conversion transition scenario with
Pre-delivered content for business validation using
Business Reports/Transactions as instruments of comparison
 Reconcile and Compare Data
Data Transition Validation
§ The data transition validation tool (t-code DVF) allows you to compare business data before and after a system conversion
from SAP ECC to SAP S/4HANA.
§ Source release may be SAP ECC 6.0 with or without Enhancement Packages, tool is made available with specific
Transport-based-correction-instructions (TCI), see SAP Note 3103342.
§ Target release valid as of SAP S/4HANA 2021and higher
§ The tool offers following functionalities:
§ Define the test specification (including global variable values and/or specific report variants) for validation.
§ Extract the results of test execution in the source and target release.
§ Compare the source and target release data and show the comparison results.

https://blogs.sap.com/2021/10/13/data-transition-validation-the-tool-to-validate-business-data-after-conversion
Key Note: SAP Note 3117879 DTV Tool – Central Note
DTV - Purpose and Features
ü SAP provided tool for data validation during
system transition from SAP ERP to SAP S/4
HANA.
ü Expected to be usable and be used by the
end user.
ü Selection of tests (Business Reports) made
possible via pre delivered content.
ü Reports are executed once in source (ECC)
and once in target( S/4 HANA) and the two
snapshots are compared and results are
presented.
ü Delivered as part of SAP_BASIS.
ü Down ported to lower NW releases down to
NW 700.
DTV- Tool – What do you get ?
ü A usable, transition data validation solution
ü No prior technical know how needed. The Tool provides SAP GUI UIs for validation test maintenance and
execution
ü Out of the box execution of tests made possible for small scale validation
ü Mock execution / Simulation of the tests are possible to check the performance of executions
ü Pre delivered content for tests made possible via pre delivered content , with possible input parameter
selections
ü Possibility of incrementally updating the Pre delivered content
ü More pre delivered content means more the tool is ready for out of the box execution
ü Automatic verification of data possible , pre and post conversion – hence we must aim at providing as many
relevant data validation reports as possible in the tool
ü Hints on the UI, to trouble shoot in case of errors during test execution
ü Provided as part of SAP BASIS 756 delivery. No separate installation needed.
ü Future scope : Possibility of validating custom reports into the tool by customers/partners.
Summary of typical Activities
à Check and Reconcile your Data / Consistency Checks before Conversion and
Migration
à Handling Customer-Defined Fields and Interfaces
à Post or Delete all Held Documents
à Period-End Closing and Prepare for Cut-Over
à Balance Carry Forward
à Lock periods
à Execute pre-migration checks
à Accounting Snapshot reports to document the pre-conversion state
Thank you.
Contact information:
SAP 10Steps2S4 Team