SAP S/4HANA

Conversion
A Guide to Executing and Simplifying
Your Conversion
—
Ravi Surya Subrahmanyam
SAP S/4HANA Conversion
A Guide to Executing and
Simplifying Your Conversion

Ravi Surya Subrahmanyam

SAP S/4HANA Conversion: A Guide to Executing and Simplifying Your Conversion
Ravi Surya Subrahmanyam
Hyderabad, India

ISBN-13 (pbk): 978-1-4842-8090-4 ISBN-13 (electronic): 978-1-4842-8091-1

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I dedicate this book to my beloved father,
the late Sri Ravi Rama Chandra Murthy,
retired high school headmaster
and recipient of the best teacher award.
Table of Contents
About the Author��������������������������������������������������������������������������������������������������� xiii

About the Technical Reviewers�������������������������������������������������������������������������������xv

Acknowledgments�������������������������������������������������������������������������������������������������xvii

Preface�������������������������������������������������������������������������������������������������������������������xix

Introduction������������������������������������������������������������������������������������������������������������xxi

Chapter 1: An Overview of SAP S/4HANA����������������������������������������������������������������� 1

Cloud Options�������������������������������������������������������������������������������������������������������������������������������� 1
RISE with SAP S/4HANA Cloud������������������������������������������������������������������������������������������������ 1
RISE with SAP S/4HANA Cloud, Private Edition����������������������������������������������������������������������� 2
SAP S/4HANA Cloud, Extended Edition������������������������������������������������������������������������������������ 3
On-Premises Options�������������������������������������������������������������������������������������������������������������������� 4
SAP S/4HANA Hosted in the Customer’s Data Center�������������������������������������������������������������� 4
SAP S/4HANA Hosted by an IaaS Provider (Hyperscaler) Data Center������������������������������������� 4
SAP S/4HANA Hosted in SAP HANA Enterprise Cloud (HEC) in an SAP Data Center���������������� 5
SAP S/4HANA Hosted in SAP HANA Enterprise Cloud (HEC) in a Hyperscaler Data Center����� 5
Choosing a Deployment Option����������������������������������������������������������������������������������������������������� 5
SAP S/4HANA Move Planning Tools����������������������������������������������������������������������������������������������� 6
SAP Readiness Check for SAP S/4HANA��������������������������������������������������������������������������������� 7
Process Discovery Tool������������������������������������������������������������������������������������������������������������ 7
SAP Transformation Navigator������������������������������������������������������������������������������������������������� 7
SAP Fiori App Recommendation Report���������������������������������������������������������������������������������� 7
Conclusions����������������������������������������������������������������������������������������������������������������������������� 8

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Overview of SAP S/4HANA������������������������������������������������������������������������������������������������������������ 8

Capabilities of SAP Accounting Powered by HANA (SAP S/4 HANA Finance)�������������������������� 9
Converting an SAP ECC System to SAP S/4HANA������������������������������������������������������������������ 10
Advantages of the SAP HANA Technology����������������������������������������������������������������������������� 10
Advantages of SAP S/4HANA������������������������������������������������������������������������������������������������� 10
Conclusions��������������������������������������������������������������������������������������������������������������������������� 22

Chapter 2: Planning for a Conversion to SAP S/4HANA������������������������������������������ 25

SAP Readiness Check for SAP S/4HANA������������������������������������������������������������������������������������� 26
Handling Inconsistencies������������������������������������������������������������������������������������������������������� 26
Generating the SAP Readiness Check 2.0����������������������������������������������������������������������������� 26
Tool 2: Process Discovery (Formerly Known as SAP Business Scenario Recommendations)������31
Custom Code Analysis and Adoption������������������������������������������������������������������������������������� 32
Tools for Custom Code Analysis�������������������������������������������������������������������������������������������������� 36
Tool for Identifying Unused Custom Code: SCMON���������������������������������������������������������������� 36
Extended Program Check-SLIN��������������������������������������������������������������������������������������������� 37
Code Inspector -SCI��������������������������������������������������������������������������������������������������������������� 37
Maintain System Group Information�������������������������������������������������������������������������������������� 41
Conclusions��������������������������������������������������������������������������������������������������������������������������� 47

Chapter 3: An Overview of SAP ECC System Conversion���������������������������������������� 49

Overview of the Conversion Process������������������������������������������������������������������������������������������ 49
The Preparation Phase���������������������������������������������������������������������������������������������������������������� 50
1. The Readiness Check�������������������������������������������������������������������������������������������������������� 50
2. Maintenance Planner��������������������������������������������������������������������������������������������������������� 50
3. Simplification Item Check (SI Check)�������������������������������������������������������������������������������� 52
4. Custom Code Analysis������������������������������������������������������������������������������������������������������� 59
The Realization Phase����������������������������������������������������������������������������������������������������������������� 60
1. Software Update Manager������������������������������������������������������������������������������������������������� 60
Software Update Manager 2.0����������������������������������������������������������������������������������������������� 61
Software Logistic Tools���������������������������������������������������������������������������������������������������������� 61
2. Unicode Conversion����������������������������������������������������������������������������������������������������������� 62

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Adjustments During and After Conversion or an Upgrade����������������������������������������������������������� 65

Modifications������������������������������������������������������������������������������������������������������������������������� 66
Who Is Responsible for Performing Modification Adjustments?�������������������������������������������� 69
SAP S/4HANA Conversion Project Activities Overview���������������������������������������������������������������� 69
Conclusions��������������������������������������������������������������������������������������������������������������������������� 71

Chapter 4: The Customer Vendor Integration (CVI)������������������������������������������������� 73

The SAP Business Partner Concept�������������������������������������������������������������������������������������������� 73
Customer Vendor Integration (CVI)���������������������������������������������������������������������������������������������� 74
Executing the SI Check Program������������������������������������������������������������������������������������������� 75
Preparing for CVI������������������������������������������������������������������������������������������������������������������� 77
1. Implement the Prechecks�������������������������������������������������������������������������������������������������� 77
2. Archive the Master Data with a Deletion Flag������������������������������������������������������������������� 77
3. Activate the Business Functions���������������������������������������������������������������������������������������� 78
4. Run the Master Data Consistency Prechecks�������������������������������������������������������������������� 79
5. Set Any Necessary Customizing Settings�������������������������������������������������������������������������� 81
Customer/Vendor Synchronization: Preparation Phase��������������������������������������������������������������� 84
Customer-Related Preparations�������������������������������������������������������������������������������������������� 84
Vendor-Related Preparations������������������������������������������������������������������������������������������������� 85
BP Synchronization Phase����������������������������������������������������������������������������������������������������� 88
Mapping Tasks���������������������������������������������������������������������������������������������������������������������������� 90
Assign Business Partner Roles to Account Groups���������������������������������������������������������������� 90
Number Assignments (CVI-Target: Business Partner)������������������������������������������������������������ 91
Value Mapping����������������������������������������������������������������������������������������������������������������������� 92
Activate Assignment of Contact Persons������������������������������������������������������������������������������� 93
Assign Department Numbers for Contact Person������������������������������������������������������������������ 94
Assign Functions of Contact Person�������������������������������������������������������������������������������������� 94
Assign Authority of Contact Person��������������������������������������������������������������������������������������� 95
Assign VIP Indicator for Contact Person�������������������������������������������������������������������������������� 95
Assign Marital Statuses��������������������������������������������������������������������������������������������������������� 96
Assign Legal Form to Legal Status���������������������������������������������������������������������������������������� 97
Assign Payment Cards����������������������������������������������������������������������������������������������������������� 97

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Assign Industries������������������������������������������������������������������������������������������������������������������� 98
Assign Business Partner Roles to Account Groups���������������������������������������������������������������� 99
Number Assignments (CVI-Target: Business Partner)���������������������������������������������������������� 100
Vendor Value Mapping��������������������������������������������������������������������������������������������������������� 101
Activate Creation of Post Processing Order (PPO)��������������������������������������������������������������� 103
Activate Synchronization Options���������������������������������������������������������������������������������������� 103
Check Synchronization Objects������������������������������������������������������������������������������������������� 104
Using the Synchronization Cockpit������������������������������������������������������������������������������������������� 105
Maintaining a Business Partner������������������������������������������������������������������������������������������������ 109
Create a Sold-To Account���������������������������������������������������������������������������������������������������� 109
Create Ship-To Account������������������������������������������������������������������������������������������������������� 113
The Data Model in SAP S/4HANA Business Partner������������������������������������������������������������������ 130
BP Master Data Protection�������������������������������������������������������������������������������������������������� 131
Business Data Toolset (BDT)������������������������������������������������������������������������������������������������ 131
BP Maser Data Archiving����������������������������������������������������������������������������������������������������� 135
Conclusions������������������������������������������������������������������������������������������������������������������������������� 136

Chapter 5: Preparation Phase (Preparations in SAP ECC System Before

SUM) – Part 1�������������������������������������������������������������������������������������������������������� 137
Discovery Activities Before Starting the Preparation Activities������������������������������������������������� 138
Fixing Financial Data Inconsistencies Before Conversion��������������������������������������������������������� 141
Example 1: Error Message FIN_FB_RECON220: Fields in BSIS and BSEG Do Not Match�������147
Example 2: Error Message FIN_FB_RECON372: Entry in BSIS with Missing Archiving
Flag (Field xarch)����������������������������������������������������������������������������������������������������������������� 154
Example 3: Error Message FIN_FB_RECON74: Inconsistent Amount for Updating
in G/L for this Line Item (Ldg 0L)����������������������������������������������������������������������������������������� 160
Example 4: Error Message FIN_FB_RECON76: Inconsistent Amount in the Second Local
Currency For This Line Item (Ldg 0L)����������������������������������������������������������������������������������� 164
Example 5: Error Message FIN_FB_RECON517: Fields Mismatch Between BSEG
and NewGL Line Item Table������������������������������������������������������������������������������������������������� 164
Example 6: Error FIN_FB_RECON 376: Entry on BSIK with Missing Archiving Flag
(Field xarch)������������������������������������������������������������������������������������������������������������������������� 166
Example 7: Error FIN_FB_RECON 374: Entry on BSID with Missing Archiving Flag
(Field xarch)������������������������������������������������������������������������������������������������������������������������� 168

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Example 8: Error FIN_FB_RECON 398: Second Local Currency in BKPF Inconsistent��������� 169
Preparation Phase SI Checks Execution (Functional)���������������������������������������������������������������� 169
Error Messages������������������������������������������������������������������������������������������������������������������������� 170
Module – Finance���������������������������������������������������������������������������������������������������������������� 170
Module - HR������������������������������������������������������������������������������������������������������������������������� 191
Module – Material Management����������������������������������������������������������������������������������������� 192
Module – PP������������������������������������������������������������������������������������������������������������������������ 196
Module SD��������������������������������������������������������������������������������������������������������������������������� 208
Warnings����������������������������������������������������������������������������������������������������������������������������� 212
Important Checks in FI-GL Before Conversion in the ECC System�������������������������������������������� 214
Conclusions������������������������������������������������������������������������������������������������������������������������������� 218

Chapter 6: Preparation Phase (Preparation for Conversion of SAP ECC Asset

Accounting to SAP S/4HANA New Asset Accounting) – Part 2����������������������������� 219
Conversion/Migration Scenarios����������������������������������������������������������������������������������������������� 220
EA-FIN Financial Extension�������������������������������������������������������������������������������������������������� 220
Example 2 Preparation Activity�������������������������������������������������������������������������������������������� 223
Check Item “SI2: FIN_AA”��������������������������������������������������������������������������������������������������������� 232
Correction Action����������������������������������������������������������������������������������������������������������������� 235
An Overview of the SAP Asset Accounting Migration Flow�������������������������������������������������� 243
Configuration of Chart of Depreciation Under Ledger Approach������������������������������������������ 249
Parallel Accounting Using the Ledger Approach������������������������������������������������������������������ 249
Specify Transfer of APC Values�������������������������������������������������������������������������������������������� 252
Technical Clearing Account for Integrated Asset Acquisition���������������������������������������������� 254
Configuration of a Chart of Depreciation Using the Account Approach������������������������������� 258
Conclusions������������������������������������������������������������������������������������������������������������������������������� 264

Chapter 7: Preparation Phase (Preparation Prior to Conversion) – Part 3����������� 267

Credit Management Preparations for Conversion��������������������������������������������������������������������� 267
Determining if the Source System Has Credit Management Functionality�������������������������� 268
Identifying the Use of FSCM-CR (FSM-Based Credit Management)������������������������������������ 269
Prerequisites for Migrating to SAP Credit Management������������������������������������������������������ 269

ix
Table of Contents

The Influence on User Activity and Business Processes����������������������������������������������������� 269

Credit Management Preparation and Migration Activities After SUM���������������������������������� 270
Material Ledger Preparation for Conversion����������������������������������������������������������������������������� 274
Before SUM (Before System Conversion)���������������������������������������������������������������������������� 275
Material Ledger Preparation Activities�������������������������������������������������������������������������������� 275
Material Ledger Data Migration������������������������������������������������������������������������������������������� 277
Start and Monitor Data Migration���������������������������������������������������������������������������������������� 277
Actual Costing Preparation for Conversion������������������������������������������������������������������������������� 280
Trade Finance Preparation for Conversion�������������������������������������������������������������������������������� 281
Pre-Transition Checks��������������������������������������������������������������������������������������������������������� 281
Revenue Recognition Preparation for Conversion��������������������������������������������������������������������� 285
Business Process���������������������������������������������������������������������������������������������������������������� 285
Which Transaction Codes Are Affected?������������������������������������������������������������������������������ 285
How Do You Resolve This Error?������������������������������������������������������������������������������������������ 286
Preparation for Classic Cash Management for Conversion������������������������������������������������������� 287
Cash and Liquidity Management to SAP S/4HANA�������������������������������������������������������������� 287
After Accounting Conversion����������������������������������������������������������������������������������������������������� 289
Conclusions������������������������������������������������������������������������������������������������������������������������������� 289

Chapter 8: Realization Phase (Preparation and Migration of Customizing)��������� 291

The Role of the Software Update Manager (SUM) Tool������������������������������������������������������������� 291
When Is the SPDD Activity Completed?������������������������������������������������������������������������������� 292
How Do Users Know When SUM Reaches Downtime and What Activities Will Be
Done by the Administrator?������������������������������������������������������������������������������������������������� 292
When Will the SPAU Activities Be Done?����������������������������������������������������������������������������� 293
What Is the Menu Path for the Conversion Cockpit?����������������������������������������������������������� 295
Converting Accounting to SAP S/4HANA����������������������������������������������������������������������������������� 295
Special Authorizations to Execute the Cockpit�������������������������������������������������������������������� 297
Preparations and Migration of Customizing������������������������������������������������������������������������ 298
Data Migration�������������������������������������������������������������������������������������������������������������������������� 299
Activities After Migration����������������������������������������������������������������������������������������������������� 301
Tasks Before Starting Preparation Activities for the Cockpit����������������������������������������������� 301

x
 Table of Contents

Preparations and Migration of Customizing������������������������������������������������������������������������ 302

Preparations and Migration of Customizing for GL�������������������������������������������������������������� 304
Defining the CO Document Type������������������������������������������������������������������������������������������ 313
Preparation and Migration of Customizing: Accrual Engine������������������������������������������������ 320
Migration Precheck for Customizing����������������������������������������������������������������������������������� 321
Migration of Customizing and Migration of Transactional Data������������������������������������������� 323
Manual Migration Steps for Account Determination������������������������������������������������������������ 325
Preparation and Migration of Customizing for AA��������������������������������������������������������������� 326
Performing Additional Manual Activities������������������������������������������������������������������������������ 330
Activate Asset Accounting (New)����������������������������������������������������������������������������������������� 333
Important Points������������������������������������������������������������������������������������������������������������������ 337
Preparations for Migration of House Bank Accounts����������������������������������������������������������� 339
Data Migration Process������������������������������������������������������������������������������������������������������������� 342
Introduction������������������������������������������������������������������������������������������������������������������������� 342
Data Migration��������������������������������������������������������������������������������������������������������������������� 342
Migration of Cost Elements������������������������������������������������������������������������������������������������� 345
Migration of General Ledger Allocations to Journal Entry Tables���������������������������������������� 354
Activities After Migration����������������������������������������������������������������������������������������������������������� 357
Introduction������������������������������������������������������������������������������������������������������������������������� 357
Transfer Application Indexes����������������������������������������������������������������������������������������������� 358
Display Status of Transfer of Application Indexes���������������������������������������������������������������� 358
Fill the Offsetting Account in FI Documents������������������������������������������������������������������������ 358
Display Status of Filling the Offsetting Account in Finance Transactions���������������������������� 359
Enrichment of Balance Carry Forward��������������������������������������������������������������������������������� 359
Migration of Accrual Engine Data���������������������������������������������������������������������������������������� 360
Conclusions������������������������������������������������������������������������������������������������������������������������������� 361

Chapter 9: An Overview of SAP S/4HANA Conversion Project ­Tasks�������������������� 363

Index��������������������������������������������������������������������������������������������������������������������� 365

xi
About the Author
Dr. Ravi Surya Subrahmanyam holds a Doctorate in
Finance. He has been working as S/4HANA Solution
Architect on various SAP S/4HANA Conversion & SAP
S/4HANA Upgrade projects in India and United States. He
is a speaker, blogger, and author on technical and financial
topics and his articles have been published in national and
international journals.

xiii
About the Technical Reviewers
Gayathri Bhanu is a qualified “Cost and Management
Accountant” from The Institute of Cost and Management
Accountants of India. She is a Certified SAP S/4HANA
professional and certified solution architect and blogger. She
has been working as an SAP S/HANA consultant, working on
S/4HANA conversion, and SAP S/4HANA Upgrade projects.

Sannapolu Chandhra Shekar Reddy is a postgraduate in

management. He has been a certified SAP S/4HANA finance
professional and a certified SAP ECC finance associate. He
has worked on SAP S/4HANA projects very closely and on
SAP S/4HANA planning & move activities along with SAP
S/4HANA conversions. Presently, he is working as a manager
in one of the top MNCs.

xv
Acknowledgments
Foremost, I would like to express my sincere gratitude to the Editor, Apress®, Divya Modi.
Throughout the writing of this book, I have received support and encouragement from
her. I would like to extend my sincere thanks to all other members of Apress team for
their excellent support in publishing my Guide.
I would like to thank Sajja Yugandhara Babu, Satya Bommireddy, Sukesh Koka,
whose expertise helped in formulating this book.
I would like to acknowledge Venkateswara Rao Sudina, Mukesh Bablani, Ravi
Bhogaraju for their motivation, enthusiasm, and immense knowledge in SAP S/4HANA
conversion process. In addition, I would like to thank my wife Taruna & my mother Ravi
Bhanumathi for their sympathetic ear. I could not have completed this book without
the support of my friends with whom I do multiple conversion projects - Ramana
Vadlakonda, Epparla Reddappa, Mukesh Madasu, Rudrashetty Ranjit Kumar, Mohamed
Naja (JKIT - Sri Lanka), Garapati Rama Krishna, Somanchi Srinivas, Gulla Karthik,
Patlavath Hemla Nayak for enlightening me on different areas of SAP S/4HANA. My Son,
Ravi Rama Sai Raghavan working on S/4HANA, helped me with reading and suggesting
and adding points to my initial draft.
Finally, I sincerely thank S. Chandhra Shekar Reddy and R. Gayathri Bhanu, CMA
who reviewed this book and for their recommendations wherever necessary. I thank my
brother RVSSV Somayajulu for his blessings to complete this activity.

xvii
Preface
While working as an SAP S/4HANA conversion and upgrade architect, I began to
recognize the importance of having a document that includes an overview of the
S/4HANA conversion process.
This book is an overview of the SAP S/4HANA conversion process, written for
functional consultants who are working on SAP S/4HANA conversion projects. When I
was working on the SAP Simple Finance Migration Project in 2015 and the SAP S/4HANA
conversion in late 2015, I felt I did not have enough information about the conversion
process. Today, there are many SAP help documents available. I felt that providing an
overview of SAP S/4HANA conversion would help SAP S/4HANA consultants with their
current or upcoming conversion projects. This book also has information about CVI
(Customer Vendor Integration). So, Finance, SD, and MM consultants will get a good
overview of the CVI process.
An important aim of the book is to provide an overview of the key areas of
conversion. I presented the information in eight chapters. In addition, Chapter 9
includes a sample tasksheet for a conversion project.

O
 verview of the Book
The first chapter provides an overview of SAP S/4HANA and its different deployment
options. The second chapter provides information on planning for SAP S/4HANA. This
will help readers plan for their conversion projects. Chapter 3 provides an overview
of the SAP S/4HANA conversion tools (technical and functional). Chapter 4 helps FI,
MM, and SD consultants understand Customer Vendor Integration (CVI). Chapter 5
explains how to prepare the system. It covers four important topics that are related to the
conversion project—an overview of the discovery activities before starting preparation
activities for conversion, how to fix financial inconsistencies before conversion, the
preparation phase and SI checks execution (functional), and important checks in
FI-­GL before conversion to the ECC system. Chapter 6 discusses how to prepare for the
conversion of SAP ECC Asset Accounting to SAP S/4HANA New Asset Accounting

xix
Preface

Chapter 7 covers other preparation activities, including credit management

preparations for conversion, material ledger preparation for conversion, actual
costing preparation for conversion, trade finance preparation for conversion, revenue
recognition preparation for conversion, and classic cash management preparation
for conversion. Chapter 8 covers the SAP S/4HANA conversion cockpit. It has three
subtopics—preparation and migration of customizing, data migration, and the three
activities after migration. Chapter 9 provides an overview of the conversion tasks.

xx
Introduction
As per the SAP announcement, mainstream maintenance of SAP Business Suite 7
applications will end by 2027. Optional extended maintenance will end by 2030.
Consequently, SAP ECC customers are preparing for a digital transformation. They
understand the importance of moving to SAP S/4HANA. Many SAP ECC customers
have attended the SAP S/4HANA movement program to explore different aspects and to
finalize the process of moving to SAP S/4HANA.
Every SAP customer has a unique set of challenges and goals. They must consider
these challenges during their plan to move to SAP S/4HANA. Experienced SAP
S/4HANA conversion architects can help SAP ECC customers design their move to SAP
S/4HANA. S/4HANA conversion architects can define the best fit strategy for customers
after analyzing their systems. The SAP S/4HANA system conversion path allows
customers to convert their existing ECC systems to SAP S/4HANA
SAP S/4HANA conversion is a complete, technical, in-place conversion of current
SAP ECC systems to SAP S/4HANA. Without re-implementation, customers can change
their SAP ECC system to an SAP S/4HANA system. The conversion process migrates the
ERP data model into the SAP S/4HANA data model. It changes the SAP ECC functional
core to an SAP S/4HANA application core. As of now, it is not mandatory to migrate SAP
GUI to SAP Fiori apps. Customers will be able to do this selectively in a later step.
During conversion, the special tables will be converted to transparent tables. The
standard code will be automatically adjusted to switch from calling the special tables to
calling the transparent tables. Secondary indexes will be dropped during the conversion
process. Indexes are usually not needed in SAP HANA. If any of the existing Z code refers
to them, you must adjust that code to be able to work on SAP S/4HANA. SAP Clients
have to make their own checks and adjust their code where necessary. If existing custom
codes refer to a standard table that has been removed, SAP provides views for those
obsolete tables. This means the existing Z code will still work and will just use the view.
There are SAP tools that ca accelerate and automate the code review to make sure
nothing is lost. The ABAP Code Inspector will help programmers choose the type of
checks they want to do.
For example:

xxi
Introduction

• You can use it to find pool and cluster tables.

• You can ask the program to show where you used SELECT *.

• You can use it to identify bottlenecks.

You can also identify code that is rarely used or not completely used (i.e., dead code).
The SAP Readiness Check helps SAP ECC customers plan their transition to SAP
S/4HANA and provides them with an overview of the current system’s readiness to
convert as SAP S/4HANA. It also provides consultants with all the information needed
to understand the system to be converted. This tool also provides several aspects of the
conversion project.

xxii
CHAPTER 1

An Overview of SAP
S/4HANA
SAP S/4HANA is the next generation of SAP business suite software. It is the digital core
of your organization and is designed to run an intelligent enterprise. Many SAP ECC
customers are planning their transitions to SAP S/4HANA. Many SAP ECC customers
aren’t sure which deployment option to use in order to move to SAP S/4HANA. There
are three different approaches for moving to SAP S/4HANA. You must consider the
different scenarios and choose from the three deployment options—on-premises, cloud,
and hybrid.
This chapter covers two broad deployment options—cloud and on-premises. These
two options differ in terms of the degree of standardization and the degree of flexibility.
The on-premises option is not as flexible and the level of standardization is higher with
the cloud version. Every customer has to decide based on their own preferences and
their flexibility and standardization needs. SAP recommends more standardization, as it
reduces the total cost of ownership in the long run.

C
 loud Options
This section covers the SAP S/4HANA cloud options.

RISE with SAP S/4HANA Cloud

This “public cloud” solution (previously called SAP S/4HANA Cloud, Essentials Edition)
is highly standardized. Services are delivered to customers over a network generated
from a multi-tenant server. “Multi-tenant” means that two or more tenants (customers)
share the bandwidth of one server. This multi-tenant server resides in an SAP data
center. Your cloud provider (SAP) is responsible for maintaining the technical backend of

1
© Ravi Surya Subrahmanyam 2022
R. S. Subrahmanyam, SAP S/4HANA Conversion, https://doi.org/10.1007/978-1-4842-8091-1_1
Chapter 1 An Overview of SAP S/4HANA

the system and for running your software service in the server where your tenant resides.
RISE with SAP S/4HANA Cloud has the fastest innovation, meaning regular release
cycles, where new features and enhancements are released. SAP maintains customers’
systems with bi-weekly hotfixes and installs the release upgrades to customer systems on
a defined release schedule.
RISE with SAP S/4HANA Cloud has the lowest total cost of ownership (TCO), due
to its increased standardization. The solution is delivered with the RISE with SAP
business transformation services. If you have subscriptions to multiple solutions in
addition to SAP S/4HANA Cloud (e.g., SAP SuccessFactors, SAP Concur, etc.), you will
have an individual tenant for each software server that may or may not reside in the
same data center as your SAP S/4HANA Cloud ERP solution. An existing ECC system
cannot be moved to RISE with SAP Public Cloud. This solution is suitable only for new
implementations.

RISE with SAP S/4HANA Cloud, Private Edition

RISE with SAP S/4HANA Cloud, Private Edition is a cloud solution with the full SAP
S/4HANA on-premises scope. It has the elasticity, resilience, and TCO of a cloud
infrastructure. Existing SAP ECC customers can convert their SAP ECC systems to a RISE
with SAP S/4HANA Cloud, Private Edition. New customers can also choose this option
for their new implementation. RISE with SAP S/4HANA Cloud, Private Edition is suitable
for new implementations and for system conversion.
Customers have full access to the extensibility framework; it also supports in-app
and side-by-side extensions in addition to code enhancement and modifications.
Expert configuration is possible with full IMG access, and the operating expense model
is subscription-based. The solution is inherently deployed with SAP HANA Enterprise
Cloud to provide a private cloud infrastructure and technically managed services.
However, customers can choose where their solution is hosted: on an SAP data center
or a hyperscaler data center. Hyperscaler data center providers include Alibaba Cloud,
Microsoft Azure, Google Cloud Platform, and Amazon Web Services. SAP S/4HANA
Cloud, Private Edition is delivered with RISE with SAP services in addition to the core
ERP scope to support a customer’s business transformation to the cloud. All services—
from RISE to infrastructure management, to the core software—are delivered under one
contract with SAP. Even if your solution is in a hyperscaler data center, all services are
under one contract with SAP.

2
 Chapter 1 An Overview of SAP S/4HANA

Key Features
Key features of the SAP S/4HANA Cloud, Private Edition, include the following:

• Full functional S/4HANA scope

• Existing ECC system can be moved to the Cloud Private Edition

• Safeguards prior investments into SAP systems

• Flexibility and extensibility

• Access to the S/4HANA extensibility framework

SAP S/4HANA Cloud, Extended Edition

SAP S/4HANA Cloud, Extended Edition is a cloud solution based on standardized
business processes, but also includes the extensibility and geographical reach of the
SAP S/4HANA on-premises solution. Services are delivered to customers over a private
network protected by a firewall from a single-tenant server. “Single tenant” means that
only one tenant (customer) uses the storage and bandwidth of one server. This single-­
tenant server can reside in your own data center, or in a data center owned by a vendor.
SAP S/4HANA Cloud, Extended Edition has semi-annual (twice yearly) upgrades and
is hosted in SAP’s private, managed cloud, the SAP HANA Enterprise Cloud (HEC). SAP
S/4HANA Cloud, Extended Edition is well-suited for customers that require specific
functionality, broader extensions, and deeper configuration capabilities in a dedicated
cloud environment. Additional capabilities are allowed, because a customer is the only
tenant on the server. As a cloud solution, it is also easily scalable and has a low total cost
of ownership (TCO).

Key Features
Key features of the SAP S/4HANA Cloud, Extended Edition include the following:

• Standardization, functional scope, and extensibility

• Semi-annual upgrades

• Configurable and customizable processes

• SAP S/4HANA Extensibility Framework and extensions via SAP Cloud

Platform (SCP)

3
Chapter 1 An Overview of SAP S/4HANA

• All industries supported

• Low TCO and fast time to value

• Subscription licensing

On-Premises Options
SAP S/4HANA on-premises is suitable for customers that require maximum control
of their SAP systems. It can be hosted usually in your own data center or with an IaaS
provider. This solution is best for customers who want full control and ownership of their
application and landscape. It provides a broad level of functionality with a maximum
degree of flexibility in customization.
Customers can configure, extend, and modify their software, with full access to
the SAP HANA database and development tools. SAP S/4HANA on-premises has an
annual release cycle, where customers can choose to adopt new innovations on their
schedule. Customers can choose to deploy the SAP S/4HANA solution in their preferred
infrastructure, with varying degrees of maintenance responsibilities depending on the
infrastructure selected. SAP S/4HANA has perpetual licensing when deployed on-­
premises in a customer’s own data center. It’s subscription-based or bring your own
license (BYOL) when deployed on the SAP HANA Enterprise Cloud or a third-party
hyperscaler (e.g., Microsoft Azure, AWS, and Google Cloud Platform).

SAP S/4HANA Hosted in the Customer’s Data Center

This is the classic “on-premises” deployment option, where the customer has their own
hardware and is responsible for maintaining its infrastructure, including purchasing,
installing, configuring, and managing the software.

 AP S/4HANA Hosted by an IaaS Provider (Hyperscaler)

S
Data Center
The SAP S/4HANA on-premises solution is hosted in a non-SAP infrastructure as
a service (IaaS) provider data center (private cloud). We refer to these third-party
IaaS providers as hyperscalers. They deliver a computing infrastructure, provisioned
and managed through the Internet. The Infrastructure as a Service (IaaS) provider is

4
 Chapter 1 An Overview of SAP S/4HANA

responsible for maintaining the infrastructure, and the customer is responsible for
purchasing, installing, configuring, and managing the software hosted in the cloud
(operating systems, middleware, and applications).

 AP S/4HANA Hosted in SAP HANA Enterprise Cloud (HEC)

S
in an SAP Data Center
The SAP S/4HANA on-premises solution is hosted in a private, SAP-managed HANA
Enterprise Cloud and deployed on an SAP data center. SAP HEC is an IaaS platform
with managed services delivered by SAP to support SAP applications and solutions. The
managed services include coordination and management of the entire cloud solution
landscape, including infrastructure, systems, technology, and applications.

 AP S/4HANA Hosted in SAP HANA Enterprise Cloud (HEC)

S
in a Hyperscaler Data Center
The SAP S/4HANA on-premises solution is hosted in the private, SAP-managed HANA
Enterprise Cloud, which is deployed on a hyperscaler data center. SAP provides
customers who choose this option with the same comprehensive managed services for
HEC in a non-SAP data center as HEC in an SAP data center. SAP operates and manages
the customer’s SAP systems in the HEC private, managed cloud with the IaaS provider of
their choice. This is all under one contract with comprehensive responsibility.

Choosing a Deployment Option

The path/approach you choose to move to SAP S/4HANA is one of the key factors that
influences your choice of deployment. There are three different approaches to moving to
SAP S/4HANA:

• New implementation

• System conversion
• Selective data transition

Which approach is right for you?

5
Chapter 1 An Overview of SAP S/4HANA

System conversion should be considered when:

• The business is focused on incremental innovation projects.

• The IT software landscape requires the retention of past

customizations.

• All data needs to be retained.

A new implementation should be considered when:

• When existing business processes do not support long-term

strategies.

• The business wants to standardize on SAP Best Practices packages.

• The existing system does not meet the SAP S/4HANA conversion
prerequisites. (The system is not technically and functionally fit for
conversion.)

Organizations using other than SAP will consider this option to move to SAP
S/4HANA. Customers running SAP ECC Business Suite and want to move to SAP
S/4HANA can also consider this option in order to completely redesign their processes.
The selective data transition option should be considered when:

• The business needs to go live in phases.

• Existing SAP ERP instances need to be split or merged.

• You want to migrate only specific years of data or specific

company codes.

SAP S/4HANA Move Planning Tools

There are different tools that simplify your journey to SAP S/4HANA:

• SAP Readiness Check for SAP S/4HANA

• Process Discovery Transformation (SAP Business Scenario

Recommendations)

• SAP Transformation Navigator

• SAP Fiori App Recommendation Report

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 Chapter 1 An Overview of SAP S/4HANA

SAP Readiness Check for SAP S/4HANA

The SAP Readiness Check is one component of the RISE with SAP services for a system
conversion to RISE with SAP S/4HANA Cloud, Private Edition. It assesses the functional
and technical aspects of the existing SAP ECC system to convert it to SAP S/4HANA. This
assessment provides insight into mandatory application changes, and potential impacts
are detailed in relevant simplification items along with conversion prerequisites, such
as the compatibility of existing add-ons and business functions. The tool assesses the
many functional and technical aspects to identify system readiness for conversion. For
example, custom-code compatibility, system sizing and data volume management,
inconsistencies in financial data, and so on.

Process Discovery Tool

The Process Discovery Transformation tool has replaced SAP BSR (Business Scenario
Recommendations). Process Discovery is a free analysis tool. This helps SAP ECC
customers and partners drive innovation and adoption.
Process Discovery consists of two components

• Process Discovery summary

• Process Discovery solution (Spotlight)

Customers can request their own Process Discovery. Refer to SAP Note 2758146 and
SAP Note 2745851. The analysis in the online solution will be delivered to customers
along with a PDF document as an executive summary.

SAP Transformation Navigator

This is a self-service tool that provides guidance for your digital transformation. It
assesses the existing landscape and industry trends. It delivers a report that contains
recommendations of the SAP products and solutions required to plan and realize your
digital strategy.

SAP Fiori App Recommendation Report

This tool provides the SAP Fiori apps that you need on an SAP S/4HANA system.

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Chapter 1 An Overview of SAP S/4HANA

Conclusions
Every customer has a unique set of goals and challenges when considering their move to
SAP S/4HANA. The SAP Move program is designed to support customers in moving to
SAP S/4HANA in the most non-disruptive way possible. SAP Partners also offer guidance
to tackle critical moments and offer customers complete control over their transition.

Overview of SAP S/4HANA

SAP S/4HANA is an integrated business suite that supports end-to-end business
processes. It helps manage employees, vendors, customers, products, accounting,
finance, logistics and more. This new business solution provides a 360-degree view of
any line of business with the support of embedded analytics; it enables users to make
faster and smarter decisions using the functionalities and capabilities of this new next-­
generation business solution.
Based on the business process, customers can implement robotic process
automation and gain benefits of that in business processes. Predefined SAP content
helps reduce the effort in customizations of ML (machine learning) models. This helps
customers jump-start intelligent technologies in almost all business processes.
In SAP ECC, the FI/CO applications were separated into two components as Finance
and Costing (Controlling/Management Accounting—CO). In SAP S/4HANA, these two
components are brought together and called SAP S/4HANA Finance.
In SAP ECC, every component had its own data model, which leads to inefficiencies
as there are integration issues. But using SAP S/4HANA, SAP S/4HANA Finance is
completely redesigned, with the inefficiencies removed. SAP S/4HANA delivers new
experiences to users with Fiori apps. This improves the efficiency and productivity
and leads to job satisfaction for the users. The data model of SAP S/4HANA has been
simplified comparatively to SAP ECC. This simplifies the application configuration,
design, and extensibility. This new solution helps with digital transformation.
SAP S/4HANA sits on SAP HANA and inherits the following capabilities:

• In-memory databases

• Data compression

• Real-time processes

• Dynamic analysis

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 Chapter 1 An Overview of SAP S/4HANA

• Integration reporting

• New user interface, called SAP Fiori

It has a simplified data model that avoids redundancy and helps reduce the data
footprint by removing unnecessary tables. It supports both OLTP and OLAP processing
from a single data model and, therefore, ETL to a separate system not needed for
reporting.

 apabilities of SAP Accounting Powered by HANA (SAP

C
S/4 HANA Finance)
SAP S/4HANA Finance, formerly known as Simple Finance, is a reworked application
code of SAP ERP Financials, primarily released around 2014. It comes with a diverse
classification of “simple” that pinpoints not only an automated but a well-structured
database and architecture. This new solution helps Finance and Accounting teams lead
the digital transformation.
In SAP ECC, SAP FI&CO was divided into two components:

• Financial Accounting (FI)

• Controlling Management Accounting (CO)

Finance and Costing have subcomponents. For example, Asset Accounting. Every
subcomponent had its own database tables and data model architecture. The SAP
ECC data model led to inefficiencies in integration and reporting. SAP S/4HANA has a
simplified model and lightweight architecture that works on such incompetence.
For instance, with SAP S/4HANA, the legal/local/internal/consolidated reporting
has been simplified. You can maintain multiple accounting principles, like US GAAP (the
United States Generally Accepted Account Principles) and IFRS (International Financial
Reporting Standards), along with local legal reporting for any country. Accounting and
Finance teams can therefore save a lot of time in maintaining books when using multiple
accounting standards.

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Chapter 1 An Overview of SAP S/4HANA

Converting an SAP ECC System to SAP S/4HANA

Existing SAP ECC customers can convert their ECC and move to SAP S/4HANA with
the following advantages. In fact, customers can change the current system into an SAP
S/4HANA system. (Database, NetWeaver, and Application Transition) in one step and
then benefit from the following:

• Conversion without re-implementation

• No disruption for existing business processes

• Revaluation of customization and existing processes

Advantages of the SAP HANA Technology

SAP HANA helps your business grow seamlessly in the digital economy. It provides key
benefits, not limited to simplification and centralization. These include ease of use,
improved speed, transition, innovation, and a cloud experience. SAP S/4HANA can
transform business and IT functions using intelligent automation, with remarkable
results:

• Reduce your data footprint

• Choice of deployment

• Large data sets can be worked on at one time

• Increased performance

• Simplified infrastructure

• Embedded analytics

Advantages of SAP S/4HANA

Improvements in the Data Model
Modeling refers to an activity of filtering or cutting data in database tables by forming
information that portrays a business scenario. You can use this information for any
reporting and decision-making purposes in your management and integrated business

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 Chapter 1 An Overview of SAP S/4HANA

departments. A data model is a relation between the set of tables and the tables that
are used. A simplified data model means that the tables and their sets are simplified.
Further, a few improvements in S/4HANA data model are

• Use of columnar tables

• Fewer indices and aggregation tables

• ACDOCA – universal journal entry table

The concept of UJE was first launched with SAP S/4HANA Finance. With every
product, it gets better. With eliminated data, it has reduced footprints and table designs.
It is one database table that includes fields from submodules. For example, CO, AA,
ML, COPA. It has more than 360 fields related to such submodules, making integration
simpler for multi-dimensional reporting.
It stores old data from FAGLFLEXT and FAGLFLEXA and Index Table values are
stored in ACDOCA. It stores actual data.

Advantages of the New Data Model

• It is a single source of truth for all accounting-integrated components.

• It is a simple but complete data model.

• It combines and complements the best qualities of all accounting

components.

• It provides a non-disruptive simplification.

Figure 1-1. The ACDOCA table

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Chapter 1 An Overview of SAP S/4HANA

P
 lanning Table
ACDOCP is for planned data. (See Figures 1-1 to 1-3.) Planning is one of the key
processes in Controlling. Since Version 1610, it has been possible to store the plan results
in the ACDOCP table. ACDOCP has the same structure as the ACDOCA table.
Transactions that have been removed but are frequently used can still be used in SAP
S/4HANA:

• KP06/KP07 (cost center planning)

• CJ40/CJ42 (overall planning on projects)

• CJR2/CJR3 (project planning)

• KPF6/KPF7 (order planning)

While you can still use old transaction codes for planning purposes, such as project
planning/cost center planning/order planning, the plan data will be stored in the old
tables, not in ACDOCP. Analytical apps that come from recent releases do not read plan
data from the classical tables, only from ACDOCP.

Figure 1-2. The ACDOCP table

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 Chapter 1 An Overview of SAP S/4HANA

Similarly, ACDOCAU is a central table for group reporting,

Figure 1-3. The ACDOCU table

Fixed Asset Accounting

Asset Accounting is a significant area of Finance. Fixed Assets represent the largest part
of the balance sheet for capital-intensive companies/industries.
Creating synergy between asset management and the general ledger is better for the
company’s balance sheet accuracy. So FI-AA Integrated Asset Accounting data is stored
in the ACDOCA table. This has eliminated many index and total tables and reduced data
redundancy. With the FI-AA integration table design, there is no need for reconciliation
between the general ledger and Asset Accounting.
After migrating from ECC to SAP S/4HANA, customers can view their data and all the
old reports will work. Previous fiscal years’ reporting is possible, as old tables become
available as compatibility views.
As a part of a period end activity, Reconciliation with Asset Accounting is not needed
any longer (see Figure 1-4).

Figure 1-4. Tcode ABST2, reconciliation for FI and AA

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Chapter 1 An Overview of SAP S/4HANA

As GL and AA post to the ACDOCA table, the ABST and ABST2 transaction codes are
no longer needed (see Figure 1-5).

Figure 1-5. Consistency check for GL and AA

Transparent Depreciation Areas

One depreciation area per valuation is needed and delta areas are no longer needed (see
Figure 1-6).

Figure 1-6. Depreciation areas

One Document per Valuation

Accounting principles are assigned to separate ledgers, so accounting principle-specific
documents will be posted for each accounting principle (see Figure 1-7).

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 Chapter 1 An Overview of SAP S/4HANA

Figure 1-7. Accounting principle-specific documents display

Ledger and Accounting Principle Postings

Transaction code AB01L can be useful for ledger/accounting principle postings (see
Figure 1-8).

Figure 1-8. Transaction AB01L

S/4HANA Cash Management

S/4HANA Cash Management helps to manage cash and liquidity. This new solution
includes Bank Account Management (BAM) and Cash Management. This application is
a big improvement over ERP. It offers a better user experience, which is based on Fiori.

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Chapter 1 An Overview of SAP S/4HANA

It includes:

• Business processes related to manual memo records

• Business processes related to check management

• Electronic bank statements

• Business processes related to bank account management

• Cash operations

• Liquidity management

Bank Relationship Management

Bank Account Management had typical pain points. For example, lack of transparency
resulting in encounters during governance and a compliance audit, unmanageable
manual management, lack of integration, and decentralized bank relation processes.
But with SAP S/4HANA, it delivers simplified regulatory reporting, shortened audit
processes, bank account rationalization resulting in reduced costs, and more.
It aids central bank accounts management. For example, workflow processes such
as bank account opening, closing, and adjustment, and analysis of cash position of bank
accounts.

Transfer Prices
A transfer price is a price that is determined when a good or service is transferred
between units of two independent organizations. The price can be market price, or cost
of goods manufactured plus markup, or a negotiated price. SAP S/4HANA introduced
the Transfer Price Solution in the core S/4HANA.

Business Partner Approach Now Mandatory

The customer/vendor master creation in XD01 and XD01 is obsolete. The business
partner approach is now mandatory in SAP S/4HANA. To maintain customer and vendor
master data, there is a single transaction code that can be cast off. The relations among
business partners and customers/vendors are mapped through different business roles
and the account group is mapped through grouping. The number range can be set as per
the requirement of the client.

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 Chapter 1 An Overview of SAP S/4HANA

A
 ccrual Engine
The accrual engine enables you to automatically calculate accruals in the general ledger.
As of SAP S/4HANA 1809, this functionality is included (see Figure 1-9).

Figure 1-9. Monitor GR/IR account reconciliation – SAP Fiori app

Monitor GR/IR Account Reconciliation is an analytical app that you can use to
analyze the GR/IR open items. For purchasing documents, such as Purchase Orders
and Delivery Notes, KPIs are displayed. When deeper analysis is needed, you can
navigate to a list of GR/IR clarification items and investigate the details or even start with
processing purchase order items that don’t match goods receipts and invoice receipts
(see Figure 1-10).

Figure 1-10. Monitor GR/IR Account Reconciliation

F lexible Workflow
This functionality that allows you to define condition-based workflows for a one-step
or multi-step approval process according to the customer’s requirements for purchase
requisitions and orders.

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Chapter 1 An Overview of SAP S/4HANA

M
 RP Live
The MRP Engine, also known as MRP Live, is MD01N. The MRP Engine reads all the
required elements and helps you take necessary actions. For example, it reads the
Purchase Order or the Stock Transfer Order and helps you procure purchase requisitions
in a single database procedure. This way, the transfer of data from the database to the
application server is reduced.

Lean Service Procurement

Lean Service Procurement simplifies the service procurement process by simplifying
the process of booking service entry sheets. There is no longer a need to create a
service master with the introduction of a new material type SERV in the material type
configuration.

OLAP and OLTP Together

These are now core business processes. They help make the processing more competent
(see Figure 1-11).

Figure 1-11. Example of SAP Fiori Analytical apps

SAP S/4HANA Financial Closing Cockpit

The Financial Closing Cockpit application is a part of complex closing processes; it’s
available in SAP S/4HANA (see Figure 1-12).

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 Chapter 1 An Overview of SAP S/4HANA

Figure 1-12. Financial Accounting Closing Cockpit screen

New Depreciation Run

In SAP S/4HANA, the depreciation screen has been simplified (see Figure 1-13).

Figure 1-13. Depreciation Run screen

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Chapter 1 An Overview of SAP S/4HANA

FI-AR Based Credit Management Is No Longer Recommended

In SAP S/4HANA, the FI-AR-CR function (Classic Credit Management) is no longer
available. It has been replaced with the functional SAP FSCM-based Credit Management
(FIN-FSCM-CR).

SAP S/4HANA Sales

Before SAP S/4HANA, there were many pain points in the ERP platform, including the lack
of real-time reporting, visibility through the entire process, and efficient and effective work.
But with the flexible data model simplification, the document flow has been simplified.

Simplified Areas in SAP S/4HANA Sales

• The Business Partner approach replaces the ECC (ERP) SD
customer master.

• FI-AR-CR Credit Management has been replaced with SAP S/4HANA

Finance Credit Management.

• SAP SD Foreign Trade has been replaced with SAP S/4HANA

International Trade Management.

• Financial Documents have moved from SD-FT to Trade Finance in

Treasury and Risk Management.

• ERP SD Rebates has been replaced with SAP Condition Contract

Settlement.

• SD-BIL-RR Revenue Recognition has been replaced with SAP

Revenue Accounting.

• ERP LIS/ODP has been replaced with SAP S/4HANA Analytics:

ODATA and Open CDS views.

Foreign Trade
The areas that were covered in GTS include

• Document payment

• Compliance for export procedures

• Preference management
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 Chapter 1 An Overview of SAP S/4HANA

SAP GTS should be used instead of the classical Foreign Trade functionality, which is
not available in SAP S/4HANA. The functionalities that are covered in SAP S/4HANA are:

• International trade compliance

• International trade classification

• Integration with SAP global trade services

• Integration with SAP watch list screening

• Intrastat

Revenue Recognition
SD Revenue Recognition is not available in SAP S/4HANA. It has been replaced with the
new functionality—SAP Revenue Accounting and Reporting (RAR).

Financial Consolidation Through Group Reporting

This new functionality supports Financial Consolidation. As different ERPs, local
accounting standards, currencies, and so on, play a significant role in large companies/
industries that have several objects, this is a compulsory exercise. Group Reporting
supports computation and disclosure of consolidated reports and gives you data
regarding the company performance and its corporate compliance.

SAP Fiori Apps

SAP Fiori is the user experience that replaces the classic SAP GUI. It provides capabilities
to users to customize and adjust the screens that are used regularly in business function
workflows. Fiori apps can be accessed through mobile phones, desktops, and tablets.
The types of Fiori apps are as follows:

• Transactional

• Analytical

• Factsheet

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Chapter 1 An Overview of SAP S/4HANA

SAP S/4HANA Deployment Options

A simplified data model and a new user experience accompany the cloud and on-­
premises deployment models. You get cloud as a consistent solution, comparatively
with the SAP S/4HANA on-premises solution via subscription model license. The SAP
S/4HANA Cloud Public Option has standardized business processes and may not
allow customers to do changes extensively. The Private Cloud option leverages the full
functional scope and extensibility.

Conclusions
In SAP S/4HANA, the main and core processes have not changed much. Rather they
are optimized to support the business operations. This change helps with digital
transformation. This transformation brings changes in the way they are executed. This
brings improvement and efficiency of all lines of business operations.
Nowadays companies are keen to improve and optimize core processes and want
to explore new business models. SAP S/4HANA supports this very easily. With SAP
S/4HANA, top management can focus on core operational processes and need not worry
about day-to-day operations.
The simplifications and innovations in the core business processes help
management with critical business processes in all lines of business, including finance,
sales, service procurement, manufacturing, supply chain and asset management,
research and development, human resources, and so on. SAP S/4HANA provides a better
view of any line of business with real-time data.
The important areas of simplification are inventory management, material
requirements planning, capacity planning, sales and distribution, and procurement.
This new version supports digital trends such as the IoT and business networks.
Logistics areas have been simplified, especially in three core areas: Plan-to-Product,
Order-to-Cash, and Procure-to Pay.
Some of the components have been rearchitected;

• Material Requirements Planning

• Inventory Management

• Material Valuation (integrated to FI)

Last but not least, a unified core helps customers in many areas.

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 Chapter 1 An Overview of SAP S/4HANA

Cloud computing provides different services, such as data storage, networking,

security, software applications, and BI, through the Internet and based on the
subscription. This provides beautiful response times, data storage, reliability, security,
flexibility, and lower IT costs.

Advantages of Cloud Computing

• Reliable
• Flexible

• Low investment

• Up-to-date technologies

Types of Cloud Computing Services

• Software-as-a-service (SaaS)

• Platform-as-a-service (PaaS)

• Infrastructure-as-a-service (IaaS)

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CHAPTER 2

Planning for a Conversion

to SAP S/4HANA
This chapter discusses the value of SAP S/4HANA, as creating a business case is the
first step in a move to SAP S/4HANA. The SAP S/4HANA Solution Architect helps you
perform a readiness check to verify various aspects and identify readiness of the current
SAP ECC system so it can be converted to SAP S/4HANA. SAP S/4HANA architects work
on multiple aspects during this check.

• Analyzing the existing SAP ECC system

• Verifying the conversion readiness

• Checking the consistency of the transaction data

• Checking for custom code adaptability

A well-structured business case is the foremost task of SAP S/4 HANA conversion. It
is the best way to prove to customers and all the stakeholders that the product they are
planning is a good investment.
The business case shows important business benefits of their proposed investment.
The IT team can justify the proposed initiative by showing these business benefits to the
CFO and COO.
This chapter discusses some of the tools needed to create a business case for
SAP S/4HANA

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© Ravi Surya Subrahmanyam 2022
R. S. Subrahmanyam, SAP S/4HANA Conversion, https://doi.org/10.1007/978-1-4842-8091-1_2
Chapter 2 Planning for a Conversion to SAP S/4HANA

SAP Readiness Check for SAP S/4HANA

An SAP Readiness Check verifies the readiness of various functional and technical
aspects of the existing source system. This tool helps identify the aspects needed for
system conversion. The most important issue for finance consultants is the quality of the
financial data. The Readiness Check helps finance consultants work on inconsistencies
in the finance data before they start the project.

H
 andling Inconsistencies
Run the FIN_CORR_MONITOR report provided by SAP or contact SAP for further help, if you
cannot fix the inconsistencies. SAP will fix those errors only in the production system.
Once SAP fixes those issues on the PRD, you need to copy them again to the sandbox
system to perform the first conversion.
The SAP Readiness Check is a scientific system analysis. It is the foundation of
planning the SAP S/4HANA project. This check verifies software prerequisites, technical
requirements, functional implications, custom code data inconsistencies, and more.

Generating the SAP Readiness Check 2.0

Refer to and install the following SAP notes as needed:

• 2913617 - SAP Readiness Check for SAP S/4HANA

• 2758146 - SAP Readiness Check for SAP S/4HANA & Process

Discovery (evolution of SAP Business Scenario Recommendations)
or SAP Innovation and Optimization Pathfinder

• 2968380 - SAP Readiness Check Report 2.0 - Troubleshooting Guide

Execute the following program after installing the required SAP notes (see
Figures 2-1 and 2-2).

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 Chapter 2 Planning for a Conversion to SAP S/4HANA

Figure 2-1. Generating the Readiness Check through the RC_COLLECT_

ANALYSIS_DATA program

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Chapter 2 Planning for a Conversion to SAP S/4HANA

Figure 2-2. Executed RC_COLLECT_ANALYSIS_DATA program

Here are the jobs to be executed:

• RC_COLLECT_ANALYSIS_DATA is the main job to collect the

analysis data
• TMW_RC_INNOVA_DATA_COLL is the innovation potential

• TMW_RC_BPA_DATA_COLL collects Business Process Analytics data

• TMW_RC_DVM_DATA_COLL collects Data Volume Management data

• TMW_RC_HANAS_DATA_COLL collects HANA sizing data

• TMW_RC_SITEM_DATA_COLL collects Simplification Item Relevance

check data

• TMW_RC_EFD_DATA_COLL is the Effort Drivers of Simplification Items

• /SDF/HDB_SIZING_SM collects data for sizing

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 Chapter 2 Planning for a Conversion to SAP S/4HANA

• TMW_RC_FDQ_DATA_COLL collects the financial data for the

consistency check

• BO APPLICATION ANALYSIS 01 collects DVM triggers for TAANA and

DANA analysis

• FIN_CORR_REC_ANALYSIS_2021_2020 runs the finance

consistency checks

Generate the Readiness Check Results dashboard (https://rc.cfapps.eu10.hana.

ondemand.com) and then choose Start New Analysis (see Figures 2-3 through 2-5).

Figure 2-3. Readiness Check – New Analysis

Figure 2-4. Readiness Check – Create Analysis

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Chapter 2 Planning for a Conversion to SAP S/4HANA

Figure 2-5. Readiness Check – Analysis Preparation

Once the analysis is in the ready state, open the analysis and use the ZIP file
generated from the SYCM_DOWNLOAD_REPOSITORY_INFO program (see Figure 2-6).

1. Click the Update Analysis icon in the top right.

2. Browse.

3. Select the earlier saved file.

4. Click Update.

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 Chapter 2 Planning for a Conversion to SAP S/4HANA

Figure 2-6. Update analysis

T ool 2: Process Discovery (Formerly Known as SAP

Business Scenario Recommendations)
This report provides insights and tailored SAP S/4HANA recommendations. SAP
ECC clients will appreciate this report, as it shows the business benefits of SAP
S/4HANA. Refer to SAP Note 2758146 - SAP Readiness Check for SAP S/4HANA and
Process Discovery (evolution of SAP Business Scenario Recommendations) or SAP
Innovation and Optimization Pathfinder.
Customers can also plan their move to SAP S/4HANA using the following:

• SAP Readiness Check for SAP S/4HANA

• SAP Transformation Navigator

• SAP Enterprise Support Value Map for SAP S/4HANA

• SAP Value Assurance Service Packages

• Maintenance Planner

• SAP Innovation and Optimization Pathfinder

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Chapter 2 Planning for a Conversion to SAP S/4HANA

An Overview of the Custom Code Analysis

As part of the SAP S/4HANA simplification process, you can see many simplified
repository objects. The Z programs that access these repository objects may have an
impact and may need attention to verify and adapt, so that they work after system
conversion. There is an FAQ site about the amount of adaption. Clients frequently ask
how much time and effort is needed for adoption. This depends on the impacted items
in the current system and how your Z programs use the objects. So you must do a custom
code analysis before you start the conversion (SUM).
Repository objects that have existed for a long time in SAP ECC will be removed
in SAP S/4HANA (for example, GLT0_AEDAT). Access to such repository objects in Z
programs will lead to syntax errors during activation.
Deleted programs or transactions with custom code must be adjusted (for example,
Transaction Code MB11). They no longer exist in S/4HANA. SAP recommends user
MIGO. Programs that access obsolete programs or transaction codes will be terminated
and need to be adjusted.

Custom Code Analysis and Adoption

When you use the SAP HANA database for an ABAP system, many features are different
in SAP HANA. Three features in particular have an impact on the way consultants write
ABAP programs:

• Column store

• Compression

• Parallel processing

There are changes in SAP S/4HANA. For example:

• De-pooling and de-clustering

• Deactivation of secondary indexes, which prevents unnecessary

memory consumption

These changes impact the custom code, directly or indirectly. One change is that you
cannot rely on a specific sort order in a SELECT result, unless the programmer explicitly
requested such a sort order using the addition of an ORDER BY clause. If a piece of code

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works properly only when the result of a SELECT statement is implicitly ordered, the code
must be adjusted.

• During conversion, all the standard SAP objects are either

upgraded or deprecated based on the latest business processes and
programming standards.

• Some of the custom objects developed are not handled automatically

in the conversion process.
• You must ensure that custom objects are still working after the
conversion process and/or adapt them to the new environment
if needed.

So, you might wonder, can’t the upgraded system take care of the custom objects
developed in the earlier versions? The upgraded system will surely take care of and
execute the custom objects developed in the earlier versions, but the new system has
many additional features and standards and the earlier objects should be adapted to
these new features.
Since many standard objects are either upgraded or deprecated, it is necessary to
perform a check that confirms the custom objects are aligned and adapted to the new
environment.
This process of checking, confirming, and aligning custom objects to the S/4
HANA environment is called custom code migration and it’s a mandatory activity in the
conversion process.
Here are the phases during which these activities are performed:

• Custom Code Adaptation is performed at the realization phase after

successful execution of SUM.

• SAP also recommends an optional activity, called Custom Code

Analysis. This activity is done at the preparation phase, before the
execution of SUM. It’s optional and is done only to estimate the effort
needed for custom code adaptation.

• Using Custom Code Analysis, the scope of the custom code

adaptation can be determined, and hence the effort can also be
determined.

• Unused programs can be listed and stopped from being migrated to

the converted system.
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Chapter 2 Planning for a Conversion to SAP S/4HANA

Determine whether a custom object should be adapted:

• To check whether objects in the system need an adaptation, SAP

provides a package called Simplification Database.

• This package can be downloaded from the SAP marketplace. It

contains all the checks and possible suggestions/notes for the errors
in the custom objects developed in the earlier versions.

• This simplification database should be imported into the new

upgraded S/4 HANA system.

• Checks are then configured and monitored to analyze the custom

code and adapted as required.

Follow these steps to configure and monitor the custom code checks against the
simplification databases:

1. Download the latest version of the simplification database from

the SAP marketplace (available as a ZIP file).

2. Import the ZIP file into the converted S/4 HANA system using
transaction SYCM.

3. The contents of the simplification database can also be displayed

in SYCM.

4. Once the contents are displayed successfully, the checks should

be configured. This is done through the transaction ATC.
5. The list of custom objects to be checked and the variant against
which the checks are done can be selected in the ATC transaction.

6. After selecting the required fields, the checks can be scheduled

and monitored (and the results can be displayed).

7. Quick fixes are then applied based on the error description and
possible suggestion/note.

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 Chapter 2 Planning for a Conversion to SAP S/4HANA

How Custom Code Analysis Is Performed

Since this activity is performed before the conversion, you must have another system
that is already on the target version of the S/4 HANA.

• Checks are done by this S/4 HANA system and hence it is called the
central check system.

• The system that is being converted is called the checked system.

• The central check system should be equipped with the latest version
of the simplification database.

• The ATC configuration is then done in the central check system and
monitored for results.

• No fixes are done during this activity.

• Only the unused objects are identified and stopped from being
migrated in the conversion process.

• SAP recommends this activity to be performed, as the scope of the

custom code adaption can be determined.

How the central check system and checked systems are linked:

• A link is established between the two systems using RFC connections

in SM59.

• The central check system should be able to log in to the checked

system using a connection without a login dialog.
System requirements of the central check system and checked system:

• There are many roles and authorization objects that are assigned to
the central check and checked systems. For instance:

• The latest version of the simplification database should be

imported to the central check system.

• The SAP user ID used to configure ATC runs in the central check
system and should have the SAP_SATC_ADMIN role.

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Chapter 2 Planning for a Conversion to SAP S/4HANA

• The authorization object S_YCM should have a value of SDB for

the SYCM_AREA authorization field and a value of UL for the ACTVT
authorization field.

• The SAP_BASIS component in the central check system should be

7.52 (or higher).

• The RFC user of the checked system should have the S_RFC and
S_DEVELOP authorization objects.

• There are notes to be applied to the central check system

(2436688, 2364916) and the checked system (2485231, 2270689,
2190065).

Tools for Custom Code Analysis

Tool for Identifying Unused Custom Code: SCMON
The SCMON transaction is used to identify the frequency at which an object is executed.
Objects that are not used for many days (more than a year) can be considered unused/
not suitable for the business process. These custom objects can be stopped from being
migrated during the conversion process.
Transaction SCMON:

• Decide on a period (time duration) for analysis and activate the call
monitor for that period.

• Deactivate the call monitor after the period is complete.

• Display the data collected by the call monitor (see Figure 2-7).

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 Chapter 2 Planning for a Conversion to SAP S/4HANA

Figure 2-7. ABAP Call Monitor

Extended Program Check-SLIN

Code Inspector -SCI
In the earlier versions of SAP, SLIN was used to check a single repository object. Later,
SCI was introduced, which could handle multiple repository objects. In the latest
versions, SAP introduced ATC, which is used to schedule the checks in the background
and monitor them. It is also used to perform checks on remote systems along with the
local system.
For example, whenever ATC is used, the scope of the usage should be determined i.e.,
whether the checks are done locally or on remote systems. This is specified in the system
role (see Figure 2-8).

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Chapter 2 Planning for a Conversion to SAP S/4HANA

Figure 2-8. ABAP Test Cockpit

Inside the system role, click the Change Option. Select the ATC Check Using Object
Providers radio button (see Figure 2-9).

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 Chapter 2 Planning for a Conversion to SAP S/4HANA

Figure 2-9. System Role

Save the change and come back to the ATC Transaction home screen. The next step
is to specify the check variant (the list of checks against which the objects are checked).
This is done in Basic Settings. Double-click the Basic Settings option under the Setup
menu (see Figure 2-10).

Figure 2-10. ABAP Test Cockpit - Basic Settings

DEFAULT is the predefined check variant that is maintained. But you can select a
required variant from the drop-down list as well. It is best to select variants specific to
the S/4 HANA version you are migrating to. For example, for a system migrating to S/4
HANA 2020 uses the S4HANA_READINESS_2020* variant (see Figure 2-11).

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Chapter 2 Planning for a Conversion to SAP S/4HANA

Figure 2-11. Basic settings

Save the changes and go back to ATC home menu. If ATC is done for remote checks,
the object providers should be specified. The object provider is the RFC destination of
the system that is being checked by ATC.
Click Object Providers in the ATC Menu (see Figure 2-12).

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 Chapter 2 Planning for a Conversion to SAP S/4HANA

Figure 2-12. ABAP Cockpit Object Provider

Maintain System Group Information

Click Change Icon and add a new entry. Enter an ID and a description (see Figure 2-13).

Figure 2-13. System Group

Save the entry and then click RFC Object Provider. Then enter an ID, a description,
and RFC destination details. ATC is used for remote checks (see Figure 2-14).

Figure 2-14. RFC Object Providers

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Chapter 2 Planning for a Conversion to SAP S/4HANA

Save the entry and come back to ATC menu screen. The next step is to schedule ATC
runs. Double-click Schedule Run from the ATC home menu (see Figure 2-15).

Figure 2-15. ABAP Cockpit Schedule Runs

Click the Create button to create a new run series (see Figure 2-16).

Figure 2-16. Schedule Run Series

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 Chapter 2 Planning for a Conversion to SAP S/4HANA

A pop-up appears. Enter a series name and click Confirm (see Figure 2-17).

Figure 2-17. Run Series Name

Provide a check run description and select a required check variant. Provide the
list of objects to be checked (by name, package, or type) and then click Save (see
Figure 2-18).

Figure 2-18. Browse Configuration Runs

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Chapter 2 Planning for a Conversion to SAP S/4HANA

Select the configuration. Click Schedule Series and execute. From the list, select the
newly created series name you created and click Schedule.
It will schedule a program in the background (see Figures 2-19 and 2-20).

Figure 2-19. Schedule the series

Figure 2-20. Schedule the run SERÇIES

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 Chapter 2 Planning for a Conversion to SAP S/4HANA

A background program is scheduled with the series name. The status of the
background job can be viewed in transaction SM37.
The background job runtime will depend on the number of objects selected when
configuring the run series. Once this job is finished, you can check the finding results.
The message in Figure 2-21 appears after successfully scheduling the configuration.

Figure 2-21. Run Scheduled information message

The next step is to monitor the scheduled configuration.

In the ATC main menu, double-click Monitor and Control Runs (see Figure 2-22).

Figure 2-22. ABAP Test Cockpit

Enter the run series name or execute it open wide (see Figure 2-23).

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Chapter 2 Planning for a Conversion to SAP S/4HANA

Figure 2-23. ATC runs

Select the scheduled run series. Click Display Result after the scheduled ATC run is
completed (see Figure 2-24).

Figure 2-24. ATC Run Monitor

The results are displayed in statistical views. You can view them in different formats
by drilling down using the Choose Statistic option (see Figure 2-25).

Figure 2-25. ATC Run Monitor

Based on the results, you can analyze the objects and do the custom code adaptation
using ABAP Development Tools.

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 Chapter 2 Planning for a Conversion to SAP S/4HANA

Custom Code Adaptation

• After the system conversion is completed successfully, you need to
adapt the custom code in the upgraded system.

• SAP provides the SPDD, SPAU, and SPAU_ENH transactions, through

which you can reset or adjust to any modification done to the ABAP
data dictionary and development objects. This can happen during
and after the conversion is completed.
• A local ATC run needs to be scheduled in an upgraded S/4 system for
custom code findings. For that you need to import a simplification
database system (As in the “Central Check System” mentioned
previously, but with the system role set to Local Run.)

• Based on the local ATC run results, you need to adapt objects
that are identified by fixing them through Eclipse, ADT (ABAP
Development Tools).

• By analyzing and adapting the custom code to the new S/4 HANA
environment, it is possible for the business process to use the latest
standards of development as much as possible.

Conclusions
Custom Code Analysis and Adoption is one of the most important conversion activities.
As there are several simplifications in SAP S/4HANA, the Z custom code has to be
analyzed and adapted. If not, the custom code may not work as expected or will produce
dumps after system conversion. Every simplification item includes changes to SAP
objects and refers to an SAP Note. This SAP note shows the impact of the change and
how the related custom code must be adapted.
As a Central Check System, the SAP NetWeaver Application Server for ABAP 7.52 is
used. There are two steps in the conversion process to handle custom code:

1. Custom Code Analysis ➤ Preparation phase ➤ (Optional).

2. Custom Code Adaptation ➤ Realization phase ➤ (Mandatory).

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Chapter 2 Planning for a Conversion to SAP S/4HANA

Custom code should be adapted to the S/4 HANA environment after system
conversion. This is done after the upgrade and after adjustments are made through SPAU
and SPDD.
Prior to adapting the custom code after conversion, Custom Code Analysis can be
performed in the preparation phase to estimate the effort required for the adaptation.
This Custom Code Analysis should be done before converting the system to S/4 HANA. It
should be noted that Custom Code Analysis is only a recommendation, but Custom
Code Adaptation is mandatory.
Programming consultants working on SAP S/4HANA conversion should understand
impact of custom code on SAP S/4HANA and the need for code adaptation. They must
analyze the simplification item list and SAP notes specified by the SI check report and
the SI check catalog. Identifying unused and retired custom code is very helpful for the
customers, so they can cleanse the code before adopting unused code. It saves on time
and cost.
SAP Readiness Assessment also helps to identify custom code. You can also analyze
custom code with the Custom code Migration Fiori app, adopting code that is related
to syntax errors, simplified objects, filed length extensions, obsolete transaction codes,
obsolete programs, and obsolete database tables, which are an important part of the
custom code adaptations.
The next chapter provides an overview of the conversion process and preparations
that are needed for conversion. It also discusses tools that are needed for conversion.

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CHAPTER 3

An Overview of SAP ECC

System Conversion
This chapter provides an overview of the system conversion process and explains the
important tools that are necessary. The system starting point determines which tools
consultants have to use. Consultants should refer to SAP Help documents, SAP Notes,
and the SAP Conversion Guide while performing the system conversion.

Overview of the Conversion Process

Figure 3-1 shows an overview of the ECC system conversion process to SAP S/4HANA.

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WůĂŶŶŝŶŐ Θ ^LJƐƚĞŵ DĂŝŶƚĂŶĂŶĐĞ ƵƐƚŽŵ ŽĚĞ ^ŽŌǁĂƌĞ hƉĚĂƚĞ
^/ͲŚĞĐŬ ^ƉĞĐŝĮĐ ĨŽůůŽǁͲŽŶ
ZĞƋƵŝƌĞŵĞŶƚƐ WůĂŶŶĞƌ DŝŐƌĂƟŽŶΎ DĂŶĂŐĞƌ ;^hDͿ
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 DŝŐƌĂƟŽŶ ^ŽŌǁĂƌĞ hƉĚĂƚĞ ĂƚĂ ŽŶǀĞƌƐŝŽŶ

Figure 3-1. Overview of the conversion process

49
© Ravi Surya Subrahmanyam 2022
R. S. Subrahmanyam, SAP S/4HANA Conversion, https://doi.org/10.1007/978-1-4842-8091-1_3
Chapter 3 An Overview of SAP ECC System Conversion

The entire conversion activity can be broadly divided into two phases:

• Preparation phase

• Realization phase

SAP recommends performing the activities in this sequence, not randomly.

The Simplification Item Check report enables consultants to plan for the functional
preparation for SAP S/4HANA conversion.
The preparation phase includes these steps:

1. Readiness check and BSR and pathfinder reports for knowing

affected simplified items and mandatory changes to be performed

2. Maintenance Planner

3. SI check

4. Custom code migration

5. Cross application activities

The realization phase includes these steps:

1. SUM

2. Follow-on activities

3. Conversion Cockpit

The Preparation Phase

1. The Readiness Check
The Readiness Check gives an initial high-level impression of the conversion activity.
You may refer to SAP Note 2758146, “SAP Readiness Check.”

2. Maintenance Planner

When planning for SAP S/4HANA conversion, we can simulate this. This simulation can
help determine the planning and preparation activities of the conversion project, as we
know about business functions, add-ons, and industry solutions that are compatible
with SAP S/4HANA. It checks ECC system’s add-ons, business functions, and industry

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 Chapter 3 An Overview of SAP ECC System Conversion

solutions to ensure compatibility with SAP S/4HANA. It also creates the stack file used
for the actual SAP S/4HANA conversion process.
Maintenance Planner should be used as shown in SAP Note 2287046. It checks if
add-ons, business functions, and industry solutions are supported for the conversion.
Maintenance Planner is required to generate the XML file.
To ensure compatibility with SAP S/4HANA, it creates a stack file that is used for the
conversion process that is being done by the SUM. The Maintenance Planner example in
Figure 3-2 taken for:
Source: ECC6.0 EHP8 SIMPLE FIN 1605 >> Target: S/4HANA 1909 FPS02
If there is no availability of SOLMAN, choose the Generate System Info XML file from
SPAM and upload it to MP (see Figure 3-2).

Figure 3-2. SPAM – Utilities menu

Run the Maintenance Planner from https://apps.support.sap.com/

sap(bD1lbiZjPTAwMQ==)/support/mp/index.html (see Figure 3-3).

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Chapter 3 An Overview of SAP ECC System Conversion

Figure 3-3. Maintenance Planner’s Tasks

Figure 3-3 shows the Maintenance Planner’s Tasks:

• Synchronize the SAP system information

• Verify the SAP system

• Define the SAP system track

• Plan software change

• Schedule deployment

3. Simplification Item Check (SI Check)

The third tool is the Simplification Item Check (SI Check). Refer to SAP Note 2399707.
You can use SAP Note 2245333 for additional checks. The Simplification Item Report
for SAP S/4HANA displays the items that are relevant for current ECC source systems
to convert to SAP S/4HANA. These items will be identified by this tool based on certain
factors, such as the transaction codes and programs used, customizations, and table
contents. For functional consultants, this SI check report is the most important means of
preparing the current ECC system for SAP S/4HANA conversion. Functional consultants
will be able to filter items as optional, mandatory, conditional, and so on, to prepare the
system. This is a mandatory activity. All the errors in the report must be resolved before
executing SUM. Refer to SAP Note 2399707.

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 Chapter 3 An Overview of SAP ECC System Conversion

If you want to run the consistency check, implement SAP Note 2399707 and SAP
Note 2502552. SAP Note 2502552 is not required for SAP S/4HANA and SAP BW/4HANA
(SAP Readiness Check).
SAP strongly recommends using the production system; otherwise .the results might
not be accurate. If your system is a copy of the production system, implement SAP Note
2568736 to prepare the required ST03N data.
One issue that crops up when you use a system copy from a production system is that
the ST03N data cannot be copied to perform the check. In this case, you can utilize the
function provided with this note. Refer to SAP Note 2568736.
Update SPAM if it is lower than 71 (see Figures 3-4 to 3-6).

Figure 3-4. SPAM version

Implement SAP Note 2399707, if it’s not already implemented.

Figure 3-5. SAP Note 2399707

Use ST-PI, as shown in Figure 3-6.

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Chapter 3 An Overview of SAP ECC System Conversion

Figure 3-6. ST- PI

Refer to SAP Note 2502552.

Prerequisites:

• Follow the descriptions in the TCI_for_Customer.pdf attachment

from Note 2187425. It describes how to enable SNOTE for
implementation of TCIs, as well as how to enable SNOTE for
reimplementation of TCIs.

• Note that the TCI enablement needs to be done in every system

before a TCI can be implemented. This applies to systems where the
TCI gets implemented via transport (such as the Q or P system).

SAP Download Service (a new feature):

• The SAP Download Service is a feature of the SNOTE that allows users
to download them as digitally signed notes via SNOTE. It also allows
downloading TCI files from TCI notes automatically.

• This means that the points 5 and 6 below are not required anymore
as they will be handled by the SAP Download Service once it is
activated.

• As a prerequisite to activate the Download Service, be sure to

perform the TCI enablement before.

See Notes 2576306 and 2554853 for more information about the SAP Download
Service.

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 Chapter 3 An Overview of SAP ECC System Conversion

Generating a Simplification Item Check:

1. Implement Note 2399707, Simplification Item Check.

2. Update data using SAP Note 2568736.

3. Execute the checks in 000 for correct results and ensure SPAM
version is 71 or higher.

4. Enter T-Code SA38 => /SDF/RC_START_CHECK.

5. Once the job finishes, go back to the program and click Display
Last Test Result 4 (see Figure 3-7).

Implement 2399707 - Simplification Item Check

Figure 3-7. SAP Note 2399707

 pdate Data Using SAP Note 2568736 – SAP Readiness Check

U
for SAP S/4HANA – Copy ST03N Data
SAP Note 2399707 (minimum version 77) has also been implemented in the target
system, where the SAP Readiness Check is performed. We are at Version 147 (see
Figures 3-8 to 3-11).

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Chapter 3 An Overview of SAP ECC System Conversion

Figure 3-8. SAP Note 2568736

Figure 3-9. SAP Note 2568736 Implemented

Figure 3-10. Confirm Changes

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 Chapter 3 An Overview of SAP ECC System Conversion

Figure 3-11. SAP Note 2568736 implemented

Apply Notes 2536585, 2606986, 2615270, and 2569813 (manual steps). Ignore any
note that give a message that it cannot be implemented.
Execute the checks in 000 for correct results and ensure that the SPAM version is 71
or higher (see Figures 3-12 to 3-14).

Figure 3-12. SPAM version

Enter T-Code SA38 => /SDF/RC_START_CHECK

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Chapter 3 An Overview of SAP ECC System Conversion

Figure 3-13. Simplification Item Check

Once the job finishes, go back to the program and click Display Last Test Result.

Figure 3-14. Simplification Item Check results

During the preparation phase of the SAP S/4HANA Conversion, or during the
upgrade of the SAP S/4HANA system, you have to carefully analyze all the simplification
items. These items may impact present business processes.

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We can broadly divide these items into two categories:

• Relevance checks

• Consistency checks

It is better to read warning messages and perform activities if needed for every
application area.

4. Custom Code Analysis

As the SAP S/4HANA data model simplifies modifications, Z developments may not
work unless we adopt them. We will use the central ATC check system. Consultants need
to refer to the Custom Code Migration Guide.
Implement SAP Notes 2485231 and 2270689 in the checked SAP system. This central
check system must be SAP_BASIS 7.52 or above. SAP Notes 2436688 and 2364916 and
associated SAP Notes have to be implemented. Download and upload the Simplification
Database as a ZIP file into the central check SAP system using SAP Note 2241080.
On your system, choose transaction code SYCM ➤ Simplification Database ➤ Import
from ZIP File.

• Use transaction code ATC for analysis.

• Use Check Variant S4HANA_READINESS_REMOTE.

• Analyze results of ATC using transaction SE80.

• Choose Utilities ➤ Settings. Select ATC Result Browser and confirm.

Select the ATC Result Browser button and check the results.

You can see the SAP Readiness document for an overview of Custom Code Analysis.
If the ABAP Test Cockpit has been executed in an SAP NetWeaver 7.52 system, SAP RC
estimates the portion of findings with Quick Fix support. After executing ATC in the SAP
S/4HANA sandbox system, the SAP Readiness Check will show which findings have
Quick Fix support.
Custom code migration is one of the most important activities in system conversion,
as the source system runs will be converted to the SAP S/4HANA system. In this context,
the custom code is required to be adapted to run on HANA.
When customers move to SAP S/4HANA, a part of their custom programs may not
be needed. Consultants working on the conversion system will let customers know if an
equivalent standard program exists in SAP S/4HANA.
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SAP’s Custom Code Migration Guide describes the complete process of adaption and
tools that are necessary and activities that are to be performed. As part of preparation
of conversion, ABAP programmers analyze the customer code and plan for adaptation
of the custom code. Once the system is converted, they remove any obsolete code, as
indicated in the Usage procedure Log UPL/SCMON.
Refer to the ABAP Call Monitor SCMON to analyze usage of custom code. Also refer to
the ABAP Test Cockpit documentation.

The Realization Phase

1. Software Update Manager
Key technical stages:

• Select Upgrade/ Conversion Target: It is an uptime activity and can

be done using the Maintenance Planner.

• SAP S/4HANA Conversion: Prepare Phase: Refer to the Conversion

Guide for SAP S/4HANA at https://help.sap.com/viewer/product/
SAP_S4HANA_ON-­PREMISE/2021/en-­US?task=discover_task.

• Manual Preparation Activities: Any PREÇPARATION activities

that need to be done manually while referring to SUM Guides,
Application Guides, ASU Toolbox, and SAP Notes must be addressed.

• SUM - Perform Prepare Part

• SUM – Perform Executive Part: Includes downtime activities,

Database Migration (DMO), and SAP S/4HANA Conversion.

• Perform post update steps: Any post-update activities that need to be

done manually while referring to SUM Guides, Application Guides,
ASU Toolbox, and SAP Notes must be addressed, including downtime
activities.

• SAP S/4HANA Conversion: Follow-on activities together with

downtime activities, as mentioned in the Conversion Guide for SAP
S/4HANA.

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Software Update Manager 2.0

SUM 2.0 was introduced in 2017. The respective version for maintenance activity is
provided by the Maintenance Planner. SUM 2.0 for AS ABAP–based SAP systems targets
SAP_BASIS 7.50 or higher, while SUM 1.0 was cast off for SAP_BASIS 7.40 or lower
(i.e., for SUM 1.0 is used for dual stack, ABAP Stack, and Java Stack).

Software Logistic Tools

SAP recommends using the latest version of these tools. A few documents to refer to
include:

• SAP Note 1563579

• SAP Note 1589311

• SAP Note 2965844

• SL Toolset Blogs on SAP Community

 UM Maintenance Scenarios: Performing Steps

S
from the SUM Guide
1. Software upgrade using SUM.

2. Database migration option (DMO) using SUM.

3. System conversion to SAP S/4HANA using SUM 2.0.

Software Update/Upgrade with SUM 1.0/SUM 2.0

Upgrade/update SAP NetWeaver based systems. SUM 1.0 was cast off for SAP_BASIS 7.40
or lower (i.e., for SUM 1.0 is used for dual stack, ABAP Stack, and Java Stack).
Refer to SAP Note 2682395, Guides for SUM 1.0 SP 26, and relevant SAP Community
information.
SUM 2.0 For AS ABAP-based SAP systems target SAP_BASIS 7.50 and higher. Refer to
SAP Note 2935104, Guides for SUM 2.0 SP 10, and relevant SAP Community information.

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Database Migration Option (DMO) Using SUM

Database Migration Option (DMO) with SUM 1.0 is a combined update and migration
to SAP S/4HANA process, for target systems below SAP_BASIS 7.50. Refer to SAP
Note 2882431, Guides for DMO with 1.0 and SP 26, and relevant SAP Community
information on DMO.
Database Migration Option (DMO) with SUM 2.0 is a combined update and
migration to SAP S/4HANA process for target systems that are SAP_BASIS 7.50 and
higher. Refer to SAP Note 2976921, Guides for DMO with 2.0 and SP 10, and relevant SAP
Community information on DMO.

System Conversion to SAP S/4HANA Using SUM 2.0

System conversion as transition from an SAP ECC system to SAP S/4HANA can be done
with or without DMO; refer to SAP Note 2976884. (This note is considered the Central
SUM Note for SAP S/4HANA conversion. It contains data about manual activities,
application-specific SAP Notes, conversion paths, and DB-specific SAP Notes. It can
be accessed from https://support.sap.com/en/tools/software-­logistics-­tools.
html.) Check out the guides for DMO with 2.0 and SP 10 and relevant SAP Community
information on DMO.
For the Downtime Optimized Conversion approach, refer to SAP Note 2443938,
“Support portal on downtime optimized conversion.”
The SUM Guides can be accessed from https://support.sap.com/en/tools/
software-­logistics-­tools.html. Move to the Preparation phase through Conversion
to SAP S/4HANA with SUM for a list of manual activities that need to be performed.

2. Unicode Conversion

The current SAP ECC system must be a Unicode system for conversion. This is one of the
prerequisites of the S/4HANA conversion. If your customer system is not Unicode, you
need to plan for two-step conversion approach:

Step 1: Unicode conversion

Step 2: Conversion to SAP S/4HANA

Refer to SAP Note 2033243. This note describes the end of non-Unicode support.

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The new SAP system installation is now only possible through Unicode, whereas
upgrades of the SAP system are still possible with non-Unicode up to SAP ECC 6.07.
However, upgrading a SAP system to SAP 6.08 or higher is no longer possible with non-­
Unicode. Before such upgrade, you therefore need to plan for Unicode conversion and
then plan for an Upgrade project to 6.08.

Areas Affected by Unicode Conversion

A Unicode conversion affects custom programs and may need to verify applications.
There may be very minor impacts on the end users.
All Z reports need to be verified and modified if necessary. MDMP Customers in
SPUMG are to be expressly handled. Interfaces that are impacted are Unicode to non-­
Unicode, SAP to Non-SAP, and server and frontend upload and download.

SAP Unicode Conversion Guides

To perform a Unicode conversion, you need to consider the procedure of system copy, as
different procedures pertain to different system copy procedures.
Consultants need to refer to these guides, as needed:

• 548016 – Unicode Conversion Guide

• 765475 – Unicode Conversion Troubleshooting Guide

• 738858 – Additional information about R3 Load versions

• Installation Guide
• System copy guide

Relevancy of Guides
In addition to generic notes, SCP and MDMP systems have their own SAP Notes/guides
to be followed:

• Note 1051576 for SCP

• Note 551344 for MDMP

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Scan Your ABAP Code

SAP recommends using the SAP Tool to scan your ABAP code, using the UCCHECK
transaction.
On the Input screen, deselect the checkboxes for Check Only Programs Where the
Unicode Flag Is Unchecked and Exclude S* Packages. Then click Execute.
Program Status is displayed (whether Green, Yellow, or Red) along with the row of
ABAP Code where the error occurred. This can be considered an indication for how to
analyze the error further.

Software Provisioning Manager (SWPM)

SWPM is the tool for SAP system installation, copy and rename, dual stack split, and
heterogeneous SAP System copy. It also performs a database export and import and
controls the R3 load.
If HR functionality is used, refer to SAP Note 573044, where additional mandatory
steps are mentioned.
SAP documentation:

1. SAP Service Marketplace, accessed through www.service.sap.

com/unicode

2. SAP Notes:

a. 1322715

b. 1051576

c. 551344

d. 548016

e. 765475

f. 738858

g. 79991

h. 928729

3. Homogeneous and Heterogeneous System Copy for SAP

Documentation

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 Chapter 3 An Overview of SAP ECC System Conversion

 djustments During and After Conversion or

A
an Upgrade
SAP has delivered numerous objects, which cover a wide range of business scenarios.
Yet, there can be a business requirement which would involve customization. This
customization can be done in the customer’s namespace or directly over the SAP
namespace:

• Customer namespace objects start with Y or Z.

• Objects starting with anything other than Y or Z belong to the SAP

namespace.

There are two ways to change objects in the SAP namespace:

• Modifications: Changes done directly to the standard SAP object

• Enhancements: Customer namespace objects included in the

standard SAP objects

Modifications:

• The standard SAP object needs to be registered over the marketplace

to obtain an access key.

• After providing the access key, the object is modified and a transport
is created.

• Objects can be modified with or without Modification Assistant.

• It is always better to use Modification Assistant to ease adjustments

during the upgrade process.

Enhancements:

• SAP delivers different types of enhancements, such as user exits,

customer exists, BTE, and BADI and enhancement framework
(implicit and explicit) enhancements.

• These enhancements either bypass the standard functionality or add

features to it.

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Chapter 3 An Overview of SAP ECC System Conversion

Modifications
• Any change done directly to the SAP namespace object is a
modification.

• This includes note corrections done through transaction SNOTE.

There are risks involved in having modifications:

• SAP involves integration of many modules. Modifying an object can

result in inconsistency at some point, which leads to unexpected
results.

• There is a chance of losing support from SAP (OSS) for a particular

object if it is modified (except note corrections).

• Modifications can be lost during upgrade.

• More modifications involve more effort during the upgrade process

in order to carrying them forward.

Carrying Modifications Forward After the Upgrade Process

How are modifications carried forward after the upgrade process?
After the upgrade process, the current version of SAP is overwritten with the latest
version of SAP, which leads to loss of modifications done to the standard SAP objects. To
avoid this, there are adjustment activities that should be carried out during and after the
upgrade process.
There are different types of SAP objects that should be adjusted during and after the
upgrade.

• During the upgrade (all Data Dictionary objects)

• Domains

• Data elements

• Tables

• Structures

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 Chapter 3 An Overview of SAP ECC System Conversion

• After the upgrade (all Repository objects)

• Programs

• Function groups

• Logical databases

• Message classes

• Business Add Ins

• HR objects

How Modifications Are Adjusted

How are modifications adjusted?

• Dictionary objects are adjusted using the SPDD transaction.

• Repository objects are adjusted using the SPAU transaction.

• SPDD adjustments are done during the upgrade over the

virtual system.

• SPAU adjustments can be done within 14 days of the upgrade.

• For SPDD and SPAU, all the listed objects should be highlighted
in green, which specifies that the adjustments are complete (see
Figure 3-15).

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Chapter 3 An Overview of SAP ECC System Conversion

Figure 3-15. Modification adjustment

Before adjusting the object, it will show a traffic light (Red, Yellow, or Green) which
specifies the need for modification

• Green Traffic Light: Specifies that no modification adjustment is

needed, as the current version matches the new version of SAP.

• Yellow Traffic Light: Specifies that modification adjustment is

needed, as the current version does not match the new version.

If the object belongs to the “With Modification Assistant” category,

clicking the yellow traffic signal will adjust the object

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 Chapter 3 An Overview of SAP ECC System Conversion

If the object belongs to the “Without Modification Assistant” category

and there is no support offered by the system, you have to consult
with the original user responsible for the modification to decide if the
modification should be carried out.

• Red Traffic Light: Specifies that modification adjustment is needed,

as the current version does not match the new version of SAP. In this
case, there is no support offered by the system when clicking the
traffic light and the object should be changed manually in its original
transaction. For instance, a program must be changed manually
in SE38.

• No Traffic Light: Specifies that no modification is needed, as the

modifications done to the current version are obsolete in the new
version. Clicking the traffic light will remove the object from the
list. Note corrections are good examples of adjustments with no
traffic light.

Based on the type of traffic light, you can decide whether to carry forward the
modification or reset it to original (overwrite with new version).

 ho Is Responsible for Performing

W
Modification Adjustments?
The developer is involved in the modification adjustment activity, but can involve
other resources if needed. For instance, when an object is modified without using
Modification Assistant, the developer can reach out to the original user who performed
the modifications.

 AP S/4HANA Conversion Project

S
Activities Overview
Discover

• Execute Readiness Check, BSR, etc.

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Chapter 3 An Overview of SAP ECC System Conversion

Prepare

• Set up project

• Preparation of activity sheet for conversion project

• Discuss with team and share the plan with the customer

• Analyze the Readiness Check Report

• Analyze the BSR Report

• Install Simplification Item Checks Notes

• Execute SI Check Report

• Start evaluating Simplification Item Check Report

• Execute the Maintenance Planner and generate the file

• Prepare a list of mandatory Simplification Items, modules-wise

• Verify business functions, IS components, and add-ons, as per the

Readiness Check

• Custom Code Analysis

• Preparations for Asset Accounting

• Cross-application preparation

• CVI

• Financial Data Reconciliation and Consistency check

• Consistency checks

SUM

• SUM preparations and execution

• SUM downtime preparation

• Finance reports before downtime

• SUM Execution phase

• SUM Final phase

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 Chapter 3 An Overview of SAP ECC System Conversion

Conversion Cockpit

• SUM Completion Conversion Cockpit

• Conversion Cockpit: preparation

• Conversion Cockpit: data migration

• Conversion Cockpit: post-migration activities

• Reports validation post-conversion

Go live
Hypercare
Establish safe and efficient operations
Plan for further innovations

Conclusions
This chapter included a basic understanding of the tools that support system
conversions. The Simplification Item Check Report is the most important tool for
functional consultants like FI, CO, MM, SD, PP, PM, and so on. Run this report in all
clients, including in client 000. The SUM tool verifies in client 000 also. If possible, you
should verify it in the background to ensure you simulate SUM, before SUM does. Always
refer to SAP Notes 2399707 and 2502552. As soon as you have done the DEV system
conversion, freeze the version of these notes. That way, you don’t get new errors in
QAS and PRD. If you don’t freeze these notes, you always get a new Simplification Item
Catalog and may see new errors during QAS and PRD. That will increase your downtime
and change your expectations.
Transports are created for SPDD and SPAU and can be imported to subsequent
systems. At times, there might be a scenario where transports for SPDD do not work
and the adjustments should be done manually in each system. Transports of SPAU will
work in all scenarios. Hence, it’s important to adjust the modifications in order to carry
forward the business functionalities after the upgrade process.

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CHAPTER 4

The Customer Vendor

Integration (CVI)
The CVI is one of the most critical and important activities of the conversion process.
This chapter provides the reports to be executed and the configuration to be done
to compete the CVI. This chapter provides guidance on business partner conversion
activities. Refer to SAP Note 2265093 to do the complete the CVI synchronization.

The SAP Business Partner Concept

Business Partner (BP) is the new master data for creating customers and vendors and
it is one point of entry for maintaining customers’ and vendors’ master data. Business
partner master data will be used in other areas, like Collections Management, SAP Credit
Management, SAP Treasury and Risk Management, Loans Management, CRM, SRM,
and so on. The CVI process is the synchronization process between the business partner
and the customer/vendors.
The SAP Business Partner concept helps to reduce redundancy in the master data, as
general data can be shared by all types of business partners. In SAP S/4HANA, using the
Business Partner is mandatory. It is the leading object for the maintenance of customer
and vendor data.
Transactions like XD01 and XK01 will be redirected to the BP transaction. The KNA1
and LFA1 tables will be linked with the BUT000 table. Purchasing orders that are created
by MM users will use the data from LFA1. The sales orders that are created by SD users
will use the data from KNA1.

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© Ravi Surya Subrahmanyam 2022
R. S. Subrahmanyam, SAP S/4HANA Conversion, https://doi.org/10.1007/978-1-4842-8091-1_4
Chapter 4 The Customer Vendor Integration (CVI)

SAP BP synchronization via CVI customer/vendor integration links the database

table of the business partner and the customer/vendor. The following transactions are
not available in SAP S/4HANA.

• FD01, FD02, FD03, FD05, FD06

• FK01, FK02, FK03, FK05, FK06

• MK01, MK02, MK03, MK05, MK06, MK12, MK18, MK19

• VD01, VD02, VD03, VD05, VD06

• XD01, XD02, XD03, XD05, XD06, XD07

• XK01, XK02, XK03, XK05, XK06, XK07

• V-03, V-04, V-05, V-06, V-07, V-08, V-09, V-11, V+21, V+22, V+23

The VDH1N and VDH2N transactions are available in SAP S/4HANA to maintain
customer hierarchies.
Mass Maintenance transactions like XD99, XK99, and MASS are also available in SAP
S/4HANA.

Customer Vendor Integration (CVI)

Business Partners can now be centrally managed. With the current development, BP is
the single point of entry to create, edit, and display master data for business partners,
customers, and vendors. This has been developed to achieve harmonization between
various master data like customers, vendors, and so on, and to ensure easy master data
maintenance.
We can create a Business Partner as a person, organization, or group. Business
Partner is referred to as the master data in SAP and it is required to carry out business
processes in an organization, such as sales and purchase orders or employee as business
partner roles. The Role concept is introduced in Business Partners. A Business Partner
can be a vendor, employee, or customer, depending on the requirements. Business
Partners can be vendors, goods suppliers, sub-contractors, service agents, and so on.
SAP Business Partner Solution reduces data redundancy, as general information can be
shared through different roles. There are a few roles that are predelivered by SAP, and
they can also be customized.

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 Chapter 4 The Customer Vendor Integration (CVI)

Business Partner Grouping, which is similar to the Account group in customer/

vendor, is assigned to a number range. For a successful upgrade, master data with
deletion flags must also be converted. SAP recommends archiving such master data.
Often, the challenge that is faced during CVI is consolidation through account groups,
number ranges, and field assignments.
The CVI task is one of the Simplification Item Check tasks in the SI Check Report.
This activity must be done prior to SUM execution.

Executing the SI Check Program

Use SE38 to execute the Simplification Item Check program. The name of the program is
/SDF/RC_START_CHECK (see Figures 4-1 and 4-2).

Figure 4-1. The program to be executed for SI checks

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Chapter 4 The Customer Vendor Integration (CVI)

Figure 4-2. The Simplification Item Check Program and the Consistency
Check Result

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 Chapter 4 The Customer Vendor Integration (CVI)

Once you execute the program and verify the details shown in Figure 4-2, you can
find Return Code 12. It shows that action is needed before executing SUM. The action
needed is to configure and execute CVI.

P
 reparing for CVI
Here are the preparation activities for CVI:

1. Implement the prechecks

2. Archive the master data with a deletion flag

3. Activate the business functions

4. Run the master data consistency prechecks

5. Set any necessary customizing settings for CVI

1. Implement the Prechecks

To execute the prechecks, verify and implement the following SAP Notes. Then run the
precheck programs:

• 2216176

• 1623677

• 974504

Determine if the following SAP Notes are applicable:

• 1454441

• 2309153

• 2295823

• 1623809

2. Archive the Master Data with a Deletion Flag

Before transforming all customer/vendor master data, SAP recommends archiving
the customer/vendor master data with a deletion flag in order to reduce the known
inconsistencies.
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3. Activate the Business Functions

Activate the following business functions (transaction SFW5) before customizing (see
Figure 4-3):

• CA_BP_SOA Services for Business Partner

• CA_SUPPLIER_SOA Services for Supplier

• VENDOR_SFWS_SC1 and VENDOR_SFWS_SC2 to synchronize the contact

person between vendor and business partner

Figure 4-3. Transaction SFW5, where the Business Functions are activated

After activating the Business Functions, make sure that both switches have Global
Status set to ON. This activity can be done using the SFW_BROWSER transaction code (see
Figure 4-4).

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 Chapter 4 The Customer Vendor Integration (CVI)

Figure 4-4. The screen for SFW_BROWSER

If you did not see Business Function CA_BP_SOA in your system, create a new
Business Function with the switches VENDOR_SFWS_SC1 and VENDOR_SFWS_SC2.
For the new customized Business Function, the type should be Enterprise Business
Function (G)

4. Run the Master Data Consistency Prechecks

During the precheck, you need to check the inconsistencies in the mapping of
customizing data from customer/vendor to Business Partner (see Figure 4-5).

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Chapter 4 The Customer Vendor Integration (CVI)

4 .a. Master Data Inconsistencies Can Be Analyzed

Using CVI_MIGRATION_PRECHK

Figure 4-5. The inconsistencies that occurred during CVI_MIGRATION_PRECHK

4.b. Field Checks Suppression

Suppressing fields for vendor and customer account groups enables quicker
synchronization, as there are numerous fields in the Business Partner Screen to map to
(see Figures 4-6 and 4-7). Refer to SAP Note 2336018.

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 Chapter 4 The Customer Vendor Integration (CVI)

Vendor – Field status group

Figure 4-6. The path for Change Field Status of Account Groups for Vendor
Accounts

Customer Field Status group

Figure 4-7. The path for Change Field Status of Account Groups for Customer
Accounts

5. Set Any Necessary Customizing Settings

Based on the inconsistencies that occurred from the prechecks using CVI_MIGRATION_
PRECHK, for example, Issues on Account group, Value Mapping, and so on, the following
customizing settings and value mappings should be in place (see Tables 4-1 to 4-3 and
Figures 4-8 to 4-10).

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Chapter 4 The Customer Vendor Integration (CVI)

5.a. Activate Creation of Post Processing Order (PPO)

Table 4-1. PPO
SAP Menu SPRO ➤ Cross Application Components ➤ General Application Functions ➤ Post
Path processing Office ➤ Business Processes ➤ Activate creation of processing orders.
T Code SPRO

Figure 4-8. Activate Creation of Post Processing Order (PPO)

5.b. Activate Synchronization Options

Table 4-2. Activate Synchronization Options
SAP Menu Path SPRO ➤ Cross Application Components ➤ Master Data Synchronization ➤
Synchronization Control ➤ Activate synchronization options.
T Code SPRO

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 Chapter 4 The Customer Vendor Integration (CVI)

Figure 4-9. Activate synchronization options

5.c. Activate Creation of Post Processing Order (PPO)

Table 4-3. PPO

SAP Menu SPRO ➤ Cross Application Components ➤ General Application Functions ➤ Post
Path processing Office ➤ Business Processes ➤ Activate creation of processing orders.
T Code SPRO

Figure 4-10. Activate Creation of Post Processing Order (PPO)

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Chapter 4 The Customer Vendor Integration (CVI)

C
 ustomer/Vendor Synchronization:
Preparation Phase
C
 ustomer-Related Preparations
For customer/vendor and business, partner number ranges should not overlap with the
customer and vendor number ranges. If there is overlapping, number ranges should be
maintained in such a way that most account numbers remain matched.
It is always recommended to discuss this requirement with the client (see Tables 4-4
and 4-5 and Figures 4-11 and 4-12).

Table 4-4. Customer Account Group vs BP Grouping

Customer Account Groups vs BP Grouping
Account Description No. Number Range BP Description No. Number Range
Group Grouping
Y001 Domestic 1 100000 199999 Y001 Domestic 1 100000 199999
Customer Customer
Y002 Foreign 2 200000 299999 Y002 Foreign 2 200000 299999
Customer Customer
YPTP Payer Bill to 3 300000 399999 YPTP Payer Bill to 3 300000 399999
party party
YSTO Cross 4 400000 499999 YSTO Cross 4 400000 499999
Company Company
STO STO
YSTP Ship to Party 5 500000 599999 YSTP Ship to Party 5 500000 599999

1. Define the number of ranges for the customer master.

Table 4-5.
SAP Menu Path SPRO ➤ SAP Reference IMG ➤ Financial Accounting ➤ Accounts Receivable
and Accounts Payable ➤ Customer Accounts ➤ Master Data ➤ Preparations for
Creating Customer Master Data ➤Create Number Ranges for Customer Accounts
T Code XDN1

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 Chapter 4 The Customer Vendor Integration (CVI)

Figure 4-11. Define the number range intervals for customer accounts

2. Assign Number Ranges to Account Groups (Customer).

Figure 4-12. Assigning number ranges to Customer Account Groups

V
 endor-Related Preparations
For customer/vendor and businesses, partner number should also not overlap with the
customer and vendor number ranges. If there is overlapping, number ranges should be
maintained in such a way that most account numbers remain matched (see Tables 4-6 to
4-8 and Figures 4-13 and 4-14).

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Chapter 4

Table 4-6. Vendor Account Groups

Vendor Account Groups vs BP Grouping
Account Group Description No. Number Range Account Group Description No. Number Range
X001 Domestic Vendor A1 1000000 1999999 X001 Domestic Vendor A1 1000000 1999999
X002 Foreign Vendor A2 2000000 2999999 X002 Foreign Vendor A2 2000000 2999999
The Customer Vendor Integration (CVI)

X003 Government Vendor A3 3000000 3999999 X003 Government Vendor A3 3000000 3999999
X005 Employee Vendor A4 4000000 4999999 X005 Employee Vendor A4 4000000 4999999
X006 Intercompany Vendor A5 5000000 5999999 X006 Intercompany Vendor A5 5000000 5999999
 Chapter 4 The Customer Vendor Integration (CVI)

1. Define Number Ranges for Vendor Master Records.

Table 4-7. Vendor Master Records

SAP Menu Path SPRO ➤ SAP Reference IMG ➤ Financial Accounting ➤ Accounts Receivable
and Accounts Payable ➤ Vendor Accounts ➤ Master Data ➤ Preparations for
Creating Vendor Master Data ➤ Create Number Ranges for Vendor Accounts
T Code XKN1

Figure 4-13. Define number ranges for vendor accounts

2. Assign Number Ranges to Account Groups (Vendor).

Table 4-8. Vendor Account Groups

SAP Menu Path SPRO ➤ SAP Reference IMG ➤ Financial Accounting ➤ Accounts Receivable
and Accounts Payable ➤Customer Accounts ➤ Master Data ➤ Preparations
for Creating Customer Master Data ➤ Assign Number Ranges to Account
Groups
T Code SPRO

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Chapter 4 The Customer Vendor Integration (CVI)

Figure 4-14. Assign number ranges to account groups (Vendor)

BP Synchronization Phase

In BP synchronization, you create groupings and number ranges to match customer and
vendor account groups and number ranges, respectively (see Tables 4-9 and 4-10 and
Figures 4-15 and 4-16).

Define Number Ranges and Grouping for BP

Each Business Partner Group is assigned to an account group. A number range is
assigned to the account group and Business Partner Group.

Table 4-9. Number Ranges and Groupings

SAP Menu Path SPRO ➤ SAP Reference IMG ➤ Cross-Application Components ➤ SAP
Business Partner ➤ Business Partner ➤ Basic Settings ➤ Number Ranges and
Groupings ➤ Define Number Ranges
T Code BUCF

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 Chapter 4 The Customer Vendor Integration (CVI)

Figure 4-15. Define number ranges for BP

Define Number Ranges and Grouping for BP

Table 4-10. Grouping for BP

SAP Menu Path SPRO ➤ SAP Reference IMG ➤ Cross-Application Components ➤ SAP
Business Partner ➤ Business Partner ➤ Basic Settings ➤ Number Ranges
and Groupings ➤ Define Groupings and Assign Number Ranges
T Code SPRO

Figure 4-16. BP groupings

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Chapter 4 The Customer Vendor Integration (CVI)

M
 apping Tasks
This section maps all the customizing, such as grouping to account group and number
ranges, together:
BP ➤ Customer

1. Business partner roles

2. Number range

3. Other attributes value mapping

Assign Business Partner Roles to Account Groups

Here, we assign BP roles to each Customer Account Group. For Customer FLCU00
(FLCU01), any Z roles that have been created should also be part of such assignments (see
Table 4-11 and Figure 4-17).

Table 4-11. Assign Customer/Vendor Group

SAP Menu Path SPRO ➤ SAP Reference IMG ➤ Cross-Application Components ➤ Master
data synchronization ➤ Customer/Vendor Integration ➤ Business Partner
Settings ➤ Settings for Customer Integration ➤ Define BP Role for Direction
Customer to BP
T Code SPRO

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 Chapter 4 The Customer Vendor Integration (CVI)

Figure 4-17. Define BP Role for Direction Customer to BP

Number Assignments (CVI-Target: Business Partner)

Here, you map BP groupings and account group as per the customer number range. If
the customer and BP should be an identical number, the Matching No. checkbox should
be selected (see Table 4-12 and Figure 4-18).

Table 4-12.
SAP Menu Path SPRO ➤ SAP Reference IMG ➤ Cross-Application Components ➤ Master
Data Synchronization ➤ Customer/Vendor Integration ➤ Business Partner
Settings ➤ Settings for Customer Integration ➤ Define BP Role for Direction
Customer to BP
T Code SPRO

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Chapter 4 The Customer Vendor Integration (CVI)

Figure 4-18. Define the number range for Direction Customer to BP

V
 alue Mapping
All necessary configurations, such as marital status, legal form, payment cards,
department, and industries, must be configured in this step. These attributes are
mapped from the customer to the BP.
Generic checks can be done through the CVI_CUSTOMIZING_RESOLVE program. In this
section, you can find the applicable missing customizing entries and inconsistencies
(see Tables 4-13 and 4-14 and Figure 4-19 to 4-28).
You have to execute every check to view its message logs.

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 Chapter 4 The Customer Vendor Integration (CVI)

Figure 4-19. Error messages

Activate Assignment of Contact Persons

Table 4-13.
SAP Menu Path SPRO ➤ SAP Reference IMG ➤ Cross-Application Components ➤ Master
Data Synchronization ➤ Customer/Vendor Integration ➤ Business Partner
Settings ➤ Settings for Customer Integration ➤ Field Assignment for Customer
Integration ➤ Assign Attributes ➤ Contact Person
T Code SPRO

Figure 4-20. Assign a contact person

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Chapter 4 The Customer Vendor Integration (CVI)

Assign Department Numbers for Contact Person

Figure 4-21. Assign department numbers for contact person

Assign Functions of Contact Person

Figure 4-22. Assign functions of contact person

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 Chapter 4 The Customer Vendor Integration (CVI)

Assign Authority of Contact Person

Figure 4-23. Assign authority of contact person

Assign VIP Indicator for Contact Person

Figure 4-24. Assign VIP indicator for contact person

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Chapter 4 The Customer Vendor Integration (CVI)

Table 4-14.
SAP Menu Path SPRO ➤ SAP Reference IMG ➤ Cross-Application Components ➤ Master
Data Synchronization ➤ Customer/Vendor Integration ➤ Business Partner
Settings ➤ Settings for Customer Integration ➤ Field Assignment for
Customer Integration ➤ Assign Attributes
T Code SPRO

Assign Marital Statuses

Figure 4-25. Assign marital statuses

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 Chapter 4 The Customer Vendor Integration (CVI)

Assign Legal Form to Legal Status

Figure 4-26. Assign legal form to legal status

Assign Payment Cards

Figure 4-27. Assign payment cards

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Chapter 4 The Customer Vendor Integration (CVI)

Assign Industries

Figure 4-28. Assign industries

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 Chapter 4 The Customer Vendor Integration (CVI)

BP ➤ VENDOR

1. Business partner roles

2. Number range

3. Other attributes value mapping

Assign Business Partner Roles to Account Groups

Here, you assign BP roles to each Vendor Account Group. For Vendor FLVN00 (FLVN01),
any Z roles that have been created should also be part of such assignments (see
Table 4-15 and Figure 4-29).

Table 4-15.
SAP Menu Path SPRO ➤ SAP Reference IMG ➤ Cross-Application Components ➤ Master
data synchronization ➤ Customer/Vendor Integration ➤ Business Partner
Settings ➤ Settings for Vendor Integration ➤ Define BP Role for Direction
Vendor to BP
T Code SPRO

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Chapter 4 The Customer Vendor Integration (CVI)

Figure 4-29. Define BP role for Direction Vendor to BP

Number Assignments (CVI-Target: Business Partner)

Here, you map BP groupings and Account Group as per the vendor number range. If
the vendor and BP should match, the Matching No. checkbox should be selected (see
Table 4-16 and Figure 4-30).

Table 4-16.
SAP Menu Path SPRO ➤ SAP Reference IMG ➤ Cross-Application Components ➤ Master Data
Synchronization ➤ Customer/Vendor Integration ➤ Business Partner Settings ➤
Settings for Vendor Integration ➤ Define BP Role for Direction Vendor to BP
T Code SPRO

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 Chapter 4 The Customer Vendor Integration (CVI)

Figure 4-30. Define number range for Direction Vendor to BP

Vendor Value Mapping

All necessary configurations are configured in this step, i.e., these are attributes that are
mapped from the customer to the BP (see Tables 4-17 to 4-20 and Figures 4-31 to 4-34).

Table 4-17.
SAP Menu Path SPRO ➤ SAP Reference IMG ➤ Cross-Application Components ➤ Master
Data Synchronization ➤ Customer/Vendor Integration ➤ Business Partner
Settings ➤ Settings for Vendor Integration ➤ Field Assignment for Vendor
Integration ➤ Assign Attributes
T Code SPRO

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Assign Industries

Figure 4-31. Assign industries

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 Chapter 4 The Customer Vendor Integration (CVI)

Activate Creation of Post Processing Order (PPO)

Table 4-18.
SAP Menu Path SPRO ➤ Cross Application Components ➤ General Application Functions
➤ Post processing Office ➤ Business Processes ➤ Activate creation of
processing orders.
T Code SPRO

Figure 4-32. Activate creation of Post Processing Order (PPO)

Activate Synchronization Options

Table 4-19.
SAP Menu Path SPRO ➤ Cross Application Components ➤ Master Data Synchronization ➤
Synchronization Control ➤ Activate synchronization options.
T Code SPRO

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Figure 4-33. Activate synchronization options

Check Synchronization Objects

Table 4-20.
SAP Menu Path SPRO ➤ Cross Application Components ➤ Master Data Synchronization ➤
Synchronization control ➤ Synchronization Objects.
T Code SPRO

Figure 4-34. Check synchronization objects

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 Chapter 4 The Customer Vendor Integration (CVI)

Using the Synchronization Cockpit

Executing the mass synchronization program is a must in the SAP ECC system for
CVI. This can be done even a couple of weeks before the conversion synchronization
happens in the background for Business Partners in the PRD system. You can even do
this synchronization one to two weeks before the SUM tool. If there are any issues in
synchronization, such as missing mapping, failed data checks, and so on, they will be
stored for post-processing. It is important to clean up all PPO before you execute SUM.
The Synchronization Cockpit can be started using the MDS_LOAD_COCKPIT transaction.
In the Synchronization Cockpit, you can define the queue and block size and analyze
the issues through Customizing Synchronization (see Figure 4-35).

Figure 4-35. Synchronization Cockpit: MDS_LOAD_COCKPIT

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Chapter 4 The Customer Vendor Integration (CVI)

Here is a description of the synchronization process. The synchronization process

defines the target and source object, whether it is Business Partner to a customer/vendor
or vice versa (see Figures 4-36 to 4-38).

Figure 4-36. Synchronization process

The synchronization queue is MDS_CUST_BUPA (see Figure 4-37).

Figure 4-37. Synchronization queue

The mass synchronization run is handled via inbound qRFCs (transaction SMQ2), as
shown in Figure 4-38.

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 Chapter 4 The Customer Vendor Integration (CVI)

Figure 4-38. qRFC Monitor

Step 1. Build queues.

Step 2: Process queues
Figure 4-39 defines the number of dialog tasks for parallel processing.

Figure 4-39. Block size for parallel processing

Definition of the block size: SAP usually recommends block size to be defined as
50. We define the block size during synchronization so that if an error occurs during
the process, it will be easy to identify the reason for the error in a shorter block. This
helps avoid errors in downtime that cannot be analyzed through large blocks. It is also
recommended to have smaller blocks.
Figure 4-40 shows the Synchronization Cockpit: customizing.

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Chapter 4 The Customer Vendor Integration (CVI)

Figure 4-40. Customizing synchronization

You enter a range of customer or vendor account groups and click Execute.
The Monitor tab displays any error messages. Once the messages are fixed, the
Monitor tab shows that the configuration has been done in the correct manner (see
Figures 4-41 and 4-42).

Figure 4-41. Precheck upgradation report

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If you were to run the SI check /SDF/RC_START_CHECK, you’d see that all the signals
are in green/yellow.

Figure 4-42. Simplification item check

Maintaining a Business Partner

BP is the single point of entry to create, edit, and display master data for business
partners, customers, and vendors. Depending on the role and grouping, a Business
Partner can be a vendor, a goods supplier, a subcontractor, a service agent, and so on.
The following sections discuss a few scenarios for how to create a Business Partner using
different roles.

Create a Sold-To Account

Business Partners can be created using the BP transaction or through Fiori tiles (see
Figure 4-43).

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Figure 4-43. Fiori Tile: Maintain Business Partner

From the screen titled Maintain Business Partner, follow these steps:

1. Click the type of customer (Person/Organization/Group).

2. Select 000000 Business Partner (Gen.) from the Create in BP Role

drop-down menu.

3. Enter information in the fields as required; see Figure 4-44.

Figure 4-44. Create an organization

On the Create Organization screen, follow these steps to add fields to the
address data:

1. Save the original record. Then go to Address Overview. Double-

click the address line and choose Enter Applicable Information.

2. Click the Print Preview button to see the mailing/shipping address

in full.

3. Click Save (see Figures 4-45 and 4-46).

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Figure 4-45. The BP – Address screen

Figure 4-46. BP print preview

The Sold-to Number is now visible in the display business partner field. A basic
address record has been created. Further, the data needs to be extended for finance
related and sales information.
This is done through the addition of roles to this address record. For a Sold-to, two
partner roles need to be added: Customer (Financial Accounting) and Customer. Make
sure the record is in change mode before extending it to another role.

General Data: Finance Role

The Business Partner Role – FLCU00 – Customer (Fin. Accounting) is used to maintain
finance data (see Figures 4-47 and 4-48).

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Figure 4-47. BP role FLCU00

Company Code Header

Figure 4-48. BP Company code data

Enter company code, reconciliation account, sort key in account management header,
payment terms in payment data header, and any other relevant information in the
master data screen. Once the customer with role FLCU00 is completed, click Save.

Set Up the Customer Role – Sales Area

(The role can be extended in Change Mode only):

1. Click the Sales Area Data button.

2. Enter the sales org, distr channel, division, and any other relevant
information and click Save (see Figure 4-49).

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Figure 4-49. Sales area data

The tabs for Order, Shipping, Billing document, Partner Functions, and so on, are
editable now.
Enter Currency in Orders Header, Cust.Pric.Procedure, Customer Stats.Group in
Pricing/Statistics Header, Delivery Priority, Order Combination, Shipping Conditions in
Shipping Header.
Enter relevant data in the Billing and Partner Functions tabs. (In the Partner
Functions tab, SAP has created Sold-to, Bill-to, Payer, and Ship-to party with the
matching number). Complete the customer.
Click Save.

Create Ship-To Account

If the customer’s Ship-to information is different from the Sold-to information, create
the Z*** Ship-to Partner. From the Maintain Business Partner screen, enter information
in the fields as specified in the following table and click the type of customer—
Person/Organization/Group. Typically, for a distributor, the type is Organization (see
Figure 4-50).

Figure 4-50. Grouping: Ship to customer

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To add fields to the address data, follow these steps from the Create
Organization screen:

3. Save the original record. Go to Address Overview and then

double-click the address line. Enter the applicable information.

4. Click the Print Preview button to see the mailing/shipping address

in full. Then click Save (see Figure 4-51).

Figure 4-51. Business Partner – Address

Extend the basic address record for the sales information.

The Ship-to number is now visible in the display business partner field. For a Ship-to,
one partner role needs to be added: Customer. Make sure the record is in change mode;
if it’s in display mode, click the Switch Between Display and Change button.

Set Up the Customer role - Ship to Sales Area

(This role can be extended in Change Mode only.)
Click the Sales and Distribution button (see Figures 4-52 and 4-53).

Figure 4-52. BP Role – Sold to Party Enter the Sales org, Distr channel, and
Division

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Figure 4-53. Sales Area - BP

Click Save
Enter Currency in Orders Header, Cust.Pric.Procedure, Customer Stats.Group
in Pricing/Statistics Header, Delivery Priority, Order Combination, and Shipping
Conditions in Shipping Header.
Enter relevant data in the Billing and Partner Functions tabs. (In the Partner
Functions tab, SAP has created a Sold-to, Bill-to, Payer, and Ship-to party with the
matching number). Complete the customer.

Link the Ship-to Partner to the Sold-to Partner

Open the appropriate Sold-to account to assign the new Ship-to record to. Ensure that
the Customer record is in Change mode.

1. Select Customer (Defined) in the Change in BP role.

2. Click the Sales and Distribution button. Select the Partner

Functions tab. In the first blank row, type in SH in the Partner
Function column.

3. In the Number column, type the newly created Ship-to account

number or search for it via the drop-down menu.

4. Check the box for the default Ship-to account.

5. Click Save (see Figure 4-54).

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Figure 4-54. SH partner functions

1. Create Bill-To Partner

Similar to bill-to partner and payer partner.

2. Maintain Employee as Business Partner

Step 1: Go to T. Code PA30 (see Figure 4-55).

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Figure 4-55. Maintain employee

Step 2: Select Actions Infotype and click Create.

Step 3: Enter the parameters shown in Figure 4-56.

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Figure 4-56. Enter these parameters

Step 4: Click Save to move to the next screen.

Step 5: Maintain Employee details (see Figure 4-57).

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Figure 4-57. Change personal data

Step 6: Click Save to go to the next screen.

Step 7: Enter the subarea (see Figure 4-58).

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Figure 4-58. Change organizational assignment

Step 8: Save (see Figure 4-59).

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Figure 4-59. Change address

Step 9: Maintain address (see Figure 4-60).

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Figure 4-60. Maintain address

Step 10: Select main bank (0).

Step 11: Save (see Figure 4-61).

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Figure 4-61. Maintain HR Master Data

Step 12: In the highlighted area, select info type Communication and sty 0001.
Step 13: Click Create (see Figure 4-62).

Figure 4-62. InfoType communication

Step 14: Enter the USER ID and choose save.

The employee is now created with Personnel Number. This is extended as a Business
Partner with respective roles and groupings.
Step 15: BP Creation Go to BP T. Code.
Step 16: Select BP Category as Person and BP Grouping as BPEE.

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Step 17: Enter all the parameters as per the requirements in Figure 4-63.

Figure 4-63. Business Partner screen

Step 18: Once all the details are filled in, click check to validate details.
Step 19: Go to the Identification tab (see Figure 4-64).

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Figure 4-64. Identification tab data

Step 20: In ID Type, enter HCM001 and enter the previously created personal number
in PA30. Click Save.
Step 21: Now select the FLNV00 role and click Company Code (see Figure 4-65).

Figure 4-65. BP Role FLVN00

Step 22: Enter CC and Reconciliation account and then scroll down (see Figure 4-66).

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Figure 4-66. Company code Data tab

Step 23: Enter the personal number and choose save.

Step 24: Now select the FLVN01 role and select Pur.Org. (see Figure 4-67).

Figure 4-67. BP role – FLVN01

Step 25: Enter Pur.org and Order Currency and choose save.
Step 26: Now select the FS0000 role and open Company Code to check whether its
extended or not. Choose Save.
Step 27: Select the BUP001 role and verify that all the address details are populating.
Choose Save.
Step 28: The BP has now been created.

Single Employee-BP Synchronization

This is synchronization with EMP and BP (see Figure 4-68).

1. Open the SA38 transaction.

2. Enter Program Name/SHCM/RH_SYNC_BUPA_EMPL_SINGLE.

3. Execute.

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Figure 4-68. Single Employee: BP Synchronization

4. Provide the personal number created in PA30 and run the program
(see Figure 4-69).

Figure 4-69. Single Employee: BP Synchronization

5. Now check the log using the SLG1 transaction.

6. This data is in the Object and Subobject fields (see Figure 4-70):

Object: SHCM_EE_INTEGRATION
Subobject: BUPA_SYNC

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Figure 4-70. Analyze Application log

7. Once Object and Subobject are maintained, execute the log (see
Figure 4-71).

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Figure 4-71. Display log

8. Now EMP ID and BP are synced.

9. Open the SU01 transaction and check the final output (see
Figure 4-72).

Figure 4-72. Maintain users

It’s indeed synced with BP, as shown in Figure 4-72.

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The Data Model in SAP S/4HANA Business Partner

Transaction BP is the single point of entry for creating/changing/displaying customer/
vendor data. It is easy to access as compared to Customer/Vendor Data Point, wherein
different transactions had to be accessed for different roles/data tabs (see Figure 4-73).

Figure 4-73. Maintain Business Partner

CVI updates customer/vendor data when creating Business Partners. IDOC for
interchange of customer/vendor data CREMAS, DEBMAS, and ADRMAS all support
S/4HANA. BAPI for creation of customer/vendor data CL_MD_BP_MAINTAIN is not
supported as they don’t call CVI function CVI_EI_INBOUND_MAIN.
Tables BUT000, BUT100, and BUT020 can be accessed for data in the General data tab.
For example, Address, Search Term, Name, Email ID, Contact Number, and so on. This
information will remain the same throughout the roles of Business Partners.
CVI synchronizes the KNA1, KNVV, and LFA1 customer/vendor tables into general
tables and application-specific tables. Tables for customer data (KNA1) and vendor data
(LFA1) remain available and are not impacted.
Linkage impacts the data tables: CM_CUST_LINK and CM_VEND_LINK.

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BP Master Data Protection

Figure 4-74. BP Master Data Protection

Business Data Toolset (BDT)

BDT helps configure the user interface of the Business Partner. It dynamically enables
the process of changes in the layout. It can be combined with the Business Rule
Framework transaction (BRFPLUS).
The BUPT transaction code determines all the relevant transactions to configure the
BDT (see Figure 4-75).

Figure 4-75. BDT menu

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BDT events are defined using the BUS7 transaction (see Figure 4-76).

Figure 4-76. BDT events

Field modification criteria are defined using the BUSC transaction (see Figure 4-77).

Figure 4-77. Field modification criteria

Field modifications are defined using BUSJ transaction per activity (see Figure 4-78).

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Figure 4-78. Field grouping activities

Field modifications are defined using the BUSO transaction per category (see
Figure 4-79).

Figure 4-79. Field grouping using BP category

Field modifications control, at the field group level, whether fields can be set to the
following (see Figure 4-80):
Required/Mandatory entry

• Optional entry

• Hidden

• Display

• Not specified

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Figure 4-80. Field grouping using BP category

1. The restriction can be defined.

2. The authorization object B_BUPA_GRP should be used and tied to

an authorization role.
3. Blocking and unblocking Business Partner is used to block BP
master data.

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BP Maser Data Archiving

BP master data that is no longer required may be archived by selecting the Archiving flag
in the Status tab, using BP Transaction code (see Figure 4-81).

Figure 4-81. Maintain Business Partner

Transaction Code SARA can be used as archive administration. Object CA_BUPA will
be used (see Figure 4-82).

Figure 4-82. Archive administration

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Conclusions
As a review, here are the most important preparation tasks:

1. Implement the prechecks.

2. Archive customer/vendor master data with deletion flag.

3. Activate Business Functions CA_BSOAP.

4. Check and integrate customer/vendor enhancement. Refer to SAP

Notes 2309153 and 1623809.

5. Execute CVI. Refer to SAP Note 2265093.

6. Remove and avoid inconsistent customizing and inconsistent

customer data.

7. Refer to SAP Note 2336018 and Guided CVI Customizing (Note

2344034).

8. SAP recommends keeping the customer/vendor number the

same when converting to Business Partners. Only when there is
a conflict in the number ranges between customer and vendor
should one of the entities take a different BP number.

9. During synchronization, the system ensures that all necessary

authorizations exist.

10. Formatting issues cannot be solved by suppressing errors. The

wrong formatted/missing reference data must be cleaned up.
Refer to SAP Notes 2336018 and 2344034.

The next chapter discusses the functional preparation activities you need to
complete as a part of the preparation phase.

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CHAPTER 5

Preparation Phase
(Preparations in SAP
ECC System Before
SUM) – Part 1
When converting to SAP S/4HANA, the preparation activities are the key to the success
of the project. If the preparation activities are incomplete, SUM verifies this during its
run and throws error messages. If the error is severe (such as return code 12), SUM stops
running in the first phase. If the severity is low (such as return code 8 or 7), SUM stops or
sends a message during its third or fourth phase.
It is highly risky to ignore a warning or error or to leave a task unattended during the
preparation phase. Sometimes you may have to restore to the preparation phase, even
after moving to SAP S/4HANA, before you execute the Conversion Cockpit.
Before you start preparation activities, it is important to understand the
functionalities in use in the current system. These activities may be called discovery
activities for the preparation. I provide an overview of discovery activities that help
prepare the system.
Then you move on to reconciliations you need to perform before you start preparing
the system, in order to understand data consistency and inconsistencies in the source
system. This way, you can fix them before you start the preparation activities.
After that, the Simplification Item Check Report is executed to prepare the
system with relevant simplification items. I provide some sample examples of doing
these checks.
Lastly, the chapter discusses some important checks in FI-GL that need to be done
before the conversion.
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© Ravi Surya Subrahmanyam 2022
R. S. Subrahmanyam, SAP S/4HANA Conversion, https://doi.org/10.1007/978-1-4842-8091-1_5
Chapter 5 Preparation Phase (Preparations in SAP ECC System Before SUM) – Part 1

 iscovery Activities Before Starting

D
the Preparation Activities
Before starting preparation activities in the ECC system, all consultants working on
the conversion project must verify the source system. This way, they know which
functionalities are in use and which activities must be done during the conversion
preparation and realization phases.
The following discovery activities help consultants plan for the project activities and
provide a schedule to their customers:

1. As a part of discovery activity, consultants may take test scripts

that are used in the implementation or ST03 DUMP for three to six
months. This way, they can understand the functionalities that
are in use. This is useful when performing testing based on this
activity.

2. The Readiness Assessment document has to be analyzed. It’s used

as a base for preparing the system for SAP S/4HANA conversion.

3. Verify restrictions in Asset Accounting, banking, and leasing

before the SAP S/4HANA system conversion. That way, you
understand the restrictions of the project.

4. Determine whether COPA is in use. If it is, you need to identify

what type it is—the costing-based COPA or the account-based
COPA (or both). This exercise helps to place the preparation
activities in your task list.

5. Before you start the conversion project, you need to verify TFILA_
FA_002 table. If you have one at least one entry in the TFILA_
FA_002 table, then lease accounting is used. SAP S/4HANA does
not support New AA and lease accounting together.

6. Check whether EA-FIN is active. You need to activate based on the

source system.

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7. Verify the default account assignment OKB9 and KS02. After the
Conversion Cockpit, the account assignments at KS02 will be
moved to OKB9 by the Cockpit activity.

8. Determine if Actual Costing is in use (xBEW-MLAST = '2'). If it is,

you have to plan for Actual Costing preparation activities.

9. Verify that subcomponent EA-HRCUN must be deleted from Rel.

6.00 and 6.02.
10. In general, a digital license is required on the SAP ERP start
release prior to starting the system conversion. From SAP ERP 6.0
EHP5 on, having a digital license is mandatory; however, systems
on ERP 6.0 EHP0 to EHP4 can still run without a digital license, so
you need to install a digital license upfront.

11. Only one fiscal year can be open in Asset Accounting during
conversion, and the last year cannot be reopened after
conversion. Refer to SAP Note 2304418.

12. Is Trade Finance relevant to your conversion? If trade finance is in

use, add the relevant activities to your task list.

13. Always refer to Release Information Notes 2884313 and 2943206,

and other notes that are related to conversion, before you start the
project. You need to understand the restrictions and limitations of
the project.
14. Verify the need a year-end closing reset. Once the system is
migrated/converted, this becomes impossible.

15. Verify if ERP SD Revenue Recognition is used or if RAR has been in

use. Based on the source system functionality, consultants need to
add these activities to the task sheet.

16. Verify SAP Note 3006586, which is related to the Cost of

Sales ledger.

17. Check for the existence of records in table KNVK, where LIFNR
has non-initial values (KNVK-LIFNR <> ''). Refer to SAP Note
2943206.

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18. See SAP Note 2993220 to understand the activities related

to EC-PCA.

19. As a part of discovery activity, see SAP Note 2781585 to

understand cash management - memo record functionality.

20. Verify if the system uses new Cash Management and memo
records. There is no data in table FDES and no memo records
functionality in use.

21. Verify and plan for interfaces/integrations with other system/PO/

BW systems usage.

22. Verify usage of transactions WB21, WB22, and WB23.

23. Verify if the Material Ledger is in use. Refer to SAP Note 2345739.

24. Verify usage of Real Estate Classic (RE Classic).

25. BPC/Consolidation Usage has to be verified and planned for

conversion, if it’s in use.

26. Verify attachments to specific document types SWO1. Table

SRGBTBREL.

27. Verify usage of accruals. If there are No Entries found in tables

ACEDSOI, ACEPSOI, ACEPSOIT, and ACEOBJ, it is not in use and no
action is needed.

28. Verify if the system is using ledger approval with non-calendar

fiscal year variant for parallel valuation; see SAP Note 2220152.

29. If the system is Classic GL, you must initialize field BSEG-BDIF for
all open items.

30. Verify which planning capabilities are in use in the current system.
Refer to SAP Note 2270407. This helps to prepare for planning
capabilities after moving to SAP S/4HANA.

31. Verify the existing clients in the system. Refer to SAP Note
1749142.

32. Verify use of employee vendors in the current system. Refer to SAP
Note 2340095.

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33. Verify whether the period-end activities have been completed. If

not, you have to complete them.

34. Verify if SD Revenue Recognition is in use. If so, you have to take

up a preproject to migrate this functionality to RAR.

35. Make sure that you have carried forward all balances in all
applications and ledgers to the current fiscal year using the
following transactions:

• FAGLGVTR for the new General Ledger

• F.16 for the classic General Ledger

• AJRW for Asset Accounting

• F.07 for Accounts Receivable and Accounts Payable

36. Verify whether the following activities have been completed:

• Carry out the depreciation run (report RAPOST2000 or

transaction AFAB)

• Run the periodic asset postings (report RAPERB2000)

• Asset history sheet is executed

F ixing Financial Data Inconsistencies

Before Conversion
S/4HANA Migration: Inconsistency Correction Monitor
It is essential to fix any database inconsistencies in the ECC system before you move
to SAP S/4HANA. Report FIN_CORR_RECONCILE will identify database inconsistencies and
report FIN_CORR_MONITOR will analyze and fix them.
As a part of preparation activity, you need to identify and rectify “financial
data inconsistencies” in the current ECC system. One of the ways to identify these
inconsistencies is by executing readiness checks in the current ECC system.
Showing financial data inconsistencies is one of the components of a Readiness
Check. You can also display these inconsistencies by executing the FIN_CORR_RECONCILE
program in SE38. This reconciliation check is the main source of the financial data
quality analysis. It contains different consistency checks of the General Ledger.

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You can use the FIN_CORR_RECONCILE program, as specified in SAP Note 2755360,
to identify all the financial database inconsistencies that could occur during the SAP
S/4HANA Finance Data Migration phase. For more information about this transaction,
select the Program Documentation button on the initial screen of this transaction (see
Figure 5-1).

Figure 5-1. Reconciliation prior to conversion to S/4HANA

It is very important to analyze and resolve the listed issues prior to the SAP S/4HANA
conversion. You need to run this report in the background to avoid a longer runtime (see
Figure 5-2).

Figure 5-2. Information message

When analyzing errors, you need to refer to the number of different error types, but
not the total number of errors (see Figure 5-3).

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Figure 5-3. Display reconciliation issues

Refer to SAP Note 2714344 for more information about the identified error types. See
Table 5-1.

Table 5-1. Example of Financial Data Inconsistencies from Readiness Check Notes
Message Message Number Description Category Category Description
Nr Class

076 FIN_FB_ 121 Inconsistent amount in B Manual correction,

RECON second local currency for correction instructions
this line item (Ldg and 1) available - SAP Note
2714344
517 FIN_FB_ 293 Fields mismatch between B Manual correction,
RECON BSEG and NewGL line item correction instructions
table and 2 and 3 available - SAP Note
2714344
220 FIN_FB_ 66 Fields in BSIS and BSEG A Standard automated
RECON do not match correction available - SAP
Note 2956096
372 FIN_FB_ 15 Entry in BSIS with missing A Standard automated
RECON archiving flag (field correction available - SAP
xarch) Note 2956096
074 FIN_FB_ 111 Inconsistent amount for B Manual correction,
RECON updating in G/L for this correction instructions
line item (Ldg and 1) available - SAP Note
2714344

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It is essential to identify and rectify these database inconsistencies before

you execute SUM tools during the conversion process. Choose Monitor to analyze
database inconsistencies that were found in the last reconciliation run and to correct
possible errors.
Before using FIN_CORR_MONITOR, you must make sure that a reconciliation run
was performed. For this purpose, you can use the Reconciliation tab or the FIN_CORR_
RECONCILE program to find any inconsistencies or errors (see Figure 5-4).

Figure 5-4. Reconciliation run

Then you use the SE38 FIN_CORR_MONITOR program to analyze and correct the
errors (see Figure 5-5).
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Figure 5-5. Reconciliation Monitor

When you run this program, you can choose Display Error/Display Log (see
Figure 5-6).

Figure 5-6. Reconciliation Monitor selection criteria

You can display the issues using the following criteria (see Figure 5-7):

• Message Number

• Company Code

• Fiscal Year

• Document Number

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Figure 5-7. Reconciliation Monitor input screen

The Display Log option shows the correction logs for all corrections that were
executed using this transaction (see Figures 5-8 and 5-9).

Figure 5-8. Display Log option

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Figure 5-9. Reconciliation Monitor: Display log

You can choose analysis and correction options by selecting Display All Errors and
Correction Mode. In the correction mode, the correct option can be seen. The following
sections discuss eight example errors.

E xample 1: Error Message FIN_FB_RECON220: Fields

in BSIS and BSEG Do Not Match
There are 66 items in a document (50001009997) with this error message. Figure 5-10
shows the screen from FIN_CORR_DISPLAY_ISSUE.

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Figure 5-10. FIN_CORR_DISPLAY_ISSUE screen

Figure 5-11 shows the screen from FIN_CORR_MONITOR.

Figure 5-11. FIN_CORR_MONITOR screen

In order to rectify this issue, follow these steps.

Step 1: Execute the FIN_CORR_MONITOR program (see Figure 5-12).

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Figure 5-12. Display program screen

Step 2: Enter an error message that you are intending to correct and execute (see
Figure 5-13).

Figure 5-13. Reconciliation Monitor: Display error input screen

The system shows how many documents or line items contain that error message
(see Figure 5-14).

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Figure 5-14. Reconciliation Monitor: Errors displayed

You can navigate up to the document level by double-clicking the item (see
Figure 5-15).

Figure 5-15. Drill down on the errors displayed

Step 3: In the initial screen, select the item and then click the Correction Mode
button (see Figure 5-16).

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Figure 5-16. Correction mode

You will then see the screen in Figure 5-17, where you need to click the
Correct button.

Figure 5-17. Correct the entries

Step 4: Now the system will ask for confirmation as to whether BSEG/BSEG_ADD is
considered the correct value (see Figure 5-18).

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Figure 5-18. Confirmation message

If you click Yes, the system will correct the errors that are displayed. The system will
ask to execute in simulation and update modes.
Step 5: Display the log. The system will display the logs for all the corrections made
(see Figure 5-19).

Figure 5-19. Display log

In Figure 5-19, there are two logs—one for simulation and one for update mode (see
Figure 5-20 to 5-23).

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Figure 5-20. Reconcilliation

Figure 5-21. Reconcilliation

Figure 5-22. Warning about reconcillation process

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Figure 5-23. Reconciliation prior to S/4HANA

E xample 2: Error Message FIN_FB_RECON372: Entry

in BSIS with Missing Archiving Flag (Field xarch)
There are five items in a document (9100000001) with this error message.
Figures 5-24 and 5-25 show the screen from FIN_CORR_DISPLAY_ISSUE.

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Figure 5-24. FIN_CORR_DISPLAY_ISSUE

Figure 5-25. FIN_CORR_DISPLAY_ISSUE

To rectify this error, execute the following steps.

Step 1: Execute the FIN_CORR_MONITOR program (see Figure 5-26).

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Figure 5-26. FIN_CORR_MONITOR

Step 2: Enter an error message that you are intending to correct and execute (see
Figure 5-27).

Figure 5-27. Display error: Reconciliation Monitor

The system shows how many documents or line items have that error message (see
Figure 5-28).

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Figure 5-28. Display error

You can navigate up to the document level by double-clicking the item (see
Figure 5-29).

Figure 5-29. Drill down on the errors

Step 3: In the initial screen, select the item and click the Correction Mode button
(see Figure 5-30).

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Figure 5-30. Correction mode

You will then see the screen in Figure 5-31, where you need to click the
Correct button.

Figure 5-31. Correct the errors

Step 4: The system will ask for confirmation as to whether BSEG/BSEG_ADD is

considered the correct value (see Figure 5-32).

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Figure 5-32. Confirmation message

If you click Yes, the system will correct the errors. The system will ask to execute in
simulation and update modes (see Figure 5-33).

Figure 5-33. Simulate/update run

Step 5: Display the log. The system will display logs for all the corrections it made
(see Figure 5-34).

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Figure 5-34. Display log

Figure 5-34 shows two logs—one for the simulation and one for update mode.

E xample 3: Error Message FIN_FB_RECON74: Inconsistent

Amount for Updating in G/L for this Line Item (Ldg 0L)
Figures 5-35 to 5-37 show the screens from FIN_CORR_DISPLAY_ISSUE.

Figure 5-35. FIN_CORR_DISPLAY_ISSUE

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Figure 5-36. FIN_CORR_DISPLAY_ISSUE

Figure 5-37. Error analysis

Verify SAP Note 2714344.

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Execute the TFC_COMPARE_VZ program to compare BSEG and FAGLFLEXA. Figures 5-38
and 5-39 show the screens of the report output.

Figure 5-38. Comparison of Document Transaction Figures screen

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Figure 5-39. Comparison of Document Transaction Figures screen

Solution:

1. The inconsistencies can also be found/analyzed in the source

system by using the TFC_COMPARE_VZ program.

2. If there is an inconsistency in the source (e.g., shown in phase R21

by error FINS_RECON074), check SAP Note 2425426, which explains
an option to find/localize certain inconsistencies (found in a SAP
S/4HANA test-system conversion) automatically in the source
ERP system.

3. Make sure SAP Note 2640057 and SAP Note 73141 are
implemented before re-running phase MUJ.

4. Otherwise, contact SAP (component FIN-MIG-GL).

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E xample 4: Error Message FIN_FB_RECON76: Inconsistent

Amount in the Second Local Currency For This Line Item
(Ldg 0L)
Figures 5-40 and 5-41 show the screen from FIN_CORR_DISPLAY_ISSUE.

Figure 5-40. FIN_CORR_DISPLAY_ISSUE

Figure 5-41. FIN_CORR_DISPLAY_ISSUE

Local currency2 is not updated in the table.

Verify SAP Note 3019446 FIN_CORR_RECONCILE: FIN_FB_RECON 76, 77 does not
consider the currency customizing correctly.

E xample 5: Error Message FIN_FB_RECON517: Fields

Mismatch Between BSEG and NewGL Line Item Table
Figures 5-42 to 5-44 show the screens from FIN_CORR_DISPLAY_ISSUE.

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Figure 5-42. FIN_CORR_DISPLAY_ISSUE

Figure 5-43. FIN_CORR_DISPLAY_ISSUE

Figure 5-44. Analysis of the error

Verify SAP Note 2714344.

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E xample 6: Error FIN_FB_RECON 376: Entry on BSIK

with Missing Archiving Flag (Field xarch)
Figure 5-45 shows the errors identified by the program, which can be corrected as per
SAP Note 2956096.

Figure 5-45. SAP Note 2956096

In order to correct these errors, you have to click Correction Mode for the FIN_CORR_
MONITOR program (see Figures 5-46 and 5-47).

Figure 5-46. FIN_CORR_MONITOR program

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Select the error message and click the Correction Mode button, as highlighted in
Figure 5-47.

Figure 5-47. The Correction Mode button

If the message shown in Figure 5-48 is displayed, you have to make corrections to
FIN_CORR_MONITOR as per the following notes.

• 2755360 - Reconciliation prior to S/4HANA conversion

• 2793849 - Analysis and correction of G/L inconsistencies in ECC prior

to S/4HANA conversion- Application Coding

• 2836444 - Analysis and correction of G/L inconsistencies in ECC prior

to S/4HANA conversion- User Interface

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Figure 5-48. Display Error log screen

As part of these SAP Notes, you have to execute and make changes or corrections to
FIN_CORR_MONITOR:
• Program Note 2755360 to be executed as per SAP Note 2755360
• Program Note 2793849 to be executed as per SAP Note 2793849
• Program Note 2836444_NEW to be executed as per SAP Note 2836444

E xample 7: Error FIN_FB_RECON 374: Entry on BSID

with Missing Archiving Flag (Field xarch)
Figure 5-49 shows the errors identified by the program, which can be corrected as per
SAP Note 2956096.

Figure 5-49. SAP Note 2956096

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E xample 8: Error FIN_FB_RECON 398: Second Local

Currency in BKPF Inconsistent
Figure 5-50 shows the errors identified by the program, which cannot be corrected as per
SAP Note 2714344.

Figure 5-50. SAP Note 2714344

Preparation Phase SI Checks Execution (Functional)

Run the /SDF/RC_START_CHECK program (see Figures 5-51 and 5-52).

Figure 5-51. SI Checks execution

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Figure 5-52. SAP Simplification Item Check

E rror Messages
M
 odule – Finance
S
 I2: FIN_MISC_ML
Corrective actions: SAP has completed the required changes, as shown in Figure 5-53.

S
 I22: GENERIC_CHECKS

Figure 5-53. Generic checks

• SAP Note 1484142

• SAP Note 2749796

Corrective action: Report RS4SIC_PSMTABCORR (see Figures 5-54 to 5-56)

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Figure 5-54. RS4SIC_PSMTABCORR

Figure 5-55. RS4SIC_PSMTABCORR test run

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Figure 5-56. Report for RS4SIC_PSMTABCORR

Correction report RS4SIC_TNIW5CORR (see Figure 5-57).

Figure 5-57. Correction report for RS4SIC_TNIW5CORR

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S
 I1: FIN_GL
Figures 5-58 and 5-59 show this error message.

Figure 5-58. SI1: FIN_GL

Figure 5-59. Consistency check result

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The system changes FYV of CO area to K1 (see Figure 5-60).

Figure 5-60. Controlling area data

S
 I2: FIN_AA
Sub ID is FI_AA_ASSETCLASS (see Figure 5-61).

Figure 5-61. Consistency check results

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Path: /nspro ➤ Financial Accounting ➤ Asset Accounting ➤ Valuation ➤ Determine

Depreciation Areas in the Asset Class
T-code: OAYZ
Figure 5-62 shows the view before any changes.

Figure 5-62. Depreciation areas

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Figure 5-63 shows the view after the changes.

Figure 5-63. Depreciation area

After the corrections, Sub ID FI_AA_ASSETCLASS is no longer displayed (see

Figure 5-64).

Figure 5-64. Consistency check results

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Sub ID FI_AA_CUST_LEDGER
See Figure 5-65.

Figure 5-65. Consistency check results

Corrective action:
Path: /nspro ➤ Financial Accounting ➤ Asset Accounting ➤ Organisational
Structure ➤ Copy Reference Chart of Depreciation/Depreciation Areas
T-code: OADB (see Figure 5-66)

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Figure 5-66. Define the depreciation area

Path: /nspro ➤ Financial Accounting ➤ Asset Accounting ➤ Valuation ➤

Depreciation Area ➤ Specify Transfer of APC Values
T-code: OABC (see Figure 5-67)

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Figure 5-67. Specify transfer of APC values

Path: /nspro ➤ Financial Accounting ➤ Asset Accounting ➤ Valuation ➤

Depreciation Area ➤ Specify Transfer of Depreciation Terms

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T-code: OABD (see Figure 5-68)

Figure 5-68. Specify transfer of APC values

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Sub ID FI_AA_CUST_DEPRCHART
See Figure 5-69.

Figure 5-69. Consistency check result

Path: /nspro ➤ Financial Accounting ➤ Asset Accounting ➤ Organizational

Structure ➤ Assign Chart of Depreciation to Company code.
T-code: OAOB

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Figure 5-70 shows the view before any changes.

Figure 5-70. Assign chart of depreciation to company code

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Figure 5-71 shows the view after the changes.

Figure 5-71. Assign chart of depreciation to company code

Sub ID FI_AA_CUST_DEPRAREA
See Figure 5-72.

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Figure 5-72. Consistency check result

T-code: OABE

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Figure 5-73 shows the view before any changes.

Figure 5-73. Gross asset transfer

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Figure 5-74 shows the view after the changes.

Figure 5-74. Gross asset transfer

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Sub ID FI_AA_COMPONENTS
See Figure 5-75.

Figure 5-75. Consistency check results

T-code: SFW5
EA-FIN should be active (see Figure 5-76).

Figure 5-76. EA-FIN is active

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Sub ID FI_AA_CUST_ACCOUNT
See Figure 5-77.

Figure 5-77. Consistency check details

CoCd 00XX: Account 00XY-0000NNNNN is not allowed to be balance sheet account

(chart of deprec. ZCZ): See SAP Note 2618023.
As per SAP Note 2618023, new accounts are to be created or existing accounts are to
be changed (see Figure 5-78).

Figure 5-78. SAP Note 2618023

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Sub ID FI_AA_CUST_FISCYEAR
See Figure 5-79.

Figure 5-79. Consistency check

CoCd 00XX: Fiscal year YY99 is not yet closed; see SAP Note 2618023 (see
Figure 5-80).

Figure 5-80. SAP Note 2618023

Refer to SAP Note 2618023. The fiscal year needs to be closed; only the current fiscal
year can be open.

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Sub ID FI_AA_CUST_DEPRAREA_CURRENCY
See Figure 5-81.

Figure 5-81. Consistency check

Company code 00XX: Parallel currency area 32 not in asset master record; see SAP
Note 2618023 (see Figure 5-82).

Figure 5-82. SAP Note 2618023

Any missing parallel currency areas in the asset master record must be implemented
before installing SAP S/4HANA. To determine the values for this depreciation area, use
the Automatic Opening of a New Depreciation Area (RAFABNEW) program.

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M
 odule - HR
S
 I3: HR_LEARN
See Figures 5-83 and 5-84.

Figure 5-83. SI3: HR_LEARN

Figure 5-84. Simplification Item Check

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As per Note 2383837, SAP customers running S/4HANA on premise, HCM, and SAP
Learning Solution in one system are required to replace the SAP learning solution with
SuccessFactors Learning.
Transaction Code: SM30
Table: T77S0
Group: HRLSO – HRLSO – Remove X (Deactivate). See Figure 5-85.

Figure 5-85. Table T77S0

Module – Material Management

S
 I5: Logistics_MM-IM
See Figures 5-86 to 5-88.

Figure 5-86. Logistics MM-IM

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Figure 5-87. Consistency check results

SAP Note 2319579

Transaction: OMJI

Figure 5-88. Set material block

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Transaction OMO9 (see Figure 5-89)

Figure 5-89. Transaction OMO9

SI12: Logistics: MM-IM

See Figures 5-90 and 5-91.

Figure 5-90. Logistics MM-IM

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Figure 5-91. Consistency Check results

Execute the corrective notes from SNOTE 2542099.

SI1: Logistics MM-IM

See Figures 5-92 and 5-93.

Figure 5-92. Logistics MM-IM

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Figure 5-93. Consistency check results

As per Note 2197392, material documents related to the materials that are missing in
MARA should be archived.

M
 odule – PP
SI2: Logistics: PP_MRP
See Figures 5-94 and 5-95.

Figure 5-94. Logistics PP-MRP

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Figure 5-95. Consistency check result

After you execute the correction notes as per 2469139 and 2216528, the pre-upgrade
check for storage location migration report MRP_AREA_STORAGE_LOC_MIGRATION issue will
be resolved.
The system displays the list of simplification items, as shown in Figures 5-96 and 5-97.

S
 I5: MasterData_PM

Figure 5-96. Master data PM

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Figure 5-97. Consistency check result

Before any corrective actions, check tables T130F and T130F_C (see Figure 5-98).

Figure 5-98. Table T130F

If there is an error that says that the T130F_C table is missing, check Note 2330063 for
error resolution.

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As per 2330063, NOTE_2323185 should be implemented in the source system (see

Figure 5-99).

Figure 5-99. NOTE_2323185

Step 1: Execute the test run (see Figure 5-100).

Figure 5-100. NOTE_2323185 test run

Step 2: Update and activate. the System creates the T130F_C table.
Step 3: Change the log (see Figure 5-101).

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Figure 5-101. Change log

Verify the table entries in T130F_C; there are no values. Execute the migration report
RMMT130F_CPY. (This report should be executed for all clients.)
Execute a test run and uncheck the test run after the desired results (see
Figure 5-102).

Figure 5-102. Report RMMT130F_CPY

The result is shown in Figure 5-103.

Figure 5-103. Result of migration report

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Entries are updated to T130F_C that are copied from the T130F table (see
Figure 5-104).

Figure 5-104. The T130F_C table

S
 I32: Logistics_PLM
See Figures 5-105 and 5-106.

Figure 5-105. Logistics PLM

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Figure 5-106. Consistency check results

Execute the corrective notes from SNOTE, Note 2943919 (see Figures 5-107
and 5-108).

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S
 I5: Masterdata_PM

Figure 5-107. Master data PM

Figure 5-108. Consistency check results

Execute the corrective notes from SNOTE, Note 23300063.

S
 I2: Logistics_PP-MRP
See Figures 5-109 to 5-111.

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Figure 5-109. Logistics_PP-MRP

Figure 5-110. Logistics_PP-MRP

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Figure 5-111. Consistency check results

Corrective actions:

1. Convert the planning file entries (see Figures 5-112 and 5-113).

Figure 5-112. Conversion of planning

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Figure 5-113. Conversion of planning file entries

2. Activate the MRP areas (see Figure 5-114).

Figure 5-114. Activation of MRP areas

3. Maintain a special procurement type when customizing for stock

transfers within the same plant (see Figure 5-115).

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Figure 5-115. Maintain special procurement

4. Verify MRP Type ND with MRP Procedure N (see Figure 5-116).

Figure 5-116. MRP types

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MRP AREA for Plant:**** Storage location: **** (see Figure 5-117).

Figure 5-117. Assign storage location

M
 odule SD
See Figure 5-118.

Figure 5-118. Simplification Item List SD

Corrective actions:

1. SI2: SD_PRIC - Data Model Changes in SD Pricing

Refer to SAP Note 2267308.

Data model simplifications in Sales and Distribution (SD) pricing

have been made.

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The following DDIC changes and interface changes have been

made to the condition technique:

• DDIC changes

• Interface changes

Elements in KONV have also been changed. You need to make all
the ABAP changes. No impact on business processes is expected.

2. SI14: SD_BILLING_OM: Billing Document Output Management

Refer to SAP Note 2267376.

The new output management for SAP S/4HANA, called SAP

S/4HANA output control, was introduced.

SAP S/4HANA output control only supports the “pure” output

channels, while the NAST-based output can also be used for
several kinds of post-processing.

SAP S/4HANA output control cannot be used if one of the

following NAST transmission mediums is required:

• Eight special functions

• Nine events (SAP Business Workflow)

• A distribution (ALE)

• T tasks (SAP Business Workflow)

In this case, switch back to NAST-based output management.
Choose Application Inactive if you want to switch back to NAST.

3. SI16: SD_ Miscellaneous minor deprecations in SD Area

Refer to SAP Note 2267395.

In SAP S/4HANA, only the most recent and most comprehensive

version is available for many of these objects. Deprecated versions
have been disabled. In the SD area, a couple of deprecated BAPI
function modules and SAPGUI transactions have been disabled.
SAP Note 2228098 contains a list of objects not available in SAP
S/4HANA and, if available, the respective successors object.

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In the SD area, a couple of deprecated BAPI function modules and

SAPGUI transactions have been disabled.

It is recommended to use the successor object instead of the

deprecated object.

You need to make all the ABAP changes. No impact on business

processes expected.

4. SI1: SD_GENERAL - SD Simplified Data Models

Refer to SAP Note 2267306.

The following data model simplifications have been implemented

for the SD area:

• Eliminate the status tables VBUK and VBUP: Status fields have been
moved to the corresponding header and item tables - VBAK and
VBAP for sales documents, LIKP and LIPS for deliveries, and VBRK
for billing documents.

This leads to increased performance:

• Selection of document header data and document header status

requires one SELECT statement (VBAK) instead of two SELECT
statements (VBAK and VBUK). This is similar for the item tables.

Views containing document header data and document header

status can be built without the JOIN condition.

• Simplification of document flow table VBFA

• Field length extension of SD document category

• Data element VBTYP (Char1) has been replaced by data element

VBTYPL (Char4)

• Field VBTYP_EXT (Char4) has been eliminated

• Elimination of redundancies: Document index tables VAKPA,

VAPMA, VLKPA, VLPMA, VRKPA, and VRPMA

• Elimination of redundancies

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• Rebate index table VBOX: See simplification item “SD Rebate

Processing replaced by Settlement Management,” SAP
Note 2267377

• LIS tables S066, S067: See simplification item “Credit

Management,” SAP Note 2270544

The changes are described in more detail in the guidelines

attached to the related SAP Note 2198647.
You need to make all the ABAP changes. No effects on business
processes are expected.

5. SI4: SD_CM 2270544 - Credit Management

Credit Management (FI-AR-CR) is not available as part of SAP

S/4HANA. The functional equivalent in SAP S/4HANA is SAP
Credit Management (FIN-FSCM-CR).

Analyze the current system. If FI-AR-CR based credit management

is active or not.

Indicators for the use of FI-AR-CR Credit Management are as

follows:

• If you are using transaction FD31 or FD32 to maintain credit

account master data (this data is stored in the KNKK and
KNKA tables)

• If you are using transactions VKM1-4 to process sales documents

(e.g., releasing blocked sales orders)

• Verify if exposure data is stored and updated continuously in

database tables S066 and S067

You then need to convert to FIN-FSCM-CR based credit

management.

6. SI7: SD_ANA - Simplification in SD Analytics

Refer to SAP Note 2267348.

You need to analyze this by ABAP team for possible use.

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7. SI5: SD_RRn (see Figure 5-119).

Figure 5-119. Consistency check

Check Sub ID: SAP_SD_BIL_RA_CHECK_REVFIX (see Figure 5-120).

Migration from SD Revenue Recognition to Revenue Accounting required. See SAP
Note 2777486.

Figure 5-120. SAP Note 2777486

As per SAP Note 2777486, this is a skippable error.

W
 arnings
S
 I5: CT_OM
See Figures 5-121and 5-122.

Figure 5-121. CT_OM

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Figure 5-122. Consistency check results

As per Note 2679118, any duplicate entries in the following tables must be deleted:

• APOC_D_OR_ROOT

• APOC_D_OR_ITEM

• APOC_D_OR_ITEM_A

• APOC_D_OR_ITEM_E

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Important Checks in FI-GL Before Conversion

in the ECC System
You need to conduct SI checks with the /SDF/RC_START_CHECK program via SE38. The
Simplification Item check item ID SI1_FI_GL shows checks for the General Ledger (see
Figure 5-123).

Figure 5-123. Simplification item check

After fixing the error, you will see the results in Figure 5-124.

Figure 5-124. Consistency Check results

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You need to find the potential root cause of the error and resolve it. The SI Check
Report is verified in all clients of the system except in 000 and 066, as client 000 is a
technical client and client 066 is Early Watch Client. So there is no need to check them.
There are Sub ID of these checks, which you can see in detail in Figure 5-125.

Figure 5-125. Consistency Check results

You have to verify all the sub IDs and fix the errors as per SAP specified SAP Note on
the screen.
Check 1: Reconcile FI-AA with FI-GL
Transaction: ABST/ABST2
All the differences must be eliminated prior to the conversion process (see
Figure 5-126).

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Figure 5-126. ABST2 results

Check 2: Reconcile Accounts Payables and Accounts Receivables with Main GL using
Reports SAPF190/TFC_compare_VZ (see Figure 5-127).

Figure 5-127. TFC_COMPARE_VZ

Check 3: Reconcile MM with GL

Programs: RM07MBST/RM07MMFI (see Figure 5-128)

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Figure 5-128. Programs RM07MBST/RM07MMFI

Check 4: Reconcile Ledger: Transaction GCAC (see Figure 5-129)

Figure 5-129. GCAC results

Check 5: Check FI documents with FI balance: F.03/FAGLF03

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Conclusions
Typically, conversions, upgrades, and migrations are stressful and frustrating for
customers and consultants, as they involve risk in migrating the data from the source to
the target system. To avoid risk and to minimize stress, the stakeholders must plan for
the preparation and realization phase activities very carefully.
During the discovery phase, there is much to analyze on the source system. This
analysis helps you make a list of preparation and realization activities and schedule
them for a smoother transition to SAP S/4HANA.
Successful conversion projects are driven by effective planning and preparation of
the source system.

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CHAPTER 6

Preparation Phase
(Preparation for
Conversion of SAP ECC
Asset Accounting to SAP
S/4HANA New Asset
Accounting) – Part 2
This chapter provides configuration and other activities to be completed as a part of
preparation. This lesson focuses completely on Asset Accounting. Asset Accounting
needs special attention, as there are several changes in this module.
In SAP S/4HANA, “New Asset Accounting” is the only Asset Accounting
functionality. Classic asset accounting is not available once you move to SAP
S/4HANA. You need to complete the basic configuration as a preparation activity for
conversion before you execute SUM on the ECC system. The new Asset Accounting
activation is at the client level. The Ledger and Account approaches are available after
moving to S/4HANA.
SAP ECC to SAP S/4HANA Conversion happens broadly in two phases—the
Preparation and Realization phases.
The Software Update Manager (SUM) supports these conversion activities. During the
preparation phase, a simplification check is performed to determine the prerequisites
for installing SAP S/4HANA.

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SUM can be executed only after the prerequisites have been met (that means the SI
check should not have any errors). After SUM, you need to prepare for the Conversion
cockpit, then the transaction data can be migrated.

C
 onversion/Migration Scenarios
1. Even if you are using classic Asset Accounting on ECC, New Asset
Accounting on ECC, or New Asset Accounting on HANA (ECC
on HANA), migration to new Asset Accounting on S/4HANA is
mandatory.

2. If you have never used classic Asset Accounting or new Asset

Accounting, but are planning to implement new Asset Accounting
on SAP S/4HANA, then the chart of depreciation migration is
not needed.

3. If you are converting from SAP Simple Finance 1503 or 1605 (that
is, Simple Finance 2.0 or Simple Finance 3.0), migration of chart of
depreciation is not needed.

4. If you are upgrading from 1511 or 1610 or 1709 or 1809 or 1909

or 2020 to 2021 or higher versions (from one version of SAP
S/4HANA to higher versions of SAP S/4HANA), migration of chart
of depreciation is not needed.

5. All charts of depreciation that are assigned to a company code

must be migrated. All the data of a company code must be
migrated.

EA-FIN Financial Extension

Using the new depreciation calculation engine is mandatory. Refer to SAP Note 1498047
on EA-FIN. If it is not activated in the source system, activate it in Sandbox system and
test meticulously (see Figure 6-1).

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Figure 6-1. EA-FIN activation

It is important to note that before the installation of the SAP S/4HANA, you must
activate the Financials Extension (EA-FIN). If you need to activate the extension EA-FIN,
refer to SAP Note 965032 before you activate it.

1. Create a test system with your production data.

2. Execute program RAAFAR00 in the test run first to make sure data
in the old depreciation calculation is consistent (see Figures 6-2
to 6-4).

Figure 6-2. ABAP Editor: Initial screen

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Figure 6-3. Recalculate deprecation

Figure 6-4. Program RAAFAR00

1. Analyze and fix the errors before you execute the update run.
Refer to SAP Note 965032.

2. If all of the differences have been fixed, you can execute RAAFAR00
in the update run.

3. Activate EA-FIN. Note that this activation can no longer be

undone. Refer to SAP Note 1121965 before activating.

4. Test your business processes.

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5. Refer to SAP Note 1025126.

6. If all the business processes are working as desired, you can

perform the same steps in the production system.

Before moving to SAP S/4HANA, you have to make sure all the prerequisites for new
Asset Accounting are met. This is one of the requirements for moving to SAP S/4HANA.

Example 2 Preparation Activity

Periodic asset postings, currencies:

1. Based on the source system functionality, verify if you have to

execute the program RAPERB2000. Make sure that all the errors can
be rectified. After conversion, this program is no longer available.

2. In the Source system, you might be having entries on OB22. Verify

if you have implemented the corresponding parallel currency
areas in Asset Accounting. If not, define additional depreciation
areas for Group currencies.

In this example, we have two currencies for one company code: the Local Currency
and the Global Currency (see Figure 6-5).

Figure 6-5. Ledger to company code

The ledger is 0L assigned to GAAP. The chart of depreciation must have two
depreciation areas (see Figure 6-6).

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Figure 6-6. Depreciation area

Book depreciation posts in real-time and group depreciation does not post. This is
only for reporting purposes.

• Make sure that no update terminates from direct postings in the

system (see Figure 6-7).

Figure 6-7. Update requests

Perform a complete period-end closing in Asset Accounting for the previous period
to be closed. Execute the periodic depreciation posting run (RAPOST2000).
Reconcile your general ledger with the Asset Accounting subsidiary ledger, both for
your leading valuation and for parallel valuations (see Figures 6-8 and 6-9).

Figure 6-8. Reconcil. program

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Figure 6-9. RAPOST2000

Execute the periodic APC postings (RAPERB2000) completely and without errors; a
current timestamp must be set (see Figure 6-10).

Figure 6-10. RAPERB2000

All periodic APC postings must be completed before SUM (see Figure 6-11).

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Figure 6-11. Periodic Asset postings

The migration must take place at a time when only one fiscal year is open in Asset
Accounting. If not, the system throws an error message, as prerequisites are not met for
conversion (see Figure 6-12).

Figure 6-12. Display logs – RASFIN_MIGR_PRECHECK

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The same appears as an error in the Simplification Item Check Report (see
Figures 6-13 and 6-14).

Figure 6-13. SAP Simplification Item List

Figure 6-14. Simplification Item Check and Consistency check results

Verify which fiscal year is closed in your company code in Customizing for Asset
Accounting under Preparations for Going Live. Choose SPRO ➤ Financial Accounting
(New)➤ Asset Accounting ➤ Preparing for Production Startup ➤Tools Reset Year-End
Closing. Reset year-end closing per company code (see Figure 6-15).

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Figure 6-15. Year-end closing

You need to close the fiscal year 2020 and keep 2021 open. Close all the fiscal years
except the current fiscal year. Lock the asset accounting via OB52 (posting periods )
to avoid further asset transactions. Refer to SAP Note 2406313 for any deactivated
company codes.
Even status “Company code deactivated - later reporting allowed” does not work
here. This status normally means that all fixed assets are deactivated, a year-end closing
has been performed for all fiscal years of the company code, and the company code is
deactivated. This is often not the case.
As per SAP Note 2406313, if a company code has the status “Company code
deactivated - later reporting allowed,” this means that the company code has been
deactivated from the point of view of Asset Accounting. This means that, among other
things, the following conditions are met:

• All assets of the company code are deactivated.

• A year-end closing has been performed for all fiscal years of the
company code.

• The company code is deactivated. (Customizing activity: Financial

Accounting (new) ➤ Asset Accounting (new) ➤ Preparations for
Going Live ➤ Production Startup ➤ Activate Company Code”)

SAP Note 2406313 Shows Two Alternatives

Alternative 1: Archiving No Migration (Conversion)
We recommend that you archive all Asset Accounting-relevant data of the company
code. You must execute archiving before the technical upgrade, still on SAP ERP 6.0.
To fully archive all data of a company code, proceed as described in SAP Note 2154712.
A migration of the chart of depreciation is not required if all of the data of the assigned
company codes is archived.

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Alternative 2: Manual Migration of Chart of Depreciation and Migration

of Transaction Data
Alternatively, you can migrate the chart of depreciation manually and then migrate the
transaction data of the company code. For technical reasons, only the current fiscal
year can be open for a migration. Any fiscal years preceding it must be closed. This is
possible only if you have also deactivated the company code and have ensured that
the conditions described previously have been met. Otherwise, you cannot meet the
technical condition required for the migration, which is to carry forward the year-end
closing.
As a general rule, it is not possible and not recommended to automatically migrate
the chart of depreciation, since this is based on old (outmoded) customizing settings.
Proceed as follows:

1. Migrate the chart of depreciation manually (for more information,

see the Migration Guide in the application documentation).

2. Change the status of the company code in Asset Accounting, since

status 3 (Company code deactivated - later reporting allowed) is
not allowed for the migration.

Change the status in customizing for Asset Accounting (new) at

Preparations for Going Live ➤ Production Startup ➤ Activate
Company Code.

3. Migrate the documents of the company code.

4. Following the successful migration of the company code, change

the status of the company code back again. This ensures that in
the future, further posts to the company code cannot be made.

Refer to the SAP Note for further information.

Checking the Prerequisites Before Starting SUM for Conversion

Before SAP S/4HANA 1809, we used to execute precheck reports for Asset Accounting
RASFIN_MIGR_PRECHECK. Refer to the SAP Note 1939592. The later Simplification Item
Check Report includes these Asset Accounting checks. Both show the same results
(see Figures 6-16 to 6-18).

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Figure 6-16. Precheck

Figure 6-17. Prerequisites for FI-AA migration

Figure 6-18. RASFIN_MIGR_PRECHECK

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You can also use report /SDF/RC_START_CHECK Simplification Item-Check (SI-Check)

(see Figures 6-19 and 6-20).

Figure 6-19. Simplification Items List

Figure 6-20. Simplification Item List

The Asset Accounting element ID SI2 FIN_AA (which you can see in Figure 6-20)
shows the checks for Asset Accounting.
We can also see some additional information in the error message itself. Refer to SAP
Note 2618023 for reasons and to see how to fix the error.
Figures 6-21 and 6-22 show an example of fixing some of the error messages from the
SI check report.

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Check Item “SI2: FIN_AA”

Sub ID – FI_AA_ASSETCLASS

Figure 6-21. Consistency Check results

Path: /nspro ➤ Financial Accounting ➤ Asset Accounting ➤ Valuation ➤ Determine

Depreciation Areas in the Asset Class
T-code: OAYZ
Figure 6-22 shows it before the changes.

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Figure 6-22. Depreciation area

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Figure 6-23 shows it after the changes.

Figure 6-23. Depreciation area

After Corrections, Sub ID – FI_AA_ASSETCLASS is no longer displayed (see Figure 6-24).

Figure 6-24. Consistency Check results

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Sub ID – FI_AA_CUST_LEDGER (see Figure 6-25).

Figure 6-25. Consistency Check Results

C
 orrection Action
Path: /nspro ➤ Financial Accounting ➤ Asset Accounting ➤ Organizational Structure ➤
Copy Reference Chart of Depreciation/Depreciation Areas

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T-code: OADB (see Figure 6-26).

Figure 6-26. Define depreciation area

Path: /nspro ➤ Financial Accounting ➤ Asset Accounting ➤ Valuation ➤

Depreciation Area ➤ Specify Transfer of APC Values
T-code: OABC (see Figure 6-27).

Figure 6-27. Specify transfer of APC values

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Path: /nspro ➤ Financial Accounting ➤ Asset Accounting ➤ Valuation ➤

Depreciation Area ➤ Specify Transfer of Depreciation Terms
T-code: OABD (see Figure 6-28).

Figure 6-28. Specify transfer of APC values

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Sub ID - FI_AA_CUST_DEPRCHART (see Figure 6-29).

Figure 6-29. Consistency check result

Path: /nspro ➤ Financial Accounting ➤ Asset Accounting ➤ Organizational

Structure ➤ Assign Chart of Depreciation to Company code.
T-code: OAOB
Figure 6-30 shows before the changes.

Figure 6-30. Assign chart of depreciation to company code

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Figure 6-31 shows after the changes.

Figure 6-31. Assign chart of depreciation to company code

Sub ID - FI_AA_CUST_DEPRAREA (see Figures 6-32 and 6-33).

Figure 6-32. Consistency check result

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T-code: OABE
Figure 6-33 shows it before changes.

Figure 6-33. Gross Asset Transfer

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Figure 6-34 shows after the changes.

Figure 6-34. Gross asset transfer

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Sub ID - FI_AA_COMPONENTS (see Figure 6-35).

Figure 6-35. Consistency check results

T-code: SFW5
The EA-FIN should be active (see Figure 6-36).

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Figure 6-36. EA-FIN is active

An Overview of the SAP Asset Accounting Migration Flow

As the first step of conversion, you should check if the prerequisites for the migration to
new Asset Accounting have been met. If not, you need to do them manually. Here are the
steps are to be considered for adjusting the chart of depreciation.

1. Financial Accounting (New) ➤ Asset Accounting ➤

Organizational Structure ➤ Assign Chart of Depreciation to
Company Code. This step is to verify assignment.
2. To verify currencies and accounting principles to the ledger/
company code, use the following steps.

3. SPRO: Financial Accounting (New) ➤ Financial Accounting

Global Settings (New) ➤ Ledgers ➤ Ledger.

4. Which parallel currency areas are assigned for the accounting

principles in your depreciation area?

5. SPRO: Financial Accounting (New) ➤ Asset Accounting ➤

Valuation ➤ Depreciation Areas ➤ Define Depreciation Areas.

6. Check the transfer of APC values for your parallel currency areas.

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7. SPRO: Financial Accounting (New) ➤ Asset Accounting

➤ Valuation ➤ Depreciation Areas ➤ Specify Transfer of
APC Values:

a) Check the copy rules for depreciation terms for your parallel
currency areas.

b) SPRO: Financial Accounting (New) ➤ Asset Accounting

➤ Valuation ➤ Depreciation Areas ➤ Specify Transfer of
Depreciation Terms.

c) Check the currencies that are assigned to your depreciation areas.

d) SPRO: Financial Accounting (New) ➤ Asset Accounting ➤

Valuation ➤ Currencies ➤ Define Valuation Areas for Foreign
Currencies.

e) Check the currency types/valuations that are assigned to your

depreciation areas.

f ) SPRO: Financial Accounting (New) ➤ Asset Accounting ➤

Valuation ➤ Currencies ➤ Specify the Use of Parallel Currencies.

8. Perform period-end closing:

a. Need to lock the system and users to avoid postings during

migration

b. Execute period-end closing for the previous month in Asset

Accounting.
c. Reconcile the general ledger with the Asset Accounting.

9. Check the prerequisites automatically:

Run Simplification Item Checks (SI checks) to check the

prerequisites for conversion. Ask the consultant to take a backup.

10. Then run SUM to install SAP S/4HANA.

11. After SUM, run the following steps (see Figure 6-37).

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Figure 6-37. Preparation and migration of customizing for Asset Accounting

Run the steps sequentially. That means the Asset Accounting step
is after the GL and Accrual Engine preparations steps.

12. Migration to new Asset Accounting in SAP S/4HANA (see

Figure 6-38).

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Figure 6-38. Migration for New Asset Accounting

Then perform additional customizing settings manually, as shown in Figure 6-39.

Figure 6-39. Adjustments in New Asset Accounting

You check if all the prerequisites for activating New Asset Accounting are met
(see Figures 6-40 and 6-41).

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Figure 6-40. Prerequisites for parallel valuation

Figure 6-41. Prerequisites to Activate New Asset Accounting

Finally, you need to activate new Asset Accounting (see Figure 6-42).

Figure 6-42. Activate New Asset Accounting

There are two possibilities when you are activating new Asset Accounting:

1. The activation is successful in the client system.

2. The activation is partially successful in the client system.

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With a partial successful activation, you need to analyze the errors in Customizing
for Asset Accounting (New), Check Prerequisites for Activating Asset Accounting (New)
(execute the FAA_CHECK_ACTIVATION transaction). See Figures 6-43 and 6-44.

Figure 6-43. New Asset Accounting details view

Figure 6-44. FAA_CHECK_ACTIVATION

To force activation in non-productive systems, use transaction code FAA_DO_

ACTIVATION. Authorization object S_TABU_DIS is necessary with ACTVT = '02' and
DICBERCLS. Activate new Asset Accounting using the FAA_DO_ACTIVATION transaction.
You have to correct all of the errors before finally activating. It should appear as shown in
Figure 6-45.
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Figure 6-45. FAA_DO_ACTIVATION

 onfiguration of Chart of Depreciation Under

C
Ledger Approach
During migration to Asset Accounting (new) or during the activation of Asset Accounting
(new), the system checks the prerequisites. If the system does configure properly, it
throws error messages. Ledgers assigned to the company code and the ledgers that are
to be posted via the chart of depreciation should be identical. If they are not, it is not
possible to migrate to Asset Accounting (new) and activate it.
In Asset Accounting (new) of SAP S/4HANA, you must make sure that all ledgers in
which the company code updates its balances in the general ledger are also updated via
Asset Accounting.
For example, you might have assigned two ledgers to the company code. In Asset
Accounting, you might have only one ledger assigned in the chart of depreciation.
Because all the ledgers are not assigned to the chart of depreciation, the system throws
error messages.

Parallel Accounting Using the Ledger Approach

This example helps to ensure that both settings are correct before the system conversion
process. Define the accounting principles and the Assign Accounting principles to
Ledger groups (see Figure 6-46).

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Figure 6-46. Assignment of accounting principles to target ledger group

Define Settings for Ledgers and Currency Types (see Figures 6-47 to 6-49).

Figure 6-47. Change view ledger overview

Figure 6-48. Change View Accounting Principles for Ledger and Company Code

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Figure 6-49. Define Settings for Ledgers and Currency Types

Choose Asset Accounting ➤ General Valuation ➤ Depreciation Areas ➤ Define

Depreciation Areas ➤ Define Depreciation Areas. The chart of depreciation with two
ledgers (0L and 2L) is shown in Figure 6-50.

Figure 6-50. Define Depreciation Areas

With Asset Accounting (new), the posting indicator supports the following four
values (see Figure 6-51).

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Figure 6-51. Posting indicators

For the depreciation areas, choose the correct posting indicator. For the ledger
approach, the leading area of the parallel valuation also contains the Area Posts in the
Realtime option.

Specify Transfer of APC Values

Verify the “Specify Transfer of APC Values” option for depreciation areas that post their
APC to general ledger accounting in real-time. Leading areas need to be set to 00. Those
depreciation areas never use values from a different depreciation area. Set the key to
initial; the system displays the key 00 for the depreciation area when you press Enter.
Check the entry. Depreciation areas 01 and 32 should have entry 00.
Choose Financial Accounting under Asset Accounting ➤ General Valuation ➤
Depreciation Areas ➤ Specify Transfer of APC Values (see Figure 6-52).

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Figure 6-52. Specify transfer of APC values

Specify Transfer of Depreciation Terms (see Figure 6-53).

Figure 6-53. Specify Transfer of Depreciation Terms

Specify the Use of Parallel Currencies (see Figure 6-54).

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Figure 6-54. Specify the Use of Parallel Currencies

T echnical Clearing Account for Integrated

Asset Acquisition
You can assign the technical clearing account by choosing Accounting ➤ Asset
Accounting ➤ Integration with General Ledger Accounting ➤ Technical Clearing
Account for Integrated Asset Acquisition ➤ Define Technical Clearing Account for
Integrated Asset Acquisition (see Figure 6-55).

Figure 6-55. Define Technical Clearing Account for Integrated Asset Acquisition

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The balance of this account is zero at any time. With the ledger approach, it balances
to zero per ledger and account assignment. With the account approach, you need to
assign the technical clearing account for integrated asset acquisition together with the
contra account.
The Technical Clearing Account Parameters account is a balance sheet created as a
reconciliation account for fixed asset accounts.
There is no need to set management of line items because the account is a
reconciliation account (see Figures 6-56 and 6-57).

Figure 6-56. Technical Clearing Account Parameters

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Figure 6-57. Technical Clearing Account Parameters

This account must be given only in the configuration shown above, not in the AO90.
(The account cannot be defined in the account determination for Asset Accounting,
such as with tables T095, T095B, and T095P.)
Be sure to remember these points:

• It is not possible to reverse Finance and Asset Accounting documents

(FB08, AB08) that have been posted before conversion, so you need
to verify if you have any business need to reverse them as a part of
preparation activity. Once the system is converted, you can post a
manual transfer posting rather than use FB08 and AB08. Negative
postings are not supported after conversion. Identify the need for
these well in advance.

• Batch input is no longer supported for AB01.

• Transaction types restricted to depreciation areas are not supported.

• You can use AB01L in place of ABSO_OLD.

SAP S/4HANA New Asset Accounting has many benefits that help you meet different
business needs. Consider these examples:

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• Flexible leading valuation.

• One depreciation area for each accounting principle/valuation that

posts in real-time.

• Delta areas are no longer needed to portray a parallel valuation.

• Different fiscal year variants can be assigned to different ledger

groups. A prerequisite is that the variants should have the same start
and end date.
• We can see separate documents for each accounting principle.

• The depreciation areas have equal status. No need for the hard
coupling of depreciation area 01 as the “leading depreciation area.”

• For each accounting principle or valuation system, post in real-time.

• No redundancy in data storage.

• Reconciliation between G/L and AA is ensured by design.

• Reconciliation step in financial close is not required.

• All nonstatistical items are updated as universal journal entries.

• Reporting for previous fiscal years is possible even after migration.

• Assignment of depreciation area to accounting principle.

• Simplified chart of depreciation.

• New document display AB03.

• New transactions for ledger group.

• Flexible account determination.

• Simple close, fast close, and soft close.

• Transparency throughout the period.

• Plan values in real-time. These values will be updated with every

master data change and every asset transaction.

• Elimination of reconciliation steps as Asset Accounting and GL posts

to single universal journal entry table ACDOCA.

• Fast depreciation posting run AFAB. New program for depreciation.

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• The system creates a corresponding ledger group-specific document.

• Automatic postings are made to the technical clearing account for

integrated asset acquisitions.

• You can post to accounting principles or depreciation areas in

transaction AB01L.

• Only relevant accounting principles are represented on the asset.

• If a certain accounting principle is not needed to post APC online to

the general ledger, the posting is redirected to account for the non-­
operating expenses (T095-KTNAIB field).

• You can assign the settlement rule for each line per depreciation area
using transaction AIAB.

• Accounting principle-specific postings can also be posted from

Controlling.

• FAGLGVTR helps for balance carry forward in Asset Accounting. No

need to execute twice—once for GL and the other run for AA. A single
run works for both.

• The Display Asset Worklist app shows a clear picture of the fixed asset
masters that you are responsible for.

 onfiguration of a Chart of Depreciation Using

C
the Account Approach
Define the accounting principles and assign them to ledgers as shown here:
Define accounting principles in Customizing for Financial Accounting under
Financial Accounting Global Settings ➤ Ledgers ➤ Parallel Accounting ➤ Define
Accounting Principles (see Figure 6-58).

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Figure 6-58. Define Accounting Principles

Assign Accounting Principle to Ledger Groups (see Figure 6-59).

Figure 6-59. Assign Accounting Principle to Ledger Groups

Define Ledger Groups as follows:

Financial Accounting (New) ➤ Financial Accounting Global Settings (New) ➤
Ledgers ➤ Ledger ➤ Define Ledger Group (see Figure 6-60).

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Figure 6-60. Define Ledger Group

Enter 0L and select the representative ledger in the Group field (see Figure 6-61).

Figure 6-61. Ledger Assignment

Enter 0L and select the representative ledger in the Group field (see Figure 6-62).

Figure 6-62. Ledger assignment

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Define Settings for Ledgers and Currency Types: Financial Accounting ➤ Financial
Accounting Global Settings ➤ Ledger ➤ Define Settings for Ledgers and Currency Types
(see Figure 6-63).

Figure 6-63. Define Settings for Ledgers and Currency Types

You get a message, as shown in Figure 6-64.

Figure 6-64. Information message

Press Enter to accept. We have to add both accounting principles to the 0L ledger
(see Figure 6-65).

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Figure 6-65. Overview of Accounting principle to ledger

Chart of depreciation (see Figures 6-66 and 6-67).

Figure 6-66. Change Define Depreciation Areas view

Figure 6-67. Chart of depreciation

Specify Transfer of APC Values (see Figure 6-68).

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Figure 6-68. Specify transfer of APC values

Specify Transfer of Depreciation Terms (see Figure 6-69).

Figure 6-69. Specify transfer of depreciation terms

Check Active Charts of Depreciation for Asset Accounting: Financial Accounting ➤

Asset Accounting ➤ Overview for Experts ➤ Check Active Charts of Depreciation for
Asset Accounting (see Figure 6-70).

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Figure 6-70. Check active charts of depreciation for Asset Accounting

Conclusions
Before a system conversion to SAP S/4HANA, you must perform year-end closing for
the previous years and period-end closing activities for the current fiscal year and the
current period in Asset Accounting and other subledgers. This must be done to make
sure a clear cutoff is made for the conversion. Reconcile GL with all other subledgers
(submodules FI) along with FI-AA.
A few advantages of New Asset Accounting are the following:

• The New Fixed Asset Accounting based on ACDOCA.

• No redundancy in data storage. It posts only in the universal journal

entry table.

• Reconciliation between G/L and AA is ensured by design. So

reconciliation time can be saved.

• All non-statistical items are updated in ACDOCA.

• Even after migration, reporting for previous fiscal years is possible.

• Transparent assignment of depreciation area to ledgers and

accounting principles.

• Depreciation posted with all details.

• Accumulated depreciation and depreciation cost by asset.

• Auditability and simplicity.

• Independent and complete depreciation areas of equal power.

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• Simplified chart of deprecation:

• New document display

• New transactions for ledger group specifics

• Quick and transparent throughout the period

• Asset balances in real time

• APC postings not needed anymore

• Plan values in real-time

• Elimination of reconciliation steps

• Fast depreciation posting run

• New data structures and parallel processing

• Navigation and drill-down per accounting principle and ledger

• Posting to different periods is now possible

This chapter covered Credit Management Preparations for Conversion, Material

ledger Preparation for Conversion, Actual Costing Preparation for Conversion, Trade
Finance Preparation for Conversion, Revenue Recognition Preparation for Conversion,
and Preparation for Classic Cash Management for Conversion. The next chapter covers
the most important preparation activities of SAP S/4HANA conversion.

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CHAPTER 7

Preparation Phase
(Preparation Prior to
Conversion) – Part 3
This chapter provides an overview of the preparation and migration activities that are
needed during SAP S/4HANA conversion related to the following functional core areas:

• Credit Management Preparations for Conversion

• Material Ledger Preparation for Conversion

• Actual Costing Preparation for Conversion

• Trade Finance Preparation for Conversion

• Revenue Recognition Preparation for Conversion

• Preparation for Classic Cash Management for Conversion

Credit Management Preparations for Conversion

Consultants working on the conversion project should verify use of the SAP Credit
Management. If the current source system has FI-AR-CR-based credit management,
or FI-AR Credit management along with FSCM-based Redit Management FIN-FSCM-­
CR, then you have to plan for preparation and migration after SUM. (After the system
conversion process.) You need not do anything before SUM. You only need to identify the
use of the Credit Management in the source system. If FSCM-based credit management
is in practice in the source system, no activity is required. But due to technical reasons,
it is better to run migration steps even if the source system has FSCM based Credit
Management.

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© Ravi Surya Subrahmanyam 2022
R. S. Subrahmanyam, SAP S/4HANA Conversion, https://doi.org/10.1007/978-1-4842-8091-1_7
Chapter 7 Preparation Phase (Preparation Prior to Conversion) – Part 3

 etermining if the Source System Has Credit

D
Management Functionality
Ask the client if they are using transaction FD31/ FD32 (master data) or verify at table
level KNKK and KNKA (see Figures 7-1 and 7-2).

Figure 7-1. Table KNKK

Figure 7-2. Table KNKA

Also verify with the client whether they are using the VKM1 to VKM4 transaction
codes (to release blocked sales orders).

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Identifying the Use of FSCM-CR (FSM-Based

Credit Management)
Verify with the client whether they are using transaction BP/UKM_BP. Or you can verify
this at the table level, by using UKMBP_CMS_SGM (see Figure 7-3).

Figure 7-3. Table UKMBP_CMS_SGM

Or to process sales documents, you can use the UKM_CASE transaction.

If FI-based (SD-based) credit management is in use, you have to FIN-FSCM-CR after
SUM. This movement includes configuration and master data, credit exposure, and credit
decision data.

Prerequisites for Migrating to SAP Credit Management

1. To finish all documents associated with payment, guarantee a
letter of credit to be mentioned to the client.

2. Complete the accounting data migration.

3. Refer to SAP Notes 2227014 and 2270544.

The Influence on User Activity and Business Processes

I provide some of the transactions here, but you should verify these based on SAP Help
or the SAP Guide, or notes about complete changes.
F.28, F.31, F.32, F.33, F.34, FCV1, FCV2, FCV3, FD32, FDK43, VKM1, VKM2, VKM3, VKM4,
VKM5, and so on.

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 redit Management Preparation and Migration Activities

C
After SUM
After SUM, find the menu path shown in Figure 7-4 in the SAP S/4HANA system.

Figure 7-4. The SPRO path

You can find three parts for “Conversion of Accounting to SAP S/4HANA” (see
Figure 7-5).

Figure 7-5. SPRO path: Conversion of accounting to SAP S/4HANA

1. Preparations and migration of customizing

2. Data migration

3. Activities after migration

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In the first part, “Preparations and Migration of Customizing,” you'll find Preparatory
Activities and Migration of Customizing for Credit Management. See Figure 7-6.

Figure 7-6. Preparatory Activities and Migration of Customizing for Credit

Management

Under that, you can find the following:

• Define Settings for Credit Management Migration

• Migrate Credit Management Customizing

• Define Credit Analyst Group as Business Partner Group

• Assigning Credit Representative Group to Credit Analyst Group

• Define Customer Credit Group

• Assign Credit Management Group to Customer Credit Group

• Assign Credit Management Processor to Credit Analyst Group

• Check and Define Credit Management Customizing

• Check Customizing Settings

Once you complete these, the last step is checking the customizing settings. You
should not get any errors, as shown in Figure 7-7.

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Figure 7-7. Check customizing settings

Figure 7-7 shows whether the setup for credit management customizing is accurate
for the migration or not. If you get any warning or errors, that means you are missing
something or something is wrong with the setup of FSCM based customizing.
After the preparation activities are completed, you can migrate to credit
management.
Find an IMG task: Credit Management Migration under Data Migration (see
Figure 7-8).

Figure 7-8. Credit Management Migration

The Credit Management Migration Task includes the following subtasks :

• Migrate Credit Management Master Data

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• Display Status of Migration of Credit Management Master Data

• Migrate Credit Management Exposure

• Display Status of Credit Management Exposure Migration

• Initialize Documented Credit Decisions

• Display Status of Initialization of Documented Credit Decisions

• Reconcile Documented Credit Decisions (see Figure 7-9)

Figure 7-9. Credit Management Migration tasks

Once the first step of the “Migrate Credit Management Master Data” process is done,
you can find screen in the second step. Display the screen shown in Figure 7-10. You
should not get an error.

Figure 7-10. Display the status of credit management

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As per SAP Note 2518127, as part of the credit management master data migration,
the credit accounts are created in FIN-FSCM-CR credit management only for the
account numbers of the customers with the credit limit specification (KNKK-KNKLI). No
credit accounts are created for the customer numbers (KNKK-KUNNR) if they differ from
the credit accounts (KNKK-KNKLI). If you need additional credit accounts in the case of
deviating customer numbers, you must create them after the migration.
If a credit limit check is performed for the customer in FI-AR-CR credit management,
the credit limit of the customer defined in KNKK-KNKLI is used for the check. As a result,
there is a parent-child relationship between the two customers. The migration does
not transfer a relationship of this kind to the Business Partner. If the customer used in
KNKK-KUNNR is a subordinate credit account to the customer defined in KNKK-KNKLI in
FIN-FSCM-CR credit management, you must create a corresponding Business Partner
relationship after the migration. Note that in FIN-FSCM-CR credit management, you
must specify a credit limit for both Business Partners. This is because the credit limit
check is performed for both Business Partners in the case of a credit assignment for the
subordinate Business Partner.

Material Ledger Preparation for Conversion

The data model changes, and simplification makes using the Material Ledger
compulsory. It is part of SAP S/4HANA. Even if the source ECC system does not have ML,
it automatically activates ML during conversion. Whereas Actual Costing is optional and
not mandatory to use.
After conversion, when using the system, if customers add plants, then you need to
activate the Material Ledger (ML) manually using the OMX1 transaction code.

• Currency customizing of Material Ledger is to be done using the OMX2

and OMX3 transaction codes.

• Default Material Ledger Type 0000 is no longer used.

• You can define up to three currencies for ML Type. Defining the

currency and valuation types that are fitting for the Material Ledger is
mandatory.

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Here are the steps to be implemented:

1. Use the OMX2 transaction code for currencies.

2. Use the OMX3 transaction code to assign this ML type to plants or

valuation areas.

Before SUM (Before System Conversion)

Before running SUM, all costing runs should be completed whether or not Actual Costing
CKMLCP/CKMLCPAVR is in use. If they are in use, you must complete them without any
errors. The post-closing step should be positively executed, which means no materials
with an “open” status exist. After conversion, it will no longer be possible to alter the
costing runs created prior to system conversion. Make sure there are no incomplete
costing runs.

Material Ledger Preparation Activities

Once the system is converted (after SUM), you can find the “Conversion of Accounting to
SAP S/4HANA” option in SPRO (see Figure 7-11).

Figure 7-11. The Cockpit in SPRO

You can find the “Preparations and Migration of Customizing for Material Ledger”
option using this menu path:
SPRO>>>>>> Conversion of Accounting to SAP S/4HANA>>>>> Preparations and
Migration of Customizing ➤ Preparations and Migration of Customizing for Material
Ledger >>>>> Migrate Material Ledger Customizing (see Figure 7-12).

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Figure 7-12. The Migrate ML Customizing screen

The Material Ledger is required if the current system has Materials Management -
Inventory Management. It is mandated that you migrate the Material Ledger even if you
are using ML in the source system and using a simple Finance system. It is not needed
when you are upgrading from SAP S/4HANA 1610 to 2021 or higher versions.
This step helps in migrating the customizing settings for the ML. Note that this step
has to be performed only after “Preparations and Migration of Customizing for GL" and
other the previous steps.
Execution in the background is not recommended. Contact SAP if there are any error
messages during this step.
Once this step is completed, the ML customizing settings will be migrated. After
migration, check the assignment of Material Ledger types to plant or valuation areas. If
assignments do not happen, you can assign them manually (see Figure 7-13).

Figure 7-13. The correct assignment

ML type should be the same for all valuation areas within a company code.

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Material Ledger Data Migration

Refer to this menu path:
SPRO >>>>> Conversion of Accounting to SAP S/4HANA >>>>> Data Migration
>>>>> Start and Monitor Data Migration (see Figure 7-14).

Figure 7-14. The Migration Monitor IMG

Start and Monitor Data Migration

After the preparation activities, you start the Data Migration Monitor. This monitor
covers “Migration of Material Ledger data” as well.

Step M10 of the Migration Monitor

Step M10 is called Migrate Material Ledger Master Data. Since it is mandatory in SAP
S/4HANA, this step must be performed to activate ML for all valuation areas. This
creates ML master data tables: CKMLHD, CKMLPR, CKMLPP, and CKMLCR in all ML currencies
for periods more recent than the last period of the previous year. All aggregate tables—
such as inventory aggregate values stored in tables MBEW, EBEW, QBEW, OBEW, and their
historic data tables MBEWH EBEWH, QBEWH, and OBEWH—are migrated into ACDOCA, the new
universal journal entry table.
This migration does not activate Actual Costing.

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Step M11 of the Migration Monitor

Step M11 is called Migrate Material Ledger Order History.
If ML was not in use in any of the valuation areas earlier to such conversion, this
activity step converts all current purchase order history data stored in the EKBE, EKBEH,
EKBZ, and EKBZH tables and the production order history data stored in the MLAUFCR and
MLAUFCRH tables into the ML currencies.

Step M21 of the Migration Monitor

Step M21 is called Check ML Production Order and Purchase Order History.
The task is to verify whether all production order history and purchase order history
table data is converted into the ML currencies.
Under Preparations and Migration of Customizing, verify SAP Note 2345739.
Once Material Ledger Data Migration is completed by the monitor, you can see that
information, as shown in Figure 7-15.

Figure 7-15. Successful Material Ledger data migration from Steps M10 to M21

A common error during migration is with the OMX1 transaction. You will not be able
to see the valuation area with Material Ledger Type 9000. The reason is that the order of
customizing steps for assigning a ML type to the valuation area has been changed as of
S/4HANA 1610 (see Figure 7-16).

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Figure 7-16. The order of customizing steps for assigning a ML type to the
valuation area has been changed as of S/4HANA 1610

The sequence is as follows:

1. Define Material Ledger type in transaction OMX2 .There is no

default Material Ledger Type 0000 anymore. Customizing in
Financial applications allows you to assign more than three
currency and valuation types as being relevant in your company
code. As the Material Ledger still supports only three currency and
valuation types, you can no longer use an ML Type that references
currency settings defined in FI or CO (the “Currency Types from
FI” and “Currency Types from CO” flags). Instead, you have to
explicitly define the currency and valuation types that are relevant
to the Material Ledger.

2. Assign corresponding Material Ledger type to the valuation area

in OMX3.

3. Activate Material Ledger for the corresponding valuation area

in OMX1.

For periods before the migration, you must use only the CKM3OLD transaction. For
periods after the migration, it may have new data as well as migrated, old data. The
migrated data is summed up on category level (receipts, consumption and so on). KM3
shows an overview for migrated data as well as new data. For individual lines of old
data, use transaction CKM3OLD. The warning for "Unmigrated Data" should be shown in
CKM3 if there is old data in table MLCD in the period and ML Actual Costing is active and
productive. In the CKM3OLD transaction before migration, you can see single-level and
multi-level price differences from table MLCD (as explained previously). For the data that
was migrated from ECC to S/4HANA, check the details provided in SAP Note 2426371.

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Actual Costing Preparation for Conversion

Before running SUM, and during the preparation phase, you have to verify that you can
validate if ML (Material Ledger) and Actual Costing are active in the source system
Choose SPRO >>>>> Controlling >>>>> Product Cost Controlling >>>>> Actual
Costing/Material Ledger >>>>> Actual Costing (see Figure 7-17).

Figure 7-17. Actual Costing SPRO screen

If you see the checkbox, that means that Actual Costing is active for that plant.
You can see this at the table level also. Table T001W, field MGVUPD.
In SAP S/4HANA, the data model for ML has been changed and the processes are
simplified. Before starting the ML conversion, install notes are specified in SAP Note
2345739.
Material Ledger is mandatory but Actual Costing is not. If the source system
has Actual Costing, the data will be migrated to new data structures to aid fast and
resourceful cost calculations.
You must have a run cost cockpit before the system reaches downtime and you
should not have any errors in the CKMLCP log.
As the posting logic Actual Costing has changed, you need to do some adjustments
in the account determination:

1. Transaction OBYC

2. Transaction PRL

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3. Transaction GBB/Account Modification AUI

4. Transactions PRV and KDV

Refer to SAP Note 2345739 for all the prerequisite SAP Notes to be installed for Actual
Costing as a part of preparation activity. Refer to SAP Note 2352383 as well.
Refer to SAP Note 2387172, in addition to Actual Costing, if the source system has the
Actual Cost Component Split (the OMXF transaction) or you have activated WIP at Actual
Costs (the OMXW transaction).

Trade Finance Preparation for Conversion

Consultants working on SAP S/4HANA conversion activities should verify if the source
system has the Foreign Trade functionality in the areas SD-FT or MM-FT. This feature
is unaccommodated in SAP S/4HANA, post-conversion. If a system has related custom
code, it does not work after system conversion. The Foreign Trade (SD-FT) functionality
will not be available; customers can use SAP S/4HANA for international trade once they
move to SAP S/4HANA.
If customers are interested in using Trade Finance Transactions like Letter of
Credit in SAP S/4HANA, they have to migrate from SD-FT to TRM-TF. This is integrated
with Sales.
Option 1: SAP S/4HANA International Trade
Option 2: SAP GTS
To perform these activities, refer to the following SAP Notes along with the SAP
S/4HANA Conversion Guide and other SAP Help documents
• 2223144

• 2376556

• 2869019

• 2267310

Pre-Transition Checks
Legal Control Service related: Refer to the SAP Note 2213485
Letter of Credit Related: SAP Note 2213485.
Preference Management Related: SAP Note 2213485

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All the preparation activities must be performed before SUM. Once SUM is completed
and in SAP S/4HANA, you have preparation activities related to Foreign Trade. These are
the activities after SUM in SAP S/4HANA system, not in the ECC system.
Choose SPRO >>>>> Conversion of Accounting to SAP S/4HANA >>>>> Preparations
and Migration of Customizing >>>>> Preparations for Migration of Financial Documents
to Trade Finance (see Figure 7-18).

Figure 7-18. The IMG screen for Preparations for Migration of Financial
Documents to Trade Finance

Preparing for Migration of Financial Documents to Trade Finance

Here are the preparation steps:

1. Set the migration needs

2. Map SD-FT Financial Document Types with TRM 850

Product Types

3. Map SD-FT Presented Document with TRM TF Document Types

4. Set bank function for advising bank

5. Map SD-FT Banks with Business Partners

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6. Map company codes in SD-FT and in trade finance

7. Check and define customizing for integration with sales

8. Check customizing settings

Once this configuration is completed, check the customizing settings. You should not
see any errors. See the example in Figure 7-19.

Figure 7-19. Successful execution of the “ Check Customizing Settings” step

Choose Data Migration >>>> Migration of Financial Documents to Trade Finance

(see Figure 7-20).

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Figure 7-20. The “ Migration of Financial Documents to Trade Finance” path

Here are the migration steps:

1. Migrate master data of financial documents

2. Display migration status of master data of financial documents

3. Assign sales orders to trade finance transactions

4. Display status of assignments of sales orders to trade finance

5. Initialize risk check decisions

6. Display status of initialization of risk check decisions

7. Reconcile risk check decisions

Business Case 2
If Foreign Trade migration is not needed, then you have to set status at follows:
SPRO >>>> Conversion of Accounting to SAP S/4HANA >>>> Preparations and
Migration of Customizing >>>> Preparations for Migration of Financial Documents to
Trade Finance >>>> Set Migration Need (see Figure 7-21).

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Figure 7-21. Migration not needed

Revenue Recognition Preparation for Conversion

SD-based revenue recognition will not be available after moving to SAP S/4HANA. The
new functionality is called “Revenue Accounting and Reporting”. This should be used
after converting the system to SAP S/4HANA. This provisions the revenue accounting
standards as specified in IFRS15 and by local GAAPs.

B
 usiness Process
As SD-based revenue recognition will not be available after converting the system, the
older functionality will work.

Which Transaction Codes Are Affected?

The following transaction codes are affected: OVACT, OVEP, VF42, VF43, VF44, VF45, VF46,
VF47, and VF48. Refer to the SAP Notes/SAP Help for more information.
The Simplification Item Check Report shows the items related to revenue
recognition.
To migrate SD Sales orders and subsequent documents to the Revenue Accounting
solution, the operational load process has been introduced. Refer to SAP Note 2267342
to understand the need for a migration and a pre-check if SD Revenue Recognition data
exists. See the following SI Check Item (see Figures 7-22 and 7-23).

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Figure 7-22. SI check report

Figure 7-23. SI Check Report: Revenue recognition Item details

How Do You Resolve This Error?

The resolution as per SAP Note 2777486 is the following error message:

Migration from SD Revenue Recognition to Revenue Accounting required.

No SD Revenue Recognition Lines (VBREVE) with REVFIX = M have been found.
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Because the VBREVE-REVFIX (Fixed Revenue Line Indicator) flag is set to “M” during
the migration process with FARRIC_OL, it means that no data has been migrated.
Refer to SAP Note 2777486. Before conversion, you must migrate those sales orders
and contracts that are not entirely delivered or invoiced or both, processed by SD
Revenue Recognition to SAP Revenue Accounting and Reporting. It should also include
deferred revenue yet to be realized for which you suppose subsequent actions, for
example growth in quantity, create credit memo, or withdraw invoice.
First you must evaluate, before you start conversion to SAP S/4HANA, whether a
migration to SAP Revenue Accounting and Reporting is conceivable for your business.
Refer to SAP Notes 2227824 and 2267342.
The complete migration guide for SD Revenue Recognition processes has been
released for customers in SAP Note 2733866.

 reparation for Classic Cash Management

P
for Conversion
This section speaks about the preparation activities needed for cash management prior
to SUM during the SAP system conversion process.
Once customers move to SAP S/4HANA, the best cash management solution is SAP
S/4HANA Finance for cash management. The SAP ECC classic Cash Management and
Liquidity Planner are not available after moving to SAP S/4HANA.

Cash and Liquidity Management to SAP S/4HANA

Consultants working on the conversion project need to verify if the customer’s ECC
system has classic Cash and Liquidity Management functionality in use. If the customer
has been using classic cash management, they have to convert their system first. Then
they have to implement SAP S/4HANA Finance for cash management as a separate task.
To determine if Classic Cash management is in use, access transaction OBY6. The
checkbox for “Check Cash Management” will indicate whether Cash and Liquidity
Management are active per company code. Refer to SAP Note 2149337. You can also find
data in the classic cash management tables in SAP ECC (see Figure 7-24).

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Figure 7-24. Check cash management

Go to transaction code OBY6. If the Activate CM checkbox is checked, Cash

Management is active for the company code.
Also verify cash management usage in tables. Sometimes during implementation
consultants might check this knowingly or unknowingly, so verify usage of this
functionality in tables shown here:

• FDM1 and FDM2

• FDS1 and FDS2

• FDSB and FDSB2

• FDD1 and FDES

• FDESDIST and FDFIEP

• FDI1, FDRE, FDLF, and FDLF2

If there are entries in those tables, speak with your customer and know the usage of
this functionality. Also verify if FLQSUM and FLQSUM_FC have entries. If you see entries in
those tables, Liquidity Planner has been used.
The classic Cash and Liquidity Mgt. FIN-FSCM-CM and FIN-FSCM-LP are not
part of SAP S/4HANA. You have to use S/4HANA Finance for cash management based
on FSCM. If classic cash management is in use, you can migrate master data and
transactional data to SAP S/4HANA. But refer to the SAP Notes and guide for more
information.

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After Accounting Conversion

If you are using classic Cash and Liquidity Management, you can migrate relevant
master data and transactional data to SAP S/4HANA. You can do this after completion of
migration of accounting. Then change and assign necessary roles to the user IDs.
You have assigned roles to users. Activate the business function FIN_FSCM_CLM. Then
configure full scope for Cash Management Scope. Refer to SAP Note 2769531 and check
for prechecks.
Then, you must complete all the necessary configurations for cash management in
SAP S/4HANA.

Conclusions
To optimize the move to SAP S/4HANA, it is ideal to demonstrate the benefits of SAP
Credit Management (Component: FIN-FSCM-CR). For example, demonstrating the
advanced and automated credit management processes, HANA-based reporting and
analytics, SAP Fiori apps for credit management, and so on, will help SAP customers to
plan for the future and enhance their credit-management functionalities.
Similarly, identifying uses of SD Revenue Recognition in advance will help
customers understand the functionalities of Revenue Accounting and Reporting. It
will help show them the need for additional time to spend on the Revenue Accounting
migration process before conversion.
One of the most important tasks in conversion is Foreign Trade. Consultants
working on the project should verify if they can set the status "Not Needed for Migration"
if foreign trade is not in use. If that is relevant, they must plan for migration of FI
transactions to trade finance. It is important to check whether foreign trade processes
are in use in third-party foreign trade systems.
The next chapter is an overview of the SUM tool. It covers the Conversion Cockpit
preparation activities, the Data Migration Monitor, and the activities after the conversion
activities.

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Migration of Customizing)
After the preparation phase, consultants start working with the SUM (Software Update
Manager) tool. This tool is used to convert the system to SAP S/4HANA. Consultants
might have executed the Maintenance Planner before the SUM. The SUM tool requires the
stack.xml file that’s generated by the Maintenance Planner as an input.

T he Role of the Software Update Manager

(SUM) Tool
SUM does the following:

• Database migration
• Installation of the SAP S/4HANA software

• Logistics data migration (finance data will be migrated by the

Conversion Monitor during execution of the Conversion Cockpit,
not by SUM)

The SUM has six steps—Extraction, Configuration, Checks, Preprocessing, Execution,

and Postprocessing (see Figure 8-1).

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R. S. Subrahmanyam, SAP S/4HANA Conversion, https://doi.org/10.1007/978-1-4842-8091-1_8
Chapter 8 Realization Phase (Preparation and Migration of Customizing)

Figure 8-1. SUM steps (on the top)

Note that from the Execution step, you can consider it as downtime until you close
the Conversion Cockpit.
Usually, consultants who run SUM will let other consultants and customers know
when they have to release all the transport requests to have a clean development cut.
They also inform customers on the Development lock phase. The selection Lock is
likely if upgrade media (upgrade DVDs) happens. Once they lock, no developments can
be done. So you cannot do SE80 or Note implementations, no importing requests, or
releasing requests, and so on.

When Is the SPDD Activity Completed?

At the beginning of the SUM procedure, the ABAP consultants will take care of the SPDD
modification adjustment.

 ow Do Users Know When SUM Reaches Downtime

H
and What Activities Will Be Done by the Administrator?
When SUM reaches downtime, the consultant who runs SUM will notify the business users
and other consultants working on the project, lock all users, stop batch jobs, stop all
interfaces to avoid dumps, and so on. They also do some other activities and ramp down
activities as specified in the SUM and conversion guides. They also take a backup at this
stage. That way, they will be able to go back to this stage if they get any errors. You must
educate users not to log on during this downtime phase.

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When Will the SPAU Activities Be Done?

The SPAU modification adjustment will be done at the end of the SUM.
After post-processing, you can consider that SUM ends after the end of the technical
downtime. But in conversion projects, after SUM, you cannot release the system for user
activity, as Finance Consultants have to prepare the system for conversion and do the
data migration. Post-migration activities can be done during uptime. But the ideal way is
for users to not work. So, after post processing, business downtime is not finished. Users
should remain locked until data migration is completed.
After post processing, we will complete SUM and start preparations on SAP S/4HANA
system for executing the Conversion Cockpit (see Figure 8-2).

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Figure 8-2. The end of SUM

As soon as SUM completes, users cannot post transactions. The Conversion Cockpit
preparation and data migration must first be completed. If not, you’ll get an error similar
to Figure 8-3.

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Figure 8-3. Error after SUM and before actual data conversion

The next step after SUM is the conversion of accounting to SAP S/4HANA.

What Is the Menu Path for the Conversion Cockpit?

Here is the menu path for SAP S/4HANA Conversion Cockpit: SPRO >>> Conversion of
Accounting to SAP S/4HANA (see Figure 8-4).

Figure 8-4. IMG path for conversion of accounting to SAP S/4HANA

Converting Accounting to SAP S/4HANA

After the technical conversion step (after SUM), the Cockpit must be configured and
executed. There are three broad steps for converting Accounting to SAP S/4HANA.

1. Preparations and migration of customizing

2. Data migration

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3. Activities after migration

The steps in the Cockpit are sequential. You should not execute them randomly (see
Figure 8-5).

Figure 8-5. SPRO screen of the Conversion Cockpit

Let’s first look at the Preparations and Migration of Customizing. These are the
preparation activities for the Cockpit. These tasks must be completed based on the
source system. For example, if the source system does not have an Accrual Engine
or manual accruals, you can skip this. Similarly, trade finance is based on the source
system, so you need to complete its preparation activities.
Before you start preparation, verify in the converted system if there is any data in
ACDOCA. As soon as SUM finishes, the ACDOCA table must not show any entries. It should be
empty (see Figure 8-6).

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Figure 8-6. The ACDOCA table entries after SUM and before executing the
Conversion Cockpit

Special Authorizations to Execute the Cockpit

The most important is that authorizations to be added to the user ID to execute Data
Migration and to monitor and migrate the house banks.
Here are the objects that are to be added to the user ID to the concerned consultant,
so they can execute steps related to the Cockpit.

1. Authorization F_CLM_BAM, activity 01 and 02

2. SAP_FI_BL_BANK_MASTER_DATA or SAP_BR_AP_ACCOUNTANT

3. Authorization object CO-CCA: Cost Element Master (K_CSKB)

4. Authorization for activity 16 (Execute) of the FINS_MIG

authorization object as well as developer authorization
(authorization object S_DEVELOP)

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5. To be able to perform the migration, make sure you are

assigned the authorization In particular, on role SAP_SFIN_
MIGRATION. FINS_MIG authorization object

Preparations and Migration of Customizing

Preparations and migration of customizing for GL (see Figure 8-7):

1. Preparations and Migration of Customizing for Accrual Engine

2. Preparations and Migration of Customizing for AA

3. Preparations and Migration of Customizing for CO

4. Preparations and Migration of Customizing for Material Ledger

5. Preparations for Migration of House Bank Accounts

6. Preparations for Migration of Financial Documents to

Trade Finance

7. Preparatory Activities and Migration of Customizing for Credit

Management

Figure 8-7. Preparation steps and activities from the Conversion Cockpit

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D
 ata Migration
During the data migration step, you move the finance data to SAP S/4HANA Finance.
The table ACDOCA (Universal Journal Entry Line Items) is filled with data from General
Ledger, Controlling, Material Ledger, and Asset Accounting. This is based on the data
volume in the source system’s number of records. If you have a large number of records,
you can consider partitioning the ACDOCA table in order to prevent negative effects. As
per the SAP Help document, if you expect significantly fewer than 1 billion records,
including future growth, you don’t have to consider partitioning.
If you expect the number of records to reach or exceed 1 billion records, follow the
instructions of SAP Note 2289491, “Best Practices for Partitioning of Finance Tables.”

1. Partitioning of Universal Journal Entry Line Items Table

2. Regenerate CDS Views and Field Mapping

3. Analyze Transactional Data

4. Display Status - Analysis of Transactions

5. Documentation of Data Migration

6. Start and Monitor Data Migration

7. Transport Accepted Error Messages

8. Migration of Financial Documents to Trade Finance

9. Credit Management Migration

10. Complete Migration

11. Complete Migration of Financial Documents to Trade Finance

(see Figure 8-8)

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Figure 8-8. Data Migration steps

The “Start and Monitor Data Migration” step has the following internal steps:

1. Migration of Cost Elements

2. Technical Check of Transactional Data

3. Material Ledger Migration

4. Enrichment of Data

5. Migration of Line Items

6. Migration of Balances
7. Migration of General Ledger Allocations to Journal Entry Tables

8. Calculation of Depreciation and Totals Values

9. Migration of House Bank Accounts

Note All these steps will be executed sequentially by the monitor. If there are any
issues, they are displayed in the log. Consultants should clear error logs and can
repeat the steps again.

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Activities After Migration

1. Transfer Application Indexes

2. Display Status of Transfer of Application Indexes

3. In FI Documents, fill the Offsetting Account

4. Display Status of Filling the Offsetting Account in FI Documents

5. Enrichment of Balance Carryforward

6. Manual Activities for Trade Finance

7. Manual Activities for Credit Management

8. Migration of Accrual Engine Data

T asks Before Starting Preparation Activities

for the Cockpit
Before you start the conversion activities, always read the full text of the conversion
guide for SAP S/4HANA. Also refer to SAP Note 2332030.
It is most important to run the steps in order, not randomly. Don’t skip any of the
errors and be sure to understand the warning messages fully. You can execute some IMG
buttons only once. Don’t run them twice. Don’t set the migration to completion until
business validates the reports and confirms you. If you set the status to completed, you
cannot reset the status. Users can create postings after you have set the migration status
to completion.
Before starting “Conversion of Accounting to SAP S/4HANA” in SPRO, verify the
active business functions. See if the SAP S/4HANA always-on business functions are
activated or not. Refer to the following to see this: SPRO ➤ Activate Business Functions
(see Figures 8-9 and 8-10).

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Figure 8-9. IMG for Activating Business Functions

Figure 8-10. All always-on business functions are in activation mode correctly

Preparations and Migration of Customizing

The menu path is SPRO ➤ Preparations and Migration of Customizing ➤ Check
Customizing Settings Prior to Migration.
In this step, you need to check whether the customizing settings are correct for
migration to SAP S/4HANA Finance. You will do this check to determine whether
the ledger, company code, and controlling area settings meet all the prerequisites for
conversion. Refer to SAP Note 2129306 (see Figure 8-11).

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Figure 8-11. Successful execution of the Check Customizing Settings Prior to

Migration step

The next step before starting preparation is to set number of jobs for activities
in mass data framework. The menu path is SPRO ➤ Preparations and Migration of
Customizing ➤ Set Number of Jobs for Activities in Mass Data Framework.
This divides the data into packages and starts parallel jobs to process the data in
parallel. in this step, you define the number of jobs for each activity, into which the
system divides the dataset to be migrated. Refer to SAP Note 2351294.
Figure 8-12 shows ten jobs for each activity. You may increase or decrease the
number of jobs.

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Figure 8-12. Set the number of jobs and activities in the Mass Data framework

Preparations and Migration of Customizing for GL

After the previous two steps, you'll start the Preparations and Migration of Customizing
for General Ledger. The menu path is SPRO >>> Conversion of Accounting to SAP
S/4HANA >>> Preparations and Migration of Customizing for General Ledger.
This process has the following substeps:

1. Check and adopt fiscal year variants

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2. Define currency settings for migration

3. Migrate General Ledger customizing

4. Define settings for ledgers and currency types

5. Additional settings

6. Review the assignment of ledger and company code to Acc.

principles

7. Define the ledger for CO version

8. Define document types for postings in CO

9. Define document type mapping for CO business transactions

10. Check and define default values for postings in CO

11. Define offsetting account determination type

12. Define the Source Ledger for migration of balances

13. Check and define settings for substitution for cost-of-sales

accounting

14. Check and define settings of the Controlling Area

15. Execute consistency check of General Ledger settings (see

Figure 8-13)

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Figure 8-13. The substeps for preparing the Migration of GL

The following is a brief explanation of the previous steps.

Check and Adopt Fiscal Year Variants

Here, you need to compare the fiscal year variants between controlling areas and their
assigned company codes. When executing this IMG activity, the system compares fiscal
year variants between Controlling and Financial Accounting.
If the system does not meet the conversion prerequisites, it sends a proposal for the
configuration change upon executing this IMG task.
If the source system has multiple controlling areas, it must be run for all controlling
areas used in production (see Figures 8-14 and 8-15).

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Figure 8-14. Program input screen

Figure 8-15. Output and SAP recommendation

Define Currency Settings for Migration

Here, you configure currency settings for migration. This IMG task helps in creating
currency settings for migration to ensure that the universal journal contains amounts for
the needed currency types. If you don’t provide the exchange rate type here, the affected
items will be migrated with an amount of zero. First define the exchange rate type (see
Figure 8-16).

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Figure 8-16. An example of configuration

The calculation depends on the posting date and the exchange rate types you specify
here. In my example, I configured the sub-screen “Calculate Amounts for Prev. CO
Specify. Currencies,” as shown in Figure 8-17.

Figure 8-17. Calculate Amounts for Prev. CO Specify. Currencies

Migrate General Ledger Customizing

Here, you migrate the General Ledger customizing to the new S/4HANA configuration.
The following settings are migrated:

• Assignment of company codes to ledgers

• Currency settings of the ledgers

• Fiscal year variant of the ledgers

• Open period variant of the ledgers

• Settings for real-time integration of CO-FI (see Figures 8-18 and 8-19)

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Figure 8-18. Customizing request step. This can be moved to QAS and PRD

Figure 8-19. The output of “migrate General Ledger Customizing” when there is
only one ledger

If you have more ledgers in the source system, the Migration screen appears, as
shown in Figure 8-20.

Figure 8-20. If the source system has multiple ledgers, you'll see this after executing
the “Migrate General Ledger Customizing” step
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Note that if the source system has multiple ledgers, they migrate all at once. The
system creates customizing requests. You can move the requests to QAS and PRD
without requiring re-execution in the QAS and PRD systems.

Define Settings for Ledgers and Currency Types

The currency types and currency conversion settings that you use in Accounting can be
edited. You can also define ledger settings and assign accounting principles for ledgers
to the company codes.
This is a mandatory configuration and company codes should have been configured
with currency, fiscal year variant, and open period variant (see Figure 8-21).

Figure 8-21. Define the settings for ledgers and currency types

During this step, if there is profit center activation needed, the system sends
messages like the ones shown in Figure 8-22.

Figure 8-22. Requirements of profit center activation

After the system conversion is completed, you'll need to configure basic settings for
profit center accounting.

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A
 dditional Settings
The configuration steps shown in Figure 8-23 are self-explanatory. You should not need
more explanation about this.

Figure 8-23. Additional configuration needed

 eview the Assignment of Ledger and Company Code to

R
Acc.-Principles
This IMG task provides an overview of which accounting principles are assigned to
which combinations of ledger and company code. You can delete unwanted assignments
of ledger and company code settings. Refer to the SAP Help before you complete this
configuration (see Figure 8-24).

Figure 8-24. Review the assignment of ledger and company code to

Acc.-Principles

Define Ledger for CO Version

Here, you assign G/L ledgers to control (CO) versions. CO version 0 must be assigned to
the Leading Ledger. You can’t assign a CO version to an extension ledger.

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The Leading Ledger 0L must be always assigned to CO version 0. The Leading Ledger
is representative of Controlling (see Figure 8-25).

Figure 8-25. Ledger for CO version

Define Document Types for Postings in CO

Here, you have to create new document types for postings in the Controlling. This task
has to be done using transaction OBA7. In SAP S/4HANA, we have a separate document
type for controlling postings with the indicator G/L account set. In SAP S/4HANA,
all controlling business transactions also use document type CO (see Figures 8-26
and 8-27).

Figure 8-26. Newly created document types for CO and CC

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Figure 8-27. CC document type properties

Normal postings and cross-company postings will have separate document types per
business transaction. So create the CC document type for cross-postings.

Defining the CO Document Type

See Figures 8-28 and 8-29.

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Figure 8-28. Document types overview

Figure 8-29. Creation of CO document type and its properties to be configured

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Define Document Type Mapping for CO Business Transactions

Here, you define a mapping variant that maps CO business transactions to document
types. This is to be assigned to all CO business transactions that do actual postings.
The mapping variant 0000000100 is provided as an example. This variant maps all
CO business transactions to the document type CO (see Figures 8-30 and 8-31).

Figure 8-30. CO Mapping variant

Figure 8-31. CO document types assigned to the mapping variant

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Check and Define Default Values for Postings in CO

Here, you define the default values for use in CO business transactions whose user
interfaces do not allow you to enter a document type or a ledger group for posting
purposes (see Figure 8-32).

Figure 8-32. Check and define default values for postings in CO

Define Offsetting Account Determination Type

SAP recommends choosing the highest amount option, as shown in Figure 8-33.

Figure 8-33. Configuration needed for “ Define Offsetting Account

Determination Type”

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Define Source Ledger for Migration of Balances

In this activity you define the source and target ledgers. In the following example,
the current ECC system has a new GL. So, there is a source 0L and a target 0L (see
Figure 8-34).

Figure 8-34. New GL as source

If the current system has a classic GL, the source ledger is 00 and 0L is used as the
target ledger (see Figure 8-35).

Figure 8-35. New classic GL as source

If the customer used the first classic ledger and then moved to a new GL, this entry
should be shown as follows (see Figure 8-36):
Entry 1:
Target Ledger: 0L
Company Code: 1000
From Year: 2000
Source Ledger: 00
Entry 2:
Target Ledger: 0L

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Company Code:1000
From Year: 2008
Source Ledger: 0L

Figure 8-36. Source ledger configuration (00 for Class GL entry/0L for New
GL entry)

 heck and Define Settings for Substitution

C
for Cost-­of-Sales Accounting
This task is relevant when you are using functional areas for cost-of-sales accounting
(see Figure 8-37).

Figure 8-37. Check and define settings for substitution for cost-of-sales accounting

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Check and Define Settings of Controlling Area

This task is to check the settings of controlling areas, activate components/control
indicators, and indicate the CoCd validation at least for the current fiscal year and all
future fiscal years.
You cannot make postings to account assignment objects such as cost centers or
orders in SAP S/4HANA from company codes other than the company code defined in
the master data of the account assignment object (see Figure 8-38).

Figure 8-38. Controlling area configuration

Execute Consistency Check of GL Settings

This check should not have any error messages, as shown in Figure 8-39.

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Figure 8-39. Execute consistency check of General Ledger settings

After all of these steps are complete, the first preparation activity is done. The next
preparation activity is “Preparations and Migration of Customizing - Accrual Engine.”
You must now verify activation of the Business Functions for S/4HANA Finance (see
Figure 8-40).

Figure 8-40. FIN_GL_CI_1 to 3 Business Functions activation verification

Preparation and Migration of Customizing: Accrual Engine

Here are the substeps:

• Preparations and Migration of Customizing - Accrual Engine

• Migration Precheck for Customizing

• Migrate Customizing for Accrual Engine

• Manual Migration Steps for Account Determination

• Manual Migration Steps for Validation

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• Transform Customer-Developed Accrual Methods into ABAP Classes

• Replace BAdI Implementations Used to Modify Accrual Postings

• Preparation of Migration of Transactional Data

These steps are necessary if the current system has an Accrual Engine. You must
migrate customizing settings for the Accrual Engine.

Migration Precheck for Customizing

A new Accrual Engine has been released with SAP S/4HANA 1809. It integrates with the
General Ledger and supports all currencies in the General Ledger.
As of now, the old Accrual Engine still exists and is still being used by applications
such as the following:

• Accruals for Rights Management

• Revenue Recognition for License Sales

• Accruals for License Acquisitions

• Accruals for Real Estates

After a conversion or upgrade to release S/4HANA 1809 or higher, you need to

migrate old data to the new tables of the S/4HANA Accrual Engine. Refer to SAP Note
2795791. Verify if this is relevant for your system
The migration is necessary after an upgrade from SAP S/4HANA version less than
1809 to a version higher than or equal to 1809, or when you are converting the system
from ECC or Simple Finance.
The transactional data of the Accrual Engine consists of Accrual Objects and Accrual
Postings.
The S/4HANA Accrual Engine has changed the data model of customizing and
transactional data. Several of the old tables have been replaced with new tables. Both
types of tables, customizing and transactional data, need to be migrated after the
customer has upgraded to S/4HANA 1809 or higher.

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Consultants can perform the migration of Accrual Engine customizing with the
SPRO task to migrate customizing for the Accrual Engine. The transaction code is ACE_
MIGRATE_CUST.
The menu path is as follows: SPRO >>> Conversion of Accounting to SAP S/4HANA
>>> Preparations and Migration of Customizing >>> Preparations and Migration of
Customizing for Accrual Engine.
Or you can use the ACEMIGIMG transaction (see Figure 8-41).

Figure 8-41. IMG transaction ACEMIGIMG

This transaction has documentation, which you can access by pressing the
F1 button.
Step 1: Migration of Accrual Engine Customizing. The menu path is Conversion
of Accounting to SAP S/4HANA >>> Preparations and Migration of Customizing >>>
Preparations and Migration of Customizing for Accrual Engine.
Step 2: The menu path is Migration of Accrual Engine Transactional Data (= accrual
objects and accrual postings): Conversion of Accounting to SAP S/4HANA >>> Activities
after Migration >>> Migration of Accrual Engine Data. This migration can only be
performed after the migration of all other postings in the system (see Figure 8-42).

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Figure 8-42. The menu path of Migration of ACE

 igration of Customizing and Migration

M
of Transactional Data
The content of the customizing tables is migrated in the customizing system. Afterward,
the result of this migration is transported into the productive system (see Figure 8-43).

Figure 8-43. Migration precheck

Migrate customizing for the Accrual Engine (see Figure 8-44).

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Figure 8-44. Migration of customizing

Using the ACEMIGIMG transaction, you can display the content of the account
determination of the old Accrual Engine in the Display Pre-Migration Content folder
(see Figure 8-45).

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Figure 8-45. Display pre-migration content

Manual Migration Steps for Account Determination

This step restores the account determination settings so that you can use the manual
accruals functions again after migration.
You can display your pre-migration account determination settings as a reference.
Use these settings as a basis for your new account determination for manual accruals.
If you used the simple account determination in the old Accrual Engine, you need
to enter two rows in the account determination of the SAP S/4HANA Accrual Engine for
each row of the account determination of the old Accrual Engine.
In the simple account determination of the old Accrual Engine, each row contained
a start account and a target account, while the account determination of the SAP
S/4HANA Accrual Engine contains only one account in each row.

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 an You Use the System Before the Migration of Accrual

C
Engine Data?
Yes, you can use the system and perform all kinds of postings without performing this
Accrual Engine migration. The applications related to Accrual Engine will not work until
the Accrual Engine is migrated. At a different point in time, the Accrual Engine can be
migrated. In my earlier projects, I planned this process on the weekend after the system
went live.

Does the Authorization Change?

The S/4HANA Accrual Engine uses new authorization objects:

• F_ACES_DST contains the ledger instead of accounting principle.

• F_ACES_PST contains the application component and activity.

It does not contain the company code, because during posting

the additional authorization object F_FAGL_LDR is checked, which
contains the company code and ledger.

To restrict the posting authorization to a single application,

components of the Accrual Engine object F_ACES_PST are used.

• To perform the adjustment, review and/or approval of periodic

accrual amounts, use the auth object F_ACES_PER.

Preparation and Migration of Customizing for AA

After performing the “Preparation and Migration of Customizing - Accrual Engine” step,
you are ready to move to the “Preparation and Migration of Customizing for AA” step.
The menu path is as follows SPRO >>> Conversion of Accounting to SAP S/4HANA
>>> Preparations and Migration of Customizing >>> Preparations and Migration of
Customizing for Asset Accounting (see Figure 8-46).

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Figure 8-46. Preparation and Migration of Customizing for Asset Accounting

Asset Accounting migration can broadly be classified into two activities:

• Migration from Classic to New Asset Accounting

• Adjustments in New Asset Accounting

Migration from Classic to New Asset Accounting can be classified further:

1. Prepare New Asset Accounting

2. Migration for New Asset Accounting - Migrate charts of

depreciation and perform additional manual activities

3. Check prerequisites for activating the new AA

4. Activate Asset Accounting (New)

Adjustments in New Asset Accounting can be classified further:

1. Adjust parameters in chart of depreciation

2. Create the technical clearing account

3. Other basic configuration needed for using New Asset Accounting

on SAP S/4HANA

If the source system is on a Classic Asset Accounting or a New Asset Accounting on

SAP ECC, you have to migrate to New Asset Accounting on SAP S/4HANA. To do this,
you have to complete certain activities. This is a mandatory activity.
Here is an overview of the preparation steps in the source ECC system before SUM:

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1. Complete period-end closing for Asset Accounting for all the

previous years and open the current fiscal year.

2. Complete reconciliation of the asset subsidiary ledger with the

General Ledger.

3. Adjust chart of depreciation as per currencies and accounting

principles (ledgers).

4. Run the RASFIN_MIGR_PRECHECK program. (This program is

included in the SI Checks.)

Is Migration of Chart of Depreciation Needed for All Systems?

This is based on the source system’s starting situations. Consider these example
scenarios:

• New General Ledger Accounting, classic Asset Accounting, accounts

approach – Migration needed

• Classic General Ledger Accounting, classic Asset Accounting,

accounts approach – Migration needed

• New General Ledger Accounting, classic Asset Accounting, ledger

approach – Migration needed

• New Asset Accounting on EHP7 or Higher – Migration needed New

Asset Accounting on EHP7 on HANA – Migration needed

• New Asset Accounting on Simple Finance 1503 or 1605 – No need of

chart of depreciation migration

• New Asset Accounting on 1610 or Higher and customer doing

upgrade – No migration needed.

Migrating a Chart of Depreciation

Once you verify all the preparation activities for migrating a chart of depreciation, you
will follow the IMG path to migrate.
The menu path is SPRO >>> Conversion of Accounting to SAP S/4HANA >>>
Preparations and Migration of Customizing for Asset Accounting >>> Migration from
Classic to New Asset Accounting >>> Migrate Charts of Depreciation (see Figure 8-47).

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Figure 8-47. Migration for New AA

Execute these steps:

1. Perform the migration in a test run.

2. Check the applicable log to correct any errors.

3. Execute the migration in the update run.

You can display the migration log of all migrations performed in a test run or an
update run from the Customizing for Asset Accounting, under the Display Migration
Log. (You can see the IMG task in Figure 8-47.)
You might wonder if there are errors while migrating charts of depreciation, whether
you can do the changes to the chart of deprecation manually. Indeed you can. Verify the
following and assign ledgers and other depreciation parameters properly

1. Assign accounting principles and ledger groups to depreciation

areas: SPRO >>> Asset Accounting >>> General Valuation >>>
Depreciation Areas >>> Define Depreciation Areas

2. Settings for posting to the GL: SPRO >>> Asset Accounting

>>> General Valuation >>> Depreciation Areas >>> Define
Depreciation Areas

3. Value transfer acquisition costs and production costs: SPRO >>>

Asset Accounting >>> General Valuation >>> Depreciation Areas
>>> Specify Transfer of APC Values

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4. Transfer of depreciation terms: SPRO >>> Asset Accounting >>>

General Valuation >>> Depreciation Areas >>> Specify Transfer of
Depreciation Terms

5. Use of parallel currencies: SPRO >>> Asset Accounting >>>

General Valuation >>> Currencies >>> Specify the Use of Parallel
Currencies

Performing Additional Manual Activities

Once the chart of depreciation has been migrated successfully (either manually or by
the program automatically), you can change other customizing settings before activating
New Asset Accounting.
For example:

1. Define Depreciation Area for Quantity Update: Asset Accounting

>>> Valuation >>> Depreciation Areas >>> Specify Depreciation
Area for Quantity Update

2. Define Technical Clearing Account for Integrated Asset

Acquisition: Asset Accounting >>> Integration with General
Ledger Accounting >>> Technical Clearing Account for Integrated
Asset Acquisition >>> Define Technical Clearing Account for
Integrated Asset Acquisition

3. Specify Alternative Document Type for Accounting-Principle-

Specific Documents: Asset Accounting >>> Integration with
General Ledger Accounting >>> Integrated Transactions:
Alternative Document Type for Ledger-Group-Specific
Documents >>> Specify Alternative Document Type for
Accounting-Principle-Specific Documents

4. Specify Revenue Distribution for Asset Retirement: Asset

Accounting >>> Transactions >>> Retirements >>> Gain/
Loss Posting >>> Define Revenue Distribution for Fixed Asset
Retirement

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5. Post Net Book Value Instead of Gain/Loss: Asset Accounting >>>

Transactions >>> Retirements >>> Gain/Loss Posting >>> Post
Net Book Value Instead of Gain/Loss >>> Subactivity Specify
Depreciation Areas for Net Book Value Posting

What Is a Technical Clearing Account?

This account is necessary to post an integrated asset acquisition in SAP S/4HANA.
The system splits transactional data into an operational part and a valuating part:

• The operational part is the vendor invoice.

• The valuating part is asset posting with capitalization of the asset.

SAP S/4HANA system generates ledger-group-specific documents with this setup. It

posts documents in all the accounting principles in one attempt.
How do you create this GL account? The menu path is /N Accounting >>> Financial
Accounting >>> General Ledger >>> Master Records >>> G/L Accounts >>> Individual
Processing >>> Centrally (transaction FS00) (see Figure 8-48).

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Figure 8-48. GL account creation properties

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Enter this G/L account into the account determination of Asset Accounting for your
chart of accounts in SPRO (see Figure 8-49).

Figure 8-49. SPRO path for “Define Technical Clearing Account for Integrated
Asset Acquisition”

Activate Asset Accounting (New)

The menu path is SPRO ➤ Conversion of Accounting to SAP S/4HANA >>> Preparations
and Migration of Customizing >>> Preparations and Migration of Customizing for Asset
Accounting >>> Activate Asset Accounting (New) (see Figures 8-50 and 8-51).

Figure 8-50. Activation check

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Figure 8-51. Output of activation check program

Note If the chart of depreciation cannot be migrated automatically by the

migration report, you need not worry. Consultants can do the necessary
customizing and then perform the migration adjustments manually.

Verify and execute as shown here:

1. Check which depreciation areas need to be migrated.

2. Verify that the accounting principles are set up correctly.

3. Verify that the ledgers and ledger groups are set up.

4. Check assignment of accounting principles to ledger groups.

5. Verify that the depreciation areas are set up.

6. Verify that the accounting principles are assigned to a

depreciation area.

7. Verify that the posting indicator for each depreciation area is

correct.

8. Verify that the posting indicator for adoption of APC values is

correct.

9. Verify that the posting indicator for adoption of depreciation

terms is correct.

10. Verify the currency type of a depreciation area for parallel

currency.

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Preparation and Migration of Customizing for Controlling

Once the Asset Accounting preparations completed, you have to start Controlling
preparations.
The menu path is SPRO >>> Conversion of Accounting to SAP S/4HANA >>>
Preparations and Migration of Customizing >>> Preparations and Migration of
Customizing for Controlling (see Figure 8-52).

Figure 8-52. Menu path for “Preparations and Migration of Customizing for
Controlling”

This task has the following substeps:

1. Execute BW-Delta extraction for account-based CO-PA

2. Adapt settings for profitability segment characteristics

3. Maintain operating concern

4. Activate account-based profitability analysis

5. Transport operating concern

Step 1: Execute BW-Delta Extraction for Account-Based CO-PA

As account-based CO-PA line items that are not extracted before the migration, they may
be overlooked after the migration when the next delta is loaded. If you are not using ­BW-­
Delta Extraction for Account-Based CO-PA in our current source environment, this is not
needed in your activity list.

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Step 2: Adapt Settings for Profitability Segment Characteristics

Figure 8-53. Adapt Settings for Profitability Segment Characteristics”

execution output

Once you complete this task, you must adapt the settings for profitability segment
characteristics (segment level characteristics) made in classic CO-PA (KEQ3), as the
function is no longer available in S/4HANA.

Step 3: Maintain Operating Concern

The menu path is SPRO >>> Preparations and Migration of Customizing >>>
Preparations and Migration of Customizing for Controlling >>> Maintain Operating
Concern.

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Here, you will activate operating concerns for account-based profitability analysis. If
this setting is not made, the new profitability reporting will not be available. If the source
system has COPA with costing-based functionality, you just activate account-based
COPA. If the source system already has an account-based COPA, no action is needed. If
the source system does not have COPA, no action is needed.
Next, generate the environment.

I mportant Points
During the conversion project and as a part of the conversion activity, you activate
account-based profitability analysis, but don’t completely do the configuration. Once the
system is live, you will do configuration and testing based on the needs of your customer.
Even after conversion, customers can use costing-based profitability analysis.

Preparations and Migration of Customizing for ML

This preparation has two steps, as shown in Figure 8-54.

Figure 8-54. Preparation steps for ML

• Preparations and Migration of Customizing for ML

• Migrate Material Ledger Customizing

The Material Ledger is required in SAP S/4 HANA Materials Management. You have
to migrate even if you are already using SAP S/4HANA Finance.
Execute this as a test run first. If you get any error messages, contact SAP support.
Correct the errors before continuing. Then run it in update mode (see Figure 8-55).

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Figure 8-55. Migration of ML customizing

1. Check Assignment of Material Ledger Types - Valuation Areas (see

Figure 8-56).

Figure 8-56. ML assignments

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Preparations for Migration of House Bank Accounts

In order to move house banks and house bank IDs from the ECC system to the SAP
S/4HANA system, you need to prepare the system using the following steps.
This task has the following subtasks:

1. Define number ranges - bank account IDs

2. Define number ranges for change requests

3. Assign number ranges

4. Define settings for the bank account master

5. Switch the migration program for the house bank accounts

The menu path is SPRO >>> Conversion of Accounting to SAP S/4HANA >>>
Preparations and Migration of Customizing >>> Preparations for Migration of House
Bank Accounts (see Figure 8-57).

Figure 8-57. "Preparations for Migration of House Bank Accounts” menu path

Here are the configuration steps:

1. Define Number Ranges - Bank Account IDs

Create the number range intervals for the bank account technical IDs. The system
automatically assigns a technical ID to a bank account when they migrate to S/4HANA
(see Figure 8-58).

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Figure 8-58. Number ranges for bank account technical IDs

2. Define Number Ranges for Change Requests

The intervals for change requests used in Bank Account Management are created as
the number range (see Figure 8-59).

Figure 8-59. Number ranges for change requests

3. Assign Number Ranges

Assign an interval for the change request IDs to a number range interval for the bank
account IDs (see Figure 8-60).

Figure 8-60. Number range assignments

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4. Define Settings - Bank Account Master.

In this configuration step, you create basic settings for the bank account master data.
Define bank account types based on the customer’s business purposes. Account
types also will be used for analysis in reporting and planning. This configuration is a
must for the migration of house bank accounts. As of now, the activities on the left side of
Figure 8-61 are not needed. You can define them after conversion based on the usage of
the system for cash management.

Figure 8-61. Account types

Another important activity is defining basic settings for Cash Management. Refer to
the following menu path: SPRO >>> Financial Supply Chain Management >>> Cash and
Liquidity Management >>> General Settings >>> Define Basic Settings (see Figure 8-62).

Figure 8-62. Define the basic settings

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Select Activate Directly to migrate existing houses from ECC to S/4HANA. The Cash
Scope is based on the customer input (see Figure 8-63).

Figure 8-63. Define the basic settings and properties

Data Migration Process

I ntroduction
Once the preparation activities are completed for conversion of Accounting to SAP
S/4HANA on the SAP S/4HANA system (after SUM), and you don't have any errors, your
system is then ready to execute the Data Migration Monitor. This lesson provides an
overview on how data migration happens.
This activity has three broad activities:

1. Execute the migration activity.

2. Display the status of the activity.

3. Analyze warnings and error messages and fix them. If needed,

contact SAP by opening an OSS message with SAP.

D
 ata Migration
The menu path is SPRO>>>> Conversion of Accounting to SAP S/4HANA>>>> Data
Migration (see Figure 8-64).

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Figure 8-64. Menu path for executing data migration monitor

Before running the “Start and Monitor Data Migration” task, you need to finish the
following tasks sequentially. You need to address all the issues, even if issues persist.

1. Partitioning of universal journal entry line items table

2. Regenerate CDS views and field mapping

3. Analyze transactional data

4. Display status of analysis of transactional data

What Is Partitioning of Universal Journal Entry Line Items Table?

Transactional data from General Ledger, Controlling, Material Ledger, and Asset
Accounting will be filled in the ACDOCA table once you execute the monitor.
If data volume in those areas is very high, you have to plan for partitioning the
ACDOCA table. This helps you avoid performance and merging operations.

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As per the IMG help documentation, if you have more than 1 billion records,
consider partitioning. Refer to SAP Note 2289491. This activity is need-based and every
system may not have this activity. Consultants working on this may consider this activity
based on the need.

Executing the “Regenerate CDS Views and Field Mapping” Step

SAP recommends executing this step in batch mode. It needs additional authorization
FINS_MIG and developer authorization object S_DEVELOP.
You can verify the progress of the program using the SLG1 transaction with the
subobject FINS_GENERATE.
Regenerate the compatibility and data migration views. Generate the redirection
of SELECT statements from the concerned database tables to the corresponding
compatibility views. Then regenerate the mapping of customer-specific fields in the data
migration procedure.

Analyzing the Transactional Data Step

This task determines if there are inconsistencies in the transactional data of the current
system. You have to analyze the inconsistencies and fix them before executing the
monitor. You should not leave error messages unresolved. If you do this exercise in the
SBX system, it is easy to handle the production environment.
Step R21 performs a complete check of transactional data. If you have multiple
clients, you must run this activity in every client (see Figure 8-65).

Figure 8-65. Display status of analysis of transactional data

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As you can see in Figure 8-65, no errors were found. After these four steps, you can
start the Start and Monitor Data Migration process.
The Start and Monitor Data Migration Monitor has consolidated functionality and it
covers the following tasks:

1. Migration of cost elements

2. Technical check of transactional data

3. Material Ledger migration

4. Enrichment of data

5. Migration of line items

6. Migration of balances

7. Migration of General Ledger allocations to journal entry tables

8. Calculation of depreciation and totals values

9. Migration of house bank accounts

Migration of Cost Elements

As G/L accounts and cost elements are merged in SAP S/4HANA, Cost elements will be
moved to FS00 after executing the monitor as a first step.
The system verifies before it moves cost elements to FS00, if the cost elements are
consistent.
You have to correct the indicated inconsistencies before the migration, or the G/L
account may have the wrong account types after system conversion.
There is no KA02 after converting the system; the default account assignment will be
migrated to OKB9. This also helps with redundancy.
Once the system is converted, consultants need to verify and adjust authorizations
for creating cost elements, as there is a change in user activity after system conversion.
Consultants working on the project must also make sure they provide user training
and manuals for this, as there is a different business process for creating cost elements
and maintaining default account assignments. You can also create secondary costs,
so you have to plan for authorization adjustments to create or change G/L accounts.
Authorization object CO-CCA: Cost Element Master (K_CSKB).

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Default assignments are no longer possible at KA02. They will be done using
transaction OKB9 (table TKA3A).
Figure 8-66 shows an example error at this step.

Figure 8-66. Probable error

After fixing the error, you have to repeat the step shown in Figure 8-67.

Figure 8-67. How to repeat the step

You can find it after fixing the error (see Figure 8-68).

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Figure 8-68. After fixing the error

Figure 8-69 shows how the monitor moves automatically to other steps:

1. GCC (check consistency of G/L accounts and cost elements)

2. GCM (G/L account and cost element merge)

3. DAA (default assignment for cost elements)

Figure 8-69. Migration Monitor

The next step in the monitor is the “Technical Check of Transactional Data” step.

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Technical Check of Transactional Data

When you run this step, the system verifies that all transactional data is complete and
correct. If inconsistencies are found, you need to verify the reason for the errors and fix
them. Always refer to the Help document for complete information. You can see it in
Figure 8-70. No errors are found.

Figure 8-70. No errors for technical check of transactional data

Material Ledger Migration

You have to migrate the Material Ledger, even if the source system does not have ML
activated.

• M10: Migrate Material Ledger Master Data. This activity ensures

that the Material Ledger is activated for all valuation areas.

• M11: Migrate Material Ledger Order History. If the Material Ledger

was not active in any valuation area before SAP S/4HANA conversion,
this activity ensures that all existing purchase order history table

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records and production order history table records are converted into
ML currencies.

• M21: Check ML Production Order and Purchase Order History.

This task verifies that all production and purchase order history
records have been converted into the Material Ledger currencies.

• M20: Check Material Ledger Master Data. This task checks the
migrated data. For instance, existing values from the inventory and
Material Ledger tables are compared to the aggregation via the
ACDOCA table (see Figure 8-71).

Figure 8-71. ML data migration

Migration of Line Items

This step has the following activities

• MUJ data migration into unified journal: line items

• R23 check migration of journal entry

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The system migrates accounting documents from GL and the different subledgers
to the ACDOCA table. After the migration, the resulting line items are checked (see
Figure 8-72).

Figure 8-72. Line items moved to UJE ( ACDOCA)

M
 igration of Balances
This activity ensures the migration of the documents. This task has the following
activities

• DLT data migration to the universal journal entry: Deltas for totals

• R24 check migration of balances (see Figure 8-73)

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Figure 8-73. Migration of balances

Check Migration of Balances (R24) verifies that all balances have been migrated
correctly using the compatibility views.

House Bank Migration

The FCLM_BAM_MIGRATION_REPORT program, accessed via SE38, can be used for the
manual activity. Normally, house banks and bank accounts are automatically migrated
by the Cockpit from the T012K table to FCLM_BAM_ACLINK2. You can verify this using
the SLG1 transaction if there are any errors during house bank migration. Sometimes
surprisingly there are errors, even when the status is green. You can see this migration of
house banks in migration monitor as CM1.

Migration of House Bank Accounts

You must migrate existing house bank accounts from the T012K table to the FCLM_BAM_
AMD table. You must have the authorization F_CLM_BAM, activity 01 and 02, before you do
this activity (see Figure 8-74).

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Figure 8-74. Error at migrating house banks

The reason for this error (see Figure 8-75)

Figure 8-75. Error reason

The error says that these banks are not related to the source system company code.
These banks are from template company codes, so you can accept the error.
Repeat the step (see Figures 8-76 and 8-77).

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Figure 8-76. Repeat the error

Figure 8-77. Issues have been fixed

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 igration of General Ledger Allocations to Journal

M
Entry Tables
This step adjusts the definitions of G/L allocation cycles with actual values. This step is
needed, as the allocation cycle references a summed table and will replace the universal
journal entry table called ACDOCA.

C
 omplete Migration
Once the data migration is successfully completed, you must execute the Complete
Migration task. But before you do that, you must reconcile the migrated data.
There is no standard format for this. You may be able to decide with your client how
they want to validate the before and after system conversion process.
As examples, I provide information about how I have done my conversion projects.
I performed the following reconciliations for the migrated data to make sure that the
migration has been performed successfully and correctly.

1. I reconciled General Ledger 0 with Leading Ledger 0L.

2. I compared the data after the migration with the data before
migration by executing the following reports or programs:

• Financial statement F.01

• Asset history sheet

• Cost center report S_ALR_87013611

• Sales order related program RKKBSELL

• G/L balance report RFSSLD00

• GL line items report FBL3N/FAGLB03/FAGLL03

• Vendor open item FBL1N

• Customer open item RFDEPL00

The menu path is SPRO ➤ Conversion of Accounting to SAP S/4HANA ➤ Data

Migration ➤ Set Migration to Completed (see Figure 8-78).

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Figure 8-78. Set migration completed

Confirm by clicking the Yes option in the window (see Figure 8-79).

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Figure 8-79. Data migration is complete

After you set the migration to complete, users will be able to post the documents and
can perform their business processes.

Post-Conversion Activities
The important post-conversion activities include the following:

1. Adjusting the authorizations

2. Custom code adaptation

3. Verifying the custom programs/reports/transactions

4. Interface testing

5. Output devices testing

6. Unit and integration testing

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7. Adjustment of customer/vendor numeric number ranges, which

must be set to external to allow identical numbers for customer/
vendor and business partner

8. User training for new areas across all lines of business

9. Documentation and validation of changes

Activities After Migration

I ntroduction
Activities after migration (or post-migration activities) should be performed during
business downtime, not technical downtime. Customers can plan to execute these
activities at a later stage, over a weekend after the system conversion.
The menu path is as follows: SPRO>>>> Conversion of Accounting to SAP
S/4HANA>>>> Activities after Migration (see Figure 8-80).

Figure 8-80. Path for activities after migration

The following list shows the activities after migration. All the activities shown here
might not be relevant for every customer. Consultants working on conversion projects
should verify the system and run the appropriate activities.

1. Transfer application indexes and their statuses

2. Fill the offsetting account in Finance transactions

3. Display Status of filling the offsetting account in FI Documents

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4. Enrichment of balance carryforward

5. Manual activities for Trade Finance

6. Manual activities for credit management

7. Migration of Accrual Engine data

8. Deactivate the Reconciliation Ledger

Transfer Application Indexes

The menu path is SPRO ➤ Conversion of Accounting to SAP S/4HANA ➤ Activities after
Migration ➤ Transfer Application Indexes. This task helps transfer application indexes
to the database cold area to minimize the main memory consumption.

Display Status of Transfer of Application Indexes

The menu path is SPRO ➤ Conversion of Accounting to SAP S/4HANA ➤ Activities after
Migration ➤ Display Status of Transfer of Application Indexes. This task displays the
status of the transfer of application indexes (see Figure 8-81).

Figure 8-81. Display transfer of application indexes

Fill the Offsetting Account in FI Documents

The menu path is SPRO ➤ Conversion of Accounting to SAP S/4HANA ➤ Activities after
Migration ➤ Fill the Offsetting Account in FI Documents. This task is to fill the offsetting
account in FI documents.

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 isplay Status of Filling the Offsetting Account

D
in Finance Transactions
The menu path is SPRO ➤ Conversion of Accounting to SAP S/4HANA ➤ Activities after
Migration ➤ Display Status of Filling the Offsetting Account in FI Documents. Here you
can display the status of filling in the due dates into FI documents (see Figure 8-82).

Figure 8-82. Display status of filling the offsetting account in FI documents

Enrichment of Balance Carry Forward

The menu path is SPRO ➤ Conversion of Accounting to SAP S/4HANA ➤ Activities
after Migration ➤ Enrichment of Balance Carryforward ➤ Information: Enrichment of
Balance Carry forward.
This is an optional step. This step can be executed at any time after the balance
migration is completed or after the migration is completed. No downtime is needed for
this task. To do this, posting periods of previous years must be closed to avoid postings.
This step recalculates the balance carry forward for accounts that are managed on an
open item basis. Refer to help documents from the IMG menu or SAP Help documents
for more information.
This task has the following subtasks:

1. Make Settings for the Enrichment of Balance Carryforward

2. Reconcile Balance Carryforward with Open Items

3. Display Status of Reconciliation

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4. Enter Detail Specifications for Balance Sheet Accounts

5. Enter Detail Specifications for P&L Accounts

6. Enrich Balance Carryforward Based on Open Items

7. Display Balance Enrichment Status

Migration of Accrual Engine Data

Here are the steps for migrating the Accrual Engine Data:

1. Run Project - Migrating Transactional Data - Accrual Engine

2. Set Status of Mass Data Project to Completed

3. Display Status of Projects for Accrual Engine Migration

4. Display Status of Migration Projects for Company Codes

The following sections discuss each of these steps in more detail.

Run Project - Migrating Transactional Data - Accrual Engine

As a prerequisite before starting this activity, we might have done the preparation
activity at SPRO >>>> Migration of Customizing for Accrual Engine. This task has to be
performed in each system and client separately. The migration of transactional data is
done by executing a mass data project of project type 70 (see Figure 8-83).

Figure 8-83. Run Project - Migrating Transactional Data - Accrual Engine

The transactional data consists of accrual objects and accrual postings. Both types
of data are migrated collectively by the matching mass data project. Before you execute
this, you must transport the migrated customizing into the productive system. For
the migration of postings of the old Accrual Engine, you need a dummy G/L account.

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This activity will generate line items to universal journals using this G/L account.
Before doing this activity, you must ask the client to validate the reports taken from the
ECC system.

Conclusions
Activities after conversion can be done once the system is up and running. If you do not
do this activity, some of the aging reports may not work properly and report execution
and transaction execution may also be very slow. We can also plan to run SGEN once
this is completed. The next chapter provides an overview of SAP S/4HANA conversion
project tasks.

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CHAPTER 9

An Overview of SAP
S/4HANA Conversion
Project ­Tasks

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Index
A application log, 128
BDT, 131
Account types, 341, 345
code header, 112
Accrual Engine, 17, 296, 298, 326
company code, 126
Accrual Engine Data, 322, 326, 358, 360
create organization, 110
ACDOCA table, 11–14, 296, 297, 299, 343,
customer role, 112
349, 350
display log, 129
ACEMIGIMG transaction, 322, 324
field grouping, 134
Activities after migration, 357–359
finance role, 111
Actual costing preparation, 139, 265,
FLVN00, 125
267, 280
FLVN01, 126
Allocation cycle, complete
HR data, 123
migration, 354–356
InfoType communication, 123
Asset Accounting, 13
maintain address, 122
advantages, 264, 265
master data, 135
conversion/migration, 220
organizational
EA-FIN financial
assignment, 120, 121
extension, 220–223
personal data, 119
periodic asset posting, 223,
print preview, 111
224, 226–228
S/4HANA. BAPI, 130
migration, 327
sales area, 115
preparations, 335
sales area data, 113
SAP Note 2406313, 228, 229
screen, 124
SUM, 229–231
ship to customer, 113, 114
ship to sales area, 114
B SH partner, 116
Bank Account Management (BAM), 15 single employee, 126, 127
Bank account master, 339, 341 sold-to partner, 115
Business Data Toolset (BDT), 131, 132 users, 129
Business functions, 7, 50, 51, 70, 77, 78 Business Rule Framework transaction
Business Partner (BP), 73, 74 (BRFPLUS), 131
address screen, 111 BW-Delta Extraction, 335

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INDEX

C business functions, 78
contact person
Cash and Liquidity Management
activate assignment, 93
functionality, 287–289
assign authority, 95
Central check system, 35, 36, 47, 59
assign department, 94
Cloud computing
assign function, 94
advantages, 23
VIP indicator, 95
definition, 23
customizing settings
services, 23
PPO, 82, 83
CO business transactions
Synchronization Options, 82, 83
consistency check, 320
deletion flag, 77
controlling areas, 319
industries, 98
cost-of-sales, 318
Item Check Program, 76
default values, 316
legal status, 97
document types, 315
marital statuses, 96
offsetting account, 316
number assignments, 100, 101
source and target ledgers, 317, 318
partner roles, 99
Conversion Cockpit, 289, 291–294
payment cards, 97
Cost elements, 300, 345–347
PPO, 103
Credit management preparations,
Precheck, 77
conversion
MIGRATION_PRECHK, 80
FSCM-CR, 269
suppression, 80, 81
SAP credit management, 269
preparation phase, 77
source system, 268
customer-related, 84, 85
SUM, 270–273
vendor-related, 86, 87
Custom code analysis
qRFC Monitor, 107, 108
ABAP programs, 32
SI checks, 75
checks, 34
synchronization Cockpit, 105, 106
definition, 47, 48
synchronization objects, 104
tools
synchronization options, 104
code application, 47
vendor value mapping, 101, 102
SCMON, 36, 37
SLIN, 37–40
system group, 41, 43–46
Custom code migration, 33, 48, 50
D
Customer/vendor integration (CVI), 74 Database Migration Option (DMO), 61, 62
BP Data migration, 299, 300, 343, 344
number ranges/groupings, 88, 92 activities, 301
value mapping, 92, 93 assignments of ledger, 311
366
 INDEX

CO version, 311, 312 Module–HR, 191, 192

currency settings, 307, 308 Module–material
currency types, 310 management, 192–196
customizing settings, 302, 303 Module–PP
document types, 312–314 logistics, 196, 197
fiscal year variants, 306 logistics PLM, 201, 202
General Ledger customizing, 308 master data PM, 197–201
GL, 304, 306 masterdata_PP-MRP, 203–208
IMG, 302 Module SD, 208–211
ledger, 309, 310
QAS/PRD, 309
SAP, 307 F, G
tasks, 301 FCLM_BAM_MIGRATION_REPORT
Data Migration Monitor, 277, 289, 342, program, 351
343, 345 FI-AR-CR-based credit management, 267
Deletion flag, 75, 77, 136 Field grouping, 133, 134
Field modifications, 132, 133
Finance Consultants, 26, 293
E Financial Closing Cockpit
ECC system, 138, 141, 142, 327 application, 18, 19
Error messages
CT_OM, 212, 213
ECC system, 214–217 H
Module–Finance HANA Enterprise Cloud (HEC), 3, 5
FIN_GL, 173–176 House bank accounts, 351–353
FIN_MISC_ML, 170 Hyperscaler data center, 2, 4, 5
GENERIC_CHECKS, 170–172
Sub ID FI_AA_ACCOUNT, 188
Sub ID FI_AA_COMPONENTS, 187 I, J, K
Sub ID FI_AA_CUST_DEPRAREA, Inconsistency correction monitor
183, 186 archiving flag, 154–160
Sub ID FI_AA_CUST_ BKPF inconsistent, 169
DEPRCHART, 181 BSID, missing archiving flag, 168
Sub ID FI_AA_CUST_LEDGER, 177, BSIK, missing archiving flag, 166–168
179, 180 BSIS/BSEG, 147–153
Sub ID FI_AA_ DEPRAREA_ ECC system, 141
CURRENCY, 190 error message FIN_FB_
Sub ID FI_AA_FISCYEAR, 189 RECON7, 160–163

367
INDEX

Inconsistency correction monitor (cont.) P, Q

information message, 142
Platform-as-a-service (PaaS), 23
local currency, 164, 165
Post-conversion activities, 356
readiness check notes, 143
Post-migration activities, 71, 293, 357
reconciliation run, 144–147
Post Processing Order (PPO), 82, 83, 103
reconciliation issues, 143
Pre-migration content, 325
SUM tools, 144
Preparation and Migration of Customizing
Infrastructure as a service
for AA, 326
(IaaS), 4, 23
Asset Accounting, 333, 334
change requests, 340
depreciation, 328, 329
L
GL, 332
Lean Service Procurement, 18
house banks, 339
Line items, 149, 156, 350
manual activities, 330
ML, 337, 338
number range, 340
M, N, O Preparation phase
Maintain Operating Concern, 335, 336 ECC system, 138–141
Manual accruals functions, 325 SUM, 137
Mass Data framework, 303, 304 Process Discovery Transformation tool, 7
Material Ledger (ML) preparation Profitability segment, 335, 336
before SUM, 275
data migration, 277
OMX1 transaction code, 274 R
preparation activities, 275, 276 Readiness Check, 6, 7, 25, 27, 29, 30, 50
source ECC system, 274 Revenue recognition preparation, 285, 287
start/monitor data migration, 277, 279
Migrate customizing settings,
Accrual Engine S
ACE, 323 SAP Cloud Platform (SCP), 3
migration precheck, 321, 322 SAP Credit Management, 73, 211, 267, 289
Migrate Material Ledger Master Data, SAP ECC system conversion
277, 348 conversion process, 49
Migration of balances, 350, 351 custom code analysis, 59, 60
Migration precheck, 320, 321, 323 functional preparation, 50
ML data migration, 349 maintenance planner, 51, 52
Monitor GR/IR Account Reconciliation, 17 modifications, 65–69
Multi-tenant server, 1 namespace, 65

368
 INDEX

preparation, 50 planning table, 12

project activities, 70, 71 sales, 20
realization phase transfer prices, 16
software logic tools, 61, 62 components, 9
software update manager, 60 definition, 1, 8
SI check, 52–58 deployment option, 5
unicode conversion Extended Edition, 3
approach, 62 on-premises, 4, 5
consultants, 63 planning tools
scan ABAP code, 64 Fiori apps, 7
SWPM, 64 Process Discovery
SAP Readiness Assessment, 48 Transformation, 7
SAP Readiness Check, 7 SAP Readiness Check, 7
check 2.0, 26–31 Private Edition, 2, 3
custom code analysis, 32–34 public cloud solution, 1, 2
definition, 26 SAP ECC System, converting, 10
inconsistencies, 26 Simple Finance, 9
process discovery, 31 SAP S/4HANA conversion, 363
SAP S/4HANA SAP S/4HANA system, 331
advantages, 10 SCMON transaction, 36
accrual engine, 17 SD Revenue Recognition, 21, 139, 141
asset accounting, 13 SI2
bank relationship management, 16 FIN_AA
business partners, 16 chart depreciation, 258–261, 263, 264
cash management, 15 consistency check results, 232–235
data model, 10 correction action, 235–239, 241, 243
deployment options, 22 ledger approach, 249–252
depreciation areas, 14, 15 SAP asset accounting migration,
depreciation screen, 19 243, 244, 246–249
FI-AR-CR function, 20 specify transfer, APC values, 252–254
Financial Consolidation, 21 technical clearing account, 254–258
Fiori apps, 21 Simplification Item Check Report, 137,
foreign trade, 20, 21 227, 229, 285
ledger/accounting principle Software-as-a-service (SaaS), 23
postings, 15 Software Provisioning Manager (SWPM), 64
MRP engine, 18 Software Update Manager (SUM), 219, 291
new data model, 11 ACDOCA, 297
OLAP/OLTP, 18 administrator, 292

369
INDEX

Software Update Manager (SUM) (cont.) T, U, V, W, X, Y, Z

cockpit, 297
Total cost of ownership (TCO), 1–3
data conversion, 295
Trade finance preparation
menu path, 295
Foreign Trade (SD-FT)
preparations and migration, 298
functionality, 281
role, 291
pre-transition checks, 281–285
SAP S/4HANA, 295
Transactional data, 331, 344, 348, 360
SPAU, 293
Transfer Application Indexes, 358
SPDD, 292
balance carryforward, 359
SPRO, 296
Display Status, 358
Software Update Manager (SUM),
FI documents, 358, 359
219, 280, 291

370