Central Finance as an intermediary tool helps us replicate data from source system to S/4 Hana system for better reporting & analytics.
Data Replication from the source system to S/4 Hana System is the foundation task on which the Central Finance Concept works.
In this video we are going to learn which Financial Data can be Replicated & what not.
1. Replications Scenarios Supported in Central Finance:
1.1 FI/CO Replication:
Entries are posted in FI as Primary Cost Elements gets automatically posted to CO. All such entries made in the Source system automatically gets replicated in the CFIN.
1.2 CO Replication:
In addition to FI/CO postings, some entries are directly posted to CO as Secondary Cost Elements to absorb different allocated Costs. All such entries made in the Source system automatically gets replicated in the CFIN.
1.3 Cost Object Replication:
Cost objects are nothing but the master Data Created in CO module like: Internal Orders, Production Orders etc.
Once a CO source object (for example, an internal order or product cost collector) has been created in the source system, it is replicated in the Central Finance system
Central Finance cost object mapping allows to replicate cost objects such as production order, internal order etc. to central finance system cost object.
1.4 Commitment Replication:
Commitment Means Consuming Budgets.
If Budgetary System has been activated then, Commitments available for creation of PR/PO in the Source System also get replicated to CFIN.
When replication happens, the old commitments are updated in COOI table & after replication, any new Commitment is updated in ACDOCA table.
1.5 Replication of EC-PCA Postings:
A profit center is a management‑oriented organizational unit used for internal controlling purposes.
Profit Centre Accounting (EC‑PCA) lets you determine profits and losses by profit center using either period accounting or the cost‑of‑sales approach.
It means: if classic system of Profit Centre Accounting is followed in the source system, then, all the Postings made in Profit Centre in the Source system gets replicated in CFIN.
1.6 Replication of Material Cost Estimates:
The material cost estimates function enables you to cost the finished and semifinished materials and update the material master data with the calculated costs.
If std. Cost calculation is activated then such Material Cost Estimates can be replicated from source system to CFIN. CFIN presents an opportunity for a harmonized and centralized material cost estimate where cost estimates with different structures/components from different source systems can consolidate into a centralized cost estimate in CFIN.
1.7 Replication of Activity Rates:
Activity Rates maintained in KP26 are used to value internal activities to produce products.
Activity Rates are the Cost/UoM of Activity for each Cost Centre.
This function enables the user to maintain the business scope for the activity rates which shall be replicated from source systems to the Central Finance system
1.8 Replication of Activity Types:
Activity types are used to determine the quantity-based output of a cost centre.
Activity types are used primarily to control the activity quantities on the cost centres. This enables you to measure the operating rate or the rate of capacity utilization of a cost center.
1.9 Replication of Projects:
Project System is a different module in SAP which contains different WBS elements for different Projects.
Such Project system if activated in the Source System can also be replicated to Central Finance.
1.10 Replication of Defined Objects of Logistics Data:
Accounting View of Logistics (AVL) is a functionality in Central Finance in which logistical information is loaded and replicated from SAP source systems into Central Finance.
A defined subset of logistics information is replicated from a source system to the Central Finance system for:
o Sales documents (including pricing documents)
o Customer invoices (including pricing documents)
o Purchasing documents
o Supplier invoices
1.11 Replication of Joint Venture Accounting Data:
A joint venture is an arrangement, based on the provisions of a joint operating agreement (JOA), in which two or more parties agree to work together for a common purpose.
Joint ventures are common when development or operational activities are capital intensive, involve high risk, and possibly long payback periods.
The joint venture allows participants to spread the risk by sharing in operational costs. The joint venture partners share revenues in proportion to their investments.
The SAP joint venture business object is used to identify the type of venture, such as corporate, operated, or non-operated, as well as the partners and their working interests within the JOA.
Most expense data for joint ventures is captured in other SAP components and processed in SAP Joint Venture Accounting (JVA). When expenses are captured, they are assigned to a cost object associated with a venture. SAP JVA re-assigns, these joint venture expenses to the joint venture operating partner and the non-operating partners, according to their equity shares in the venture.
SAP Central Finance Replicates Joint Venture Accounting master data (joint operating agreements, ventures, equity groups, venture partners).
SAP Central Finance Replicates the Joint Venture Accounting documents posted by several Joint Ventures.
2. Replication of Data in a Changed Environment:
SAP Central Finance not only replicates the Transactional Data from the Source System, but also accommodates the change of data in the Source System.
2.1 Replication of Document Changes:
The document changes are replicated from the third-party source systems via the SAP Landscape Transfer Replication Server to the Central Finance system.
The changes that are done to already posted financial accounting documents in the source systems can be replicated to the already replicated financial accounting documents in the Central Finance system.
2.2 Replication of Changes in A/R & A/P:
This is very similar to the 1st point mentioned above because A/P & A/R also Financial Documents.
If any Payment information or Transfer information needs to be sent from the Source to Target system can also be done through CFIN.
2.3 Replication of Changes to Cost Objects, Depending on the Scenario Definition:
Cost objects are nothing but the master Data Created in CO module like: Internal Orders, Production Orders etc. CFIN allows us to make changes to the Cost Objects if there is any change in the Source System.
Depending on the Scenario Definition means: While replicating the Cost objects there are different Configurations need to be made to bring the data to CFIN. Based on the what Configurations have been activated, we can change the Cost object in CFIN
2.4 Replication of Changes in Commitments:
Commitment Means while we create PR/PO it Consumes the Budget keeping those numbers in the Commitment Part.
If there happens any change in the Status of PR/PO, Let’s say: PR is deleted, G/R is done or I/R is done & the commitment need to be updated that information will also be transferred to CFIN.
2.5 Revenue Accounting & Reporting (RAR):
With new version, the Revenue Accounting and Reporting (RAR) can be integrated with SAP Central Finance.
Decentralized revenue accounting data from local systems can be processed centrally and provide a consolidated reporting view.
For the mapping of RAR data, the standard MDG Customizing of CFIN is used.
The mapping ensures that the master data from local RAR systems are mapped properly to the RAR master data of the CFIN system.
The mapping is performed when revenue accounting items (RAIs) are created and when data is reconciled between the source system and the RAR system.
3. Replications Not Supported in Central Finance:
3.1 CO-FI Postings & Clearings:
Any Posting done directly in CO also generates an Accounting Document in FI.
CO entries are also to be transferred from Source system to target System.
Reason so, entries in CO in Source System which generates an Accounting Entry will not be replicated otherwise it will lead to duplication.
3.2 Year-End Closing Postings where the Reference Transaction (AWTYP) is GLYEC:
Year-End Postings made in Source System such as:
Postings for year-end closing of the profit and loss statements.
Postings for closing and opening the balance sheet accounts does not get replicated in CFIN.
3.3 Recurring Entries:
Recurring entries allows the business for automatic creation of accounting entries based on the predefined parameters.
For Smoother Month-End closing we create multiple Recurring Entries which are posted in the Month-End.
Such Recurring Entries created in source system are not replicated to CFIN.
If we want to create any recurring Entry in CFIN, then it must be created Separately in CFIN.
3.4 Sample Documents:
Sample document is a reference document for the original documents. It will not update any transaction figures.
Just like Recurring Entries, we sample documents for month end provisions.
Sample Documents Created in Source System does not get Replicated to CFIN.
If we want to create any Sample Document in CFIN, then it must be created Separately in CFIN.
3.5 Noted Items (Apart from Down payment Requests & Payment Requests):
Noted item is not a full transaction. it does not have a debit and credit.
Noted Items are not displayed in Financial Statements as they serve only as reminders of a financial obligation such as outstanding payments to be made or due to us.
This kind of posting does not update any GL account in the system but helps to keep track of such obligations for easy follow-up.
Noted items other than Down Payment Requests & Payment Requests Created in Source System does not get Replicated to CFIN.
3.6 Parked Documents:
With document parking, you can enter and store (park) incomplete documents in the SAP system without extensive entry checks.
At a later point in time, it is possible for you, or another user, to complete, check, and post the parked documents.
During parking, the system does not update any data such as transaction figures.
Parked Documents Created in Source System does not get Replicated to CFIN as only Posted Documents are updated in CFIN.
3.7 Balance Carry forward Items:
Balance carry forward is one of the Period end Activity which needs to be dealt with in both the systems Separately.
Balance carry-forward means carrying forward account balances into the new fiscal year.
The balance to be carried forward is shown in the account balance display.
Balance Carry forward for Balance Sheet Accounts and Customer/Vendor Accounts are carried forward to the same accounts in the new fiscal year.
P&L accounts are carried forward to one or more retained earnings accounts. The balances of the profit and loss accounts are set to 0.
Balance Carry forward done in source system are not replicated to CFIN.
3.8 Closing Operations:
Just like facts mentioned in point no. 3.2, the year end closing activities are not replicated to CFIN.
3.9 Costing Based CO-PA:
Majority of customers were using or are using costing-based COPA as it is based on value fields.
Since it is based on Value Fields and not on G/L Accounts most of the times it is not completely aligned with the GL Document postings.
So, Entries made in Costing Based CO-PA in the source system will not get replicated in the CFIN.
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