Thursday, 14 December 2017

Subsequent Document Splitting in S/4 HANA Finance 1709 (on Premise)

1. Purpose of this document


This document is for SAP FICO Application consultants. You would be able to implement subsequent document splitting in S/4 HANA with the help of this document. You must know already how document splitting works in general, it is sort of prerequisite.

2. Overview of Subsequent Document Splitting


There are many customers on previous SAP ERP versions (ERP with Classic GL & ERP with New GL) without document splitting but want to migrate to S/4 HANA with document splitting to get balance sheet valuation at lower level than company code i.e. Business Area, Profit Centre and Segment. Before release of S/4 HANA 1709, activation of document splitting was not possible if source system does not have the document splitting functionality activated during or post migration.

Subsequent activation of document splitting is possible with S/4 HANA Finance 1709 release. Now, business can migrate to S/4 HANA from any version and subsequently document splitting can be activated. It has to be a separate project than S/4 HANA Migration one.

SAP has provided this solution in standard offering of S/4 HANA 1709; there is no separate licence for using tools for subsequent document splitting activation. Subsequent document splitting activation

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in SAP ERP attract different license and cost.

3. Project Phases and their Activities of Subsequent Implementation of Document Splitting


There are three phase of document splitting subsequent implementation i.e. 
1. Preparatory & Testing 
2. Execution Phase 
3. Post Processing

Preparatory Phase:

◈ Concept Planning
◈ Create Detail Project
◈ Business Requirement
◈ Business Blue Print
◈ Customizing
◈ Testing
◈ Complete Preparation

Execution Phase:

◈ Online Validation Activate
◈ Data Consistency Checks
◈ Enrichment of Open Items with document splitting characteristics
◈ Document Splitting Activate
◈ Fiscal Year Close
◈ Enrichment of Balances
◈ Carry-forward with Document splitting characteristics
◈ Reconciliation

Post Processing Phase:

◈ Manual Adjustment of Opening Balance
◈ Repost Opening Balance
◈ Zero Balance Check

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I. Preparatory Phase:

a. General Information about the Approach

No change in Approach:

◈ Concept of Document Splitting Logic
◈ Analysis of Business Process and Process Adjustments
◈ Configuration of Document Splitting
◈ Master Data Analysis and Preparation (e.g. Maintenance and Assignment of Profit Centers, Segments

Change in Approach:

◈ Concept of Data Enrichment
◈ Customizing of a Project for Subsequent Document Implementation
◈ New Analysis tool to figure out, if document splitting configuration is complete and if exiting journal entries could have been splitted

Master Data Considerations:

In case you need to introduce a new reporting entity to fulfil the reporting requirements, you have to keep in mind the following:

Correct Master Data Maintenance in all the systems (Configuration, Testing, and Production)

Complete assignment to other accounting object

Customizing for Field status management

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b. Activation of Document Splitting for Productive Company Code

When setting the Document Splitting Flag (1) and keeping the company codes Active for the document splitting (2) you need to confirm, that these company codes don‘t have productive data.

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c. Project Customization for Subsequent Document Splitting

For each subsequent document splitting activation a project need to be created and this project need to be assigned to company codes as well.  This project also includes activation date of document splitting. 

Recommendation: It is recommended that document splitting is activated on the very first day of New Fiscal Year. Nevertheless, business can keep any date as activation date for document splitting. In both the cases post processing phase can be run once you are done with year-end closing and no adjustment posting is require to post.

If you have multiple company codes with different fiscal years in the system, then you can create multiple projects but at a time a single project can be run for document splitting, else you can select a date according the fiscal year that is being used in the maximum company codes.

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d. Assignment of Company code with Project

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e. Analysis Tool for Documents Splitting

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f. Activation of Online Validation

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Validation can be further controlled through

◈ BAdi VALIDATION_ADJUST
◈ BAdi COMPLETE_ASSIGNMENT

g. Logic of Data Enrichment

Open Item Enrichment:

◈ Open items need to be enriched with the document splitting characteristics before the document splitting gets active, to ensure follow-up processes can be posted according to the document splitting logic
◈ No splitting – only adding account assignment information to the open item
◈ BAdI Implementation is mandatory – no other enrichment logic is offered
◈ Example implementation CL_FINS_SIS_BADI_OPITEMS_EX1 available

Balance Carry Forward Splitting:

◈ Opening balances need to be splitted, to ensure reporting of opening balances for document splitting characteristics
◈ Splitting of opening balances generates new balance carry forward entries in table

ACDOCA (identifier is mig_source “E“)

◈ Only empty fields get filled by the BAdI – no overwriting of available information
◈ BAdI Implementation is mandatory – no other enrichment logic is offered
◈ Example implementation CL_FINS_SIS_BADI_BAL_EXAMPLE available

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Enrichment of Reversal Postings:

◈ Fills account assignments in journal entries that have been posted prior to the Document Splitting activation date and get reversed after the document splitting activation date
◈ This enrichment logic is not part of the data conversion – it‘s used in daily processes esp. reversals

Enrichment of Period End Postings: Fills account assignments for the following:

Line items or balances that have been posted prior to the document splitting activation date

◈ Line items or balances that are processed by a closing transaction, such as Foreign Currency ◈ Valuation, and result in a posting with posting date after the document splitting activation date
◈ Line items or balances that are processed by a periodic tax payable calculation and
result in a posting with posting date after the document splitting activation date
◈ This enrichment logic is not part of the data conversion – it‘s used during period end activities

h. Other Setting

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i. Check Preparation

Analysis mandatory settings for your project:

◈ Document splitting activation date is set in the future
◈ Company codes with cross-company code postings are assigned to one project
◈ Online Validation for Document Splitting is active
◈ BAdIs for data enrichment are implemented Ensures, that
◈ No documents exist with a posting date later than the document splitting activation date
◈ No splitting information exists so far for the company codes assigned to the project

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j. Complete Preparations

◈ Checks customizing settings
◈ Creates snapshot of existing customizing
◈ Checks availability of journal entries after Document Splitting activation date

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II Execution Phase

There is a cockpit for document splitting the way we have cockpit for S/4 HANA Migration. In other words, execution of data enrichment and reconciliation is handled in the Cockpit

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a. Separation of Major Task

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b. Cockpit Execution

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c. Cockpit Task and Action

◈ Activities until “Activate Document Splitting” are performed for all company codes assigned to the project together
◈ Activities from “Confirm Fiscal Year Closure” onwards can be executed by a subset of entities assigned to the project – Activities start with selection screen: company code, ledger, fiscal year variant – selection is optional.

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d. Cockpit – Log & Error Handling

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e. Cockpit Activity – Reconcile Journal Entries

SIS_RC_UJE “Reconcile Journal Entries“ checks all journal entries for consistency before any data conversion takes place

Following checks are performed:

◈ Check if cross company postings are in the system that at least 1 company code, which is maintained in the project Customizing
◈ Check if field content is the same for each document line in tables BKPF and BSEG

ü  Month (period)

ü  BSTAT (document status)

ü  BUDAT (posting date)

ü  BLDAT (document date)

ü  WAERS (currency)

ü  BLART (document type)

ü  AWTYP (reference procedure)

ü  AWSYS (logical system of source document)

ü  AWKEY (object key)

◈ Check that the universal journal entries have a 0 balance
◈ Check that the entry exists in table BSEG and table ACDOCA
◈ Check that the entry exists in table ACDOCA and table BSEG
◈ Check that the entry exists in table BSEG_ADD and table ACDOCA
◈ Check that the entry exists in table ACDOCA and table BSEG_ADD

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f. Cockpit Activities: Generate Splitting Information for Open Items

Splitting information for open items is required for follow-up processes, e.g. clearing or reversal, that run after the doc. splitting activation date.

Note: Open items are only enriched with account assignments – not splitted.

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g. Cockpit Activities: Generate Splitting Information for Open Items and Reconciliation of Splitting Information

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h. Cockpit Activity: Activate Document Splitting

SIS_MAN_SP Activate Document Splitting is a manual activity to confirm the Activation of Document Splitting for the defined date.

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◈ Without performing this activity, the document splitting will not be activated.
◈ The activity needs to be performed before the posting period is opened in which the document splitting activation date is included and before any journal entry has been posted with or after the defined date.
◈ Activities for open item enrichment have to be performed completely before setting this confirmation status.
◈ In production system you cannot RESET activities from SIS_MAN_SP onwards.
◈ An action log is provided for manual activities via the context menu.

I. Cockpit Activity: Confirm Fiscal Year Closure

◈ This confirmation activity is precondition for the enrichment of the opening balances.
◈ The activity checks, that balance carry forward entries are available for the year of document splitting activation.
◈ An action log is provided for manual activities via the context menu.
◈ The confirmation activity can be performed per company code and ledger combination, all follow-on activities as well. In case one company code closes the year faster than other company codes, the fast one could proceed with the enrichment on it‘s own.

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j. Cockpit Activity: Enrich Journal Entries

SIS_ENR “Enrich Journal Entries” copies splitting information, created by activity SIS_SPL  Generate Splitting Information from tables FAGL_SPLINFO and FAGL_SPLINFO_VAL into table ACDOCA.

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Only document splitting characteristics are copied from FAGL_SPLINFO into ACDOCA.

◈ The results of this activity are the basis for the calculation of opening balances on open item managed accounts in the activity SIS_BAL “Enrich Opening Balances”.
◈ The log gives you detailed information on error and success messages
◈ “Reset Activity” doesn’t delete entries. The updated information is kept in table ACDOCA.

 k. Cockpit Activities: Reconcile Opening Balances

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l. Cockpit Activities: Enrich Opening Balances

SIS_BAL „Enrich Opening Balances adds the relevant account assignment details to the balance carry-forward data.

Different scenarios for the Enrichment:

◈ Open-item-managed accounts:
◈ The opening balances are equal to the total of their open items and therefore based on the enriched open items
◈ The total number of the open items in combination with the relevant account assignments is calculated and the opening balances are enriched
◈ Not open-item-managed accounts:
◈ The opening balances for accounts are enriched based on the definition of the BAdI FINS_SIS_BAL

Resetting the Opening Balances:

◈ Deletes entries in ACDOCA with mig_source “E”
◈ Deletion includes entries from “Repost Opening Balances”
in the Post Processing Phase
◈ Postings from “Post Values Adjustment for Opening
◈ Balances” in the Post Processing Phase must be reversed before Resetting the activity Enrich Opening Balances

Note: When defining the enrichment logic in the BAdI consider, that the opening balances are much more detailed in S/4HANA than in ECC.

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m. Cockpit Activity: Confirm Data Enrichment

Once you have confirmed the data enrichment, you can no longer reset activities in the project cockpit. If you need to reset and rerun activities, you need to reset the Confirm Data Enrichment first. You can only reset the Confirm Data Enrichment activity in test systems.

Steps in the Post Processing Phase can only be performed, if data enrichment has been confirmed.

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n. Conditions and Limitations

Please be aware that some data is not enriched during the Execution Phase. The following accounting data is not relevant for General Ledger Accounting:

◈ Down Payment Requests and other statistical items
◈ Payment Requests
◈ Reference Documents such as recurring entries, sample document, account assignment model need to be updated manually
◈ Held and parked documents without necessary account assignments have to be posted before the document splitting activation

If you want to create journal entries based on one of these types of documents, you can either change the journal entries, or reverse and re-create them to include the document splitting characteristics. 

III Post Processing Phase

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a. Post Value Adjustment of Opening Balances

These manual postings are used to adjust the result of the balance carry-forward (period 0) per account assignment

◈ Can only handle currencies available in table BSEG
◈ Posting date is set automatically to first day of fiscal year – If you activate document splitting sometime during a fiscal year, this date is the first day of the following fiscal year
◈ Amounts in local currencies need to be entered – no currency calculation logic available
◈ Postings can only be made to accounts that are not managed on an open item basis
◈ Postings cannot be made to reconciliation accounts (customers or vendors) and asset accounts

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b. Repost Opening Balances

Update G/L balances for document splitting characteristics without impacting balances on company code and account levels by writing records into period 0 in table ACDOCA like balance carry forward

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Preconditions:

◈ Data enrichment is confirmed
◈ Project is not set to “Completed”

c. Check Zero Balances

Checks zero balance for reporting objects, which have been defined as zero balance entity in customizing for Document Splitting characteristic for General Ledger

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◈ Zero Balance Check runs as a mass data activity in the cockpit
◈ Navigation from an error message to drill down reporting with handover of parameters for report selection

d. Complete Project

Confirm that the overall project, including all relevant activities, has been completed

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‘Complete Project’ can only be set if following conditions match

◈ Data Enrichment is confirmed for all company codes
◈ Authorization object FINS_MPROJ is assigned to user

4. Activation of Doc. Splitting for Companies with Different Fiscal Years in One Project

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5. System Dependencies

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6. Recommendations & Key Information

It’s better to follow below recommendations and key information before you start subsequent document splitting.

◈ It is recommended that document splitting is activated on the very first day of New Fiscal Year, though date is freely selectable
◈ It is not Applicable for Cloud Solution
◈ It has to be a separate project after S/4 HANA Migration Go-Live
◈ Project can be achieved with almost Zero Down time
◈ Subsequent document splitting is called project and not migration
◈ It is handle in similar line as S/4 HANA Migration meaning Document splitting is configured and tested on production mock system first.
◈ You can create multiple project and assign them fiscal year wise (Company Code). One Project can be in execution at a time.
◈ Project Preparation phase can be reset if you have not started data enrichment steps.

7. License & Fees

Subsequent document splitting is part of standard offering in S/4 HANA. No addition service or licence need to buy.

8. Subsequent Implementation of Document Splitting – Summary 

◈ Only relevant, if productive accounting data need to be handled
◈ Time-dependent Activation of Document Splitting
◈ Guided Implementation via IMG and Cockpit for Mass Data Processing

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