Mastering
SAP S/4HANA TVO9
- Strategies for
Implementation
and Migration
Transition to S/4HANA with tried and tested deployment scenarios
-
-
-
-
By Nitin Gupta

Mastering SAP S/4HANA 1709 ‒
Strategies for Implementation
and Migration
Transition to S/4HANA with tried and tested
deployment scenarios
Nitin Gupta
BIRMINGHAM - MUMBAI

Mastering SAP S/4HANA 1709 ‒ Strategies
for Implementation and Migration
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To my father, for everything I am and will be.....I owe it to you.
To my wife, for her inspiration, and to my kids, Nilay and Nivi, for their love.

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Contributors
About the author
Nitin Gupta is an IT professional with expertise in SAP solution architecture, business
process transformation, and project management and over 11 years of experience in
managing and delivering complex SAP and transformation projects resulting in efficiency
and productivity. He has successfully led and managed full lifecycle SAP implementation
projects across the globe. He holds a master's in business administration and is presently
based in Auckland.

About the reviewer
Pallavi Gupta is a finance expert with vast experience in SAP. Her expertise includes SAP
Financials and SAPS/4HANA. She is presently working as an independent consultant on
several projects under her own company. She has excellent interpersonal skills and is
involved in several client-facing roles. She is presently based in Auckland.
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Table of Contents
Preface 1
Chapter 1: An Overview of SAP HANA, S/4HANA, and Migration 6
Technical requirements 7
In-memory data – a core to SAP HANA 7
Optimization of in-memory data 8
Data storage model 8
Data compression 9
Delta storage 10
Data aging 11
SAP HANA Live 13
Introduction to SAP S/4HANA 15
Understanding SAP S/4HANA 15
The Universal Journal 17
Compatibility views for historic data 20
Merging G/L accounts and cost elements 21
Logistics changes 22
Changes to material master data 22
Sales activity 24
SD rebate processing 24
Data model changes 24
Credit management 24
Introduction to SAP Fiori 24
What is SAP Fiori? 25
Key pillars of the Fiori experience 26
Type of Fiori apps 28
SAP Fiori Launchpad 29
SAP Fiori architecture 32
SAP Fiori business benefits 33
S/4HANA migration overview 33
Introduction to migration 33
Concept of business partners 34
Customer vendor integration 38
What is CVI? 39
Business impact of CVI 40
CVI conversion scenarios 40
Summary 41
Questions 42
Chapter 2: Migration to SAP HANA – Tools and the Project 43

Table of Contents
Technical requirements
System migration
SAP homogeneous system copy
Reasons for a homogeneous system copy
SAP heterogeneous system copy
System copy consequences and decision table
Migration check service
Benefits of migration check service
System copy method
Database-specific copy method for Java
SAP migration tools
ABAP OS/DB migration
DB object size calculation with R3SZCHK
JAVA OS/DB migration
System copies – import and export
Software logistics toolset
Software provisioning manager
Target database size
Migration project overview
A sample schedule
SAP OS/DB migration check analysis
SAP OS/DB check verification
Required source system information
Required source system – technical information
Performing a migration test run 59
Final migration planning
Installing and upgrading
Software update manager
Summary
Questions
Chapter 3: SAP S/4HANA – Deployment Options
What is deployment?
SAP S/4HANA deployment options
SAP S/4HANA On Premise
SAP S/4HANA on Cloud
Comparing S/4HANA On Premise and On Cloud
Types of cloud
An overview of implementation scenarios
Hybrid model of deployment
Summary
Questions
Chapter 4: Impact of S/4HANA on the SAP General Ledger
Technical requirements
The history of the General Ledger
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[ii ]

Table of Contents
An overview of the Classic General Ledger
An overview of the New General Ledger
Features of the New GL
General Ledger in SAP S/4HANA
Data structure of GL in SAP S/4HANA
Universal Journal
Ledgers and currencies
GL account and cost elements
Changes to transactions and search options
Customizing the SAP General Ledger
Activating SAP Reference IMG
Checking and adopting Fiscal year variants
Migrating General Ledger customizations
Defining settings for the Journal Entry Ledger
Defining ledger groups
Assigning the accounting principle to the ledger group
Defining a ledger for Controlling
Defining document types for posting to Controlling
Defining the document type mapping variant
Defining default values for posting in Controlling
Defining the offsetting account determination type
Defining the source ledger for migration of balances
Executing the consistency check for the General Ledger
Activating business functions
Summary
Questions
Chapter 5: Impact of S/4HANA on SAP Controlling and Profitability
Analysis
Technical requirements
An introduction to SAP Profitability Analysis (CO-PA)
Usage of COPA
Methods of profitability management
Methods of Profitability Analysis in SAP
Aspects in SAP profitability management and organization units involved
Comparative analysis of various methods
Types of CO-PA
Account-based COPA
Costing-based COPA
Differences between account-based and cost-based COPA
COPA in SAP S/4HANA
Integration of Account-based CO-PA to Universal Journal
Attributed profitability segments
Realignment in CO-PA with SAP S/4HANA
Characteristics that cannot be changed
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[iii ]

Table of Contents
Characteristics that can be changed freely 116
Characteristics that can be changed only if the account assignment is not true 116
Characteristics that are changeable if the field is initial at the time for execution
of realignment 116
Reporting options in CO-PA with SAP S/4HANA 117
The Fiori app 117
Analysis for Office 118
HANA Live 119
COGS split in S/4HANA-based CO-PA 120
Defining accounts for splitting COGS 120
Defining additional quantity fields 120
Defining accounts for Splitting Price Differences 121
Material Ledger in SAP S/4HANA 121
Significant changes in Controlling in SAP S/4HANA 122
Changes in transactions 122
Changes in tables
Changes in configuration 123
123
Configuration of the document type for CO 123
Maintaining document-type mapping for CO transactions 125
Checking and defining default values for posting in Controlling 125
Maintaining version for the ledgers 126
Summary 127
Questions 127
Chapter 6: Impact of S/4HANA on SAP Asset Accounting 128
Technical requirements
An overview of SAP Asset Accounting 128
129
Features of SAP Asset Accounting 130
Organizational units in Asset Accounting 130
Charts of depreciation
Integration components 131
133
Integrating with Controlling 133
Integrating with General Ledger (FI) 134
Integrating with Material Management (MM) 135
Asset classes and their components
An introduction to New Asset Accounting
Key changes in New Asset Accounting 136
139
139
Changes to transaction codes 140
An introduction to the Technical Clearing Account (TCA) 140
Changes to AuC and Transaction Types 143
Posting to the Universal Journal 144
New depreciation-calculation engine 144
Depreciation areas and ledgers 144
Data migration in New Asset Accounting
Summary
Questions 145
146
146
[iv ]

Table of Contents
Chapter 7: S/4HANA New Functionalities – Cash Management, BPC,
and Fiori UX
Technical requirements
Introduction to Bank Account Management (BAM)
Solution overview
Redesigned approach in SAP S/4HANA
Configuration
Maintaining number ranges for bank account technical IDs
Maintaining bank account types
Configuring enable payment approval process
Configuring payment signatories
Configuring cash pool for cash concentration
Existing options for extensibility
ICF services
BAM and BAM Lite
Introduction to Cash Management
Prerequisite check
Master Data set up
Bank statement processing
Manage cash operations
One Exposure from Operations
Introduction to BPC
What's new in this area?
Before and after S/4HANA comparison
Applications used
Components supported
How data flows
Authorizations
Planning modeler
Introduction to Fiori
Summary
Questions
Chapter 8: Overview of Implementation Scenarios
Technical requirements
Available implementation scenarios
New implementation
Duration of the new implementation
Approach in new implementation
Data migration
System conversion
How to plan a migration project?
Key performance indicators (KPIs) in migration
Landscape transformation
Benefits of landscape transformation
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[v]

Table of Contents
Characteristics of SAP S/4HANA landscape transformation projects
System landscape transformation (SLT)
Preconfigured solutions
Available consolidation scenarios
Migration of business units
Migration of selected applications (central finance)
Elements of central finance
Central finance replication model
Solution methodology – central finance
Summary
Questions
Chapter 9: Period End Closing in SAP S/4HANA
Technical requirements
Closing activities
Month-end closing
Year-end closing
Reporting with SAP S/4HANA
Financial statement versions
Reporting options in SAP S/4HANA
Closing Cockpit in SAP S/4HANA
Closing Cockpit usage scenarios
Closing Cockpit configuration
Creating a template
Creating tasks
Defining the Dependencies and Create Task Lists
Releasing the Task List
Checking dependencies
Executing dependencies
Process control
Summary
Questions
Chapter 10: Premigration Activities
Technical requirements
Preparation for migration
Prechecks in migration
Preparation and migration of customizing for General Ledger
Activating SAP Reference IMG
Checking and adopting Fiscal year variants
Migrating General Ledger customization
Defining settings for the Journal Entry Ledger
Defining ledger groups
Assigning accounting principles to the ledger group
Defining the ledger for controlling
Defining document types for posting to controlling
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[vi ]

Table of Contents
Defining document type mapping variant
Defining default values for posting in controlling
Defining the offsetting account-determination type
Defining the source ledger for the migration of balances
Executing consistency checks for General Ledger
Activating the business functions
Preparing and migrating customization of Asset Accounting
Preparing and migrating customization of controlling
Preparing and migrating the Material Ledger customization
Preparing and migrating the House Bank accounts customization
Preparing and migrating the Credit Management customization
Summary
Questions
Chapter 11: Migration Activities
Technical requirements
Data migration
Partition of Universal JE Line Items
Regenerating CDS views and field mapping
Analyzing transaction data and status display
Starting and monitoring data migration
Overview tab
Migration runs
Status of migration run
Control tab
Tables tab
Migration of cost elements
Technical check of transactional data
Material Ledger migration
Enrichment of data
Migration of line items
Migration of balances
Calculation of depreciation and total values
Migrating General Ledger allocations
How to do it?
Migrating house bank accounts
Migrating Credit Management
Migrating Credit Management Master Data and status display
Migrating Credit Management exposure and status display
Initializing Documented Credit Decisions (DCD) and status display
Reconciling Documented Credit Decisions (DCD)
Completing migration
Reconciling and comparing migrated data
Summary
Setting migration to complete
Questions
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[vii ]

Table of Contents
Chapter 12: Post-Migration Activities
Technical requirements
Activities after migration
Running reconciliation reports
Business process validation
Transferring application indexes and displaying the status
Filling due dates in FI documents and the display status
Filling offsetting accounts in FI documents
Enrichment of balance carryforward
Settings for enrichment of balance carryforward
Reconciling the balance with line items and displaying reconciliation status
Specifications for Balance Sheet and P&L accounts
Enriching balance carryforward based on line items
Manual activities for credit management
Completing a credit management migration for unmigrated customers
Deactivating the reconciliation ledger
After migration testing
Testing HANA-optimized reports
Testing reporting
Testing database usage
Testing intercompany reconciliation
Testing Universal Journal and the closing process
Summary
Questions
Chapter 13: Central Finance – a No-Disruption Approach
Technical requirements
An overview of SAP Central Finance
Understanding Central Finance
Key business benefits and use cases
Central Finance process use cases
Key limitations
Short-life master data
Fixed assets
Inventory
Logistics documents
Costing-based COPA
Document-splitting
Profit-center-only postings
Central Finance architecture
Source system
System Landscape Transformation
SAP Master Data Governance (MDG)
S/4HANA system
Application Interface Framework (AIF)
Central Finance interfaces
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[ viii ]

Table of Contents
Central Finance mapping
Initial load and real-time replication
System configuration 315
317
323
Source system 323
System Landscape Transformation (SLT) 332
Defining objects 336
Defining the initial load object 337
Defining the replication object 337
Activating the Initial Load and Replication Objects 338
Control Load/Replication using the SAP LT Replication Server 339
S/4HANA system 339
Configuring the SAP Application Interface Framework (AIF) 340
Clearing Functionality 350
Central Payments 352
Business benefits of Central Payment
Configuring Central Payment
Managing cost-based COPA in SAP Central Finance
Summary
Questions 353
353
356
359
359
Chapter 14: Greenfield Implementation
Technical requirements
Greenfield implementation
ASAP methodology 360
360
360
361
The key benefits of the ASAP methodology 361
Phases of the ASAP methodology
Agile ASAP 8 methodology
SAP Activate
Pillars of SAP Activate 361
363
364
365
SAP Best Practices 365
Guided configuration 365
Methodology 367
SAP Activate methodology's features 368
Activate methodology key characteristics 369
The Activate methodology structure 373
Governance, roles, and responsibilities
Activate journey – new implementation (cloud) 379
380
Activate journey – new implementation (premise)
Activate journey – system conversion
Differences between SAP Launch, ASAP, and SAP Activate
Summary
Questions 383
387
390
392
392
Chapter 15: The Near Zero Downtime (NZDT) Strategy
Technical requirements
The Near Zero Downtime strategy 393
393
393
[ix]

Table of Contents
Summary
Questions
Other Books You May Enjoy
395
395
396
Index 399
[x]

Preface
If you look on the internet, you will find that SAP is one of the blooming areas in
technology, and with the introduction of SAPS/4HANA, the processes and organizations
are going through major changes. Millions of jobs are available; however, the skill set is
limited as the product is new and is still evolving. The content is scattered across areas such
as logistics, Central Finance, changes with S/4HANA, Closing Cockpit, and migration steps.
You can find these areas in several books covered in several ways, so what is it that this
book offers that's different?
This book is the one-stop shop for all these areas. You will find an end-to-end overview of
the processes, changes, simplifications, deployment options, and configuration of all the
relevant areas, including, but not limited to, SLT, Central Finance, New Asset Accounting,
and Fiori tiles.
Who this book is for
This book will work as a guide to those who have SAP project experience and are looking
to learn more about SAPS/4HANA, such as functional consultants, integration experts,
project managers, design leads, and solution architects. Also, people who are new to SAP
S/4HANA can start with this book.
What this book covers
This books is purely focused on SAPS/4HANA innovations, and also gives a background
of how the process was handled before SAPS/4HANA within SAP itself. It covers the
following areas:
Chapter 1, An Overview of SAP HANA, S/4HANA, and Migration, helps you get into the
topic. You will understand the journey and path of innovation, starting from HANA and
then moving to S/4HANA. This will set the stage for the rest of the chapters.
Chapter 2, Migration to SAP HANA – Tools and the Project, is a purely technical chapter in
which the focus will be on understanding the migration to SAP HANA, the tools available,
the steps, and the effort required in terms of resources and time. Also, we will talk about a
sample project to impart practical understanding.

Preface
Chapter 3, SAP S/4HANA – Deployment Options, takes you through the available
deployment options—cloud, on premise, and the hybrid model, along with their key
features, benefits, and challenges.
Chapter 4, Impact of S/4HANA on the SAP General Ledger, purely focuses on changes to
General Ledger areas with the introduction of SAPS/4HANA. We will see the necessary
functionality changes as well as the configuration changes.
Chapter 5, Impact of S/4HANA on SAP Controlling and Profitability Analysis, purely looks at
changes to Controlling as well as COPA with the introduction of SAPS/4HANA. SAP
recommends that users use Account-based COPA with S/4HANA, and also covers the
benefits. We will also take a look at the necessary functionality changes as well as the
configuration changes.
Chapter 6, Impact of S/4HANA on SAP Asset Accounting, gives you a view of all the changes
done in the Asset accounting area with the introduction of new asset accounting. It will
involve the configuration as well as the functionality changes.
Chapter 7, S/4HANA New Functionalities – Cash Management, BPC, and Fiori UX, runs you
though the new functionalities introduced in S/4HANA, such as BAM, Credit Management,
and changes to BPC, and we will also learn what Fiori is all about and see how to create a
simple Fiori tile.
Chapter 8, Overview of Implementation Scenarios, discusses the available implementation
scenarios, which may be different for each customer, and also we will learn how to move
ahead based on the present customer situation.
Chapter 9, Period End Closing in SAP S/4HANA, is mainly dedicated to the closing features
as well as the closing cockpit. We will see how the closing cockpit introduced in SAP
S/4HANA 1709 is different from the cockpit of SAP ECC.
Chapter 10, Premigration Activities, helps you learn about the preparatory activities
involved in migration.
Chapter 11, Migration Activities, covers an end-to-end view of migration activities,
including configuration, which we have to do when we move from SAP ECC to SAP
S/4HANA.
Chapter 12, Post-Migration Activities, is all about the wind up activities necessary to
complete the migration. It involves some sanity checks as well as some reconciliations.
[2]

Preface
Chapter 13, Central Finance – a No-Disruption Approach, is a chapter dedicated to Central
Finance, one of the key areas in which organizations are investing and looking toward for
the future. All configurations, processes, and relevant aspects of central finance are covered
in this chapter.
Chapter 14, Greenfield Implementation, is the best way to learn about SAP activate in detail.
This chapter will guide through the methodology and how it differs from the previous SAP
implementation methodologies.
Chapter 15, The Near Zero Downtime (NZDT) Strategy, is a small chapter that guides the
readers through the core features of NZDT and explains how it can be used to reduce the
downtime during migration.
To get the most out of this book
In order to use this as the best method for learning, ensure that you understand the key
SAP terms, processes, and organization structure in SAP. Although it is not expected that
you should be aware of all SAP ECC configurations in advance, if you know them and have
previously used them in your projects, that's excellent.
When you are learning the configuration chapters, have the system ready (maybe DEMO
system) so that you can follow the instructions and get the correct results.
Download the color images
We also provide a PDF file that has color images of the screenshots/diagrams used in this
book. You can download it here: https://www.packtpub.com/sites/default/files/
downloads/MasteringSAPS4HANA1709StrategiesforImplementationandMigration_
ColorImages.pdf.
Conventions used
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example: "The tables are merged to the ACDOCA table with the header table BKPF.
FAGLFLEXA and some other New GL tables are now obsolete."
[3]

Preface
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example, words in menus or dialog boxes appear in the text like this. Here is an example:
"SPRO | Financial Supply Chain Management | Cash and Liquidity Management |
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Warnings or important notes appear like this.
Tips and tricks appear like this.
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General feedback: Email feedback@packtpub.com and mention the book title in the
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[4]

Preface
Reviews
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[5]

1
An Overview of SAP HANA,
S/4HANA, and Migration
The purpose of this chapter is to understand SAP HANA, which forms the base of learning
for SAPS/4HANA and will be discussed in subsequent chapters. SAP HANA is a database
management system (DBMS) based on in-memory technology. In SAP HANA, memory is
available to such an extent that storing data is not a constraint. This makes it different from
other available databases that have memory constraints, even though they have potential in
terms of hardware. SAP HANA optimizes memory access between cache and the
primary/main memory. In the present age, the volume of data is a big challenge for all
organizations, specifically finance organizations, as they have to store the data for longer
time due to audit requirements and, of course, for planning and forecasting purposes.

An Overview of SAP HANA, S/4HANA, and Migration Chapter 1
The basic concept of SAP HANA includes the following areas:
In-memory data
Optimization of in-memory data
Delta storage:
Technical requirements
For this chapter, the following are required:
SAP HANA Database 2.0
SAP ECC system with non-SAP database
SAP SLT system
Running RFC connections between systems
In-memory data ‒ a core to SAP HANA
If you have noticed the trend of computers and their core configuration, it should be
evident that there has been a drastic change over a period of time, let's say, in the last
decade. Prices have been moving around with a slight dip, and memory capacity has
increased drastically. From an enterprise server perspective, the capacity today is in
terabytes with a single enterprise-class server.
[7]

An Overview of SAP HANA, S/4HANA, and Migration Chapter 1
The hard disks are cheap and affordable and are at the lowest space in the consequential
structure, but the key to this entire process of in-memory data modeling is performance. In
the following figure, if we move from top to bottom, it shows a higher latency with lower
price, and if we move vice versa, it depicts a higher performance:
The main memory is normally directly accessible, and if we compare its access to that of the
hard disk, the speed is 100,000 times faster.
All traditional database management systems use the disk as a primary storage and the
main memory is used as just a buffer.
Optimization of in-memory data
SAP HANA stores data in a columnar format, which results in effective compression and
reduction in overall data size. Also, this resolves the problem of data flow between the
main memory and cache.
Data storage model
Normally, the data storage in databases is in a table format. A table is a data structure in
which the infor