This post provides an overview of changes in S/4 HANA from the Joint Venture Accounting (JVA) perspective. S/4 HANA requires new asset accounting, customer vendor integration and the new GL. The prerequisite details can be found in my previous post "Getting Ready for S/4 HANA". This post reviews the following
Possible impact in JVA due to Finance simplifications
JVA and new GL Integration from S/4 perspective
Impact in JVA due to Asset Accounting changes
Planning and Analytics
1. Possible impact in JVA due to Finance simplifications
There are many changes that are done in simplifications can either have a direct or indirect impact on JVA. Following are some of them.
Master data maintenance. I.e. Customer Vendor Integration (CVI). If you have separate teams for maintaining different master data sections, this is an opportunity to explore the new possibilities that S/4 brings to the table.
Parallel Accounting options in S/4 comparing to the older versions of SAP ERP systems
New Asset Accounting is required in S/4 and the possible impact should also be analyzed. For example the AM integration with JVA.
Universal Journal Entry changes and possible impacts on the reporting and reconciliation between JVA and GL
Third party tools that are integrated with JVA in enterprise system landscape
The user interfaces changes also need to be analyzed and a clear strategy should be planned before the project
2. JVA and New GL Integration
JVA and New GL Integration (business function JVA_GL_INTEGRATION) provides the possibility to reconcile data between new GL and JVA at venture, equity group and recovery indicator (RI) level. Implementing this business function provides document splitting at venture, equity group and recovery indicator level in New-GL. With this function, trail balance at venture, equity group and RI are possible through transaction FGI3,
If new GL JVA integration is active, the JVA attributes are updated in Universal Journal Entry and reporting is possible using the new Universal Journal Entry table ACDOCA. If the JVA is active without the GL integration, reporting can still be based on JVA ledgers. In this case, the JVA tables JVT01 and JVS01 are populated.
3. Asset Accounting Changes
Estimated Book Costs (EBC) and Current Replacement Prices (CRP)
Sometimes it is necessary to compare Estimated Book Costs (EBC) with Current Replacement Prices (CRP) to remove asset from operators books and bill the partners at current price. The classic AA integrated with JVA provides automated process to compare EBC and CRP. This is no longer supported in S/4. SAP is recommending standard revaluation procedures to cover specific revaluation requirements.
The following methods of asset transfers are no longer supported in S/4 HANA.
Reverse AM/MM Transfer Document (GJT0)
JV Transfer Asset to WIP (GJT1)
JV Transfer Asset to Asset (GJT2)
JV Transfer Asset Retirement (GJT3)
JV Transfer Asset Sale (GJT4)
JV Transfer WIP to WIP (GJT5)
JV Transfer WIP to Asset (GJT6)
Instead, the following is recommended
Transfer of actual costs with subsequent settlement to AuC and the final asset instead
For Intra-company asset transfer use ABUMN
For Cross-company asset transfer use ABT1N
For asset sale use F-92
IMG menu paths are also changed. There is a dedicated node called Asset Management for JVA and a separate node named MM transfers
4. Planning and Analytics
In S/4 HANA, the BPC component (Integrated Business Planning for Finance, IBPF) is installed as an add on within S/4 itself. This brings lot of new possibilities to explore. No need for ETL processes and the latency that it brings in reporting. With SAP S/4 HANA Transactional and Analytical needs are catered within the same system. Along with CDS, HANA views and real time reporting without the need for complex ETLs openup lot of new possibilities.
The planning and variance analysis can be done at real time in S/4. Planning can be done at line item level detail and this brings lot of new possibilities in planning. The new planning framework also supports the operational planning at a very detail level. S/4 migration should not be looked at as a system upgrade, rather it should be looked at as a digital transformation across the system landscapes and the business processes.