News in accounting: Important changes and improvements in SAP S/4HANA Release 2502

The SAP S/4HANA Cloud Public Edition 2502 release brings with it many exciting new features. We would like to present some of these here and discuss how the new functionalities can be used and what added value they bring to the consolidation system.

New balance validation process

The most significant innovation is the introduction of a new balance validation process, which replaces the previous process. To be able to use the new functionality, the "Toggle for FE of the Balance Validation" (FINCS_BV_ADAPTATION) function must be activated in the "Activate Features" configuration activity. Migration to the new process takes place when the "Assign rule group for balance validation" app is used for the first time.

The new process (FIN-CS-BV - Balance Validation application component) has the following key new features:

• Validation of data in accounting (table ACDOCA) and not only in group reporting (table ACDOCU)
• New operands: Closing balance for previous year, YTD/QTD amount and the QTD amount
• Hierarchical structuring of rules within rule groups
• Reuse of rule subgroups for the definition of new rule groups
• Use of selections when assigning units to rule groups
• Adaptation of the authorization concept
• Handling of exceptions during the validation run
• Performance has been optimized and memory consumption has been relatively improved

The main change is that data from accounting can now be validated directly. This shift in data validation speeds up the consolidation process considerably and offers significant added value. This makes it easier to assign responsibility for data quality to Accounting without the need for an additional step via Group Accounting.

Figure 1: Configuration activity "Define balance validation measures"

The creation of validation rules has essentially not changed. The familiar functionalities are still available: These include the use of groupings, tolerances, control levels, the processing of missing data and the creation of rule expressions. The functions for creating composite rules and the useful import/export function for rules and rule groups also remain unchanged. What is new, however, is the option of assigning selections of consolidation units to rules instead of individual units.

Figure 2: Assigning rule groups to validation measures - selections of units can be assigned

The migration of validation rules is extremely easy. It is sufficient to copy the existing measure groups and add new validation measures. The measure groups are then assigned to the monitors. This enables a one-to-one migration of the rules and the use of the new balance validation process. However, it is advisable to review the rules to determine whether improved rules can be implemented using the new functionalities. The scenarios already mentioned are particularly relevant here.

Changes in data collection

In the "Release comprehensive journal" action, it is now possible to integrate data from the previous period with the options "Previous periods - Complete data" and "Previous periods - Delta" from accounting. This function is particularly useful as closed periods no longer need to be opened in the consolidation. Instead, late postings can simply be transferred to the new period. To differentiate between late and current postings, late postings are transferred with document type 0I and current data with document type 0F.

In addition, the user-friendliness of data entry has been improved. Previously, files could only be uploaded via the data monitor as part of the "Data entry via flexible upload" measure. With the new release, an independent app called "Import reporting data" is now available. An MS Excel template is also provided, which makes the work much easier, in contrast to the .csv or .txt files previously used.

Figure 3 "Import reporting data" app with the option to download a template

To reduce the volume of data, the settings for aggregating the allocation reference have been optimized both in the balance carryforward and when releasing data. The allocation reference contains important transaction information, such as invoice numbers as billing criteria. The transfer of such information from one financial year to the next or from accounting to the consolidated financial statements often leads to the generation of large amounts of data.

For this reason, the "Aggregate on carryforward" and "Aggregate data on release" checkboxes for the "Assignment reference" field in the "Define consolidation master data fields" configuration activity are activated by default for new customers from Release 2502. Everything remains unchanged for existing customers, but please note that the decision to aggregate cannot be reversed.

Figure 4: Configuration step "Define consolidation master data fields"

Another change in data entry concerns the expansion of the "Post group posting documents" app. Vouchers can now be changed by automatically reversing the selected voucher. At the same time, a copy of the document is created to document the changes made.

Figure 5: "Post group posting vouchers" app with the new voucher change functionality

As of Release 2502, the new feature "No deletion of obsolete reversal documents when carrying forward balances" (FINCS_BCF_STOP_REV_DELETION) is available and must be activated. Once activated, obsolete reversal documents are no longer deleted during the balance carryforward, but carried forward to the next financial year. The fields "Reversal year" and "Original document number" are deleted and the time stamp is adjusted.

Master data changes

The new release also brings improvements in the maintenance of master data. The "Import consolidation master data" app now allows you to upload master data that could previously only be uploaded via the "Import master data for consolidation fields" app.

There is also a new feature in the "Define items" app: A change log for master data is now displayed here, which enables better traceability.

Figure 6: Change log for items in the "Define items" app

Additional fields have been introduced for the public sector (partner funds) and for recording greenhouse gas emissions (data quality characteristics, energy classification, energy mix and energy source determination type). These fields can be edited in the configuration step "Define consolidation master data fields" and can be called up in various apps for data analyses and master data maintenance.

In addition, new hierarchy types for consolidation have been made available in the "Manage consolidation hierarchies" app: Billing type, distribution channel, division, industry, plant, product group and sales district. When using these new hierarchy types, the corresponding authorizations must also be adjusted. Another change in the app concerns the time dependency of the "consolidation material group" hierarchy.

It is also possible to aggregate additional master data fields during the execution of the transaction-based consolidation of investments task. To do this, the new checkbox "Entry permitted" must be activated under the field property "Aggregate for transaction-based consolidation of investments" in the configuration activity "Define consolidation master data fields". This feature is only relevant for customers who were set up before SAP S/4HANA Cloud Public Edition 2402, as transaction-based consolidation of investments is no longer possible after this date.

Discontinued and deleted apps

As already mentioned in the context of the new balance validation process, the entire bundle of validation apps has been discontinued. In addition, the following apps are also affected in the consolidation process:

• Balance carried forward (CXS1)
• Calculation of retained earnings (CXCL)
• Currency translation (CX40)
• Validation of totals data (CXV1)

In future, the consolidation steps are to be started from the data monitor instead of individual apps.

The "Define threshold values for group reconciliation" app has been deleted. Instead, it is recommended to switch to the intercompany reconciliation process.

In addition, the apps "Consolidation groups - Create and change" and "Consolidation groups - Display" have been discontinued. The new replacement app is entitled "Define consolidation groups".

Further changes

From Release 2502, you have the option of integrating SAP Green Ledger, which enables you to record and take into account sustainability data for your company. SAP Green Ledger is a standalone application based on master and financial data from integrated business systems. Detailed instructions on how to integrate SAP Green Ledger into SAP S/4HANA Cloud Public Edition are available on the SAP website.

The new release also brings changes to the review booklet, which now offers a group view of accounting. This allows accounting data to be analyzed and validated in Group reporting. To be able to use this new function, the toggle feature for "Group view of accounting - review booklet application" (FIN_CS_GVA_RB) must be activated.

Function comparison

This table provides a clear overview of the main differences between the previous version and the new version 2502 of SAP S/4HANA.

Please contact us at any time for a detailed exchange.