SAP Finance

Recap: Key Highlights from SAP Sapphire 2025 for Finance Leaders

Recap: Key Highlights from SAP Sapphire 2025 for Finance Leaders

At SAP Sapphire 2025, one thing was clear: finance teams are leading the next wave of enterprise transformation.

✔️ From AI-powered automation in SAP S/4HANA to deeper planning integration in SAP Analytics Cloud
✔️ From real-time ESG reporting with the Green Ledger to strategic insights from global CFOs

The message was consistent — finance is evolving from record-keeping to value creation.

This recap covers the most important updates for finance professionals, including embedded AI, connected planning, and the technologies reshaping the CFO’s role.

Get Ready: Key Updates in SAP Analytics Cloud Q2 2025 for Finance Teams

Get Ready: Key Updates in SAP Analytics Cloud Q2 2025 for Finance Teams

SAP Analytics Cloud is leveling up in Q2 2025 — and finance teams are set to benefit the most. From tighter integration with SAP PaPM in Multi Actions to live connectivity with Google BigQuery, this release focuses on automation, insight, and speed.

This blog covers the top updates finance professionals need to know — including Smart Insights in optimized stories, Joule-powered natural language queries, and new ways to pin insights in Data Analyzer — all designed to supercharge planning, analysis, and decision-making.

Mastering ACDOCA: 7 Essential Universal Journal Insights for SAP S/4HANA Consultants (2025 Edition)

Mastering ACDOCA: 7 Essential Universal Journal Insights for SAP S/4HANA Consultants (2025 Edition)

In SAP S/4HANA Finance, the Universal Journal (ACDOCA) forms the core of financial and controlling data. This blog breaks down the key things every consultant needs to know — from Margin Analysis and document splitting to embedded analytics and custom field extensions.

Whether you're implementing, migrating, or optimizing, this guide covers the essentials of ACDOCA and how to use it effectively in 2025.

Cost Flows in SAP Controlling


One of the most misunderstood aspects in all of SAP is how to analyze production variances. This is partly because SAP’s method of Product Cost Controlling is different from other accounting software systems, in that production costs are passed through the P&L as well as the Balance Sheet. And also, because production activity (Labor, Machine Time, Overhead) is tracked using Secondary Cost Elements, which are not part of your typical Financial Statements. Even some of the most seasoned cost accountants are flummoxed with how the manufacturing information is represented in Financial and Management Accounting, and how to measure price and efficiency variances. To put it simply, Production Variance Analysis involves three steps:

Creating a standard cost estimate, which calculates the expected cost to manufacture an assembly.
Collecting the Actual manufacturing costs on a manufacturing order (production order/process order /product cost collector).
Calculating the Variance, which is the difference between:
actual costs: components, labor, overhead
actual credits: value of finished goods manufactured.

SAP Product Costing Controlling Configuration and Beyond

- Look into the design aspects that are jointly owned by CO, MM and PP teams. (e.g. Resource / Work Center and their Standard Value Keys, Formulae for Activity Types).
- Review options to add freight, other incidental costs in the standard cost estimates and track actuals (e.g. Costing Sheet, Additive Costs, User exit for material valuation, Accrual pricing conditions in Purchase Order, etc.)
- Understand how to investigate and rectify messages encountered during product costing
- Deep dive into movement types and account determination, analyze MM-FI accounting flow

Variance Analysis in SAP Controlling


One of the most misunderstood aspects in all of SAP is how to analyze production variances. This is partly because SAP’s method of Product Cost Controlling is different from other accounting software systems, in that production costs are passed through the P&L as well as the Balance Sheet. And also, because production activity (Labor, Machine Time, Overhead) is tracked using Secondary Cost Elements, which are not part of your typical Financial Statements. Even some of the most seasoned cost accountants are flummoxed with how the manufacturing information is represented in Financial and Management Accounting, and how to measure price and efficiency variances. To put it simply, Production Variance Analysis involves three steps:

Creating a standard cost estimate, which calculates the expected cost to manufacture an assembly.
Collecting the Actual manufacturing costs on a manufacturing order (production order/process order /product cost collector).
Calculating the Variance, which is the difference between:
actual costs: components, labor, overhead
actual credits: value of finished goods manufactured.

Gain better Visibility of Inventory Costs within your ERP System

In the standard ERP system (and even S/4HANA) it is difficult to find reports that give you a multidimensional view of your inventory costs. Many customers download the information to Microsoft Excel or use external reporting tools such as BI to do the analysis. There is nothing wrong with these options, but sometimes they lead to reconciliation errors (in the case of Excel) or realtime update issues (in the case of BI). With the Material Ledger Activated and by utilizing an enhanced report, there are several reporting options that will give you a more granular view of your inventory values.

Recording Stock-in-Transit in Accounting and Logistics Transactions

Stock-in-Transit can occur when goods transferred between two entities have left the sending entity, but ownership has not yet been transferred to the receiving entity. In traditional SAP the Stock-in-Transit of Inventory can be identified in Inventory Management reports, but this is not reflected in Accounting. With the Business Function LOG_MM_SIT, which is available in ECC (from Enhancement Pack 5) and also in S/4HANA (switched on by default), you can reflect the Stock-in-Transit in dedicated G/L Accounts.

Reorganizing Profit Centers in SAP


As of ECC 6 EHP 5, SAP rolled out a functionality which allows for reorganization of the profit center on the core SAP objects in the Logistics and Accounting functions.

This includes changing profit centers on Materials, Sales Orders, Cost Centers, Orders, Projects, AR, AP, and GL Open Items. With this functionality companies can update the core data in their SAP ERP systems to enable financial reporting which better aligns with how they manage their business today versus 10-15 years ago when they first implemented SAP. Learn how SPX Flow used this functionality to transform their financial reporting and enable full financial statements which align with a new management structure.

Universal Allocations in S/4HANA

Cost Allocation within the Overhead Cost Controlling module enables business users to periodically allocate posted amounts and quantities from sender cost objects to receiver cost objects based on a Cycle Structure. Some challenges exist with the current ECC functionality such as the ability of users to easily understand their allocation processes and the ability to simulate the results from allocations. Also, several other modules such as General Ledger, Profit Center Account, and Profitability Analysis also contain allocation functionality, but it is difficult to keep track of all the allocations, as they are not stored in the same area of the system. In S/4HANA 1809, Universal Allocations were introduced to handle most of these issues as well as provide new functionality.

Finance Reports in SAP S/4HANA (Embedded & Strategic Analytics in SAP S/4HANA)

The Embedded Analytical tools may be divided based on usage. CDS Views are the foundation for all analytical applications. Programmers create a virtual data model using CDS views. In comparison, the key user uses CDS views to create dashboards. "Custom Analytical Queries" will be used to develop customer queries. Finance and Logistics end users. Use reports and dashboards created by the key user. Functional users will use SAP Smart Business Cockpits with predefined content for different multidimensional reports across all business lines.

 Some multidimensional reports provide to end-users through SAP Fiori. They have flexible slice-and-dice navigation features. "Query Browser" will help end-users for analytic queries that allow them with flexible slice and dice reporting. "View Browser" is another tool to check the delivered CDS Views and Queries. These tools help the Functional team ( Finance, Logistics, ………… users) to get reports with no latency, no data duplication, excellent performance for all types of reports, Integration scenarios with SAP BW, and also Support for SAP ERP authorizations.

 1. Report Design Modeler — Apps

*See picture 1 labeled below  

The Report Design Modeler apps are a set of SAP Fiori apps that customers can use to create and manage Financial or Logistics or any other reports. When created an evaluation, we choose a tile to visualize the reports in the Publish Report app.

 *See picture 2 labeled below

You define this using the Configure Report Drill-Down app.

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Business knowledge helps to configure the drill-down views. Configure Report Drill-Down app is used by power users who can see data in Graphs IT administrative knowledge is needed to authorize users to get access to these reports

You may use this capability for all most all Finance reports like:

Analyze Actual Cash Flow, Liquidity Forecast, Budget Alerts, Contract Expiry, Aging Analysis,

Analyze Change Impact, Analyze Collections Success, Analyze Collections Volume, Analyze Credit Exposure, Analyze Open Credits, Analyze Overdue Items / Overdue Item Analysis, Analyze Payment Locks, Analyze Payment Run Exceptions, Cash Discount Utilization, Cash Discount Forecast, Cash Collection Tracker - Accounts Receivable, Cash Position, Analyze Returns, Operational Supplier Evaluation / Supplier Evaluation, Payment Statistics, Credit Limit Utilization, Days Payable Outstanding Analysis,

Days Sales Outstanding, Detect MRP Situations, Future Receivables, Future Payables……….Etc.

2. Overview of View Browser and Query Browser

The View Browser

View browser allows Power users from all business lines to explore thousands of VDM views without any technical skills. So, it helps Business Users to draw meaningful reports for their business requirements. You can find suitable views based on your need and display its content for analytical queries in Design Studio. Using View Browser, we can explore standard Core Data Service views (Composite and Consumption) and create developers.

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The Query Browser

The Query Browser is a default Design Studio app that is available in the standard SAP Fiori Library.

The Query Browser is not part of the SAP Fiori launchpad's default view and is added to the My Home group. The Query Browser will show consumption views that were annotated as Analytical Query and therefore act as a source for KPIs. Users can select an Analytical Query and perform on-demand reporting on it.

The Query Browser is a default Design Studio app available in the standard SAP Fiori Library. No additional installation is required.

In the Query Browser, you can see many analytical queries.

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Business catalog SAP_CA_BC_VDM is to assigned to the user.

3.   Custom Analytical Queries app

For creating Financial or Logistics or a report that is needed from any business line, from scratch, SAP provides the built-in, easy-to-use, Custom Analytical Queries app. It is aimed at key users, rather than end-users. An advantage of it is that you don't have to understand the query language to build a query.

 *See picture 6 labeled below

 Required Business Role: SAP_BR_ANALYTICS_SPECIALIST

Required Technical Catalog: SAP_BASIS_TCR_T

Activated ICF node: ANA_QDESIGN_MAN (ICF path /sap/bc/ui5_ui5/sap/ana_qdesign_man)

 Example: Power-user wants a report from Cost Center Module.

Customers can create a Custom Analytical Query to report in Cost Center Module on Actual Vs. Plan data. We can also have a drill-down facility

 *See picture 7 labeled below

4.   The Report Designer Modeling apps

The Report Designer Modeling apps are a set of SAP Fiori apps that a key user uses to define or manage reports.

*See picture 8 labeled below  

These Reports are based on the Analytical List Page Smart Template.

Customers can Create Reports using create report app based on measures of the related Analytical Query.

Just enter the relevant data source details such as the Core Data Services (CDS) view, the OData service path, and the entity set that corresponds to the CDS view.

 *See picture 9 labeled below

Choose Activate and Add Evaluation.

5.   The KPI designer - Smart Business Framework

SAP Fiori Smart Business helps customers create their analytical apps based on Key Performance Indicators (KPIs).

 *See picture 10 labeled below

Smart Business Cockpits can be personalized. They bring analytics into the business process when the user needs it. Customers can develop an Analytical Query to analyze business data using the KPI Designer tool.

You can create a KPI, in the following order:

·   Create KPI

·   Create Evaluation

·   Create Tile

·   Configure Drill-Down

·   Manage KPI Associations (optional)

6. SAP Analytics UIs

SAP Analysis for Microsoft Office is a Microsoft Office Add-In that allows multidimensional Analysis When you install Analysis for Microsoft Office on your local machine; you can connect directly to the following:

SAP Business Warehouse (BW) system

SAP Business Objects Business Intelligence (BI) Platform

SAP HANA

Using Analysis for Office, you can also access Core Data Services view based queries and view the report.

7. SAP delivers several standard reports.

You can find these reports at various locations under the Information System in the SAP Easy Access menu.

 *See picture 11 labeled below

Almost every application in the system has an Information System menu option, which contains the reports predefined by SAP. You can also display thru SE43.

 *See picture 12 labeled below

You can search standard reports in SE38, by the letters they contain. For example,

Vendor related reports can are found by RFK*

Customer-related Reports can be searched by letter RFD*

General ledger RFS*

Document Reports: RFB*

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Asset Accounting in SAP S/4HANA

SAP S/4HANA has brought about a number of improvements in Asset Accounting. There is a tighter integration with Finance, and postings are now real-time, updating all ledgers at the same time as the asset, allowing a smoother period end and an easier migration.

This is a new webcast, to update the original “Ask a Fixer: What You Should Know About New Asset Accounting with SAP S/4HANA” created in 2017. It explains the previous material in a new way, and in addition, covers new transactions for closing and migration. It also introduces the new Fiori “experience”, which brings additional functionality such as the asset accounting overview and embedded analytics.

Executing the Steps for Migrating to S/4HANA Finance

One of the key tasks when migrating to S/4HANA is to convert your Financial data from the old tables in ECC to the new tables (particularly the Universal journal) in S/4HANA. This process usually takes place after the technical upgrade from ECC to S/4 and is done during a downtime period. It involves a series of transactional steps that are executed in sequence, with progression to the next step only possible when a previous step has been executed successfully or confirmed. Several iterations of a Finance Migration need to be done in a Sandbox (or test) system in order to resolve any issues that arise. This will therefore make the eventual Production migration smoother and easier to accomplish during the downtime window. It is therefore important to know what steps are carried out and the types of errors that could occur.