Global organizations must submit financial statements according to multiple local accounting principles. They also provide financial statements according to a common accounting principle across all locations on a group level. Many customers already rely on the capabilities of ERP software from SAP to maintain multiple sets of books in parallel to help satisfy the various legal requirements of financial statement users. The release of SAP S/4HANA Cloud takes parallel accounting to the next level: It is available for new as well as existing SAP S/4HANA Cloud customers.
Based on the idea of the universal journal, which integrates different subledgers in one table, the new functionality offers universal support for parallel accounting standards which is no longer limited to general ledger accounting. It includes integrated areas such as overhead accounting, asset accounting, inventory accounting, production accounting and margin analysis.
Processes such as make to stock and manufacturing of assets are now enabled for parallel accounting and allow the representation of various accounting principles across the whole value flow. Business processes are valuated in parallel for each required accounting principle, thus reducing the need for adjustments to, say, inventory or asset values at period-end. Customers can also benefit from increased transparency and availability of financial data, and a significantly reduced total effort for implementation and configuration.
The simplified and harmonized architecture and posting logic that comes with universal parallel accounting is the foundation for further innovations to follow.