Dear,
Previous versions of SAP ECC and Bank Analyzer gave a preeminent importance to the Posting Key Figures over the GL-Accounts.
From the first SAP R3 release, the Costing Based Operating Concern of the Profitability Analysis module gave us a very flexible framework for building a complete multidimensional Profit and Loss analysis engine. The only difficulty is that the Costing Based Operating Concern is built on Key Figures which makes difficult its reconciliation with the Profit and Loss postings of the General Ledger which are built in GL-Accounts.
On the other hand, we could also use the Account Based Operating concern of the Profitability Analysis module, which provides a complete multidimensional Profit and Loss analysis engine built in GL-Accounts, fully reconcilable with the General Ledger Postings, but the reconciliation problem with the Costing Based Operating Concern remains.
In both cases, we are talking about non-financial related postings. Concepts like Fair Value or Risk-related Costs are very difficult to model in the Profitability Analysis Module of SAP ECC. For covering this gap, SAP developed something new.
The new concept was the SEM-Banking (Strategic Entreprise Management for Banks) module of SAP ECC (IS-Banking), which was the precursor of SAP Bank Analyzer, and the first tool capable of providing a Contract (or more exactly Position) based multi-dimensional Cost-Analysis framework for Banks. Again, SEM Banking was built on Key Figures (Costing Based Operating Concen), with the commented advantages in terms of flexibility and disadvantages in terms or reconciliation.
With Bank Analyzer, SAP solved the problem. In Bank Analyzer we don’t have a Cost Based “Operating Concern” and an Account Based “Operating Concern”, instead the Posting Key Figures and the GL-Accounts are integrated in the same structure (the RDL Result Type) and we can find both in the Financial Position Object.
Nevertheless, this improvement also brought some difficulties; in Bank Analyzer (before Smart-AFI) the Posting Key Figures and GL Accounts of the Accounting entries are not determined at the same time. The Posting Key Figures are determined first (from the Item Type of the BT or the Calculation Step), and later the GL-Accounts.
In fact, the accounting logic is technically configured in the Posting Key Figure (Key Figure Class) and there’s no configuration in the GL-Account, which in Bank Analyzer (before Smart-AFI) was merely the value of a Characteristic with no configuration.
As a consequence of this, it was technically possible to assign a GL-Account to a Posting Key Figure with a different accounting nature, generating serious inconsistencies on the Financial Statements of the Bank.
I’ve seen several clients with bad implementation of Bank Analyzer, with inconsistent Financial Statements, as a consequence of an incorrect configuration of the Posting Key Figures and GL-Accounts determination.
Bank Analyzer Smart-AFI has tackled the above problem simplifying the Accounting Logic Configuration. With Bank Analyzer Smart-AFI, the GL-Accounts are at the center of the Accounting Logic, and they are technically defined with the Accounting Role that they must play, reducing the risk of the inconsistent configurations mentioned above.
By the way, this is coherent with the new Accounting Logic of the Universal Journal of S4 HANA, where we don’t build the multidimensional Profit and Loss analysis engine with Cost Based or Account Based Operating Concerns. All the accounting entries are centrally posted in the Universal Journal, in the form of Coding Blocks and GL-Accounts.
As you can see, in Bank Analyzer Smart-AFI, the GL-Account has become a central pillar of the configuration, and consequently, the Chart of Accounts Optimization has become one of the most critical activities in a Bank Analyzer implementation.
Optimizing the Chart of Accounts has always been a key success factor in a Bank Analyzer implementation. Suboptimal definitions of the Chart of Accounts bring accounting systems difficult to maintain, and in some cases, inconsistent Financial Statements. Smart-AFI brings a new a more simplified accounting architecture. It’s the responsibility of the implementation team to take advantage of it.
Looking forward to read your opinions.
K. Regards,
Ferran.
www.capitency.com
Join the SAP Banking Group at: https://www.linkedin.com/groups/92860
Visit my SAP Banking Blog at: http://sapbank.blogspot.com/
Let's connect on Twitter: @FerranFrancesGi
Ferran.frances@capitency.com
Previous versions of SAP ECC and Bank Analyzer gave a preeminent importance to the Posting Key Figures over the GL-Accounts.
From the first SAP R3 release, the Costing Based Operating Concern of the Profitability Analysis module gave us a very flexible framework for building a complete multidimensional Profit and Loss analysis engine. The only difficulty is that the Costing Based Operating Concern is built on Key Figures which makes difficult its reconciliation with the Profit and Loss postings of the General Ledger which are built in GL-Accounts.
On the other hand, we could also use the Account Based Operating concern of the Profitability Analysis module, which provides a complete multidimensional Profit and Loss analysis engine built in GL-Accounts, fully reconcilable with the General Ledger Postings, but the reconciliation problem with the Costing Based Operating Concern remains.
In both cases, we are talking about non-financial related postings. Concepts like Fair Value or Risk-related Costs are very difficult to model in the Profitability Analysis Module of SAP ECC. For covering this gap, SAP developed something new.
The new concept was the SEM-Banking (Strategic Entreprise Management for Banks) module of SAP ECC (IS-Banking), which was the precursor of SAP Bank Analyzer, and the first tool capable of providing a Contract (or more exactly Position) based multi-dimensional Cost-Analysis framework for Banks. Again, SEM Banking was built on Key Figures (Costing Based Operating Concen), with the commented advantages in terms of flexibility and disadvantages in terms or reconciliation.
With Bank Analyzer, SAP solved the problem. In Bank Analyzer we don’t have a Cost Based “Operating Concern” and an Account Based “Operating Concern”, instead the Posting Key Figures and the GL-Accounts are integrated in the same structure (the RDL Result Type) and we can find both in the Financial Position Object.
Nevertheless, this improvement also brought some difficulties; in Bank Analyzer (before Smart-AFI) the Posting Key Figures and GL Accounts of the Accounting entries are not determined at the same time. The Posting Key Figures are determined first (from the Item Type of the BT or the Calculation Step), and later the GL-Accounts.
In fact, the accounting logic is technically configured in the Posting Key Figure (Key Figure Class) and there’s no configuration in the GL-Account, which in Bank Analyzer (before Smart-AFI) was merely the value of a Characteristic with no configuration.
As a consequence of this, it was technically possible to assign a GL-Account to a Posting Key Figure with a different accounting nature, generating serious inconsistencies on the Financial Statements of the Bank.
I’ve seen several clients with bad implementation of Bank Analyzer, with inconsistent Financial Statements, as a consequence of an incorrect configuration of the Posting Key Figures and GL-Accounts determination.
Bank Analyzer Smart-AFI has tackled the above problem simplifying the Accounting Logic Configuration. With Bank Analyzer Smart-AFI, the GL-Accounts are at the center of the Accounting Logic, and they are technically defined with the Accounting Role that they must play, reducing the risk of the inconsistent configurations mentioned above.
By the way, this is coherent with the new Accounting Logic of the Universal Journal of S4 HANA, where we don’t build the multidimensional Profit and Loss analysis engine with Cost Based or Account Based Operating Concerns. All the accounting entries are centrally posted in the Universal Journal, in the form of Coding Blocks and GL-Accounts.
As you can see, in Bank Analyzer Smart-AFI, the GL-Account has become a central pillar of the configuration, and consequently, the Chart of Accounts Optimization has become one of the most critical activities in a Bank Analyzer implementation.
Optimizing the Chart of Accounts has always been a key success factor in a Bank Analyzer implementation. Suboptimal definitions of the Chart of Accounts bring accounting systems difficult to maintain, and in some cases, inconsistent Financial Statements. Smart-AFI brings a new a more simplified accounting architecture. It’s the responsibility of the implementation team to take advantage of it.
Looking forward to read your opinions.
K. Regards,
Ferran.
www.capitency.com
Join the SAP Banking Group at: https://www.linkedin.com/groups/92860
Visit my SAP Banking Blog at: http://sapbank.blogspot.com/
Let's connect on Twitter: @FerranFrancesGi
Ferran.frances@capitency.com
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