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Expertise in Finance, Accounting & IT
In many companies, the month-end and year-end closing still looks surprisingly analog today: Excel sheets sent back and forth via email, multiple versions of the same file, manual to-do lists, and constant questions like “How far along are you?”
The result: high coordination effort, lack of transparency on the status of individual tasks, and an increased risk of errors – especially in international corporations with many entities.
This is exactly where SAP Advanced Financial Closing (AFC) comes in. The cloud solution was developed by SAP to standardize, automate, and make the financial closing process transparent across all units, systems, and countries.
With AFC, all closing tasks are consolidated in a central closing calendar.
Instead of decentralized Excel sheets, there is a shared, system-supported overview:
On this basis, group-wide templates can be created and rolled out to all entities. This makes the closing process not only more efficient but also more audit-proof and consistent.
Each task in the closing calendar is assigned to a responsible person – including start and end date, priority, and status. Through workflows and notifications, AFC ensures that:
This not only reduces email ping-pong but also creates clear governance in the closing process. Auditors receive traceable documentation at the push of a button showing who completed which task and when.
A key added value of SAP AFC lies in real-time monitoring of the closing process. Instead of collecting status reports manually, finance and closing teams receive:
This allows bottlenecks to be identified early and addressed proactively – a crucial factor when the closing process becomes time-critical.
AFC is designed as a cloud extension (Software as a Service) for SAP S/4HANA. Typical benefits in combination with S/4HANA include:
This allows AFC to integrate seamlessly into a modern finance transformation roadmap and supports companies on the path to a digitized, accelerated closing process.
Companies that implement SAP AFC typically report:
AFC demonstrates its full strengths especially in corporations with many company codes, different time zones, and complex intercompany dependencies.
The manually driven month-end closing with Excel sheets and email chains is becoming obsolete in an increasingly digital financial world. With SAP Advanced Financial Closing, companies gain a tool to:
Anyone looking to accelerate their closing, reduce risks, and simultaneously meet the requirements of auditors and regulators will, in the long term, not be able to do without a closing tool like AFC.
If you want to assess how well your current closing process is prepared for the use of SAP AFC or which steps would be sensible for an implementation, we are happy to support you with an individual analysis.
Learn more about the SAP S/4HANA transformation here
A SAP S/4HANA Brownfield Migration (Also System Conversion Migrating from SAP ECC to S/4HANA is considered a fast track to the S/4 world: processes largely remain the same and historical data is migrated. This is precisely why brownfield migrations are often planned as a "technical upgrade".
In practice, however, a conversion more than technologyIt touches the core of Finance, the Data quality, Custom Code, Integrations, permissions and the stability of the Monthly closingThose who address these issues early and in a structured manner reduce test and go times.Live-Risks clearly identified – and ensures clean reporting, stable financial statements and better performance.
Brownfield is a good fit if:
The most common stumbling blocks:
Success principle:
Brownfield is fast – when Finance risks, data quality and custom code früher translated into a clear procedure and a robust testing strategy.
At a Brownfield Migration it is about the System Conversion of an existing SAP ECC system SAP S / 4 HANAIn contrast to Greenfield, typically Customizing, master data and transaction history largely adopted.Advantages: Faster implementation, continuity, less process redesign
Disadvantages: Historical baggage and inconsistencies are also carried over – and often lead to problems in S/4HANA that were previously “hidden”.
In many ECC systems, problems have developed over the years. Workarounds, special cases and inconsistent master data It's established. Operationally, it worked because departments adapted.
However, in S/4HANA, they often come into play stricter consistency logics, new tests and a more transparent data model (e.g. Universal JournalA conversion therefore acts like a X-ray machineErrors suddenly become visible in integrated testing, voting, or month-end closing.
Typical symptoms in the project:
Best Practice: Data quality should not be addressed only "in tests", but planned early on as a separate work package (ownership, rules, measures, tracking).
A particularly typical cluster of problems in brownfield projects are: historical FI-AA dataSystems are often "carried along" for years due to organizational changes, system adjustments, or previous migrations. This results in, among other things:
In S/4HANA, this can be done quickly. depreciation runs, in the ClosingWherein Audit requirements or become noticeable during FI/CO reconciliations.
Archiving as a lever: less volume, less complexity
A Archiving project Before conversion, it can be beneficial if the data volume is high or the historical data is unnecessarily complex. Less data often means:
Another critical point is the Financial architecture in the initial system – especially in historically grown NewGL and Ledger setups. Common starting points:
This makes a conversion risky because success isn't just "technical." What's crucial is whether, after Go-Live:
Suggestion: Analyze, document, and integrate ledger/valuation logic early on. clear target state to convert – before the conversion exacerbates the issues.
Brownfield is often sold as a "minimal change" – but Z-Developments are often the main lever for risk and budget. ECC landscapes frequently include:
In S/4HANA, data models and access paths change. As a result, even a small dependency can break processes or degrade performance.
Practical rule: Don't "check everything," but prioritize early:
Many brownfield projects lose time because testing is planned too late or in a poorly structured way. Even if processes "remain the same," system behavior can change – especially in:
A robust testing strategy Therefore, it is not an add-on, but a prerequisite for a stable Go system.LiveAnd the cutover must be realistic: quality is not created through speed, but through stable critical processes.
Users of Brownfield will also notice changes: FlowersRoles, search, fields, navigation, user guidance. If communication only says "everything stays the same," then after Go-Live unnecessary friction.
Lean enablement approach:
1) Finance & Data (before build/test)
2) Technology & Custom Code
3) Test & Cutover
4) Adoption & Operation
A SAP S/4HANA Brownfield Migration This is a strong approach when speed, consistency, and the use of historical data are important. However, its success depends on whether typical risks are mitigated. defused early Data quality is the core, FI-AA Contaminated Sites are a common source of problems, and Ledger/NewGL logic It must first be thoroughly understood and brought into a target state. In addition, Custom Code and Integrations as a "quiet" showstopper.
Those who prepare these topics in a structured manner and combine them with a robust testing and cutover logic achieve a stable system conversion – and an S/4HANA foundation that truly works in operation.
This article highlights the improvements in SAP S/4HANA 2025 that simplify financial planning and analysis processes. The focus is on enabling better reporting, increased automation, and enhanced capabilities for developers, while gradually phasing out outdated tools. These updates help finance teams and developers work more efficiently and accurately.
Optimizes the processing and reporting of organizational changes in 2025.
| Other specifications | Details |
| Managing organizational changes (F4567) | New one-step option for implementing organizational changes. |
| Import of objects (F5487) | New feature for importing spreadsheets. |
| Organizational reports (F4868, F7047) | New hierarchical and list-based reports on the impact on master data. |
| CDS views for organizational changes | New views for detailed analysis of profit centers and segments. |
(1) Improvements in accounting for banks and changes to balance sheet validation
➔ Improvements increase user-friendliness, the clarity of reporting, and control over the processes for checking account balances.
| Other specifications | Details |
| Average daily stock levels | New calculation of the average balances of the previous month via GADBKFC. |
| Multi-currency accounting | New selection of depreciation areas for MCA reclassification/revaluation. |
| Improvements in balance validation | New visualization, up to 6 grouping fields, improved handling of comments. |
(2) AI-assisted journal upload
➔ AI integration optimizes journal uploads, reduces manual effort, and improves compliance and traceability.
| Other specifications | Details |
| Overview of AI-assisted uploads | New AI-generated suggestions for booking entries with mass editing. |
| Approval workflow | New roles and integration into the workflow for upload approvals. |
| Policy & Protocol Management | New PDF upload for booking policies, AI evaluation logs, improved tracking. |
| Changes to buttons/scenarios | Buttons repositioned; old intelligent scenario discontinued. |
➔ Improves the consistency of bookings and the accuracy of depreciation.
| Other specifications | Details |
| Reverse booking logic | Delta entries have been replaced by reversal entries; migration is required. |
| Depreciation calculation | Avoidance of small differences; calculation in one segment. |
| BAdI FAA_DC_CUSTOMER | New methods for reviewing investment support and determining the transaction date. |
➔ Improves the accuracy and flexibility of asset depreciation calculations.
| Other specifications | Details |
| Depreciation calculation – automatic avoidance of small differences | Prevents minor rounding differences at the end of the year; calculation is now performed in a single time segment. |
| BAdI FAA_DC_CUSTOMER | New methods for reviewing investment support and determining the 5 transaction days for depreciation; existing Investments may require reassessment. |
➔ Optimizes and automates group reporting processes, improves validation and increases flexibility in consolidations.
| Other specifications | Details |
| Average daily stock levels | Calculates the average balances of the previous month (monthly/annually). |
| Automatic bookings | Automated group postings for consolidation units/pairs. |
| Customizing for group reports | Adds industry-specific fields, breakdowns, master data fields, and validation tasks. |
| Debit/Credit Indicator in Manual Journals | Displays balances across currencies without a sign. |
| Workflow: Initiator cannot approve | The workflow initiator cannot approve their own entries. |
| Substitution/Validation: New amount fields | Adds new fields for validation/substitution in local, group, and transaction currencies. |
| COI control panels & pre-installed rules | Automates the collection of control data for activity-based consolidation. |
| Activity-based consolidation: Changing the parent element | Automatically adjusts entries when the parent entity changes. |
| Activity-based consolidation: Dividend payout | Automates the elimination of intra-group dividends and adjustments for NCI. |
| Pre-filling global parameters in job templates | Job templates are pre-filled with global parameters (which can be changed). |
| Import of reported data | Imports Excel-based data into group reporting. |
| Create totals for missing dimension values | Takes missing dimensions into account; calculates deltas without changing the totals. |
| Improvements in document item validation | Improved validation, multiple tasks per group, restriction of the data range. |
| Group journal entries: Alternative option | Enables the reversal or modification of group journal entries via workflow. |
| Alignment function: Aggregation & product help | Aggregates data during alignment; displays processed/adjusted fields. |
| Flexible upload parameter change | Improved upload mode; fewer restrictions when using multiple versions. |
| Removing task categories from "Define task" | Cleans up old categories; replaced by specialized customizing activities. |
➔ Improves replication, error handling, reporting, and the integration of modern frameworks for faster and more reliable central finance processes.
| Other specifications | Details |
| Co-production order as target object | Enables the mapping of production/process orders to CO production orders in replication. |
| Optimized error handling with AIF & ISM | Integrates AIF with AI-powered ISM to automatically detect errors and retrieve solutions. |
| Automatic creation of SLT staging tables | Embedded SLT can now automatically create staging tables for third-party interfaces. |
| AVL Version 2 (Accounting View of Logistics) | Moves AVL into the RAP framework for better performance, error handling, and reduced manual configuration effort. |
| Readiness check tool for AVL v2 | Tool for checking system readiness for the AVL v2 transformation. |
| Statutory reporting: Country-specific | Enables country-specific statutory reporting in Central Finance (e.g., Argentina, Indonesia, Romania, Singapore). |
| Centralized payment activation with flexible options | Enables flexible activation for external vendor/customer postings and intra-group transactions. |
| Interface to Management Accounting | Online replication of CO postings (including CO-PA) to Central Finance, supports cancellations and cross-group postings. |
| Central segment reporting | Converts profitability segments from service documents into actual cost objects in Central Finance. |
➔ Optimizes internal leasing processes, offers detailed financial auditing functions and improves portfolio cost analysis.
| Other specifications | Details |
| Intercompany leasing processes | Supports lease-in and lease-out processes between companies; manages contracts, periodic bookings and valuations. |
| New usage categories | Adds four new usage types for intercompany scenarios (usable and rentable properties, with/without portfolio structure). |
| Review booklet for leasing and real estate accounting | Aggregates portfolio costs in a review booklet; compares planned and actual costs; adaptable to user needs. |
Learn more about the SAP S/4HANA transformation here.
Our SAP Document & Reporting Compliance (DRC) Companies receive an integrated platform to meet legal requirements in the areas of invoicing, tax reporting and notifications to authorities. centralized, automated and audit-proof to implement.
SAP DRC is more than a compliance tool – it is a strategic platform that helps companies digitize and streamline their financial and reporting processes and implement legal requirements globally and in a country-specific manner.
SAP DRC's new features take efficiency, automation, and compliance to a new level – a true game changer for modern finance organizations. We support you in optimally integrating DRC into your SAP landscape and effectively designing your digital reporting processes.
