- SAP Managed Tags
Navigating the Future of Finance with SAP Universal Parallel Accounting and Advanced Valuation settings
Motivation
With Universal Parallel Accounting, you can benefit from the flexibility of the parallel ledgers not only in General Ledger Accounting but also in various subledgers.
Finance with SAP Universal Parallel Accounting
The landscape of global finance is becoming increasingly complex. With multinational operations, evolving accounting standards, and growing regulatory scrutiny, organizations need accounting systems that are not only compliant but also agile and forward-thinking. Enter SAP Universal Parallel Accounting (UPA)—a game-changer in the world of enterprise finance.
What Is SAP Universal Parallel Accounting?
SAP Universal Parallel Accounting is a transformative approach in SAP S/4HANA that enables organizations to manage financial accounting across multiple ledgers in real time. Unlike traditional systems that relied heavily on period-end reconciliations and complex mappings, UPA allows for seamless and simultaneous financial postings across various accounting principles—whether local GAAP, IFRS, or other statutory requirements.
Why It Matters
In the past, parallel accounting was often handled through workarounds like additional ledgers, complex cost object adjustments, and reconciliation processes that drained resources and introduced risk. UPA eliminates these inefficiencies by offering:
- Ledger-specific postings across finance and controlling modules.
- Real-time transparency for each valuation method or accounting principle.
- Harmonized data models across Financial Accounting (FI), Controlling (CO), Asset Accounting (AA), and Material Ledger (ML).
- Enhanced audit readiness and regulatory compliance.
Key Benefits for CFOs and Finance Teams
- Improved Accuracy and Compliance: Multiple GAAPs can be maintained natively and consistently across processes, reducing manual adjustments and the risk of errors.
- Faster Close Cycles: With real-time, parallel postings, financial closing becomes faster and more reliable.
- Scalable Global Operations: UPA supports growth by enabling localized compliance without the need for heavily customized solutions.
- Strategic Decision-Making: With a clearer, more timely view of financials across dimensions, leaders can make informed, strategic decisions.
Considerations for Implementation
Implementing SAP Universal Parallel Accounting requires careful planning and a clear understanding of its implications across your organization:
- System Readiness: Ensure your SAP S/4HANA version supports UPA (2022 or later is recommended).
- Data Migration and Cleansing: Aligning your data model with UPA requirements may require restructuring or cleansing legacy data.
- Training and Change Management: Teams must understand how UPA changes day-to-day processes and reporting.
- Project Governance: Engage finance, IT, and compliance stakeholders early for a smooth rollout.
For more details , refer to :
Universal Parallel Accounting in SAP S/4HANA - SAP Community
Activation of Universal Parallel Accounting
3265275 - Universal Parallel Accounting: FAQ
Advanced Valuation in General Ledger (with Universal Parallel Accounting )
Pre-requisites :
Assign Financial Statement Versions to Accounting Principles
Short Text
In this configuration activity you assign operational charts of accounts and financial statement versions to accounting principles.
Use
With this assignment you determine the accounts to which the gains and losses of the foreign currency valuation are posted.
Caution
You can only assign operational charts of accounts in this configuration step.
Define Semantic Tags for Financial Statement Versions
Short Text
Define semantic tags for your financial statement versions.
Use
Pre-delivered semantic tags are used in reports or KPIs defined by SAP. These pre-delivered tags cannot be changed or deleted, otherwise the reports and KPIs would no longer work.
Customers can make use of these predelivered tags in their own reports and KPIs.
Standard settings
The following predelivered tags are used in the Event-Based Revenue Recognition app or Cash Flow Statement app. These tags define the KPIs shown in the app.
Ensure that the tags are assigned to the correct nodes in the financial statement version, otherwise the app will show incorrect values.
Semantic Tag Name |
| Semantic Tag Group | Semantic Tag |
Accrued Revenue |
| BS | ACR_REV |
Actual Cost |
| IS | ACT_COST |
COS Adjustments |
| IS | ADJ_COST |
Revenue Adjustments |
| IS | ADJ_REV |
Billed Revenue |
| IS | BILL_REV |
Deferred Revenue |
| BS | DEF_REV |
Recognized COS |
| IS | RECO_COST |
Recognized Revenue |
| IS | RECO_REV |
Recognized Margin |
| IS | REC_MARGIN |
Accrued Cost |
| BS | ACR_COST |
Deferred Cost |
| BS | DEF_COST |
Reserves for Anticipated Sales Deductions |
| BS | RES_MASD |
Reserves for Imminent Loss |
| BS | RES_MIL |
Reserves for Unrealized Costs |
| BS | RES_MUC |
Increase (Decrease) in Long-term Investments |
| BS | CHGLTINV |
Increase (Decrease) in Accounts Receivable (Net) |
| BS | ACCREC |
Increase (Decrease) in Accounts Other Receivable |
| BS | ACCREC_OTH |
Increase (Decrease) in Accounts Payable |
| BS | ACCPAY |
Increase (Decrease) in Other Payables |
| BS | ACCPAY_OTH |
Increase/Decrease of Provisions |
| BS | PROVISIONS |
Increase (Decrease) in Notes Receivable |
| BS | NOTERECEIV |
Depreciation of Tangible Assets |
| IS | DPRTASSET |
Amortization of Intangible Assets |
| IS | AMORINASST |
Purchase (Sale) of Tangible Assets |
| BS | TANGASSETS |
Purchase (Sale) of Intangible Assets |
| BS | ITANGASSET |
Gain/Loss from Retirement of Fixed Assets |
| IS | CHGFARET |
Increase/Decrease of Inventories |
| BS | INVENTORY |
Increase (Decrease) in Common Stocks |
| BS | COMNSTOCK |
Activities
If you want to define your own tags, enter an ID, a name/long name, and assign the tag to a tag group.
In the next step you assign tags to your financial statement version. A report or KPI using a semantic tag will calculate the relevant values based on the assigned G/L accounts.
Assign Semantic Tags to Financial Statement Version
Advanced Valuation in General Ledger Accounting
Setup
General Settings
Activate Advanced Valuation
Short Text
Activate the advanced valuation in financial accounting.
Use
You first activate advanced valuation for an accounting principle. Advanced valuation can then be activated for all company codes to which the accounting principle is assigned.
You can now use the following processes:
- Post Discounting of Long-Term Assets and Liabilities
- Advanced Foreign Currency Valuation
- Post Credit-Risk-Based Impairment
- Post B/S Reclassification
Define Aging Increments for Advanced Valuation
Short Text
Maintain sets of aging increments in an aging that you want to use in an accounting principle.
Use
You can use the aging that are part of the SAP standard delivery, but you can also create an aging of your own. The aging that you create here, you assign later in the process to an accounting principle.
The settings you make here can be used in the following processes:
- Flat-rate value adjustment postings in Contract Accounts Receivable and Payable (FI-CA)
- Discounting of long-term assets and liabilities
- Advanced Foreign Currency Valuation
- Posting Credit-Risk Based Impairment Posting B/S Reclassification
- Posting B/S Reclassification
Define Rules for Grouping Journal Entry Line Items for Valuation
Use
In this activity you define rules that control how the valuation run groups the selected journal entry line items.
For more information, see Grouping of Journal Entry Line Items.
Define Rules for Determining Account Assignments in G/L Processes
Short Text
Create rules for determining account assignments in G/L accounting processes.
Use
In this configuration step you create rules that are used to determine account assignment in G/L accounting processes.
Assign Account Assignment Rules to Advanced Valuations
Short Text
Assign an account assignment rule to a process.
Use
In this configuration step you assign an account assignment rule to the process in which you want to use it.
Depending on the process in which you want to use , you can now configure following activities:
- Define Discounting Rules
- Define Rules for Advanced Foreign Currency Valuation
- Define Rules for Impairment
- Define Rules for B/S Reclassification
What does this mean for you ?
The Road Ahead
As regulatory frameworks continue to diversify and the need for real-time insight grows, Universal Parallel Accounting positions organizations to lead, not just comply. For companies looking to future-proof their finance operations, UPA isn’t just an upgrade—it’s a strategic imperative.
Conclusion
Are you exploring SAP Universal Parallel Accounting? I’d love to hear your thoughts and experiences.
#SAP #FinanceTransformation #SAPS4HANA #ParallelAccounting #DigitalFinance #CFO #UniversalLedger #AccountingInnovation
Blog series / Documentation on Universal Parallel Accounting with focus on
Universal Parallel Accounting in SAP S/4HANA - SAP Community
