universal database all subjects questions

Over time, however, the realization arose that FI and CO have a lot more in common than was originally assumed, and reconciliation efforts for closing purposes became necessary. This led to the creation of independent database tables for each area. The historic separation of Financial Accounting and Controlling dates back to the belief that these areas would be independent of each other from a business point of view, even if they relied on the same underlying business processes. Why was the Universal Journal introduced? Overall, companies can even benefit from lower TCO thanks to the Universal Journal. All of this reduces the memory footprint and increases the throughput of the system. The advantages of having all this information in one place are evident: No reconciliation activities are needed, data redundancies are eliminated, and line items are entered only once. Technically speaking, the Universal Journal combines the most important fields from these components within a single line item table, which enables the components to read and process the data required for their business processes from a single location. This single source of truth collects all accounting-relevant transactions and makes them available to all relevant application components: Financial Accounting (General Ledger), Controlling, Asset Accounting, and Material Ledger. The Universal Journal brings together the once-separate components Financial Accounting (FI) and Controlling (CO) into one pool of relevant business data. The Universal Journal – what’s it all about? That’s why we have collected some key facts and further information sources explaining the Universal Journal.

Nevertheless you may still have a question or two on the concept and its benefits. The Universal Journal has made business life much easier for users, allowing fast decisions based on a holistic financial and management accounting picture – for example by accelerating period end-closing activities through the elimination of tedious reconciliation work. Since the introduction of the Universal Journal with SAP S/4HANA Finance 2.0, a large amount of information material has been available that describes the architecture as a whole or different aspects of it.

Universal database all subjects questions