SAP S4 HANA Finance Validation & Substitution

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Hello Dear Folks, If you are looking for tutorial for SAP S4 HANA Finance Validation & Substitution Step by Step Guide | S4 HANA Finance Validation & Substitution Tutorial for beginners | S4 HANA Finance Validation & Substitution Guide for Beginners then here you will get all the details.

What Are Validations & Substitutions?

Validation & Substitution:- Validation is used to perform checks on the data entered by
user in order to protect and prevent erroneous postings. Since, data is validated before they are
actually posted and only validated is accepted whereas Substitution is used to either fill fields that
are left blank or change the entries in fields filled with values different from those defined in the
substitution rules.

Validations
Purpose: Check if accounting entries meet predefined criteria before posting.

Example: Block postings without a cost center or with incorrect GL accounts.

Outcome: Posting is allowed or blocked based on rules.

Substitutions
Purpose: Automatically modify accounting entries before posting.

Example: Replace a blank cost center with a default value.

Outcome: Data is changed automatically without user intervention.

🔹 Key Difference:

Validations = Checks (Error Prevention)

Substitutions = Corrections (Automated Fixes)

How to Configure in SAP S/4HANA Finance

Step 1: Access the Configuration

  • Transaction Code: OB28 (Validations) / OBBH (Substitutions)
  • Path:
    • SPRO → Financial Accounting (FI) → General Ledger Accounting (GL) → Business Transactions → Validations/Substitutions

Step 2: Define a Rule

  • For Validations:
    • Rule Syntax: IF (Condition) THEN ERROR "Message"
    • Example:
IF BSEG-HKONT = '0000111111' AND BSEG-KOSTL = ''.
  ERROR "Cost Center is mandatory for this GL Account"
ENDIF.

For Substitutions:

  • Rule Syntax: IF (Condition) THEN BSEG-FIELD = 'New Value'
  • Example:
IF BSEG-KOSTL = '' AND BSEG-HKONT = '0000111111'.
  BSEG-KOSTL = '10000001' "Default Cost Center
ENDIF.

Step 3: Assign to Company Code

  • Rules can be applied at:
    • Company Code Level
    • Chart of Accounts Level
    • Document Type Level

Step 4: Test & Activate

  • Use Transaction FBB1 (Simulate Validation/Substitution) to test before going live.

Validation and Substitution are valid at 3 call up points:-

  1. Document Header
  2. Line Item
  3. Complete Document

Validation and Substitution activation Levels:-
0: Inactive :- The system won’t perform any validation/substitution. This is equal to having the
line in the maintenance table
1: Active :- The system will always perform the validation/substitution for each journal entry
2: Active, No Batch input :- The system will perform validation/substitution for each journal
entry manually but not for batch processes

Steps in Validation :-

  • Prerequisite
  • Check
  • Message

Steps in Substitution :-

  • Prerequisite
  • Replace

GGB0 and OB28 ——–> Validation
GGB1 and OBBH ——–> Substitution

Validation

1. Select the Area for the validation and click on Validation button :-

2.Validation Name = FI_72 (Always starts with Alphabet)

Description = Validation for 2172

3. Click on Step button and provide the information

Validation Step = Check Cost Center and Amount Limit

4. Activate Validation TCode: OB28

CoCode – 2172
Call Point – 2 (Line Item)
Validation – FI_72 (give your validation id)
Activation Level 1 (Active)

Substitution

  1. Select the Area for the Substitution and click on Substitution button,
    TCode GGB1 :

2. Define Substitution :

Substitution Name = BA_72 (Always starts with alphabet)

Description = Branch Code update in GR document

3. Click on Step button and provide the information

4. Activate Substitution TCode: OBBH

CoCode – 2172
Call Point – 2 (Line Item)
Substitution – BA_72 (give your validation id)
Activation Level 1 (Active)

Validations and Substitutions in SAP S/4HANA Finance are essential for ensuring data integrity, compliance, and automation. By setting up the right rules, companies can reduce manual errors, enforce policies, and improve efficiency in financial transactions.

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