HPC DECIPHER: Real-Time FERC on SAP S/4HANA® – Certified by SAP

HPC DECIPHER® Earns SAP-Certified Integration with SAP S/4HANA®


HPC America is pleased to announce that our ABAP-based software solution HPC DECIPHER® has achieved SAP certification as integrated with SAP S/4HANA® by passing SAP’s rigorous evaluation process. The integration helps utility companies to realize greater accounting transparency, speed up the monthly close, and, ultimately, strengthen rate case positions with the most defensible cost of service data.

Learn more about DECIPHER’s functionality below, and schedule your private demonstration at the 2018 SAP for Utilities conference.

How Will You Manage Regulatory Reporting on S/4HANA?

Utilities planning their move to S/4HANA are asking good questions about regulatory reporting: What is delivered standard? What will happen to our old regulatory accounts? Will reporting be less of a hassle on S/4? How much faster and more transparent will it be?

The short answer to these questions is that S/4HANA is delivered with the “FERC module” that utilities have used for decades, and which HPC America itself originally built for PG&E in 1995. It relies on the same derivation-based (batch) model, supports FERC balances with FI (primary) cost data only, and does not reconcile FERC and CO. It may run faster given the database, but does not take advantage of the Universal Journal’s valuable line item detail.

White Papers for Utility Financials Pros: FAQ about FERC Reporting on S/4HANA, and Matrix of FERC Reporting Options on S/4HANA

Introducing HPC DECIPHER


For utilities on SAP S/4HANA, HPC DECIPHER software delivers the greatest accounting transparency, speeds up the monthly close, and, ultimately, strengthens rate case positions with the most defensible cost of service data.

We developed HPC DECIPHER based on our 20+ years of experience supporting utilities with expert consulting and innovative software. It overcomes the limitations of the delivered solution, and provides the most comprehensive functionality for translation, allocations, adjustments, reporting, and cost flow forensics.

HPC DECIPHER combines the most relevant features from our previously proven solutions for utilities on SAP—HPC UFA, HPC RTFS, HPC JETS, and HPC CFF—into an S/4HANA-native package that is certified by SAP. And the icing on the cake? HPC DECIPHER  lets you eliminate the legacy FERC module from your S/4HANA design. It leverages the Universal Journal and does not require Central Finance.

  • Translates GAAP to Regulatory accounts in real-time, directly in S/4HANA
  • Portions line items to multiple regulatory accounts
  • Allocates common costs by utility code
  • Generates full Financial Statements with drill down to all regulatory line items
  • Eliminates need for lump-sum journal entries that lose valuable transaction details
  • Enables easy, controlled reversal and reposting of regulatory data
  • Improves responsiveness to regulatory inquiries, and strengthens rate case positions
  • Establishes one version of the truth between GAAP and Regulatory views

  • Requires SAP S/4HANA release 1610 or later
  • Runs natively on the SAP Universal Journal
  • Supports “greenfield,” “brownfield,” and SLT migration to S/4HANA
  • No SLT replication, custom fields, coding block changes, or additional hardware required
  • Does not use or require Central Finance
  • Eliminates need for the legacy FI-RRU (“FERC”) module
  • May be implemented as part of a new S/4HANA installation, or integrated with already-live S/4 systems (with functional areas already active) by enabling retroactive posting of regulatory data

  • Failsafe trace of every single dollar in the regulatory range
  • Translation of fixed asset sub-ledger to regulatory accounts (e.g., 300 series for FERC)
  • Reassembly of all business object cost flows traced from start to finish

  • Supports a faster month-end closing cycle and improves the efficiency of Accounting, Finance, Rates, IT, and Operations
  • Allows Administration and Field Operations to enter financial transactions in terms they understand, very efficiently and without any knowledge of regulatory accounting
  • Generates automatically and in real-time the incredibly rich cost detail that Rates needs to strengthen rate cases, which is more granular than the original inputs from time entry, requisitions, purchase orders, and expense reports entered by employees in the field
  • Helps Accounting make the highest-integrity line-item adjustments of any scale directly in S/4HANA, both before and after allocations, while preserving all original transaction detail
  • Identifies all cost flows traced from start to finish—and in reverse—with drill-down to details
  • Creates an opportunity to eliminate costly third-party fixed asset solutions by translating the fixed asset sub-ledger to regulatory accounts directly in S/4HANA
  • Reinforces the business case for S/4HANA adoption, and boosts the ROI from S/4 systems by using key functions of the Universal Journal and Central Finance

Speed and Granularity without Compromise

While other approaches to “real-time” FERC on SAP S/4HANA tout the immediacy of regulatory data, those designs are only as good as the level of detail they provide. Summarized data does not often meet Rates’ needs to respond to regulatory interrogatories or support rate cases. If a real-time FERC solution is limited to line item amounts by natural (GAAP) account and Functional Area, it will not likely be detailed enough for utility reporting requirements.

In contrast, HPC DECIPHER not only populates FERC accounts in real-time as each transaction is entered, but also generates the highly detailed cost data that Accounting and Rates need—all automatically, without Admin and Field Operations having to know anything about FERC.decipher-flow-logo

In this manner, HPC DECIPHER delivers on the promise of real-time FERC without compromising the granularity that utilities must have to properly functionalize their cost of operations.

To learn more about implementing HPC DECIPHER on your S/4HANA server, please contact us.