Central Finance Roadmap - T\|A\|C Events · SAP ERP * SAP ERP * Information Integration with Side Panels Solution & Value Contextual information for end users that work in local systems,

$Page 1: Central Finance Roadmap - T\|A\|C Events · SAP ERP * SAP ERP * Information Integration with Side Panels Solution & Value Contextual information for end users that work in local systems,$
September 13th, 2018

Stefan Fischer, Head of Central Finance Development

International Conference on Central Finance 2018

Central Finance Roadmap

“Top 3 Challenges & Opportunities for CFOs in 2018?”

A u t o m a t i o n

D i g i t i z a t i o n

Optimization of Planning & Forecasting

Source: “Rethink Corporate Finance 2018” – survey of 157 CFOs by i.conect

3PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

SAP Strategy – Deliver the Intelligent Enterprise

AI/ML | IoT | Analytics

Integrated Applications

CustomerExperience

Manufacturing& Supply Chain

Digital Core

PeopleEngagement

Network & SpendManagement

Intelligent Technologies

Digital Platform

DataManagement

CloudPlatform

1 Intelligent Suite

2

Intelligent Technologies3

Digital Platform


Integrated Applications

CustomerExperience

Shared Services

Central Finance People

Engagement

SpendManagement

Digital Platform

DataManagement

CloudPlatform

Intelligence Enterprise Suite with Central Finance

SAP Cash Application

S/4

S/4

Multi-ERP

S/4

ECC

S/4

Non

SAP

Predictive Accounting

Continuous Close

Global Tax Management

SAP for Credit Integration

Shared Service Automation

SAP Digital Payments

Single Source of Truth, Integration, and Business Automation

Goods-receipt / invoice receipt

monitor

Tax Compliance

Business Integrity

Screening

Digital Assistance


Corporate Finance Platform

Vision of the intelligent Enterprise with Central Finance

Planning, Reporting & Compliance

▪ Governance & Group Wide Standards

▪ Live Finance Reporting

▪ Financial Planning

▪ Prediction & Simulation

▪ Tax Reporting & Compliance

Central Finance Operations

& Shared Services

▪ Credit, Collections & Dispute

▪ Invoice Verification & Central Payments

▪ Intercompany

▪ Cash & Liquidity Management

▪ Treasury

▪ Central Asset Accounting

Central Close

▪ Orchestration of Closing

▪ Central Closing Activities

▪ Group Consolidation & Statutory

Reporting

Technology Foundation


Planned Innovation Future DirectionRecent Innovation

Central Finance Roadmap

Onboarding, Operations and Simplifications

▪ Continuous improvements & adoption

accelerators

Central Reporting

▪ Special Ledgers replication & reporting

▪ Predictive finance scenarios

Central Processing

▪ Central AP/AR payment processing

(extended)

▪ Central indirect tax reporting

▪ Localized tax reporting with Central

Payment for core countries

Central Close

▪ Central orchestration with Closing

Cockpit (Cloud App)

▪ Intercompany reconciliation

▪ Central purchase order accruals

Onboarding, Operations and Simplifications

▪ Increased flexibility for the initial load process

▪ Improved initial load optimized for S/4HANA source

systems

▪ Central reversal and reposting

▪ Custom checks for consistency check report

Central Reporting

▪ Central Projects: Settle to assets in central

finance and assets under construction.

Central Processing

▪ Central payment scenario (enhancements)

▪ Central down payment handling for procurement

processes

▪ Deferred tax for central payments (w/o country

specific requirements)

Onboarding and Operations

▪ Simplified non-SAP integration via 3rd party interface

▪ Extended S/4H Cloud scenario for Central Finance

Central Reporting

▪ Improvements for Profitability Analysis in central

unified journal

▪ Central Profit Center reporting, incl. manual posting

from EC-PCA.

▪ Group Reporting for Central Finance

Central Processing

▪ Central AP/AR payment processing (entry level

scope)

▪ Down payment processing for Central Payments

▪ Withholding tax for Central Payments (US, GER)

September 2018


Highlights from Recent Releases

S/4HANA 1709

Central Payments

Reporting on Projects (WBS)

Central Profit Center Accounting

Central Commitments

Central Finance information for users in local

systems with Side Panels

S/4HANA Cloud Subsidiary Scenario

Improvements for implementation & operations,

eg. configuration consistency checks.

Following slides See Appendix


Central Project Reporting (WBS) with Central Finance

Benefits

View on project portfolio across systems with drill-

down analysis into individual project structures

Focus on financial reporting as provided by Project

Work Breakdown Structures (WBS)

Retain full control on operative project

management in local systems

Report on project dimensions with costs, revenues

CF-1000

CF-1000-01

CF-1000-02-

01

CF-1000-02

$

$

$ $

$

1709


Replication

Central Profit Center Accounting

Solution & Value

Enable Profit Center view in Central Finance that cuts across

a diverse system landscape and business entities

Profit Center assessments and manual postings from sender

systems to Central Finance.

Central reporting based on ACDOCA leveraging new analytics

tools and capabilities in S/4HANA.

New: Simulation and Comparison Reports for Central Profit

Center Accounting

Central

PCA

Local PCA

Local PCA

Local PCA

1709 & 1809


Open Items

Central Payments for Central Finance

Central

Invoice-

to-Cash

Local O2I

Local O2I

Local O2I

1709 & 1809

Bank

Solution & Value

Replicate open items for central payment processing and full

control over payment status.

Raise process efficiency, optimize operations and realize

overall AP/AR process savings.

Simplify the infrastructure, reduce interfaces.

Leverage HANA-optimized payment proposals, new bank

account management etc.

Use S/4HANA innovations in cash and AP/AR, including

SAP Cash Management, SAP Cash Application etc.

Opportunities for additional business value with shared

services optimization, central bank reconciliation, …

Access to Central Payments via Note 2346233

Central Credit,

Collections,

Disputes

SAP Cash

Application


Replication

SAP ERP *

SAP ERP *

SAP ERP *

Information Integration with Side Panels

Solution & Value

Contextual information for end users that work in

local systems, bridging between local and central

systems.

Display corresponding document and master data

information with navigation options.

Enabled through configuration in the source

systems*, small TCO.

Extensible to cater for specific information needs.

* Source > ECC6.0, use of NetWeaver Business Client

Central

Finance

Information Integration


Move to the Cloud TodayCentral Finance – one Enabler for Successful Cloud Transition

Central Finance Runs in Cloud

Customers use Central Finance in the

Cloud live since 2017.

Facilitates transition to the S/4HANA cloud

Orchestrating the IT landscape, offering significant

business value and choices for the speed of

adoption.

▪ Integration scenario to connect subsidiaries on

S/4HCloud with the corporate backbone on

Central Finance.

▪ Act as business continuity platform for phased

transition to the cloud.

Enables Business Network

Solutions

Centralizing spend management and

shared services functions today, SAP

Business Cloud Applications Ariba,

Concur and Fieldglass connect to the

Central Finance business platform.


Model Company for Central FinanceAccelerators for Central Finance implementation

The SAP Model Company for Central Finance allows to ‘quick start’ the Central Finance project and enables a sound foundational design.

It helps to reduce costs, decrease risks and provide guidance for the right decisions.

It is a knowledge base for discovery, exploration, and realization activities of a Central Finance project

www.sap.com/modelcompany

Included today are

▪ Ready-to-run accelerators including project management,

functional and technical / configuration guides

▪ Enablement session, vision & scoping workshop

▪ MC Delta for rapid data profiling

▪ Covering S4HANA, Central Finance, SLT – System Landscape Transformation,

MDG – Master Data Governance, PO – Process Orchestration, FIORI

▪ Discovery Landscape available on-demand

To receive more information on the Central Finance accelerators: [email protected]

http://www.sap.com/modelcompany


Influence the Central Finance Product

Levels of Engagement

Customer Engagement Initiative: CFIN

CEI break-out sessions

Early adoption

Pilot notes and individual arrangements

POC evaluation

Topics

Central payments and taxes

Replication of down payments

Managing investment projects centrally

Cross landscape configuration management

Share experiences on 1809 adoption

Customer can join the Central Finance Customer Engagement Initiative. Contact: [email protected]

Get in touch with us NOW!

Thank you for your participation

and have a safe trip home

Stefan Fischer

SAP Central Finance Development

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Appendix

Additional Information & Details


Solution today

Central Finance Solution Today

Infrastructure, Onboarding and Operations

▪ Finance document replication in real-time

▪ Initial document load for finance data before cut-over

▪ Master data replication via existing channels, incl. MDG,

SLT, iDoc etc.

▪ Replication of cost object master data, incl. production /

internal order, product cost collector master data

▪ Master data mapping (harmonization) and usability tools

▪ 3rd party interface for integration of finance data from

non-SAP systems.

▪ Error management for business users with AIF

▪ Replication of AP/AR clearings to Central Finance

▪ Cross-system navigation from central to local systems

with classic and Fiori UI

▪ S/4H Finance Cloud as a source system

▪ Reconciliation and audit capabilities, incl. key mapping

changes

▪ Augment source data for replicated documents (BAdI)

September 2018

Central Reporting

▪ Group wide G/L and P&L reporting in real-time

▪ Advanced segment, entity and group reporting

▪ Mapping for CO-PA characteristics and value fields

▪ Extended CO posting scenarios1)

▪ Intercompany reconciliation

▪ Central cash position / liquidity forecast (AP/AR

based)

▪ Central Projects (WBS) – reporting scenario

▪ Central Profit Center reporting, incl. manual posting

from EC-PCA.

▪ Improved forecasts with central commitment

reporting based on purchases in local systems.

Central Processing

▪ Central AP/AR process orchestration for shared

services, with central dispute management,

collections prioritization, and central credit

evaluation.

▪ Central embedded financial planning

▪ Real-Time Consolidation in Central Finance

with SAP Business Planning & Consolidation.

▪ Centralize AP/AR processing, bank reconciliation

and improved cash management with Central

Payments.

SAP has no obligation to pursue any course of business outlined in this slide or to develop or release any functionality mentioned on this slide. This slide and SAP's strategy and possible future developments are subject to change and may be changed

by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-

infringement - 1) For details on CO posting scenarios see SAP Note 2103482


Pla

n

Commitment Management with Central Finance

Benefits

Track future commitments against cost objects in

Central Finance

Make realistic comparison on actual and committed

costs against plan

Better predictions and forecasts on a corporate

level based on data from across systems

Available

Actual

Commitment

Us

ed

1709


Overview Central Commitment

❖ Real-time replication of commitments from purchase requisition(PR) or purchase order(PO)

o Commitment creation from new PRs/POs

o Commitment update from PR/PO updates (quantity, price, indicators…)

❖ Real-time replication of updates to commitments from goods receipt (GR) or invoice receipt (IR)

o Commitments update from GRs/IRs

o Commitments update from reversals of GRs/IRs

❖ Initial load for commitments

o Create commitment for existing PRs/Pos.

❖ Commitment carryforward

o Commitment update from carryforward WILL NOT be replicated

from source system. Instead, the carryforward can be triggered in

the central system.

Pla

n

Available

Actual

Commitment

Us

ed


Central Commitment Reporting - Example Procure to Pay

Create Purchase

Order

Goods Receipt

Incoming Invoice

Goods Receipt

June 21, 2017

July 28, 2017

August 10, 2017

June 15, 2017

3 PCs at 1,500

EUR each

Actual Commitment

Goods receipt for

2 PCs

Invoice receipt for 3

PCs, 2,000 EUR

each

Goods receipt for

1 PC

SourceCentral

Internal order

100000

Report

Internal order 100000

Order Replication

Commitment Replication


FI Replication


FI Replication


FI Replication

4,500.00

3,000.00 1,500.00

4,000.00 500.00

06,000.00

0

1709


Compare settings and master data between source system and Central Finance system

EARLIER identification of settings that might lead to problems

Delivery of initial set of checks that SAP will extend over time

Examples:

• GL Account is open-item managed in the source system but not open-item managed in CFIN

• Local currencies in FI differ

• Document splitting is inactive in the source system but activated in the CFIN system

• ….

Configuration Consistency Check Cockpit


Configuration Consistency Check Cockpit


Side Panel: Example for FI document

Main business

transaction

(local system)

Side Panel with

related Central

Finance information

Central Finance Roadmap - T\|A\|C Events · SAP ERP * SAP ERP * Information Integration with Side Panels Solution & Value Contextual information for end users that work in local systems,

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