Moving to S/4HANA: Benefits for Finance

Moving to S/4HANA:

Benefits for FinanceBirgit Starmanns

Kevin McCollom

SAP

2 © 2021 ASUG Confidential

Key Outcomes and Objectives1. Introduce Main S/4HANA Improvements for

Finance

2. Identify Approaches for Moving to S/HANA

3. Discuss Additional Business Value Beyond

S/4HANA for Finance

3PUBLIC© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ

▪ SAP Vision for Finance Transformation

▪ SAP S/4HANA delivering on the vision of Finance Transformation

▪ Moving to SAP S/4HANA

▪ Recommendations for add-on licenses

▪ Discussion

Agenda


Finance is at The Center of Enterprise TransformationBusiness transformation requires finance

• Establish billing and payment

processes for new business models

• Steer the enterprise transformation to

ensure it is financially viable

• Ensure digital trust and compliance of

new business models

Finance Transformation

Supply Chain

Transformation

• Optimize supply chain networks

• Modernize production with IoT

• Provide smooth delivery experience

Customer Experience

Transformation

• Build customer trust and loyalty

• Create customer-specific offerings

• Provide delightful buying experience


SAP’s Vision of Finance TransformationFrom daily routine to supporting growth and forward looking insight

Running

the Business

Insights

Operations

Support

Strategy

Operations

Forward

looking

Predictive

Insights

Real-time

Insights

Backward

looking

Deliver

Insights

Operations

Backward

looking

Real-time

Insights

Predictive

Insights

Automation

Cost-efficient

and compliant

finance processes

Advanced

Analytics

Proactive

business

steering






▪ Discussion

Agenda


Benefits for Finance from SAP S/4HANA

Consistent, Intuitive

& Efficient

User Experience

delivering a positive experience

working with both Analytics and

Transactions

Fundamental

Enhancements to Core

Finance Processes

that will make your life

easier

An Integrated Data

Platform

providing a single version of

financial truth




& Efficient

User Experience

Fundamental


Finance Processes


easier

An Integrated Data

Platform


financial truth



Transactions


Intuitive Assisted User ExperienceFiori will help extend the use of S/4HANA to even casual users…

▪ Single Entry Point

▪ Domain-specific information and actions

▪ Enter details and explore in depth

▪ 1700+ Fiori apps for SAP S/4HANA, 600+ specific to Finance

▪ Fiori does need to be switched on and deployed…

Find out how you can take advantage of SAP Fiori with our SAP Fiori lighthouse scenarios designed to deliver immediate business benefit to SAP S/4HANA customers.

Me AreaViewport Notifications

https://www.sap.com/corporate/en/documents/2018/01/12b3dec4-ec7c-0010-82c7-eda71af511fa.html


SAP S/4HANA Embedded Analytics

▪Role based

analytical insights

▪One company wide KPI

repository

▪Based on

SAP Virtual Data Models

▪One click away from the

Fiori Launchpad


SAP S/4HANA with Fiori accelerated Business ProcessesReduced manual interactions increases business efficiency and simplifies users life

Process receivables

Click-through video*

SAP GUI SAP Fiori

Duration: 2:12 min Duration: 0:47 min

Clicks: 39 Clicks: 11

Screen changes: 8 Screen changes: 2

Fields filled: 5 Fields filled: 2

64% (85 sec) reduction in duration

71% (28) reduction of clicks

75% (6) reduction in screen changes

60% (3) reduction of fields filled

Clear incoming payments

Click-through video

SAP GUI SAP Fiori









Post incoming payments

Click-through video

SAP GUI SAP Fiori


Clicks/Tabs: 27/2 Clicks/Tabs: 17/2




37% (10) reduction of clicks/tabs



Post General Journal Entry

Click-through video

SAP GUI SAP Fiori

Duration: 49 sec Duration: 49 sec







Analyze Financial Balance Sheet

Click-through video

SAP GUI SAP Fiori









Manage vendor line item

Click-through video

SAP GUI SAP Fiori

Duration: 52 sec Duration: 50 sec








https://www.youtube.com/watch?v=v6tOQlBTAY4

https://www.youtube.com/watch?v=jFY_911ShWA

https://www.youtube.com/watch?v=_morrLqAZTQ

https://www.youtube.com/watch?v=zAPYj_YCRvU

https://www.youtube.com/watch?v=YIfHsp2AUio

https://www.youtube.com/watch?v=7ZC74aHEV1M




& Efficient User

Experience

Fundamental


Finance Processes


easier

An Integrated Data

Platform


financial truth



Transactions


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Material Document

Stock Aggregates

History

Sales Order

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Billing Document

Status Info

Conditions

Document Flow

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Header Item

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Material Values

Aggregates

Document

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movements

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Valuated StockML Valuation

Simplification of the Data PlatformEnables users to access information in a radically different way

SAP

Business Suite


Used for Master Data only

MATDOC_

EXTRACTMATDOC

On the fly aggregation and compatibility views

for indices and obsolete tables

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incl. StatusItem incl.

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Material Document

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Used for Master Data only ML Valuation

Simplification of the Data PlatformEnables users to access information in a radically different way

SAP S/4HANA Benefits

▪ Simplified Data model(Real-time in-Memory database)

▪ Real-time ad-hoc analytics(no aggregations)

▪ Faster processing allowed

reengineering of processes(no batch jobs required)


SAP Business Suite - Modular Data Platform

Asset Accounting

Company Fixed Asset …

General Ledger

Ledger Company AccountProfit

Center…

Management Accounting

Controlling

AreaCost Element …

Profitability Analysis

Operating

Concern

Market

Segment…

Material Ledger

Company Product …

S

▪ No real-time reconciliations

▪ No real-time aggregations


▪ Instant Insight

▪ Flexible Real Time Analytics

SAP S/4HANA Finance Universal JournalBenefits of the single Source of Truth

▪ No Reconciliation needed

▪ No Replication needed

▪ No Stored Aggregations

▪ Drill to Detail

General Ledger

Ledger Company AccountProfit

Center…

Management Accounting

Controlling

AreaCost Element …

Profitability Analysis

Operating

Concern

Market

Segment…

Material Ledger

Company Product …

Asset Accounting

Company Fixed Asset …

Universal Journal

Powered by SAP HANA

Ledger CompanyAccount/Cost

ElementProfit

Center

CodingBlock

FixedAsset

Market Segment

ProductCustomer

Fields


Imagine being able to:

▪ Build a steering model where the profit and loss

statement and detailed profitability reporting are

sourced from the same document

▪ Access asset and inventory details without

jumping to a separate sub-ledger

▪ Improve transparency into production and

maintenance thanks to additional reporting fields,

such as work center and operation, in the journal

entry

▪ Enrich project reports with customer and product

details

Benefits of the Universal Journal




& Efficient User

Experience

Fundamental


Finance Processes


easier

An Integrated Data

Platform


financial truth



Transactions


SAP S/4HANA Finance What’s Changed?

Chief Financial Officer

Vice President,

Finance

Head, Corporate

Reporting

Head, Finance

Operations

Head, Corporate

Treasury

Risk, Compliance & Audit Officer

CISO, CIO

Financial Planning

& Analysis

Accounting

& Financial Close

Finance

Operations

Treasury

Management

Enterprise Risk

& ComplianceSecurity & Privacy

Planning, Budgeting,

and ForecastingFinancial Accounting Record to Report

Payments and Bank

Communications

Enterprise Risk

Management

Access Governance

and Identity Management

Profitability and

Cost ManagementEntity Close Order to Cash

Cash and Liquidity

Management

Controls and Compliance

Management

Single Sign-on and

Authentication

Management Reporting Corporate Close Procure to PayDebt and Investment

Management

Automated Monitoring

and ScreeningAccess Monitoring

Financial Reporting Indirect Tax ManagementFinancial Risk

Management

Policy Lifecycle

Management

Data Loss Prevention

Cybersecurity

Direct Tax Management Real Estate ManagementRisk Management

for CommoditiesAudit Management

Data Protection and

Privacy Governance

Financial Close

Governance

Travel and Expense

ManagementTreasury Governance

International Trade

Management

Financial Shared

Service Management

Financial Process

Governance

Finance & Risk

3

108 96

5

4

2 7

1

Summary and

next Section…


▪ Closing the period in SAP

ECC requires numerous,

time consuming steps

including reconciling GL and

sub-ledgers

▪ Many batch processes are

only run at period end due to

time constraints - delaying

management and statutory

reporting

▪ Little to no visibility during

the period since the close

process is so demanding

▪ Universal Journal is reconciled

by design which means fewer

closing tasks to perform

▪ Many tasks can be run in real-

time providing better visibility

throughout the period and

reducing the period-

end workload

▪ Earliest, high-quality, multi-

dimensional managerial

insights using real-time

derivations and predictive

accounting for some scenarios

Current Challenges

Financial Close (Continuous Close)Execute a faster or even continuous close with less effort


Period-

end

time

Period-

end

time

Fast close

Continuous close


Margin AnalysisDetermine gross margin faster, simpler and with more granularity

▪ Full visibility across all elements

of margin, including dimensionality

such as market segment inherent in

the Universal Journal

▪ SAP S/4HANA combines

functionality from CO-PA with

innovations based on the Universal

Journal to provide flexibility

▪ Embedded Analytics in SAP

S/4HANA makes information easily

accessible

Current Challenges

▪ Difficult to get end-to-end visibility as

the elements of margin are split

across modules, resulting in high

reconciliation efforts

▪ While CO-PA can be used it lacks

flexibility

▪ Large complex Excel spreadsheets

are built using extracted information

and are arduous and error prone



▪ No visibility to the financial impacts of

operational activity recorded in the

ERP system

▪ Forecasting the impact of sales orders

& purchase orders is manual, time

consuming & error prone

▪ Simulating transactions is limited and

not possible cross application

Predictive AccountingProvide forward looking financial insights based on operational transactions

Current Challenges SAP S/4HANA Benefits

▪ Predictive (projected) entries are

generated from sales order

transactions, reducing forecasting

efforts

▪ Simulated transactions can be

generated isolated from GAAP

relevant postings (using an extension

ledger) and used for internal

reporting purposes

▪ A more accurate view of future

financial impact with drill-down to

the operational transactions and

analysis capabilities


▪ Decentralized view on customer

accounts (including expensive, hard

to maintain, 3rd party solutions)

result in limited insight into team

efficiency and effectiveness

▪ ERP screens and transactions

overloaded with unnecessary

entry fields not needed for task

execution

▪ Transactions, forecasts,

recommendations and simulations

often after-the-fact based instead of

predictive

Managing ReceivablesUnified view, real-time analytics, and streamlined design

▪ Unified Master Data – single view of

the customer, allowing for a guided

focus on key customer accounts and

management of receivables across

multiple business units

▪ Unique combination of operational

and transactional data for better

decisions – in real time, on any device

▪ Enhanced ease of use and improved

productivity

▪ Option to upgrade to S/4HANA

Receivables Management with

enhanced automation for cash

collection and credit processes

(*requires additional license)

Current Challenges(included in S/4HANA Finance)


Customers with SD-Credit Management


▪ Ensuring data protection and

security is a complex moving target

▪ Limited visibility into system

activities

▪ Difficult to determine business

impact of traditional security

processes

▪ Limited controls and automation for

privacy compliance

Managing Security, Protection and PrivacyAdminister and control security and privacy risk

▪ Security and governance are

simplified with integrated access

governance and HANA-based real

time monitoring

▪ Data is protected with policy-based

access, key management, and native

encryption

▪ Enhanced reporting and analytics

provide unified actionable features

▪ Support privacy-by-design when

integrated with privacy governance

Current Challenges SAP S/4HANA Benefits


▪ Cumbersome processes with

no common user interface

and heterogeneous single

point solutions for every

country

▪ Error prone manual report

data extraction, collection and

generation

▪ Lack of visibility to reporting

status and cumbersome data

display and review

Legal and Tax ReportingA centralised solution

▪ More efficient statutory reporting

process with automated creation

of reporting tasks and a single

entry point

▪ Broader range of reports, real

time, without data replication

and reconciliation with better

auditability

▪ Dashboard provides streamlined

overview of due dates, reporting

status, including corrections

Current ChallengesS/4HANA Benefits

(Basic Advanced Compliance

Reporting - included)


Continuous CloseHigh-quality multidimensional insight, earlier and with less effort

Integrated IntercompanyReconcile intercompany transactions at source before consolidation elims

Margin AnalysisContinuous, high granular analytics of margin, reconciled by design

Embedded Secure Data AccessBusiness role concept enabling effective management & control

Inventory AccountingSimplifying material valuation, product cost analysis and actual costing

Managing ReceivablesUnified view, real-time analytics, and streamlined design

Universal AllocationsIncreased transparency in cost allocation modeling and execution

Cash ManagementBetter data architecture and UI for reporting & monitoring Cash

Predictive AccountingFuture-fact-based decision making based on operational information

Advanced Compliance ReportingCentralised Legal and Tax Reporting increases compliance

Key Benefits for Finance moving to SAP S/4HANA

Embedded Reporting and Analytics

Intuitive Assisted User Experience Fiori simplifies learn and use for both Analytics and Operational transactions,

coherent across all devices

Flexible ad-hoc reporting and insight to action, based on live transactional

data in a single financial truth






▪ Discussion

Agenda


Our strategic choice for companies

ready to embrace the future of ERP

with a new implementation and

pre-defined content

SAP S/4HANA: The right fit for every organization

SAP S/4HANA Public Cloud SAP S/4HANA Private Cloud SAP S/4HANA On-Premise

Complete, modern, SaaS ERP Cloud value, traditional flexibility & full scope Total control and individualization

As a ProductAs a Service

ONE Data Model • ONE Semantic • ONE User Experience

Designed to provide innovation and

cloud value while allowing customers

to retain their investments by

converting their existing system(s)

Innovative, intelligent ERP for

customers that require maximum

control of their ERP system,

usually in their own data centers

or with existing IaaS partnerships


SAP S/4HANA Transition Paths

System A

SAP ECC 6.x

Any Enhancement

Pack

New or existing SAP customer

implementing a new SAP S/4HANA

or SAP S/4HANA Cloud system

with an initial data load

System B

System C

Complete conversion of an

existing SAP Business Suite

system to SAP S/4HANA

Transformation of one or multiple

Business Suite systems into

one global SAP S/4HANA

SAP S/4HANA Cloud

SAP S/4HANA

New

Implementation

Legacy

System

System

Conversion

System/Landscape

Transformation

Central Finance

System A

System B

System C

Replication of current fragmented

finance (only) landscape into one

central SAP S/4HANA Finance system

SAP S/4HANA Cloud

SAP S/4HANA

SAP S/4HANA Cloud

SAP S/4HANAInstant data replication

SAP S/4HANA Cloud

SAP S/4HANA


SAP S/4HANA Move Planning Tools

Business Scenario Recommendations (BSR)

ReadinessCheck (RC)

Fiori Apps Recommendations (FAR)

For Business and IT Leaders

Fiori app recommendations for Finance

Based on actual usage in production system

Takes just 5 minutes to request: link

For Project Leaders

Drive innovation adoption

Identify business scenarios benefiting from

SAP S/4HANA

See this SAP Blog with the latest updates for

SAP S/4HANA 1909

For IT Leaders

Checks the readiness of the running SAP ERP

6.x system to migrate to SAP S/4HANA.

See this SAP Blog for more information

Small / Midsized Business Large Customers Strategic Customers

https://msmproda7afccce3.hana.ondemand.com/Request/FAR/

https://blogs.sap.com/2019/10/29/sap-business-scenario-recommendations-now-with-recommendations-for-sap-s4hana-1909/

sap-readiness-check-2.0-for-sap-s4hana-faq-whats-new-in-releases






▪ Discussion

Agenda


There are significant potential benefits for Finance moving from ECC to S/4HANA…

… but for a relatively small incremental cost the BENEFIT CAN BE MUCH BIGGER

SAP recommends that every customer moving to S/4HANA from ECC implements the following

solutions for which additional licenses are required:

Recommended Add-On Licenses

▪ SAP Analytics Cloud (for reporting, analysis and financial planning)

▪ SAP S/4HANA Group Reporting (for financial consolidation)

▪ SAP S/4HANA Cash Management (basic cash management is already included with S/4HANA)


▪ Traditional consolidation tools require multiple

extract, transform and load steps – inefficient,

time-consuming and restricted to period-end

▪ Limited dimensionality in the consolidation

system for financial analysis with limited

drilldown

▪ Frequent black box for items in consolidated

financial statement

▪ Distinct technologies with separate data models

and user experience

SAP S/4HANA Group ReportingMore transparent, more efficient group consolidation

Converting to S/4HANA

Without S/4HANA Group

Reporting

With S/4HANA Group

Reporting

▪ Group consolidation is in the ERP –

working directly on the Universal

Journal ensuring accelerated

processing and full drilldown to detailed

entries

▪ Sophisticated financial analysis across

dimensional detail of universal journal

▪ Consolidated financial statement fully

substantiated by accounting journals

▪ Shared technology, data model, apps,

master data, user experience


▪ Traditional planning tools require

multiple extract, transform and load

steps – inefficient and time

consuming

▪ Master data must be maintained in

multiple places

▪ Allocation logic has to be duplicated for

actuals and plans

▪ Roles and security have to be

maintained in multiple systems – and

kept synchronised to avoid breaches

SAP Analytics Cloud for Financial Planning

Converting to S/4HANA without

SAP Analytics Cloud

SAP Analytics Cloud

for Financial Planning

▪ Live analytics means data does not

have to be transferred between

systems

▪ Out-of-the-box templates for Real-

time analysis of plan vs actual

▪ Multiple iterations of plan and budget

can be stored in the Cloud without

impact on the ERP

▪ Flexible private versioning by user

prior to submission

▪ Shared master data between

S/4HANA and the FP&A process

Analytical

Reports

Planning

Content

SAC/DBR

dashboards

Financial statement

planning & capex

planning

KPI and financial

statement reports

Sales and

Profitability

Planning

Trend reportsProduct cost

simulation

Variance reports

(Actual vs. Plan,

YOY)

Cost and Activity

Planning

Reconciliation

Headcount &

Employee-related

Expense Planning

Local & Global Currency


▪ Can do the minimum - manage daily

cash position and cash forecast

▪ Liquidity planning is done off-line or

with customized planning tools

▪ Only Basic Bank Account

Management capabilities

▪ Non-standardised/harmonised

payment processes with different

tools and portals

SAP S/4HANA Cash ManagementFull visibility of company-wide cash position, cash forecast and global Bank account Management

▪ Manage complete day-in-the-life of a cash

manager with advanced monitoring, cash

positioning and analytics

▪ Manage complete lifecycle of payments with

end-to-end visibility utilizing workflow-based

collaboration and control

▪ Centralize bank account management

processes integrated with cash and payment

management processes

▪ Initiate FX and Money market trades from

cash management views

▪ Monitor & analyse data – with deep

drilldowns into cash flows utilizing intuitive

user interfaces

▪ Leverage bank connectivity for seamless

processing of payments, payment statuses

and account statements

S/4HANA Conversion with

only Basic Cash Management

With full

S/4HANA Cash Management

S/4HANA

Business Integrity Screening

Governance and Control

Bank Account Management and Cash Management

Manage

Bank

Account

s

Capture

Bank

Balance

s

Forecast

/

Planning

Process

Paymen

t

Bank

Message

Transmission

s

• AP/AR

• Payroll

• Treasury

• In-house

Cash

• Other… SAP Multi-

Bank

Connectivity*

Alliance Lite 2

Direct Bank Integration

* SAP Multi-Bank Connectivity offers seamless connectivity with the banks

for payments, statuses and account statements for ECC and all S/4

landscapes. Required for S/4HANA Cloud deployments.






▪ Summary & Discussion

Agenda


SAP S/4HANA’s Unique Formula for an Intelligent FinanceThe unbeatable combination of ingredients creates the power to transform core finance processes

• Redesigned, simplified & automated processes

• Embedded anytime Analytics with prediction

• Cross-company integration

• Proactive business contextual assistance

• Business situation support and alerts

• Speech controlled assistance

Intelligent Finance Applications

Assisted User Interface

Single

Financial

Truth

• Single journal entry – no redundancy

• Actual, plan, simulation data

• Reconciled and consistent by design

• Transactional and analytical data

• Real-time speed

• Unlimited drill-down Integrated Data Platform

Universal Journal

Intelligent Technologies• AI / Machine learning

• Predictive analytics

It’s time to

move to

SAP

S/4HANA !

Questions?



There are significant benefits across a range of

Finance & Risk topics in moving from ECC to

S/4HANA

Customers can simply convert from ECC to

S/4HANA but we highly recommend taking

advantage of this opportunity to transform

Finance processes

The benefit case for moving to S/4HANA will be

strengthened by investing in a minimum set of

recommended additional licenses

Take-Aways


Best Practices

Explorer

SAP S/4HANA Trials

SAP Learning Hub

SAP S/4HANA

Release Info

SAP S/4HANA

Roadmaps

SAP Help Portal

S/4HANA Roadmap

Viewer

S/4HANA Cloud

Customer Community

RISE with SAP

Where to go for More Information

https://rapid.sap.com/bp/#/browse/categories/sap_s%254hana/areas/cloud

https://www.sap.com/cmp/oth/crm-s4hana/s4hana-cloud.html

https://training.sap.com/g/en

https://discover.sap.com/learning-hub/en_us/index.html#section_0

https://discover.sap.com/learning-hub/en_us/index.html#section_0

https://rapid.sap.com/bp/#/browse/categories/sap_s%254hana/areas/cloud

https://help.sap.com/viewer/p/SAP_S4HANA_CLOUD

https://help.sap.com/viewer/product/SAP_S4HANA_OVERVIEW/latest/en-US

https://roadmapviewer-supportportal.dispatcher.hana.ondemand.com/

http://www.sap.com/s4-cloudrelease

https://training.sap.com/s4hc-community

https://s4hanacloud.community.sap/home

https://www.sap.com/products/rise.html

Thank you.


[email protected]

[email protected]

mailto:[email protected]

mailto:[email protected]

Moving to S/4HANA: Benefits for Finance

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