Sap simple finance by Keval Shah

SAP Simple Finance
Transform finance with instant insight
Keval Shah
Senior Solution Architect SAP

WHY SIMPLIFY?
WHAT IS SIMPLIFIED?
HOW IS IT SIMPLIFIED?

4
TECHNOLOGY
TRENDS
New Reality for Achieving Financial Excellence
Keeping Up with the Accelerating Pace of Business
Increasing complexity of
external conditions
Pressure to support
global growth initiatives
and new business models
Requirement to reduce the
cost of operations
Accelerated adoption of
technology innovations
Millennial work style enabled
by networks and mobility
Explosion of Big Data
BUSINESS
TRENDS

5
87%
of finance executives say
they need to analyze
financial and performance
data much more
quickly to meet targets
for profitable growth
(The Next Stage in the Creating Value-Added
Finance Function, CFO.com, 2014)
CFOs have spoken:
Finance executives see the need to transform their own finance organizations
83%
of finance executives agree
that better information
reporting and data
visualization capabilities
would help line-of-business
managers make better
decisions
(The Next Stage in the Creating Value-Added Finance
Function, CFO.com, 2014)
91%
of finance executive say that,
to meet targets for profitable
growth, the finance function
will need to become better at
providing managers with
forward-looking, predictive
analytics

6
Drive one common view of finance data to ensure
enterprise-wide consistency
87%
of finance executives say
they need to analyze
financial and performance
data much more
quickly to meet targets
for profitable growth
Consolidation of financial,
managerial and operational data
Single financial data source for
transactions, analytics and planning
Reduction of duplication and
the need for reconciliations

7
Enable real-time processes for instant insight timely to make
timely and relevant decisions
83%
of finance executives agree
that better information
reporting and data
visualization capabilities
would help line-of-business
managers make better
decisions
Real-time processes to
allow finance to transform their
organizations
Personalized self-service access
to KPIs with granular drill-down
Business and social networks
for collaboration with teams,
customers and partners

8
Identify strategic business options through prediction,
simulation and analysis
91%
of finance executive say that,
to meet targets for profitable
growth, the finance function
will need to become better at
providing managers with
forward-looking, predictive
analytics
Instant financial analytics
across multiple dimensions
of finance and operations
Modeling and prediction
to evaluate business options
Planning and simulation
across finance and operations

9
SAP’s Response: Helping Finance Run Simple
We attacked complexity in finance by
re-building our global, comprehensive
solution to take advantage of SAP HANA.
With the resulting simplicity, IT enables
finance to operate more strategically.
SAP CEO Bill McDermott announces SAP Simple
Finance at the 2014 SapphireNOW conference

11
Transform Finance with instant insight
Drive one common view of finance data
to ensure enterprise-wide consistency to minimize
reconciliation and errors
Use prediction, simulation and analysis
to evaluate financial implications of strategic
business options
Enable real-time processes for instant insight
to make timely and relevant decisions

12
One consistent view of financial and operational data
• Use one information source for transactions,
analytics and planning
• Consolidation of financial, managerial and
operational data
• Ability to use information from all systems
for a central reporting
• Aggregation on the fly based on transactional tables
• Provide a consistent experience across devices
and browsers
• Reduce data duplication and the need for
reconciliations
Internal and External Data
(SAP ERP, Legacy ERP, Market Indices)
Enterprise Applications
(SAP ERP, SAP BPC, SAP CRM, SAP BI)
SAP HANA Platform

13
Transforming finance with instant insight
Unlimited simulation of business options with what-if and
predictive analysis
Advise the business on M&A, product introductions
Instant visibility into working capital, enterprise-wide liquidity
and financial risks
Make investment decisions to fund corporate growth
Real-time receivables and payables reconciliation for better
collaboration with customers and partners
Reduce DSO (Days Sales Outstanding)
Controls and pattern-based prediction of increased potential
risks and fraud events
Identify and define strategies to prevent fraud
Continuous intra-period soft close with pre-close simulations
Solve issues through-out the month, not only month-end
Financial Planning and Analysis
Accounting and Financial Close
Treasury and Financial
Risk Management
Collaborative Finance
Operations Enterprise Risk and
Compliance Management

14
Example:
Real-time processes enable a “soft close” anytime
Processes designed for real-time
operations eliminate close bottlenecks
Local close processes involve >100
tasks with multiple batch bottlenecks
Traditional Close Close enabled by SAP HANAClose
Batches
Consolidation
Batches
Initial Period Close & Consolidation
Reporting on-demand
Close & ConsolidationInitial Period

15
Personalized, instant insight across finance and controlling
• Leverage the same information
for external disclosures and for
management reporting
• One logical view across finance
(FI) and controlling (CO)
• Aggregation on the fly across all
balances and dimensions based
on transactional data
• Personalized reports across
finance, controlling, and operations

16
Role-based, personalized dashboards
with granular drill-down
Role-based dashboards
• General Ledger Accountant
• Accounts Payable Manager
• Accounts Receivable Manager
• Collection Specialist
• Credit Manager
• Cost Center Manager
• Cash Manager
Additional roles are planned

18
Integrated Financial Planning across an organization
Production
Planning
Strategic
Planning
Sales
Planning
Price
Planning
Investment
Planning
Procurement
Planning
Headcount
Planning
Marketing
Planning
Cost
Planning
Revenue
Planning
Balance Sheet
and
Profit & Loss
Planning
Profitability
Planning

19
Prediction and simulation enable better business decisions
• Drill-down on drivers of profitability including
customer, product, geography and channel
• Full access to financial master and
transactional data in SAP ERP for planning
and what-if analysis
• Identification of trends using prediction
• Simulation and prediction to determine the
financial impact of business options

20
Simple Finance with S4 HANA
S4 HANA
SAP HANA Platform
Aligned
Single Source of Truth
Agile
Real time processes
Predictive
Dynamic Planning and Analysis
SAP Cash Management
powered by SAP HANA
New product for
Group Cash Management
SAP Accounting
powered by SAP HANA
Alternative in-memory
functionality for ERP customers
SAP Integrated Business
Planning for Finance
New capabilities and enhanced
integration for ERP and BPC

22
S4 HANA
SAP HANA Platform
Aligned
Agile
Real time processes
Predictive
SAP Cash Management
powered by SAP HANA
New product for
SAP Accounting
powered by SAP HANA

23
SAP Accounting powered by SAP HANA
Insight from a single source of truth – flexible and harmonized
 One source for financial and
management accounting
 Real time reporting without replication
to a data warehouse
 Line item based and extensible
 Not limited by totals or pre-configuration
 Fast and flexible reporting
 Self-service analytics
 Intuitive user experience
 Availability on multiple devices
 Continuous intra-month processes
 Soft close – better insight at any time
 Hard close – accelerated month-end
closing tasks

24
Challenges of the Current Architecture
Multiple Sources of Truth
Challenges
 The combined content of several tables
represents “the truth” in SAP ERP.
Reconciliation efforts are required by design.
 Need “to move” data to the appropriate table
for reporting (e.g. “settlement”)
 Different level of detail stored in the respective
components/tables
 Components are structured differently (e.g.
fields/entities differ)
 Different capabilities in the components
(customer fields, currencies, multi-GAAP etc.)
 Performance often required the usage of a
data warehouse introducing another
redundant repository.
 Multiple BW extractors needed to cover the
complete truth in data warehouse.
Business
Warehouse
Reconciliation

25
SAP Simple Accounting architecture
Before After
Separate systems with objects created in
advance and updated in batch
Consolidated financial system with no need for pre-
computed aggregates or ETL replication
Interface
Combined FI-CO Document
HANAViews on-the-fly
Interface
OM PA GL Cons SL A/P A/R
GL A/P A/R
FI CO
Aggregates
Indices
Financial
Documents

26
Harmonized Internal and External Reporting
SAP Accounting
powered by
SAP HANA
FI
Financial Reporting Management Reporting
FI CO
CO-PA
Dimensions
Traditional Financial
Reporting Scope
Unified Reporting
including
Profitability
ERP
Financials
Comprehensive Reporting incl. CO and CO-PA detail with SAP Accounting powered by SAP HANA
 Reporting is not limited by application boundaries
 Run one report (e.g. P&L) and drill-down to any dimension available in the financial documents
+ +
CO CO-PA
Or
Or

27
Universal Journal
Single repository of journal entries across multiple applications without redundancy
Custom
specific
Universal
Journal
Public
Sector
Joint
Venture
Profitability
Analysis
Fixed
Assets
Material
Ledger
Accounts
Receivable
Mgmt.
Accounting
Accounts
Payable
General
Ledger
This enables deeper, instant insight across all dimensions, easier extensibility, and
process optimizations for an accelerated financial close.

28
Universal Journal
Planned Architecture
 Concept: “Take the best of all worlds”
(e.g. ledger, market segment, coding
block, etc.)
 ONE line item table with full detail for all
applications - for instant insight &
extensibility
 This replaces the “logical document” of
release 1.0.
 Secondary cost elements are G/L
accounts.
 Data stored only once: no reconciliation
needed by design
 Reduction of memory footprint through
elimination of redundancy.
 Fast multi-dimensional reporting
possible without replicating data to
business warehouse (BW).
 If BW is in place anyway, only one
single extractor needed.
A universal journal entry can have (technically) up to 999,999 line items 
less or no need for summarization (depending on data volume)

29
Enhancements of Profitability Analysis
SAP Accounting focuses on the integration of account-based CO-PA
Account-Based CO-PA
 Several enhancements delivered making it more powerful. It is planned to continue into this direction.
 Split of cost-of-goods-sold posting on multiple accounts (by cost component)
 Split of production variance posting on multiple accounts (differentiation of price / quantity effects)
 Three new quantity fields in CO line items + BAdI for conversion of logistic quantities to common quantities
(e.g. products sold in different box sizes – but KPI in Finance is calculated on tons/KG of products)
Costing-Based CO-PA
 Product continues to exist and be supported, but no enhancements with SAP Accounting.
 Customers can run account-based and costing-based CO-PA in parallel.
 Customers should assess their valuation in FI versus valuation in costing-based CO-PA
– If different, continue using costing-based CO-PA
– If the same, customer may consider switching to account-based CO-PA.

30
Convergence of G/L Accounts and Cost Elements
Master Data
 All cost elements are now G/L accounts.
 Differentiation by attribute “account type” in the G/L account master.
 Secondary cost elements are blocked against manual postings.
 Maintenance of cost elements is done via G/L account maintenance.
 The old cost element table is updated in the background.
Hierarchies
 Secondary cost elements need to be added to the account hierarchy (FS stmt. version)
 Management accounting continues to work with cost element groups, currently.
 As a consequence, hierarchies need to be also maintained in CO for the moment.
Multiple account assignments
 These are possible (e.g. cost element by internal order and cost center).
 There is one primary account assignment per cost element which is relevant for subsequent processes.

31
Universal Journal
Uniform Extensibility with Customer Fields
Capabilities
 The Universal Journal can be extended with customer fields.
 Simplified extensibility by enhancing just this ONE line item table.
 No technical limitation on the number of dimensions (though performance to be considered)
 P&L line extension using “CO-PA capabilities”, i.e. field definition including rich derivation tools.
 “Coding Block” extensibility like in SAP ERP.
 The SAP HANA based reporting can use both kinds of customer fields.
Universal Journal
…
Standard
Field x
Standard
Field x+1
zzcust01 zzcust02 … wwprof01 wwprof02 …
“Coding Block”
extensibility
“CO-PA”
extensibility

32
Significantly Reduced Reconciliation Effort
 Obsolete – Reconciliation of multiple ledgers ** – due to universal journal
 Obsolete – Reconciliation Ledger ** – due to universal journal
 Obsolete – FI versus CO and sub-ledgers – due to universal journal
 Obsolete – FI versus CO-PA * – due to universal journal
 Obsolete – Reconciliation of totals vs. line items – because totals are dropped
 Obsolete – Reconciliation of ERP and data warehouse – due to real-time analytics on SAP Accounting
 Faster financial close and lower costs
* for account-based CO-PA
** already available with New G/L in SAP ERP

33
Highest Granularity
Fully Line Items Based
 All dimensions are available for fast analysis with SAP HANA
 No limitations by pre-defined totals or aggregates
 Flexibility in alternate reporting scenarios
Extensibility
 Universal journal can be easily enhanced with custom dimensions
 Planned innovation: making new fields easier available in reporting
Non-Disruptive Innovation
 Total tables and indices are virtualized by “compatibility” views.
 Custom programs / reports with read access to old tables continue to work.
Further Benefits
 Less memory consumption  Lower TCO
 Higher throughput for database updates  Faster processes

34
Index tables removed Aggregate tables removed
BSIS Index for G/L Accounts
BSAS Index for G/L Accounts (Cleared Items)
BSID Index for Customers
BSAD Index for Customers (Cleared Items)
BSIK Index for Vendors
BSAK Index for Vendors (Cleared Items)
BSIM Index, Documents for Material
FAGLBSIS Index for G/L Accounts – New G/L
FAGLBSAS Index for G/L Accounts – New G/L (Cleared Items)
GLT0 General Ledger: Totals
GLT3 Summary Data Preparations for Consolidation
FAGLFLEXT New General Ledger: Totals
KNC1 Customer master (transaction figures)
LFC1 Vendor master (transaction figures)
KNC3 Customer master (special G/L transaction figures)
LFC3 Vendor master (special G/L transaction figures)
COSS Cost Totals for Internal Postings
COSP Cost Totals for External Postings
List of Tables Replaced by Compatibility Views (1)
Changes in SAP Simple Finance add-on 1.0.

35
Tables removed Tables removed
FAGLFLEXA New General Ledger: Line items
COEP Cost Line Items
ANEK Fixed Assets: Document header
ANEP Fixed Assets: Line items
ANEA Fixed Assets: Line items for proportional values
ANLC Fixed Assets: Cumulative values
MLHD Material ledger: Document header
MLIT Material ledger: Line items
MLPP Material ledger: …
MLPPF Material ledger: …
MLCR Material ledger: …
MLCRF Material ledger: …
MLCD Material ledger: …
CKMI1 Index for accounting documents
BSIM Secondary index for documents on material
List of Tables Replaced by Compatibility Views (2)
Changes in SAP Simple Finance 1503 (formerly known as SAP Simple Finance add-on 2.0).
COEP is kept for prima nota of manual CO postings and non-actual items, ML tables are kept for prima nota and actual costing,

36
Non-Disruptive Approach – Tables are „Virtualized“
Read access from custom ABAP programs or reports to prior tables will work as before
Read access is automatically re-directed to the universal journal as the new single source of truth.
Advantage of the new architecture: no more reconciliation and reduction of memory footprint.
GLT0
FAGLFLEXT
COEP
…
Redirect
Compatibility
Views
Universal
Journal
ReadSelect
Custom program
or report

37
Significantly Reduced Memory Consumption
HANA data base compression
No more persistent indices and aggregates/totals
No more redundant repositories
No replication to data warehouse system for operational reporting
 Lower TCO and higher through-put
Significant smaller data
footprint observed based
on real customer data
Universal
journal
entries
Other DB
(GB)

38
Asset Accounting
Innovations in SAP Accounting powered by SAP HANA
Flexibility concerning “Leading Valuation”
 No more hard coupling of depreciation area 01
Only one Depreciation Area per Valuation necessary
 No further depreciation areas (delta areas) necessary to portray a parallel valuation
No restrictions to set up different account determinations in different valuations
Real-time postings per accounting principle/valuation
 Common understanding of posted document
 Posting to different periods possible (restriction: beginning/end of FY needs to be equal)
New transactions for accounting principle (depreciation area) specific documents
Always separate documents per accounting principle (FI-AA)
 Post the values correctly right from the beginning, using multiple parallel documents
 Parallel valuation of acquisition values immediately with the activation of an Asset under Construction

39
Asset Accounting
Innovations in SAP Accounting powered by SAP HANA
 Reporting is based on line items – removal and virtualization of totals
 All non-statistical line items in asset accounting are stored as universal journal entries.
 No more reconciliation effort with G/L and within asset accounting itself.
Instant Insight
 Depreciation posting in B/S and P&L by single asset
 Reporting on any CO object by single asset (e.g. depreciation on cost center by asset)
Accelerated Financial Close
 Significant speed-up of asset depreciation run (amounts to be posted are calculated real-time and no more as
part of the depreciation run itself)
 Periodic posting runs are fully obsolete due to real-time update of assets

40
Appendix Ledger
Flexible Management Views despite Unification in Accounting
Base Ledger Local GAAP
Appendix Ledger A
“Post into closed periods
for restatement purposes”
Appendix Ledger B
“Distribute revenues
differently on org units
than in legal view”
Appendix Ledger C
“Adjustments for
consolidation purposes”
Universal Journal
Planned Innovation
 Ledgers can be stapled on top of each other providing
a flexible mechanism for adjustments and reporting.
 An important use case are management views on top
of legal data.
 Besides creating a master record, appendix ledgers
need no additional configuration.
 Reporting on the appendix ledger always includes the
data of the base ledger.
 Multiple appendix ledgers can point to the same base
ledger.
 Appendix ledgers can point to another appendix ledger
instead of a base ledger - creating a hierarchy of
ledgers.
 Benefit of reduced data footprint
 Benefit of reduced reconciliation as only (manual) delta
postings are maintained in the appendix ledger.

41
Intuitive User Experience of SAP Simple Finance
“Personalized information for end users with granular drill down“
Business Intelligence Renewed Managerial Roles Renewed Transactional Roles
Web Financial Statement
Web Journal Entry Analyzer
SAP Analysis for Office
SAP Lumira
SAP Business Explorer
SAP Design Studio
Chief Financial Officer
Financial close manager
Cash manager
Receivables manager
Payables manager
Finance for managers
General ledger accountant
Accounts receivable accountant
Accounts payable accountant
Collections specialist
Dispute specialist

42
Financial Statement – Flexible Drill-down to Any Dimension

43
Flexible Journal Entry Analyzer

44
Reporting with SAP BusinessObjects Business Intelligence
 Lumira
 Explorer
 Analysis for Office/for OLAP
Discover. Predict. Create.
 Design Studio
 Dashboards
Build engaging experiences
 Crystal Reports
 Web Intelligence
Share information
Discovery and Analysis Dashboards and Apps Reporting

45
Reporting and Analysis Flexibility with Analysis for Office *
User-defined reporting
• Users can explore data on the fly by
restricting financial statements to self-defined
data sub-segments
• SAP will continue to provide standard reports
but with focus on frequently used reports
Available information
• All record dimensions can be used for
segmentation
• Unrestricted selection of multiple dimensions
for segmentation
• Customer-specific dimensions can be added
and are available for segmentation
* SAP BusinessObjects Analysis Edition for Microsoft Office

46
Reporting and Analysis Flexibility
Multi-Dimensional Reporting in the Balance Sheet
Balance Sheet Fixed Assets by Assets
Receivables by Customer
Inventory by Material
Carry forward can be configured to keep the detail for selected dimensions

47
Reporting and Analysis Flexibility – Work in Process
Customer Benefits
• Insight into the “work in
process” account
in the balance sheet
• Detail by production
orders not finished at
period-end
• Drilldown to deeper
levels like cost elements

48
SAP Smart Business Cockpits
 Financial Close
 Receivables Manager
 Payables Manager
 Cash Manager
 Finance for Managers
“A new information experience for decision makers.“

49
SAP Smart Business for Receivables Management
SAP Smart Business for Receivables Management
supporting the receivables manager / accountant
to monitor / run a continuous process
SAP Customer Financial Fact Sheet
enabling sales representatives to resolve
open issues directly with the customer
Real time

50
SAP Smart Business for Financial Close
 Cockpit to monitor the progress of the entity close via
KPI’s, also on a mobile device
 Analyze the completion rate of closing tasks by
multiple dimensions like region, country, company,
milestone, working day, etc.
 Monitor the tasks delayed and tasks in error with easy
collaboration to respective task owners
 Analysis of historic closing cycles
 Closing information is read in real-time from the SAP
Financial Closing occkpit
 Solution shall be expanded to other SAP solutions for
the financial close (future direction)

51
SAP Smart Business, executive edition *
Innovations Key benefits
• ŸFramework for corporate decision management based on real-
time information from SAP HANA
• Data modelers (IT) can define suitable data views / data sets,
define KPIs, and visualization components
• Dashboard composers (business experts) can create dashboards,
adjust components, define global filters
• Dashboard consumers (end users) can set personal filters and
thresholds, arrange screens, analyze KPIs, collaborate to get
insight (planned), finally trigger actions (planned)
• ŸFlexible cockpits for executives, managers and business experts
putting business into the driver seat
• Common KPI repository throughout a company
• Supports a corporate information design for intuitive and
consistent visualization
• High performance analytics
• Insight to action and collaboration
• Leverages SAP HANA content for finance
* separate shipment program

52
Fiori Launchpad
Customer Benefits
• Intuitive user experience
• Personalized dashboard
• Launchpad for activities
• Combines transactional and analytical work
• Access to master data
• Includes collaboration functionality
• Works seamlessly across multiple devices
• App to app navigation

53
Renewed Transactional Roles – Example G/L Accountant
Financial Statement
G/L Balances
G/L Line Items

54
Accelerated Financial Close for Real-Time Financial Insight
Instant
Insight To
Action
Real Time
Process
Execution
Personalized
analytics
Automation of
manual tasks
Real time
reporting
Intra-period
simulations
Continuous intra-
period execution
Acceleration of
bottleneck steps
Continuous
Process
Process Status
Analytics
Transaction
Monitoring
Control and
Risk Analytics
Real Time Process
Oversight

55
Soft Close – Better Insight within the Period
 Continuous intercompany reconciliation and goods / invoice receipt reconciliation
 Real-time profitability by earlier derivation of market segment information (less settlements)
 Correct asset acquisition values at any time – no more periodic posting run required
 Analysis of costs across multiple cost objects types
 Asset depreciation posted by asset in B/S and P/L
Hard Close – Elimination of Closing Tasks
 Elimination of huge reconciliation efforts by the introduction of the universal journal
 See first three improvements mentioned under “Soft Close”
Hard Close – Acceleration of Closing Tasks
 Speed-up of material ledger close, accrual and overhead calculation, allocations, results analysis, variance
calculation for production orders/cost centers, work in process calculation, settlements, asset depreciation, …
 Significant speed-up of all kind of reporting for better business decisions (through faster insight and easier
simulation) and higher quality (through easier root-cause analysis)

56
Intercompany Reconciliation
Continuous Reconciliation by Eliminating Batch Loading and Matching
Continuous Reconciliation
 Execute at any time in the period with immediate results,
thus avoiding bottlenecks at period-end
 Direct access to open items in accounts receivables and
accounts payables stored in SAP HANA
 No more batch loading for companies managed in the
same system
 Automatic matching on the fly – no more batch process
Modern User Experience
 Easy to navigate web user interface
 Better process oversight through new dashboard
 Improved reporting and collaboration

57
SAP Invoice and Goods Receipt Reconciliation
Fast and Efficient Reconciliation Aligning Multiple Stakeholders
Fast Reconciliation
 Single app replacing multiple back-end transactions
 Modern HTML5 web user experience
 Configurable analytics with multiple KPIs
 Real-time insight into invoices, good receipts, master data
and supporting information
 Drilldown to core transactions in SAP ERP
Efficient Collaboration
 All contact data in one screen
 Telephony support (phone, SMS)
 Documentation of processing steps and status

58
Real-Time Profitability (1/3)
Instant Insight
 Early derivation (time of primary posting) of market segment information
– Posting on sales order item  provide all market segment information
– Posting on cost center / internal order  provide e.g. product group via CO-PA derivation tool
– Posting on customer project  derive market segment from settlement rule or via assigned sales order
 Universal Journal stores “real” and “statistical” account assignments (“attributes”)
– Both are available for analysis, but only “real” assignments are subject to further processing.
 Elimination of period-end closing tasks for deriving market segment information
– No more settlement of sales order items
– No cost center allocations to profitability

59
We get richer data faster:
 Profitability characteristics
are immediately derived at
the point in time of each
“primary” document.
 Approach: Take all information
that is available and known at
this point in time. Post to a “CO
object” and fill market segment
attributes in one step.
 No settlement run needed
to show relevant market
segment information in
profitability
 We write a market segment
information to each P&L line
immediately
 Example on the left: Immediate
assignment of a market segment
to salary costs
Example: Posting of salaries and immediate assignment of the respective market segment
G/L Account Cost Center Market Segment Debit Credit
Salaries and wages Development BRAKES CARS
20.000 €

60
We get richer data faster:
 Full level of detail stored for
use in all components.
 Example 1: Fixed asset
causing the depreciation is
available in cost center
reporting.
 New structural capabilities:
Ability to analyze costs for all
cost object types together
 Example 2: Air travel costs can
be analyzed across different
CO-objects in one report
 Further specific analysis by
market segment is possible
without waiting for the closing
process to happen.
 Example 3: Air travel for
customer projects by region

61
Acceleration of Period-End Processes
Code Push-Down to SAP HANA
Functionality Old transaction New transaction
Settlement (plant selection) CO88 CO88H
Settlement (make-to-order sales orders) VA88 VA88H
Settlement (internal orders) KO8G KO8GH
Settlement (projects) CJ8G CJ8GH
Results Analysis (POC method or revenue-based) KKAK KKAKH
WIP Calculation at Actual Costs KKAO KKAOH
Variance Calculation with Full Settlement KKS1 KKS1H
Variance Calculation for Cost Centers KSS1 KSS1H

62
Significantly Reduced Memory Consumption
HANA data base compression
No more persistent indices and aggregates/totals
No replication to data warehouse system for operational reporting
Lower TCO and higher through-put
18,5x
Smaller data footprint
observed based on real
customer data

63
SAP Accounting and SAP Simple Finance are great …
But how do I get there ?
SAP Accounting powered by HANA
SAP R/3
4.6CSAP R/3
4.6C
SAP R/3
4.6C
SAP R/3
4.6CSAP R/3
4.6CSAP ERP
SAP R/3
4.6CSAP R/3
4.6CNon SAP
Universal
Journal
SAP HANA
Adoption Dilemma

64
Option 1: Upgrade and Migrate
(all instances)
Option 2: Upgrade, Migrate and Consolidate
(reduce number of instances)
Option 3: Replicate into a Central Finance
(and optionally reduce number of instances over the time)
Deployment Scenarios for SAP Accounting / Simple Finance
SAP ERP
or
SAP R/3
SAP ERP
or
SAP R/3 SAP ERP 6.0
EhP7 on HANA
Migrate
Simple
Finance
SAP ERP 6.0
EhP7 on HANA
Simple
Finance
Replicate
Real-time
Reconciled
Central Finance
instance
source system(s):
 SAP (any release)
 non-SAP systems
Migrate
SAP ERP
or
SAP R/3
SAP ERP 6.0
EhP7 on HANA
Simple
Finance

65
Migration to SAP Accounting powered by SAP HANA
Migration to the G/L in SAP Accounting is fast and easy.
 Duration and effort for the migration is small. It can be executed at any period end.
 It is supported by a migration guide and monitor. There is no required SAP migration service.
 Changes to coding blocks, external interfaces, security, reporting etc. are optional
The New G/L is NOT a pre-requisite for an implementation of the G/L in SAP Accounting
 Both, customers with the classic G/L or the new G/L can implement SAP Accounting.
The G/L in SAP Accounting is more powerful than the New G/L in SAP ERP
 It provides all the capabilities of the new G/L.
 It is further optimized for SAP HANA – e.g. no totals tables, convergence with CO, better reporting
Additional Notes for Customers with the classic GL
 As part of the migration, classic G/L data is automatically transferred to the new data structures.
 Existing PCA (profit center) and SL (special ledger) functions and features can remain in place.
 Subsequent optimization (like adoption of parallel ledger or document split) is a recommended later option. SAP plans to add respective
optimization functionality in 2H 2015 (subject to change).
 Customers already running a migration project to new G/L in SAP ERP with a planned go live in Jan 2016 should continue this project.

66
SAP ERP with New G/L
SAP Accounting
At any period end
Migration is fast
and easy
Migration from SAP ERP with New G/L to SAP Accounting
Preparation &
Blueprint
Installation &
Migration
Post Migration
Activities
Additional
Configuration
• Test processes in test environment or release productive system
• Post migration activities, e.g. moving index tables into cold store
updating due dates and offsetting account information in BSEG
• Installation of SAP Simple Finance add-on
• Manual configuration and migration of confguration
• Data migration, e.g. of line items and balances into the universal journal
• Migration checks, e.g. check compatibility views against original values
• Pre-checks, if Simple Finance add-on can be installed on current system
• Blueprint for process redesign and reporting / check interfaces & custom code
• Consistency checks and reconciliations
• Period end close and financial reporting
• Configuration of Fiori Applications
• Application-specific configuration, e.g. for planning or reporting

67
Migration from SAP ERP with Classic G/L to SAP Accounting
SAP ERP with Classic G/L
SAP Accounting
At any period end New G/L in SAP ERP
At year end only
At any period end
Alternate approach
(if New G/L migration project already
started or functionality urgently required)
Subsequent Optimization (planned)
 Introduction of additional ledgers
 Introduction of document split
 Change from parallel accounts to parallel
ledgers
Recommended
Approach
Migration is fast
and easy
Preparation &
Blueprint
Installation &
Migration
Post Migration
Activities
Additional
Configuration

68
Central Finance
Centralization in a distributed system landscape
Innovations
 Real-time replication of FI and
secondary CO postings from several
source systems into a central simple
finance system
 Document drill back to the original FI
document in the source system
 Replication of cost objects (production
orders, product cost collectors, and
internal orders) from source systems to
the central system
 Mapping functionality for harmonization
of master data before posting into
central finance
 Access to existing master data
mapping from SAP Master Data
Governance (optional)
 Centralized error handling with the
error correction and suspense tool
Benefit from SAP Simple Finance while not
touching your existing system landscape

69
S4 HANA
SAP HANA Platform
Aligned
Agile
Real time processes
Predictive
SAP Cash Management
powered by SAP HANA
New product for
SAP Accounting
powered by SAP HANA

70© 2014 SAP AG or an SAP affiliate company. All rights reserved. 70
Introducing SAP Cash Management powered by SAP HANA
 Analyze global bank balances and
cash positions based on data from
SAP and non-SAP systems
 Integrated liquidity forecasting
including cash flow analysis using
multi dimensional real-time analytics
 Central Bank Account Management
including overdraft limit analysis, bank
risk analysis, signatory management
and workflow support
 SAP Fiori and Smart Business for
Cash Managers, a cockpit to monitor
critical KPI’s, also on a mobile device
SAP Cash Management powered by SAP HANA

71
Integrated Treasury Platform
Market Places
SAP
Banks
Cash Position
Cash Forecasting/Planning/Simulation
SAP Treasury Solution
APIAR
HANA Platform + Simple Finance Add On
Bank Account Management
Market Data
 Payments
 In House Bank
 Bank Statements
 Monitoring
 Status Management
 Signatory
 FX Management
 Debt Management
 Investment Management
 Correspondence Framework
 Limit Managment
 Exposure Management
 Hedge Management
 Risk Management
Others …

72© 2014 SAP AG or an SAP affiliate company. All rights reserved. 72
Daily financial
statement in real
time
Actual-Cash flow
Analysis
Liquidity
Forecast
Liquidity Planning
Centralized Bank
account
Management
SAP Accounting powered by SAP HANA Integrated Business Planning

73
Cash Operations
Centralized Cash Management
 Cash Operations for the day to day management of
the corporates working capital cash
 Monitoring incoming bank statements
 Preparing a daily forecast of cash receipts,
disbursements and expected closing balances
 Overseeing bank risk
 Initiating bank transfers and payments
 Approving and monitoring payments

74
Morning Tasks of a Cash Manager
Bank Statement
Monitor whether bank
statements have all
been imported
successfully.
Cash Position
Review yesterday’s
bank-confirmed
position, and forecast
today’s closing
balance.
Bank Transfer
Make bank transfer in
case of deficit or
surplus.
Payment Approval
Approve big-amount
payment or bank
transfer.

75
Start from KPIs to High-level Breakdowns…
Understand whether all bank statements have been
imported successfully on time.
Analyze your cash position by Country, Currency,
Company Code, or Bank

76
…Navigate to Cash Disposition to Forecast Today’s
Closing Balance…
Drill-down to Cash Disposition
on currency or bank accounts.
Make detailed analysis on the
forecasted cash flows and
closing balance of today.
Incorporate payments, memo
records, and Treasury
instruments to help you
forecast today’s closing
balance

77
…Drill-down to Payment Details…
If necessary, drill-down to
payment details to analyze
what are behind the
forecasted amounts.
Single view to analyze the
complete lifecycle of a
payment: memo records 
payment  bank
communication status 
reconciliation status.

78
…Once You Are Sure of the Forecast, Start
Bank Transfer…
Once you are sure of the deficit or surplus of
today’s closing balance, you may trigger bank
transfer directly from Cash Disposition.
Can track my bank transfers’ status.
Very simple and intuitive to use.

79
…Approve or Reject Payments…
Approve or reject payments on desktop,
or mobile devices, before the payment
is sent to the banks.

80
…Finish Up the Morning Tasks
Information to support precise and
thorough forecast
Efficient decision making
Take actions right away
Finish the task anywhere
All instructions sent to banks
before the cut-off time!

81
Centralized Bank Account Management
 Approval process for Bank Account Opening ,
adjustment, and Closing
 Separate Bank Account Master Data from G/L
accounts
 Signatory integrated with BCM Payment Approval
 Plenty of attributes reflecting controls on both bank
side and internal side
 Bank Account yearly review process
 Navigation to Cash Position and Bank Statement
Monitor Reports
Bank Account
Management
New
Bank Account
Master Data
Change History
Workflow for
Bank Account
Integrated with
BCM Payment
Approval
Bank &
Bank Account
Hierarchy
Overdraft Limit

82
Process to Open a Bank Account (an example)
Request
Subsidiary financial
manager requests to
open a bank account,
with business reasons
attached.
Approve
Group Cash Manager
reviews the request,
compare with the
existing bank accounts,
and decide to approve
or reject the request.
Open in the Bank
Bank Relationship
Manager negotiates
with the bank on the
contract, gets the bank
account opened in the
bank, and fills in all the
detailed information of
the account.
IT Configuration
IT consultant makes
necessary
configurations in the
system, to really enable
the bank account into
the payment and bank
statement processes.
Bank Account Management (BAM) in SAP Cash Management powered by SAP HANA leverages SAP’s
NetWeaver Workflow to standardize the process and link all involved people together.

83
Overview of Your Bank Structure and Bank Accounts
Bank Accounts managed centrally
Bank & Bank Account Hierarchy
Fast Search
Bank Account easily maintained

84
Overview of Your Bank Structure and Bank
Accounts – List View

85
Bank Account – General Data

86
Bank Account – Payment Signatory
Payment Signatories linked to Bank Communication
Management. Payment approval route is decided
by the signatories defined here.

87
Bank Account – Change History

88
Workflow Inbox for bank account approval

89
Workflow Inbox for bank account approval

90
Benefits
 Manage all bank account data and
signatories centrally in one single system
 Ensure integration between payment
approvals and bank account signatories
 Satisfy internal and external audit and
regulation requirements
 Increase compliance and corporate
governance through consistent processes
 Automate data exchange for account
requests, opening, maintenance and
closure through workflow capabilities
 Provide change history for bank accounts

91
Liquidity Planning
Liquidity Forecast
Cash Position
1-5 days Up to 24 weeks 1 year
Planning horizon
Bottom up
Up down
Planning process
Cash Management with SAP Today
Terminology

92
Liquidity Forecasting
• Projection of receipts and
disbursements
• Medium-term (1 - 24 weeks)
• Integration of all data in
subledgers
• Sales orders
• FI invoices
• Treasury Deals
• Purchase orders
• Memo records
• Tools for optimizing cash
investment and borrowing
• Safeguarding company liquidity

93
Liquidity Forecast in Detail

94
Rolling Liquidity Forecast
Make Investment and Financing Plan
according to the surplus or deficit of
aggregated cash flows
Analyze and review the overall
Liquidity Status
Subsidiaries make the forecast/
plan on cash flows
Make FX Hedge Plan in case of FX cash
flows need to be hedged
Group Cash Manager triggers
planning cycle

95
Rolling Liquidity Plan Process
Rolling plan cycle management, and planning status monitoring for
Group Cash Manager;
Highly integrated cash information as the starting point of planning:
 Bank opening balance from the system;
 Three different Planning suggestion sources:
– Automatic Liquidity Forecast
– Planned value of last cycle
– Actual value of last year
Variance analysis:
 Plan – Actual
 Plan – Forecast
 Plan from different versions
FX Hedge Plan, Investment and Financing Plan

96
Liquidity Planning Process Template
Group Cash Manager
manages the planning
cycles.
Once triggered, the
planning cycle will be sent
to all involved subsidiaries/
people.

97
Activity Workflow for Liquidity Planning
Subsidiaries receive the
planning cycle, with the
activities they need to
perform

98
Email Notification of Activities To Be Performed
Subsidiaries also receive
email notification about the
planning cycle and
activities to be performed.

99
Planning data entry layout.
Automated forecast,
planned amounts from last
planning cycle, and the
actual amounts of last
year, could be the
suggested amounts of the
planning

100
Copy suggested amounts with a certain factor…

101
Variance analysis on a specific Liquidity Item

102
Plan/Actual/Forecast comparisons

103
Compare all plan versions
Compare with all
versions from the rolling
plan/forecast

104
Deployment Option 1 – Central ERP/Financial
HANA
Business Suite on HANA
SAP Cash
Management powered
by SAP HANA
In-house Cash
Bank Communication
Management
Treasury & Risk
Management
SD
MM
PP
PS
SAP Accounting
powered by SAP HANA
Financial Operations
Financials
Simple Finance Add On for Business Suite on HANA

105
Deployment Option 2 – Cash & Treasury Solution
Side by Side
HANA
ERP (anyDB)
SAP Cash
Management powered
by SAP HANA
In-house Cash
Bank Communication
Management
Treasury & Risk
Management
RFC
In order to integrate
necessary data from
Logistic and FI
Payment Orders
to IHC
Simple Finance Add on for Business Suite on
HANA
Financial Accounting
Management
Accounting
Payment
SD
MM

106
Deployment Option 3 – Cash Management
Side by Side
HANA
ERP (anyDB)
SAP Cash
Management powered
by SAP HANABank Communication
Management
In-house Cash
Treasury & Risk
Management
Financial Accounting
Management
Accounting
Payment
SD
MM
SLT/RFC
In order to replicate
necessary data from
Logistic and FI
Simple Finance Add on for

107
Architecture
Smart Business
Transactional
Fiori
Fiori
WebDynpro Design Studio
HANA
KPI
Definition
VDM
NetWeaver
Gateway/oData
XS
Embedded BPC/BW/PAK
ABAP
Calc Views Real-time Cube
Cash Operations Bank Account
Management
Liquidity Management

108
S4 HANA
SAP HANA Platform
Aligned
Agile
Real time processes
Predictive
SAP Cash Management
powered by SAP HANA
New product for
SAP Accounting
powered by SAP HANA

109
What is Integrated Business Planning for finance
 SAP BPC 10.1, version for SAP NetWeaver,
powered by SAP HANA ‘embedded’ in SAP
Business Suite on SAP HANA
 Effectively Replaces current planning
capabilities within SAP ERP*
 Allow plans to access data and master data
real time from SAP ERP
 Functional content included with Integrated
Business Planning for finance to allow for
easier deployment
*Existing planning capabilities within SAP ERP do still exist if a customer were to choose not to use Integrated Business
Planning for finance.

110
Integrated Business Planning for finance
Agile Planning across the enterprise
 Engage across Finance and SAP ERP by consuming data
for actuals and plans with one tool and consistent user
experience
 Rapidly deploy pre-packaged templates and functional
content for real time planning with instant access to ERP
for transaction data and master data
 Allows not only for the entry of but rather the development
of plan values directly within a single application.

111
Real Time Planning across the enterprise
 Access Actual data real time so as to be able to compare
to plan variances instantaneously
 Increase accuracy leveraging allocations and calculations
used for actuals with budgets and forecasts
 Plan at any level of detail across the enterprise and
aggregate data on the fly from actuals transactions

112
Common Planning across the enterprise
 Save time and reduce errors with a single, integrated
solution for planning and actuals across the enterprise
 Lower cost of ownership and reduce data duplication with
by planning directly on existing SAP BW and ERP objects
 Eliminate silos, reduce errors by working across multiple
planning functions through one system on a fully
integrated basis.

113
SAP Simple Finance Add-on
to SAP Business Suite
powered by SAP HANA
SAP Hana Platform
* BPC NW 10.1 =
BPC/BW IP
combined
UI
SAP NetWeaver BW
& BPC NW 10.1*
“embedded”
Planning Engine
Planning DataActual DataMaster Data
Configuration
Data
Exposure Data
SAP Cash Management
powered by SAP HANA
SAP Accounting
powered by SAP HANA
Integrated
Business Planning for
finance
ExcelWeb Mobile

114
How is IBP for finance related to SAP BPC NW?
 SAP Business Planning and Consolidation
10.1, version for SAP NetWeaver includes
two modeling types: Standard &
Embedded
 Integrated Business Planning for finance is
based on the SAP Business Planning and
Consolidation Embedded modeling type
 Integrated Business Planning for finance
delivers content (templates, queries,
planning functions) not available with SAP
Business Planning and Consolidation
 Integrated Business Planning for finance
unlike the SAP Business Planning and
Consolidation Standard model is NOT an
add-on

115
What is the “Embedded” BW?
What is an Embedded BW?
 Since NetWeaver 7.0, BW technology is
automatically included inside a NetWeaver
ABAP installation. This is true for ERP systems
e.g. ECC 6.0 and higher and also others, e.g.
CRM 7.0 and higher, etc. The BW technology
that exists inside such an ABAP based system
is called ‘Embedded BW’
 The Embedded BW is used in a few Business
Suite scenarios such as:
 a business process (1) e.g. integrated
business planning in the SAP Simple
Finance Add-on for SAP Business Suite
powered by SAP HANA
 or an embedded analytic scenario (2) e.g.
use of BW VirtualProviders for OLAP
scenarios
 From an outside perspective, the product that is
sold to and installed at a customer is the SAP
Business Suite

116
Pre-delivered content with IBP for finance
includes templates that provide support for:
 Cost Center Planning
 Internal Order Planning
 Project Planning
 Profit Center Planning
 Cost of Sales Planning
 P&L Planning
 Market Segment Planning
 Liquidity Planning
also includes:
 Queries
 Planning Functions
 Sequences
 Info-Objects
 Info-Providers

117
SAP ERP Planning vs Integrated Business Planning for finance
 SAP GUI
 Sequential Planning Process
 Cost Center Plan
 Project Plan
 No direct share of values
 Many current customers use this
 HTML5 UI, Analysis for Office
 Parallel Planning Process
 HANA Optimized performance
 Workflow/Workstatus support
 Real time Actuals
 Activity Log
SAP ERP Planning Integrated Business Planning for finance

118
 Comes embedded within the SAP Business Suite on SAP HANA where the
SAP Simple Finance Add-on for Suite on HANA is being utilized.
 Provides significant functional content including templates and calculations
covering multiple planning scenarios
 Allows Companies using traditional financial planning within ERP to rapidly
implement whilst protecting their existing investment. (Minimizes cost and
time to implement)
 Takes advantage of HANA views that support direct real time access to
ERP Master data and the FI-CO document tables.
 Optimal for organizations who have a significant portion of the data upon
which they perform planning within the SAP ERP on HANA system and are
planning against “traditional” FI and CO data structures yet at the same
time provides for truly integrated planning across finance.
 Only applicable to customers who have deployed SAP ERP on SAP HANA
with the SAP Simple Finance Add-on for Suite on HANA (by definition this
would also include any Simple Finance Customer)
SAP Business Suite
Integrated Business
Planning for finance
SAP Accounting powered
by HANA
SAP HANA
Real Time Planning
HTML
5 Web
UI
Mobile
Client
SAP
BI
4.X*
Why use IBP for finance vs SAP BPC NW

119
S4 HANA
SAP HANA Platform
Aligned
Agile
Real time processes
Predictive
SAP Cash Management
powered by SAP HANA
New product for
SAP Accounting
powered by SAP HANA

120
Benefits: Drive financial transformation with instant insight
• Reduce reconciliations and errors with
built-in consistency with one common
view of financial and operational data
• Enable timely and relevant decisions
through real-time processes with
personalized instant insight
• Provide strategic value to the business
with prediction, simulation and analysis
to evaluate business options

121
Example: SAP Simple Project Business*
Forecast of project profitability
 Cross-project analysis to easily identify profitable
customers and projects
 Always up to date with latest transactional
information
 Proactive alerts to drive direct action
Insights into current bids and past projects
 Intuitive project manager self-service creation and
planning of projects
 Real-time capture and faster billing of time and
expenses
 Seamless user experience across front and back
office
Accelerated processing and closing
 Accelerated cash receipt and vendor payment
 Empowered front office to resolve issues directly
with the customer
 Continuous close capabilities
*final product name TBC

122
Example: SAP Hybris Marketing
Target the right customers
 Perform customer segmentation with high speed
on any data
 Build dynamic target groups
 Interpret behavior with scoring and attribution
Listen to your customers
 Capture and analyze customer interactions from
different channels
 Get customer and consumer trends in
a single view
Engage with your customers
 Execute personalized omnichannel campaigns
 Analyze success of campaigns on open,
clicks, and so on
 Monitor impact on funnel and sales orders

123
Example: SAP Simple Logistics and Manufacturing*
KPI-Driven Process Control
 Intuitive graphics for faster insights, interventions
 KPIs constantly recalculated and refreshed
 Always up-to-date view on demand/supply
situation across all BoM levels
Smarter Decision Support
 Proactive notifications of issues
 Pre-evaluation of solution proposals
 Simulation of all proposals before application
Real-Time Execution
 One-click execution of a solution
 Process and data redundancies eliminated, all
aggregates and history tables dropped
 Complex processes (ATP, backorder processing)
executed directly on SAP HANA
*final product name TBC

124
Full choice of deployment
Cloud
Subscription licensing with deployment
in private cloud and maintained by SAP
Hybrid
Combine on-premise and cloud capabilities
to meet specific, modular needs
On Premise
Traditional licensing with customer
control of deployment and maintenance

125
Early adopters
>65%
Faster financial
close processes*
>50%
Faster foreign
currency revaluation*
1,000X
Faster reporting
(from 15 minutes to 1 second)*
>400 hours
Cut from close processes
86% faster
Real-time analytics
91% faster
Automatic maintenance revenue accruals

126
For more information
SAP Simple Finance
www.sap.com/simple-finance
Journey Maps
• SAP Simple Finance
simplefinance.sapjourneymap.com
• SAP Business Suite on HANA
soh.sapjourneymap.com
• SAP HANA Enterprise Cloud
hec.sapjourneymap.com
Line of Business for Finance
www.sap.com/financialsexcellence

Sap simple finance by Keval Shah

Recommended

Recommended

More Related Content

What's hot

What's hot (18)

Viewers also liked

Viewers also liked (12)

Similar to Sap simple finance by Keval Shah

Similar to Sap simple finance by Keval Shah (20)

Recently uploaded

Recently uploaded (20)

Sap simple finance by Keval Shah