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Sap simple finance by Keval Shah

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Sap simple finance by Keval Shah

  1. 1. SAP Simple Finance Transform finance with instant insight Keval Shah Senior Solution Architect SAP
  2. 2. WHY SIMPLIFY? WHAT IS SIMPLIFIED? HOW IS IT SIMPLIFIED?
  3. 3. WHY SIMPLIFY? WHAT IS SIMPLIFIED? HOW IS IT SIMPLIFIED?
  4. 4. 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. 5. 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 (The Next Stage in the Creating Value-Added Finance Function, CFO.com, 2014)
  6. 6. 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 (The Next Stage in the Creating Value-Added Finance Function, CFO.com, 2014) 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. 7. 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 (The Next Stage in the Creating Value-Added Finance Function, CFO.com, 2014) 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. 8. 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 (The Next Stage in the Creating Value-Added Finance Function, CFO.com, 2014) 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. 9. 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
  10. 10. WHY SIMPLIFY? WHAT IS SIMPLIFIED? HOW IS IT SIMPLIFIED?
  11. 11. 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. 12. 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. 13. 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. 14. 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. 15. 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. 16. 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
  17. 17. 17
  18. 18. 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. 19. 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. 20. 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
  21. 21. WHY SIMPLIFY? WHAT IS SIMPLIFIED? HOW IS IT SIMPLIFIED?
  22. 22. 22 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
  23. 23. 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. 24. 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. 25. 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. 26. 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. 27. 27 Universal Journal Single Source of Truth 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. 28. 28 Universal Journal Single Source of Truth 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. 29. 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. 30. 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. 31. 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. 32. 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. 33. 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. 34. 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. 35. 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. 36. 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. 37. 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. 38. 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. 39. 39 Asset Accounting Innovations in SAP Accounting powered by SAP HANA Single Source of Truth  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. 40. 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. 41. 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. 42. 42 Financial Statement – Flexible Drill-down to Any Dimension
  43. 43. 43 Flexible Journal Entry Analyzer
  44. 44. 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. 45. 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. 46. 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. 47. 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. 48. 48 SAP Smart Business Cockpits  Financial Close  Receivables Manager  Payables Manager  Cash Manager  Finance for Managers “A new information experience for decision makers.“
  49. 49. 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. 50. 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. 51. 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. 52. 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. 53. 53 Renewed Transactional Roles – Example G/L Accountant Financial Statement G/L Balances G/L Line Items
  54. 54. 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. 55. 55 Accelerated Financial Close 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. 56. 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. 57. 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. 58. 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. Accelerated Financial Close  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. 59. 59 Real-Time Profitability (2/3) 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. 60. 60 Real-Time Profitability (3/3) 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. 61. 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. 62. 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. 63. 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. 64. 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. 65. 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. 66. 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. 67. 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. 68. 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. 69. 69 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
  70. 70. 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. 71. 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. 72. 72© 2014 SAP AG or an SAP affiliate company. All rights reserved. 72 SAP Cash Management powered by SAP HANA 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 Simple Finance with S4 HANA
  73. 73. 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. 74. 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. 75. 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. 76. 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. 77. 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. 78. 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. 79. 79 …Approve or Reject Payments… Approve or reject payments on desktop, or mobile devices, before the payment is sent to the banks.
  80. 80. 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. 81. 81 Bank Account Management 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. 82. 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. 83. 83 Overview of Your Bank Structure and Bank Accounts Bank Accounts managed centrally Bank & Bank Account Hierarchy Fast Search Bank Account easily maintained
  84. 84. 84 Overview of Your Bank Structure and Bank Accounts – List View
  85. 85. 85 Bank Account – General Data
  86. 86. 86 Bank Account – Payment Signatory Payment Signatories linked to Bank Communication Management. Payment approval route is decided by the signatories defined here.
  87. 87. 87 Bank Account – Change History
  88. 88. 88 Workflow Inbox for bank account approval
  89. 89. 89 Workflow Inbox for bank account approval
  90. 90. 90 Bank Account Management 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. 91. 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 SAP Cash Management powered by SAP HANA
  92. 92. 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. 93. 93 Liquidity Forecast in Detail
  94. 94. 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. 95. 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. 96. 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. 97. 97 Activity Workflow for Liquidity Planning Subsidiaries receive the planning cycle, with the activities they need to perform
  98. 98. 98 Email Notification of Activities To Be Performed Subsidiaries also receive email notification about the planning cycle and activities to be performed.
  99. 99. 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. 100. 100 Copy suggested amounts with a certain factor…
  101. 101. 101 Variance analysis on a specific Liquidity Item
  102. 102. 102 Plan/Actual/Forecast comparisons
  103. 103. 103 Compare all plan versions Compare with all versions from the rolling plan/forecast
  104. 104. 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. 105. 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. 106. 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 Business Suite on HANA
  107. 107. 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 SAP Cash Management powered by SAP HANA Cash Operations Bank Account Management Liquidity Management
  108. 108. 108 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
  109. 109. 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. 110. 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. 111. 111 Integrated Business Planning for finance 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. 112. 112 Integrated Business Planning for finance 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. 113. 113 SAP Simple Finance Add-on to SAP Business Suite powered by SAP HANA Integrated Business Planning for finance SAP Hana Platform Business Suite on HANA * 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. 114. 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. 115. 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. 116. 116 Pre-delivered content with IBP for finance Integrated Business Planning 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 Integrated Business Planning for finance also includes:  Queries  Planning Functions  Sequences  Info-Objects  Info-Providers
  117. 117. 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. 118. 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. 119. 119 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
  120. 120. 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. 121. 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. 122. 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. 123. 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. 124. 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. 125. 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. 126. 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
  127. 127. Thank You
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A Good document helpful for people working on S4 HANA Finance. All slides shown in LAB Preview available in 1511 now. If any one find sharing this document violating of copyright please let me know so I can remove.

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