considering a sap central finance deployment? · the standard central finance mapping...

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Considering a SAP Central Finance Deployment?Key Considerations to Help Drive Change Within Your Organization



AGENDA

▪ FP&A with Central Finance

▪ Master Data in Central Finance

▪ Embedded analytics in Central Finance

▪ SAP Planning & Consolidation and Central Finance



Benefits of Central Finance

4

Saves reconciliation efforts

Master data simplification

Real time replicationHarmonized Financial

ReportingNon-Disruptive

• Since data is being replicated from source to target, the source system is not disrupted during go-live

• Day to day business and operations in the source system are unaffected

• Since the financial figures of different source system flow to the Central finance system it becomes a source of truth and reporting (system of record)

• Statutory and internal reporting is faster and accurate as the system takes care of consolidating the accounting information from different sources

• Many to 1 mapping possible between the different source systems and the central system

• Asynchronous creation of multiple accounts for a single vendor/customer/material or accounts can be simplified and rationalized

• The Central finance system is capable of drilling back to the source documents from other modules for a document in the source system

• The intercompany payables and receivables from the source system when brought at a single site i.e. Central Finance makes the reconciliation easier and faster

• Transaction level data

replicated in real-time

from one or multiple

source systems

• There are no interfaces

or batch processes

posting at a later point



Scope Pyramid for Finance

5

Source: Central Finance and SAP S/4HANA – SAP Press



Scope Pyramid for Logistics

6




Use Case 1 – Stepping Stone to S/4HANA

A customer wants to get into S/4HANA by replicating financial data from its ECC system.

Central Finance offers an opportunity to early adopt S/4HANA and reap the benefits immediately

Central Finance contains the full S/4HANA suite, which will allow for the future adoption of other modules such as HR, Logistics, Sales, etc.

By integrating a single ECC system into S/4HANA we can leverage new reporting / planning / technology tools and see the benefits of S/4HANA.

This environment serves as Proof of Concept for a new information model.

7

SAP S/4HANA

Central Finance

SAP ERP

SAP BPC



Use Case 2 – M&A Integration

A customer wants to integrate data from a recent merger or acquisition (M&A) from a non-SAP system.

The Central Finance system provides a simpler landscape when connected to a non-sap system

This also provides a seamless transition into S/4 without the need for any manual intervention

The third party integration tool allows for the reading of data from an external system and integrates that data into Central Finance, providing a complete financial picture of the organization.

More info: https://launchpad.support.sap.com/#/notes/2481900

8

SAP S/4HANA

Central Finance

Non-SAP ERP

SLT

https://launchpad.support.sap.com/#/notes/2481900



Use Case 3 – Centralized Finances from Multiple Sources

A customer wants to report centralized financials from different SAP and Non-SAP systems

One of the challenges is to integrate / harmonize master data (customer, vendor, business partner) and configuration (chart of accounts, fiscal year variants, organizational structure, tax calculation)

Tools like SAP Master Data Governance (MDG) can be leveraged to facilitate Master Data management, cleaning, and distribution.

Can leverage shared services by having the central or corporate department take care of the financial needs of the different subsidiaries, business groups, or LoBs

9

SAP S/4HANA

Central Finance

SAP ERP

Non-SAP ERP

MDG



AGENDA







DIFFERENT DATA TYPES

11




THE SAP INTEGRATED INFORMATION MODEL

12




The creation of master data in Central Finance allows for:

The cleansing of duplicate or redundant master data objects

The harmonizing of master data from several heterogenous systems

Master data can be created via:

Manual procedures

Master Data Governance

S/4HANA Migration Cockpit

Application Link Enabling (ALE)

The mapping of master data in Central Finance allows for:

Master data objects from different systems to be consolidated

The ability to redesign the master data structure within your new ERP

Master data can be mapped via:

Key Mapping: Known as ”Id” mapping, this mapping is used for objects like G/L account, vendor, customer, cost center, materials, etc.

Value Mapping: Known as “Code” mapping, this mapping is used for objects like company code, controlling area, document type, etc.

Cost Object Mapping: The mapping of cost collectors (orders) from the source system to the Central Finance system

How to harmonize master data?

13

Master Data Creation Master Data Mapping

Master data in Central Finance can be harmonized through a two-step master data methodology:



Master Data Creation

Manual procedures

14

Master Data Governance

S/4HANA Migration Cockpit Application Link Enabling (ALE)

Manual

Process

SAP ERP

Customer

Vendor

G/L

Accounts

Hierarchies

SAP

S/4HANA

Hierarchies

Bus.

Partners

G/L

Accounts



Master Data Creation Decision Tree

Master Data Integration

Option?

Manual?

Leverage Existing Tools and Skills?

SAP Legacy System

Migration Workbench

3rd Party File Upload Tools

Align with SAP Tool for SAP S/4HANA?

SAP S/4HANA Data Migration

Cockpit

Automated?

Use Once?

Rapid Data Migration to SAP

S/4HANA

Use Operationally?

Central Maintenance?

SAP Master Data Governance

Consolidation?

SAP Master Data Governance

Leverage a Pre-Built

Accelerator?

Magnitude SourceConnectHarmonization

TruQua TruIntegration

Custom Build and/or Extend?

SAP Data Services

SAP SLT and Operational

Data Providers

SAP ALE Master Data

Distribution*

15

*Exceptions: Pre-Delivered

Central Finance Functionality

for WBS elements, Projects

and SEPA Mandates

Can be enhanced



Master Data Mapping

Value and Key mappings can be maintained in Central Finance to map source master data objects to Central Finance master data objects.

The standard Central Finance mapping functionality, known as MDG LITE, is integrated with SAP MDG

MDG LITE allows for mass mapping maintenance as well as individual mappings.

The master data objects of source and central system can have a N:1 relationship between them

16

Key Mapping

Value Mapping



Cost Object Mapping

To map the cost collectors (orders) into table AUFK, the methodology for replication needs to be configured by maintaining the cost object scenarios

Different categories of orders eligible for cost object mapping in Central Finance:

Production Orders

Internal Order

Maintenance Order

QM Order

Product Cost Collector

Each category in the source system can be mapped to an order category in the Central Finance system

Within each cost object scenario orders can be replicated and mapped between the systems

17



Harmonized Reporting

18

Single source of truth

No more reconciliation or sub-ledgers

Management reporting comes out of the universal ledger

No need for batch processing and data replication

Simplified coding block

Statutory and internal reporting is faster and accurate as the system takes care of consolidating the accounting information from different sources

Create queries directly off of ACDOCA

There’s also ACDOCC Consolidations Journal and ACDOCP for Planning data



AGENDA







Embedded Analytics in Central Finance

Real-time embedded analytics through CDS views

Different analytics options:

Analysis for Office

Fiori apps

Lumira

SAP Analytic Cloud

BOBJ Design Studio

All analytics are embedded in the Universal Journal Table

Eliminates the need of creating queries on multiple data sets

Seamless integration to other SAP analytical offerings

20



Leveraging Fiori for Reporting and Analytics

Display G/L account balances and line items

Manage journal entries

Display and maintain financial statement versions

Display financial documents

Including drill-back to source document

All tiles are integrated with Central Finance and ACDOCA

21



AGENDA







Planning & Financial Consolidation as a driver to Central Finance

Using SAP Planning (SAC/BPC) or SAP Consolidations (Group Reporting/BPC) in conjunction with Central Finance can lead to:

Harmonized data all in one landscape

Real-time data

Granularity

Customers with multiple ECC and BW systems can leverage SAP Consolidation (Group Reporting / BPC) with Central Finance to clean up the consolidation landscape

Central Finance can be then be used as the data collection layer and SAP Consolidation can be deployed on top for eliminations and group reporting.

Transparency into data via drill-through

Drill-through from consolidations to the line items

23

SAP S/4HANA

Central Finance

SAP ERP

SAP Planning &

Consolidation



Real Time Consolidation

24

Real-time consolidation provides an integrated application designed to support real-time access to both transactional and master data

Ability to analyze consolidated actuals and plan data in near real-time

Consolidated data at the desired level of granularity

No longer subject to traditional performance limitations

Shared master data and actuals

Planning, analysis, and consolidation all in one book of record and single source of truth (ACDOCP/ACDOCA/ACDOCU)

Real-time data helps to support soft close and continuous accounting



Group Reporting in Central Finance

25

Group reporting consists of consolidation, reporting, and analysis to facilitate to computation and creation of consolidated reports

Continuous accounting in real-time

Eliminates the need for ETL or data loading process to the consolidation tool

Postings and simulations can be continuously checked against central validation rules

Adjustments can be done locally and the results can be immediately used for consolidation

Currency translation and Intercompany eliminations can be done before the consolidation

This can lead to time savings and a faster month-end close



Social

Real-time chat

Mobile

Plan and approve on-the-go

Cloud-ready

Just need a browser

Modeling, planning, andanalytics

An integration of BI and EPM

SAP’s Innovation Breakthrough – SAP Analytics Cloud



Started as SAP Analytics Cloud for planning (C4P) but has become much more strategic

Overview of SAP Analytics Cloud



Hybrid Planning – BPC & SAC



AGENDA







Resources (1)

30

➢ See how Central Finance taps into SAP S/4HANA to improve financial processes and reporting

➢ Set up and operate a Central Finance landscape

➢ Use Central Finance to achieve your company’s finance and IT goals

Plan for, implement, and use Central Finance with SAP S/4HANA!

Central Finance and SAP S/4HANA: The Comprehensive GuideWritten by: Hilker, Awan, Delvat450 pages | 09/2018 | E-book: $69.99 | Print: $79.95 | Bundle: $89.99

Pre-Orders Available here: https://www.sap-press.com/central-finance-and-sap-s4hana_4667/



Resources (2)

The Top 10 things to know about SAP Central Finance https://www.truqua.com/the-top-10-things-to-know-about-sap-central-finance/

Help on SAP Central Finance https://help.sap.com/saphelp_sfin200/helpdata/en/48/57c0540cf5ef05e10000000a4450e5/frameset.htm

Central Finance Administration Guide https://help.sap.com/viewer/26c2d5e366bc44c1a98f2a9212a0c49d/1709%20002/en-US/9354c0540cf5ef05e10000000a4450e5.html

Real-time consolidation SAP help

https://help.sap.com/viewer/b9277744b8d84c74a15f185faa990e56/1709%20002/en-US/6760ac57d4646b10e10000000a441470.html

Group Reporting SAP help

https://help.sap.com/viewer/90c07e91c7a64f328be3fd6b48955b13/1808.500/en-US

SAP Embedded Analytics Blog

https://blogs.sap.com/2017/04/25/embedded-analytics-in-s4hana-with-demo-videos/

Note 2184567 - Central Finance: Frequently Asked Questions (FAQ)


31

https://www.truqua.com/the-top-10-things-to-know-about-sap-central-finance/

https://help.sap.com/saphelp_sfin200/helpdata/en/48/57c0540cf5ef05e10000000a4450e5/frameset.htm

https://help.sap.com/viewer/26c2d5e366bc44c1a98f2a9212a0c49d/1709 002/en-US/9354c0540cf5ef05e10000000a4450e5.html

https://help.sap.com/viewer/b9277744b8d84c74a15f185faa990e56/1709 002/en-US/6760ac57d4646b10e10000000a441470.html

https://help.sap.com/viewer/90c07e91c7a64f328be3fd6b48955b13/1808.500/en-US

https://blogs.sap.com/2017/04/25/embedded-analytics-in-s4hana-with-demo-videos/




CONTACTS

Julien Delvat

S/4HANA Practice Lead

[email protected]

Scott Cairncross

Partner Principle

[email protected]

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