moving to sap s/4hana

CONFIDENTIAL

Moving to SAP S/4HANAthe benefits for FinanceLeslie Dahl Breivik, SAP

SBN 2020

2Public© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ

SAP’s Vision of Finance Transformation

Automation

Running

the Business

Insights

Operations

Deliver

Insights

Operations

Predictive

Insights

Backward

looking

Real-time

Insights

Support

Strategy

Operations

Forward

looking

Predictive

Insights

Real-time

Insights

Cost-efficient

& compliant

finance processes

Pro-active

business steering

Analytics


Benefits for Finance from SAP S/4HANA

Consistent, Intuitive

& Efficient

User Experience

delivering a positive experience

working with both Analytics and

Transactions

Fundamental

Enhancements to Core

Finance Processes

that will make your life

easier

An Integrated Data

Platform

providing a single version of

financial truth




& Efficient

User Experience

Fundamental


Finance Processes


easier

An Integrated Data

Platform


financial truth



Transactions


Intuitive Assisted User ExperienceImprove user acceptance, efficiency, and onboarding speed

Single Entry Point

Domain-specific information and actions

Enter details and explore in depth

The SAP Fiori launchpad is the single entry point to access all apps

Users will quickly get an overview of what needs their attention with Overview Pages, List

Reports and Work Lists, and trigger quick actions or drill down to the next level of detail

Key and differentiating use cases are re-imagined with the SAP Fiori user experience.

All classic applications have the SAP Fiori visual theme.

“Fiori will help extend the use of

S/4HANA to even casual users…”

Martin Naraschewski, SAP GM Finance & Risk


SAP S/4HANA Embedded Analytics

Seamless

▪Role based

analytical insights

▪One company wide KPI

repository

▪Based on

SAP Virtual Data Models

▪One click away from the

Fiori Launchpad


How SAP S/4HANA will change the way you run your business…

360° Cockpits and Analytical Views

for comprehensive and customizable insights

Embedded Analytics

for simulation, prediction and insight-to-action

Role-based applications

for user/task-related optimization

Digital Assistant and Mobile UX

for device-independent use

Machine Learning for

automation and decision support

SAP S/4HANA

Procurement Overview Monitor Purchase Order Items Manage Production Orders Manage Material Coverage

Monitor GR/IR Account Reconciliation Monitor Materials Without Contracts


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

Process receivables

Click-through video

SAP GUI SAP Fiori

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

Clicks: 39 Clicks: 11

Screen changes: 8 Screen changes: 2

Fields filled: 5 Fields filled: 2

64% (85 sec) reduction in duration

71% (28) reduction of clicks

75% (6) reduction in screen changes

60% (3) reduction of fields filled

Clear incoming payments

Click-through video

SAP GUI SAP Fiori









Post incoming payments

Click-through video

SAP GUI SAP Fiori


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




37% (10) reduction of clicks/tabs



Post General Journal Entry

Click-through video

SAP GUI SAP Fiori

Duration: 49 sec Duration: 49 sec







Analyze Financial Balance Sheet

Click-through video

SAP GUI SAP Fiori









Manage vendor line item

Click-through video

SAP GUI SAP Fiori

Duration: 52 sec Duration: 50 sec








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

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

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

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

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

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


9Public

Customers Drive Efficiency and Automation

“With SAP S/4HANA, we’ve built

a cornerstone for successfully

expanding our global market

share and business operations.”

Jongmin Kim, General Manager of the Planning Team, Huvitz Co. Ltd.

Business Transformation Study, Customer Reference Slide

“SAP S/4HANA is helping us to

drive digitization across the company,

allowing us to work in a more

streamlined and integrated way.”

Wolfgang Sabelgunst, SAP Project Manager, Bundesdruckerei GmbH

Business Transformation Study, Customer Reference Slide

30%Improved accuracy of

cost analysis by product

60xFaster creation of monthly

accounting journals

7 daysTo complete the accounting

closing process

10xFaster data inquiries

40%Time saved on generation

of financial reports

10xFaster calculation

of salaries

>3xFaster security

authorization reviews

https://dam.sap.com/mac/download/ad/xPJU5.htm

https://dam.sap.com/mac/download/ad/OPJUN.htm

https://dam.sap.com/mac/download/ap/XJyOs.htm

https://dam.sap.com/mac/download/ap/AJmOY.htm




& Efficient User

Experience

Fundamental


Finance Processes


easier

An Integrated Data

Platform


financial truth



Transactions


Used for Master Data only

MATDOC_

EXTRACTMSEGMATDOC

On the fly aggregation and compatibility views for

indices and obsolete tables

DocumentHeader

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Status

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ACDOCA

FAAT_YODA

FAAT_DOC_IT

Document

Header Item

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VBUP

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LIPS

VBUK

Material Quantities

VRPMA

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Header Item Indices

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MLCD*

BSAD

FAGL

BSIS

BSIKBSIS BSAS

BSID

CKMI1*

BSAK

FAGL

BSAS

BSIM*

Document Totals Indices

Finance

MSTEMKPF

MSLB

MSSLMSSA MSSQ

MSTQ

MSKUH

MSTB

MARC MCHBH

MKOL

MCHB MSKUMARD

MSKA MSPR

MSTQH

MKOLHMARCH

MSSQHMSSAH MSTBH

MSTEH

MSPRH

MARDH

MSLBH

MSKAH

Material Document

Stock Aggregates

History

Sales Order

Delivery

Billing Document

Status Info

Conditions

Document Flow

GL, AR, AP

New GL

CO

AA

ML

Index for Rebates

Header Item

Hybrid: Master Data with Stock Aggregates

Aggregates

MBEWHMBEW

OBEWH

EBEW

QBEW QBEWH

EBEWH

OBEW

CKMLCR

CKMLPP

Valuation in MM or Valuation in MLValuation in ML

Material Values

Aggregates

Document

Inventory

movements

HistoryUsed for Master Data onlyHybrid: Master Data with

Valuated StockML Valuation

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

SAP

Business Suite


Used for Master Data only

MATDOC_

EXTRACTMATDOC

On the fly aggregation and compatibility views

for indices and obsolete tables

DocumentHeader

incl. StatusItem incl.

Status

VBFA

(simplified)

PRCD_

ELEMENTS (new)

FAAT_PLAN

_VALUES

ACDOCA

FAAT_YODA

FAAT_DOC_IT

DocumentItem

MSPR

MARC

MKOL MSLB

MARD

MSKA

MSKUMCHB

CKMLPP

CKMLCRMBEW

QBEW

OBEW

EBEW

BSEGBKPF

VBRP

VBAPVBAK

LIKP

VBRK

KIPS

Material Quantities

Sales Finance

Material Document

Header Item

Material Values

Used for Master Data only ML Valuation

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

SAP S/4HANA Benefits

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

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

▪ Faster processing allowed

reengineering of processes(no batch jobs required)


▪ Instant Insight

▪ Flexible Real Time Analytics

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

▪ No Reconciliation needed

▪ No Replication needed

▪ No Stored Aggregations

▪ Drill to Detail

General Ledger

Ledger Company AccountProfit

Center…

Management Accounting

Controlling

AreaCost Element …

Profitability Analysis

Operating

Concern

Market

Segment…

Material Ledger

Company Product …

Asset Accounting

Company Fixed Asset …

Universal Journal

Powered by SAP HANA

Ledger CompanyAccount/Cost

ElementProfit

Center

CodingBlock

FixedAsset

Market Segment

ProductCustomer

Fields


……..

Material Ledger

Company Material……..

Asset Accounting

CompanyFixed

AssetAmount 1 Amount 2

Management Accounting

Controlling

area

Cost

element ……..Coding

block

Ledger CompanyAccount/

Cost

Element

Profit

centerAmount 1 Amount 2 Amount 3

Coding

block

Fix

Asset

Market

segmentMaterial

Customer

field…….

Universal JournalUniversal Journal

Universal Journal - One truth

Ledger Company Account Profit

centerAmount 1 Amount 2 Amount 3 …….

General ledger

……..

Profitability

Operating

concern

Market

segment


The Single Source of Truth: Reconciled Analytics by Architecture

Millions of data entry

Hundreds of dimensions, ready for reporting

Less effort: No reconciliation any longer!


Parallel Ledgers: Basic Principle

Write Access Read Access

Posting valid for

Parallel ledger only

Special valuation i.e. assets

Posting valid for both

Standard and Parallel Ledger –

Most postings updated in both

ledgers

Select Leading ledger – i.e.

Group accounting (IFRS)

Select Parallel Ledger –

i.e. Local GAAP


Extension Ledger: Basic Principle

Write Access Read Access

from Standard Ledger from Extension Ledger

Posting valid for

Extension ledger only

Posting valid for both

Standard and Extension Ledger

Select

Standard

Ledger

Select both

Standard &

Extension

Ledger


Combining Extension Ledgers

▪ You can use several extension ledgers for

various purposes

▪ Each extension ledger knows its underlying

ledger

▪ Setting up a new extension ledger is simple

(one configuration entry!), it inherits the data of

the underlying ledger

Tax

Restatements

Predictive Accounting


Example: 4 Ledgers

One document

• Update on non-leading

ledgers happens

automatically in the

background.

• Valuations like asset

valuation and

depreciation calculated

and posted correctly in

each ledger


Full Audit Trail

The Architecture of Universal Journal is

ideal for Audit Trail

Flexible navigation paths

▪ Starting from any aggregated report, e.g.

Financial Statement

▪ Drilldown for arbitrary account assignments

▪ Navigation to line items, passing all filter

criteria

▪ Navigation from line items to journal entry

▪ Navigation to source document


Lets look into the system

A huge list of fields is

available for drilldown !




& Efficient User

Experience

Fundamental


Finance Processes


easier

An Integrated Data

Platform


financial truth



Transactions


SAP S/4HANA Finance What’s Changed?

Chief Financial Officer

Vice President,

Finance

Head, Corporate

Reporting

Head, Finance

Operations

Head, Corporate

Treasury

Risk, Compliance & Audit Officer

CISO, CIO

Financial Planning

& Analysis

Accounting

& Financial Close

Finance

Operations

Treasury

Management

Enterprise Risk

& Compliance

Cybersecurity

& Data Protection

Planning, Budgeting,

and ForecastingFinancial Accounting Record to Report

Payments and Bank

Communications

Enterprise Risk

Management

Access Governance

and Identity Management

Profitability and

Cost ManagementEntity Close Order to Cash

Cash and Liquidity

Management

Controls and Compliance

ManagementSingle Sign-on

Management Reporting Corporate Close Procure to PayDebt and Investment

Management

Automated Monitoring

and ScreeningAccess Monitoring

Financial Reporting Indirect Tax ManagementFinancial Risk

Management

Policy Lifecycle

ManagementData Loss Prevention

Direct Tax Management Real Estate ManagementRisk Management

for CommoditiesAudit Management

Financial Close

Governance

Travel and Expense

ManagementTreasury Governance

International Trade

Management

Financial Shared

Service Management

Financial Process

Governance

Finance & Risk


Continuous CloseClosing tasks taken off the critical path, delivering high-quality multidimensional

insight, earlier and with less effort

Integrated IntercompanyReconcile intercompany transactions at source

before consolidation eliminations

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

Embedded Secure Data AccessBusiness role concept enabling effective management & control

Inventory AccountingSimplifying material valuation, product cost analysis and actual costing

Managing Receivables * Unified view, real-time analytics, and streamlined design

Universal AllocationsIncreased transparency in cost allocation modeling and execution through a

single, harmonized allocation engine

Cash Management ** Better data architecture and UI for reporting & monitoring Cash

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

Advanced Compliance Reporting **Centralised Legal and Tax Reporting increases compliance

Key Benefits for Finance moving to SAP S/4HANASAP S/4HANA brings significant business value to Finance Professionals

* Features included in S/4HANA

Embedded Reporting and AnalyticsFlexible ad-hoc reporting and insight to action, based on live transactional data in a single financial truth

** Basic versions included in S/4HANA

Intuitive Assisted User ExperienceFiori simplifies learn and use both Analytics and Operational transactions, coherent across all of devices


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

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

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

solutions for which additional licenses are required:

Recommended Add-On Licenses

▪ SAP Analytics Cloud (for reporting, analysis and Financial Planning)

▪ SAP S/4HANA Group Reporting

▪ SAP S/4HANA Cash Management (basic Cash Management is already included with S4)


Analysis and

Reporting

Financial Planning,

Budgeting and

Forecasting

Accounting and

Financial

Consolidation –

Group Reporting

SAP S/4HANA

and SAP

Analytics Cloud Planning & Analysis

• In depth Revenue and Expenses Planning

• Built for SAP S/4HANA Finance

• Rich modelling and Planning functionality

• Dashboard / Visualizations

• Trend, Variance, Year-over-Year analysis

• Simple/common End-User Experience

Smart Analysis

Augmented capabilities help you find the

most valuable insights with:

Search to Insight

Predictive Forecasting

Smart Discovery

Smart Predict

Financial Consolidation

• Single source for local and

group data

• Drill from consolidation to

transaction detail

• Accelerated financial closing

Group Consolidation, Financial Planning, Reporting and Analysis


▪ Traditional

consolidation is

often

inefficient and

time

consuming

▪ Distributed

Master data

▪ No real-time

“drill to detail”

SAP S/4HANA Group ReportingFaster more efficient Group Consolidation

Converting to S/4HANA without

S/4HANA Group Reporting

With SAP S/4HANA

Group Reporting

▪ Integral Group

Consolidation

▪ Single integrated

process with local

financial close

▪ Continuous

accounting and

consolidationSAP

Systems

Non-SAP

Systems

Data Warehouse &

ETL-Tools

Consolidation Tool

SpreadsheetsSpreadsheets

Local Accounting

SAP S/4HANA

for Group Reporting

SAP S/4HANACloud & On-Premise)

real-time

access


▪ Traditional planning tools require

multiple extract, transform and load

steps – inefficient and time

consuming

▪ Master data must be maintained in

multiple places

▪ Allocation logic has to be duplicated for

actuals and plans

▪ Roles and security have to be

maintained in multiple systems – and

kept synchronised to avoid breaches

SAP Analytics Cloud for Financial Planning

Converting to S/4HANA without

SAP Analytics Cloud

With

SAP Analytics Cloud

for Financial Planning

▪ Live analytics means data does not

have to be transferred between

systems

▪ Out-of-the-box templates for Real-

time analysis of plan vs actual

▪ Multiple iterations of plan and budget

can be stored in the Cloud without

impact on the ERP

▪ Flexible private versioning by user

prior to submission

▪ Shared master data between

S/4HANA and the FP&A process

Analytical

Reports

Planning

Input Forms

SAC/DBR

dashboardsCost center

KPI and financial

statement reports

Profit center

Customer/Product

Trend reportsBalance sheet

(Cash Flow)

Variance reports

(Actual vs. Plan,

YOY)

Currency Rate

Reconciliation

Headcount &

Employee-related

Expense Planning

Local & Global Currency


▪ Can do the minimum - manage

daily cash position, standard

payment processes

▪ Liquidity planning is done off-line

or with customized planning tools

▪ Bank account master data and

signatories would need to be

maintained in 3rd party niche or

other external systems – hard to

maintain, use and audit

▪ Non-standardised/harmonised

payment processes with different

tools and portals

SAP S/4HANA Cash ManagementFull visibility of company-wide cash position and flows

▪ Complete day-in-the-life of a cash

manager with advanced monitoring,

cash positioning and analytics

▪ Manage complete lifecycle of

payments with end-to-end visibility

utilizing workflow-based collaboration

and control

▪ Bank account management integrated

with cash and payment management

processes

▪ Initiate FX currency trades from cash

management views

▪ Monitor & analyse data – with deep

drilldowns into cash flows utilizing

intuitive user interfaces

S/4HANA Conversion with

only Basic Cash Management

With full

S/4HANA Cash Management

S/4HANA

Business Integrity Screening

Governance and Control

Bank Account Management and Cash Management

Manage

Bank

Account

s

Capture

Bank

Balance

s

Forecast

/

Planning

Process

Paymen

t

Bank

Message

Transmission

s

• AP/AR

• Payroll

• Treasury

• In-house

Cash

• Other… SAP Multi-

Bank

Connectivity*

Alliance Lite 2

Direct Bank Integration

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

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

landscapes. Required for S/4HANA Cloud deployments.


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

• Redesigned, simplified & automated processes

• Embedded anytime Analytics with prediction

• Cross-company integration

• Proactive business contextual assistance

• Business situation support and alerts

• Speech controlled assistance

Intelligent Finance Applications

Assisted User Interface

Single

Financial

Truth

• Single journal entry – no redundancy

• Actual, plan, simulation data

• Reconciled and consistent by design

• Transactional and analytical data

• Real-time speed

• Unlimited drill-down Integrated Data Platform

Universal Journal

Intelligent Technologies• AI / Machine learning

• Predictive analytics

It’s time to

move to

SAP

S/4HANA !

moving to sap s/4hana

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