new fuctionality for finance (fi) in simple finance

SAP Smart Financials

SAP Smart Accounting / FI Centric

January, 2014

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SAP Smart Accounting in more Detail


SAP Smart AccountingSimpler and Faster

One source for Financial andManagement Accounting

Customer-specificdimensions can be addedeasily and consistently

Highest granularity

Not limited by totals orpre-configuration

Quick and flexibleBeautiful User Interface

Reduce month-end closingprocess and postingsIntra-month simulations

Based on single source of truthNo data replication necessaryConsolidation methods areavailable where needed

All reporting information online-item-level is available


SAP Smart Accounting will merge FI and CO

Addressed Business CaseHarmonize external and internal accounting in line withinternational requirements

Provide intra-month management reporting when need

Provide reliable financial statements soon after period close

Easy to interrogate financial data

Reduce cost of Finance

Key BenefitsSingle source of truth based on line items

Comprehensive line item based reportinge.g. cost of goods sold and responsibility reporting

Accelerated key close transactions can be used ondaily basis

Drastically reduced reconciliation effort

Single Financial planning model

CapabilitiesLogical document combining data from FI and CO

Financial statement reporting with drill-down to anydimension recorded in accounting

Fast intra-month close for WIP calculation, resultsanalysis, settlement and variance calculation

Single planning document containing all relevantentities

Single source of truth

SAP Smart Accounting in more DetailAvoid Redundancy


Financial Backbone Data: AccountingIllustration after Simplification

Financials Backbone

Postinge.g.

InvoiceRW-Interface

FIDocument

CODocument

Index for G/L

Index for A/P

Index for A/R

Real WorldProcessData

Interface FinancialDocuments

Indices forProcessingand reporting

Totals forProcessingand reporting

Totals OM

Totals PA

Totals GL

Totals A/P

Totals A/R

Totals SL

Data-Out/

Reporting

XX

XXX

XX

XLogicalOneDocument

Totals PCA


Avoid RedundancyList of Obsolete Tables FICO

Index tables removed Aggregate tables removedBSIS 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

GLT3Summary Data Preparations forConsolidation

FAGLFLEXT New General Ledger: Totals

KNC1 Customer master (transaction figures)

LFC1 Vendor master (transaction figures)

KNC3Customer master (special G/L transactionfigures)

LFC3Vendor master (special G/L transactionfigures)

COSS Cost Totals for Internal Postings

COSP Cost Totals for External Postings

Avoid Redundancynon disruptive with equally named views for previous total/index tables

The basis tables BKPF, BSEG/BSEG_ADD and FAGLFLEXA remain almost unchanged.Index and totals tables have been replaced with compatibility views (aka equally namedviews). These views have the same name as the original tables, contain the same fieldsand shall allow for a smooth transition to the new data model in the standard as well as inthe partner and customer coding.


Avoid Redundancynon disruptive with equally named views for previous total tables


Consequences from avoiding redundancy (1)compensation for missing data

Missing columnsa) New fields in BSEG coming from Index tables (BSID, BSIK,…)b) New fields in BSEG_ADD coming from Index tables (FAGLBSIS, FAGLBSAS)

Elimination of totals and index tables would result in data loss forinstalled base customers if no countermeasures are taken.

1. Missing columns (fields, which are filled in index and totals tables and missingin the line items)

2. Missing rows (archived or partially archived documents)



Missing rowsa) Partially archived documents are taken out of BKPF/BSEG, but still kept in the index

tables for reporting purposes.

Solution shown for Index BSIS: Table BSIS gets renamed to BSIS_BCK during upgrade This stepsaves the BSIS data and at the same time makes the name space available for the compatibility view.The view BSIS reads data from the BKPF/BSEG and in addition the partially archived documents fromBSIS_BCK.



Missing rowsb) Totals tables can contain data of past fiscal years, where the customer already have

archived the related FI documents.

Solution shown for total KNC1: Table KNC1 gets renamed to KNC1_BCK during upgrade. The datamigration, which is triggered after the upgrade, fills the delta table KNC1_DIF as a difference betweenKNC1_BCK and BKPF/BSEG. View KNC1 then reads from BSEG and from KNCX_DIF, so that the viewKNC1 yields the same data as the original table KNC1.



Missing rowsc) Before sFIN Balance carryforward from the prior fiscal year are writing into dedicated key

figures in the totals tables. Now special line items are written into the line item tableFAGLFLEXA (only in FAGLFLEXA no BSEG).

SAP Smart Accounting in more DetailOne logical document for FI and CO


Logical Document Links FI and CO Line Items

Link between FI and CO by new fields in header and line item tables

Migration for existing documents

CE4

CE4KEYAssignmentObject Key for CO-PA

PAOBJNRProfitability Segment Number (CO-PA)


AnalyticsArchitecture of Virtual Data Model

SAP Smart Accounting in more DetailOne G/L solutionWe no longer distinguish beween classic and new G/L. Classic G/L customers will be„technically migrated“ which means same tables and process logic from new G/L are used.


sFINClassic GL

Technical Migration Scope from Classic General Ledger

„New“ General Ledgerparallel accounts in leading ledger

Cost of Goods Sold (UKV)

Consolidation Preparation

P&L by Profit Center

Classic General LedgerParallel accounts

Profit Center Accounting for Profit & Loss and selected Balance Sheet accounts

Special Ledger

Consolidation Preparation

Cost of Goods Sold (UKV)


Classic G/L customer need additional Customizing

1. Leading Ledger

Cost ofSales

ProfitCenter

ConsolidationPrep.2. Scenarios

3. Accounting Principles

4. CO-FI Real Time Integration

5. Foreign Currency Valuation

SAP Smart Accounting in more DetailAcceleration through code pushdown


Customer Situation – Suite on HANA

AMG: Issues with KKAO (WIP Calculation), KKAK (Results Analysis), and KKS1(Variance Calculation)

Ericsson: Issues with KKAO (WIP Calculation), KKAK(Results Analysis), and KO88(Order Settlement)

SAP: Issues with KKAK (Results Analysis)

Siemens: Issues with KKAK (Results Analysis)

Confidential

Customers expected their Period Close to be accelerated by Suite on HANA, but insome CO-PC transactions the Close got slower.


Code Pushdown TopicsDriven by Customer Feedback

All CO-PC closetransactionspreviously optimizedfor row store – selectstatement prepareslist of e.g. orders andthen each order rowis processedsequentially

Typical Customer ChallengesKey Functions and Features

Accelerated WIPcalculation (WIP atactuals)

Accelerated ResultsAnalysis (methods01,03)

AcceleratedVarianceCalculation (firstmethods)

AcceleratedSettlement

Business Value + Customer Type

Reduces time to closePredictive close sincetransactions can be runmore frequently


Optimization through Code-Push-DownPeriod End Close Transactions

* This Example: New transaction KKAOH (WIP at Actual Cost)

WiP calculation for production orders – code push downVariance calculation for production orders – code push downVariance calculation for cost centers – code push downResults Analysis (POC method, and revenue method) – code push downOrder Settlement (optimized object selection and generation of settlement profiles)


Code Pushdown ApproachResults Analysis for Sales Orders

KKAK KKAKH


Code Pushdown ApproachResults Analysis for Sales Orders

KKAKH

SAP Smart Accounting in more DetailAging instead of Archiving


DB PartitioningHotFrequently used / operationalrelevant data in main memory

ColdRarly used data in disk space

Aging instead of ArchivingCurrently for Financial document

All data can be selected from HANA DB

SAP Smart Accounting in more DetailMigration


Migration Phases

Preparation

Upgrade &DB Migration

• Close Period for asset accounting• Run Reconciliation Reports to ensure consistent data/ Run special check report for FI-AA installed via note• Execute and save financial reports to enable comparison of financial KPI‘s after migration• Customizing for New GL (if necessary) and Customizing for initial balance carry forward (in test system)

New GLMigration

sFIN DataMigration

PostProcessing

• Create cold store for old index tables (for partially archived documents)• Update FI-AA customizing/ Import FI-AA Customizing• Run Reconciliation reports to check data consistency• Execute financial reports and compare financial KPI‘s with KPI‘s from preparation phase• Perform process tests to ensure successful migration (in test system)

• Backup (BCK) tables are created in DDIC for all tables, which will be made obsolet (totals and index)• Run check report, if all necessary BCK tables have been created• Rename index and total tables into x_BCK• Delete original index and total tables and generate views instead• Import and Activate new sFIN programs

• Import Customizing for initial balance carry forward (in productive system)• Preparation phase includes: reconciliation report to check data consistency before proceeding with financial

data migration, automaticaly fill table for AP/AR balances carried forward• Perform sFIN Migration (Fill Deltatables, Perform initial balance carry forward (if necessary), Merge line items

CO& FI)

• Import New GL Customizing (if necessary)• Run migration from data original stored in classical GL into New GL data structures (FAGLFLEXA)• Data Migration Check via reconciliation of source and target data


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