sap s/4 hana - sap sfin (simple finance) - financial reporting and advanced analytics for oil &...

SAP S/4 HANA is THE Path to Simplify Finance

Financial Reporting and Advanced Analytics

� Date : 06/22/2015

� Time : 12:00 PM EST

Webinaire HostJothi Periasamy

Chief Finance Transformation Architect

Chief SAP HANA Architect

Webinar Details

SAP S/4 HANA Use Case for Oil & Gas

Sierra’s Pre-packaged Industry SolutionsOil & Gas Financial Reporting and Advanced Analytics

06/22/2015

Financial Reporting and Advanced Analytics Oil & Gas Use Case for SAP S/4 HANA

Objectives:

� In this webinar, we will be demonstrating the key capabilities of SAP S/4 HANA, including

� SAP S/4 HANA - Solution Scope, Implementation Business Scenarios, Business Benefits

� SAP sFIN - Universal Journals, Business Values, Financial Reporting and Analytics Simplified

� Review Sierra’s SAP S/4 SAP HANA Pre-Packaged Industry Solutions

� Readily Deployable Solution (RDS) for Simplifying and Accelerating Financial Reporting and Analytics

� Watch Our Live Demo, and Learn The Steps to Deeply Analyze Financials in Real-time

� Income Statement� Profit and Loss� Balance Sheet� Cash Flow� Trial Balance� Product Gross Margin

� Predictive Analytics� Trend Analysis� Data Visualization� Interactive Analysis� Data Discovery � Variance Analysis

Pre-Packaged Oil & Gas Industry Solution

06/22/2015

Overview of the Company:

� Founded in 2002, headquartered in Houston, Texas

� Worldwide operations in US, Canada, Malaysia and India

� 255+ employees worldwide with over 150 in the US

� Growing at over 50% every year

� Serving more than 55 key accounts across the globe

� Partnerships

� SAP certified premier partner

� Offerings

� Advisory, Implementation, Training, Post Production Support

� SAP S/4 HANA implementations, upgrades

� SAP sFIN Finance and accounting implementations, upgrades

� SAP HANA and HADOOP Integration

� SAP HANA and Open Source Analytics - R & Payton

� SAP BPC, SAP BOBJ, SAP BW, FI, BASIS, HCM, CRM, SCM, SEM, BI

� 24x7 Global Support Services

Industry Verticals:

� Public Sector

� Energy & Oil & Gas

� Retail/ CPG

� Utilities

� Manufacturing

� Federal


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HARVARD INNOVATION LAB | HARVARD UNIVERSITY

Sierra’s Strategic Focus: Data Science, Advanced Analytics and Big Data

06/22/2015

� Sierra highly invest in it’s people, process and technology to develop it’s datascience, big data and analytics pre-packaged industry solutions

� In association with Experfy (Harvard Innovation Lab), Sierra co-innovatesenterprise data science for various industries using SAP HANA technologies

Our Data & Analytics Capabilities:

SAP Governance Risk &

Compliances( GRC)

SAP Business

Objects(BO) Tools

SAP Master Data Management

(MDM)

SAP Business Planning and

Consolidations(BPC)

SAP Strategy

Management

SAP Business

Warehouse (BW)

Data

Science

Data

Science

Big Data & Analytics

� Planning and Forecasting� Financial Close� Predictive Analytics� Advanced Analytics� Data Discovery� Interactive Analytics� Self Servicing and Ad-Hoc Query� Dashboards and Data Visualization� Scenario Analysis� Business Insights� Enterprise Reporting� Management Reporting� Operational Insights

Big Data & Analytics

� Planning and Forecasting� Financial Close� Predictive Analytics� Advanced Analytics� Data Discovery� Interactive Analytics� Self Servicing and Ad-Hoc Query� Dashboards and Data Visualization� Scenario Analysis� Business Insights� Enterprise Reporting� Management Reporting� Operational Insights

Big Data Management

� Data Governance� Data Quality� Data Management� Data Profiling� Data Enrichment� Data Integration� Data Mapping� Data Transformations

Big Data Management

� Data Governance� Data Quality� Data Management� Data Profiling� Data Enrichment� Data Integration� Data Mapping� Data Transformations


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Our Big Data, Analytics and SAP HANA Practice:

Readily Deployable Solution:

� Financial Reporting and Analytics

� Advanced Analytics on structure and unstructureddata

� Smart Grid Analytics

� Financial fast close with step consolidation

� Driver based planning and forecasting

� Financial predictive analytics for CFO office

� Cost allocation and budget formalization

Product Coverage:

� Real-time reporting with HANA

� Identify and leverage trend information with SAPPredictive Analysis

� Enterprise reporting with Business Objects BI Platform

� High impact visualizations with Dashboards

� Ad-hoc reporting with Web Intelligence reports

� Data discovery with Business Objects Explorer

� Data Quality management with Information Stewart

� Complete view of structured and unstructured data acrossyour enterprise with SAP Data Integrator

End-To-End Services:

� SAP HANA Strategy and Roadmap

� Architecture Consulting

� EDW Implementation & Rollouts

� Application Support & Maintenance

� NetWeaver BW and Business Objects Upgrades

� Performance Monitoring and Improvement Roadmap

� EIM / EPM Implementations

� Data migration to NetWeaver BW on HANA and Suiteon HANA

� Data Quality Management (MDM / MDG)

SAP S/4 HANA/PA Center Of Excellence:

� Dedicated Lab Environment

� POCs/Prototypes

� Solutions & Accelerator tools

� Methodology & Framework

� Focused people development through trainings andcertifications

� Centralized Knowledge Repository

� Project Support


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SAP S/4 HANA Defined:

Human

Machine

Big Data

Internet of Things

Business Network

Social Network

User Experience

Applications

In-MemoryData

Infrastructure

Native Integration

SAP FIORI

SAP S/4 HANA Applications & ExtensionssFIN 2.0

SAP HANA Platform

Cloud On-Premise

Ariba SuccessFactors

� SAP’s new business solution designed to run business simple and to support the digital and networked world� Built on advanced in-memory platform SAP HANA� Personalized user experience with SAP Fiori� Deployable in the cloud or on premise

SAP S/4 HANA Single Platform for OLTP and OLAP Application

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SAP S/4 HANA Solution Scope:

Existing SAP Customer

New SAP Customer

Suite on HANA

Simple Finance (sFIN)

(SAP Accounting Powered by SAP

HANA)

SAP BPC NetWeaverAnalytics for OfficeIntegrated Planning

Financial CloseDiscloser

ManagementCash Management

Ariba

� Customers can choose any of the following SAP S/4 HANA solutions� SAP HANA Runtime� Accounting Solutions� BI Solutions� Financial Solutions

� Customers who do not want to move to Suite on HANA, can use selected solutions side-by-side

SAP HANA Runtime Accounting Solutions BI Solutions Financial Solutions

06/22/2015


SAP S/4 HANA Implementation Scenarios:

Business Challenges Business Scenario Business Process SAP S/4 HANA Solutions

Multiple ERP-Systems (e.g. due to

M&A) causing high TCO and slow

innovation cycles.

Central Journal Accounting & Financial Close SAP HANA

SAP Accounting powered by SAP HANA

BPC Netweaver or financial consolidation

Long closing cycles and / or the

ambition to have reliable finance data

at any time.

High Day Sales Outstanding (DSO)

and / or Cash Flow Challenges.

Risk of Fraud and / or high Audit

costs.

Need for dynamic planning and / or

aspiration for integrated planning.

Month end close

Working Capital

Management

Process oversight

Integrated Financial

Planning

Accounting & Financial Close

Treasury & Financial Risk

Enterprise Risk and Compliance Management

Financial Planning and Analysis

SAP HANA


SAP Financial Closing Cockpit

SAP Central Process Scheduling

SAP HANA

SAP Cash Management powered HANA

SAP Working Capital Analytics

SAP Receivables Management

BPC NetWeaver, planning only

SAP HANA

SAP Fraud Management

SAP Process Control

SAP HANA


SAP Business Planning and Consolidation,

version for SAP NetWeaver

Analysis for office

What solution best suits for customers ?

� As a first step find areas where customers have identified pain, in particular if they are already undergoing a process offinance transformation

� Based on industry expertise, Five key scenarios caught significant improvements in almost all customer interactions

06/22/2015


SAP S/4 HANA Business Benefits:

• All the Aggregate and Index tables are removed and are calculated on the fly

Before

After

SAP ERP Financials with

Aggregates and Indices

SAP S/4 HANAFinancials

BKPF BSEG BSIS BSIK BSET

BKPF BSEG

• Data Model is made very simple

LFC1 GLTO COBK COEP COSP

06/22/2015



� Data Model is made very simple

SAP sFIN Tables

SAP HANA Information Model

Analytical View (Virtual Cubes) Without Data Aggregation Storage

Calculation View (Virtual Cubes) Without Data Aggregation

Analytical View Balance SheetCalculation View For Profit and Loss, Balance Sheet, Cash Flow and Trial Balance

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� Single Platform for OLAP and OLTP Applications

Client 120 for OLTP OLTP Application Functions

Client 100 for OLAP RSA1 : Data Warehousing Workbench

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� Data Model is made very simple

� Data Foot Print is reduced drastically

� OLTP and OLAP in single system

� Rich user experience through Fiori

� Instant access to any financial insight on any device

� Always reconciled financial process for real-time financial data analysis

� Decision making using prediction and simulation, always on the fly

� Easy Deployment Options - cloud, on premise, or hybrid deployment options

06/22/2015


SAP sFIN Defined:

SAP sFIN

FI

New General Ledger Accounting

Accounts Receivable

Accounts Payable

New Asset Accounting

Cash Management

Treasury and Risk Management

CO

Cost Center Accounting

Profit Center Accounting

Profitability Analysis

Product Cost Planning and Cost Object Controlling

Material Ledger

Universal Journal

Close

Planning

Internal Order Accounting

UnifiedSingle Document

High Level View

Financial Close and Disclosure Management

Integrated Planning

� Optimized financial accounting processes

� Supports operational finance to driving efficiency and compliance

� Simplified data model for instant insights

Co

ntro

lling

Finan

ce

06/22/2015


Simple Finance Defined ( Continued …)

Universal Journal Entries

On The Fly Aggregation

Instant Financial Insights

Simplified Data Model Enables

Flexible Insights

Flexible Data Access for Dynamic Changing Business Environment

All Data is Available Consistently

06/22/2015


Universal Journal:

� What is Universal Journal?

� Universal Journal is a structure of single source of truth for both FI and CO modules businesstransaction posting

� Helps reporting in all components use data from the same journal entries� Simply speaking, Universal Journal is a one line item table of all dimensions from FI, CO, AA and

Material Ledger

� Key Features of Universal Journal

� Secondary cost elements are part of GL accounts and thereby uniformity is maintained� Universal Journal has got its own currency fields which brings currency concepts used in FI and CO

closer together� Universal Journal entries are written to a new table, ACDOCA. However, one can use the use data from

old tables� Significantly reduced memory footprint� Harmonized internal and external reporting� Deployable as central finance in case of diverse system landscapes

06/22/2015


Universal Journal (Continued …)

The new universal journal entry replaces the Financial Accounting (FI) document and the Controlling (CO) document with a universal document.A journal entry is created for every business transaction in one of the following application components:

� General Ledger Accounting (FI-GL)� Asset Accounting (FI-AA)� Controlling (CO)� Exception: Costing-based Profitability Analysis (CO-PA)� Material Ledger (CO-PC-ACT)

The introduction of the journal entry eliminates the need for the separation made previously between Financial Accounting (FI) and Controlling(CO). Since financial accounting and managerial accounting are reconciled constantly, there is no longer any need for reconciliation between FIand CO or between FI-GL and FI-AA, nor is there any need for the real-time integration of these components. The reports in all components usedata from the same journal entries

� For this uniformity, all cost elements (primary and secondary) need to be portrayed as G/L accounts. Consequently, you no longer needto enter the master data for cost elements separately; instead, you only need to create G/L accounts from now on

� The universal journal entry has its own currency fields. This brings the currency concepts used in FI and CO closer together� The journal entry contains data for characteristics from all of these components. In the case of data that is not entered during

document entry or that is not determined by the business transaction, the system derives such data automatically from existing data. Inthis way, you can analyze the data using characteristics from different components. For example, you can create a balance sheet at thesegment level

� Effects on Existing Data: Universal journal entries are written to a new table, ACDOCA. Consequently, updates are no longermade to some old tables. Nevertheless, you can continue to use reports that use data from these old tables. This is becausecompatibility views for a data request from one of these tables read the data from ACDOCA

06/22/2015


General Ledger Accounting

Ledger Company Account1 Account 2 Account 3 …. Profit Center

Profitability Analysis

Operating Concern Segment

Controlling

Controlling Area Cost Elements Account 1 Account 2 ….

Asset Accounting

Company Assets

Material Ledger

Company Materials

Universal Journal (New Table in SFIN : ACDOCA)

Ledger Company Cost Elements Profit Center Account 1 Account 2 ….. Asset Material

� Various accounting applications merge in the new structure of Universal Journal (ACDOCA)

� The new comprehensive data table ACDOCA contains all of the line item documents from FI, FI-AA and CO


06/22/2015



New Table : ACDOCA( Universal Journal)

COSS_BNK COEP COBK COSP_BNK

GLT0 BSIS BSAS FAGLFLEXA FAGLFLEXT FAGLBSIS FAGLBSAS

ANEK

ANEP

ANEA

ANLP

ANLC

MLIT

MLPP

MLPPF

MLCR

MLCD

CKMI1

BSIM

GLT0

� The following tables were replaced by SAP HANA views with the same names� The line item, totals tables and application index tables of General Ledger Accounting (GLT0, BSIS, BSAS and FAGLFLEXA, FAGLFLEXT,

FAGLBSIS, FAGLBSAS)� The totals tables and application index tables of Accounts Receivable and Accounts Payable (KNC1, KNC3, LFC1, LFC3, BSID, BSIK, BSAD,

BSAK)� The line item and totals tables of Controlling (COEP for certain value types, COSP and COSS)� The material ledger tables for parallel valuations (MLIT, MLPP, MLPPF, MLCR, MLCD, CKMI1, BSIM)� The Asset Accounting tables (ANEK, ANEP, ANEA, ANLP, ANLC)

� Replacing these tables with views with the same names ensures the continuation of all read accesses to the tables mentioned 06/22/2015



Vendor Invoice: 5105600109 Customer Invoice: 0090000007

� BKPF: Accounting Document Header Table� BSEG: Accounting Document Line Item Table� BSIS: Accounting Document Open Items Only� BSIK: Accounting Document Open Items for Vendor Only� BSIM: Secondary index – documents for material� RBKP: Document header: Incoming invoice� RSEG: Document Item – Incoming invoice� RBCO: Document Item, Incoming Invoice, Account Assignment� RBVD: Invoice Document - Aggregation Data

� BSID: Accounting Document Open Items for Customer Only� BKPF: Accounting Document Header Table� VBRK: Billing Document: Header Data� VBRP: Billing Document: Item Data

Before Universal Journal

After Universal Journal ACDOCA

Table Accessed/Updated Table Accessed/Updated

06/22/2015


Simple Finance Business Values:

Financial Insights - end-2-end analytical capabilities

• Today, legal accounting is separate from Management accounting (based on profit center and Profit center hierarchies)

• The two views can not be easily combined (e.g. Accounts Receivable does not provide Information about Profit Center)

• Management reporting is based on aggregates with a set of pre-defined joins with no possibilities to further drill down, e.g. Information about DSO is available on company code and LoB only

but cannot be broken down to a specific area of responsibility (Profit Center)

• Data structures are harmonized and integrated to form one logical document across FICO (Accounts Receivable are combined with Profit Center Information)

• Reporting is based on line items (no aggregates), therefore, new reporting requirements can be easily implemented based on new FICO joins/views

• This allows to perform end-to-end analysis and define new responsibilities in many areas. E.g. • Cash Management as integrated part of Business Steering (e.g. more granular on DSO) • Tax optimization (e.g. I/CO agreements for management license, management overhead etc.)

Accounting

Legal

Data Aggregation

Managerial

Operational Reporting

Statutory

Reporting

Accounting

Legal Managerial

Operational Reporting

Statutory

Reporting

Before Simple Finance

After Simple Finance

06/22/2015


Financial Reporting and Analytics Simplified:

Before

Traditional Financial

Reporting

FI CO CO-PAOR OR

Financial Reporting Management Reporting

SAP ERP Financials

After

Unified Reporting

FI CO CO-PA+/AND

Financial Reporting Management Reporting

SAP S/4 HANAFinancials

+/AND

Key Figures Measures Dimensions

Comprehensive Reporting Including CO and CO-PA detail

� Reporting is not limited by application boundaries

� Run one report (e.g. P&L) and drill-down to any dimension available in the financialdocuments

06/22/2015


Financial Reporting and Analytics Simplified:

Simplified Intercompany Reconciliations

� Customers can replace the long running transactions and batch processes they might be using today for achieving intercompany reconciliations. SAP Simple Finance provides a unified, single general ledger that automatically achieves this reconciliation. This not only speeds up reconciliations, but also enables simulations and thereby enhances a company's ability to plan and stay ahead of the curve

Integrated Planning

� Unified models for enterprise-wide financial planning and reporting scenarios on a single source of truth. This integration can eliminate any latency or discrepancies that might exist between operational systems and analytical or planning systems and it enhances a company’s overall planning capabilities

In our next Webinar we will be discussing Financial Close and

Intenerated Planning in detail with a Live Demo

06/22/2015


Sierra’s SAP S/4 HANA Pre-packaged Industry Solutions

Oil & Gas Financial Reporting and Advanced Analytics

06/22/2015


Sierra’s SAP S/4 HANA Pre-packaged Industry Solutions:Oil & Gas Financial Reporting and Advanced Analytics

� At Sierra, we deeply reviewed Oil & Gas accounting, reporting and analytics business needs, andwe developed Readily deployable solution (RDS) for financial users self-servicing, reporting andanalytics on SAP S/4HANA platform using sFIN data and other data sets

� Our pre-configured solutions reduces cost, time, risk and enables business to realize the truemeasurable business values from day one

� Our solutions includes many pre-configured functionalities , the key functions are� Data model� Master data sets (ex: Account, Entity, Time, Currency , etc.)� Simple and flexible SAP HANA information model for self-servicing� Data Analysis and Reports� Deep Insights� Data Visualization

� Our solutions empowers business with Advanced Analytics capabilities such as� Predictive Analytics� Forecasting� Trends� Data Discovery

Our Pre-packaged Solution Scope

06/22/2015


SAP S/4 HANA Data Provisioning

SAP S/4 HANA Information Model

SAP Lumira Analytics & Data Visualization

� Predictive Analytics � Forecasting� Interactive Analysis

� Simplified business process specific financial model � Self-servicing - reporting and data analysis � No physical data storage� Massive amount of In-memory data processing and

complex calculations� Out of box support to

� Data Science� Advanced Analytics

� Simplified data provisioning regardless of data format, structure, and source. Out of the box support to

� Big Data � Internet of Things (IoT)

� Single platform for both OLTP and OLAP� Empowers business with real-time data � Support to open source technologies

� HADOOP� R� Python

HOW

IT

WORKS?

06/22/2015


BUKRSCompany Code SKB1

KTOPLChart of Accounts SKA1

SAKNR GL Account SKA1

WAERSCurrency SKB1

GJAHR Fiscal year BKPF

MONATFiscal Period BKPF

VERSNFinancial statement

versionT011

KOSTLCost Center CSKSZ

KOSTLProfit Center CSKSZ

Universal Journal ACDOCA


Our Solution Data Model

� Our pre-built data model

� Pre-configured Master dataattributes for Oil & Gas� Account� Entity� Time� Currency� Transaction Type� Treading Partners� Value Type� Version

06/22/2015



SAP S/4 HANA

SAP HANA Information Model---------------------------------

� On the fly data aggregation� No redundant data storage and data

movement between OLTP and OLAP Systems � Simplified information Model for

� P/L� B/S� C/F� T/B

� Our ready to go SAP

HANA information

model for simple and

flexible reporting and

data analysis

Our Solution SAP HANA Information Model

06/22/2015



Analytical View for Balance Sheet Analytical View for Profit & Loss

Analytical View for Gross Profit Analytical View for Trial Balance

On the fly data aggregation and simplified information model for self servicing

06/22/2015



Calculation View

� Our pre-configured KPI’s,measures , calculated keyfigures , restricted keyfigures and filters

� Examples� Gross Profit� Gross Margin� Primary Cost elements� Cost of Sales Analysis� Gross Margin %� Daily Net Gallon� Gross Profit Per Net

Gallon� Gross Margin

Complex Financial Calculations

06/22/2015


Sierra’s SAP S/4 HANA Pre-packaged Industry SolutionsOil & Gas Financial Reporting and Advanced Analytics

06/22/2015

� Profit and Loss� Balance Sheet � Cash Flow � Trial Balance� Gross Profit


Sierra’s SAP S/4 HANA Pre-packaged Industry SolutionsOil & Gas Financial Reporting and Advanced Analytics

06/22/2015

Appendix

� Profit and Loss� Balance Sheet � Cash Flow � Trial Balance� Product Gross Margin

� Predictive Analytics� Trend Analysis� Data Visualization� Interactive Analysis� Data Discovery � Variance Analysis


� Revenue by Month - Conventional Gas, Diesel, Freight, Lubricants and others� Expense by Month� Analyze Gross Profit� Compare Gross Profit vs. Net Income

06/22/2015

Profit & Loss Analysis


� Revenue by Month - Conventional Gas, Diesel, Freight, Lubricants and others � Expense by Month � Analyze Gross Profit � Compare Gross Profit vs. Net Income

06/22/2015

Profit & Loss Analysis - Gross Profit By Month



06/22/2015

Profit & Loss Analysis - Revenue By Segment



06/22/2015

Profit & Loss Analysis - Volume By Segment



06/22/2015

Profit & Loss Analysis



06/22/2015

Profit & Loss Analysis - Expense By Month



06/22/2015

Profit & Loss Analysis - Revenue By Month



06/22/2015

Profit & Loss Analysis - Volume By Month



06/22/2015

Profit & Loss Analysis - Volume Prediction By Month



06/22/2015

Profit & Loss Analysis - Volume Prediction By Segment



06/22/2015

Profit & Loss Analysis - Revenue Prediction By Month



06/22/2015

Profit & Loss Analysis - Revenue Prediction By Segment


Product Gross Margin Analysis

� Gross Profit and Revenue by Month - Conventional Gas, Diesel, Freight, Lubricants, and others � Daily Net Gallon � Gross Profit Per Net Gallon � Gross Margin %

06/22/2015


Balance Sheet Monthly Analysis

� Accounts Receivable� Petty Cash� Bank Account

06/22/2015


Balance Sheet Line Item Variance Analysis


06/22/2015


Balance Sheet Trend Analysis


06/22/2015


Balance Sheet


06/22/2015


Trail Balance Analysis

� Clearing Invoice� Customer Discount� Sales Tax � Sales Cost

06/22/2015


Trial Balance Analysis

� Clearing Invoice� Customer Discount� Sales Tax � Sales Cost

06/22/2015


Looking forward to discussing with you during our Webinar

Thank You !

Jothi Periasamy

Chief Data ScientistChief Finance Transformation Architect

Chief SAP HANA Architect (916)-600-6628

[email protected]

06/22/2015

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