sap simple finance by keval shah

SAP Simple Finance Transform finance with instant insight

Keval Shah

Senior Solution Architect SAP

WHY SIMPLIFY?

WHAT IS SIMPLIFIED?

HOW IS IT SIMPLIFIED?

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

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



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



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

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



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

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



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

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

WHY SIMPLIFY?

WHAT IS SIMPLIFIED?


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

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

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

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 HANA Close Batches

Consolidation Batches

Initial Period Close & Consolidation

Reporting on-demand

Close & Consolidation Initial Period

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

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

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

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

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

WHY SIMPLIFY?

WHAT IS SIMPLIFIED?


22


S4 HANA

SAP HANA Platform





New product for









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

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

Reco

ncili

atio

n

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

HANA Views 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

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

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.

As a consequence, multiple

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

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

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

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

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

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

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

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

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 Read Select

Custom program

or report

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

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

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

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

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

Financial Statement – Flexible Drill-down to Any Dimension

43

Flexible Journal Entry Analyzer

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

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

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

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

SAP Smart Business Cockpits

Financial Close

Receivables Manager

Payables Manager

Cash Manager

Finance for Managers

“A new information experience for decision makers.“

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

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

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

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

Renewed Transactional Roles – Example G/L Accountant

Financial Statement

G/L Balances

G/L Line Items

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


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

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

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

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.


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


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


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

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

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

SAP Accounting and SAP Simple Finance are great … But how do I get there ?

SAP Accounting powered by HANA

SAP R/3

4.6C SAP R/3

4.6C SAP R/3

4.6C

SAP R/3

4.6C SAP R/3

4.6C SAP ERP

SAP R/3

4.6C SAP R/3

4.6C Non SAP

Universal

Journal

SAP HANA

Adoption Dilemma

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

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

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

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

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


S4 HANA

SAP HANA Platform





New product for









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


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 © 2014 SAP AG or an SAP affiliate company. All rights reserved. 72


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


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

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

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

…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

…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

…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

…Approve or Reject Payments…

Approve or reject payments on desktop,

or mobile devices, before the payment

is sent to the banks.

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


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

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

Overview of Your Bank Structure and Bank Accounts

Bank Accounts managed centrally

Bank & Bank Account Hierarchy

Fast Search

Bank Account easily maintained

84

Overview of Your Bank Structure and Bank

Accounts – List View

85

Bank Account – General Data

86

Bank Account – Payment Signatory

Payment Signatories linked to Bank Communication

Management. Payment approval route is decided

by the signatories defined here.

87

Bank Account – Change History

88

Workflow Inbox for bank account approval

89

Workflow Inbox for bank account approval

90


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

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


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

Liquidity Forecast in Detail

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

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

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

Activity Workflow for Liquidity Planning

Subsidiaries receive the

planning cycle, with the

activities they need to

perform

98

Email Notification of Activities To Be Performed

Subsidiaries also receive

email notification about the

planning cycle and

activities to be performed.

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

Copy suggested amounts with a certain factor…

101

Variance analysis on a specific Liquidity Item

102

Plan/Actual/Forecast comparisons

103

Compare all plan versions

Compare with all

versions from the rolling

plan/forecast

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

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

Deployment Option 3 – Cash Management

Side by Side

HANA

ERP (anyDB)

SAP Cash

Management powered

by SAP HANA Bank 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


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


Cash Operations Bank Account

Management Liquidity Management

108


S4 HANA

SAP HANA Platform





New product for









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

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

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

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

SAP Simple Finance Add-on to SAP Business Suite

powered by SAP HANA

Integrated Business Planning for finance

SAP Hana Platform


* BPC NW 10.1 =

BPC/BW IP

combined

UI

SAP NetWeaver BW

& BPC NW 10.1*

“embedded”

Planning Engine

Planning Data Actual Data Master Data Configuration

Data Exposure Data



Integrated

Business Planning for

finance

Excel Web Mobile

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


delivers content (templates, queries,

planning functions) not available with SAP

Business Planning and Consolidation


unlike the SAP Business Planning and

Consolidation Standard model is NOT an

add-on

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

Pre-delivered content with IBP 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


also includes:

Queries

Planning Functions

Sequences

Info-Objects

Info-Providers

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

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


S4 HANA

SAP HANA Platform





New product for









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

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

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

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

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

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

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

http://www.sap.com/simple-finance



simplefinance.sapjourneymap.com

soh.sapjourneymap.com

hec.sapjourneymap.com

http://www.sap.com/financialsexcellence

http://www.sap.com/financialsexcellence

Thank You

sap simple finance by keval shah

Technology