sap intelligent finance cash application...finance in sap s/4hana –delivers functional...

SAP Intelligent Finance – Cash Application 20NOV18

Les Smith – Finance and Risk Solution Lead (ANZ)Centre of Excellence - SAP

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Journey to smart automation in SAP S/4HANA Finance

Finance

Robotics Process

Automation

eCommerce

IoT

Business

Network

Digital

Collaboration

Machine

LearningEngines

Accurate

digital data

SAP S/4HANA Finance – The Digital Core

as foundation for digital automation

Robotics Process Automation

helps to run repetitive,

rule-based monotone tasks

and bridges temporary gaps

Machine Learning identifies

hidden patterns in knowledge

intensive processes and

executes processing

Engines loaded with pre-

defined high specific process

knowledge enables rule-based

automation

Accurate digital data reduces

reconciliations and enables

higher degree of automated

processing from end to end

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A comprehensive portfolio for the CFOCovering all business areas across all roles

Finance in SAP S/4HANA – delivers functional completeness across all financial roles Chief Financial Officer

VP of FinanceHead of Corporate

ReportingCorporate Treasurer

Head of Finance

Operations

Chief Compliance

Officer

Financial Planning and Analysis

Accounting and

Financial Close

Treasury and Financial

Risk ManagementFinance Operations

Enterprise Risk and

Compliance Management

Strategy Development

and Translation Accounting

Payments and Bank

CommunicationsReceivables Management

Enterprise Risk

Management

Planning, Budgeting,

and ForecastingEntity Close

Cash and Liquidity

ManagementInvoice Management

Controls and Compliance

Management

Profitability and Cost

ManagementCorporate Close

Debt and Investment

ManagementTravel Management

International Trade

Management

Monitoring and Reporting Reporting and Disclosure Financial Risk Management Real Estate Management Fraud Management

Financial Close

Governance

Commodity Risk

ManagementFinancial Shared Services Audit Management

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AR Accountant

Joanne

Lump sum

Missing info

Discounts

Exchange

Customer call

?

Incoming Payments

ERP statement generation

& clearing

Cumbersome & time-

consuming manual processing

Customer payments for

invoices

ERP

Manual processing: clarification, matching and

posting

Result

Example in Figures

100 payments received

from customers

30 payments posted by system (full

match of amount, invoice no., name)

70 payments to be

cleared manually Automation rate: 30%

Manual rate: 70%100% 30% 70%

Time Intensive Tasks in Accounts Receivables

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SAP Cash ApplicationIntelligent receivables automation powered by SAP Leonardo Machine Learning

History

Payments

Invoices

Payment Advices

Matching proposals &

automated payment

clearing

Improves days sales

outstanding

Allows shared services

to scale as the

business grows

Seamlessly integrated

with SAP S/4HANA

Drastically reduce

manual effort, focus on

strategic tasks and

service quality

SAP Cash Application intelligently learns matching criteria from

your history, reads and processes payment advice documents,

and automatically clears payments with minimal intervention.

SAP LeonardoMachine Learning

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SAP Cash Application

Line Item Clearing

Posting on Account

Payment Advice Extraction

SAP Cloud Platform

SAP Leonardo Machine Learning

Solution OverviewEnd-to-end process automation with SAP Leonardo Machine Learning

PDF

Bank

StatementsLockbox*

EDI PDF Scanned

Documents

Payment Advices

Payments

Cloud On-prem

Intelligent automation:

CUSTOMER *S4HC 1805


IntegrationSAP Cash Application Supported ERP Landscapes

ECC 6.0

SAP Cash Application

SAP Cloud Platform

SAP Leonardo ML Foundation

On-Premise

1709

Public Cloud

1802

On-Premise

EHP7+

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Open bank statement

items plus receivables

Matching proposals

Matches autocleared,

proposals viewed over

SAP Fiori apps

Training

process

Inference

and

clearing

Processa conclusion reached

on the basis of

evidence and

reasoning

Receivables Line Item MatchingTraining & Inference Process Overview

Run invoice-matching

service

Machine-learning trainingHistorical clearing documents

ECC 6.0SAP Cash Application

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Payment Advice ExtractionAutomated payment advice processing seamlessly integrated with SAP Cash Application

Drastically lower manual efforts by automatically extracting remittance information

from unstructured advices (email, PDF, paper, etc.) to enhance payment matching

Payments

Invoices

Automatic clearing

Exception

handling

Intelligent

MatchingComputer vision +

machine learning

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SAP Cash ApplicationMachine Learning Pipeline Overview

Account

Identification

Payment to Receivable

Advance Payment

GL Account

GL Account

Advance Payment

Payment to Payable

Bank Statement

Import

Lockbox ImportQ2

Incoming

Payment

Outgoing

PaymentQ3

Customer

account posting

Vendor account

posting

Paid against

single invoice

Paid against

multiple invoices

Multiple payments

single invoice

Payment Advice

Extraction

Line Item

Matching

Payment

ClassificationQ4

Scan EDIPDF

PDF

Email**

GL account

postingQ4

CUSTOMER *This is the current state of planning and may be changed by SAP at any time without notice.


1Process Bank StatementsElectronic FF_5 or manual FF67

2Execute Standard S/4HANA Clearing Rules

3

Scheduled SAP Cash Application Job

New bank statements and open receivables sent to SAP Cash Application service

4

SAP Cash Application Machine Learning Inference

Proposals returned to S/4HANA

5

Automatic Clearing

Proposals satisfying confidence threshold are automatically cleared

6

Reprocess Bank Statement Items

Equivalent to FEBA / FEBAN

SAP Cash ApplicationLine Item Matching Process Overview

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Next-generation intelligent invoice-matching powered by machine-learningHow SAP Cash Application helps various sides of the business

CFO and COO

▪ Improve days sales outstanding (DSO) key performance indicator (KPI)

▪ Adopt machine-learning –innovation

▪ Reduce the cost of finance

AR Manager

▪ Minimize manual exception-

handling to reduce costs and

refocus your experts on high-

value tasks

Head of Shared Services

▪ Enhance team efficiency

▪ Scale self-services with

increasing customer volume

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What SAP Cash Application can do for your businessAutomation enables scale

Automation

Increase efficiency and

reduce errors in the

finance department.

Enable finance to focus on

strategic tasks.

Reduced TCO

Learn from accountant

behavior and start work

immediately. Continually

adapt without on-going

maintenance.

Speed

Process incoming

payments faster to reduce

DSO, increase liquidity,

and improve customer

service.

Integration with

SAP S/4HANA

Leverage tight integration

with the SAP S/4HANA

Cloud suite and on-

premise solutions – to

complement standard

rules, extract value from

historical data, and

maintain your current

processing workflow.

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SAP Cash Application Business Case

Showcases the value using SAP Cash Application solution to

automatically match large number of payments against open invoices by

intelligently learning matching criteria from customer's historical data

Major Pain Points highlighted in the business case

• Inability to support the meteoric growth in payments without

increasing AR team size

• Significant manual and error prone effort required to process

payments

• High costs for implementing, maintaining and updating tailored rules

for matching payments against open receivables

• Uncleared invoices resulting in credit block situations

Major benefits covered in the business case

• Increase in account receivable FTE productivity

• Reduction in days sales outstanding

• Reduction in overdue account receivables

• Reduction in uncollectible accounts receivables write offs (bad debts)

Log into to VLM to access the business caseLink: SAP Leonardo Pre-configured Business Cases JAM Page

https://valuemanagement.sap.com/vlm/

https://jam4.sapjam.com/wiki/show/H6IHxnF62cKngKkv6fvhJg?_lightbox=true

https://jam4.sapjam.com/wiki/show/H6IHxnF62cKngKkv6fvhJg?_lightbox=true


Access the Pre-configured Business Case

1) Login Value Lifecycle Manager (VLM). Access VLM New User

Registrtation Guide.

2) Create a project and provide customer details

3) Go to 'Add to your Project', select Business Case.

4) Select 'Add from Business Case Catalog' on the pop up

5) In the catalog, select ‘Leonardo’ category and select the

business case

6) Mark BC is marked as ‘Actual’ if you are using customer data

7) Click on the BC Name to access the content

8) Collaborate the project with the customer after completing the

analysis

2

3

4

5

6 6

7

How To Access Machine Learning Business Case in VLM

8

https://valuemanagement.sap.com/vlm/

https://jam4.sapjam.com/groups/4HsEDxjm8YSUH0GhdZUE9M/documents/PghR2k0v3lLaNO1Yg3snJc/slide_viewer


Short Video

26CUSTOMER© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Brand visibility measurement as of today

▪ Unreliable measurements

▪ Time-consuming analysis

▪ Limited media coverage

Not addressing

all questions

How will new technologies

influence sponsoring?


SAP Brand Impact

Automatically analyzes brand exposure in videos and images by leveraging advanced

computer vision techniques. The application helps media agencies, broadcasters, and

brands gain accurate, timely insights into sponsoring and advertising ROI.

FastNear real-time speed

TransparentInteractive interface

Accurate and scalableTo millions of hours

FlexibleCost structure

First-class

customer experience

Easy integration with

analytics software

Introduction of new

business models

http://www.slideshare.net/sap/the-future-of-networks

http://www.slideshare.net/sap/the-future-of-customer-experience-29818984

http://www.slideshare.net/sap/the-future-of-resource-optimization-amid-increasing-scarcity

http://www.slideshare.net/sap/the-future-of-work-30060347


SAP uses SAP Leonardo Machine Learning Service Ticketing solution to

simplify and speed up the processing of IT-tickets


Broken

product

similarity

search use

case demo


The combination of Functional ServicesBroken product similarity search use case

Images DBImage Feature

Extraction ServiceVectors DB

Image Feature

Extraction ServiceSimilarity Scoring

Result

https://ml.mo.sap.corp/

Roadmap and Vision

Sli

de

https://ml.mo.sap.corp/


Take a look at

www.sap.com/finance

SAP Leonardo Machine Learning

www.sap.com/ml

More information – SAP S/4HANA Finance

http://www.sap.com/Finance

http://www.sap.com/ml

Questions?

Contact information:

Les Smith

Solution Lead

Centre of Excellence

SAP Australia and New Zealand

[email protected]

0407635724

Thank you.

mailto:[email protected]