sap simple finance

© 2014 ERP Corp. All rights reserved.

What is SAP Simple Finance?

Carsten Hilker

SAP

Introduction

3

• Since the official release of SAP Simple Finance during SAPPHIRE, there has

been tremendous interest in the latest, next generation SAP Finance solution

• We’ll cover:

• A quick overview

• Simple Finance, SAP Accounting powered by SAP HANA, Central Journal scenario

• Simplifications and innovations

• Technical components and prerequisites

• Deployment options

• Make sure to join / attend:

• Controlling 2014 September 21-24 San Diego

• Financial Excellence Forum, October 7-8 Philadelphia

• Customer Engagement Initiative: Simple Finance / Central Journal

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 4

AlignedSingle Source of Truth

Provide one-stop access to all financial and non-financial data

Ensure harmonized data without manual reconciliation

Enable flexible data drill-down to actionable information



One data instance as common basis for Transactions, Analysis, and Reporting

• A single data copy in a shared data model

• Aggregation of elementary records in real time

• From serial processes to event driven collaboration

• Various copies of data in different data models

• Inherent data latency and alignment issues

• Serial processes to ensure data quality

Separation of Transactions, Analysis, and Accelerated Reporting

SAP HANA(DRAM)

Transact Analyze Accelerate

Cache

SAP HANA Enables a Single Source of Truth



Architecture of SAP Accounting powered by SAP HANA

LogisticsDocument

CODocument

FIDocument

Totals & Indices

Financial Accounting

Totals & Indices

Management Account.

From … Stability

Processing

Analytics

CO Document

FI Document

Flexibility

Aggregation on the

fly

via HANA views

Pre-Defined Aggregates

Flexibility

Stability

Processing

AnalyticsLogical document

LogisticsDocument

… To

Customer Benefits

• Harmonized internal and external reporting

• Higher flexibility in reporting and analysis

• Significantly reduced reconciliation effort

• Significantly reduced memory consumption

• Central journal for heterogeneous system landscapes



FI

SAP HANA Live (Virtual Data Model – Logical Documents)

CO CO-PAMaster

Master Data

Web Dynpro

Fiori AppsBusinessObjects BI

Physical Documents

Reporting Interfaces

Embedded BW (queries)

Reporting Architecture


Reporting with Fiori Applications

Lab preview

Customer Benefits

• Reporting of the Financial Statement, Balances, Line Items

• Simple and easy to use experience

• Work seamlessly across devices – desktop or tablet

• Collaboration functionality


Discovery and analysis

Lumira

Explorer

Analysis for Office / for OLAP

Discover. Predict. Create.

Dashboards and apps

Build engaging experiences

Reporting

Crystal Reports Web Intelligence

Share information

Design Studio

Dashboards

Reporting with SAP BusinessObjects Business Intelligence


Reporting and Analysis Flexibility

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 easily added and are available for segmentation *

* planned


Harmonized Internal and External Reporting – Example WIP

Customer Benefits

• Insight into the “work in process” accountin the balance sheet

• Detail by production orders not finished at period-end

• Drilldown to deeper levels like cost elements


Significantly Reduced Reconciliation Effort

Obsolete – Reconciliation of multiple ledgers ** – because redundancy has been

eliminated

Obsolete – Reconciliation Ledger ** – due to real-time integration from CO to

FI

Obsolete – Reconciliation of totals vs. line items – because totals are dropped

Obsolete – Reconciliation of OLTP and OLAP – due to real-time analytics on OLTP

Drastically simplified – FI versus CO – due to 1:1 link on line item level

Drastically simplified – FI versus CO-PA * – due to link to CO-PA characteristics

table

Faster financial close and lower costs

* for account-based CO-PA and primary cost elements ** already available with New G/L in SAP ERP


Significantly Reduced Memory Consumption

HANA data base compression

No more persistent indices and aggregates/totals

No replication to OLAP system for operational reporting

Lower TCO and higher through-put

18,5xSmaller data footprint observed based on real customer data

Lab preview


AgileReal time finance processes

Run event-driven processes with real-time execution

Provide instant insight to action based on real-time information

Enable comprehensive process oversight and risk management



The Real Time Process Revolution

Process status analytics

Transaction

monitoring

Control and risk analytics

Real-time process oversight

Personal

analytics

Elimination of

batch execution

Real-time

reporting

Intra-period

simulations

Continuous intra-

period execution

Acceleration of

bottleneck steps

Instant insight to

action

Real-time processexecution

ContinuousProcess


Financial Close: Transition to Continuous Processing

Processes designed for real-time operations eliminate close bottlenecks

Real-time analytics for process oversight

Close processes involve >100 tasks per entity with complex dependencies and batch bottlenecks

Benefit Drivers• Eliminate end of period batch bottlenecks

• Continuous intercompany reconciliation

• Continuous financial reporting visibility

• CO-PA & line item detail reconciliation

• Automation for routine tasks

• Full management visibility of close tasks

Challenges• Multiple batch run dependencies

• Batch bottlenecks delay downstream activities

• High error correction efforts

• Complex issues delayed till post close

• Time pressured resolutions

• Delayed visibility to reporting

EntityClose

CorporateClose

Period End Close

Within the period

Traditional Financial Close

Reporting on-demand

Financial Close on SAP HANA

Within the period Period End

Close


Financial Close: Intercompany Reconciliation on the Fly

FBICR3Reconcile Documents

FBICS3Select Documents

FBICA3Assign Documents Automatically

ObsoleteObsolete

Real Time Processing

New user experience Improved data drill down

Reduced time to close books• Improved and

accelerated automated matching

• No more batch jobs, real time analysis supports continuous intra-period process execution

• Improved user experience and enhanced data drill down reduce manual reconciliation effort

• Better process oversight through new management dashboard

Next Gen User Experience

Fully Renewed User Roles

• General Ledger Accountant

• Cost Center Manager

• Collection Specialist

• Credit Manager

More roles planned to follow

LAB PREVIEW


Transactional

Insights to Action Search and Explore

SAP Smart Business Factsheet

Task-based Access

*

Next Gen User Experience – Types of Fiori Applications

Transaction Fiori Applications – Examples

20

Collections Worklist

Lab preview

Prioritize activities automatically based on collections strategies

Track progress against daily collections goals

Trigger reassignment of items to balance workload Process Receivables

Dive deep into details of customer account

View receivables aging information

Capture and track customers’ promises to pay invoices

Lab preview

Smart Business Cockpits

Available Cockpits for

• Financial Close Manager

• Receivables Manager

Planned Cockpits for

• Chief Financial Officer

• Cash Manager

• Payables Manager


LAB PREVIEW

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

• Solution shall expanded to other SAP solutions for the financial close

New Solutions for Real Time Receivables Management

SAP Receivables Manager

supporting the Receivables Manager in Finance to monitor a continuous process

SAP Customer Financial Fact Sheet

enabling sales representatives to resolveopen issues directly with the customer

Real time

Introducing SAP Cash Management powered by SAP HANA

LAB PREVIEW• Analyzing 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

• Smart Business for Cash Managers, a cockpit to monitor critical KPI’s, also on a mobile device


Easy Migration to SAP Accounting powered by SAP HANA Install Financials add-on for SAP

ERP 6.0 EhP 7

Compatibility of new accounting solution with other SAP ERP modules*

Current SAP ERP processes and reporting run on new accounting solution with little or no changes

Migrate to new solution at any month end with low effort

* SAP Accounting powered by SAP HANA does not provide all capabilities of current FI/CO



SAP Business Planning and Consolidation 10.1

• Unification of current BPC and BW capabilities in a single model for planning and consolidation

• Unified models based on BW meta-data utilizing proven data harmonization services provided by BW

• Seamless integration with SAP Accounting powered

by SAP HANA (no data replication, business content)

• End-user centric plan configuration and planning capabilities (incl. UI) provided by BPC NW 10.1

• Support for integrated business planning, dynamic modeling and simulation

• HTML5 UI support for device-independent planning

SAP HANA Platform

SAP ERP / 3rd party ERP

SAP NetWeaver /SAP Business Warehouse

EPM Excel Add-in / Analysis for Office / HTML 5 Web UI

SAP Business Planning and Consolidation 10.1, version for SAP

NetWeaverBPC NW and BW-IP come together in Unified BW-based

model

SAP Planning and Consolidation

BP

CB

W

LAB PREVIEW


Architecture for Integrated Business Planning

SAP HANA PlatformSingle source of truth

SAP ERP SAP BPC

BW

Additional customer benefits

• Fully harmonized master data and data between accounting, planning, and financial risk management

• Seamless integration of planning into SAP ERP user interface and workflows

• End-to-end simulation capabilities

Shared data and methods

• Master data (e.g., cost centers)

• Planning model

• Actuals, plans, budgets, forecasts

• Planning engine

• Entry of transactional and master data

• Variance analysis actuals vs. plan

• Entry of planning models and plan data

• Flexible reporting and analysis of actuals

LAB PREVIEW


Architecture for Integrated Business Planning – Detail

HANA Views

ERP Tables: Actual Data

MultiProvider

VirtualProvider

HANA Views

InfoObjects

In-Memory Cube:Plan Data

ERP Tables: Master Data

SAP Accounting powered by SAP HANA

SAP Planning and Consolidation 10.1

Same Architectural Design as Actuals• Single Planning application

resulting in real time plan integration

• Fully supports top down / bottom up at desired level of detail

• Pure Line Item Data Storage • FI and CO Dimensions

combined into a single record• 100% Account based

planning concept - even for CO-PA plan data.

• Shares Master data directly with SAP ERP

• Can apply standard ERP derivation logic.

LAB PREVIEW


Example: Integrated Financial Planning

• Single planning solution for group P&L plan and individual cost center plans, fully embedded in ERP

• Real time access to ERP master data and actuals

• Planning for years or entire account segments and disaggregation to periods and individual accounts

Plan data from departmental plans roll up into group plan in real time, no batch updates required

Account

s

© 2014 SAP SE or an SAP affiliate company. All rights reserved. 30Public

ERP

Central Journal Whiteboard

A traditional BW option also does not allow for central transaction execution, shared use of data between transaction processing, planning, consolidation and reporting, or process optimizations

BWERP

source system(s) central BW system

process optimizations

reporting

business transactions

latency, aggregation

shared data, planning / consolidation features



A consolidation ledger also does not allow for central transaction execution, shared use of data between transaction processing, planning, consolidation and reporting, or process optimizations

ConsolidationLedgers

like HyperionERP

source system(s) consolidation ledger



latency, aggregation

reporting, consolidation shared data, planning / consolidation features

ERPERP


ERP

plan

, co

nsol

idat

e, r

epor

t *

* requires respective SAP products and licenses


Central transaction execution, shared use of data between transaction processing, planning, consolidation and reporting, or process optimizations with central journal

Suite on HANA

SAP HANA(platform)

ERP

source system(s) central journal instancesource system(s)

FinancialAdd-ons



consolidated financial reporting shared data, planning / consolidation features

Real-time

Reconciled


Value Driver: Central process execution

Accounting and Financial Close

Financial Planning and Analysis

Treasury and Financial Risk Management

CollaborativeFinance Operations

Enterprise Risk and Compliance

Management

CollaborativeInvoice to Pay

Travel Management

Receivables Management

Enterprise Risk Management

Controls & Compliance Management

Access Governance

Accounting

Entity Close

Corporate Close

Develop and Translate Strategy

Planning, Budgeting and Forecasting

Profitability and Cost Analysis

Payments and Bank Communications

Cash and Liquidity Management

Debt and Investment Management

Monitoring and Reporting

Reporting and Disclosure

Financial Close Governance

Commodity Risk Management

Shared Services Framework

Financial Risk Management

International Trade Management

dark blue = prime candidate (straight-forward, few customizing or MD requirements), light blue = customer option (more difficult, higher customizing and MD requirements, closer to logistics processes / operational nature, grey = not applicable or recommended

Fraud Management

Audit Management


Value Driver: Central execution (process categories)

Financial reporting Management reporting Tax reporting

Master Data Governance Group cash management Planning and Budgeting Treasury Management Risk Management Fraud Management Shared Services Travel Management

Intercompany Cash Management Receivables Management Billing & Invoicing Collections Management Dispute resolution Payments processing Accounts Payable Bank Communication

Reporting Analysis / Processing Optimization

Customer Engagement Initiative: Simple Finance / Central Journal

35

https://influence.sap.com/ct/s.bix?c=55C80A75-EBD7-481B-A4B6-6C2F8C214248

Contact [email protected] to participate



mailto:[email protected]

Upcoming Events for SAP Controlling Professionals

• Financial Excellence Forum• October 7 – 8, 2014• Newtown Square, PA• http://fm.sap.com/1mobile/

SECHPE512_38870_ban.htm

36

• Controlling 2014 • September 21-24, 2014• San Diego, CA• http://

controlling2014.erpcorp.com/

Don’t miss out

register today !!!

Questions

• Now:• Ask questions now for immediate answers

• Later:• [email protected]

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Q&A

Disclaimer

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