SAP S/4HANA Finance: Central Finance Deployment Option

Solution Overview
Carsten Hilker & Oliver Schoenborn, SAP
March, 2017

PUBLIC
Finance in a Time of Digital Transformation

How will I get there ?

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S/4HANA adoption options

Greenfield S/4HANA (OP or cloud)

SAP or non-SAP system

Migrate S/4HANA (OP or cloud)

 greenfield stays greenfield

 brownfield stays brownfield
SAP ECC system

migrate

Central Finance S/4HANA (OP or cloud) – add

 greenfield or brownfield into greenfield data

SAP ERP system(s) replication

non-SAP ERP system(s)

future (M&A) system(s) Central Finance (S/4 HANA-based) instance

non-disruptive (keep)

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THE Non-Disruptive Step Towards S/4HANA Finance
Central Finance as Your Future Finance Foundation

*
* *
SAP S/4HANA Central Finance Foundation (Central Finance) is an
S/4HANA system, installed as side-car, receiving financial accounting
* *
transactions via real-time replication from SAP or non-SAP ERP source
systems. Bz Model
agnostic
Single
Source of Truth

Real-time
Central Finance Provides: replication Drill-back

 Advanced reporting on segment, entity and group level Finance, Planning

& Consolidation
Transactions
AND analytics

 Scalable execution of local and central processes

 A transformation platform for the digital business Fiori and Excel

SAP HANA
Central Finance comes with a set of enabling technologies that allow any
enterprise to start using SAP S/4HANA Finance innovations in as little as
Harmonized System Landscape
3-6 months.

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Central Finance: Enabling Capabilities

Centrally deployed ERP systems for Finance have been around for a long time; typically realized as customer projects using SAP or non-SAP
ETL tools. For Central Finance a set of enabling integration capabilities* (product, content, and use rights) is available as alternative to
traditional manual integration.

Enabling Technologies:
Cloud Ready
 Initial Data load and simulation
 Data Logging (SAP source systems)
SAP  Real-time Replication
S/4HANA
SAP non-SAP SAP HANA
SAP HANA
SAP
Enterprise  Business Mapping
ERP systems ERP systems S/4HANA
Management
 Data Digitization
SAP S/4HANA  Inbound posting
future systems (M&A)
Finance  Error correction
 Data Reconciliation
 Back-posting
* additional license(s) including SAP S/4HANA Finance for Central Finance foundation required

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 Value Pillars

Advanced reporting Scalable execution Transformation platform

at segment, entity and group level of local and central processes for the digital business

 Business model-agnostic roll-up  Alternative / complement to process  Advanced digital finance data
reporting and growth (re-org/ M&A) execution in source ERP systems architecture (universal journal)
extrapolations  Process centralization (cross-  Single source of truth for transactions
 Embedded planning and real-time organization, shared service); and analytics
consolidation economies of scale  Digital core cloud connectors
 User front-end agnostic / self-service  Cycle-time reducing Fiori-based and (workforce, network, customer, IoT),
real-time reporting including MS Excel HANA-optimized process execution HCP ready

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Scalable Execution of Local and Central Processes
Process Candidates in Focus Areas

Value Proposition
Financial Accounting and Treasury and Finance Enterprise Risk
Planning and Financial Close Financial Risk Operations and Compliance
 Alternative / complement to process execution
Analysis Management Management
in source ERP systems
 Process centralization (cross-organization,
Strategy Payments and
shared service); economies of scale
Receivables Enterprise Risk
Development and Accounting Bank
Management Management
 Cycle-time reducing Fiori-based and HANA-
Translation Communications optimized process execution
Planning, Controls &
Cash and Liquidity Invoice
Budgeting and Entity Close Compliance
Management Management
Forecasting Management Key functions and features
Profitability and
Debt and
Travel International Trade
S/4HANA Finance processes
Corporate Close Investment
Cost Management
Management
Management Management  Financial Planning & Analysis
 Accounting & Financial Close
Monitoring and Reporting and Real Estate Fraud
Reporting Disclosure
Financial Risk
Management Management Management  Finance Operations
 Cash / Treasury Management
Financial Close Commodity Risk Financial Shared Audit
Governance Management Services Management
S/4HANA Innovations
 Universal Journal, single source of truth
 Single platform for planning, consolidation,
transactions and analysis Fiori user interaction /
user experience
= core Central Finance focus areas = secondary focus / optimization candidates

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 Scalable Execution of Local and Central Processes
Process Candidates
black = available today
blue = roadmap item

 Financial reporting  Financial Accounting  Closing Cockpit

 Management reporting  Management Accounting  Planning and Budgeting
 Business Analytics  Intercompany Reconciliation  Real-time Consolidation
 Tax Reporting  Accounts Payable (pilot note available)  Disclosure Management
 Accounts Receivable (pilot note available)  Master Data Governance
 Credit Management  Financial Shared Services
 Collections Management  Exception / Fraud Management
 Dispute Management
 Group / Cash Management (one exposure based)
 Cash Position / Liquidity Forecast

Process implementation requires process configuration, master data load / maintenance and process design. Consult with local account team, SAP SI partners and / or
SAP solution management and review Central Finance roadmap for planned innovations and improvements regarding options and availability
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 Advanced Reporting
On Segment, Entity and Group Level

Key functions and features

Value Proposition
 Embedded planning and real-time consolidation SAP HANA database
 Roll-up reporting and growth extrapolations (Business model-agnostic)  HANA-based Reporting & Analytics
 Self-service real-time reporting including MS Excel (User front-end agnostic)  Predictive analytics
 Big Data scenarios

S/4HANA Platform
 Cloud connectors / HCP connectivity
 Enterprise KPI repository
 Digital boardroom

S/4HANA Finance Innovations

 Universal Journal, single source of truth
 Single source of truth for transactions and
analysis
 Fiori user interaction / user experience
 Excel-based data queries and analysis

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 Transformation Platform
For the Digital Enterprise

Value Proposition Key functions and features

 Advanced digital finance data architecture (universal journal) S/4HANA Platform
 Single source of truth for transactions and analytics  Cloud connectors
 Cloud connectors and HCP ready Workforce Supplier Collaboration
 HCP connectivity
Engagement Business Networks
 Enterprise KPI repository
 Digital boardroom
Cloud Ready S/4HANA Finance Innovations
 Universal Journal, single source of truth
SAP non-SAP SAP  Single (same) platform for transactions
SAP HANA S/4HANA
ERP
systems
ERP
systems Enterprise
and analysis
Assets & Customer
Management
Internet of Things Experience Omni-Channel  Fiori user interaction / user experience
future systems SAP S/4HANA
(M&A) Finance
SAP HANA Platform

Build Extend Integrate

New Cloud Apps Business Apps Everything

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Balancing Investment Protection and Innovation
Choose from Flexible Project and Production Deployment Options

Traditional licensing with Combination of On Premise Subscription licensing with

customer control of and cloud capabilities. deployment in the private or
deployment and maintenance Extend processes to the cloud hosted cloud
without need for replication

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 Central Finance Business Benefits

Determine viable new business models and growth opportunities in the digital economy by predicting outcomes, and flexibly adapt structures
and processes to changes and information. Translate live data into informed, quick decisions and reduce costs while improving service.

Efficiency Versatility Transparency

(Shared Resources / Automation) (Adaptability / Agility) (Clarity / Foresight)

 Improve process efficiency, self-service analytics  Realize cross-entity market potential  Quickly adapt to changing business environments
 Integrate, standardize, automate – anticipate  Optimize resource allocation  Align individual with corporate goals
 Eliminate costs for interfaces and reconciliation  Manage profitability on digital  Establish single source of truth, corporate
micro-segment levels vs individual memory
 Minimize manual processes, reduce costs for
different processing methods  Improve cash management, collections,  Introduce automated exception management
 Reduce cycle times / transaction cost, re-deploy and receivables
labor to higher value-added activities

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 Central Finance Use Cases

 Data Harmonization
 Finance Business transformation
 Information standardization (reporting
and common KPI repository) Synchronization  Enterprise digitization
 Finance organization digitization

Automation Transformation

 Zero-touch Finance
 Application / interface rationalization,
 Exception-based finance system decommissioning
management and finance operations
Central
 Process execution (Fiori)
Finance
 Moving to the cloud / leveraging the
cloud (HCP)
Business Model
Simplification
 Process centralization (economies of evolution
scale / shared services)
 ERP system consolidation, Reporting
 Re-organizations, Merger & and transactions in one system
Acquisitions / Tax Inversions Consolidation (OLAP/OLTP)
 Integrated planning, consolidation,
transaction recording and reporting
(4:1)

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Top Benefits of Central Finance

1 Transparency 2 Flexibility
Increase transparency with a single, central source of truth of Quickly adapt to changing business environments and implement
harmonized financial data for local, entity and group reporting your own growth activities & business model changes

3 Efficiency 4 Service Level

Improve process efficiency by integration, standardization, and Improve the service level provided to stakeholders; service quality,
automation of business processes accuracy, speed and timeliness, optimally in self-service scenarios

5 Cost reduction 6 Working Capital Improvement

Reduce maintenance of multiple systems, applications, and Simplify your cash-, collections-, and receivables management and
interfaces, improve and innovate local and introduce centralization improve your working capital
and economies of scale (shared services) to process execution

7 Simplification 8 Business Continuity

Run simple and live with one rationalized, and consolidated Connect your SAP and non-SAP ERP landscape without disruption
solution for transaction recording, reporting, planning and to S/4 to run as a digital business, capture market and
consolidation transformation potential via cloud and subscription options

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 Do You Want to Know More about Central Finance
SAP’s Best Bets for additional Solution Information

 Take a look at Not Your

Father’s
www.sap.com/Finance

 Central Finance Jam Group

https://jam4.sapjam.com/groups/about_page/AxCsjjE4BEWIoKrQH
1IxK3 Finance
 Solution brochure (Central Finance )
https://www.sap.com/documents/2016/08/4c0a7b06-837c-0010-
82c7-eda71af511fa.html

 Central Finance Demo Video

https://www.youtube.com/watch?v=E6bemVlByKg&feature=youtu.
be

 LinkedIn group (Central Finance)

https://www.linkedin.com/groups/13517027

 SAP help portal (Central Finance)

https://help.sap.com/saphelp_sfin300/helpdata/en/93/54c0540cf5ef0
5e10000000a4450e5/frameset.htm

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