Bert Meyerink IBM Global SAP CoC - Ovärderlig · PDF fileSAP$Simple$Finance$key$funconal...

© 2015 IBM Corporation

Bert Meyerink IBM Global SAP CoC


What is and Why S/4HANA ?

Establish baseline for e.g. S/4 HANA Finance

SAP S/4 HANA – SAP´s Next Big Thing

IBM Internal Use Only

SAP S/4HANA, more than a Database It is the next generation business suite

Procurement & Travel

HCM

HCM

Mktg & E-Commerce


SAP New Branding Strategy



Why S/4HANA Finance?

Addressing Pain Points and Delivering Business Outcomes

IBM CFO Engagement Findings meets SAP S/4HANAFinance Capabilities

What?

Key?

Why?

How?

Innovative solution

CFO driven Value Proposition

Services (PoV; Architecture; Cloud / On Premise; Consulting, delivery & Support)

IBM

Clie

nt c

ente

r Lab

for S

AP

Sol

utio

ns

S/4HANA Finance

The new capabilities enable this by Universal Journal & Central Finance

Instant insight

Intuitive user experience by

Fiori

BPC + Cash Management as embedded option Single Source of Truth

Single version of the truth in real-time

CFO Survey Key Findings

Drive enterprise agility through enterprise integration

§  Almost all aspects of CFO role have increased in importance over the past 3 years.

§  The gaps between importance and effectiveness have grown since 2005, demonstrating growing business pressures.

Areas of importance-historical

Measure/monitor business performance

Provide inputs into enterprise strategy

Develop talent in the finance organization

Optimize planning budgeting, and forecasting

Drive enterprise cost reduction

Support/manage/mitigate enterprise risk

Drive integration of information across the enterprise

Execute continuous finance process improvements

Strengthen compliance programs/internal controls

Manage investor/stakeholder relations

Process transactions

Importance 2010 Importance 2013

50% 60% 70% 80% 90% 100%

Largest gaps between importance and effectiveness

50%

2013

2005

19%

34%

46% 42%

37%

27%

37% 33%

205% increase

35% increase

Drive integration of information across the

enterprise

Develop talent in the finance organization

Optimize planning, budgeting, and

forecasting

Measure/monitor business

performance

Execute continuous finance process improvements

How S/4HANA Finance Addresses the Seven Pain Points

S/4HANA Finance key functional benefits

IBM CFO study Key Aspects

Boosts Finance

Efficiency (FE) and / or

Business Insight (BI)

IBM and SAP agreed relative

importance of each activity

Specific SAP Si/$ HANA Finance which enables the capability beyond classic SAP FI / CO

1 Drive integration of information across the Enterprise effectively (single source of truth).

FE + BI Very High Universal Journal to achieve a virtual single operating model, Integrated Business Planning, Cash Management, Fraud Management, and so on

2 Drive enterprise cost reductions. FE High Improved automation capabilities in nearly all areas, example: Lease Administration

3 Measure / monitor business performance. BI High Consistent business insights and prediction capabilities across

all Finance value map elements

4 Optimize planning, budgeting, and forecasting. FE + BI High Integrated Business Planning, Cloud for Planning

5 Execute continuous finance process improvements. FE High

Financial Close, Planning, Forecasting and Budgeting, Managing Money, Finance Operations, Fraud and Audit Management

6 Provide inputs to enterprise strategy. BI Medium Extended simulation flexibility and speed through on-the-fly calculation capabilities

7 Develop talent in the finance organization. BI Medium Modern user experience, improved automation capabilities to

get rid of transactional activities

KPI no . 1 - Drive integration of information across the enterprise SAP Simple Finance key func2onal benefits SAP Simple Finance benchmark

•  Central Journal: One central finance pla2orm for the en7re group with full line item detail •  One common view of financial and opera7onal data, to help ensure enterprise-‐wide consistency and reduce reconcilia7on 7me and errors. Built-‐in harmoniza7on between financial and managerial accoun7ng

•  Real-‐2me data across all financial dimensions •  Cash and Liquidity Management: Provide real-‐7me insight into global sources/uses of cash •  Dept and Investment Management: Analyze financial exposure and advanced risk-‐measurement methods •  Financial Risk Management: Assess alterna7ve risks and scenarios to determine op7mal course of ac7on •  Commodity Risk Management: Provide end to end visibility into commodity price posi7ons •  Enterprise Risk Management: Gain a beIer understanding of risks and link them to business value •  Controls and Compliance Management: Enable effec7ve repor7ng on policies and controls •  Access Governance: Automate detec7on and preven7on of access risk viola7ons •  Interna2onal Trade Management: Streamline cross border supply chain and compliance ac7vi7es •  Fraud Management: Detect of paIerns that indicate fraud, to reduce financial losses •  Audit Management: Standardize audit planning, documenta7on, test procedures and repor7ng •  BeMer corporate alignment and agility due to direct end user access to insight •  Lower opera7onal risks from fraud and other noncompliance ac7vi7es

•  56 % lower treasury and cash management FTEs

•  26 % increase in 7me spent on analyzing trend and data

•  22 % lower audit cost •  39 % lower compliance & risk management FTEs

•  50 % reduc7on in the average 7me required for loss documenta7on


What is S/4HANA Finance?

SAP S/4HANA Finance Key Features

Challenges of the Current Architecture Multiple Sources of Truth

Reconciliation

Reconciliation

The combined content of several tables represents “the truth”. Reconciliation efforts

are enforced by design.

Components are structured differently (example: fields / entities differ)

Multiple BI extractors needed to cover the complete truth in BI.

There is a need “to move” data to the appropriate table for reporting (e.g.

“settlement”).

Different capabilities in the components (customer fields, currencies, multi-GAAP etc.)

Key Feature #1: The New Principle of One – Universal Journal

The Universal Journal: §  Combines and harmonizes the good

qualities of all accounting components and can also be extended with customer fields

§  Allows you to establish a single source of truth for getting more financial insight, with a higher data quality due to built-in ERP validations

§  Supports Account Based COPA only

Universal Journal

§  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 §  Secondary cost elements are G/L accounts §  Data stored only once: no reconciliation needed by design §  Reduction of memory footprint through elimination of redundancy (No Index tables, No

Total tables) §  Fast multi-dimensional reporting possible without replicating data to business warehouse

(BW) §  If BW is in place anyway, only one single BI extractor needed (instead of many today) §  Non-disruptiveness–for ABAP program perspective, “read access” remains the same §  SAP provided “compatibility views”, which redirects the program to the new format in

HANAs

Key Feature #2: Migration to Central Finance Scenario

Benefit from SAP S/4HANA Finance without touching your existing system landscape

SAP ERP SAP R/3

CO Document

FI Document

Non-SAP

FI Document

SAP LT Replication

Server (SLT)

System Landscape

Transformation

Database trigger

Database trigger

MDG (Master Data Governance)

SAP Simple Finance

Central Finance

Accounting Interface

Business Mapping

ECS Error Correction Suspense Accounting

Internal Accounting Interface

HANA

Universal Journal Entry

§  Real-time replication §  Data harmonization "on the fly" §  Data quality by built-in validation §  Inherently reconciled §  Fully traceable

§  Real-time replication of financial (FI) and management accounting (CO) postings from several source systems into a central S/4HANA 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 §  Single Source of Truth for Financial Data for reporting and planning

Migration to Central Finance Scenario

Key Feature #3: S/4HANA Finance Accounting Benefits by Area

General Ledger

S/4HANA Finance

General Ledger

Accounts Receivable

Accounts Payable

§  Finance documents copied from source systems to the central journal for line item consolidation

§  Simplified Master Data as Cost Elements are now GL Accounts

§  One Central platform for GL and Consolidation preparation.

§  Line item detail available §  BSEG continues to have a

999 line limit, but ACDOCA does not (summarized entries) appear in detail within ACDOCA

§  Central platform to quickly integrate newly acquired business into Central Journal

§  Eliminates FICO Reconciliation

§  Elimination of FICO reconciliation §  Extended Account Based COPA

§  Process simplification §  One view to customer §  Line item level details §  One view of cash §  New User Experience with Fiori apps and

NWBC

§  Process simplification §  One view to vendor §  Line item level details §  One view of cash §  New User Experience with

Fiori apps and NWBC

Accounts Receivable

Accounts Payable

Controlling


CFO View? Case for S/4HANA Finance

The Case for S/4HANA Finance – The CFO View

§  S/4HANA Finance is highly focused on CFO’s requirements to run a real-time business.

§  This is an opportunity to help the CFO and Finance Function on the transformational journey around access to real time data and transformed business processes.

§  S/4HANA Finance is expected to offer a wide range of benefits with a very friendly user interface enabled by a number of SAP Fiori apps. These include:

–  Single Source of Truth –  On-the-fly capabilities for moving period end finance processing, such as GR/IR clearing, cost allocations

and FICO reconciliations, from batch to real time –  Innovative rapid planning and forecasting –  New reporting and analytics capabilities for finance users –  Cost efficiency by Cloud and Data Footprint reduction

# Risk Root cause 1 Benefits of Universal Journal (ACDOCA) and Single

Version of Truth not realized In order to benefit from having a Single Version of Truth technically via Universal Journal, the business needs to have a so called Coding Block concept (see next slide).

2 S/4HANA Finance is maturing S/4 HANA Finance has a huge number of OSS notes (+2000) since it was launched in April 2015.

3 S/4HANA Finance has release restrictions documented in OSS note 2127080

E.g. some Fiori apps are not adopted yet for ACDOCA structure and the functionality of "Transfer prices" valuating the transfer of a good or service according to legal, group or profit center valuation is not yet supported. For Greenfield implementations there are options to overcome this problem.

4 New General Ledger considerations In case your source system is not using New G/L functionality but you want to use New G/L functionality in S/4 HANA Finance you will need to care of that during the migration yourself. As an alternative you could migrate to New G/L in you source system first before migrating to S/4 HANA Finance.

5 Migration Time required A migration from SAP ECC to S/4 HANA requires easily more then a long weekend of 72 hours. In theze case the NearZeroDownTime (NZDT) scenario should be an option to consider.

IBM Confidential

S/4HANA Finance 2.0 - IBM Lessons Learned

Measures

Reporting Dimensions

Examples: Legal Entity, Territory, Sales Channel etc. as depicted in Merck's RPP Reporting Files

P&L, Balance Sheet, Cash Flow and KPI´s

Recorded Derived

FOCUS Chunk ´XYZ´

Recorded

Calculated

PMI´s Reporting Requirements need to be translated in Coding Block concept to guarantee transparency when implementing the Universal Journal

Responsibilities to be addressed by Data Ownership

Allocations to be addressed by distribution and assessments

Standardized Processes

Responsibilities to be addressed by Process Ownership

Consolidation

Conclusion §  S/4HANA Finance is still maturing

§  S/4 HANA Finance is not complete - there are several product shortcomings

§  There is a need for better insight in SAP future roadmap regarding S/4HANA Finance and Logistics

§  There seems to be a lack of Development Capacity and Enterprise Application Architecture

§  That is causing our customers not to be able or willing to implement S/4HANA Finance right now.


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