What is SAP

Simple Finance?

Carsten Hilker
SAP 2014 ERP Corp. All rights
reserved.
 Introduction

Since the official release of SAP Simple Finance during SAPPHIRE, there has
been tremendous interest in the latest, next generation SAP Finance solution
Well 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

3
 Aligned
Single 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

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

SAP HANA Enables a Single Source of Truth

Separation of Transactions, Analysis, One data instance as common basis

and Accelerated Reporting for Transactions, Analysis, and
Reporting

SAP HANA
Cache
(DRAM)

Transact Analyze Accelerate

Various copies of data in different data models A single data copy in a shared data model
Inherent data latency and alignment issues Aggregation of elementary records in real time
Serial processes to ensure data quality From serial processes to event driven
collaboration

2014 SAP AG or an SAP affiliate company. All rights reserved. 5

Architecture of SAP Accounting powered by SAP HANA

Stability Flexibility
From

Totals & Indices Customer Benefits

FI Processing
Document Financial Accounting
Logistics
Harmonized internal
Document Pre-Defined Aggregates and external
reporting
CO Totals & Indices
Analytics
Document
Management Account. Higher flexibility in
reporting and
analysis
To Stability Flexibility Significantly reduced
reconciliation effort
Significantly reduced
Processing memory
FI Document consumption
Aggregation on the fly
Logistics
Document via HANA views Central journal for
CO Document heterogeneous
Analytics system landscapes
Logical document

2014 SAP AG or an SAP affiliate company. All rights reserved. 6

Reporting Architecture

Reporting Interfaces

Web Business
Fiori Apps
Dynpro Objects BI

Embedded BW (queries)

SAP HANA Live (Virtual Data Model Logical Documents)

Physical Documents

Master
FI CO CO-PA Master Data

2014 SAP AG or an SAP affiliate company. All rights reserved. 7

Reporting with Fiori Applications

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
2014 SAP AG or an SAP affiliate company. All rights reserved. 8
Reporting with SAP BusinessObjects Business
Intelligence

Discovery and analysis Dashboards and apps Reporting

Discover. Predict. Create. Build engaging experiences Share information
Lumira Design Studio Crystal Reports
Explorer Dashboards Web Intelligence
Analysis for Office / for OLAP

2014 SAP AG or an SAP affiliate company. All rights reserved. 9

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

2014 SAP AG or an SAP affiliate company. All rights reserved. 10

Harmonized Internal and External Reporting Example
WIP

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

2014 SAP AG or an SAP affiliate company. All rights reserved. 11

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
2014 SAP AG or an SAP affiliate company. All rights reserved. 12
Significantly Reduced Memory Consumption

18,5x
Smaller data
footprint observed
based on real
customer data

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

2014 SAP AG or an SAP affiliate company. All rights reserved. 13

 Agile
Real 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

2014 SAP AG or an SAP affiliate company. All rights reserved. 14

 The Real Time Process Revolution

Continuous Real-time
intra-
reporting
period execution

Real-time Elimination of Personal Instant

Continuous
process insight to
batch execution Process analytics
execution action

Acceleration of Intra-period
bottleneck steps simulations

Process status Transactio Control Real-time process

analytics n and risk oversight
monitoring analytics

2014 SAP AG or an SAP affiliate company. All rights reserved. 15

Financial Close: Transition to Continuous Processing

Entity Corporate
Traditional Financial Close Close Financial Close on SAP HANA
Close

Reporting
on-
demand

Real-time analytics for

process oversight
Within the Within the
period Period End period Period End
Close Close

Close processes involve >100 tasks per entity with Processes designed for real-time operations
complex dependencies and batch bottlenecks eliminate close bottlenecks

Challenges Benefit Drivers

Multiple batch run dependencies Eliminate end of period batch bottlenecks
Batch bottlenecks delay downstream activities Continuous intercompany reconciliation
High error correction efforts Continuous financial reporting visibility
Complex issues delayed till post close CO-PA & line item detail reconciliation
Time pressured resolutions Automation for routine tasks
Delayed visibility to reporting Full management visibility of close tasks

2014 SAP AG or an SAP affiliate company. All rights reserved. 16

Financial Close: Intercompany Reconciliation on the Fly

Reduced time to
close books
Improved and
accelerated automated
matching
No more batch jobs, real
FBICS3 FBICA3 FBICR3 time analysis supports
Select Documents Assign Documents Automatically Reconcile Documents
continuous intra-period
process execution
Improved user
experience and
enhanced data drill down
reduce manual
reconciliation effort
Better process oversight
through new
management dashboard

New user experience Improved data drill

down
2014 SAP AG or an SAP affiliate company. All rights reserved. 17
Next Gen User Experience

Fully Renewed User

Roles
General Ledger
Accountant
Cost Center
Manager
Collection Specialist
Credit Manager
More roles planned to
follow

2014 SAP AG or an SAP affiliate company. All rights reserved. 18

Next Gen User Experience Types of Fiori Applications

Transactional SAP Smart Business Factsheet

Task-based Access Insights to Action Search and Explore

*
Transaction Fiori Applications Examples

Dive deep into details of customer account

View receivables aging information
Capture and track customers promises to
pay invoices

Collections Worklist
Prioritize activities automatically based on
collections strategies
Track progress against daily collections goals
Trigger reassignment of items to balance
workload Process Receivables

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Smart Business Cockpits

Available Cockpits for

Financial Close
Manager
Receivables Manager

Planned Cockpits for

Chief Financial Officer
Cash Manager
Payables Manager

2014 SAP AG or an SAP affiliate company. All rights reserved. 21

SAP Smart Business for Financial Close

Cockpit to monitor the

progress of the entity close
via KPIs, 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

Real
time

SAP Receivables Manager SAP Customer Financial Fact Sheet

supporting the Receivables Manager in enabling sales representatives to resolve

Finance to monitor a continuous process open issues directly with the customer
Introducing SAP Cash Management powered by SAP
HANA

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 KPIs, 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

2014 SAP AG or an SAP affiliate company. All rights reserved. 25

SAP Planning and Consolidation

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 EPM Excel Add-in / Analysis for Office
proven data harmonization services provided by BW / HTML 5 Web UI

Seamless integration with SAP Accounting powered SAP Business Planning and

BPC
Consolidation 10.1, version for SAP
by SAP HANA (no data replication, business NetWeaver
content) BPC NW and BW-IP come together in Unified BW-based
model

End-user centric plan configuration and planning SAP NetWeaver /SAP Business
capabilities (incl. UI) provided by BPC NW 10.1 Warehouse

BW
Support for integrated business planning, dynamic SAP HANA Platform
modeling and simulation

HTML5 UI support for device-independent planning SAP ERP / 3rd party ERP

2014 SAP AG or an SAP affiliate company. All rights reserved. 26

Architecture for Integrated Business Planning

Entry of Entry of planning

transactional and models and plan
master data data
Variance analysis Flexible reporting
actuals vs. plan and analysis of
actuals Additional customer
benefits
SAP ERP SAP BPC
Fully harmonized master
BW data and data between
accounting, planning, and
financial risk
SAP HANA Platform management
Single source of truth Seamless integration of
planning into SAP ERP
Shared data and methods user interface and
Master data (e.g., cost centers)
Planning model
workflows
Actuals, plans, budgets, forecasts End-to-end simulation
Planning engine capabilities

2014 SAP AG or an SAP affiliate company. All rights reserved. 27

Architecture for Integrated Business Planning Detail

SAP Accounting powered by SAP HANA Same Architectural

SAP Planning and Consolidation 10.1 Design as Actuals
Single Planning application
resulting in real time plan
integration
Fully supports top down /
MultiProvider bottom up at desired level of
detail
Pure Line Item Data Storage
FI and CO Dimensions
VirtualProvider InfoObjects
combined into a single record
100% Account based
planning concept - even for
HANA Views HANA Views In-Memory Cube:
Plan Data
CO-PA plan data.
Shares Master data directly
with SAP ERP
ERP Tables: ERP Tables: Can apply standard ERP
Actual Data Master Data derivation logic.

2014 SAP AG or an SAP affiliate company. All rights reserved. 28

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

2014 SAP AG or an SAP affiliate company. All rights reserved. 29

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

business transactions

latency, aggregation process optimizations

shared data, planning / consolidation features

ERP
ERP BW
reporting

source system(s) central BW system

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

Central Journal Whiteboard

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

business transactions

latency, aggregation process optimizations

shared data, planning / consolidation features

ERP Consolidation
ERP Ledgers
like Hyperion reporting, consolidation

source system(s) consolidation ledger

2014 SAP SE or an SAP affiliate company. All rights reserved. Public 31

Central Journal Whiteboard

Central transaction execution, shared use of data between transaction processing,

planning, consolidation and reporting, or process optimizations with central journal

plan, consolidate, report *

Financial
Add-ons
business transactions


Real-time
Reconciled Suite on process optimizations
HANA

ERP
ERP
SAP HANA
shared data, planning / consolidation features

(platform)
consolidated financial reporting

source system(s) central journal instance

* requires respective SAP products and licenses

2014 SAP SE or an SAP affiliate company. All rights reserved. Public 32

Value Driver: Central process execution

Financial Planning Accounting and Treasury and Collaborative Enterprise Risk

and Analysis Financial Close Financial Risk Finance Operations and Compliance
Management Management

Develop and Translate Payments and Bank Receivables Enterprise Risk

Accounting Management
Strategy Communications Management
Controls & Compliance
Planning, Budgeting Cash and Liquidity Collaborative Management
Entity Close
and Forecasting Management Invoice to Pay
Access Governance
Profitability and Cost Debt and Investment
Corporate Close Travel Management
Analysis Management International Trade
Management
Monitoring and Reporting and Financial Risk Shared Services
Reporting Disclosure Management Framework Fraud Management

Financial Close Commodity Risk

Governance Management Audit 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

2014 SAP SE or an SAP affiliate company. All rights reserved. Public 33

Value Driver: Central execution (process categories)

Financial reporting Intercompany Master Data Governance

Management reporting Cash Management Group cash management
Tax reporting Receivables Management Planning and Budgeting
Billing & Invoicing Treasury Management
Collections Management Risk Management
Dispute resolution Fraud Management
Payments processing Shared Services
Accounts Payable Travel Management
Bank Communication

Reporting Analysis / Processing Optimization

2014 SAP SE or an SAP affiliate company. All rights reserved. Public 34

 Customer Engagement Initiative: Simple Finance / Central Journal

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

Contact carsten.hilker@sap.com to participate

35
 Upcoming Events for SAP Controlling Professionals

Controlling 2014 Financial Excellence Forum

September 21-24, 2014 October 7 8, 2014

San Diego, CA Newtown Square, PA

http://controlling2014.erpcor http://fm.sap.com/1mobile/S
p.com/ ECHPE512_38870_ban.ht
m

36
 Questions

Now:
Ask questions now for immediate answers

Later:
carsten.hilker@sap.com

Q&A

37
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