Lars Fleminggard May, 2015 - sap-sdk.dk future of... · integration for ERP and BPC. ......

Lars Fleminggard May, 2015

The Future of FinanceReal Time Insight for a Volatile World

© 2015 SAP AE or an SAP affiliate company. All rights reserved. 2

The information in this presentation is confidential and proprietary to SAP and may not be disclosed without the permission of SAP. This presentation is not subject to your license agreement or any other service or subscription agreement with SAP. SAP has no obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation and SAP's strategy and possible future developments, products and or platforms directions and functionality are all subject to change and may be changed by SAP at any time for any reason without notice. The information in this document is not a commitment, promise or legal obligation to deliver any material, code or functionality. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. This document is for informational purposes and may not be incorporated into a contract. SAP assumes no responsibility for errors or omissions in this document, except if such damages were caused by SAP´s willful misconduct or gross negligence.

All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates, and they should not be relied upon in making purchasing decisions.

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Simple Finance on S/4HANA


S/4HANA

SAP HANA Platform

AlignedSingle Source of Truth

AgileReal time finance processes

PredictiveInsight and foresight

SAP Cash Management powered by SAP HANA

New product for Group Cash Management

SAP Accountingpowered by SAP HANA

Alternative in-memory functionality for ERP customers

Integrated Business Planning

New capabilities and enhanced integration for ERP and BPC.


What is the business vision of SAP Simple Finance?

Single source of truth

Real-timeprocesses

Dynamic planning and analysis

SAP Simple Finance will enable the next phase of Finance transformation reshaping both transactional and analytical Finance processes through instant insight-to-action based on real-time information..

Transformation of periodic (e.g., monthly) Finance processes, with peak activity at period end, into event-driven continuous processesvia real-time information.

Embedded financial modeling with integrated planning, predictive forecasting, automated alerts and pervasive scenario simulation

Harmonized information provided by a seamless central Finance platform. Flexible on-the-fly aggregation from individual line items replacing pre-built aggregates.

FINANCE TRANSFORMATION ENABLED BY SAP SIMPLE FINANCE


Why is SAP Simple Finance so much easier to use?

NEW USER EXPERIENCESAP Simple Finance provides intuitive user experience for analysts, line managers and transactional users. SAP’s Business Intelligence available today, new Fiori user interfaces are being developed.

User-defined visual reporting with SAP’s Business Intelligence solutions. Real-time access to ERP data from Microsoft Office (enabled by Analysis for Office).

Dashboards for managers with real-time reporting and drill down for root cause identification. Dashboards are configurable and multi-device capable.

Higher ease of use for transactional users through fully renewed user experience. First renewed roles planned to be globally available in early 2015.

Business Intelligence Smart Business Cockpits Renewed UIs (Fiori)

Flexible analytics with Business Intelligence

Renewed user experience for transactional roles (planned)

Dedicated dashboards for Finance and line managers

Demonstration State of Finance


What is the business vision of SAP Simple Finance?

Single source of truth

Real-timeprocesses

Dynamic planning and analysis

SAP Simple Finance will enable the next phase of Finance transformation reshaping both transactional and analytical Finance processes through instant insight-to-action based on real-time information..

Transformation of periodic (e.g., monthly) Finance processes, with peak activity at period end, into event-driven continuous processesvia real-time information.

Embedded financial modeling with integrated planning, predictive forecasting, automated alerts and pervasive scenario simulation

Harmonized information provided by a seamless central Finance platform. Flexible on-the-fly aggregation from individual line items replacing pre-built aggregates.

FINANCE TRANSFORMATION ENABLED BY SAP SIMPLE FINANCE


Aligned – Single Source of Truth

What value does it provide?• Planning: real-time access to master data, hierarchies &

actuals • Operational reporting in real-time • Faster and higher flexibility in reporting and data

customization • Transactions are faster – no updates anymore • General Ledger has same (and more) capabilities as New

G/L • Flexible drill-down to line item details

Transactional processes (FI and CO)

Harmonized line-item data available in real-time

Business planning processes

Analytical processes (BI, predictive)

Legacy ERP Legacy ERP Legacy ERP

SAP SIMPLE FINANCE PROCESSES

Interfaces stay the same

Both transactions, operational reporting and planning are available in the same system. Data is stored at the lowest level of detail and being aggregated on the fly

INCLUDED IN THE SAME IN-MEMORY BASED SYSTEM



What value does it provide?• Planning: real-time access to master data, hierarchies &

actuals • Operational reporting in real-time • Faster and higher flexibility in reporting and data

customization • Transactions are faster – dramatically reduced no of

updates • General Ledger has same (and more) capabilities as New

G/L • Flexible drill-down to line item details• Single Finance platform for all group reporting, analysis

and processes • Back-end systems to be consolidated over time






Central Journal


• Real-time replication of all finance transactions from legacy systems

Central Finance is not a separate solution but an implementation approach of SAP Simple Finance. It provides a central platform for group-level transactions and analysis without full ERP consolidation.

CENTRAL JOURNAL SCENARIO



Real Time Processes

Real time month end closeAccelerated close with intra-month reconciliation for real time reporting and pre-close simulation

Real time personal analyticsFlexible analytics for instant data access with drill-down along any dimension down to line item level

Next gen user experienceNew role based user interfaces with embedded real time analytics and mobile access for business users



Near Real Time Month End Close

Processes designed for real-time operations eliminate close bottlenecks

Real-time analytics for process oversight

Local close processes involve >100 tasks with multiple 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

Close Batches

Consolidation Batches

Close & Consolidation

Initial Period

Traditional Close

Close & Consolidation

Initial Period

Reporting on-demand

Close enclosed by HANA


Real Time Close: Intercompany Reconciliation on the Fly

FBICR3Reconcile Documents

FBICS3Select Documents

FBICA3Assign Documents Automatically

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


Profitability Reporting - Before

Transact

ETL

Analyze

ETL

Accelerate

Cache

Assigned to Operating Concern

Characteristics/Value Fields

Totals RecordsSummarization Levels…

Moved to InfoProviders

ExtractEnrichLoad…

Transactions

InvoicesSales DocumentsAssessment CyclesSettlementCorrection Postings…

To Finally Deliver

Profitability by Dimension…

SAP‘s Starting Point: Postings to CO-PA loaded to SAP BW every 8 hours


SAP‘s approach to Profitability Reporting

UI: Analysis for Microsoft Office

TransactAnalyze

ETL

DataSource: BW Query

Operating Concern on SAP HANA

CE1 table (transactions)CE4 table (dimensions)

Virtual Info Provider(Create using transaction KEIP)

Result: Postings to CO-PA are visible immediately and close schedule is reduced by three days

Real Time Working Capital Management

23

Real Time Cash and Liquidity Management

Real Time Receivables Management

Real Time Working Capital Analytics

How much cash do I have and how much will I need to fund the business?

What is the status of my key drivers of working capital like DSO or DPO?

How can I accelerate cash collection to improve DSO?

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, acockpit to monitor critical KPI’s, also on a mobile device

SAP Cash Management powered by SAP HANA

Transition to Real Time Receivables Management

Challenges• Resource intense • Manual preparation• High error rate• Multiple process flows• No situation context for resolution• Low resolution rate

Benefit Drivers• Executive management cockpit• Field alerts & payment status

in real-time• Integrated field & AR team

collaboration• Proactive field resolution• Automated payment matching

Expected Benefits

25% Lower DSO

10% Lower Overdue A/R

22% Lower A/R Write-offs

35%

Preparation

Clarification with customer

Review open cases

Monthly1

23

4

Automated AR processing

Resolution with customer

Continuous and alert driven

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


SAP Runs SAP in Finance & ControllingBenefits and KPI‘s

Financial Close On SAP HANA

86%faster

Real-time analytics end-to-end process COPA 27 h to 4 h

91 % faster

67,000+Users

74 %faster

Asset Depreciation

Real-time

Revenue, Profit and Loss Reporting 420

Hours less processing time at quarter end closeFrom 1450 to 1030

17%faster

Software and Maintenance Billing

42%faster

Automatic Cost Accrual Postings

173+

Operative entities and branches

1,300+

Colleagues involved in closing activities

100+Closing activities every month/entity (in average)

8 ½ day

Closing,including group consolidation

5 days less

Automatic Maintenance Revenue Accruals

Search

Type Ahead Search / Fuzzy Search

http://static.freepik.com/fotos-kostenlos/lupe_318-1787.jpg

http://static.freepik.com/fotos-kostenlos/lupe_318-1787.jpg


Simple receivables management through integration of finance & sales functions

10% DSO Reduction

Account ReceivablesReceivables Management

Changes focus from data preparation to analysis & interpretation

28%

40%

Books Closing Fast Close Enablement

Improvement on processing time

Reduction in GL posting corrections

I/CO reconciliation moved to a real time process

70%

Intercompany Reconciliation Real-time

HANANo aggregatesIncreased performance

Reduction in time to process reconciliation issues

SAP Simple Finance @ SAP Major Values Realized


PredictiveDynamic Planning and Analysis

Recognize trends and anticipate future risks earlier

Better understand the impact of changes to your business

Adapt more dynamically to external shifts with a joint plan

35© 2015 SAP AE or an SAP affiliate company. All rights reserved. 35

© 2013 SAP AG or an SAP affiliate company. All rights reserved. 36

One rolling plan for the entire groupPlan autonomy for the businessesDemand signals and smart forecastsUpdate of the group plan on the fly

DynamicPlanning

Rapidly changing customer demandHigh volatility of market pricesDisruptive external shocksNew untested business models

VolatileWorld



A Single Solution for Integrated Business Planning

Corporate Financial

Plan

de-central satellites

De-central operational

plans

De-central operational

plans

Sub-plans

Sub-plans

LoBForecast

(e.g. Sales)2

1

3

4

• Central plan governance and process orchestration for group controller

• Full planning flexibility and autonomy for owners of departmental plans

• Access to master data and actuals from ERP for rapid modeling and planning

• Availability of plan data in ERP for variance analysis

• Single planning solution for agility and high usability

https://bwp.wdf.sap.corp/sap/bpc/web

https://bwp.wdf.sap.corp/sap/bpc/web

Migration to SAP Accounting powered by SAP HANA

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 41

Migration to SAP Accounting powered by SAP HANA

Migration to the G/L in SAP Accounting is fast and easy.y Duration and effort for the migration is small. It can be executed at any period end.y It is supported by a migration guide and monitor. There is no required SAP migration service.y Changes to coding blocks, external interfaces, security, reporting etc. are optional

The New G/L is NOT a pre-requisite for an implementation of the G/L in SAP Accountingy Both, customers with the classic G/L or the new G/L can implement SAP Accounting.

The G/L in SAP Accounting is more powerful than the New G/L in SAP ERPy It provides all the capabilities of the new G/L. It is further optimized for SAP HANA – e.g. no totals tables, universal journal.

Additional Notes for Customers with the classic G/Ly As part of the migration, classic G/L data is automatically transferred to the new data structures. y Existing PCA (profit center) and SL (special ledger) functions and features can remain in place.y Subsequent optimization (like adoption of parallel ledger or document split) is a recommended later option. y SAP plans to add respective optimization functionality in 2H 2015 (subject to change).y Customers running a migration project to new G/L in SAP ERP with a planned go live in Jan 2016 should continue this project.

SAP Accounting – Details


SAP Accounting powered by SAP HANAInsight from a single source of truth – flexible and harmonized

y One source for financial and management accounting

y Real time reporting without replication to a data warehouse

y Line item based and extensibley Not limited by totals or pre-configuration

y Fast and flexible reportingy Self-service analytics

* planned

y Intuitive user experiencey Availability on multiple devices

y Continuous intra-month processesy Soft close – better insight at any timey Hard close – accelerated month-end

closing tasksy Simulations *

SAP Accounting powered by SAP HANASingle Source of Truth & Highest Granularity










Both transactions, operational reporting and planning are available in the same system. Data is stored at the lowest level of detail and being aggregated on the fly

INCLUDED IN THE SAME IN-MEMORY BASED SYSTEM

Customspecific

Universal Journal

PublicSector

Joint Venture

ProfitabilityAnalysis

FixedAssets

MaterialLedger

AccountsReceivable

Mgmt.Accounting

AccountsPayable

General Ledger


Planned Content ¾ Concept: “Take the best of all

worlds” (e.g. ledger, market segment, coding block, etc.)

¾ ONE line item table with full detail for all applications - for instant insight & extensibility

¾ This replaces the “logical document” of release 1.0.

¾ Secondary cost elements are G/L accounts.

¾ Data stored only once: no reconciliation needed by design

¾ Reduction of memory footprint through elimination of redundancy.

¾ Fast multi-dimensional reporting possible without replicating data to business warehouse (BW).

¾ If BW is in place anyway, only one single BI extractor needed (instead of many today).

Universal JournalContent


Enhancements of Profitability Analysis

SAP Accounting focuses on the integration of account-based CO-PA

Account-Based CO-PAy Several enhancements delivered making it more powerful. It is planned to continue into this direction. y Split of cost-of-goods-sold posting on multiple accounts (by cost component)y Split of production variance posting on multiple accounts (differentiation of price / quantity effects)y Three new quantity fields in CO line items + BAdI for conversion of logistic quantities to common quantities

(e.g. products sold in different box sizes – but KPI in Finance is calculated on tons/KG of products)

Costing-Based CO-PAy Product continues to exist and be supported, but no enhancements with SAP Accounting.y Customers can run account-based and costing-based CO-PA in parallel.y Customers should assess their valuation in FI versus valuation in costing-based CO-PA

– If different, continue using costing-based CO-PA– If the same, customer may consider switching to account-based CO-PA.


Significantly Reduced Reconciliation Effort

y Obsolete – FI versus CO and sub-ledgers – due to universal journaly Obsolete – FI versus CO-PA * – due to universal journaly Obsolete – Reconciliation of multiple ledgers ** – due to universal journaly Obsolete – Reconciliation Ledger ** – due to universal journaly Obsolete – Reconciliation of ERP and data warehouse – due to real-time analytics on SAP Accounting y Obsolete – Reconciliation of totals vs. line items – because totals are droppedÎ Faster financial close and lower costs

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


Universal JournalUniform Extensibility with Customer Fields

Capabilitiesy The Universal Journal can be extended with customer fields.y Simplified extensibility by enhancing just this ONE line item table.y No technical limitation on the number of dimensions (though performance to be

considered)y P&L line extension using “CO-PA capabilities”, i.e. field definition incl. rich

derivation tools.y “Coding Block” extensibility like in SAP ERP.y The SAP HANA based reporting can use both kinds of customer fields.

Universal Journal

… Standard Field x

Standard Field x+1 zzcust01 zzcust02 … wwprof01 wwprof02 …

“Coding Block” extensibility

“CO-PA” extensibility


Non-Disruptive Approach – Tables are „Virtualized“

Read access from custom ABAP programs or reports to prior tables will work as before

Read access is automatically re-directed to the universal journal as the new single source of truth.

Advantage of the new architecture: no more reconciliation and reduction of memory footprint.

GLT0FAGLFLEXT

COEP…

RedirectCompatibility

ViewsUniversal Journal

ReadSelectCustom program

or report


Significantly Reduced Memory Consumption

HANA data base compression

No more persistent indices and aggregates/totals

No more redundant repositories

No replication to data warehouse system for operational reporting

Î Lower TCO and higher through-put

Significant smaller data footprint observed based on real customer dataUniversal

journal entries

SAP Accounting powered by SAP HANAReporting and Analysis & Intuitive User Experience


Harmonized Internal and External Reporting

SAP Accountingpowered by SAP HANA

FI

Financial Reporting Management Reporting

FI CO CO-PA Dimensions

Traditional Financial Reporting Scope

Unified Reporting including Profitability

ERP Financials

Comprehensive Reporting incl. CO and CO-PA detail with SAP Accounting powered by SAP HANA y Reporting is not limited by application boundariesy Run one report (e.g. P&L) and drill-down to any dimension available in the financial documents

+ +

CO CO-PAOr

Or


Financial Statement – Flexible Drill-down to Any Dimension


Flexible Journal Entry Analyzer


Reporting and Analysis Flexibility with Analysis for Office *

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 added

and are available for segmentation

* SAP BusinessObjects Analysis Edition for Microsoft Office


Universal JournalMulti-Dimensional Reporting in the Balance Sheet

Balance Sheet Fixed Asset by Assets

Receivables by Customer

Payables by Vendor

Carry forward can be configured to keep detail for selected dimensions


SAP Smart Business Cockpits

“A new information experience for decision makers.“

y Financial Closey Receivables Managery Payables Managery Cash Managery Finance for Managers


SAP Smart Business Executive Edition *

Innovations Key benefits

• ŸFramework for corporate decision management based on real-time information from SAP HANA

• Data modelers (IT) can define suitable data views / data sets, define KPIs, and visualization components

• Dashboard composers (business experts) can create dashboards,adjust components, define global filters

• Dashboard consumers (end users) can set personal filters and thresholds, arrange screens, analyze KPIs, collaborate to get insight (planned), finally trigger actions (planned)

• ŸFlexible cockpits for executives, managers and business experts putting business into the driver seat

• Common KPI repository throughout a company• Supports a corporate information design for intuitive and

consistent visualization• High performance analytics• Insight to action and collaboration • Leverages SAP HANA content for finance

* separate shipment program


Fiori Launchpad

Customer Benefits• Intuitive user experience• Personalizable dashboard• Launchpad for activities• Combines transactional and analytical work• Access to master data• Includes collaboration functionality • Works seamlessly across multiple devices• App to app navigation

SAP Accounting powered by SAP HANAAccelerated Financial Close


Accelerated Financial Close

Soft Close – Better Insight within the Periody Real-time profitability by earlier derivation (time of primary posting) of cost centers, internal orders, and customer projectsy Correct asset acquisition values at any time - no more periodic posting run requiredy Analysis of costs across multiple cost objects types y Asset depreciation re-calculated by asset for B/S and P/L

Hard Close – Elimination of Closing Tasksy Elimination of period-end closing tasks for deriving segment information

– No cost center allocations to profitabilityy Elimination of multiple reconciliation tasks due to the universal journal

– No more reconciliation effort with G/L and within asset accounting itself

Hard Close – Acceleration of Closing Tasksy Significant speed-up of asset depreciation run – the depreciation amounts are re-calculated with every master data change or asset

transaction, and no longer at period-end as part of the depreciation run


Acceleration of Period-End ProcessesCode Push-Down to SAP HANA

Functionality Old transaction New transaction

Settlement (plant selection) CO88 CO88H

Settlement (make-to-order sales orders) VA88 VA88H

Settlement (internal orders) KO8G KO8GH

Settlement (projects) CJ8G CJ8GH

Results Analysis (POC method or revenue-based) KKAK KKAKH

WIP Calculation at Actual Costs KKAO KKAOH

Variance Calculation with Full Settlement KKS1 KKS1H

Variance Calculation for Cost Centers KSS1 KSS1H

Demonstration HANA Live and Analysis for Office

Thank YouContact details:

Lars Fleminggard Solution Advisor [email protected]+46 70 356 62 17

mailto:[email protected]

© 2013 SAP AG or an SAP affiliate company. All rights reserved. 79

© 2015 SAP AE or an SAP affiliate company. All rights reserved.

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Lars Fleminggard May, 2015 - sap-sdk.dk future of... · integration for ERP and BPC. ......

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