Sap s4 hana 1709 what's new in central finance

PUBLIC

Christoph Ernst, Michel Haesendonckx, SAP

October, 2017

SAP S/4HANA 1709What‘s new in Central Finance?

2PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ

The information in this presentation is confidential and proprietary to SAP and may not be disclosed without the permission of SAP.

Except for your obligation to protect confidential information, 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 presentation or any related

document, or to develop or release any functionality mentioned therein.

This presentation, or any related document 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

presentation is not a commitment, promise or legal obligation to deliver any material, code or functionality. This presentation 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 presentation is for informational purposes and may not be incorporated into a contract. SAP

assumes no responsibility for errors or omissions in this presentation, except if such damages were caused by SAP’s intentional 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.

Disclaimer


Introduction▪ Information resources

▪ Deployment options/Cloud offerings

Central Finance▪ Fiori

▪ Central AP/AR management

▪ Enhanced VAT/TAX Configuration check

▪ CO-PA support

▪ Third party interfaces

Financial Planning & Analysis▪ Fiori

▪ Profitability Analysis

▪ Planning Content

▪ Material Ledger

▪ Semantic Tagging

▪ Flexible Hierarchies

▪ Value-added cloud services

Accounting and Financial Close▪ Fiori

▪ Subsequent introduction of document splitting

▪ SAP S/4HANA Financial Closing cockpit

▪ SAP S/4HANA for advanced compliance reporting

▪ Real time consolidation

Treasury Management▪ Fiori

▪ Innovations of Core Treasury


▪ SAP Cash Management innovations

Financial Operations ▪ Fiori

▪ Integration with Business networks


▪ SAP Shared Service Framework

Agenda


Fiori – Drill-Back to Source Document

Central Receivables/Payables Management


Open item management in Central Finance

Open items are replicated into Central Finance. To avoid duplication of effort to pay/clear, there are the following options:

Open item

Clearing

Open item

Tech

Cleared

Open item

Clearing

Open item

Clearing

Open item

Tech

Cleared

Open item

Clearing

Local Central Finance



Replicate open item and automatically/technically clear in

Central Finance

• Available as of 1503

• Continued open item management in source system

Replicate open item and clearing status in Central

Finance

• Available as of 1605

• Continued open item management in source system

• For restrictions and further information, please

see note 2292043

Replicate open item and automatically/technically clear in

local system

• Centralized open item management in Central

Finance system

• No Central Finance-specific technique for posting

back to the source systems (project solutions based

on existing scenarios)

Not suitable for central reporting or central processing (since

clearing status not correct)

Centralization of finance operations reporting and central

process orchestration

• A/R and A/P reporting (cross-system view of customer

or vendor account)

• Central dispute management, collections worklist and

credit evaluation scenarios

• Shared services and invoice management scenarios

Similar to existing ALE scenarios, these are customer-

specific scenarios where consistency in certain local

logistics processes must be determined in a case-by-

case analysis

*ALE, RFC, other

Other*

Other*

SLT

SLT

SLT

SLT

SAP S/4HANA 1709

Released with restrictions


Central process execution for AP / AR processes

Open items technically

cleared SAP HANA

Central Finance

Central Payments

Central Internal Payment

Central External Payment

Central Incoming Payment

ERP

Real status of open item (including payments and bank statements)

tracked in Central Finance system

Bank account management maintained in CF system (optional SAP MDG),

when using new SAP Cash Management

HANA optimization of payment proposal generation

All open item related processes must be executed in Central Finance

instance as well (example: dunning, collections, disputes, cash

application)

Credit, Collections, Disputes

Business Values

Reducing the number of external bank

accounts / fees

Limit credit charges in case of overdraft

Bundle external payments and save charges

on cross border payments

Centralize payment knowledge and optimize

process in shared service center

Use SAP Standard interface for uploading

bank statements to a central platform

Monitoring of bank communications and

transactions

BANKS

Open Item Open Item

Cash Application


Released with restrictions – what does that mean?

SAP releases Central Payments / Central Finance capabilities in SAP S/4HANA OP 1709 with the status “Released with

Restrictions”

• Functional Restrictions

• Tax-related restrictions (VAT and Withholding Tax)

when paying centrally, tax reporting (for VAT and Withholding Tax can only be done in the Central System)

not all reports (and country variants) are supported

We still use Note 2346233 to limit access / document restrictions and ensure customer accepts limitations

Customer can use the scenario productively after they have completely tested all relevant process variants and scenario


1610 Pilot Release Limitations for central payment

scenarios

1709 Improvements for central payment scenarios

Logistics processes in source system that depend on actual clearing

status of invoices in the source system may need to be modified:

with the technical clearing of the documents in the source system,

AP and AR reports in the source system do not indicate the actual

clearing status.

No changes planned in standard Central Finance product.

In implementation projects, ALE scenarios can be built to push

status back to source system (not recommended). Logistics

process can be modified to query Central Finance system.

Payment request (and down payment request) has to be created in

the Central Finance system in order to apply it to the central

payment.

Customer can extend replication to include these items in their

implementation project; standard solution is not included in 1709,

but remains a roadmap topic.

Central handling of SEPA Direct Debit is not automated because

mandates are not replicated and synchronized.

Mandate replication and synchronization supported. If mandate

created in local logistics process, it will be replicated to central

system; if mandate is created in central system, it could be

replicated back to local in ALE scenario.

Credit card sales for customers Credit Card sales will work if settlement run is triggered from the

local system

One-time-account postings (customer and vendor) One-time vendor / customer postings working

The legacy open items that you have in the source system before

switching to central payment have to be paid and cleared in the

source system.

No change planned

Limitations associated with the Central Payments scenarios

*Always consult SAP Note 2346233 for updated information regarding the functional limitations of centralizing payments.

Enhanced VAT/TAX Configuration Check

(SAP S/4HANA 1709 FPS0)


It is possible to activate an enhanced check

for tax related postings

Activation per combination of

Source System and Source Company Code

With Central Payments this check is

mandatory!

Prerequisite:

SLT real-time replication of source system

customizing (SAP Note 2494127)

Caution:

Central VAT and Withholding Tax reporting is not

possible for all cases -> see documentation!

not all reports (and country variants) are supported

Activate VAT Configuration Check for Company Codes

https://launchpad.support.sap.com/#/notes/2494127


Tax type does not match in source and target

Indicator "Not deductible" does not match in source and target

Activation status of plants abroad does not match in source and target

Indicator "Tax Base is Net Value" does not match in source and target

Indicator "EU Country" does not match in source and target

Reporting country does not match in source and target

…

All Error Messages are defined in Message Class FINS_CFIN_BC_V

Tax Customizing Consistency Check – Error Situations (Examples)


SAP HANA

Tax Customizing Consistency Check – SLT Replicated Content

HANA Enterprise Cloud

HANA Enterprise Cloud

Real-time replication with

SAP Landscape

Transformation

Replication Server

SAP MDG

Existing Master Data

Governance ToolSAP S/4HANA – Central Finance

Central Finance

Accounting Interface

Business

Mapping

Error

correction

handling

Universal Journal

Entry

SAP ERP

ERP

T000F

T001

T005

T007A

T007B

TTXD

FINS_CFIN_T000F

FINS_CFIN_T001

FINS_CFIN_T005

FINS_CFIN_T007A

FINS_CFIN_T007B

FINS_CFIN_TTXD

Table to TableT000F

T001

T005

T007A

T007B

TTXD

Tax Customizing Consistency Check

(after Mapping)

FI / CO

Document

FI/CO Postings

CO-PA Toolset


Today a replication from costing-based CO-PA in a SAP ERP source system (ECC or S/4) into

(account-based) “Profitability in SAP S/4HANA ” in the Central Finance is not supported out-of-the-

box.

A standard replication as part of the Central Finance set of enabling capabilities is a planned

roadmap item.

In the interim, with SAP S/4HANA 1709, we provide a tool-set for such replication as part of a

custom implementation project.

The tool-set includes:

• CO-PA mapping tool

• Enhanced replication

CO-PA Toolset


Characteristics Mapping

NAME_VALUE_TABLE

Fieldname Value

Source Central

CE4XXXX

Convert to name-value table

FI Doc

CO Doc

CE4

Rebuild CE4 structure

New PA segment

number

Customizing

Characteristics

Mapping

Universal Journal`

CO Doc

FI Doc

Characteristics

NAME_VALUE_TABLE

Fieldname Value

Document Replication

Semantically identical characteristics can

have different names in the different

systems


Third-Party System Connection to Central Finance

Solution Overview

SAP delivers:

▪ Staging Area

▪ Mass Data Transfer Tool (SLT)

▪ CFIN specific posting interface

Partner delivers:

▪ Connection to 3rd Party System

▪ Structure Mapping to CFIN Posting

Interface

Usage of transfer layer ensures:

▪ Clear separation of responsibilities

▪ Standard tools for monitoring (AIF)

Acctng.

Docmnt

*)

*)

Error

Handlng

Key/

Value

Mapping

Transac

Control

Data

Integrity

Structure

Mapping

Quality

Check

Data

Extracti

on

Non SAP ERP

Source

Transfer

Layer

Staging

SAP S/4HANA

CFIN

ACDOCA

Transfer

Programm

Inbound

Mapping 3rd

pty

itf

Customer / Partner SAP

AIF

Enrich /

Error

Correcti

on

Sap s4 hana 1709 what's new in central finance

Software

Transcript of Sap s4 hana 1709 what's new in central finance