Intro Session to S/4HANA FinancePurnima Prithvipathy & Ajeet Agarwal | RIG APJ External November 2016 Disclaimer 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. © 2016 SAP © 2016 SESEororan SAP anSAP affiliatecompany. SAP affiliate company. All rights All rights reserved. reserved. External 2 SAP S/4HANA Finance: foundation of the digital core Instant insight Intuitive user experience Flexible and nondisruptive Single source of truth insight for business users Easier to deploy and extend Real-time accounting Business Customer End-to-end Networks Experience Instant process financial automation analysis Digital Core SAP HANA Internet of Workforce SAP HANA Platform Things Real-time treasury Real-time and Engagement and Big and cash predictive Data Security management planning Financial planning Accounting and Treasury and Finance Enterprise risk and analysis financial close financial risk operations and compliance © 2016 SAP SE or an SAP affiliate company. All rights reserved. External 3 SAP S/4HANA Finance: Business Case elements for the business department Modern User interfaces Full transparency 10-50% Better Better productivity Business Partner Dynamic Compliance und Faster Improved Cash- Operational Planning and Risk Close management Excellence Simulation management 30% 2-5 10% 15% 20% shorter planning Decrease of Less FTE Less fraud cycles Days DSO faster close © 2016 SAP SE or an SAP affiliate company. All rights reserved. External 4 SAP S/4HANA Finance SAP Accounting Integrated Business SAP Cash Management powered by SAP HANA powered by SAP HANA Planning for Finance New product for New capabilities and enhanced Alternative in-memory Group Cash Management functionality for ERP customers integration for ERP and BPC Business Suite on HANA SAP HANA Platform Aligned Agile Predictive Single Source of Truth Real time processes Dynamic Planning and Analysis © 2016 SAP SE or an SAP affiliate company. All rights reserved. External 5 SAP ERP, SAP S/4HANA Finance, SAP S/4HANA: different products Finance Innovations Finance Innovations as an Add-on to packaged with classical Logistics innovations for Logistics FI/CO SAP S/4HANA 1511 1610 SAP S/4HANA 1503 1605 ECC 6.0, EhP 0-8 Finance SAP S/4HANA FINANCE SAP S/4HANA SAP ERP SAP ERP Enterprise Management © 2016 SAP SE or an SAP affiliate company. All rights reserved. External 6 SAP S/4HANA Finance, SAP S/4HANA: minor structural differences in Finance process setup e.g.: mandatory implementation of Ÿ SAP Business Partner instead of Customer/Vendor Ÿ SAP Creditmanagement intead of Customer Credit Control (no separate license) Ÿ Material Ledger for Material valuation Ÿ Material number with 40 digits Automatically, technically converted SAP S/4HANA 1511 1610 SAP S/4HANA 1503 1605 Finance SAP S/4HANA FINANCE SAP S/4HANA SAP ERP Enterprise Management © 2016 SAP SE or an SAP affiliate company. All rights reserved. External 7 The way to SAP S/4HANA: via SAP S/4HANA Finance or directly SAP S/4HANA FINANCE SAP S/4HANA SAP ERP SAP ERP Enterprise Management © 2016 SAP SE or an SAP affiliate company. All rights reserved. External 8 Accounting and Financial Close New Innovation for S/4HANA Finance Add-On > 20 3 <1 Laggards Best-in-class Target Universal Journal Accelerated Financial Close Central Finance Ÿ Ultimate single source of truth for Ÿ Improved soft close and hard close Ÿ Real-time replication of secondary CO instant insight and easy customer Ÿ Real-time profitability by earlier postings from several source systems extensions derivation of market segment into a central system Ÿ ONE line item table with full detail for all Ÿ Correct asset acquisition values at any Ÿ Document drill back to the original FI applications time - now also for valuation areas with document in the source system Ÿ This replaces the “logical document” of “special items” Ÿ Replication of cost objects (production release 1.0. Ÿ Elimination of multiple reconciliation orders, product cost collectors, and Ÿ Secondary cost elements are now G/L tasks due to the universal journal internal orders) accounts. Ÿ Significant speed-up of asset Ÿ Mapping functionality for harmonization Ÿ Data stored only once: no reconciliation depreciation run of master data (optionally via MDG needed by design solution) Ÿ Reduction of memory footprint through Ÿ Centralized error handling with the error elimination of redundancy. correction and suspense tool © 2016 SAP SE or an SAP affiliate company. All rights reserved. External 9 Challenges of the Current Architecture Multiple Sources of Truth Challenges Ø The combined content of several tables represents “the truth” in SAP ERP. Reconciliation efforts are required by design. Ø Need “to move” data to the appropriate table for reporting (e.g. “settlement”) Ø Different level of detail stored in the respective components/tables Ø Components are structured differently (e.g. fields/entities differ) Ø Different capabilities in the components (customer fields, currencies, multi-GAAP etc.) Ø Performance often required the usage of a data warehouse introducing another redundant repository. Ø Multiple BW extractors needed to cover the complete Reconciliation truth in data warehouse. Business Warehouse © 2016 SAP SE or an SAP affiliate company. All rights reserved. External 10 List of Tables Replaced by Compatibility Views © 2016 SAP SE or an SAP affiliate company. All rights reserved. External 11 Universal Journal Single Source of Truth New Architecture ØConcept: “Take the best of all worlds” (e.g. ledger, market segment, coding block, etc.) ØOne line item table with full detail for all applications - for instant insight & easy extensibility ØThis replaces the “logical document” of SAP Accounting 1.0. ØData stored only once: no more reconciliation needed - by design ØReduction of memory footprint through elimination of redundancy. ØFast multi-dimensional reporting possible without replicating data to business warehouse (BW). A universal journal entry can have (technically) up to 999,999 line items à ØIf BW is in place anyway, only one single extractor needed. less or no need for summarization (depending on data volume) ØSecondary cost elements are now G/L accounts. © 2016 SAP SE or an SAP affiliate company. All rights reserved. External 12 SAP S/4HANA: Universal Journal All Value flows in one single source SAP S/4HANA 1511 1610 Ÿ Multi-dimensional GL SAP S/4HANA Finance 1503 1605 SAP S/4HANA 1511 1610 Ÿ Parallel Ledger SAP S/4HANA Finance 1503 1605 SAP S/4HANA 1511 1610 Ÿ Custom defined fields SAP S/4HANA Finance 1503 1605 SAP S/4HANA 1511 1610 Ÿ Extension Ledger SAP S/4HANA Finance 1503 1605 SAP S/4HANA 1511 1610 Ÿ 999.999 line items SAP S/4HANA Finance 1503 1605 SAP S/4HANA 1511 1610 Ÿ Unified, extensible currencies SAP S/4HANA Finance 1503 1605 SAP S/4HANA 1511 1610 Ÿ Consistent parallel valuation (Transfer Prices) SAP S/4HANA Finance 1503 1605 SAP S/4HANA 1511 1610 Ÿ Soft Close and Prediction SAP S/4HANA Finance 1503 1605 © 2016 SAP SE or an SAP affiliate company. All rights reserved. External 13 SAP S/4HANA: Universal Journal Classic GL in SAP Migrate to New GL Universal Journal ERP Parallel Ledgers Document Split Parallel Ledgers Document Split Classic GL in SAP Subsequent Universal Journal ERP Introduction Parallel Ledgers* Document Split** SAP S/4HANA 1511 1610 * SAP S/4HANA Finance 1503 1605 planned for SP5 ** planned for 1709 © 2016 SAP SE or an SAP affiliate company. All rights reserved. Document Split = Online Document Split External 14 SAP S/4HANA 1511 1610 SAP S/4HANA Finance 1503 1605 LoB Finance Subsequent Implementation of Non-leading Ledger for add. accounting principles • Guided Implementation of new accounting principles via further ledgers and depreciation areas • Flexible data transfer from a source ledger into new ledgers including opening balances, open items and documents of current fiscal year • Correct and consistent accounting data ensured with every data transfer step • Automatically enhance asset master data towards new valuation • Easy handling using Migration Cockpit This is the current state of planning and may be changed by SAP at any time. © 2016 SAP SE or an SAP affiliate company. All rights reserved. External 15 SAP S/4HANA 1511 1610 SAP S/4HANA Finance 1503 1605 Multi-Currency in the Universal Journal Up to 10 Parallel Currencies per Ledger SAP ERP FI (BSEG) local Crcy 2nd local Crcy 3rd local Crcy Ÿ 3 local currencies in FI (including NewGL) CO (COEP) local (Obj) Crcy CO Area Crcy Ÿ 2 currencies in CO Ÿ 3 currencies in Material Ledger ML local Crcy 2nd ML Crcy 3rd ML Crcy Universal Journal Local Global 1st free 2nd free 3rd free 4th free 5th free 6th free 7th free 8th free (ACDOCA) Crcy Crcy Crcy Crcy Crcy Crcy Crcy Crcy Crcy Crcy SAP S/4HANA Finance ledger-dependent Ÿ Local currency: ACDOCA field name = HSL, currency type 10 Ÿ Global currency: ACDOCA field name = KSL, currency type of controlling area Ÿ Freely Defined Currencies 1 – 8 – You can configure any currency type. – There is no dependency on the currency types of the leading ledger. – ACDOCA fieldnames OSL, VSL, BSL, CSL, DSL, ESL, FSL, GSL Ÿ If you activate parallel valuations with transfer prices, then additional rules / constraints apply. © 2016 SAP SE or an SAP affiliate company. All rights reserved. External 16 Unified Master Data Maintenance for GL Account and Cost Element – Account Type © 2016 SAP SE or an SAP affiliate company. All rights reserved. External 17 Convergence of G/L Accounts and Cost Elements Master Data Ÿ All cost elements are now G/L accounts. Ÿ Differentiation by attribute “account type” in the G/L account master. Ÿ Secondary cost elements are blocked against manual postings. Ÿ Maintenance of cost elements is done via G/L account maintenance. Ÿ The old cost element table is updated in the background. Hierarchies Ÿ Secondary cost elements need to be added to the account hierarchy (FS stmt. version) Ÿ Management accounting continues to work with cost element groups, currently. Ÿ As a consequence, hierarchies need to be also maintained in CO for the moment. Multiple account assignments Ÿ These are possible (e.g. cost element by internal order and cost center). Ÿ There is one primary account assignment per cost element which is relevant for subsequent processes. © 2016 SAP SE or an SAP affiliate company. All rights reserved. External 18 Extension Ledger – Use Cases § An extension ledger stores delta values and points to another ledger – thus providing a flexible mechanism for adjustments and reporting. Universal Journal § An important use case is for management views on top of legal data. § Besides creating a master record, extension ledgers need no Extension Ledger A Extension Ledger B “Post into closed periods “Distribute revenues additional configuration. for restatement purposes” differently on org units than in legal view” § Reporting on the extension ledger always includes the data of the base ledger (in the figure: IFRS ledger). Extension Ledger C “Adjustments for § Multiple extension ledgers can point to the same base ledger. consolidation purposes” § Benefit of reduced data footprint and zero reconciliation effort as only delta values are kept. § Extension ledgers are stored in the universal journal – same as “normal” ledgers. Ledger IFRS nThe concept was introduced wit sFin 1.0 as appendix ledgers. Currently only manual postings to extension ledgers are supported. Further enhancements Ledger Local GAAP are expected © 2016 SAP SE or an SAP affiliate company. All rights reserved. External 19 Ledgers in SAP Accounting Basic Principles – Changes n One Ledger (0L) assigned to all Company Codes delivered as Leading Ledger n Contains full set of line items in ACDOCA. n Basis for Actual CO data n Create management view on top of a legal ledger, especially caused by the posting period restrictions related to FI and CO union n extension ledger contains only adjustment postings. In reporting extension ledger inherits postings of base ledger. n Additional Non Leading Standard Ledgers can be assigned to selected Company Codes, contain full set of line items in ACDOCA,inherits currency configuration of Leading Ledger © 2016 SAP SE or an SAP affiliate company. All rights reserved. External 20 Significantly Reduced Reconciliation Effort What Why § Obsolete – Reconciliation of § because redundancy has been multiple ledgers ** eliminated § Obsolete – Reconciliation § due to real-time integration from Ledger ** CO to FI § Obsolete – Reconciliation of § because totals are dropped totals vs. line items § due to real-time analytics on § Obsolete – Reconciliation of OLTP OLTP and OLAP § due to 1:1 link on line item level § Drastically simplified – FI versus § due to link to CO-PA CO characteristics table § Drastically simplified – FI versus CO-PA * * for account-based CO-PA and primary cost elements è Faster financial close and lower costs ** already available with New GL in SAP ERP © 2016 SAP SE or an SAP affiliate company. All rights reserved. External 21 SAP Accounting powered by SAP HANA Fixed Asset Accounting integrated in Universal Journal Entry Fixed Asset Accounting based on Universal Journal. n No redundancy in data storage Local GAAP US GAAP n Reconciliation between G/L and AA is ensured by design IFRS xxx xxx xxx o No reconciliation-step in financial close needed anymore. o All non-statistical items are updated as Universal Journal Entries. n Even after migration, reporting for previous fiscal years is possible due to compatibility views. n Transparent assignment of depreciation area to accounting principle n Depreciation posted with all details: Accumulated depreciation and depreciation cost by asset © 2016 SAP SE or an SAP affiliate company. All rights reserved. External 22 New architecture in FI-AA - Overview From Operational Entry to multiple accounting-principle-specific Parallel Documents (Integrated Asset Acquisition) Rules: § Operational Entry Document posts to technical clearing account. § Operational Entry Document never updates the asset, asset is used for checks only § The entry document triggers the creation of (1 to n) accounting principle specific documents. § The accounting principle specific documents § clear the technical clearing account in each view (balance zero) § post to the asset reconciliation account and update the asset subledger © 2016 SAP SE or an SAP affiliate company. All rights reserved. External 23 Integrated Acquisition with ledger approach to parallel valuation (different amounts to be capitalized due to accounting principle) (1) Document Entry: Financial Accountant 31 K Vendor 160000 (Payable) 10.200 70 A Asset FIAA-1000-0 PRCTR1 KOSTL1 LGAAP Freight costs are not capitalized in the local GAAP (New Transaction: Post only to 40 S GL 4xxxxxx (freight expense) 200 accounting principle LGAAP) 75 A Asset 13000 (Machines) PRCTR1 KOSTL1 Generated documents: © 2016 SAP SE or an SAP affiliate company. All rights reserved. External 24 Fiori Applications – Asset Master List Asset Master List Cockpit § Define a list of fixed Asset you are responsible for and save as a tile to your launch pad § Monitor all incomplete, in process, capitalised or retired assets as needed § Display the number of incomplete Assets already in the launch pad § Download selected lists or items, share them via e-mail list or e-mail link © 2016 SAP SE or an SAP affiliate company. All rights reserved. External 26 Key innovations BEL DOC G/L Amount ACCASTY OBJ.NR. WBS- Sales PAOBJNR Customer Product Prod. Customer NR LN Account (Cost Element Order (Profitability (MATNR_PA) group specific Collector Segment) field Type) 1 1 Expenses 4000 € WBS PR1 WBS1 1 E1 customer1 P-100 PG1 21 element General ledger part CO with definition of real Profitability characteristics - a fixed set is provided by SAP and account assignment can be enhanced with customer specific fields Reporting The Universal Journal allows you to explore organizational, customer, or product profitability in the same report used for financial reporting, based on any available dimension that has been posted to. In financial reports such as the income statement, it is possible to analyze revenue as well as costs by different profitability characteristics. In addition, manufacturing enterprises can review multilevel cross-margin analyses in their income statement. Account-based profitability analysis Account-based CO-PA lays the foundation for Profitability Analysis in the Universal Journal. We have reused the profitability master data definition: the operating concern and the definition of the characteristics, the posting logic on the profitability segment, and the powerful derivation tool. These functionalities remain unchanged so that customers can keep their logic as before. 27 June 2016 - S/4HANA Finance Pre-Study: © 2016 SAP SE or an SAP affiliate company. All rights reserved. External 27 Enhancements of Profitability Analysis Account-Based CO-PA Ÿ Split of cost-of-goods-sold posting on multiple accounts (by cost component) Ÿ Split of production variance posting on multiple accounts (differentiation of price / quantity effects) Ÿ 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) Ÿ It is planned to further enhance account-based CO-PA. Costing-Based CO-PA Ÿ Product continues to exist and be supported, but no enhancements with SAP Accounting. Ÿ Customers can run account-based and costing-based CO-PA in parallel. Ÿ 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. © 2016 SAP SE or an SAP affiliate company. All rights reserved. External 28 Account-based vs Costing-based CO-PA Account-based Costing-based Report line Account Value Report line Value field • Account-based CO-PA and Revenue VV001 € 1.250.850 Costing-based CO-PA share Revenue 800000 € 1.250.850 Pomotion rebate VV020 € 58.668 the definition of Rebates 880000 € 175.258 Customer rebate VV021 € 36.558 characteristics (e.g. Material rebate VV022 € 80.032 customer group, product Net revenue € 1.075.592 Provision (calculatory) VV030 € 52.326 group, region etc.) 450001 Material € 524.023 Material 450000 450002 Activities. var. € 127.668 € 675.269 Net revenue € 1.023.266 • Account-based only uses consumption 450003 Activities. Fix € 23.578 Purchased Raw materials VV100 € 524.023 values per account as it is 451000 € 88.964 Goods Production activities VV110 € 127.668 posted into P&L (variable) Gross profit € 311.359 Production activities (fix) VV111 € 23.578 • Costing-based collects, % of net revenue 28,95% Purchased goods VV112 € 88.964 derives and calculates Gross profit € 259.033 values per value field Overhead 650000 € 124.687 Costs % of net revenue 25,31% • Costing-base uses also Net profit € 186.672 Sales cost VV201 € 42.487 events and sources that R&D cost VV202 € 59.674 doesn‘t post into P&L Finance & admin cost VV203 € 22.526 Profitability Account-based analysis in SAPanalysis profitability ERP (EHP7) with SAP S/4HANA Net profit € 134.346 Finance © 2016 SAP SE or an SAP affiliate company. All rights reserved. External 29 Account-Based CO-PA – A Reminder (2) Account-based CO-PA involves extending the primary cost element for revenue and sales deductions by the relevant profitability segment. Any allocation will also update the relevant profitability segments. It is up to you how deep you go – either remaining e.g. at distribution channel or division or going down to the product or customer. © 2016 SAP SE or an SAP affiliate company. All rights reserved. External 30 Where Customers still need Costing-based CO-PA Costing-based Use Cases that still call for the use of costing based profitability analysis: Report line Value field Ÿ Adding estimated costs to specific sales transactions, e.g. freight, commissions Revenue VV001 € 1.250.850 (which are not yet posted in GL) Pomotion rebate VV020 € 58.668 Customer rebate VV021 € 36.558 Ÿ Assigning multiple cost estimates (e.g. a group view or sales view) Material rebate VV022 € 80.032 Ÿ Statistical conditions shall be taken into account Provision (calculatory) VV030 € 52.326 Ÿ Having defined own record types (record types in account based are only B, F, C, Net revenue € 1.023.266 D) Raw materials VV100 € 524.023 Ÿ Fields are contained which are normally foreign to accounting (parallel quantity Production activities VV110 € 127.668 recording only per BADI) (variable) Ÿ Building a parallel valuation in CO-PA Production activities (fix) VV111 € 23.578 Purchased goods VV112 € 88.964 Gross profit € 259.033 % of net revenue 25,31% Sales cost VV201 € 42.487 R&D cost VV202 € 59.674 Finance & admin cost VV203 € 22.526 Net profit € 134.346 © 2016 SAP SE or an SAP affiliate company. All rights reserved. External 31 New Material Valuation in Detail Material Ledger (ML) is the standard tool used for material valuation in S/4HANA § ML enables the support of parallel valuations (multiple currencies) § ML is base for optional available improved valuation methods (actual costing) § Following material valuation methods are supported: standard price, moving average price, actual price based on actual costing The new material valuation ensures improved throughput scalability § for standard price valuation shared SAP enqueue locks are used instead of exclusive ones à enables the application to process goods movements in parallel Redundancies in data model for inventory valuation are eliminated § material inventory values are only stored in Material Ledger tables à classic business suite stores inventory values in local currency twice: in ML and material master tables § valuated material postings (FIN postings) are only stored in the unified journal entry (ACDOCA) § compatibility views ensure that read access still works (for the classical tables of ML and material master) © 2016 SAP SE or an SAP affiliate company. All rights reserved. External 32 Material Ledger in S/4HANA Details Material Ledger (ML) in classic ERP § Option 1: parallel currencies § Option 2: actual costing Material Ledger (ML) in S/4HANA § parallel currencies will always be active (Option 1) à the material master can show up to 3 parallel material prices and the according inventory values § the material ledger tables are used to store material prices and inventory values § actual costing can be activated if actual material costs shall be calculated (Option 2) © 2016 SAP SE or an SAP affiliate company. All rights reserved. External 33 Material Valuation Methods S/4HANA Supports All Valuation Methods Standard Price (S-Price) • With S/4HANA standard price valuation for materials will work as before • The throughput for standard price materials will be improved as there will be no application locks any longer (parallel updates are supported) Moving Average Price (V-Price) • With S/4HANA there will be no changes for the calculation of the moving average price • For materials with price control “moving average” application locks are still required to ensure continuous consistency of inventory valuation, therefore there will be no throughput improvements for moving average materials Actual Costing, Periodic Unit Price (PU-Price) • To enable inventory valuation at actual costs and improved throughputs, customers can use Actual Costing (based on Material Ledger) instead of using a moving average price © 2016 SAP SE or an SAP affiliate company. All rights reserved. External 34 Material Ledger Manages Material Valuation Inventory valuation is done in the material ledger application, and no longer in materials management - Principle of One • Valuation data storage in ML tables instead of material master accounting view • Historic data (in MBEW, MBEWH etc.) are read via compatibility views. • Multi-currency • Main valuation methods: Standard price and Moving Average price. Will be preserved and moved to ML storage by migration program. • The statistical moving average price for standard-price materials will no longer be calculated • Material Ledger periodic unit price with multi-level price determination as additional offering. To be activated separately • Valuation methods per different accounting principles like GAAP achieved by Alternative Valuation Run © 2016 SAP SE or an SAP affiliate company. All rights reserved. External 35 Material Inventory Reports (S4/HANA) Balance Summary, Line Items The new material valuation provides improved reporting capabilities § Reporting is no longer based on material ledger tables which only know material relevant data and cannot provide insights into financial dimensions (e.g. no information like profit center, functional area) § The new reporting based on the unified journal entry combines material and financial data (see below) © 2016 SAP SE or an SAP affiliate company. All rights reserved. External 36 Types of Material Ledger Multiple Valuations – Price Determination 2 Prices and values shown in material master are selected from universal journal (ACDOCA) Multilevel Actual Costing – Price Determinaton 3 No change – Costing run needed to update inventory values at period close © 2016 SAP SE or an SAP affiliate company. All rights reserved. External 37 Material Price Analysis Material Price Analysis (CKM3) is widely used to analyze all factors contributing to the cost of a material. Material Price Analysis initially displays data from aggregated data sets (MLCD) and then drills down to the document level (MLIT, MLPP) You can switch between valuations and currencies and navigate between periods in this view. In S/4HANA Data are read from the universal journal. © 2016 SAP SE or an SAP affiliate company. All rights reserved. External 38 SAP S/4HANA 1511 1610 SAP S/4HANA Finance 1503 1605 LoB Finance Parallel Valuation: Transfer Pricing: Legal, Group and Profit-Center Valuation Multi-national groups need to report profitability for the group in total and for the individual units based on the operational flows. Up to three parallel valuation methods for legal, group and profit center valuation provide different perspectives on the value chain within a group. Ÿ Legal perspective looks at the transactions from the point of view of the affiliated companies including markups Ÿ Group valuation looks at the whole group eliminating markups (i.e. intercompany profits) Ÿ Profit center valuation treats profit centers as if they were independent companies, using negotiated prices SAP ERP provided those 3 perspectives, but the solution had significant short-comings Ÿ Heterogeneous approaches across applications, high complexity, difficult to understand Ÿ No clear separation of management valuations, insufficient currency flexibility SAP S/4HANA Finance, OP 1605 now delivers these capabilities, but with a much more streamlined, consistent approach in the universal journal. In earlier releases of SAP S/4HANA and SAP S/4HANA Finance only legal valuation was supported. This is the current state of planning and may be changed by SAP at any time. © 2016 SAP SE or an SAP affiliate company. All rights reserved. External 39 End-to-End Treasury and Risk Management Treasury Solution Map Payments and Bank Payment Workflow and Monitoring and Status Bank and SWIFT Payment Factory Communications Operations Signatures Tracking Connectivity Cash and Liquidity Management Electronic Bank Statements Cash Position Liquidity Management Bank Account Management* Front Office Mid Office Back Office Debt and Investment Management Accounting Deal capture Risk Controlling Correspondence & Settlement Risk Identification Risk Quantification Risk Management Financial Risk Management Risk Analysis Type and Origin of Risk Exposure Mgmt Hedge with Financial Instruments Working Capital Governance Risk and Suite Capabilities Shared Service Center Commodity Risk Management Management Compliance Rapid Deployment Foundation Cloud HANA Platform Analytics Mobile Solutions (RDS) SAP Cash Management powered by SAP HANA © 2016 SAP SE or an SAP affiliate company. All rights reserved. External 40 SAP S/4HANA 1511 1610 SAP S/4HANA Finance 1503 1605 SAP Cash Management Enhanced Functionality Cash Position Details § Multiple day view in one page § More dimensions (planning level, G/L account, summarization term, planning group) § Allow end user to personalize the layout for analysis § Simplify the backend for better performance Bank Account Management § Improved usability for countries only using IBAN § Configuration to split mass change signatory request per country/per account type § Easier configuration of field status group Liquidity Management § Pre-configured app “Liquidity Forecast Detail” One Exposure § Integration to MM and SD © 2016 SAP SE or an SAP affiliate company. All rights reserved. External 41 SAP S/4HANA 1511 1610 SAP S/4HANA Finance 1503 1605 SAP S/4HANA: Planning SAP Business Objects Planning and Consolidation for S/4HANA Planning, Budgeting, Forecasting entirely integrated, while remaining flexible: Ÿ Direct access to all data (actuals, master ACDOCP data) Ÿ Flexible planning Level, Periods, preliminary master data, Workflow, comments, Excel-Frontend ACDOCA Ÿ Simulation, Scenarios “Planning is coming home” © 2016 SAP SE or an SAP affiliate company. All rights reserved. External 42 SAP S/4HANA 1511 1610 SAP S/4HANA Finance 1503 1605 SAP S/4HANA: Consolidation SAP Business Objects Planning and Consolidation for S/4HANA Legal and statutory Consolidation: Ÿ Direct access to all data (actuals and master data) Ÿ Real-time Consolidation: facilitate process steps ACDOCC (data acquisition, validation, intercompany) Ÿ Simulation, Scenarios ACDOCA = heading for „Continuous Accounting“ from entity to group close © 2016 SAP SE or an SAP affiliate company. All rights reserved. External 43 © 2016 SAP SE or an SAP affiliate company. All rights reserved. External 44 Roadmap and Information Roadmap Adoption SAP Market Introduction HCP Apps for Finance Transition paths Central Finance Conversion Simplification List Roadmap and links www.sap.com/roadmaps à Line of Business à Finance à Solutions/Products à Cross topics à SAP Fiori http://help.sap.com à Financial Management à SAP S/4HANA Finance http://help.sap.com à Enterprise Management à SAP S/4HANA (z.B. Simplification List, Compatibility Packs) © 2016 SAP SE or an SAP affiliate company. All rights reserved. External 46 Strong customer adoption of SAP S/4HANA (Finance) (as of October 24th., 2016) 1.433 Active customer projects 309 Live customers 25 industries All regions New implementations and conversions © 2016 SAP SE or an SAP affiliate company. All rights reserved. External 47 Thank you Purnima Prithvipathy & Ajeet Agarwal Regional Implementation Group | APJ E:
[email protected] /
[email protected] © 2015 SAP SE or an SAP affiliate company. All rights reserved. © 2016 SAP SE or an SAP affiliate company. All rights reserved. No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP SE or an SAP affiliate company. SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE (or an SAP affiliate company) in Germany and other countries. Please see http://global12.sap.com/corporate-en/legal/copyright/index.epx for additional trademark information and notices. Some software products marketed by SAP SE and its distributors contain proprietary software components of other software vendors. National product specifications may vary. These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or warranty of any kind, and SAP SE or its affiliated companies shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP SE or SAP affiliate company products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty. In particular, SAP SE or its affiliated companies have 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 SE’s or its affiliated companies’ strategy and possible future developments, products, and/or platform directions and functionality are all subject to change and may be changed by SAP SE or its affiliated companies 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. 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. © 2016 SAP SE or an SAP affiliate company. All rights reserved. External 49