lars fleminggard may, 2015 - sap-sdk.dk future of... · integration for erp and bpc. ......
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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
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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.
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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
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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
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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
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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
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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 – 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
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
Central Journal
SAP SIMPLE FINANCE PROCESSES
• 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
Interfaces stay the same
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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.
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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 *
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Aligned – Single Source of Truth
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
Customspecific
Universal Journal
PublicSector
Joint Venture
ProfitabilityAnalysis
FixedAssets
MaterialLedger
AccountsReceivable
Mgmt.Accounting
AccountsPayable
General Ledger
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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
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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.
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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
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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
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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
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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
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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
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Financial Statement – Flexible Drill-down to Any Dimension
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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
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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
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SAP Smart Business Cockpits
“A new information experience for decision makers.“
y Financial Closey Receivables Managery Payables Managery Cash Managery Finance for Managers
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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
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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
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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
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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
Thank YouContact details:
Lars Fleminggard Solution Advisor [email protected]+46 70 356 62 17
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