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SAP Master Data Governance For Financial Data - Overview
SAP Master Data Governance For Financial Data - Overview
Nov. 2015
Agenda
Summary
Now that master data is consistent
54.2% best throughout, creating a new cost center
6 worst takes less than 30 minutes instead of
several days.
90% average
Jian Ming Se,
Global IT Associate Director
Colgate-Palmolive
on the benefits of SAP MDG
96% best
81% worst
2.8 average 18.6% average
11.8% worst
1.2 best
Hours per week employees Decrease in
spend searching for business process
information cycle time
Aberdeen Group SAP Value Engineering
Summary
Centrally
Govern
Distribute Business
MDG-F
Applications
Create/
maintain
Consistent
Collaborative maintenance
financial master
data across the
entire organization Traceability of changes for
compliance requirements
Controlling
Accounting
Consolidations
Internal Audit
Excellence in financial
High quality of master
processes, i.e. accurate
data and a single
reconciliation, timely
version of the truth
group closing
2015 SAP SE or an SAP affiliate company. All rights reserved. Public 8
MDG-F: The Solution
Building Block Overview
Process
Business Rules
Edition Management
Search
Business Rules
Create Change
Maintain Validate Approve Replicate
Block Mark for
Deletion
Edition Management
Replicate
Finally
Request Approve Enrich Replicate
Approve
Editions are used to control the validity of a change. In the edition, planned change
requests for the creation of new data or for changes to existing data are collected and
released collectively at a certain date. Time-dependent objects (Profit/Cost Center)
automatically inherit the valid-from date from the editions valid-from date.
Edition
When requesting a new financial master data item, often the requesting user does
not yet know the number to be used in Business Suite Applications. To provide
flexibility to the requestor whilst adhering to corporate numbering standards, the
single-object maintenance in SAP MDG-F offers the feature to use a generated key
first, and changing it to the desired final number in a later step of the creation
process.
Request Enrich
Master Data and Hierarchy Assignment in the same Main Financial Objects UI
Cost Center
Profit Center
Cost Element
Cost Center Group
Profit Center Group
Cost Element Group
And also:
G/L Account
Financial Reporting Structure Item
In addition to ERP:
Standard Hierarchy Group
Overview of all assignments in all
hierarchies
Display and maintain not only
standard group, but also Multiple Alternative Hierarchies
alternative hierarchies on master
data screen
B1 B1
C1
C1
C2 D1
C2 D1
D2
D2
B2 B2
C3
C3
D3
E1 D3
D4 E1
D4
A2 A2
C4
B3 C4
D5 B3 D5
Node currently maintained in a pending change request Interlocked: You must use the pending change request Not Interlocked: You can use a separate change request
Highlight Changes:
Fields that were changed
in the previous step are
highlighted in color
Easy to use:
Select multiple subnodes of one node and
carry out any of the actions above.
Direct Access/Insight to
Hierarchy Change by clicking
icons:
Pending Change Request
Change Document
Financial Consolidation
GL Account Consolidation
Chart of
(Company Reporting
Account
Code) Structure
Consolidation
Breakdown Breakdown
Chart of
Financial Category Category Set
Account
Reporting Company
Structure
Cause for Transaction
Submission Type
Controlling
Consolidation
Profit Center Characteristic
Profit Center
Group
Group
Hierarchy
Consolidation Element
Consolidation
Cost Center Consolidation Consolidation
Group
Group Profit Center Unit Group
Hierarchy
Hierarchy
Cost Center
Cost Center The figure shows only type 1 entities grouped
Group
into the three major MDG-F areas. Entities Profit
Center, Profit Center Group and Profit Center
Hierarchy are used by the Financial area, too.
Cost Element
Group Leading
Hierarchy 1 * Data Objects can be modified/
* 0..1 Referencin extended flexibly to specific
g
Cost Element 1 * needs, according to the backend
Cost Element
Group Hierarchy systems
AnyDB
MDG
SAP ERP
Example
AnyDB
Non-SAP
AnyDB
MDG is pre-integrated with SAP ECC, and provides publish/subscribe and master/slave implementation
modes with automatic distribution to SAP and 3rd party applications.
Aaron Zornes, The MDM Institute
MDG-F replicates the data according to the needs of the connected business systems. This
is independent of the deployment option, if MDG is used on top of one of the operational
ERP systems, or as a standalone MDG data hub.
SAP S4HANA
SAP MDG-F
MDG is pre-integrated with SAP ECC, and provides publish/subscribe and master/slave implementation
modes with automatic distribution to SAP and 3rd party applications.
Aaron Zornes, The MDM Institute
Web Service
ALE / IDoc
MDG-F
RFC
File
Technology
Browser-based UI (Web Dynpro
ABAP) to allow decentral task
execution
Approve new object: Only entered fields are Approve change: Only changed
displayed fields (with old values) are displayed
Summary
What can be improved? How can SAP Master Data What benefits can be achieved?
Governance help?
Process efficiency
Intercompany reconciliations Greater governance across local and Faster financial close
Period closing corporate systems Increased coordination across
Corporate controlling Automation of data maintenance through operating units
integrated validations, derivations and Increased trust in reporting data
Financial consolidation
role-based transactional guidance
Reduced cost of finance as a
Reduction of manual correction work due percentage of revenues
to First Time Right data entry
More automation in reconciliation of charts
of accounts across multiple ledgers
What can be improved? How can SAP Master Data What benefits can be achieved?
Governance help?
Compliance Management
Transparency Greater governance across local and Increased visibility into change
Traceability corporate systems impact on financial statements
Risk exposure Separation of duties between change and Reduced audit workloads and costs
approval authority for financial master data Greater collaboration in support of
Standardized workflow and automated internal policies and
routing government/industry regulations
Complete history and audit trail of changes Fewer non-compliance penalties
to financial master data
What can be improved? How can SAP Master Data What benefits can be achieved?
Governance help?
Master data Greater governance across local and Reduced effort to find information
Business rules corporate systems Increased trust in data by business
Governance processes Single Source of Truth allowing for creating users
and storing the right data at the right place, Greater consistency of financial
even in distributed and changing statements and less need for
landscapes restatements
Standardized data models, validation rules Improved modeling, planning and
and workflows analysis
Easier Cross-System Data Synchronization
through configurable and selective
distribution logic
2014
2015 SAP AG
SE or
or an
an SAP
SAP affiliate
affiliate company.
company. All
All rights
rights reserved.
reserved. Public 35
Agenda
Summary
Predictability
Fast value in days/weeks SAP Rapid
Fixed cost and fixed best practice scope Deployment Solutions
Integration
Integrated start and growth options
Immediate and future IT and business processes
landscape integrity
Choice
Modular packages to meet specific business needs
and allow individual adoption paths
Flexible licensing and deployment options
http://www.sap.com/mdm
http://www.sap.com/pc/tech/enterprise-information-
management/software/master-data-governance/index.html
http://www.sdn.sap.com/irj/sdn/mdm
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