Finance in SAP S/4HANA Road Map

March 2019

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About SAP road maps

Companies today are planning their digital journeys – transforming business models, reengineering business
processes, and reimagining work.
SAP road maps highlight innovations that may help you plan and implement your digital journey. They span
products relevant to lines of business in your industry and explain how our innovations may add value to your
business.
In our road maps, you can learn about our innovations along four different timelines:
1. Recent innovations for our products that have been launched in the past weeks or months and can
already be purchased
2. Planned innovations for our products that are intended to be launched in the short term or midterm
3. Product direction, providing a long-term perspective on high-level development plans for innovations for
our solutions – inspired by your requirements
4. Product vision, providing a high-level and long-term business perspective on innovations for our products

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Table of contents

Topic overview
 Topic description
 Key trends and customer needs
 Road map overview and major product updates

Topic road map

 Recent innovations
 Planned innovations
 Product direction
 Product vision

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Finance in SAP S/4HANA
Product description

Instant insight Intuitive user experience Flexible and nondisruptive

Single source of truth Insight for business users Easier to deploy and extend

Real-time accounting

End-to-end Instant
process financial
automation analysis

SAP HANA

Real-time Real-time and

treasury predictive
and cash planning
management

Financial planning Accounting and Treasury and Finance Enterprise risk

and analysis financial close financial risk operations and compliance

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This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. 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 noninfringement. 5
Finance in SAP S/4HANA
Product description

Key capabilities

 Reimagine and transform strategy

– Detect patterns in data to capture business trends
– Evaluate and predict the impact of decisions from a single source of truth
– Drive partnerships and M&A to capture opportunities
– Innovate business models and business processes to keep up with the market
 Reimagine and transform business performance
– Get closer to the business by eliminating boundaries between transactions, analytics,
and decision-making
– Detect and respond to root cause of key performance indicators (KPI) variances in
real time
– Use predictive analytics, intelligent insights, and end-to-end simulation to drive better
business performance
 Reimagine and transform efficiency
– Achieve digital automation with machine learning and digital assistants
– Provide “lights out” processing for recurring transactions tasks
– Gain efficient straight-through processing with connected systems in real time
– Accelerate integration of M&A

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This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. 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 noninfringement. 6
Finance in SAP S/4HANA
Product portfolio

VP of finance Head of corporate reporting Corporate treasurer Head of finance operations Chief compliance officer*

Financial planning Accounting and Treasury Governance, risk, and

Financial operations
and analysis financial close management compliance for finance

Finance in SAPS/4HANA – Finance in SAPS/4HANA – SAP S/4HANA Finance for cash Finance in SAPS/4HANA – Chief
Finance financial– officer*
in SAPS/4HANA
core ERP capabilities: core ERP capabilities: management core ERP capabilities: core ERP capabilities:
 Planning, budgeting,  Accounting  Receivables management  Enterprise risk management
and forecasting  Entity close  Invoice management and accounts  Controls and compliance management
 Profitability and cost management  Reporting and disclosure payable  Fraud management
 Financial close governance  Audit management

SAP Business Planning and SAP Business Planning and SAP S/4HANA Finance for in-house Real estate management in SAP SAP S/4HANA for advanced
Consolidation (versions for SAP Consolidation (versions for SAP cash S/4HANA compliance reporting
NetWeaver and Microsoft): NetWeaver and Microsoft):
 Development and translation strategy  Corporate close
 Planning, budgeting, and forecasting
 Profitability and cost management

SAP Financial Closing cockpit for SAP SAP S/4HANA Finance for treasury SAP S/4HANA Finance for receivables SAP Audit Management for SAP
S/4HANA and risk management management S/4HANA

SAP Tax Compliance for SAP SAP Electronic Invoicing for Brazil SAP Business Partner Screening for
S/4HANA SAP S/4HANA

SAP S/4HANA for central finance SAP Process Control for SAP
foundation S/4HANA

SAP Risk Management for SAP

S/4HANA

SAP Access Control for SAP S/4HANA

Business integrity screening in SAP

S/4HANA

*Not part of the finance road map

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This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. 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 noninfringement. 7
Finance in SAP S/4HANA
Key trends, customer needs, and value proposition

Key trends and impacts in business Customer needs and the value propositions
and technology: of the product:
 Machine learning identifies hidden patterns in  Use accurate digital data to reduce
knowledge-intensive processes and then executes reconciliations and enable higher degree of end-
processing. to-end automated processing.
 Robotics process automation helps run  Run finance in real time to manage your
repetitive, rule-based monotonous tasks. company from end to end with real-time visibility.
 Analytics capabilities are available to leverage  Support business process transformation with
embedded and contextual insights for instant preconfigured business process and embedded
action. best practices.

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This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. 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 noninfringement. 8
Finance in SAP S/4HANA
Product/portfolio areas of future investment

Big Data
Cloud Real-time insights with in-memory
Fast deployment processing

Business
networks
Connecting
with partners
User
experience
Adapting to the
modern workstyle
Blockchain Transforming finance
Business
transactions organizations
of the future

Predictive and Robotics and

cognitive machine learning
Simulating business outcomes Increased efficiency
© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER
This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. 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 noninfringement. 9
9
Finance in SAP S/4HANA
Product road map overview – Key process innovations

Recent innovations 2019 – Planned innovations1 2020 – Product direction1 2021 – Product vision1

Accounting Accounting Accounting Leveraging soft close and prediction

 Purchase order accruals  Further scenarios for universal allocation  Further scenarios for accrual management  Early predictive insight into business trends
 Machine learning for accrual management  Subsequent implementation of currencies
Leveraging soft close and prediction Parallel value flow
 Optimized functional area derivation for overhead-cost  Time-dependent tax
 Accounting for incoming sales orders  Enhance multiple valuation and currencies as basis
calculations [new] Accounting standards for consolidation
 First commitment scenarios
Leveraging soft close and prediction  Adoption of future legal requirements of accounting principles
Parallel valuation Organizational change
 Orchestrating entity close with advanced financial close Leveraging soft close and prediction  Orchestration change cockpit
 Multiple currencies for follow on processes
 Predictive journal entries for purchasing processes  First prediction scenarios for 3rd-party integration
SAP S/4HANA consolidation
Profitability  Integration of top-down and bottom-up prediction
Parallel value flow  Migration assistant
 COGS split based on actual cost components Profitability
 Further enablement of multiple currencies  Confidence information in reports
 Statistical sales conditions  Further scenarios for profitability based on universal journal
Profitability  Guided analytics
Financial planning Financial planning
 First scenarios for top-down distribution based on universal
 Plan data allocations reworked to update new universal journal  Integration with SAP Integrated Business Planning for sales
planning persistency and operations
 Connectivity of SAP Analytics Cloud to on-premise planning Financial planning
Business reporting content
environment  Cockpit to manage financial plan data
 Value chain reporting
Business reporting content Organizational change SAP S/4HANA consolidation
 Enhancements for flexible hierarchies  Impact analysis  Continuous group reporting
SAP S/4HANA consolidation SAP S/4HANA consolidation  Restatements
 Legal consolidation  Matrix consolidation  Automated interunit profit elimination in inventory
 Consolidation of plan data  Automated consolidation of investments  Knowledge workspace for finance
 Finance assistant
 Increased level of detail in consolidation data  Group structure manager
 Multiple subgroup currencies
 Intercompany reconciliation report  Group share calculation [new]
 Intelligent data validation
 External system integration  Integration into advanced financial closing
 Integration scenarios with planning applications
 Advanced intercompany reconciliation

1. This is the current state of planning and may be changed by SAP at any time without notice.

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This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. 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 noninfringement. 10
Finance in SAP S/4HANA
Product road map overview – Key process innovations

Recent innovations 2019 – Planned innovations1 2020 – Product direction1 2021 – Product vision1

Treasury and risk management Treasury and risk management Digital transformation with contract accounting Digital transformation with contract accounting

 Basic coverage of legislations in foreign currency hedge  Enhancement of treasury reporting capabilities  Integration of SAP Bank Communication Management  Automation of the service-to-cash processes by leveraging
management and accounting for US-GAAP machine learning and predictive models
 Expand coverage of legislations in foreign currency hedge Treasury and risk management
Central finance management and accounting for US-GAAP Treasury and risk management
 Adoption of future legal requirements
 Improvements and simplifications for onboarding and Central finance  Intelligent treasury
 Treasury analytics
operations Real estate
 Enable cross-industry scenarios
 Finance data hub for consolidation Central finance  Digitalize the entire building lifecycle
 Extended central AP/AR payment processing
 Central closing activities including soft close and prediction
Integration with business networks  Indirect tax reporting Cash management
 Integration into advanced financial closing
 Cost center integration with SAP SuccessFactors Employee  New capabilities for central projects  Intelligent cash management
Central and SAP SuccessFactors Employee Central Payroll  Additional central processes
 Improvements and simplifications for onboarding and
Real estate operations  Further financial reporting scenarios

 Integration with legal content management Real estate Real estate

Cash management  Optimizations for high-volume processes  Machine learning to optimize real estate process

 Enhance liquidity forecast by integration of real estate data  Lease questionnaire Cash management
 Snapshot of historic cash position report  Integration of Ariba Network for procurement of real estate  Bank relationship dashboard
services
 Bank fee import and report  Increase automation of bank account management with
Cash management electronic bank account management (eBAM)
 Correspondence for bank account management
(on premise)  Liquidity planning with SAP Analytics Cloud Integration with business networks
 Cash pooling with multiple layers  Comprehensive integration scenarios with SAP Ariba
solutions, SAP Fieldglass solutions, SAP SuccessFactors
 Cash manager–triggered trade request
solutions, and SAP Concur solutions
Payments
 Advanced payment factory capabilities

1. This is the current state of planning and may be changed by SAP at any time without notice.

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This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. 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 noninfringement. 11
Finance in SAP S/4HANA
Product road map overview – Key process innovations

Recent innovations 2019 – Planned innovations1 2020 – Product direction1 2021 – Product vision1

Adoption of legal changes in revenue accounting Adoption of legal changes in revenue accounting Adoption of legal changes in revenue accounting Adoption of legal changes in revenue accounting
 Functional round-offs for IFRS 15 and ASC 606  Increase automation for IFRS 15 or ASC 606 requirements  Additional IFRS requirements  Advanced revenue analytics based on machine learning
 Improved support for disclosures Leverage SAP Cloud Platform for finance Leverage SAP Cloud Platform for finance Leverage SAP Cloud Platform for finance
Leverage SAP Cloud Platform for finance  Broaden functionality of machine learning in finance  Credit management cockpit  Functional enhancements for delivered SAP Cloud Platform–
operations processes with SAP Cash Application
based applications utilizing game-changing transformations
 SAP RealSpend – Anomaly detection leveraging machine  Application for goods receipt and invoice receipt monitor  SAP RealSpend – Multidimensional cost reporting
learning  Procurement/company card
 SAP digital payments add-on – Self-service integration for Leverage SAP Cloud Platform for consolidation
 SAP Financial Statement Insights – smart alerting certified payment service providers  Accounts receivables/ payables financing
 Disclosure management
 SAP S/4HANA Cloud for finance for credit integration:  SAP digital payments add-on – Enablement of additional
Integration of additional credit agencies payment service provider

Leverage SAP Cloud Platform for treasury  Bank connectivity supporting contract accounting processes
 Virtual credit card
 Integration of trading platform 360T – Inbound and outbound
services Leverage SAP Cloud Platform for treasury
Leverage SAP Cloud for Real Estate for corporate real estate  Headquarters subsidiary scenario for internal deals
management  Cash request scenario
 Visual workspace management Leverage SAP Cloud for Real Estate for corporate real estate
management
Leverage SAP Cloud Platform for consolidation
 Digital twin – Master data extensibility
 Enhanced data collection for nonfinancial measures and
nonintegrated subsidiaries  Further integration of partner cloud solutions
 Digital twin – Object-related information sharing
 Integration of IoT scenarios
 Integration of Ariba Network
 Integration to facility management (EAM)
Leverage SAP Cloud Platform for consolidation
 Intelligent data mapping leveraging machine learning

1. This is the current state of planning and may be changed by SAP at any time without notice.

© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER

This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. 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 noninfringement. 12
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