SAP Central Finance

• SCENARIO
• You are Managing a complex and varied ERP system landscape. You want to find a solution to improve financial
reporting and processes, both in speed and accuracy. A large transformation and migration project to completely
new systems is out of the question due to time, cost, complexity and business continuity requirements.
• You want to understand if and how the SAP Central Finance solution can help transform and modernize your
Finance and Operations.

• Business Challenges
• Consolidated entity reporting
• Central Process execution
• Business model pressure
• Heterogeneous IT landscapes
• SAP and Non-SAP ERP systems
• Relational database designs
• Productivity & Effectiveness
 The Central Finance Solution
• Central Finance helps companies report on financial figures sourced from
different systems.
• With the Central Finance solution, there are three interfaces that feed
data from the source systems into the target system’s Accounting
Interface.
 An Interface for reporting FI/CO postings:
Financial documents that are posted in the source system get reposted as new FI documents in the
central finance system. If these posting are relevant to CO (expenses on cost elements), CO will be
updated too.
An Interface for reposting CO posting:
This interface reposts the CO postings where the CO document is the loading document. In contrast to
the interface for FI/CO postings, these are postings that are not necessarily reflected in the Financials in
the source system(Sometime only for reconciliation purposes). For example, postings on secondary cost
elements.
An interface for replicating certain cost objects ( such as production orders , internal orders, QM orders
etc.)
 Universal Journal
• The posted documents are stored in the Universal journal of the SAP
Simple Finance system. It is possible to take advantage of new G/L
features within SAP Simple Finance as well as the ability of flexible
reporting based on line-items instead of pre-aggregated totals. Further
more beautiful Fiori user interfaces and reporting tools can be used in the
central finance. Reporting with the speed of HANA is available on line-item
levels.
Inbound Posting Interfaces (Finance,
Controlling)
Central Finance

FI Postings Universal
FI Journal
Central
document Entry
CO Postings Finance
CO Accounting
document Interface
Cost Object Mapping
Internal
Order
Internal
Order

SAP HANA
Reposting Harmonizes data but

retains line items-based detail Central Finance Instance

Procedure: Migration to Simple Finance On-
Premise Edition 1503

• Train those involved in SAP on the new transactions and programs

Preparation •
•
Create a blueprint for process redesign and reporting
Perform reconciliation, period-end activities, and gather reporting snapshots for before/after
comparisons

• Install the Simple Finance On-Premise Edition 1503.

Installation • The System backs-up index and totals tables automatically

• Customize General Ledger Accounting

Customizing •
•
Customize and activate Asset Accounting (New)
Customize Management Accounting (account based CO-PA)

• Migration of financial data (GL/AP/AR/CO/FI-AA/ML)

Data Migration • Reconciliation & Checks within and after migration

• Perform process tests to ensure successful migration

Post Processing •
•
Transfer data to cold database area
Update due dates and offsetting account

Especially if currently using classic G/L, but a good idea from new G/L as well.
Old Architecture
New Architecture