Faster, Better, and Cheaper Central Finance

Implementations Through Magnitude

April 2021

PUBLIC
Today’s Magnitude SourceConnect Presenter

John Hume
Sales Consulting Manager
jhume@magnitude.com
+1 (206) 919-0979

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 2

Today’s Agenda

Overview of Magnitude Solution Extensions for SAP Central Finance

SAP Central Finance Transaction Replication by Magnitude for SAP S/4HANA

 Transaction Replication, Drilldown, SyncBack, & Reconciliation Reporting

SAP Central Finance Data Harmonization by Magnitude for SAP S/4HANA

 Extract, Data Profile, Harmonize, Load

Architecture and Process Flow

Why Magnitude for Central Finance?

Call to Action

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 3

SAP Central Finance
SAP S/4HANA Central Finance aggregates financial information from any source to provide
centralized visibility and operational control

SAP DATA Tightly

integrated

Scalable
NON-SAP DATA execution
SAP S/4HANA
Central Finance

Advanced
reporting

How do you address non-SAP data?

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 4

 SAP Central Finance Solution Extensions from Magnitude
A suite of pre-built solutions to accelerate and manage key data integration aspects between source ERPs and Central Finance
SAP S/4HANA
Source ERP Systems SAP Central Finance Data Harmonization Central Finance
by Magnitude for SAP S/4HANA
Foundation
Config / Master Data Master Data / Mappings
Data Sources: Customer GL Account Harmonization Business Partner: GL Account
 SAP ECC & S/4HANA Vendor Cost Center Create master data foundation Customer, Vendor Cost Center
 Oracle EBS, Material Project Material Project
JD Edwards,
PeopleSoft, Operational Accounting, Transaction Replication
NetSuite Universal Journal
 Microsoft Dynamics
Processes GL Posting Load financial documents
AX, Navision, GP, SL
 Workday Drilldown Operational Detail
 Infor SyteLine, Baan View original transaction details (SO, PO, ...)
 QAD
 Epicor iScala
 Deltek Costpoint AP & AR Clearing
SyncBack Central Payments
 Universal Write back to source
Flat File Format
 Others available Reconciliation Reporting
upon request
Track, audit, & compare postings

SAP Central Finance Transaction Replication

by Magnitude for SAP S/4HANA

Higher Faster time Lower cost

Reduced risk
business value to value of ownership

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 5

Magnitude drives highest value from Central Finance investment
Magnitude is SAP’s only recommended and certified solution for Central Finance data integration

Enabled by
Central Finance Use Case Magnitude
Management Reporting and Analytics ✓
Financial Consolidations ✓
Financial Planning ✓
Business Shared Services – Central Collections
✓
Capabilities Shared Services – Central Payment
Unlocked Intercompany Reconciliation ✓
Credit analytics ✓
Cash management ✓
Treasury ✓

Project Dimension With Magnitude

Key Time to Value < 4 weeks

Magnitude Total Cost of Ownership Lowest
Benefits Risk Lowest

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 6

Solution Details
SAP Central Finance Transaction Replication
by Magnitude for SAP S/4HANA
Demonstration – the “Round Trip”

SAP Central Finance SAP S/4HANA

Transaction Replication by Central Finance
Source ERP Systems
Magnitude
1 Transaction Replication
Operational Accounting,
Universal Journal 3
Processes GL Posting Load financial documents
2
4
Drilldown Operational Detail
View original transaction details (SO, PO, …)

SyncBack
AP & AR Clearing Write back to source Central Payments
6 5
7 Reconciliation Reporting
Track, audit & compare postings

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 8

Transaction replication

SAP S/4HANA
Source Systems
Central Finance
Extracts, Maps and
Sales Order Populates into SLT

SLT Posts Journals into Universal Journal

Central Finance
Pick, Pack, Ship Universal Journal SLT
/1LT/CF_E_HEADER
/1LT/CF_E_ACCT Document Header
Transaction /1LT/CF_E_DEBIT (BKPF)
Bill Customer Replication
/1LT/CF_E_CREDIT
/1LT/CF_E_PRDTAX
/1LT/CF_E_WHTAX
/1LT/CF_E_COPA

Example: /1LT/CF_E_CLRITM
/1LT/CF_E_CLRWHT
 Sales invoices (with and without /1LT/CF_E_EXTENT
Document Line
revenue recognition) /1LT/CF_E_EXT_IT (ACDOCA)
 Credit memo for order returns
Initial Load of Customer, Vendor
 Drop-ship / direct-ship order invoices
and GL Account Balances, and Open
Items

Historical Load of Transaction Detail

Real-Time Incremental Interface

for Non-SAP Sources
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Simplifying the data integration complexity

Each step of data integration requires scoping, design, development, testing, deployment and maintenance:

Error Handling
Extract Data Map Transform Validate Load to SLT and
Reconciliation

Direct-Connect
100% Prebuilt Software by Magnitude
Sources:

Flat File
Universal Flat File >80% Prebuilt Software by Magnitude
Extract
Sources:

Magnitude solves for 80% or more of 3rd-party data integration requirements for any source ERP

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 10

Simplifying the data integration complexity

It’s just data integration – how hard can it be?

Source Systems Data Preparation Central Finance

 Multiple different ERP vendors is  Maximum document length in SAP (max
common 999 lines, requires splitting)
 Upgrades of source ERPs will impact  2 significant figures in SAP can cause
integration reconciliation errors and must be
 Each transaction type is stored resolved
differently  Entries must be validated prior to load
 Each database type uses different or risk creating errors in SAP
change-data-capture technology  Balances migration – initial balances
 Summary and detail postings must be must be migrated to set up SAP – non-
considered standard and non-trivial integration task
 Tax lines are often stored apart from  Tax codes often have to be
transactions standardized (max 2 characters in SAP)
 Data types for common fields (like  Performance & throughput – requires
dates) can be stored differently optimization for SAP Data Services to
 And more manage over 1 million journals/minute
 And more
 Synchronize voided documents and
reversals requires special treatment
(due to duplicated document IDs)
 Credit documents require special
treatment
 Withholding tax requires special
treatment
 Maximum document name length of 10
often requires special handling
 Pre-built mappings to SAP SLT
interface tables are updated as SAP
evolves – new versions supported
within 90 days of release
 And more

Faster, better, cheaper – with pre-defined templates from Magnitude

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Drilldown to support non-SAP operational detail

SAP S/4HANA
Source Systems
Financial Transaction – Required
Central Finance
for global visibility to financial data
Sales Order across all sources

Universal Journal
Pick, Pack, Ship

Transaction Customer
Bill Customer Replication Invoice

Supporting Detail in
Drilldown Magnitude Repository
Sales Order, Shipping, Unit Prices, …

Supporting Detail – Required to

understand transaction detail for
review, reconciliation, and others
(Purchase orders, sales orders, ...)
© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 12
Clear open items in source ERP for Central Payments

SAP S/4HANA
Source Systems Central Finance

Purchase Order
Universal Journal
Goods Receipt

Transaction
Vendor Invoice, Match Replication
Vendor Invoice

Immediate Auto-clear in source SyncBack Vendor Payment

Support for AP and AR Clearing in Source

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 13
Track, compare and audit financial postings

SAP Central
Data
SAP SLT Finance
Source ERP Preparation &
Interface Universal
Level 1 Validation Level 3 Level 4
Journal

Level 2

Level 5 (via recon repository)

Transaction Replication
SAP Central Finance Transaction Replication by Magnitude enables summary and detailed
Reconciliation comparisons at each step in the transaction replication process, ensuring proper visibility into
any discrepancies

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 14

Reconciliation reporting – user experience and capabilities
Prebuilt Dashboards and Reports Comprehensive Data Model
Central Finance Attributes Source ERP Attributes Other Attributes
• Account Group • Alternate UOM • As Of Date
• Alternate UOM • Baseline Date • Document Currency Code
• Baseline Date • Batch • Company Currency Code
• Business Activity • Business Activity • Group Currency Code
• Company Code • Business Unit • Derived Mapped Product Code
• Cost Center • Company Code • Location
• Cost Object Number • Cost Center • Logical System
• Customer • Cost Object Number • Mapped SAP Company Code
• Document Date • Customer • MSC Interface Date
• Document Number • Document Date • Processing Status
• Document Posted Date • Document Number • Variance Number of Days
• Document Type • Document Posted Date
• Fiscal Period • Document Type Measures
• Fiscal Year • Due Date
• GL Account • Fiscal Period Source, Central Finance,
• HI4 • Fiscal Year Variance, AIF, & In-Process
• Ledger • HI4 measures for:
• Material • Ledger
• Document Amount
• Net Due Date • Material Number
• Number of Days • Number of Days • Company Amount
• Group Amount
• UOM • GL Account
• Quantity
• Payment Block • Payment Block
• Payment Terms • Payment Terms • Alternate Quantity
• PRD Tax Code • PRD Tax Code
• Product Code • Product Code
• Profit Center • Profit Center
• Trading Partner ID • Subsidiary
• Transaction Type • Trading Partner ID
• Unique ID • Transaction Type
• UOM • Unique ID
• Vendor • UOM
• WBS Element • Vendor
• WBS Element
• Source System
© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 15
Solution Details
SAP Central Finance Data Harmonization
by Magnitude for SAP S/4HANA
 SAP Central Finance Data Harmonization by Magnitude for SAP S/4HANA
Pre-built solution to accelerate the onboarding of critical Central Finance master data into SAP Master Data Governance
SAP S/4HANA
Source ERP Systems SAP Central Finance Data Harmonization Central Finance
by Magnitude for SAP S/4HANA
Foundation
Config / Master Data Master Data / Mappings
Data Sources: Customer GL Account Harmonization Business Partner: GL Account
 SAP ECC & S/4HANA Vendor Cost Center Create master data foundation Customer, Vendor Cost Center
 Oracle EBS, Material Project Material Project
JD Edwards,
PeopleSoft, Operational Accounting, Transaction Replication
NetSuite Universal Journal
 Microsoft Dynamics
Processes GL Posting Load financial documents
AX, Navision, GP, SL
 Workday Drilldown Operational Detail
 Infor SyteLine, Baan View original transaction details (SO, PO, ...)
 QAD
 Epicor iScala
 Deltek Costpoint AP & AR Clearing
SyncBack Central Payments
 Universal Write back to source
Flat File Format
 Others available Reconciliation Reporting
upon request
Track, audit, & compare postings

SAP Central Finance Transaction Replication

by Magnitude for SAP S/4HANA

Higher Faster time Lower cost

Reduced risk
business value to value of ownership

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 17

 SAP Central Finance Data Harmonization by Magnitude for SAP S/4HANA

Source ERPs Extract Upload

Source Values Records & Mappings
(SAP & Non-SAP) SAP S/4HANA
 Retrieve records for  Call SAP S/4HANA
initial load APIs to create master
Master data data records and
required for
 Capture new or updated
records ongoing mappings
Central Finance:
 Profile and flag invalid Central
GL Accounts
records SAP Master Data
Data Sources: Finance
Governance
Cost Centers
 SAP ECC & S/4HANA
 Oracle EBS, Master Data
JD Edwards, Customers Records Universal
PeopleSoft,
NetSuite Vendors Journal
 Microsoft Dynamics Mappings
AX, Navision, GP, SL Materials
 Workday
 Infor SyteLine, Baan Prepare
Projects
 QAD Master Data
 Epicor iScala
 Deltek Costpoint
 Merge duplicates
 Universal  Transform data for load
Flat File Format into MDG
(BP functions, company
code associations, sales
orgs, ...)

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 18

Prepare master data for central finance
SAP Central Finance Data Harmonization by Magnitude for SAP S/4HANA automates several data
preparation tasks prior to load into central finance:
Key Preparation Steps Automated by SAP Central Finance Additional
Category
Data Harmonization by Magnitude for SAP S/4HANA preparation steps:
Business  Create multi-level business partner structure, including Business
Partner Partner Group and Roles  Determine business rules for
 Associate business partner with relevant company codes merging master data:
 Set company code-level attributes: Reconciliation Account, Account payment terms, credit limit,
Group, Payment Terms, ... …
Material  Create master material record
 Based on specific Central
 Associate material to sales organization and plant level Finance configurations,
 Map Unit of Measure and required reference data enable additional Business
 Set sales org, storage location, and plant-level attributes Partner roles and add related
Project  Interface project definition, WBS element, and WBS element hierarchy data elements
GL Account  Create account record with chart of accounts, account type, and  Include additional attributes
description for detailed analysis and
 Associate account with relevant company codes reporting
Cost Center  Interface cost center, controlling area, and associated hierarchy
© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 19
Demonstration
SAP Central Finance Data Harmonization
by Magnitude for SAP S/4HANA
SAP Central Finance Data Harmonization by Magnitude for SAP S/4HANA
augments SAP Master Data Governance
SAP Central Finance Data Harmonization by Source Systems
Magnitude for SAP S/4HANA
 SAP ECC & SAP S/4HANA
Pre-built solution to accelerate the SAP S/4HANA
 Oracle EBS,
onboarding of critical Central Finance
Purpose JD Edwards,
master data into SAP Master Data
PeopleSoft, Central Finance
Governance
NetSuite
Extraction, preparation and load of  Microsoft Dynamics
master data and business mappings AX, Navision, GP, SL
Focus
into SAP Master Data Governance for SAP
Central Finance  Workday Master Data
Rapid, low cost implementation
 Infor SyteLine, Baan Governance
Suited For of Central Finance; accelerated Master  QAD
Data Governance projects  Deltek Costpoint
 Universal
Governance Not supported Flat File Format
 Others available
upon request
Typical
Days to weeks
Implementation

SAP Central Finance Data Harmonization by Magnitude accelerates SAP Master Data Governance
projects by quickly onboarding critical master data from SAP and non-SAP source systems
© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 21
Architecture and Process Flow
Technical Architecture
Data Harmonization (Business Partner, Material, GL Account, Cost Center, Project)
Recon Level 5
Master Data (RFC, BAPI)

Source ERPs SAP Data Services Server SAP SLT SAP S/4HANA (On-Premise / Cloud)
SLT Write Engine Central Finance
Real Time CDC
Discovery
Technical Mapping
ERP Data
Extraction Inbound Posting Interface
RFC (w. business mapping)
Mapping & Connection
SLT Read Engine
FINS_CFIN_EX_AC_DOC_GENERATE
Data Preparation
CDC* - Logging Table

Uses SAP DS
DB Trigger
Universal Journal Posting
Other Sources Inbound
Staging Tables Recon
(Flat Files & Others) SAP Fiori Apps
Magnitude Repository (SAP pre-defined, Level 4
Stage DB, Drilldown & Reconciliation Data within SLT or outside)
RFC
Recon Level 1 /1LT/CF_E_HEADER
STAGE1 (HANA, ASE, MS SQL, Oracle) STAGE2 Connection
Recon /1LT/CF_E_ACCT

Data Harmonization Level 3 /1LT/CF_E_DEBIT

Drilldown Objects
Recon /1LT/CF_E_CREDIT Smart Data
Transaction Replication Level 2 /1LT/CF_E_PRDTAX Access
Drilldown /1LT/CF_E_WHTAX
Smart Data Reconciliation Objects
/1LT/CF_E_COPA
SyncBack Access
/1LT/CF_E_CLRITM
Reconciliation Reporting /1LT/CF_E_CLRWHT
/1LT/CF_E_EXTENT
Magnitude Components /1LT/CF_E_EXT_IT

* HVR or other CDC tools may be needed for certain database types and versions
© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 23
Why Magnitude for Central Finance?
Magnitude drives highest value from Central Finance investment
Magnitude is SAP’s only recommended and certified solution for Central Finance data integration

Enabled by
Central Finance Use Case Magnitude
Management Reporting and Analytics ✓
Financial Consolidations ✓
Financial Planning ✓
Business Shared Services – Central Collections
✓
Capabilities Shared Services – Central Payment
Unlocked Intercompany Reconciliation ✓
Credit analytics ✓
Cash management ✓
Treasury ✓

Project Dimension With Magnitude

Key Time to Value < 4 weeks

Magnitude Total Cost of Ownership Lowest
Benefits Risk Lowest

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 25

What Now?
Reach out for assistance

Visit www.magnitude.com/SAP to learn more about how to

bring non-SAP data into Central Finance

Doug Corpuel
Senior Director
dcorpuel@magnitude.com
+1 (917) 562-4215
Thank you.