SAP Treasury And Risk

Management With Central

Finance-S/4 HANA -2022
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 About -Mentor

Mr.Aditya Working as SAP TRM Consultant and Mentor .

Aditya.Challa
CFA-Charted Financial Analyst
FERM-Financial Engineering And Risk Management
MS-F-Masters In Finance
MBA-International Trade And Finance
He has over 18 years of experience in the software industry and holds CFA,
Financial Engineering, MS. Finance And Certified Mentor from SAP. Aditya has
actively participated in Multiple Cooperate and individual Trainings , been a key
speaker at numerous events- Over the Globe In Multiple MNC companies In the
area of SAP-S/4 HANA Finance, SAP-S/4 HANA TRM,SAP-S/4 HANA Central
Finance. He is also Part of Carrier Advisor for Finance students to get placed in
Multiple companies as Certified consultants.

SAP Certifications-
SAP S/4 HANA Finance
S/4 HANA Treasury And Risk Management,
S/4 –Central Finance

2
 Future of SAP TRM

TREASURY AND RISK CASH MANAGEMENT SAP S/4 HANA CENTRA

MANAGEMENT . POWER BY SAP S/4 HANA. FINANCE.

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 How SAP S/4 HANA Treasury And Risk
Management Gain Its Market Capitalization

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Agenda
Learn About:

● Corporate Treasury: The Strategic Role and Main Tasks

● The End-to-End Treasury and Risk Management Solution Map including Integration to
other Modules

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 Corporate Treasury: The Strategic Role and Main Tasks

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 Strategic Challenges Treasury Organizations Face

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 Treasurers Task Profiles and the SAP Solutions Provided

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 An Integrated Solution: Connectivity and Coordination

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 The TRM Solution Architecture with Focus on Integration

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 Trading Platform Integration Architecture

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 The Treasury Risk Manager's Tasks: Focus on Risk

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The Big Picture: Processing, Hedging, Risk, Organization, Products

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Market Risk Analyzer Identification of Risk Factors for VaR Calculation

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 How To Increase Working Capital Management
Using
Cash Management Power By HANA

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Agenda
Learn About:

● Cash Management Advantages in SAP TRM

● Functions of Cash Management

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 Unleash the power of SAP to improve your working capital utilization

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 Working capital value

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 Expanding the view for Treasury

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 Reimagine how businesses can manage Working Capital

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 Integrated Cash Management Solutions

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 Advantages Of Central Finance in SAP S/4 HANA

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Agenda
Learn About:

● Challenges Before Central Finance

● Advantages After Implementing Central Finance

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 Drivers for Moving to a Central SAP S/4HANA Instance

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 Simplified illustration of a Typical Distributed System Landscape

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 How to Get to SAP S/4HANA as the Future Landscape

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 SAP S/4HANA Innovations: Three Options

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 The Non-Disruptive Step Toward SAP S/4HANA Finance

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 The Non-Disruptive Step Toward System Consolidation

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Group Reporting for Complex Enterprise Structures, M&A Onboarding, or Divestitures

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 Tangible Results of Simplification and Innovation

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 Business Benefits

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 Central Finance Roadmap

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 Central Finance Business Benefits

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 Central Finance Landscape: Key Use Cases

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 The Central Finance Approach: A Catalyst for Transformation

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 Use Cases for the Central Finance Processes

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Agenda
Learn About:

● Challenges Before Central Finance

● Advantages After Implementing Central Finance

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 The End-to-End Treasury and Risk Management Solution Map

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 TRM - The Big Picture: Processing, Hedging,
Risk, Organization, Products

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 FIORI TRM Tiles - The Modern User Interface
with S4HANA

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 FIORI/ Personas Treasury Management Cockpit

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 TRM Basic Structures

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 Transaction Manager Basic Structures: Product
Oriented Grouping

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 The Transaction Manager: Product Groups
with Products

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 The Transaction Manager Main Process:
Organization

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 The Transaction Manager Main Process:
Organization, Job Roles/ Tasks and
Functions

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 The Transaction Manager Main Process

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 The Transaction Manager Main Process:
Standard Deal Processing

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 The Transaction Manager Main Process:
Deal Creation

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 The Transaction Manager Main Process:
Settlement

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 The Transaction Manager Main Process:
Posting

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 The Transaction Manager Main Process:
Payment

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 The Transaction Manager Main Process:
Evaluation

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 The Transaction Manager Main Process:
Reporting

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 The Transaction Manager Main Process:
Limit Report

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 The Transaction Manager Main Process:
Accounting

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 Completing the Transaction Manager Main
Process: Correspondence

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 Completing the Transaction Manager Main
Process: Authorizations, Dual/ Triple Control,
Change Reporting

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 Linked with the Transaction Manager Processes: Risk Management

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 1

SAP S/4HANA Central FinanceArchitecture

SAP ERP as the source system
where the main business processes
run and FI and CO documents are
posted

The second system is the SAP SL T

as the integration platform which
reads and replicates the FI and CO
documents.

The third system is the SAP

Central Finance as the target
system on S/4HANA
where the FI and CO
documents are re-posted

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 2 Source System Prerequisites

SAP S/4HANA Central Finance can be used out of the box with all SAP
ERP releases that are still in maintenance, starting from SAP ERP 6.0.
Instructions on how to implement central finance with these systems
are available either as SAP Notes (see note 2323494), or are contained
in the support packages for these systems

Systems on release level 4.6C, 4.7, and ECC 5.0 can still act as a
source for central finance, but the implementation has to be done as a
customer project and requires manual implementation. SAP offers
coding versions, via consulting notes (see note 2279674), to reduce the
manual effort
Non-SAP systems, including SAP Business ByDesign and SAP
Business One, can be connected to central finance using SLT. Central
finance provides SLT content, with the staging tables as the interface
to the central finance system (see note 2300443)

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 Central Finance: Data Flow Architecture Guidance
(Postings)

The staging area is used to connect various legacy

systems that have different data models than a
SAP central finance system.

SAP provides preconfigured content for loading data

from simplified staging areas, which facilitates loading
and replicating of data from legacy systems
(non-SAP) to a central finance system

Extracting and loading the data to the staging area

depends on the data structure of the legacy system.
Due to legal restrictions,

SAP cannot provide preconfigured content in order

B u s i n es s S t r a t e g i
to extract the data, so this step must be done
manually during the project

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3

SL T loads data from relevant source tables to SAPHANA

Central Finance If data is added, deleted or updated SL T detects the delta in the
source system

Integration with In real time, the delta information is replicated from SLT to the target
system. Two types of replication are supported:

SAP SLT
Table-based replication & application-based
replication Central finance uses the application-based
replication

Replication Serve
The SAP LT Replication Server uses a trigger-based replication approach
to pass data in real time, from the source system to the target system
The SAP SL T Replication Server is embedded as middleware in
your landscape and can be deployed without disrupting your existing
operations.

You use the software to feed several target systems with real-time
information, depending on your business scenarios and
requirements

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 Option to Deploy SLT to CFIN
There are 3 technical options to deploy SL T for central finance integration:

SLT is deployed on a separate instance

Additional source systems can be integrated to SL T
without impacting the other source systems and the
Central Finance system
it does not affected by any upgrade or update of the
source systems and the Central Finance system .SL T
can also be used for other integration scenario besides
Central Finance

SLT is deployed in the source system

SL T has direct access to any data in the source system

Better performance on read, because there is no network

connection required to the source system

SLT is deployed in the central finance system

SL T has direct access to any data in the Central

Finance system

B u s i n e s s S t r a t e g i
Better performance on replication, because there is no
network connection required to the Central Finance system.

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 SAP LT Replication Server: Highlights
SAP LT uses a trigger-
based approach. Atrigger-
based approach has no
measurable
performance impact on the
source system.
It provides transformation
and filtering capabilities
allows real-time (and
scheduled) data replication
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It replicates relevant data
only into HANA, from SAP
and non-SAP source
systems
It is fully integrated with
HANA studio
Replication from multiple
source systems to one
HANA system is allowed,
also from one
source system to multiple
HANA systems
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 Central Finance Data Flow via
6 SLT

The main scenario of central finance is the

real- time replication of accounting (FI) and
controlling (CO) documents, as well as cost
objects.

Data flow via SLT is applied not only to real-

time replication, but also for the initial load of
cost objects and CO internal postings. The
source system requires the central finance
integration component for the SL T to read
data. This component can be installed via SAP
notes, o r by updating to the latest service pack
of the release.

Cost objects are read from the AUFK table and

its dependent tables, whereas the CO internal
posting is read from COBK, COEP, and other
dependent tables. The FI/CO posting is not
read from the BKPF and BSEG tables, but from
CFIN_ACCHD and its dependent tables. This
process is due to central finance using
application-based replication, in which data is
not replicated table-to-table, but replicated (re-
posted) via an accounting interface.

The cost object and CO internal posting have

the same/similar database table structures and
interface. The FI/CO posting has another
interface structure as the database table
structure

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 Cost Object
Master Data Customising
Handled by the
Handled by MDG Handled by MDG cost object
key mapping (ID value mapping mapping
mapping) (code mapping) framework

.
Central Finance MDG Mappings
One of the main objective of central finance is to harmonize the data across different source systems.

The data harmonization is mainly project effort, because every customer has different data from different
source systems

B u s i n es s S t r a t e g i

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 Options to Deploy MDG in Central Finance Landscape

Consists of deploying MDG as a

There are two prominent options for MDG deployment in separate instance. This is
MDG is deployed as a separate instance facilitated by using a dedicated
a Central Finance landscape. Central Finance engages

01
only selected MDG functionality as MDG is also used for ERP system as a hub for MDG, in
which complete MDG processes
many other business processes such as in SRM, SCM, (governance and consolidation) are
CRM etc managed in a separate instance.
Mapping information is stored in
the MDG instance, but master data
must be replicated to the central
finance system. Therefore,the
central finance system must query
key mapping information from the
MDG system. However, replication
of value mapping, which mainly
consists of customizing settings

02
must be maintained in the central
finance instance.

MDG is deployed on the

same instance
as the central finance system

replication is required for key and value

Consists of deploying MDG on the central

finance system. in which no query or

mapping. Nevertheless, master data

is still required to be replicated to the
source systems

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 Cost Object Mapping Framework
The main responsibility of cost object replication is to create
new cost objects and generate cost object mapping.

It checks whether any cost object

mapping scenario is defined - this
is the cost object to be replicated

The cost object is passed through

the mapping rule, if there is no
matched mapping rule defined,
the replication fails

If there is a matched mapping rule,

it will apply the mapping rule (i.e.
clear or derived from local
characteristic) and apply the MDG
mapping

The cost object and the cost object

assignment (mapping of cost
object from source-to target) will be
created.
See SAP Note 2180924 -
Supported scenarios in cost object mapping framework The FI/CO replication reads the
https://launchpad.support.sap.com/#/notes/2180924 cost object assignment, so as to
replace the cost object in the
posting document

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 AIF as Interface and Monitoring Tool
5

SAP Application Interface Framework (AIF) is a framework for interface

implementation and error monitoring, with a focus on business users.

It provides selection screen, based on different parameters (interface name,

document number, error message number, replication date, etc).

Central finance uses AIF to define 3 main interfaces for cost object replication,
FI/CO posting replication and CO internal posting replication.

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 Central Finance Iinterfaces

Replication of CO-internal postings:

FINS_CFIN_CO_CENTRAL_POSTING

Replication of cost objects:

FINS_CFIN_CO_OBJECT _A SSIGN

Replication of FI/CO postings:

FINS_CFIN_AC_DOC_GENERATE

Features of Function Module FINS_CFIN_CO_CENTRAL_POSTING:

https:// launchpad.support.sap.corn/# /notes/2103482

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Data Flows for Central Finance
6

These interfaces are implemented as part of AIF,

in which it enables monitoring and error
handling for replicated data. When the data is
passed to the central finance interface, it
passes through different steps, in particular
prepare, map, adjust, and post.

The central finance BAdl also provides

opportunities to enhance the logic of the
postings. The last step of the central
finance interfaces calls SAP standard
functions to create cost object, or posting FI
and CO documents
Any error occurring during the replication
(including the call of SAP standard
functions) is logged in Al F and needs to be
resolved.
It is imperative to remember that all SL T -
based replication in central finance passes
through AIF, and will also b e monitored inAIF.
Hence, AIF is the dedicated monitoring tool for
SLT based replication. The entire process is
triggered for SL T, b y activating the
configuration and starting the data
provisioning.
There are 3 runtime migration objects for the cost object, FI/CO posting, and CO internal posting in SL T.
These migration objects read the data from the source system and call central finance interfaces to
Whereas SL T -based replication is for real
replicate the data.
time replication, t h e initial load of accounting
(FI) and controlling documents (CO) uses a
Replication of FI/CO postings: FINS_CFIN_AC_DOC_GENERATE direct RFC connection to the source systems..
Replication of CO-internal postings: FINS_C FIN_CO_CENTRAL_POSTING The same data flow is also used for
the smoke test of cost object replication and
Replication of cost objects: FINS_CFIN_C O OBJECT _A SSIGN CO internal posting.

The central finance integration component, deployed in the source system, provides function modules to extract the FI/CO postings from the source systems. This is
based on configuration settings, which contain specific information about the relevant objects and also reconcile the initial load The initial load is started from the central
finance system. The first initial load step is to extract data from the source system into staging tables (CFIN_ACCxx) in the central finance system. Upon extraction, the
central finance system has all of the required initial load data for the posting. In a subsequent step, the data is posted from the staging tables into the central finance
interface.

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Real-Time Replication in Central Finance
Once FI/CO documents are
stored in the database, database
triggers are written into log
tables in the source system.
SAP SL T can collect data from the
posted documents in the source
system in real-time, and
feed it into the corresponding
interfaces that central finance
offers.
The replication of CO secondary
posting documents, relies on the
table COBK as a header
table and its sub-tables (such
as COEP).
For FI documents, the document
header table and its sub tables
(BKPF, BSEG, etc.) are not
sufficient. Some other information
needed for document posting is no
longer available once the document
is posted. However, to properly post
a document into the central finance
system, the information is required

That's why the information

needed for document posting is
The cleanup-program RFIN_CFIN_CLEANUP, which needs to stored in tables (with
CFI N_ACCHD being the header
be scheduled regularly (for example, once each month), can table). This information is replicated,
delete the temporary information from tables via the SAP LT replication server, to
the central finance system

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We will Provide Live Training For
SAP-S/4 HANA -2022Following
Finance Modules
SAP S/4 HANA Associate And Professional

SAP S/4 HANA Treasury And Risk Management

SAP-S/4 HANA Central Finance

SAP-S/4 HANA Cash Management Power By HANA

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SAP-S/4 HANA -2022Following
Manufacturing Modules
SAP S/4 HANA Sales

SAP S/4 HANA Source And Procurement

SAP-S/4 HANA Production Planning

SAP-S/4 HANA PM
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