SFIN-Training Series

Simple Finance Overview

Objectives

 SAP S/4 HANA Overview

 Simple Finance Overview

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 S/4 HANA Overview

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Customer and Partner Adoption Figures and References show - SAP
Business Suite powered by SAP HANA has become Mainstream

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Evolution
SAP HANA 2014 2015
2013 SAP S/4 HANA
• Simplified Data Model
• New User Experience
2012 SAP Simple • Advance Processing
Finance Powered • Choice of Deployment
by SAP HANA
SAP Business
(SFIN 1.0)
Suite Powered by
• Instant Insight
HANA
SAP BW Powered • No aggregated & Index
• Real Time Business
2011 by HANA • OLAP & OLTP
• Single source of truth
• Real Time Analysis Together
SAP HANA • Real Time Reporting • Cloud Offerings
• In- Memory Platform

S4HANA
SAP Business Suite from R/2 to SAP ERP
Business Suite for HANA – The Next
Generation R/3

R/2

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1979 1992 2004 2015 5
SAP S/4HANA Innovations Roadmap 2015
Indirect GTM goes along the Delivery Roadmap

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SAP S/4HANA On-Premise Edition - Integration in a Hybrid World
Complementary Business Scenarios from SAP Solution Portfolio

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SAP S/4HANA Positioning for Midmarket
“SAP S/4HANA, edition for SAP Business All-in-One”

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SAP S/4HANA
A huge Business Opportunity - Simple to sell

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S/4 HANA – Simple to sell
Scenario comparison for SAP ERP – Required Licenses

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SAP S/4HANA
Unique value for net new customers

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SAP S/4HANA
Unique value for installed base customers

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SAP S/4HANA - SAP Simple Finance
The first available shipment within SAP S/4HANA

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Preview of SAP Simple Logistics

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 S/4 HANA AT A GLANCE

Business Value Deployment Options IT and Users

• Re-imagined Business Model • On Premise • Re-imagined User Experience
• Re-imagined Business Process • Managed Cloud • Re-imagined System Configuration
• Re-imagined Business Decisions • Public Cloud • Re-imagined Data Models

Lower TCO * Other Facts

• 10 x smaller data footprint • ERP, CRM, SLM ….in one system on HANA
• 7 x Higher throughput • No Locking / Parallelism
• 1800 x faster analytics and reporting • HCP Extensions
• 4 x less process Steps • Multi- Tenancy
• All Data – Social, text, Geo

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 Change Trends in Finance

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 Understanding Trends in Finance - CFO as corporate strategist
When Accenture and Oracle recently polled more than 900 finance 71 percent told us that they enjoy a significantly higher level of strategic
influence than they did three years ago

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Challenges, Features and Value Proposition
Challenges CFOs What SAP Simple Finance Value proposition
face offers

CFOs want their finance • Build on In-Memory Computing
departments to: • Built-in ability to use prediction,
• Become more strategic simulation, and analysis to
to the business evaluate the financial implications
• Support the drive for of strategic business options
constant innovation • One common view of financial and
• Improve decision operational data, to help ensure
makers’ “time to action” enterprise-wide consistency and
with real-time, reduce reconciliation time and
meaningful data errors
• Optimization of business
processes
• Real-time data across all financial
dimensions
• A beautiful user experience
• On-premise, hybrid, and cloud
deployment options and a non-
disruptive migration path
• Better business advice due to
more relevant and timely
insight
• Better corporate alignment and
agility due to direct end user
access to insight
• More effective management of
working capital and financial
risks
• Lower IT complexity
• Lower cost for manual report
generation and data
reconciliation
• Lower operational risks from
fraud and other noncompliance
activities

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 Simple Finance Overview

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SAP Simple Finance
SAP Simple Finance comprises 4 software products:
1. SAP Simple Finance add-on 2.0 based on EhP 7 for SAP ERP 6.0, SAP Net Weaver 7.4 and SAP HANA 1.0
2. SAP HANA Live 2.0 for SAP Simple Finance based on SAP HANA Live 1.0 for SAP ERP and SAP HANA 1.0
3. SAP Fiori 2.0 for SAP Simple Finance based on SAP NetWeaver Gateway 2.0 or SAP NetWaever 7.4
4. SAP Smart Business 2.0 for SAP Simple Finance based on the SAP Smart Business foundation component 1.0

Backend optional Frontend Server

SAP enhancement package 7 for SAP related HANA content
SAP Smart Business 2.0 for SAP
ERP 6.0 Simple Finance

SAP Smart Business foundation

related HANA content
exchange innovation add-on ► the installation of the SAP Simple1.0
component
SAP Simple Finance
Finance add-on exchanges the classic Financials applications of SAP ERP
Add-On 2.0
6.0 SAP HANA Live 2.0 SAP Fiori 2.0
for SAP Simple Finance
for SAP Simple Finance
VDM: Virtual Data Model
SAP HANA Live 1.0
SAP NW Gateway 2.0* or
SAP Net Weaver 7.4 for SAP ERP
SAP Net Weaver 7.4
VDM: Virtual Data Model

SAP HANA 1.0 any DB

* Requires in addition: UI add-on 1.0 for SAP enhancement package 3 for SAP Net Weaver 7.0 (Integration Services: All)

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Simple Finance …

SAP Accounting SAP Cash Management Integrated Business

powered by SAP HANA powered by SAP HANA Planning for Finance
Alternative in-memory New product for New capabilities and enhanced
functionality for ERP customers Group Cash Management integration for ERP and BPC

S4 HANA

SAP HANA Platform

Aligned Agile Predictive

Single Source of Truth Real time processes Dynamic Planning and
Analysis

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Simple Finance ….
Instant Insight
The new principle of ONE
Universal Journal Entry
One Chart of Account
Central Finance deployment
Leverage soft close
Better insight within the period
Accelerate hard close
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Intuitive User Experience Non-disruptive and Flexible
New look and feel with Fiori Non-disruptive
Traditional accounting transactions Migration Path
Analytical Accounting Apps Compatibility Views
Intuitive drill down reporting Flexibility
Balance Sheet and P&L Reporting Journal Entry extensibility
Flexible Add-on Postings
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Intuitive User Experience

“ Personalized information for end users with granular drill down

Business Intelligence Renewed Managerial Roles

” Renewed Transactional Roles

SAP Analysis for Office Chief Financial Officer General ledger accountant
SAP Lumira Financial close manager Accounts receivable accountant
SAP Business Explorer Cash manager Accounts payable accountant
SAP Design Studio Receivables manager Collections specialist
Payables manager Dispute specialist
Finance for managers
Real Estate manager
(planned)

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Value Scenarios of SAP Simple Finance

“ Real-time analytics enabling real-time processes

Analyze Plan Transact

” Centralize Finance

Real-time financial and operational reporting

Harmonized internal and external reporting
Group reporting in multi-ERP and M&A situations
Flexible reporting in matrix organizations
Centralized process execution

Close Books in a Day

Task acceleration
Plan Dynamically
Integrated business
$ Optimize Working Capital
Group cash management
Ensure Compliance
Fraud detection and
and automation planning Working capital analytics prevention
Intra-period Predictive forecasting Continuous cash Audit management
reconciliation Budget management collections
Soft close and (planned) Invoice and discount
simulation (planned) optimization

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Central Finance for Heterogeneous Landscape

“ Non-disruptive step towards system consolidation

SAP Shared Service Framework (optional)

” 5 Centralized process
execution as shared
service
SAP HANA Platform
Transactional and Analytical Solutions 4 Dynamic and complex
SAP Accounting, Cash mgmt., EPM, GRC, BI, etc. matrix organizations

SLT Replication Server

3 Real-time reporting
from operational data
Real-time Real-time
Add

Legacy ERP Legacy ERP Legacy ERP Legacy ERP

Remove

1 Mergers, acquisitions, 2 Businesses cutting across

divestitures multiple ERP systems

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Closing Books in a Day

“ From monthly to weekly or daily close with dynamic simulation

Duration of month end close

in workdays
”
New key capabilities
Elimination or acceleration of batch jobs
Streamlined intra-period reconciliation
Harmonization of internal and external accounting
Line item drill down for faster root cause analysis

>20 Business benefits

More up-to-date managerial reporting
Enablement of soft close and intra-period simulation
Lower cost of close and avoidance of peak activities
3
<1
Laggards Best-in- Target
Class
Source: SAP Benchmarking Services

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Dynamic Planning with Integrated Business Planning

“ Connecting departmental plans in real-time to a group plan

Strategic Targets
”
Sales Business benefits
Shorter planning cycles
Revenue
Better educated target setting

Financial Statement
Higher accuracy of forecasts

Liquidity
Supply Chain End-to-end scenario simulations
Lower cost of budgeting process

HR Cost

Cap Ex

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Integrated Business Planning with SAP Simple Finance

“ Convergence of SAP ERP and SAP Business Planning (BPC)

Predictive Analysis
Key capabilities ”
Single planning solution with strengths of
current solutions
Business Planning
Real-time access to master and transactional
data for modeling and variance analysis
Accounting Flexible drill-down on drivers of profitability
including customer, product, geography and
channel

Pre-built starter content Identification of trends and forecasts using

predictive analysis
Seamless integration of planning screens
into ERP workflows
End-to-end simulation capabilities
SAP HANA Platform Pre-built planning models for accelerated
adoption

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SAP Cash Management

“ Next generation cash management for consolidated cash operations

”
Key capabilities
Global bank balances and cash positions using
data also from non-SAP systems
Cockpit for Cash Managers to monitor critical
KPI’s in real-time
Integrated liquidity forecasting with multi-
dimensional cash flow analysis (planned)
Central Bank Account Management including
overdraft limit analysis, bank risk analysis,
signatory management and workflow support

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Upgrade Path and Plan

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Migration Phases
• Training on G/L in SAP Accounting (*)
• (Small) blueprint for G/L configuration (*)
Preparation
• Reconciliation, period-end close activities, reporting snap shots for comparison

• Installation of the Financials Add-On

Installation of • Creation of back-up tables
Financials • Reconciliation & Checks
Add-on

• Data transfer from classic G/L to G/L in SAP Accounting

Data Transfer * • Reconciliation & checks after data transfer

• Migration of financial data (for GL/AP/AR/CO) – due to dropped totals tables, etc.
Data Migration • Reconciliation & checks after migration

• Cold partition for old index tables

Post • Activation of GL of SAP Accounting and configuration for asset accounting
Processing • Reconciliation / comparison of financial KPI‘s
• Process tests

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Summary Change

• Removal of indices / total / and line item based linkage

Architecture • Single Line Item Table - ACDOCA

• Compatibility Views

• One line Item table with all dimensions

• Immediate profitability Character tics derivations

Unified Journal Entry • Reduction of memory footprint – no redundancy

• Fast Multi-dimensional Reporting
• One Single Extractor

• Compatibility Views to safeguard custom ABAP

Non Disruptiveness
• Via this views the select is redirected to the new persistency in HANA
• Customer ABAP programs that read directly “COEP” via select statements continue to run as before
• Central Journal Approach

• Technical Changes in tables

• Compatibility Views for total Tables

General Ledger
• Unified Master Data
• Appendix Ledger
• Ledger & Currency Settings

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Summary Changes

• CO Actual Items in ACDOCA

Controlling
• Non Actual items stored in COEP
• No time based dependencies in cost element
• Faster Period close

• New Asset Accounting Mandatory

• Asset Accounting Based on Universal Journal entry – No Redundant Data
Asset Accounting •
•
Depreciation Postings happen with all details (individual assets)
Faster Depreciation postings due to new structure
• Changes in Asset Data Conversion

• Account based Profitability Analysis is default solution

Profitability Analysis
• Account Based profitability analysis is based on Universal Journal Entry
• No Changes in costing based COPA
• Cost of Goods sold component wise and Price variance category wise available from 1.0

Material Ledger
• Usage of Material ledger for parallel currencies and parallel valuation purpose based on ACDOCA
• No change in usage of Material Ledger for Actual Costing Purpose

• Real Time BI like operational Reporting

• Hanalive using Lumira & Office Analysis as front end

Reporting & UX • Fiori based transactions

• Embedded BW – No Replication

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 Capability
• Capabilities @ IDC
– 40 + Professionals trained in SFIN
– Demo Systems, training, Proof of Concepts
– SFIN Migration Expertise
– Delivered 10+ SFIN trainings

• Capabilities @ Global
– Innovation center at Kornberg
– Demos System and Proof of Concepts
– 400 + professionals trained in Simple Finance

• Projects
– 5 In-flight simple finance Projects
– 25 + Simple Finance projects in discussion (5 of it on Central Journal), closely linked to Suite on HANA implementation.

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 Training Calendar
Delivery
Mode: Presentation Presentation and System Mock-Up Presentation and System Demo Presentation
Simple Finance Overview Basis – Installation / Migration Configuration / UX / Delta Features Functional Migration
Main Durati Durati Duratio
Topics Presenter Date Time Topics Presenter Date Topics Presenter Date Topics Presenter Date Time Duration
Areas on on n Time
SAP Simple
Finance Varsha
Overview Shrikhande 15-Jun 2 hr 3:00 PM SFIN 1503 Technical Execution Karthic 16-Jun 1.5 2:00 PM SAP Accounting Migration Overview Deepak 18-Jun 3:00 PM
Restrictions and
2
SFIN Add-Ons and Bolt-Ons Janani 16-Jun 1.5 3.3 New Data Model Vivek 16-Jun 0.5 11.30 AM Compatibility Deepak 18-Jun
Murali / Functional
D General Ledger Jetho 16-Jun 1 12 Prerequisites Jetho 18-Jun
e LUNCH BREAK Deep Dive Migration Jetho 18-Jun
t
i Chiranjit /
a Profitability Analysis Deepak 16-Jun 1 2:00 PM
l
s Shripad /
Period End Closing Jetho 16-Jun 1 3
Sandeep /
New Asset Accounting Vivek 16-Jun 1.5 4

Reporting and User Jayant /

Experience in Simple Finance Jetho 17-Jun 2 2:00 PM
SAP Integrated Planning for Krish /
Finance Varsha 17-Jun 1.5 4
Naresh /
Duration is in hours SAP Cash Management Ravi 17-Jun 1 5.3
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