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An End-to-End Tour of SAP Solutions to

Accelerate the Financial Close and Disclosure


Process
Elizabeth Milne
SAP
Agenda

Finance Overview

Accounting and Financial Close Process Overview


Accounting
Entity Close
Corporate Close

Reporting and Disclosure

Financial Close Governance

Financial Close Action Plan

Wrap-up

2016 SAP SE or an SAP affiliate company. All rights reserved. 1


Finance Overview
CFOs New Reality
Keeping Up with the Accelerating Pace of Business in a Digital World

Increasing complexity
of external conditions
Explosion of Big Data

Pressure to support
global growth
initiatives Millennial work style
enabled by networks
and mobility
Requirement to reduce
the cost of finance
Accelerated adoption of
technology innovations

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SAP Empowers CFOs
Covering All Business Areas Across All Roles

Chief Financial
SAP S/4HANA Finance - delivers functional completeness across all financial roles Officer

Head of Corporate Corporate Head of Finance Chief Compliance


VP of Finance
Reporting Treasurer Operations Officer

Treasury &
Financial Planning & Accounting & Finance Enterprise Risk &
Financial Risk
Analysis Financial Close Operations Compliance Management
Management
Strategy Development and Payments and Bank
Accounting Receivables Management Enterprise Risk Management
Translation Communications

Planning, Budgeting Cash and Liquidity Invoice Management Controls and Compliance
Entity Close
and Forecasting Management Management

Profitability and Cost Debt and Investment International Trade


Corporate Close Travel Management
Management Management Management

Monitoring and Reporting Reporting and Disclosure Financial Risk Management Real Estate Management Fraud Management

Financial Close Governance Commodity Risk Management Financial Shared Services Audit Management

* Note: SAP S/4HANA Finance was formerly known as SAP Simple Finance

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Accounting and Financial Closing Challenges in the Digital World
Governance, Process, and Technology Obstacles Can Hamper Finances Ability to Thrive

Governance Processes Technology

Complex and Dynamic Lack of Automation, No access to real-time


Organizations Standardization, and Collaboration information

Inconsistent master data No visibility or traceability


Effective Controls
of data

Bottlenecks due to lagging Insight Disparate systems with poor


Multiple Accounting Standards
integration

Quality Speed Efficiency Insight

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SAP Enables Accounting and Financial Close Processes
Bringing Higher Quality, Speed, Efficiency, and Insight to the Close to Disclose Cycle

ACCOUNTING
Efficiently support compliance with multiple accounting standards

ENTITY CLOSE
Automate and shorten the legal entity close cycle

CORPORATE CLOSE
Streamline the financial consolidation process and shorten reporting cycles

REPORTING AND DISCLOSURE


Access dynamic financial insight tailored to stakeholder requirements

FINANCIAL CLOSE GOVERNANCE


Manage processes and master data across organizations

61 %

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Accounting and Financial
Close Process Overview
Accounting and Financial Close Process Overview
Improve Efficiency, Compliance, and Insight While Reducing Cost

Accounting Entity Close


General Ledger Intercompany Reconciliation
Sub-Ledgers Account Reconciliation
Leasing Entity Close Management
Revenue Accounting
Real-time
Insight
Efficiency Financial Close Governance
and speed
Quality Process Controls
and governance
Master Data Governance
Reporting and Disclosure for Financials
Consolidation
Disclosure Management Corporate Close
Consolidation

Optimize
Financial Planning Accounting Plan to Action Treasury & Financial Finance Enterprise Risk &
& Analysis & Financial Close Risk Management Operations Compliance Management

2016 SAP SE or an SAP affiliate company. All rights reserved. 8


Accounting and Financial Close Solutions from SAP
Options for a Seamless Close to Disclose Process

Reporting and Financial Close


Accounting Entity Close Corporate Close Reporting and Financial Close
Accounting Entity Close Corporate Close Disclosure Governance
Disclosure Governance

SAP Accounting powered SAP Financial Closing SAP Business Planning SAP Business Intelligence
SAP Process Control
by SAP HANA cockpit and Consolidation (BI) solutions

SAP ERP Financials SAP Business Process SAP Financial SAP Disclosure SAP Master Data Govern-
General Ledger and Sub- Automation by Redwood Consolidation Management ance for Financial Data
Ledgers in SAP ERP

SAP Lease Administration Intercompany SAP Smart Business for


SAP Starter Kits SAP Cloud for Analytics
by Nakisa Reconciliation Financial Close

SAP Revenue Accounting SAP Intercompany


and Reporting

SAP Financial Information


Management

BlackLine Financial Close


Suite (partner solution)

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Accounting
Accounting Highlights
Efficiently Supports Compliance with Multiple Accounting Standards

Unified financial, statutory, and managerial accounting


into a single source of the truth

Significant reduction in reconciliation effort and batch jobs


resulting in lower costs

Advanced revenue accounting ensuring multi-GAAP


compliance with the most recent IFRS/FASB regulations

Robust tracking of leasing contract exposure

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Accounting Innovation SAP Accounting powered by SAP HANA
Next Generation Accounting Fully Leveraging SAP S/4HANA

One source for financial and Fast and flexible reporting Continuous intra-month processes
management accounting Self-service analytics Soft close better insight at any time
Real-time reporting without replication Hard close accelerated month-end
to a data warehouse closing tasks

Line item based and extensible Intuitive user experience


Not limited by totals or pre- Availability on multiple devices
configuration

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Innovation SAP Accounting powered by SAP HANA
The Universal Journal Providing a Single Version of the Truth

Public
Accounts Sector
Single repository of journal Payable
Joint
entries across multiple applications Fixed Accounts
Venture

without redundancy enables: Assets


General
Receivable
Ledger Custom
specific
Profitability

Instantaneous multidimensional reporting Material


Ledger
Mgmt.
Accounting
Analysis

without replicating data to a warehouse Universal


Easier extensibility across all dimensions Journal
Data stored only once eliminating need for
inefficient reconciliations
Process optimizations for an accelerated
financial close

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Entity Close
Entity Close Highlights
Automate and Shorten the Legal Entity Close Cycle

Achieve speed, quality, and efficiency by running a highly


automated end-to-end close for all group entities

Increase governance and compliance by standardizing


best closing practices

Leverage a powerful application to manage closings


across multiple systems, entities, and time zone

Increase the efficiency and reduce the cost of performing


intercompany reconciliation

Verify and certify the correctness of balance sheet


accounts across multiple systems

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SAP Financial Closing cockpit for a Seamless Entity Close
Perfect Planning, Execution, and Monitoring of the Entity Financial Close

Governance and Compliance


Define a global game plan for the entity close
Leverage it for multiple org units and closing cycles
Audit trail, logging of results, documentation
Closing Efficiency
Automated closing tasks, even in remote systems
Powerful, user-friendly application for manual tasks
Collaboration, notifications, and workflows
Transparency and Insight
Real-time insight into the closing status
Monitoring by subsidiaries and headquarters
Close analysis to identify strengths/weaknesses

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Corporate Close
Corporate Close Highlights
Streamline the Financial Consolidation Process and Shorten Reporting Cycles

Improve stakeholder confidence for both legal and


management reporting functionalities

Save time and money, providing one version of truth and


eliminate manual spreadsheets and data inconsistencies

Automate consolidation of multiple currencies and


reporting standards to reduce manual effort and errors

With a flexible data model, determine why financial events


occur, in addition to reporting them

Guide decision making with full financial visibility

2016 SAP SE or an SAP affiliate company. All rights reserved. 18


SAP Business Planning and Consolidation
Streamline Consolidation and Reporting Processes
Streamline consolidations
Use Microsoft Excel, web, and mobile UIs to meet the
needs of users in Finance and beyond
Automate adjustments, calculations, translations, and
manual processes for shorter consolidation cycles
Run legal, management, and what if scenarios for more
accurate financial analysis

Improve transparency
Guide contributors and drive consistency with configurable
business process flows
Provide a detailed audit trail of all data from source to
disclosure

Unify Planning and Consolidation


Reduce cost and increase productivity with a unified
planning and consolidations for business users
Available in versions for SAP NetWeaver and Microsoft
Power by SAP HANA* for instant insight
*sold separately
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Reporting and Disclosure
Reporting and Disclosure Highlights
Access Dynamic Financial Insight Tailored to Stakeholder Requirements

Analyze across any combination of dimensions to easily


investigate financial statements and KPIs

Monitor in real-time the progress, quality, and financial


results of the closing cycle to avoid bottlenecks

Use collaborative processes to make regulatory filings and


disclosures in less time at lower cost

Receive instant business insight anywhere with drill-down


from the highest to the lowest level of detail

Comprehensive selection of analytics to meet the needs


of varying finance and reporting requirements

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Reporting and Analysis
Options to Tailor Your Financial Insight for Role-Based Requirements

SAP S/4HANA Finance Embedded Analytics Supplementary Analytics

SAP Fiori apps: Strategic Corporate Wide View of the Business:


Analytical (SAP Smart Business Cockpits) SAP Digital Boardroom
Transactional (Task-Based Access)
Tile Based Data Exploration
Data Exploration, Visualization, and Reporting:
SAP BusinessObjects Business Intelligence
Real-time Operational Reports SAP Cloud for Analytics
Audit Reports
Select Regulatory Reports and Forms

SAP Business Planning and Consolidation, Regulatory Reporting and Publication:


Office- and Web-Based Reporting SAP Disclosure Management

On-premise Hybrid Cloud


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Embedded Analytics: SAP Smart Business Cockpits
Combining Predefined and Responsive Analytics with Transactional Follow Up

Role-based analytical insights


One company wide KPI repository
Based on SAP Virtual Data Models
Accessible from the Fiori Launchpad

2016 SAP SE or an SAP affiliate company. All rights reserved. 23


23
Supplementary: SAP Digital Boardroom
Analyzing Alternatives and Implications for the Agile Finance Team

Total Instant Simplified


transparency data-driven insights boardroom processes
Real-time view of complete Instantly access accurate information to Consistent consumption with
company situation address ad hoc questions extended availability
Comprehensive view on key Improve decision making with analysis of Reduce preparation time and
figures across divisions alternatives and implications offline discussion topics
Fosters trust between leaders Increase agility of decision making Focused collaboration to leverage
expert knowledge

2016 SAP SE or an SAP affiliate company. All rights reserved. 24


Financial Close Governance
Financial Close Governance Highlights
Manage Processes and Master Data Across Organizations

Provide higher quality financial master data management


and governance

Enhance efficiency and create consistent results across


your enterprise

Perform periodic risk assessments to determine scope and


test strategies

Ensure effectiveness of and confidence in internal controls


CRG International

Support decisions and promote accountability with insightful


analytics and sign-off

2016 SAP SE or an SAP affiliate company. All rights reserved. 26


Accounting and Financial Close Process Summary
Improve Efficiency, Compliance, and Insight While Reducing Cost

Accounting: Efficiently supports compliance with


multiple accounting standards

Entity Close: Automate and shorten the legal entity


close cycle Real-time
Insight
Efficiency
Corporate Close: Streamline the financial and speed

consolidation process and shorten reporting cycles Quality


and governance

Reporting and Disclosure: Access dynamic financial


insight tailored to stakeholder requirements

Financial Close Governance: Manage processes and


master data across organizations

2016 SAP SE or an SAP affiliate company. All rights reserved. 27


Your Financial Close Action Plan

Ensure consistent corporate master data


Vision Quick Wins Big Wins Post-Project Review

Automate internal control processes


Perform Create close Disclosure and
as-is review scorecard Reporting Continuous
Financial statement improvement
reporting app framework
Define vision and Account and
benefits intercompany Corporate Close Extend to planning,
reconciliation Renovate consolidation budgeting, and
app forecasting
Obtain executive
Entity Close
sponsorship Right-first-time close
Organize entity close,
Improved insight improve ERP apps
Change Management

Milestone 1 Milestone 2 Milestone 3


Completed project plan Immediate timetable reduction Vision achieved

2016 SAP SE or an SAP affiliate company. All rights reserved. 28


Your Financial Close Action Plan
Stage 1: Vision

Vision A successful fast financial close project requires:


A thorough diagnostic that clarifies areas of strength and weaknesses
Perform Covers the end-to-end process across all key dimensions
as-is review Timetables, organization, policy, processes, systems, quality, content
Benchmarks against internal and external performance
Benchmarks against best practices
Define vision and
benefits Key outcomes will include clearly identified project goals
Target timetables for legal and management reporting
Obtain executive Key areas for process improvement
sponsorship

Change Management

Milestone 1
Completed project plan

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Your Financial Close Action Plan
Stage 2: Quick Wins

Vision Quick Wins Create close scorecard to coach best and


worst performers
Perform Create close
Conduct peer-to-peer intercompany
as-is review scorecard
reconciliation process

Define vision and Account and Leverage data integration tools, validations,
benefits intercompany and controls for right-first-time close
reconciliation
In-house publishing of financial statements
Obtain executive
in XBRL
sponsorship Right-first-time close
Improved insight
Change Management

Milestone 1 Milestone 2
Completed project plan Immediate timetable reduction

2016 SAP SE or an SAP affiliate company. All rights reserved. 30


Your Financial Close Action Plan
Stage 3: Big Wins

Ensure consistent corporate master data


Vision Quick Wins Big Wins

Automate internal control processes


Perform Create close Disclosure and
as-is review scorecard Reporting
Financial statement
reporting app
Define vision and Account and
benefits intercompany Corporate Close
reconciliation Renovate consolidation
app
Obtain executive
Entity Close
sponsorship Right-first-time close
Organize entity close,
Improved insight improve ERP apps
Change Management

Milestone 1 Milestone 2 Milestone 3


Completed project plan Immediate timetable reduction Vision achieved

2016 SAP SE or an SAP affiliate company. All rights reserved. 31


Your Financial Close Action Plan
Stage 4: Post-Project Review

Ensure consistent corporate master data


Vision Quick Wins Big Wins Post-Project Review

Automate internal control processes


Perform Create close Disclosure and
as-is review scorecard Reporting Continuous
Financial statement improvement
reporting app framework
Define vision and Account and
benefits intercompany Corporate Close Extend to planning,
reconciliation Renovate consolidation budgeting, and
app forecasting
Obtain executive
Entity Close
sponsorship Right-first-time close
Organize entity close,
Improved insight improve ERP apps
Change Management

Milestone 1 Milestone 2 Milestone 3


Completed project plan Immediate timetable reduction Vision achieved

2016 SAP SE or an SAP affiliate company. All rights reserved. 32


Wrap-up
Where to Find More Information

S/4HANA Finance
For more information on SAPs accounting and financial close solutions:
www.sap.com/accounting

For more information on other parts of the SAP finance solution portfolio:
www.sap.com/finance

Sign up to the Finance Newsletter: www.sap.com/finance-newsletter

Birgit Starmanns, Elizabeth Milne, and James Fisher, Accelerated Financial Closing with SAP
(SAP PRESS, 2014).
www.sap-press.com/products/Accelerated-Financial-Closing-with-SAP.html

2016 SAP SE or an SAP affiliate company. All rights reserved. 34


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Summary: Accounting and Financial Close Solutions from SAP
Hurdling Obstacles with Quality, Speed, Efficiency, and Insight Enables Finance to Thrive

Governance
Simplifies complex governance with standardization, workflow, and proven management
of accounting and financial close processes trusted by 65,000+ companies

Processes
Provides massive process efficiencies to collaborate effectively and automate the
closing cycle with event-driven execution

Technology
Drives one common view of finance data with significant IT simplification that eliminates inefficient
reconciliations and removes boundaries between transactions and analytics

2016 SAP SE or an SAP affiliate company. All rights reserved. 36


Key Points to Take Home

A streamlined, efficient, and high-


quality financial close is a key
ingredient of financial excellence.

The dynamic regulatory landscape,


in conjunction with the demand from
management for ever-more timely
and accurate information, is a key
driver for a fast, high-quality financial
close.

Set your objectives, diagnose, and


benchmark. Implement quick wins,
then big wins. Seek long-term
sustainable processes and systems.

SAP provides a full suite of products


designed to make the closing
process faster, more accurate, and
less costly to execute.

2016 SAP SE or an SAP affiliate company. All rights reserved. 37


Thank you
Contact Information:
Elizabeth Milne
Product Marketing | Accounting and Financial Close | Enterprise Performance
Management
SAP
M +1 954.326.6101 I F +1.610.848.9887 I mailto:elizabeth.milne@sap.com
www.twitter.com/elizabethemilne
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