SAP S/4HANA 1709

What‘s new in Central Finance?

Christoph Ernst, Michel Haesendonckx, SAP
October, 2017

PUBLIC
Disclaimer

The information in this presentation is confidential and proprietary to SAP and may not be disclosed without the permission of SAP.
Except for your obligation to protect confidential information, this presentation is not subject to your license agreement or any other service
or subscription agreement with SAP. SAP has no obligation to pursue any course of business outlined in this presentation or any related
document, or to develop or release any functionality mentioned therein.
This presentation, or any related document and SAP's strategy and possible future developments, products and or platforms directions and
functionality are all subject to change and may be changed by SAP at any time for any reason without notice. The information in this
presentation is not a commitment, promise or legal obligation to deliver any material, code or functionality. This presentation is provided
without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a
particular purpose, or non-infringement. This presentation is for informational purposes and may not be incorporated into a contract. SAP
assumes no responsibility for errors or omissions in this presentation, except if such damages were caused by SAP’s intentional or gross
negligence.
All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from
expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates,
and they should not be relied upon in making purchasing decisions.

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 2

Agenda

Introduction Accounting and Financial Close

▪ Information resources ▪ Fiori
▪ Deployment options/Cloud offerings ▪ Subsequent introduction of document splitting
▪ SAP S/4HANA Financial Closing cockpit
Central Finance
▪ SAP S/4HANA for advanced compliance reporting
▪ Fiori
▪ Real time consolidation
▪ Central AP/AR management
▪ Enhanced VAT/TAX Configuration check
Treasury Management
▪ CO-PA support
▪ Fiori
▪ Third party interfaces
▪ Innovations of Core Treasury
▪ Value-added cloud services
Financial Planning & Analysis ▪ SAP Cash Management innovations
▪ Fiori
▪ Profitability Analysis
Financial Operations
▪ Planning Content
▪ Fiori
▪ Material Ledger
▪ Integration with Business networks
▪ Semantic Tagging
▪ Value-added cloud services
▪ Flexible Hierarchies
▪ SAP Shared Service Framework
▪ Value-added cloud services

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 3

Fiori
Fiori – Drill-Back to Source Document

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 5

Fiori – Drill-Back to Source Document

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 6

Fiori – Drill-Back to Source Document

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 7

Fiori – Drill-Back to Source Document

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 8

Central Receivables/Payables Management
 Open item management in Central Finance

Open items are replicated into Central Finance. To avoid duplication of effort to pay/clear, there are the following options:

Local Central Finance

Replicate open item and automatically/technically clear in Not suitable for central reporting or central processing (since
SLT Central Finance clearing status not correct)
Open item Open item
• Available as of 1503
Tech • Continued open item management in source system
Clearing
Cleared

Local Centralization of finance operations reporting and central

Central Finance Replicate open item and clearing status in Central process orchestration
SLT Finance
• A/R and A/P reporting (cross-system view of customer
Open item Other*
Open item • Available as of 1605 or vendor account)
SLT • Continued open item management in source system • Central dispute management, collections worklist and
Clearing Clearing
Other* • For restrictions and further information, please credit evaluation scenarios
see note 2292043 • Shared services and invoice management scenarios

Local Central Finance Replicate open item and automatically/technically clear in Similar to existing ALE scenarios, these are customer-
local system specific scenarios where consistency in certain local
SLT • Centralized open item management in Central logistics processes must be determined in a case-by-
Open item Open item case analysis
Finance system
Tech • No Central Finance-specific technique for posting
Clearing SAP S/4HANA 1709
Cleared back to the source systems (project solutions based
on existing scenarios) *ALE, RFC, other
© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC
Released with restrictions 10
 Central process execution for AP / AR processes

Central Finance
Business Values
Credit, Collections, Disputes
Reducing the number of external bank
Cash Application
accounts / fees

Central Payments Limit credit charges in case of overdraft

Central Internal Payment
ERP BANKS
Central External Payment
Bundle external payments and save charges
Open Item Open Item Central Incoming Payment on cross border payments

Open items technically

cleared SAP HANA Centralize payment knowledge and optimize
process in shared service center
Real status of open item (including payments and bank statements)
tracked in Central Finance system Use SAP Standard interface for uploading
Bank account management maintained in CF system (optional SAP MDG), bank statements to a central platform
when using new SAP Cash Management

HANA optimization of payment proposal generation Monitoring of bank communications and

transactions
All open item related processes must be executed in Central Finance
instance as well (example: dunning, collections, disputes, cash
application)

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 11

 Released with restrictions – what does that mean?

SAP releases Central Payments / Central Finance capabilities in SAP S/4HANA OP 1709 with the status “Released with
Restrictions”

• Functional Restrictions

• Tax-related restrictions (VAT and Withholding Tax)

when paying centrally, tax reporting (for VAT and Withholding Tax can only be done in the Central System)
not all reports (and country variants) are supported

We still use Note 2346233 to limit access / document restrictions and ensure customer accepts limitations

Customer can use the scenario productively after they have completely tested all relevant process variants and scenario

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 12

 Limitations associated with the Central Payments scenarios
1610 Pilot Release Limitations for central payment
scenarios
Logistics processes in source system that depend on actual clearing
status of invoices in the source system may need to be modified:
with the technical clearing of the documents in the source system,
AP and AR reports in the source system do not indicate the actual
clearing status.
Payment request (and down payment request) has to be created in
the Central Finance system in order to apply it to the central
payment.
Central handling of SEPA Direct Debit is not automated because
mandates are not replicated and synchronized.
Credit card sales for customers
One-time-account postings (customer and vendor)
The legacy open items that you have in the source system before
switching to central payment have to be paid and cleared in the
source system.
*Always consult SAP Note 2346233 for updated information regarding the functional limitations of centralizing payments.
© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC
1709 Improvements for central payment scenarios
No changes planned in standard Central Finance product.
In implementation projects, ALE scenarios can be built to push
status back to source system (not recommended). Logistics
process can be modified to query Central Finance system.
Customer can extend replication to include these items in their
implementation project; standard solution is not included in 1709,
but remains a roadmap topic.
Mandate replication and synchronization supported. If mandate
created in local logistics process, it will be replicated to central
system; if mandate is created in central system, it could be
replicated back to local in ALE scenario.
Credit Card sales will work if settlement run is triggered from the
local system
One-time vendor / customer postings working
No change planned
13
Enhanced VAT/TAX Configuration Check
(SAP S/4HANA 1709 FPS0)
Activate VAT Configuration Check for Company Codes

It is possible to activate an enhanced check

for tax related postings

Activation per combination of

Source System and Source Company Code

With Central Payments this check is

mandatory!

Prerequisite:
SLT real-time replication of source system
customizing (SAP Note 2494127)

Caution:
Central VAT and Withholding Tax reporting is not
possible for all cases -> see documentation!
not all reports (and country variants) are supported
© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 15
Tax Customizing Consistency Check – Error Situations (Examples)

Tax type does not match in source and target

Indicator "Not deductible" does not match in source and target

Activation status of plants abroad does not match in source and target

Indicator "Tax Base is Net Value" does not match in source and target

Indicator "EU Country" does not match in source and target

Reporting country does not match in source and target

All Error Messages are defined in Message Class FINS_CFIN_BC_V

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 16

Tax Customizing Consistency Check – SLT Replicated Content

HANA Enterprise Cloud

HANA Enterprise Cloud

SAP MDG
Existing Master Data
Governance Tool
SAP S/4HANA – Central Finance

ERP

Error
Central Finance Business
FI / CO FI/CO Postings Accounting Interface Mapping
correction
Document handling

Real-time replication with

Tax Customizing Consistency Check
SAP Landscape (after Mapping)
Transformation
Replication Server SAP ERP

T000F FINS_CFIN_T000F T000F

T001
Table to Table FINS_CFIN_T001 T001
T005 FINS_CFIN_T005 T005
T007A FINS_CFIN_T007A T007A Universal Journal
T007B FINS_CFIN_T007B T007B Entry
TTXD FINS_CFIN_TTXD TTXD
SAP HANA

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 17

CO-PA Toolset
CO-PA Toolset

Today a replication from costing-based CO-PA in a SAP ERP source system (ECC or S/4) into
(account-based) “Profitability in SAP S/4HANA ” in the Central Finance is not supported out-of-the-
box.

A standard replication as part of the Central Finance set of enabling capabilities is a planned
roadmap item.

In the interim, with SAP S/4HANA 1709, we provide a tool-set for such replication as part of a
custom implementation project.

The tool-set includes:

• CO-PA mapping tool

• Enhanced replication

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 19

Characteristics Mapping

Source Central
FI Doc FI Doc
Universal Journal`
CO Doc Document Replication
Characteristics
CO Doc

NAME_VALUE_TABLE
Customizing
Fieldname Value NAME_VALUE_TABLE
New PA segment
CE4
Fieldname Value number
Characteristics
Mapping Rebuild CE4 structure

Convert to name-value table

CE4XXXX

Semantically identical characteristics can

have different names in the different
systems

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 20

Third-Party System Connection to Central Finance
Solution Overview
SAP delivers: Data
Extracti
Quality Structure Data Transac
Key/
Value
Error Acctng.
Check Mapping Integrity Control Handlng Docmnt
▪ Staging Area
on Mapping

▪ Mass Data Transfer Tool (SLT) Customer / Partner SAP

▪ CFIN specific posting interface

Transfer SAP S/4HANA
Non SAP ERP
Layer CFIN
Partner delivers: Transfer Inbound
AIF

▪ Connection to 3rd Party System Programm Mapping 3rd

pty
Enrich /
Error
Correcti
▪ Structure Mapping to CFIN Posting *)
itf
on
Interface
Source Staging
Usage of transfer layer ensures: *)
ACDOCA
▪ Clear separation of responsibilities
▪ Standard tools for monitoring (AIF)

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 21