4HANA Advanced Financial Closing PDF

Intelligent Accounting and Financial Close (AFC)
December 2018
PUBLIC
Legal Disclaimer
The information in this presentation is confidential and proprietary to SAP and may not be disclosed without the permission of SAP. 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 document or any related presentation, or to develop or release any functionality mentioned
therein. This document, or any related presentation 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 on this
document is not a commitment, promise or legal obligation to deliver any material, code or functionality. This document 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 noninfringement. This document is for informational purposes and may not be incorporated into a contract. SAP assumes no
responsibility for errors or omissions in this document, and shall have no liability for damages of any kind including without limitation direct,
special, indirect, or consequential damages that may result from the use of this document. This limitation shall not apply in cases of intent 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.
© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 2

Customer
Intelligent Accounting and Financial Close: overview
Embedded Automation, Analytics, Compliance, ML and end2end Processes...
Financial
Entity Close Group Close
Financial Record-to-
Accounting Reporting Report
…provided as a Service

Customer
2018 update on new solutions in the area of AFC (and beyond)
SAP S/4HANA (Cloud) for Advanced Financial Close
SAP S/4HANA (Cloud) for Accrual Management
SAP S/4HANA (Cloud) for Group Reporting
SAP S/4HANA (Cloud) for Predictive Accounting and Closing
SAP S/4HANA (Cloud) for Goods and Invoice Receipt Reconciliation

Customer
Intelligent Accounting and Financial Close: update 2018
GR/IR
Reconciliation
Prediction
Advanced
Accrual
Compliance
Management
Reporting
Advanced Group Self-service
Financial Reporting Tax Audit
Closing
Financial

Customer
Intelligent Accounting and Financial Close: Automation
Closing
SAP S/4HANA
for Advanced
Fin. Closing
Financial
Fast, reliable,
low touch Close

Customer
Intelligent Accounting and Financial Close: Automation
Closing, Group Reporting
SAP S/4HANA SAP S/4HANA

for Advanced for Group
Fin. Closing Reporting
Financial
Fast, reliable, Eliminate or

low touch Close continuously drive
group reporting tasks

Customer
SAP S/4HANA Continuous Accounting and Group Reporting
Cons. Calculations
Elimination
Intercompany
Traditional
Currency Final report
Group
Data upload
Reporting
Period -2 -1 +1 +3 +5 +10
Consolidation Final report

Continuous accounting calculations
(Intercompany, currency, validation, running simulations) Elimination SAP S/4HANA
Continuous
Period -2 -1 +1 +3 +5 +10
Accounting and
Group Reporting
Period end Potential time saved to
do value-added tasks

Customer
SAP S/4HANA Group Reporting: in the Cloud

Customer
Consolidation in S/4HANA
Simplification of Structures in S/4HANA Finance
General Ledger
Profit Amount Amount Amount

Ledger Company Account …
Center 1 2 3
Profitability Analysis Reporting Profitability Controlling Regulatory
Operating Market
…
Concern Segment
Controlling
Controlling Cost Amount Amount Coding

AGGREGATION on the fly
…
Area Element 1 2 Block
Asset Accounting
ENTITY ACCOUNT DISTRIB. PRODUCT CUSTOMER
Fixed
Company …
Asset
Inventory
„Universal Journal“
Company Material …

Customer
Simplification for Group Reporting
Typical landscape today Target landscape
Consolidation Tool
SAP S/4HANA
Consolidation w/ real-time access

Data Warehouse &
ETL-Tools
Local Accounting
SAP Non-SAP
Systems Systems

Customer
What are the advantages of real-time access?
Data Quality Speed Transparency
Postings can be checked Necessary adjustments can be Fully enabled Drill-through from
continuously against central done locally and results are consolidation to the line-items of
validation rules provided immediately for the entity (instead of
consolidation transformation in multiple
Shared Master Data and Rules systems)
for local and group closing Certain consolidation steps can
be performed before the „Single Source of Truth“
consolidation (e.g. currency
translation) Consolidation with free-of-choice
fields of the source system

Customer
Instant Data Insight
Integrated accounting (operational) and consolidation (group ) reporting

Customer
Data Structure
Contains all records created by consolidation application + Core Fields

reported financial data for non S/4HANA-companies
Additional fields to select / deselect for
different data versions to separate plan / actuals / forecast / ...
processing in consolidation
(=subset of ACDOCA fields)
ACDOCU
ACDOCA ACDOCP
Contains Actuals reported financial Contains Plan reported financial data

data for S/4HANA-companies for S/4HANA-companies

Customer
Intelligent Accounting and Financial Close: Analytics
Overview pages, Simulation and Prediction
Simulation
Overview
Pages Prediction
Financial
Embedded, Extended reach

actionable of Accounting
Analytics

Customer
SAP Leonardo Innovations
Changing the world of Finance by adding intelligence to applications
sum sum
TOP-DOWN Prediction
Time series algorithm on
historic data in order to predict
future values considering trend,
cycles and/or fluctuation
BOTTOM-UP Prediction Line item Predict

Line item
Predictive Accounting on the
basis of predicted documents
being part of an individual
Predictive Predictive
business process and its Sales Order
Goods Issue Invoice
document flow

Customer
Financial insight into processes not yet GAAP relevant –
towards Predictive Close
Sales Order
Goods Issue Invoice
Predictive Pred. Overhead

CoGS Split Calculation
Pred. Revenue Pred. Revenue

Recognition Recognition
Pred. Profitability
Analysis

Customer
Predictive Accounting vision
 All KPIs based on a single source

 Fully consistent set of key figures
 Audit proof explanation of reported results
 Extend the traditional reach of accounting
beyond GAAPs

Customer
2 major Financials innovations enabling Predictive Accounting
Universal Journal Extension ledgers

Customer
Origin of predictive and combined KPIs
Prediction
Group

Customer
Predictive KPIs – composed from several building blocks
LAB
PREVIEW
Second quarter EBT prediction as of June 17th
Amount in T€
50.000,00
40.000,00
30.000,00
20.000,00
10.000,00
0,00 Building
Actuals Costs & Recurring Extraordinary Closing (e.g., tbd EBT blocks
revenues from entries (e.g. effects currency prediction
running depreciation) remeasurement)
operations

Customer
Predictive KPIs – composed from several building blocks
LAB
PREVIEW

Customer
Predictive Accounting: Management Foresight in Accounting Language
Challenge:
Important KPIs in Accounting have to be predicted during
the months/quarter/year. The more precise they are the
higher the credibility in the Accounting capabilities.
Solution:
Information yet in the System but not GAAP-relevant, like
Sales Order Entries, is automatically translated into
Accounting language on the basis of line-items.
In combination with Learnings from the past the overall KPI
(like EBIT) is predicted – constantly without any data
extraction or specific run.
Value:
As a result, Management increases the ability to foresee
trends, take the right decisions on the basis of continuous,
precise information flow and thus steer the company on an
even better basis.
Customer
Customer
Customer
SAP S/4HANA Cloud 1802 – Incoming Orders reporting
Sales Order
Goods Issue Invoice
Predictive Pred. Overhead

CoGS Split Calculation
Pred. Revenue Pred. Revenue

Recognition Recognition
Incoming Orders
Reporting

Customer
SAP S/4HANA Cloud 1802 – Incoming Orders reporting

Customer
Intelligent Accounting and Financial Close: Compliance
Periodic Tax Reporting, Self-service Tax Audit
Advanced
Self-service
Compliance
Tax Audit
Reporting
Financial
Periodic legal Intelligent

(tax) reporting recommendations
and predictions

Customer
SAP Tax Compliance at a glance
1. Connect data sources SAP Non-SAP
2. Manage / Optimize Checks
Examples:
Check Master data related checks

Repository
Ttransaction data related checks
Special checks like Chain transactions
4. Take corrective actions
Manage Tasks/ 3. Receive / validate exceptions

Collaborate/
Status
Routing
TM/IA/BU/IT Notifications Exceptions – TM/IA/BU/IT Check Source

integrated Tax Compliance hits System
dashboard

Customer
Example: SAP Tax Compliance
Intelligent and automated tax controls through Machine Learning and Prediction
▪ Automatically detect tax deviations
▪ Leverage historical information and

ML to automatically classify work
items and propose next steps
▪ Gain reliable insights into tax

compliance status and remediation
▪ Reduce the risks and costs of

inaccurate calculations and liability
from noncompliance

Customer
Intelligent Accounting and Financial Close: Machine Learning
Goods and Invoice Receipt Reconciliation and Self-service Tax Audit
GR/IR Self-service
Reconciliation Tax Audit
Financial
Intelligent Intelligent
recommendations recommendations
and predictions

Customer
Business Background
1) What? 2) Why?
▪ The GR/IR account reconciliation process is an exception ▪ Improve the accuracy of the financial statement
handling process for all purchase order items with – Reduction of write-offs leads to a higher accuracy for cost and inventory valuation
differences between goods receipts and invoice receipts. as well as a better P&L result
– Increased accuracy of supplier liabilities
▪ The root cause for the difference needs to be solved – Avoid potential fraud and errors of suppliers
usually through collaboration of Accounting, Buying
Center, Logistics and supplier or the difference is written ▪ Compliance with corporate rules requires maintenance of the
off. GR/IR accounts (SOX compliance)
3) Customer Pain Points 4) Benefits of our solution

▪ High manual effort ▪ Embedded analytics in S/4HANA Cloud enabling powerful reporting
– for creating reports capabilities
– for gathering all relevant information ▪ Real-time insights into all relevant information based on a simple
– for investigating the root cause and solving the issue and flexible Fiori UI with integrated collaboration features
– for communicating between departments ▪ Keeping track of process information enables process analysis and
▪ The high manual effort delays the period-end closing. optimization
▪ Higher efficiency through intelligent recommendations by a Machine
Learning service
▪ Faster period-end closing through less manual effort and real-time
data analysis

Customer
ML@GR/IR Account Reconciliation: Intelligent Recommendations
The goal of the ML service is to learn from decisions taken in the past, to apply the learned knowledge to the new
business situation and to make recommendations for the next meaningful steps for each purchase order item.
The recommendations from the algorithm are seamlessly integrated in the UI.
Yes Automatic
GR equals
IR Clearing
Goods and Invoice Receipts

posted to a Purchase Order No
Recommend the best next action based on

similar decisions made in the past
Recommendation
Service
Automatic GR/IR Automatic

Write-Off
Clearing Postings Clearing
Investigation & Decision
Customer
From manual to automated processing
The quality of the recommendations of the ML service depends on the size of the training set. With the
availability of more and more historic data of user actions, the ML service gets better over time and the
recommendations of the machine can be translated in automated actions.
Phase 1 Phase 2 Phase 3 (Vision)

Manual Processing Processing with ML support Automated Processing
▪ The system logs the actions of the ▪ The training data is used to train ▪ As soon as the ML service is
end users. Thereby a set of training the ML service. considered to be trained well
data for the ML service is created. ▪ The recommendations of the ML enough with the available historic
service support the end user for data, the recommendations of
taking faster and better the ML service can be taken over
decisions. automatically. So more and more
manual steps can be replaced by
▪ The ML service gets better with automated actions of the
the number of processed items. machine.

Customer
Overview Page with relevant KPI‘s

Customer
Analytical List Page with drill-down and insight-to-action capabilities
We present the important factors for decision making in the

terminology of the typical end-user. So the end-user can
immediately grasp the situation and knows what to look for.

Customer
The user can also filter all purchase order items
based on the smart facts, before he delves into the
details of single purchase order items for further
processing.

Customer
The ML algorithm indicates, what might be a
meaningful next step and how important it is. We
provide recommendations for process status, priority
as well as root cause.

Customer
Customer
Intelligent Accounting and Financial Close: end-to-end process design:
pre processes, parallel processes, data capturing and external submission
Pre-/Parallel-/Follow-on Processes
Exception Documentation
Request Approval Handling
Financial Financial Electronic

Pre processes Entity Close Group Close
Accounting Reporting Submission
Automatic data
transfer to
authorities
Spreadsheet myTickets-APP
template upload data capturing
Customer
Intelligent Accounting and Financial Close: end-to-end process design:
pre processes, parallel processes, data capturing and external submission
Pre-/Parallel-/Follow-on Processes
Request Approval
Exception Documentation
Supported by SAP Shared Service
Handling Framework and SAP Process Control
Financial Financial Electronic

Pre processes Entity Close Group Close
Accounting Reporting Submission
Supported by
SAP Advanced
Compliance
Reporting
Spreadsheet myTickets-APP
template upload data capturing
Customer
Intelligent Accounting and Financial Close: overview
Embedded Automation, Analytics, Compliance, ML and end2end Processes...
Financial
…provided as a Service

Customer
The Best Run SAP
Contact your SAP Account Executive
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP SE or an SAP affiliate company.
The information contained herein may be changed without prior notice. Some software products marketed by SAP SE and its distributors contain proprietary software components
of other software vendors. National product specifications may vary.
These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or warranty of any kind, and SAP or its affiliated
companies shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP or SAP affiliate company products and services are those that are
set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty.
In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release
any functionality mentioned therein. This document, or any related presentation, and SAP SE’s or its affiliated companies’ strategy and possible future developments, products,
and/or platform directions and functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any time for any reason without notice. The
information in this document is not a commitment, promise, or legal obligation to deliver any material, code, or functionality. 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,
and they should not be relied upon in making purchasing decisions.
SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE (or an SAP affiliate company)
in Germany and other countries. All other product and service names mentioned are the trademarks of their respective companies.
See http://global.sap.com/corporate-en/legal/copyright/index.epx for additional trademark information and notices.

4HANA Advanced Financial Closing PDF

Загружено:

Сведения о документе

Оригинальное название

Авторское право

Доступные форматы

Поделиться этим документом

Поделиться или встроить документ

Параметры публикации

Этот документ был вам полезен?

Это неприемлемый материал?

Авторское право:

Доступные форматы

4HANA Advanced Financial Closing PDF

Загружено:

Авторское право:

Доступные форматы

Intelligent Accounting and Financial Close (AFC)

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 2

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 3

SAP S/4HANA (Cloud) for Advanced Financial Close

SAP S/4HANA (Cloud) for Accrual Management

SAP S/4HANA (Cloud) for Group Reporting

SAP S/4HANA (Cloud) for Predictive Accounting and Closing

SAP S/4HANA (Cloud) for Goods and Invoice Receipt Reconciliation

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 4

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 5

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 6

SAP S/4HANA SAP S/4HANA

Fast, reliable, Eliminate or

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 7

Consolidation Final report

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 8

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 9

Profit Amount Amount Amount

Profitability Analysis Reporting Profitability Controlling Regulatory

Controlling Cost Amount Amount Coding

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 11

Typical landscape today Target landscape

Consolidation w/ real-time access

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 12

Data Quality Speed Transparency

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 13

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 14

Contains all records created by consolidation application + Core Fields

Contains Actuals reported financial Contains Plan reported financial data

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 15

Embedded, Extended reach

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 16

BOTTOM-UP Prediction Line item Predict

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 17

Predictive Pred. Overhead

Pred. Revenue Pred. Revenue

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 18

 All KPIs based on a single source

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 19

Universal Journal Extension ledgers

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 20

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 21

Second quarter EBT prediction as of June 17th

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 22

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 23

Predictive Pred. Overhead

Pred. Revenue Pred. Revenue

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 27

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 28

Periodic legal Intelligent

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 29

1. Connect data sources SAP Non-SAP

2. Manage / Optimize Checks

Check Master data related checks

4. Take corrective actions

Manage Tasks/ 3. Receive / validate exceptions

TM/IA/BU/IT Notifications Exceptions – TM/IA/BU/IT Check Source

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 30

▪ Automatically detect tax deviations

▪ Leverage historical information and

▪ Gain reliable insights into tax

▪ Reduce the risks and costs of

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 31