Impact 20: Discover When SAP S/4HANA for Central Finance

Makes Sense in your SAP S/4HANA Deployment Plans

Javaid Awan, Solution Owner SAP S/4HANA Finance (Central Finance)
SAPinsider, Las Vegas February 2018

PUBLIC
Agenda

 SAP S/4HANA Central Finance – A Gentle Reminder

 Why SAP S/4HANA Central Finance Resonates?
 Deploy SAP S/4HANA Central Finance
 SAP S/4HANA Central Finance - Myth & Reality
 Wrap-up

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SAP S/4HANA Central Finance – A Gentle Reminder
Central Finance – A Gentle Reminder

ARIBA, ML Cash Customer Credit Check

Concur, FieldGlass,
Application Payment
SuccessFactors,

Digital
Planning, Process Control, consolidation and Reporting, Treasury, IFRS16 (RE-FX), Receivables Mgt Boardroom
Master Data
Governance

S/4 HANA Core

GL/CO AR AP Cost Objects COPA** Assets*

Central Finance FSI

SAP SAP
Systems Systems Non-SAP Non-SAP
Systems 1 Systems ..n
1 ..n

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Why SAP S/4HANA Central Finance Resonates?
Future: Why Adopt SAP S/4HANA using Central Finance

IT Innovations,
Roadmaps, Central Finance as the enabler

Higher
I.T Roadmaps Business
Models, process
IT Driven Change transformation

Process Fixes &

Lower

Lights On Continuous
Improvement

Lower Higher

Business Driven Change

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Future: Business Use Cases … a sample

Migration to S/4 for

Mergers & Deploy Corporate Stepping stone to Transfer Pricing &
Single or Multi-
Acquisitions Treasury S/4HANA Inter-Company
Instance

Back Office
SAP & Non-SAP Single Version of Introduce SAP to CFIN as an End
Transformation
Integration Truth an Oracle House State
(Shared Services)

SLO Type
Central Payables Move BW Finance
Divesture Data Management Activities
Factory with reporting to
Evaluation HUB (currencies, COA
OpenText S/4HAN real time
etc.)

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And so on…happily ever after 7
Central Finance: Unique Selling Points

Has a business case Early Benefit Realisation Not Just a Side Cart
 Finance Single Instance  Focus on business pain  Full back office transformation
points rather than I.T.
 Implement New Business  Adopt SCP innovation
models  Two/Multi Speed I.T. &
business Change  Real time reporting with New
 Data Management more user experience
process oriented  Phase in most critical
changes first  Interim or end State
 Flexibility & Speed (brownfield Architecture
or greenfield or Hybrid)  Shared Services
Enablement  Does more than just finance
 Business Continuity & Value

There are no competitors to Central Finance with lower disruption and lower risk

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Deploy SAP S/4HANA Central Finance
Future: SAP S/4HANA Adoption Patterns with Central Finance

Choose any Combination

Finance &
Finance
Decisional Logistics
Operational
operational
Instance Single
Single
Instance
Instance

Disclosure, Reporting & Analytics – Back Office Data Lake

Single Point of Connectivity for SAP and non-SAP Portfolio

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Future: Central Finance – Evolution Patterns for CFO Single Instance

Reporting HUB GL Closure Fin. Ops Treasury Consolidation

Transform Finance

Optimize
Ensure consistent Lower risk by
Streamline all processes Continuous
and efficient having real-
financial reporting and create accounting
close across the time view of
with data in one foundation for with full
operational exposures
place and real- treasury via substantiation
systems with and money
time (SAP and transparent by embedded
monitoring and market
non SAP). cash with ERP.
automation. access.
management.

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Future: Evolution Pattern from Central Finance with Simple Logistics

Logistics Reporting &

Central Finance P2P O2C
Execution Disclosure

Transform Logistics

Central Finance Sales and Live Analytics

Classic IM,
full deployed as a distribution real time with
procurement or Manufacture,
transactional with or UI5 for finance
with Ariba Warehousing.
system without Hybris & logistics

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Future: Step In to Full SAP S/4HANA With Central Finance

Phase 1
Opening Balances & Line Items - cFin Central
Finance Finance

Move to S/4HANA
Finance

SAP & Non S/4 HANA

SAP Core

Phase 2
Opening Balances - Tools
Logistics Logistics

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SAP S/4HANA Central Finance – Myth & Reality
Top Objections & How to Handle Them

1 Does not Take Logistics Data 2 Central Closing

All data needed for decisional or operational purposes is available All finance closing activities can be carried out directly in CFIN.
in CFin. If additional data is needed, this can be extracted using Logistics oriented closing can be orchestrated via closing cockpit
exits. or a partner tool from CFIN.

3 Three Way Matching 4 Back Posting

Using our partner product, OpenText, the three way matching can Driven by lack of understanding of business process and sub-
be orchestrated from Central Finance instance. optimal implementation approach. CFIN does not have a confirmed
back posting use case from customers.

5 Taxation 6 Master Data Replication

1709 supports local and/or central payments that enable the It is supported using either CFIN, MDG, IDOCS or many standard
posting of indirect tax. Direct tax source can be CFIN for local or tools. Project issue.
group tax.

7 New Technology 8 It is Expensive to Deploy

Works on S/4HANA and mature technology that is in productive Simply not true.
use for more than 10 years. Commoditised skills can implement
using agile. 150 customer and implementations growing.
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Wrap-up
7 Key Points to Take Home

1. Central Finance is no longer a new technology. It is stable and it works.

2. Measurable business case for both business & I.T.

3. Platform for Finance Transformation – the Foundation

4. Deploy in a single or multiple design patterns

5. Time to value for single version of the truth for Finance

6. Strategic SAP Innovation with no natural competitor

7. A real alternative to upgrades and greenfield deployments with lower disruption & Risk

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 Thank you
Contact information:

Javaid Awan
Solution Owner, SAP S/4HANA Finance (Central
Finance)
SAP Germany

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