Enel. Achieve Fast Close and Finance Innovation Even in Complex System Landscapes

Transcription

1 Achieve Fast Close and Finance Innovation Even in Complex System Landscapes Enel Pasquale De Pascalis : ENEL AFC Global Central Finance Project Manager Set 13 th 018

2 Agenda Company profile Key Drivers for Finance Transformation Fast Closing.0: project background SAP S/4HANA for Enel Central Finance Results, business value and benefits Fast Closing.0: lessons learned Roadmap: Next Level Reporting 13/09/018

3 Company Profile: Enel is very complex Group with its headquarter in Italy WHO WE ARE World s leader in electricity and gas utilities WHERE WE ARE in more than 30 countries in 5 continents MAIN FIGURES 86 GW (43% Renewables). Mln km of Electricity Network +73 million end users employees Revenues 016 : +75 bn 13/09/018 3

4 Key business challenges driving the project Reporting Model Fast Closing.0 Reporting tools not efficient Many manual activities High number of Reports Closing procedures very slow Many activities under performed Checks redundance 13/09/018 4

5 Enel Fast Closing.0 scenario: Fast Closing reporting delivered with more effective and efficient processes FROM CLOSING PROCESSES NO ESTIMATION LACK OF SYSTEMS & AUTOMATION NO TASK PRIORITIZATION Data quality Time compression TO 1 CLOSING PROCESS ESTIMATION SYSTEMS EMPOWERMENT DOUBLE BINARY APPROACH 13/09/018 5

6 Enel Fast Closing.0 scenario: Fast Closing Methodology In order to accelerate its Financial Closing processes, Enel decided to adopt the Fast Closing methodology, freezing the accounting data some days before the end of the moth, starting the estimation process on the basis of reliable and affordable procedures. In order to reach the above objective, Enel decided to move from the Sigle Binary Accounting Model to the Double Binary Accounting Model. Single Binary (Old Solution) Statutory & Manag. Accounting End of month Complete fiscal required postings Accounting posts for accruals, adjustments, depreciations, other necessary \ admitted estimations CTB (*) Data available for consolidation and reporting Consolidation (all closing cycles) All events are posted using a single accounting binary. An unique closing process is executed, relevant for both statutory and managerial purposes. Single binary is applicable to all closing calendars (monthly, quarterly, half yearly, yearly). Estimations are allowed if necessary \ admitted. * Close the Book Double Binary (New Solution based on Fast Closing) Statutory Accounting Managerial Accounting Cut-Off Time 0 Time 1 Cut off date for freezing accounting data End of month SAP P&L and BS Managerial integrations CTB (*) Consolidation CTB (*) (Monthly, Quarterly Half-Yearly) Data available for managerial consolidation and reporting processes Consolidation (Yearly) The actual data are freeze on the basis of the closing calendar. It s possible to set several cut-off dates per each month Managerial integrations are posted on a specific accounting binary with no statutory and fiscal impacts The ordinary activities continue to be managed on current Operational ERPs (e.g. billing, etc.) Day by day activity over the cut-off dates has no impacts on management reporting Managerial and statutory reporting are reconciled half-yearly only Yearly closing follow the Statutory Accounting calendar SAP and ENEL proprietary 6

7 Enel Fast Closing.0: key figures SAP source systems SAP source releases Live companies Countries 167 Mio 950 Mio 83 Mio 5 Accounting Documents Accounting Line items Controlling objects Months 1 st go live 13/09/018 7

8 Enel Fast Closing.0: in scope processes Organize Fast Closing operations through the SAP Financial Closing Cockpit 1 Run the Intercompany reconciliation process Manage Time Segregation Table and Managerial Journals 3 Extract data to feed the Enel consolidation system 4 13/09/018 8

9 Solution Overview: integration of 19 SAP source systems to a SAP S/4HANA for Central Finance Enel Source Systems Real Time Replication Tool Enel Fast Closing System Based on SAP Central Finance solution Enel consolidation System Tableau de board SZP IIP PRD DIP ESP GEP PRD SRP. SAP Landscape Transformation Server 1 Business Mapping Actual Postings Time Segregation based on FCC calendar Financial Closing Cockpit (FCC) Cutoff Time 0 / Cutoff Time 1 Intercompany Reconciliation Estimation Manual Managerial Journals (Time 1) Automatic postings (Time 0) Automatic postings (Time 1) 3 4 Extractors Consolidation Tax Compliance Tableau de board / Reporting 13/09/018 9

10 Solution Overview: integration of 19 SAP source systems to a SAP S/4HANA for Central Finance Enel Source Systems Real Time Replication Tool Enel Fast Closing System Based on SAP Central Finance solution Enel consolidation System Tableau de board SZP IIP PRD DIP ESP GEP PRD SRP. SAP Landscape Transformation Server Business Mapping Actual Postings Time Segregation based on FCC calendar Financial Closing Cockpit (FCC) Cutoff Time 0 / Cutoff Time 1 A B Intercompany Reconciliation Estimation Manual Managerial Journals (Time 1) Automatic postings (Time 0) Automatic postings (Time 1) C Extractors Consolidation Tax Compliance Tableau de board / Reporting 13/09/018 10

11 Solution Overview: Time Segregation rules Closing Calendar rules are based on the following objects: When the Document Type is blank, the Time Segregation Rule is applied to all other FI Document Types not present in the Closing Calendar Rules table Period of Closing SAP Module (FI/CO) Company Code/Group of Companies FI Doc. Type CO Business Transaction Cut-Off Date FI Z001 6/07/ FI Z001 WA 31/07/ FI Z001 WE 9/07/ CO Z001 31/07/015 Notes When the CO Business Transaction is blank, the Time Segregation Rule is applied to all other CO Business Transactions not present in the Closing Calendar Rules table Time Segregation Dimension Coding rules: o 1 st digit = T o nd and 3 rd digit = Month of Period Closing; o 3 th and 4 th digit 00, if the Document CPU Date is before or equal to the Cut-off Date 01, if the Document CPU Date is after the Cut-off Date 0, when Managerial Integrations are inserted 03, when Managerial Integrations are Reversed Centrally using a specific Reversal Reason T. S. Code Time Segregation Text T0100 January: Automatic Postings before the Cut-off date T0101 January: Automatic Postings after the Cut-off date T010 January: Managerial Integrations T0103 January: Reversal of Managerial Integrations T000 February: Automatic Postings before the Cut-off date T001 February: Automatic Postings after the Cut-off date T00 February: Managerial Integrations T003 February: Reversal of Managerial Integrations 13/09/018 11

12 Solution Overview: Business Mapping & Actual Postings with Time Segregation Posting Date Comp. Code Doc Number ENEL ERP Systems Accounting Postings FI Doc. Type CO Bus. Trans. CPU Date S/H Value CO Obj 5/07/015 Z /010 SA 5/07/015 S Profit 1 5/07/015 Z /00 SA 5/07/015 H Profit 1 6/07/015 Z /010 SA 7/07/015 S Profit 1 6/07/015 Z /00 SA 7/07/015 H Profit 1 7/07/015 Z /010 WE 7/07/015 S.000 Profit 1 7/07/015 Z /00 WE 7/07/015 H.000 Profit 1 8/07/015 Z /010 WE 31/07/015 S.000 Profit 1 8/07/015 Z /00 WE 31/07/015 H.000 Profit 1 Posting Date Business Dimensions Rules CO Object Profit 1 Profit Profit 3 Profit 4 Comp. Code Business Dimension B1 B1 B B3 Doc Number ENEL Central Finance System Accounting Postings on ENEL Fast Closing System FI Doc. Type CO Bus. Trans. CO Obj CPU Date S/H Value Source Sys Time Segr. Business Dimension Posting Period Company Code/Group of Companies FI Document Type CO Business Transaction Cut-Off Date Z001 6/07/ Z001 WA 31/07/ Z001 WE 9/07/ Z001 31/07/015 Segregation Rules 5/07/015 Z /010 SA Profit 1 5/07/015 S ERP1 T0700 B1 5/07/015 Z /00 SA Profit 1 5/07/015 H ERP1 T0700 B1 6/07/015 Z /010 SA Profit 1 7/07/015 S ERP1 T0701 B1 6/07/015 Z /00 SA Profit 1 7/07/015 H ERP1 T0701 B1 7/07/015 Z /010 WE Profit 1 7/07/015 S.000 ERP1 T0700 B1 7/07/015 Z /00 WE Profit 1 7/07/015 H.000 ERP1 T0700 B1 8/07/015 Z /010 WE Profit 1 31/07/015 S.000 ERP1 T0701 B1 8/07/015 Z /00 WE Profit 1 31/07/015 H.000 ERP1 T0701 B1 31/07/015 Z /010 SA Profit 1 31/07/015 S.000 ERP1 T070 B1 31/07/015 Z /00 SA Profit 1 31/07/015 H.000 ERP1 T070 B1 Manual Managerial Journals 13/09/018 1

13 Solution Overview: Intercompany Reconciliation Process #NP#_XZFtT8IwEMe/SrNXGhl7xo13Gw EBVkcBDVLTO0KNIxa YuaEL6 7V4ma mdtxu/ v/7npt TxYh1vBkyc0sYaW57 qwjlhopzbmrnbgwnmrlwoggxsb+z7ony7y 69qxel bdtd0g EII3s88 ZkUKJj Ual+KCy FIxrA0 7HIN5PJ ndhmn6/tmpfmliuiv 8xWqyLMPAA XRA7LT u1lba kdjisse CK6OrcZcq77aY Uk707 BPxKFF NNU1 U7+TkH 96u0t OeY4y0 9QMIeCa6laFv Gt7bvej EApk+ DxoIcD5 esmdg yprkx1r3feyrrbwpthe SZ0Dv 0c0ApqQIPawbD1c4IfIl bvdcooahov1 y85py qgpzq1w/6/qnxla7pmisesrcdbcx5 UMSPSe rirvmqtyt8juw+htjrl GW50V sw+yj HcbZE4 ieyzhmkbfwpnz+k/zf w==_# NP#

14 Solution Overview: Intercompany Reconciliation Process The ICR Process is a cycle of 3 individual steps 1) Documents Selection (Data Selection & Data Storage) ) Automatic Documents Reconciliation (Preparation for Data Presentation & Analysis) 3) Manual Documents Reconciliation: (Data Presentation & Analysis and Communication) This is meant to reduce the differences in corporate group consolidation, allowing early analysis in the closing process avoiding differences

15 Solution Overview: Intercompany Reconciliation Process From manual download and Excel configuration to automatic mapping of account groups and postings

16 Solution Overview: Time Segregation Reconciliation Tools ENEL ERP Systems Data Query via RFC Connection, submitting Time Segregation rules Data retrieve applying Time Segregation rules ENEL Central Finance Systems Selection Screen Balan Sheet Reconciliation Report supporting Time Segregation logics Report Visual alerting Mail alerting Data Query submitting Time Segregation rules Data Query reading Time Segregated data AIF Queue ACDOCA Data retrieve applying Time Segregation rules

17 Enel Fast Closing.0 key results: savings in working days for 015/016 and reduction foreseen for 017 Starting point and improvements: from 16 to 5 days! Main Processes Start 017 Notes(Focus Italia) Energy Margin & Commodities Derivtives Costs & Rev No Energy Personell System Optimization (i.e. Curves Management; Front to Accounting, enhancement Calculation Systems). More Estimation in Energy Margin definition. Change in Billing processes Antìcipation in the closing of Personnel processes up to arrive WD+. Convergence of reporting processes among HR and AFC Processes Optimization (i.e. Anticipation in Good Entrance, Improvements in Vendor Management Cycle Fixed Assets 10 System Optimization (i.e. Settlements, Amortization). Treasury / Int & Currencies Derivtives Submission Consolidation 5 Total 5 0, System Optimization (i.e. mirroring Accounting, Check Rationalization). Halving of loading time. Flows uploads optimization Improvements of reconciliation process. Automantic Rules and application of prevalence rules Global Business Line consolidation process (automatic). Speed up of consolidation process using the new release of Hyperion HFM 13/09/018 17

18 Key business value and benefit TIME TO CLOSE REDUCTION DATA HARMONIZATION REAL TIME - INSTANT VISIBILITY DATA IN ONE SINGLE PLATFORM ENHANCED COLLABORATION 13/09/018 18

19 Lessons learned and business advice SHARED VISION AND CLEAR OBJECTIVE PROGRAMS INTERACTION : A KEY FACTOR INNOVATION THROUGH COLLABORATION YOU NEED A GREAT TEAM IN PLACE RESULTS BUILD TRUST 13/09/018 19

20 Roadmap: Next Level Reporting Goals and Key Factors Goals Have a complete view of company performance that impact on the key nodes of the organization Take the key decisions on the basis of cross business certified data Have a near real time view of the information Allow in-depth analysis to improve support for decision-making Enable predictive models to have a forward view of business trends Manage simulation scenarios to highlight the impacts of potential decisions on economic-financial and operational aspects Key Factors Data sharing New mindset Tech innovation New skills and methodologies Change management New Unified Virtual Data Lake (UVDL) based on C3IoT 0

21 Roadmap: Next Level Reporting Unified Virtual Data Lake Architecture CFIN 1

22 Row Data Level Data Model #NP#_XZFtT8IwEMe/SrNXGhl7xo13Gw EBVkcBDVLTO0KNIxa YuaEL6 7V4ma mdtxu/ v/7npt TxYh1vBkyc0sYaW57 qwjlhopzbmrnbgwnmrlwoggxsb+z7ony7y 69qxel bdtd0g EII3s88 ZkUKJj Ual+KCy FIxrA0 7HIN5PJ ndhmn6/tmpfmliuiv 8xWqyLMPAA XRA7LT u1lba kdjisse CK6OrcZcq77aY Uk707 BPxKFF NNU1 U7+TkH 96u0t OeY4y0 9QMIeCa6laFv Gt7bvej EApk+ DxoIcD5 esmdg yprkx1r3feyrrbwpthe SZ0Dv 0c0ApqQIPawbD1c4IfIl bvdcooahov1 y85py qgpzq1w/6/qnxla7pmisesrcdbcx5 UMSPSe rirvmqtyt8juw+htjrl GW50V sw+yj HcbZE4 ieyzhmkbfwpnz+k/zf w==_# NP# Roadmap: Next Level Reporting Journey Data Consuption 4 5 «Next Level» Reporting SAP Analytics Cloud and SAP Digital Boardroom Analytics Tools Lumira, Web Intelligence, Analysis for Office, Predictive Analytics, SAC AFC Data Lake «Next Level Dashboarding» Actual vs Planning Control Model Operational Data 1 Economic & Financials FInancial Financials Consolidation Strategic Plan 3 4 Annual Operational Data Bdg & Fcst Volumes 5 5 Variances What If Analysis Explanations Predictive Forecasting Projects 1 Operational Reporting NP Consolidation & DSS 3 E-Budget 4 Near Real Time 5 Next Level Reporting

23 Thank you! Pasquale De Pascalis : ENEL AFC Global Central Finance Project Manager