SAP Simple Finance The next generation of integrated financial reporting

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1 The next generation of integrated financial reporting Intuitive, transparent and reliable: The Simple Finance solution allows you to optimise and simplify processes and structures of reporting systems.

2 The next generation of integrated financial reporting is SAP s next generation ERP Financials product giving CFOs real-time performance reporting which is truly integrated with the SAP transactional system. Powerful in-memory reporting eliminates the boundary between controlling and financial reporting, integrates planning functions and enhances liquidity analysis. PwC can support you to obtain the best from your implementation of SAP Simple Finance and to overcome potential hurdles to make Simple Finance deliver what it promises and help Finance become a true business partner. Business Rationale CFOs require transparency and immediate insight into current economic and financial positions to identify the future direction. Providing timely and detailed performance information out of an up to date ERP financial system is decisive in determining success. gives businesses the opportunity to both optimise and accelerate the closing process and to significantly improve their financial performance reporting. The solution is SAP s answer to the need for a coordinated financial reporting system covering both internal and external accounting. Within a central SAP ERP-system, Simple Finance enables now financial reporting from one single system in real time. The innovation of Simple Finance enables a flexible reporting via the criteria account on the dimension of Actuals, Plan and Forecast in capitals for all available drill down objects such as product, region, client. at a glance is based on in-memory technology using the SAP HANA database platform and comes with a significant simplification of existing SAP ERP Financials functions, data models and processing. combines the established logic of ABAP functionalities with the advantages of HANA-technology. SAP Accounting, SAP Cash Management and Integrated Planning are the three pillars of. Fiori applications provide user friendly role based transactional and reporting solutions, across differing mobile and desktop platforms. Fig. 1 at a glance Reporting/ Front end SAP Fiori/HANA Live SAP Fiori UX (user experience) User-friendliness created through intuitive, customisable interfaces and reporting for all types of devices (mobile, application, desktop) Solution for reporting and application SAP HANA Live Embeds interactive reporting Application/ Functional components SAP Cash Management SAP Accounting Integrated Planning SAP Cash Management Includes previously captured data for liquidity analyses SAP Accounting Consistent data base for internal and external reporting across all dimensions of reporting Real time reporting on single item level Integrated Planning Improves planning/forecasting through enhanced user-friendliness and an integrated planning/forecasting module/ function Back-end (database, versions, etc.) SAP ERP EHP 7 / S/4 HANA BPC 10.1 SAP HANA Technical requirements SAP Business Suite on HANA EHP 7 or S/4 HANA SAP General Ledger (formerly known as SAP New G/L) and new asset accounting License requirements (particularly for integrated planning) are to be discussed on an individual basis

3 The added value for you revolutionises reporting by providing real time up to date integration with the transactional system. It is no longer necessary to have a separate reporting database for database performance purposes. Journal based real time reporting will be the new standard. Simple Finance enables the full spectrum of integrated financial reporting: SAP Accounting eliminates the boundaries between financial reporting and controlling. The harmonisation of controlling and finance introduced by the SAP General Ledger is enhanced with Simple Finance. The account represents the leading link for financials, controlling, asset accounting and material management. Account-based profitability accounting is refocused all analysis dimensions are now available on account level. This provides the ability to analyse transactional and master data across the application. also incorporates planning and forecasting through the Integrated Planning module. Real time integration of forecast and budget data from the ERP system allows the improved comparison of planning and actual data without replication. The high performance HANA-platform enables instant results for top-down-settlements and allocations allowing accurate simulations in the integrated planning module which is a crucial step towards full integrated business planning. On the other hand, SAP Cash Management makes data available for an enhanced liquidity analysis. This refers to data which may be captured by the system but has not yet been processed on an accounting basis. Based on the effective date, this data can be analysed in conjunction with actuals and forecasts. Fig. 2 Requirements for integrated financial reporting Uniqueness Single source of truth Reconciled data across applications for all functional and version-based reporting requirements Transparency Drill down The ability of real time analysis of journals on line item level Reliability Quality-at-Source Accurate capturing and determination of data based on consistent processes at source Challenges and SAP HANA create new, simplified and revolutionary structures that break the current SAP structures which have been in place for years. Implementing SAP s new strategic Simple Finance standard, as well as achieving the key benefits, requires a proven track record and in-depth experience. The business case for has to take the business and technical change into account and align it to the corporate and IT strategy. Implementing as a Central Journal enables the business to run central analysis of operational data like an integrated Business Warehouse within the ERP system. Additionally the Central Journal provides the ability for decentralized Non-SAP data to be captured in a central system. Furthermore, utilising reduces the data footprint which in turn significantly decreases the required in-memory hardware. This is due to the efficient data storage of HANA-technology and the fact that redundant data storage of totals and index tables are eliminated by the new designed table structures.

4 Fig. 3 Dependency between business and technical aspects Business considerations: Level of harmonisation of internal and external accounting Which structures and processes have to be harmonised in advance? Do you require a different approach for controlling? Are there any implications to the cost-based profitability analysis? SAP General Ledger What does offer on top of the SAP General Ledger? Which SAP General Ledger functionalities do you want to use (e.g. doument split, parallel ledgers)? What are the prerequisites for the new asset accounting? Archiving of Reporting How can the reporting and data retention operate on a journal based transaction database in order to provide compliant month-, quarter-, year end reports? Technical considerations: IT architecture/it strategy Which technical requirements have to be met and how do these align to your IT strategy? Heterogeneity of data structures, processes and application architecture How can different finance systems be integrated? Is the implementation of a,central Journal an option? Business Warehouse Can one re-integrate the operational reporting in the ERP system? For which reporting type will still be a Business Warehouse required? Customization and developments What is the impact of customization and developments on the functions and performance under Simple Finance? Integrated Business Planning in the ERP system Is your current forecasting approach compatible with the Simple Finance functions? Fig. 4 Assessment 1 Overview and scope We will present and explain functions, technical requirements and different ways of using, including live demos Our approach aims to simplify complex structures and processes. In order to accurately evaluate the value SAP Simple Finance added, it is important to consider technical, process and functional possibilities and impacts of an integrated approach. An independent assessment and evaluation by interdisciplinary Subject Matter Experts can be very supportive Assessment Fit-Gap analysis We will capture your IT strategy, finance operating model, controlling and reporting requirements We will assess your current system to identify potential for improvement We will examine the readiness of technical prerequisites and functional requirements Cost benefit analysis We will assess the functional capabilities in comparison to the cost benefit analysis We will demonstrate relevant implementation options (e.g. Central Journal, Greenfield/ Brownfield, etc.) roadmap We enable you to make an informed decision We will develop a tailored implementation approach (key decisions, activities, dependencies, timelines, etc.) Our experts can support you with removing complexity and overcoming major challenges when implementing Simple Finance. We will collaboratively work with you to provide a assessment to support you with this strategic decision making. Our focus is to highlight relevant options for you and make transparent how it suits your requirements. Our expertise Technology is a key driver for improving efficiency and transparency. Though the full benefits can only be leveraged when taking the functional and technical requirements into account. In addition to a broad knowledge in SAP Simple Finance, PwC offers the right expertise as a transformation partner to support making informed decisions.

5 Contacts If you like to find out more about and how this solution can support your company, feel free to contact us. Claus Michael Wiegels Tel: Kathrin Weismann Tel: Hendrik Jost Tel: About us Our clients face diverse challenges, strive to put new ideas into practice and seek expert advice. They turn to us for comprehensive support and practical solutions that deliver maximum value. Whether for a global player, a family business or a public institution, we leverage all of our assets: experience, industry knowledge, high standards of quality, commitment to innovation and the resources of our expert network in 157 countries. Building a trusting and cooperative relationship with our clients is particularly important to us the better we know and understand our clients needs, the more effectively we can support them. PwC. 9,400 dedicated people at 29 locations billion in turnover. The leading auditing and consulting firm in Germany. Nico Reichen Tel: nico.reichen@de.pwc.com

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