Ready for Innovation: S/4 HANA Finance. Steven Ceuterick, SAP Belgium June 2016

Transcription

1 Ready for Innovation: S/4 HANA Finance Steven Ceuterick, SAP Belgium June 2016

2 Back to December 2014 (1) SAP ERP Finance Client Business Suite on SAP HANA Client Simple Financials Client SAP Business Suite SAP Business Suite EhP 7 EhP 7 Finance Finance incl. Accelerators BW Apps ERP Business Suite EhP 7 Simple Finance BW Apps AnyDB SAP HANA DB SAP HANA DB Any DB Based on InMemory Technology (e.g. HANA) 2016 SAP SE or an SAP affiliate company. All rights reserved. Customer 2

3 Back to December 2014 (2) SAP Accounting powered by SAP HANA Alternative in-memory functionality for ERP customers SAP Cash Management powered by SAP HANA New product for Group Cash Management Integrated Business Planning New capabilities and enhanced integration for ERP and BPC Business Suite on HANA SAP HANA Platform Aligned Single Source of Truth Agile Real time processes Predictive Dynamic Planning and Analysis 2016 SAP SE or an SAP affiliate company. All rights reserved. Customer 3

4 S/4HANA Overview anno 2016 (1) 2016 SAP SE or an SAP affiliate company. All rights reserved. Customer 4

5 S/4 HANA Overview anno 2016 (2) SAP S/4HANA (as an umbrella term) -> unchanged SAP S/4HANA, on-premise edition -> SAP S/4HANA (yes, same as the umbrella term) SAP S/4HANA, on-premise edition > unchanged SAP S/4HANA, on-premise edition > SAP S/4HANA 1610 SAP S/4HANA Finance, on-premise edition -> SAP S/4HANA Finance SAP S/4HANA,Finance, on-premise edition > unchanged SAP S/4HANA Finance, on-premise edition > SAP S/4HANA Finance 1605 SAP S/4HANA, cloud edition -> SAP S/4HANA Cloud SAP S/4HANA, cloud enterprise edition -> SAP S/4HANA Enterprise Management Cloud SAP S/4HANA Professional Services, cloud edition -> SAP S/4HANA Professional Services Cloud SAP S/4HANA Marketing, cloud edition -> SAP S/4HANA Marketing Cloud 2016 SAP SE or an SAP affiliate company. All rights reserved. Customer 5

6 S/4 HANA Finance: simplified architecture at a glance SAP ERP Stability Logistics Document FI Document CO Document Totals & Indices Financial Accounting Pre-Defined Aggregates Totals & Indices Management Account. Processing Analytics SAP Accounting Stability Flexibility Logistics Document Universal Journal Entry Aggregation on the fly via HANA views Processing Single repository across applications Analytics 2016 SAP SE or an SAP affiliate company. All rights reserved. Customer 6

7 Multiple Sources of Truth Challenges of the Architecture before S/4 HANA Finance Balance Sheet P&L AA code G/L code CO code Asset Accounting No profit center & no G/L account in Asset Accounting Totals G/L Balance Sheet/P&L CO Different level of detail due to the 999 document lines limit 1:n documents FI/CO n:m document lines FI/CO ML code CO-PA code Material Ledger Material Ledger does not store G/L account and Profit Center Profitability G/L and Profitability updated at different business events on different entities (e.g. account) 2016 SAP SE or an SAP affiliate company. All rights reserved. Customer 7

8 The New Architecture with S/4 HANA Finance Universal Journal as the Single Source of Truth (1/2) 2016 SAP SE or an SAP affiliate company. All rights reserved. Customer 8

9 The New Architecture with S/4 HANA Finance Universal Journal as the Single Source of Truth (2/2) The New Architecture Motto: Take the best of all worlds One line item table with full detail for all components! Data stored only once: no reconciliation needed by architecture Fast multi-dimensional Hana based reporting on the Universal Journal possible without replicating data to BI If BI is in place anyway, only one single BI extractor needed Secondary cost elements are G/L accounts Technical preparation done to enhance important structural capabilities of the Financials solution 2016 SAP SE or an SAP affiliate company. All rights reserved. Customer 9

10 A word on CO-PA in S/4 HANA (Finance) Enhancements in Account-Based CO-PA Split of cost-of-goods-sold posting on multiple accounts by cost component (standard COGS) Split of production variance posting on multiple accounts It is planned to further enhance account-based CO-PA Uses the concept of near real-time profitability analysis Within S/4 HANA Finance, account-based CO-PA is being considered as the strategic solution for the future Can be activated before/during/after migration to S/4 HANA Finance Cost-Based CO-PA Is still supported within S/4 HANA Finance But is not part of the Universal Journal Entry! 2016 SAP SE or an SAP affiliate company. All rights reserved. Customer 10

11 S/4HANA: Inventory Management based on Material Ledger replaces Traditional Inventory Management SIMPL E Traditional SAP ERP Inventory Management with Material Ledger Data Throughput 1 > 5 x # of Currencies/ Valuations 1 1 to 3 Valuation methods 2 + YE 3 + YE Aggregate Tables 26 On the Fly Transfer Prices No 2016 Reporting Batch on Multiple aggregates Real-time on primary data Predict & Simulate stock No YES Analytics Performance 1 up to 800 x 2016 SAP SE or an SAP affiliate company. All rights reserved. Customer 11

12 Material Valuation in S/4HANA $ Up to 3 currencies Tracking historic rates in material master Local legal valuation & e.g. hard or trading currency Realtime Insights Analyze & Optimize the Flow Use realtime KPI s (Inv. turnover) Predict/ Simulate Digital Core Actual Costing Optional revaluation of stock and COGS Leverage Actual cost component split Transferprices* Legal Costing Corporate Costing (w/o intercompany) Transfer prices (political) 2016 SAP SE or an SAP affiliate company. All rights reserved. Customer 12

13 Material Valuation Methods S/4HANA Supports All ERP Valuation Methods and MORE! Standard Price (S-Price) With Price Determination 2 can be used as in ERP, price is set manually or by Product Costing with Components Variances will lead to Price differences (GL) In S/4HANA the throughput for standard price materials will be improved as shared SAP enqueue locks are used instead of exclusive ones (parallel processing) Year End Legal Valuation to enable local legal valuation requirements e.g. for year end Recalculate valuation based on all existing info at key date Lowest Value principle, LiFo, FiFo Moving Average Price (V-Price) With Price Determination 2 can be used as in ERP, price is recalculated and updated (and locked) with incoming movements Often recurring variances bear the risk of continued differences or (in exceptional cases of many variances into low stock scenarios danger of wrong prices) Not recommended for Semi Finished or Finished Products - also difficult to use if strong variances for raw materials are expected Actual Costing Optional enablement for selected valuation areas with price determination 3 to enable inventory valuation at actual costs and improved throughputs, customers can use Actual Costing (based on Material Ledger) instead of using a moving average price Allows for detailed material flow, revaluation and actual cost components (all steps optional at any time) 2016 SAP SE or an SAP affiliate company. All rights reserved. Customer 13

14 Actual Costing Period End Closing Process steps for actual costing Only for Plants with Actual Costing activated It is a multi-step process. A Period end close has to be performed for materials with actual costing (price determination 3). However most steps are just optional to be decided period by period. New period needs to be opened Material Selection selects the plants to be costed Sequence determination calculates the actual usage and consumption patterns of materials (prerequisite for correct variance assignment) Single Level Settlement (calculates all variances per level separately, such as for raw materials as level 0, Semi finished as level 1 etc.) Multi-Level Settlement roles up the variances along the quantity structure determined in step 2. Post Closing with optional revaluation of old period. Before revaluation the impact can be simulated. Mark & Release new standard price for the new period based on actual cost After each step in the cockpit, the results can be seen in the Costing results section SAP SE or an SAP affiliate company. All rights reserved. Customer 14

15 Historically, SAP had 2 solutions for credit management 2016 SAP SE or an SAP affiliate company. All rights reserved. Customer 15

16 Beginning with the simplified logistics processes in S/4HANA, FI- AR credit checks done by base edition of SAP Credit Management* 2016 SAP SE or an SAP affiliate company. All rights reserved. Customer 16

17 S/4 HANA Finance 1605: more flexibility on currencies In S/4H Finance OP 1605, Universal Journal supports additional new parallel currencies You can configure per company code and ledger 2 fix currencies and up to 8 freely defined currencies Customer can configured new currency types in customer namespace. Freely defined currencies for parallel G/L ledgers do not depend on leading ledger 2016 SAP SE or an SAP affiliate company. All rights reserved. Customer 17

18 S/4 HANA Finance 1605: parallel valuation (profit center valuation / group valuation) is now supported (1) 2016 SAP SE or an SAP affiliate company. All rights reserved. Customer 18

19 S/4 HANA Finance 1605: parallel valuation (profit center valuation / group valuation) is now supported (2) In classic SAP ERP: Via extra currencies in Material Ledger Via extra versions in CO Via extra currencies in FI In S/4 HANA Finance 1605: 2 options Parallel valuations updated in a multi-valuation ledger Use separate amount columns in the same (leading) ledger Parallel valuations updated in parallel single-valuation ledgers: Use of non-leading ledgers for parallel valuation 2016 SAP SE or an SAP affiliate company. All rights reserved. Customer 19

20 The road to SAP S/4HANA Tool: Software Update Manager (SUM) with Database Migration Option (DMO) SAP S/4 HANA Finance, on-premise edition 1605 SAP ERP 6.0 EHP8 SAP NetWeaver 7.40 SAP S/4HANA, on-premise edition 1511 SAP S/4HANA Core (SAP S/4HANA Enterprise Mgmt.) SAP HANA Start Release SAP ERP 6.0, EhP 0-7 SAP NetWeaver 7.0x AnyDB or SAP HANA SAP HANA The Road to SAP S/4HANA See also SCN blog: The road to SAP S/4HANA: the different transition paths SAP Simple Finance is the first offering under the S/4HANA product family The decision to go for SAP Simple Finance should be based on the business benefits but is not a mandatory prerequisite for any system conversion 2016 SAP SE or an SAP affiliate company. All rights reserved. Customer 20

21 Out of Scope & Limitations From Classic General Ledger: Switch from parallel accounts into parallel Ledgers Special Ledger content into New General Ledger Document Split Implementation and Data Migration From New General Ledger: Retro-active New G/L migration scenarios not yet ready for S/4 HANA Finance From Classic General Ledger: Only one ledger (leading ledger) 2016 SAP SE or an SAP affiliate company. All rights reserved. Customer 21

22 S/4 HANA Finance & Migration to New G/L 2016 SAP SE or an SAP affiliate company. All rights reserved. Customer 22

23 Key Take Aways Today s volatile world requires Finance organizations to become more adaptive to change Superior access to insight, enabled by new technology innovations, is therefore a competitive advantage SAP S/4 HANA Finance helps Finance organizations to become more adaptive by establishing a single source of truth and real-time processes SAP supports customers to flexibly choose their own non-disruptive evolutionary path towards real time 2016 SAP SE or an SAP affiliate company. All rights reserved. Customer 23

24 Thank you Contact information: Steven Ceuterick