5 Questions to Answer before Migrating Credit and A/R Operations to S/4HANA

Transcription

1 SAP S/4HANA 5 Questions to Answer before Migrating Credit and A/R Operations to S/4HANA Tanmay Mehra Senior Solution Architect

2 Confused about SAP S/4HANA? Business Suite on HANA HANA Vora S/4HANA Cloud 1608 S/4HANA 1610 S/4HANA Cloud

3 Agenda What is S/4HANA? Who Will Benefit from FSCM on S/4HANA? What Are the Potential Disruptions? How to Mitigate the Risks? How to Migrate to FSCM on S/4HANA? 3

4 1. What is SAP S/4HANA?

5 What is SAP HANA? Leverage any device SAP HANA Database & Application Development Platform Database Analytics Processing App Development Data Access Administration Security Flexible Deployment Options Open Process any data SAP HANA is the in-memory computing platform that allows organizations to accelerate business processes, deliver enhanced business intelligence, and simplify the organization s IT environment. 5

6 The Digital Core What is SAP S/4HANA? Included Modules Logistics General (LO) Sales & Distribution (SD) Materials Management (MM) Production Planning (PP) Environmental, Health & Safety Finance S/4HANA Enterprise Management Plant Maintenance (PM) Customer Service (CS) Quality Management (QM) Project Systems (PS) Human Resources Others (GTS, PLM, etc.) Included Industries Chemicals Life Sciences Wholesale High Tech Mining Industrial Machinery & Components Other Industries Automotive Aerospace & Defense Mill Products Retail Oil & Gas SAP S/4HANA A real-time enterprise resource management suite for digital business Leverages a highly simplified data model Advanced data processing using SAP HANA New user experience using SAP Fiori Deployable in the cloud or on-premise 6

7 What is SAP HANA Cloud Platform? Cloud Extensions Digital Core S/4HANA HRC Add-Ons SAP SuccessFactors SAP Hybris HANA Cloud Platform SAP Ariba Assets & Big Data Cloud for Analytics SAP HANA Cloud Platform is an inmemory Platform-asa-Service offering from SAP that enables SAP customers and business partners to build, extend, and run applications in the SAP Cloud Partner Add-Ons Your Add-Ons Scope Extensions 7

8 Where does Receivables Management (FSCM) fit in S/4HANA Finance? SAP S/4HANA Finance - delivers functional completeness across all financial roles Chief Financial Officer VP of Finance Head of Corporate Reporting Corporate Treasurer Head of Finance Operations Chief Compliance Officer Financial Planning & Analysis Accounting & Financial Close Treasury & Financial Risk Management Finance Operations Enterprise Risk & Compliance Management Strategy Development and Translation Accounting Payments and Bank Communications Receivables Management (FSCM) Enterprise Risk Management Planning, Budgeting and Forecasting Entity Close Cash and Liquidity Management Invoice Management Controls and Compliance Management Profitability and Cost Management Corporate Close Debt and Investment Management Travel Management International Trade Management Monitoring and Reporting Reporting and Disclosure Financial Risk Management Real Estate Management Fraud Management Financial Close Governance Commodity Risk Management Financial Shared Services Audit Management 8

9 2. Who Will Benefit from FSCM on S/4HANA?

10 The Three Scenarios Enterprise wide initiative to migrate to S/4HANA Migration from SAP FICO to S/4HANA Finance New implementations of S/4HANA or S/4HANA Finance 10

11 Benefits of Transitioning to Receivables Management in S/4HANA Reimagined Business Models Simplicity to connect to people, devices, business networks Reimagined Business Decisions Simplicity to get any insight on any data anywhere No more complex collaboration Cloud for Credit Integration Cloud for Customer Payment Reimagined User Interface Responsive UI, User friendly & intuitive, web-like look & feel Dashboards for key KPIs: DSO Actuals & Predictions DDO Actuals & Predictions CEI Proactive Credit Risk Management 11

12 What s new in S/4HANA for Accounts Receivable? Advanced Analytics Transaction Processing Personalized Launchpad with key apps for accountants & managers Color coding alerts when thresholds are exceeded Fiori analytics are available on any device Real-time reporting available Drill-down from highest level analytics to line item details Fewer transaction codes and screen changes for end-toend processes Layout variants allow users to save favorites from hundreds of data columns Fuzzy search and type-ahead features Worklist structure processes Context sensitive navigation points within processes 12

13 What is included in SAP Receivables Management? Deploy a customer bill payment portal or an e- billing process Billing & E-Invoicing Accounts Receivable Manage all financial accounting related aspects of customer accounts receivable Proactively manage customer collections and customer service Collections Management Credit Management Embed proactive credit management in transactional processes and portfolio analysis Clarify and resolve customer payment disputes quickly and efficiently Dispute Management 13

14 Credit Management in S/4HANA Credit Cockpit Jump into credit controller customer cockpit to take action Analytics focus attention Smart Business analytics for credit limit utilization Credit Worklist Blocked credit orders for quick review, unblocking Time-based resubmissions, periodic evaluations of customer s creditworthiness Processing of requests for new / extended credit limit lines 14

15 Dispute Management in S/4HANA Simplified UI Automatic, self-service creation of dispute cases Dispute case routing through the company via Workflow Deep integration with business documents and processes Automated posting, correspondence, and reporting Fiori App for Instant Insight Track number and value of open dispute cases Filter by dispute reason, processor, country, etc. Navigate directly to the details of customer and dispute case 15

16 Collections Management in S/4HANA Simplified UI Customer-centric collections Identify overdue accounts and critical trends Prioritize collection activities based on strategies Generate, monitor, and balance worklists Leverage complete integration (Credit, Disputes, Billing Analysis) Extend receivables processes beyond the Finance team 16

17 EIPP in S/4HANA Customer 1 Customer 2 Customer 3 Cloud for Customer Payments Customer 4 Features View bills Make payments Start the dispute resolution process Self-service for customer information Perform annual balance confirmation SAP Your Landscape SAP HANA Cloud Connector SAP S/4HANA 17

18 3. What Are the Potential Disruptions?

19 What Might Not Work Customized business processes Automation of manual tasks outside vanilla SAP Custom integrations to third party systems such as CRMs etc. 19

20 Most Frequently Asked Custom Features PCI-DSS compliant payment gateways Physical Invoice delivery Billing & E-Invoicing Accounts Receivable Automated correspondence Collections Management Automated claims and PoD aggregation Business managed workflows Fiori apps for credit memo approval Integration to trade promotions systems Dispute Management Credit Management Integration to credit agencies Business managed workflows Fiori apps for approvals Online credit application 20

21 Who Does it Effect? 90% A study by panorama consulting finds that about 90% of ERPs are customized to some degree to suit business processes 21

22 4. How to Mitigate the Risks?

23 4 Step Process to Successful Migrations Understand AS-IS Processes Fill gaps in functionality with bolt ons and custom code Understand Capabilities of S/4HANA Migrate to S/4HANA

24 SAP Central Finance : Run Multiple Parallel Systems Central Finance SAP R/3 4.6C SAP ERP SAP S/4HANA Central Finance SAP HANA Non-SAP ERPs ZERO disruption to existing systems Leverages real time replication of FI/CO documents Merges FI and CO documents together into a singular line item table known as the Universal Journal

25 ZERO Risk Approaches to Custom Functionality SAP certified apps on premise More flexibility in writing applications Maintenance and compatibility outsourced to the vendor FSCM Custom Functionality HANA Cloud Platform Apps Limited flexibility to build custom applications APIs ensure that apps work on future versions

26 5. How to Migrate to FSCM on S/4HANA?

27 Transition to S/4HANA: Overview of Conversion Options Option New System Installation Source Target Remarks SAP ERP Non-SAP ERP New or existing SAP customer implementing a new SAP S/4HANA system with initial data load SAP RM & Custom Bolt-Ons Install & Implement desired solutions: SAP RM solutions HCP add-ons Bolt-Ons System Conversion ERP Complete conversion of an existing SAP Business Suite system to SAP S/4HANA Options and recommended approach varies depending on the scenario. Refer to next two slides Landscape Transformation ERP Region A ERP Region B ERP Region C Consolidation of current regional SAP Business Suite landscape or selective data transformation into one global SAP S/4HANA system Install and Implement SAP S/4HANA Central Finance including: SAP RM solutions HCP add-ons Bolt-ons

28 Transition Paths for System Conversion to S/4HANA Business Suite 3 4 SAP S/4HANA 1610 SAP HANA System Conversion from SAP Business Suite to S/4HANA System Conversion from SAP S/4Finance to S/4HANA Upgrade within the S4/HANA product family 2 SAP S/4HANA, On- Premise Edition 1511 SAP HANA Business Suite SAP ERP 6.0, EHP xx Any DB or SAP HANA 1 SAP Simple Finance, On- Premise Edition 1503 SAP HANA SAP S/4HANA Finance 1605 SAP HANA Path Overall Approach Approach for SAP RM + HRC Products Migration to SAP HANA DB (if required), Installation of Software [EHP7 + sfin], FIN BASIS 747, and latest version of HRC Products Migration to SAP HANA DB (if required), Installation of Software [EHP8 + sfin], FIN BASIS 758, and latest version of HRC Products Migration to SAP HANA DB (if required), Installation of S4CORE Software, FIN BASIS 800, and latest version of HRC Products Migration to SAP HANA DB (if required), Installation of S4CORE Software v101, and latest version of HRC Products Identify & evaluate all customizations to SAP RM / HRC products that are still in use/required Upgrade to latest patch of HRC accelerators (if required) Migrate to the version of RM compatible with the version of target system Test all customizations that are needed after the migration & update (if required)

29 Transition Paths for System Conversion to S/4HANA (2) Business Suite 7 6 SAP S/4HANA 1610 SAP HANA System Conversion from SAP Business Suite to S/4HANA System Conversion from SAP S/4Finance to S/4HANA Upgrade within the S4/HANA product family 5 SAP S/4HANA, On- Premise Edition 1511 SAP HANA 9 Not Supported Business Suite SAP ERP 6.0, EHP xx Any DB or SAP HANA SAP Simple Finance, On- Premise Edition 1503 SAP HANA SAP S/4HANA Finance 1605 SAP HANA 8 Path Overall Approach Not Supported Installation of S4CORE Software, FIN BASIS 5 800, and latest version of HRC Products Installation of S4CORE Software v101, and latest version of HRC Products Installation of S4CORE Software v101, and latest version of HRC Products Installation of sfin Software (Upgrade), FIN Basis 758, and latest version of HRC Products Installation of S4CORE Software v101 (Upgrade), and latest version of HRC Products Approach for SAP RM + HRC Products Identify & evaluate all customizations to SAP RM / HRC products that are still in use/required Upgrade to latest patch of HRC accelerators (if required) Migrate to the version of RM compatible with the version of target system Test all customizations that are needed after the migration & update (if required)

30 Key Takeaways and Next Steps

31 Key Takeaways: SAP S/4HANA Finance enables reimagination, redesign, and re-implementation of Receivables Management Modern User Experience Simplified Data Model S/4 HANA Finance 02 Innovative Choice of Deployment Non-Disruptive Journey 31

32 Key Takeaways Receivables management continues to remain critical for credit-to-cash operations even on S/4HANA Classic credit management has been replaced by FSCM credit management in S/4HANA HANA Cloud Platform is a powerful option to built custom functionality into on-premise and cloud applications in S/4HANA Before embarking on a custom code migration project, teams have to assess processes in conjunction with optimizations possible in S/4HANA Certified solutions from SAP partners provide a zero-risk method to extend functionality 32

33 S/4HANA FSCM Impact Assessment Technical Assessment Functional Assessment Training Plan Housekeeping Testing Plan Effort Estimation 33

34 Questions?