FP&A and Financial Close at the Speed of Light Christian Lindholm, VP EMEA Financial Management Applications October, 2016
Is Finance today running at the speed of light?!? Can you respond to data requests in under a day? Need to analyse data more quickly Granularity is regularly sacrificed for the sake of speed Only 12% 90% agree 56% agree 2
SAP s Technology-enabled acceleration Global Finance & Administration s Vision of Finance 3
01101100111 Finance IT for the past 30 years Financial Accounting Entity Close Close Corporate Close Historic Regulator Reporting Profit Profitability and Loss and Disclosure Balance Cost Sheet Management Cash Flow Stakeholders Plan Predict/Model Strategic Planning Future 2013 2014 Today 2016 2020 Financial Actual vs. Budget Operational Planning What if Planning Profitability Forecast Periodic Forecast Cycle Performance Management Close Operational Management Transactions Suppliers Payment Order Delivery Invoice AP AR GL Payment Order Delivery Invoice Customers Investment $ Banks Employees
01101100111 HANA The Finance IT Evolution Regulator Stakeholders Historic Profit and Loss Balance Sheet Cash Flow Future 2013 2014 Today 2016 2020 Actual vs. Budget What if Profitability Forecast Performance Management Operational Management Transactions Suppliers Payment Order Delivery Invoice AP AR GL Payment Order Delivery Invoice Customers Investment $ Banks Employees
Central Finance S/4HANA FINANCE SAP ERP 6.0 SAP ERP 6.0 S/4HANA FINANACE Database HANA HANA VIEWS The Finance IT Revolution BOARDROOM (C4A) HANA FI CO Universal Fraud Management Journal T I Planning & Consolidation Cash Management
Digital Finance Implemented 7
Why is S/4HANA Finance Different From Stability Flexibility Logistics Document FI Document CO Document Totals & Indices Financial Accounting Pre-Defined Aggregates Totals & Indices Management Account. Processing Analytics To Stability Flexibility Logistics Document Universal Journal Entry HANA views on the fly Processing Single repository across applications Analytics 8
FP&A - the Key Driver for Succes Respondents with financial planning systems that are very tightly-integrated with core ERP systems are much more likely to say their IT systems substantially contribute to finance s ability to support decision making. Percentage of respondents in each category who say their companies IT systems substantially contribute to finance s ability to support decision making (n=134). CFO PUBLISHING LLC THE FUTURE OF FINANCIAL PLANNING AND ANALYSIS MAY 2015 9
Enterprise Planning with BPC Product Costing Planning Volume Planning Head Count, Salaries and Benefits planning Cost Centre & Liquidity Planning Usually Excel based local tools dependent on the creator Bottom up Planning tools Best-in-Class BPC Scope Extended BPC Scope Typical BPC Scope Top Down Planning Statutory & MGMT Data Capture Automated data feed (Single Chart of accounts) 10
SAP Business Planning and Consolidation Streamlined Planning, Budgeting, Forecasting and Fast Close Financial Consolidation Reporting & Analysis Planning, Budgeting & Forecasting ERP APO CRM LOB Structured Data SAP and Non-SAP Process Control and Guidance BPC Other Unstructured Data 11
The New BPC & ERP Integration Scenarios Stand-Alone Central Finance Fully Integrated BPC NW BPC NW S4HANA BPC NW SAP ERP/Other ERP SAP ERP/Other ERP S4HANA 12
What is SAP BPC optimized for S/4HANA? BPC10.1 Embedded Model Technology SAP S/4HANA Finance Data Model Content for FI-CO Planning 13
New Approach to ERP Planning Before in ECC Planning silos with separate data stores Long running batch jobs Peer-to-peer transfer programs Cumbersome process Many manual steps fault prone Simulation impossible S/4 HANA Business Planning Common Financial Planning model Leverage In-Memory-planning capabilities Faster planning cycles Better decisions through end-to-end simulation capabilities Expense Planning Profitability Planning P&L Planning 14
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Financial Close - the Key Driver for Success 20
Accounting and financial close Continuous accounting Automate consolidation and reporting to close faster with fewer errors Report live versus waiting for period-end to act sooner and improve results Provide real time visibility for compliance and control SAP S/4HANA Finance SAP Business Planning and Consolidation (Optimized for SAP S/4HANA Finance) Planning (Available Today) SAP HANA Consolidation (Planned) Universal Journal 21
Only SAP can change the calendar! COI etc. Intercomp Data upload Elimination Currency month 30. 31. U+1 U+3 U+5 U+10 Final Report Traditional Consolidation 22
Only SAP can change the calendar! COI etc. Intercomp Data upload Elimination Currency month 30. 31. U+1 U+3 U+5 U+10 Final Report Traditional Consolidation Continuous accounting (intercompany, currency translation, validation) COI etc. Elimination Final Report month 30. 31. U+1 U+3 U+5 U+10 Real-Time Consolidation Potential time saved 23
Digital finance: transforming finance for live business Long, complex IT projects Architecting new business models Flexible business modeling, deep analysis and rapid implementation of new business models Late, off target, inconsistent reports Insight in the hands of the business Instant insight-to-action anytime, anywhere enabled by a single source of truth Burning the midnight oil Lights out finance processes Automated and networked processes, eventdriven, and inherently compliant 24
Thank You 25