SAP Central Finance

with SAP Group Reporting

Discover the value of SAP Central Finance with an integrated
SAP Group Reporting deployment in SAP S/4HANA
SAP Central Finance with SAP Group Reporting | Discover the value of SAP Central Finance with an integrated SAP Group Reporting deployment in SAP S/4HANA

Discover the Value

What is SAP Central Finance? Your added value

Many firms find themselves having an • Uniform reporting on segment, entity • Unified financial reporting framework for
increasingly complex system landscape, and group level in one system at any local and group data access on an up-to-
consisting of SAP systems with different point in time based on real-time data date SAP S/4HANA landscape at any
releases and data models as well as replication. point in time.
non-SAP systems. Such complexity often
• Harmonized business processes allow • Financial document drill-down from
goes hand in hand with high efforts when
for a central execution of finance consolidation to operational finance
exchanging and bringing information
transactions for entities across different document on line item level providing
together while raising concerns on how to
systems. full level of detail.
best introduce or migrate to SAP S/4HANA.
• Benefit from SAP S/4HANA Finance • SAP Analytics Cloud (SAC) integration
With SAP Central Finance, financial Innovations (e.g. HANA based reporting providing meaningful data visualization
accounting transactions from various and analysis and SAP User Experience), and planning capabilities.
legacy systems can be brought together while having the option of consecutively
• Providing capabilities to run a
into one harmonized and optimized integrating source systems into the
continuous closing process from local
SAP S/4HANA finance system. From here, central SAP S/4HANA system.
close up to group close.
processes can centrally be executed for all
entities.

Fig. 1 – Example Architecture Simplified

Firms can profit from the highly
performant SAP HANA database, from
various analytical tasks to line item
SAP Analytics Cloud (SAC)
detail drill-downs. SAP S/4HANA Finance Disclosure Management
Management Financial Financial
Innovations, such as the SAP User Reporting Reporting Planning
Experience, enable usage of Fiori Apps,
KPI reporting and dashboards to aid
decision-making processes.
Embedded Analytics

SAP Group Reporting represents the SAP S/4HANA Group Reporting

next generation consolidation solution,
Universal Cons. Journal
also acting as a group financial data
platform including seamless integration
to operational accounting, planning and SAP S/4HANA Central Finance

reporting. This also addresses scattered

Universal Journal Planning Data
system landscapes by providing a
deployment option on a shared
SAP S/4HANA landscape.

Together on one common platform, SAP SAP SAP SAP Non SAP Non SAP
Central Finance and Group Reporting ERP ERP ERP ERP ERP
will represent the future finance system
landscape for mid-sized up to big
enterprises.

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 SAP Central Finance with SAP Group Reporting | Discover the value of SAP Central Finance with an integrated SAP Group Reporting deployment in SAP S/4HANA

A Closer Look at SAP Central Finance

and Group Reporting

SAP Group Reporting in a Nutshell SAP Central Finance at a Glance

• Ensure a consistent group and local • With SAP Master Data Governance • The SAP Application Interface
close based on shared master and (MDG, embedded runtime for SAP Framework (AIF) helps technical users
transactional data. Central Finance) and the cost object implement interfaces while supporting
mapping framework, master data, e.g. business users in monitoring and error
• Provide capabilities to process the
chart of accounts or cost objects can be handling.
intercompany matching reconciliation
mapped, harmonized and distributed
and FX currency translation before the • Reconciliation reports allow for a
to SAP Central Finance enabling
actual period-end processing. detailed check if FI/CO documents have
processing, planning and reporting.
been transferred correctly via document
• Based on the shared data basis SAP
• SAP Central Finance works with key count, balances and line item details.
Group Reporting provides a full audit
interfaces, replicating cost objects,
trail from consolidation entries down • Various processes can be executed
FI/CO postings, CO internal postings,
to the operational financial documents, centrally, e.g.:
commitments and WBS elements. With
including access to all universal journal
double click navigation users can drill- – Cash Management
dimensions for analytical purposes.
down to documents in the source – Intercompany reconciliation
• Similiar to SAP Central Finance also system. – Centralized WBS Reporting incl. Asset
non-SAP sources can be connected. under Construction settlement

• Cover several consolidation methods • Harmonized management and legal

including matrix consolidation (since reporting is available for different roles
SAP S/4HANA 1909). in an organization, such as General
Ledger Account, Financial Analyst or
Accounts Payables/Receivables Manager.
Fig. 2 – Pillars of a SAP Central Finance and Group Reporting
Implementation

Multiple
Reporting
Scenarios

Harmonized
Central Processes
Master Data

Reconciliation Shared data

Reports incl. Drill-down

Flexible Error
Handling

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SAP Central Finance with SAP Group Reporting | Discover the value of SAP Central Finance with an integrated SAP Group Reporting deployment in SAP S/4HANA

Lessons Learned

SAP Central Finance and SAP Group Reporting are not necessarily a solution for …
1. … poor data quality.

2. … a non-efficient data management process.

3. … redundant data.

4. … a comprehensive integration of non-SAP systems (e.g. commitments).

5. … high reconciliation efforts.

6. … a centralization of processes.

7. … lack of system & process governance.

8. … long lasting closing processes.

9. … inefficiencies in intercompany-reconciliation processes.

10. ... scattered system landscapes for ERP, consolidation & financial reporting systems

But SAP Central Finance and SAP Group Reporting will help improve finance operations by …
1. … generating meaningful insights into financial data via real-time replication of financial documents from
various source systems (SAP & non-SAP).

2. … enabling enterprises to establish centralized financial processes to improve financial figures (e.g. Days
Sales Outstanding through centralized open item management).

3. … efficient finance transformation by providing powerful mapping capabilities to harmonize financial data
and steering models.

4. … a reduced number of iterations during intercompany-reconciliation and consolidation processes by

providing access to information on line item level, including drill-down and drill-back to source documents &
systems.

5. … elimination of redundant data storage and seamless integration to state-of-the-art reporting

functionalities.

6. … providing state-of-the-art intercompany reconciliation capabilities via SAP Intercompany Matching and
Reconciliation (ICMR) to increase efficiency during period closing.

7. … harmonizing & streamlining the financial system landscape by integrating the financial operation &
consolidation activities within one system and providing easy-to-use reporting capabilities.

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 SAP Central Finance with SAP Group Reporting | Discover the value of SAP Central Finance with an integrated SAP Group Reporting deployment in SAP S/4HANA

Project Considerations

Consider the following topics while implementing SAP Central Finance & Group Reporting

Aligning master data is a Define and communicate clear Validate requirements for users
challenging, but necessary path forward from each ERP
process Clarity regarding which processes Depending on the ERP system
Set expectations on the level of will continue in legacy systems vs. and integration, ERP data updates
effort required to align master data performed in SAP Central Finance is may vary in SAP Central Finance.
and establish a new hierarchy in critical to everyone moving forward Establishing expectations early on
SAP Central Finance. Figuring out together. Identifying nuances in with users based on specific ERPs
the appropriate relationships and legacy processes early on will can support buy-in.
building agreement can take time, help define the configuration of
hence is critical to a successful SAP Central Finance and enable a Analyze and commit on the global
implementation. Also take key smooth transition. processes to avoid differences
SAP Group Reporting objects (e.g. during parallel implementation.
consolidation unit, FS item) into In addition, start an early
account while defining master data communication concerning the Consider the consolidation
design. future of legacy consolidation requirements accordingly, as the
systems towards corporate integration will increase using
functions. Group Reporting.

System design and scoping Timing is key Clear responsibilities and

Define a clear set of key design Like for SAP S/4HANA change management
principles at project start and implementations, the right timing To make a SAP Central Finance &
evaluate source systems and the and roll-out strategy is key for a Group Reporting implementation
system landscape in respect to the successful project. Identify the a success story establish solution
guidelines. right pilot go-live by focusing on owners with corresponding
your key processes and pain- knowledge by project start incl.
The result will create insights and points. Upcoming SAP innovations strong management buy-in.
define requirements for data will impact the project timeline,
mapping efforts and the future hence stay in contact with your SAP Do not underestimate the
system landscape. representative. For consolidation it change within an organization
is important to evaluate the effort out of Central Finance and Group
Also create a clear financial to provide data to the legacy system Reporting. The tight integration &
reporting scope and decide the vs. providing data from legacy the shared data basis will require a
tools and data sources to be used. systems to SAP Group Reporting common understanding of the data
Consider the reporting recipients from the beginning. model to increase acceptance.
while defining your strategy.

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SAP Central Finance with SAP Group Reporting | Discover the value of SAP Central Finance with an integrated SAP Group Reporting deployment in SAP S/4HANA

Deloitte Kinetic Finance Start-Up „Let the Machine do the Heavy Lifting”
Kinetic Finance Startup (KFS) is a zero-footprint, non-invasive, AI-enabled path achieving
a Kinetic Finance powered by SAP S/4HANA Central Finance. Designed with greenfield
projects in mind, KFS uses digital automation to enable a touchless implementation
accelerating your SAP S/4HANA implementation.

Fig. 3 – Improvement Cycle for automated SAP Central Finance implementation

Auto-Intake Intelligent Harmonization

• Pre-built connectors to existing ERP systems • AI-driven harmonization of existing
• Auto-extraction of existing data and configuration
configuration design, master data
and transactional balances End-to-End Orchestration
• Single user interface to
tie together each step
of transformation process
• Industry best practices
n
ma

Iterative Input • Ready-to-go templates Auto-Implement

Hu

• Initial scope input • Bots implement the system:

• Analyze results • Configure and test results
• Iterative refinement of requirements • Perform data loads
• Auto-reconciliation of results
• Document process flows,
configuration and tests

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 SAP Central Finance with SAP Group Reporting | Discover the value of SAP Central Finance with an integrated SAP Group Reporting deployment in SAP S/4HANA

When Is It Suitable For Your Company

Complex and growing system landscape

If you are facing a high complexity of system landscape consisting of different SAP and/or non-SAP systems with
different releases and different configuration, you can simplify your finance environment by implementing a single
central system instance, overlapping governance models of local systems as a side instead of a full integration
solution.

SAP Group Reporting to complement your Central Finance System

In order to reduce complexity of your system landscape running SAP Group Reporting on your Central Finance
instance will contribute to this overarching goal, by replacing the existing BW based consolidation solution.
Following this solution approach will also ensure a seamless integration of the operational financial documents into
your consolidation figures.

Frequent M&A activities

You can plug-in the systems of your merged or acquired companies in a smooth way. SAP Central Finance can
ensure a non-disruptive integration of new entities with different organizational structures and set of master data
without running long term projects.SAP Group Reporting as an integrated solution within your financial system
landscape will ensure a seamless reporting from a group perspective for your acquired companies from the
beginning with reduced manual effort.

Lack of financial data transparency at group level and in real-time manner

SAP Central Finance enables consolidation of financial information from various systems (SAP and non-SAP) on one
common platform. This leads to an improvement of your reporting and planning activities, on the fly across various
entities and units.SAP Group Reporting implemented in an integrated system on top of your operational system will
enable a seamless financial reporting across different levels of detail.

Streamlined Closing Process

Running day-to-day finance processes, reporting and period-end closing, including consolidation on a single system,
supported by SAP Central Finance & SAP Group Reporting will lift your closing process schedule to the next level.
Based on permanent reconciliation activities and the shared data basis, deviations and clarification needs will be
identified earlier and accelerate the overall closing time.

Fragmented and dispersed finance function

With SAP Central Finance and SAP Group Reporting you can streamline your processes by executing business
processes centrally (e.g. centralized execution of payments, central view on cash and liquidity management). SAP
Central Finance will also make your shared-service-centers more efficient by centralizing financial operations and
reporting on a single system.

SAP Central Finance as migration option

SAP Central Finance can be seen as a step-by-step migration to a Central Finance System, with low risk of
implementing SAP S/4HANA technologies for the finance department. In the target system a harmonized template
can be designed to lift supply chain processes from the source ERP to the target system in the finalized state (no out
of the box solution).

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Contact us

Nicolas Roussel Ralf Dukek

Partner Director
Enterprise Performance Enterprise Performance
SAP SAP
Tel: +49 (0)221 97324 394 Tel: +49 (0)89 29036 7644
[email protected] [email protected]

Christian Bauer Simon Drießlein

Senior Manager Manager
Enterprise Performance Enterprise Performance
SAP SAP
Tel: +49 (0)711 16554 7325 Tel: +49 (0)69 97137 312
[email protected] [email protected]

This presentation has been solely prepared for the cooperation with SAP in accordance with the underlying contractual agreement. The
presentation is to be treated confidential. Any disclosure to third parties – in whole or in part – is subject to our prior written consent.

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Published 3/2021