SAP S/4HANA Finance: Operational Central Finance

Javaid Awan
Global Solution Owner – S/4HANA Central Finance & Machine Learning
Agenda

v Process Orchestration
v Data Management
v Accounts Receivable and Payable
v Credit Cards
v Pre-Consolidation
v Three Way Matching
v Cost Management
v Asset Accounting
v Cash Management & Payments on Behalf
v Central Closing
v Tax Compliance

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Business Architecture

Today Back Office Middle Office Front Office

Middle Office
Back Office

Today/Future Front Office

Third
Outsourcing Party/TPL/Tolling

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Role of Shared Services is Changing

Processing Analyse Orchestrate

‘doing’ ‘Thinking’ ‘Driving Business’

Accounting
Analytics Planning/Controls

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Process Orchestration
Process Orchestration – System of Record Shift

Local Payments Central Payments

Process Shift

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Process Context & Data Quality

Co.Code/GL Account Customer Product Profit CC Cost C. WBS Ship To Sold To ……

Gross Margin X X X X X X

A&P X

Opex/Capex X X

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Three Way Matching
Central Finance & Three Way Matching Process Challenges

PO GR IR

Ad hoc Cost Centres Local/Direct to Shared Service

Indirect Lower Value Simpler Receipting Physical Scanning

Procurement Consumables Notification Approvals and Rules
Workflow

Heuristics Maintenance location Local/Direct to shared service

Direct High Value Manufacturing Location Tolerances

Procurement Confirmations IB deliveries Auto Invoice Generation
No Workflow Counter Confirmations Inventory linked invoices

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Central Finance & Three Way Matching Options

PO GR IR

• Ariba or • Ariba or • Ariba

Indirect • MM in CFIN • MM in CFIN • Source MM

Procurement • Source MM • Source MM • CFIN MM
• Manual Invoice if no GR
• OpenText VIM in CFIN

Direct • Source MM • Source MM • Source MM

Procurement • OpenText VIM in CFIN

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Three Way Matching with a Custom MIRO

SAP Source
System 1

SAP Source Central Finance

System 2 S/4HANA

SAP Source Custom

System 3 MIRO

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 OpenText with Central Finance
• Login to cFin Instance
• Reference PO in source
• Carry out workflow in cFin User
• Carry out VIM checks in cFin
SAP Source System 1
• Upon approval/validation make posting in source
VIM
• Accounting document replicated in cFin automatically
• Link CFIN Accounting Document to VIM Document
• Link VIM OCR image/XML to CFIN accounting document
Central Finance
• Central VIM will create a unique Number and have the same number SAP Source System 2
in source system for VIM
• OT charges by number of invoices in central system
VIM S/4HANA
• Non-SAP users need additional OT/SAP licenses Central VIM
• Source system should be ECC6 (no EHP dependency)
• OT uses Co. Code to determine source system and transfers control
to source system and this is where processing happens
SAP Source System 3 Central
OT Archive Server OCR
• VIM analytics will happen in cFin from version 7.5 VIM uses a remote VIM
read. Remote system would have aggregated information as well

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OpenText with Central Finance - Video

Central Finance Hosting VIM in Same Instance with Connection to Source

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Receivables, Payables, Cash and Payments
 Payables Process without Central Payment

Open Item

Invoice
Source PO GR Accounting Payment Bank Rec.
Receipt

Central Finance Accounting Report

Open or Cleared item

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 Payables Process with Central Payment & Ariba for Direct/Indirect

Technically Cleared

Invoice
Source PO GR Accounting
Receipt

Ariba Invoice
PO GR
Receipt

Open Item

Invoice
Central PO GR Accounting Payment Bank Rec.
Receipt
Finance

Real Time ML Cash

POBO
CM App

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 Payables Process with Central Payment & OpenText VIM

Technically Cleared

Invoice
Source PO GR Accounting
Receipt

VIM
Analytics

Open Item

VIM Scan VIM Apply VIM Post

Central Accounting Payment Bank Rec.
Invoice Rules Invoice
Finance

Real Time ML Cash

POBO
CM App

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 Receivables Process without Central Payment

Open Item

Source SO OD/GI Billing Accounting Payment Bank Rec.

Central Finance Accounting Report

Open or Cleared item

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 Receivables Process with Central Payment

Technically Cleared

Source SO Delivery/GI Billing Accounting

Open Item

Central Credit Mgt Disputes Accounting Payment Bank Rec.

Finance

Real Time ML Cash

Collections COBO
CM App

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Inter-Company and Central Finance
Cost Management
OPEX Management

Goods
Cost Centre
Receipt

Spend Management
All Orders
Any Source Central Finance
Types

Invoice
WBS
Receipt

Custom

Requires Master Data for Sync and Mapping

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CAPEX Management Reporting Scenario
Source S/4HANA

PO GR IR Payment Bank Rec.

Asset Number Direct

Capitalisation

APC & Depreciation

Central Finance
IM or Asset or WBS/IO In-Direct
Cost Object Capitalisation

Manual
Capitalisation

No Asset Management in Central Finance

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CAPEX Management System of Record Scenario
Source

PO GR IR Payment Bank Rec.

WBS/Order

WBS

Central Finance
PM Order in or Cost Object in

APC & Depreciation

WBS/IO Source AuC

Direct
Capitalisation

Manual
Capitalisation

Ariba PO GR

S/4HANA Core
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S/4HANA CO-PA & Central Finance

SAP Source
Costing Based
Reconfigure Source

Reconstruct & BADI

CFIN Account
Based

Which line are you talking about?

Co. Code Customer CG MG SKU
SAP Source
Revenue 100.00 30.00 70.00 100.00 80.00
Account Based Net Revenue 95.00 25.00 95.00 60.00
65.00
COGS 25.00 20.00 25.00 25.00 30.00
GM 70.00 5.00 40.000 70.00 30.00
A&P 20.00 10.00
OPEX 10.00
Net Profit 40.00 30.00 70.00 30.00

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Tax Compliance
Indirect Tax and Compliance

S/4HANA

Financial Tax
CFIN ACR
Posting

Government Gateway
FIORI

ACR CDS
Table Content
Logistics Tax Data With Table as data
Capture
source

S/4HANA

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Closing & Central Finance
Closing from a Business Perspective

Central
Central Finance Central Finance
Local

Per Instance Side cart BPC/BFC

Entity Group

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Landscape of Closing
Traceability Traceability

Buy, Make Valuate &

Sell
& Move Report

Valuate, Allocate,
POs, GR, MIRO, Reconcile, Settle GI, Billing Run,
Service MM Period Comply, Report Rev Rec
C/F

Valuate, Allocate,
POs, GR, MIRO, Reconcile, Settle GI, Billing Run,
Trading MM Period Comply, Report Rev Rec
C/F

Valuate, Allocate,
POs, GR, MIRO,
Reconcile, Settle GI, Billing Run,
Manufacturing MM Period
Comply, Report Rev Rec
PC, CCS
C/F

Legal and Fiscal

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Impact on Business Process of Closing & Logistics

High Project Development

Automate
i.e. FSCM Rollout by
i.e. Three Way Matching
Co. Code
Volume

Execute Locally
Process Governance
Low

i.e. Product Cost

i.e. Master Data
Planning

Low High

Frequency

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Orchestration of Closing

Redwood

SAP Source System S/4HANA Core

MM Period, Product Cost Planning, Billing Run,
Financial Closing Cockpit
Material Valuations, Material Ledger etc.

Finance, Controlling, Treasury, Planning &

Consolidation

Accounting Documents Central Finance

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Q&A
 Thank you
Contact information:

Javaid Awan
Solution Owner, SAP S/4HANA Finance (Central
Finance)
SAP Germany

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