Slides-for-Benefits-for-Finance-moving-from-ECC-to-S4HANA-Final.pdf

Moving to S/4HANA:
Benefits for Finance
Birgit Starmanns
Kevin McCollom
SAP

2 © 2021 ASUG Confidential
Key Outcomes and Objectives
1. Introduce Main S/4HANA Improvements for
Finance
2. Identify Approaches for Moving to S/HANA
3. Discuss Additional Business Value Beyond
S/4HANA for Finance

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© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ
▪ SAP Vision for Finance Transformation
▪ SAP S/4HANA delivering on the vision of Finance Transformation
▪ Moving to SAP S/4HANA
▪ Recommendations for add-on licenses
▪ Discussion
Agenda

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Finance is at The Center of Enterprise Transformation
Business transformation requires finance
• Establish billing and payment
processes for new business models
• Steer the enterprise transformation to
ensure it is financially viable
• Ensure digital trust and compliance of
new business models
Finance Transformation
Supply Chain
Transformation
• Optimize supply chain networks
• Modernize production with IoT
• Provide smooth delivery experience
Customer Experience
Transformation
• Build customer trust and loyalty
• Create customer-specific offerings
• Provide delightful buying experience

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SAP’s Vision of Finance Transformation
From daily routine to supporting growth and forward looking insight
Running
the Business
Insights
Operations
Support
Strategy
Operations
Forward
looking
Predictive
Insights
Real-time
Insights
Backward
looking
Deliver
Insights
Operations
Backward
looking
Real-time
Insights
Predictive
Insights
Automation
Cost-efficient
and compliant
finance processes
Advanced
Analytics
Proactive
business
steering

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▪ Discussion
Agenda

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Benefits for Finance from SAP S/4HANA
Consistent, Intuitive
& Efficient
User Experience
delivering a positive experience
working with both Analytics and
Transactions
Fundamental
Enhancements to Core
Finance Processes
that will make your life
easier
An Integrated Data
Platform
providing a single version of
financial truth

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& Efficient
User Experience
Fundamental
Finance Processes
easier
An Integrated Data
Platform
financial truth
Transactions

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Intuitive Assisted User Experience
Fiori will help extend the use of S/4HANA to even casual users…
▪ Single Entry Point
▪ Domain-specific information and actions
▪ Enter details and explore in depth
▪ 1700+ Fiori apps for SAP S/4HANA, 600+ specific to Finance
▪ Fiori does need to be switched on and deployed…
Find out how you can take advantage of SAP Fiori with our SAP Fiori lighthouse scenarios designed to deliver immediate business benefit to SAP S/4HANA customers.
Me Area
Viewport Notifications

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SAP S/4HANA Embedded Analytics
▪ Role based
analytical insights
▪ One company wide KPI
repository
▪ Based on
SAP Virtual Data Models
▪ One click away from the
Fiori Launchpad

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SAP S/4HANA with Fiori accelerated Business Processes
Reduced manual interactions increases business efficiency and simplifies users life
Process receivables
Click-through video*
SAP GUI SAP Fiori
Duration: 2:12 min Duration: 0:47 min
Clicks: 39 Clicks: 11
Screen changes: 8 Screen changes: 2
Fields filled: 5 Fields filled: 2
64% (85 sec) reduction in duration
71% (28) reduction of clicks
75% (6) reduction in screen changes
60% (3) reduction of fields filled
Clear incoming payments
Click-through video
SAP GUI SAP Fiori
Post incoming payments
Click-through video
SAP GUI SAP Fiori
Clicks/Tabs: 27/2 Clicks/Tabs: 17/2
37% (10) reduction of clicks/tabs
Post General Journal Entry
Click-through video
SAP GUI SAP Fiori
Duration: 49 sec Duration: 49 sec
Analyze Financial Balance Sheet
Click-through video
SAP GUI SAP Fiori
Manage vendor line item
Click-through video
SAP GUI SAP Fiori
Duration: 52 sec Duration: 50 sec

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& Efficient User
Experience
Fundamental
Finance Processes
easier
An Integrated Data
Platform
financial truth
Transactions

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Used for Master Data only
MATDOC_
EXTRACT
MSEG
MATDOC
On the fly aggregation and compatibility views for
indices and obsolete tables
Document
Header
incl. Status
Item incl.
Status
VBFA
(simplified)
PRCD_
ELEMENTS (new)
FAAT_PLAN
_VALUES
ACDOCA
FAAT_YODA
FAAT_DOC_IT
Document
Header Item
MSPR
MARC
MKOL MSLB
MARD
MSKA
MSKU
MCHB
CKMLPP
CKMLCR
MBEW
QBEW
OBEW
EBEW
BSEG
BKPF
VBRP
VBRP
VBAP
VBAK
LIKP
VBRK
KIPS
VBAP
VBAK
VBUP
LIKP
VBRK
LIPS
VBUK
Material Quantities
VRPMA
VBOX
VAKPA
VLKPA
VAPMA
LKPMA
KONV
VRKPA
VBFA
Header Item Indices
FAGLF
LEXA*
BKPF
LFC3
COSS
COBK
FAGLF
LEXT*
KNC1
COEP
ANEK ANEA
GLT0 KNC3
ANEP
BSEG
MLHD*
LFC1
MLIT*
Sales
MLCR*
ANLC
COSP
ANLP
MLCD*
BSAD
FAGL
BSIS
BSIK
BSIS BSAS
BSID
CKMI1*
BSAK
FAGL
BSAS
BSIM*
Document Totals Indices
Finance
MSTE
MKPF
MSLB
MSSL
MSSA MSSQ
MSTQ
MSKUH
MSTB
MARC MCHBH
MKOL
MCHB MSKU
MARD
MSKA MSPR
MSTQH
MKOLH
MARCH
MSSQH
MSSAH MSTBH
MSTEH
MSPRH
MARDH
MSLBH
MSKAH
Material Document
Stock Aggregates
History
Sales Order
Delivery
Billing Document
Status Info
Conditions
Document Flow
GL, AR, AP
New GL
CO
AA
ML
Index for Rebates
Header Item
Hybrid: Master Data with Stock Aggregates
Aggregates
MBEWH
MBEW
OBEWH
EBEW
QBEW QBEWH
EBEWH
OBEW
CKMLCR
CKMLPP
Valuation in MM or Valuation in ML
Valuation in ML
Material Values
Aggregates
Document
Inventory
movements
History
Hybrid: Master Data with
Valuated Stock
ML Valuation
Simplification of the Data Platform
Enables users to access information in a radically different way
SAP
Business Suite

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MATDOC_
EXTRACT
MATDOC
On the fly aggregation and compatibility views
for indices and obsolete tables
Document
Header
incl. Status
Item incl.
Status
VBFA
(simplified)
PRCD_
ELEMENTS (new)
FAAT_PLAN
_VALUES
ACDOCA
FAAT_YODA
FAAT_DOC_IT
Document
Item
MSPR
MARC
MKOL MSLB
MARD
MSKA
MSKU
MCHB
CKMLPP
CKMLCR
MBEW
QBEW
OBEW
EBEW
BSEG
BKPF
VBRP
VBAP
VBAK
LIKP
VBRK
KIPS
Material Quantities
Sales Finance
Material Document
Header Item
Material Values
Used for Master Data only ML Valuation
Simplification of the Data Platform
Enables users to access information in a radically different way
SAP S/4HANA Benefits
▪ Simplified Data model
(Real-time in-Memory database)
▪ Real-time ad-hoc analytics
(no aggregations)
▪ Faster processing allowed
reengineering of processes
(no batch jobs required)

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SAP Business Suite - Modular Data Platform
Asset Accounting
Company Fixed Asset …
General Ledger
Ledger Company Account
Profit
Center
…
Management Accounting
Controlling
Area
Cost Element …
Profitability Analysis
Operating
Concern
Market
Segment
…
Material Ledger
Company Product …
S
▪ No real-time reconciliations
▪ No real-time aggregations

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▪ Instant Insight
▪ Flexible Real Time Analytics
SAP S/4HANA Finance Universal Journal
Benefits of the single Source of Truth
▪ No Reconciliation needed
▪ No Replication needed
▪ No Stored Aggregations
▪ Drill to Detail
General Ledger
Ledger Company Account
Profit
Center
…
Management Accounting
Controlling
Area
Cost Element …
Profitability Analysis
Operating
Concern
Market
Segment
…
Material Ledger
Company Product …
Asset Accounting
Company Fixed Asset …
Universal Journal
Powered by SAP HANA
Ledger Company
Account/Cost
Element
Profit
Center
Coding
Block
Fixed
Asset
Market
Segment
Product
Customer
Fields

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Imagine being able to:
▪ Build a steering model where the profit and loss
statement and detailed profitability reporting are
sourced from the same document
▪ Access asset and inventory details without
jumping to a separate sub-ledger
▪ Improve transparency into production and
maintenance thanks to additional reporting fields,
such as work center and operation, in the journal
entry
▪ Enrich project reports with customer and product
details
Benefits of the Universal Journal

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& Efficient User
Experience
Fundamental
Finance Processes
easier
An Integrated Data
Platform
financial truth
Transactions

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SAP S/4HANA Finance What’s Changed?
Chief Financial Officer
Vice President,
Finance
Head, Corporate
Reporting
Head, Finance
Operations
Head, Corporate
Treasury
Risk, Compliance
& Audit Officer
CISO, CIO
Financial Planning
& Analysis
Accounting
& Financial Close
Finance
Operations
Treasury
Management
Enterprise Risk
& Compliance
Security & Privacy
Planning, Budgeting,
and Forecasting
Financial Accounting Record to Report
Payments and Bank
Communications
Enterprise Risk
Management
Access Governance
and Identity Management
Profitability and
Cost Management
Entity Close Order to Cash
Cash and Liquidity
Management
Controls and Compliance
Management
Single Sign-on and
Authentication
Management Reporting Corporate Close Procure to Pay
Debt and Investment
Management
Automated Monitoring
and Screening
Access Monitoring
Financial Reporting Indirect Tax Management
Financial Risk
Management
Policy Lifecycle
Management
Data Loss Prevention
Cybersecurity
Direct Tax Management Real Estate Management
Risk Management
for Commodities
Audit Management
Data Protection and
Privacy Governance
Financial Close
Governance
Travel and Expense
Management
Treasury Governance
International Trade
Management
Financial Shared
Service Management
Financial Process
Governance
Finance & Risk
3
10
8 9
6
5
4
2 7
1
Summary and
next Section…

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▪ Closing the period in SAP
ECC requires numerous,
time consuming steps
including reconciling GL and
sub-ledgers
▪ Many batch processes are
only run at period end due to
time constraints - delaying
management and statutory
reporting
▪ Little to no visibility during
the period since the close
process is so demanding
▪ Universal Journal is reconciled
by design which means fewer
closing tasks to perform
▪ Many tasks can be run in real-
time providing better visibility
throughout the period and
reducing the period-
end workload
▪ Earliest, high-quality, multi-
dimensional managerial
insights using real-time
derivations and predictive
accounting for some scenarios
Current Challenges
Financial Close (Continuous Close)
Execute a faster or even continuous close with less effort
Period-
end
time
Period-
end
time
Fast close
Continuous close

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Margin Analysis
Determine gross margin faster, simpler and with more granularity
▪ Full visibility across all elements
of margin, including dimensionality
such as market segment inherent in
the Universal Journal
▪ SAP S/4HANA combines
functionality from CO-PA with
innovations based on the Universal
Journal to provide flexibility
▪ Embedded Analytics in SAP
S/4HANA makes information easily
accessible
Current Challenges
▪ Difficult to get end-to-end visibility as
the elements of margin are split
across modules, resulting in high
reconciliation efforts
▪ While CO-PA can be used it lacks
flexibility
▪ Large complex Excel spreadsheets
are built using extracted information
and are arduous and error prone

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▪ No visibility to the financial impacts of
operational activity recorded in the
ERP system
▪ Forecasting the impact of sales orders
& purchase orders is manual, time
consuming & error prone
▪ Simulating transactions is limited and
not possible cross application
Predictive Accounting
Provide forward looking financial insights based on operational transactions
Current Challenges SAP S/4HANA Benefits
▪ Predictive (projected) entries are
generated from sales order
transactions, reducing forecasting
efforts
▪ Simulated transactions can be
generated isolated from GAAP
relevant postings (using an extension
ledger) and used for internal
reporting purposes
▪ A more accurate view of future
financial impact with drill-down to
the operational transactions and
analysis capabilities

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▪ Decentralized view on customer
accounts (including expensive, hard
to maintain, 3rd party solutions)
result in limited insight into team
efficiency and effectiveness
▪ ERP screens and transactions
overloaded with unnecessary
entry fields not needed for task
execution
▪ Transactions, forecasts,
recommendations and simulations
often after-the-fact based instead of
predictive
Managing Receivables
Unified view, real-time analytics, and streamlined design
▪ Unified Master Data – single view of
the customer, allowing for a guided
focus on key customer accounts and
management of receivables across
multiple business units
▪ Unique combination of operational
and transactional data for better
decisions – in real time, on any device
▪ Enhanced ease of use and improved
productivity
▪ Option to upgrade to S/4HANA
Receivables Management with
enhanced automation for cash
collection and credit processes
(*requires additional license)
Current Challenges
(included in S/4HANA Finance)
Customers with SD-Credit Management

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▪ Ensuring data protection and
security is a complex moving target
▪ Limited visibility into system
activities
▪ Difficult to determine business
impact of traditional security
processes
▪ Limited controls and automation for
privacy compliance
Managing Security, Protection and Privacy
Administer and control security and privacy risk
▪ Security and governance are
simplified with integrated access
governance and HANA-based real
time monitoring
▪ Data is protected with policy-based
access, key management, and native
encryption
▪ Enhanced reporting and analytics
provide unified actionable features
▪ Support privacy-by-design when
integrated with privacy governance
Current Challenges SAP S/4HANA Benefits

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▪ Cumbersome processes with
no common user interface
and heterogeneous single
point solutions for every
country
▪ Error prone manual report
data extraction, collection and
generation
▪ Lack of visibility to reporting
status and cumbersome data
display and review
Legal and Tax Reporting
A centralised solution
▪ More efficient statutory reporting
process with automated creation
of reporting tasks and a single
entry point
▪ Broader range of reports, real
time, without data replication
and reconciliation with better
auditability
▪ Dashboard provides streamlined
overview of due dates, reporting
status, including corrections
Current Challenges
S/4HANA Benefits
(Basic Advanced Compliance
Reporting - included)

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Continuous Close
High-quality multidimensional insight, earlier and with less effort
Integrated Intercompany
Reconcile intercompany transactions at source before consolidation elims
Margin Analysis
Continuous, high granular analytics of margin, reconciled by design
Embedded Secure Data Access
Business role concept enabling effective management & control
Inventory Accounting
Simplifying material valuation, product cost analysis and actual costing
Managing Receivables
Unified view, real-time analytics, and streamlined design
Universal Allocations
Increased transparency in cost allocation modeling and execution
Cash Management
Better data architecture and UI for reporting & monitoring Cash
Predictive Accounting
Future-fact-based decision making based on operational information
Advanced Compliance Reporting
Centralised Legal and Tax Reporting increases compliance
Key Benefits for Finance moving to SAP S/4HANA
Embedded Reporting and Analytics
Intuitive Assisted User Experience Fiori simplifies learn and use for both Analytics and Operational transactions,
coherent across all devices
Flexible ad-hoc reporting and insight to action, based on live transactional
data in a single financial truth

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▪ Discussion
Agenda

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Our strategic choice for companies
ready to embrace the future of ERP
with a new implementation and
pre-defined content
SAP S/4HANA: The right fit for every organization
SAP S/4HANA Public Cloud SAP S/4HANA Private Cloud SAP S/4HANA On-Premise
Complete, modern, SaaS ERP Cloud value, traditional flexibility & full scope Total control and individualization
As a Product
As a Service
ONE Data Model • ONE Semantic • ONE User Experience
Designed to provide innovation and
cloud value while allowing customers
to retain their investments by
converting their existing system(s)
Innovative, intelligent ERP for
customers that require maximum
control of their ERP system,
usually in their own data centers
or with existing IaaS partnerships

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SAP S/4HANA Transition Paths
System A
SAP ECC 6.x
Any Enhancement
Pack
New or existing SAP customer
implementing a new SAP S/4HANA
or SAP S/4HANA Cloud system
with an initial data load
System B
System C
Complete conversion of an
existing SAP Business Suite
system to SAP S/4HANA
Transformation of one or multiple
Business Suite systems into
one global SAP S/4HANA
SAP S/4HANA Cloud
SAP S/4HANA
New
Implementation
Legacy
System
System
Conversion
System/Landscape
Transformation
Central Finance
System A
System B
System C
Replication of current fragmented
finance (only) landscape into one
central SAP S/4HANA Finance system
SAP S/4HANA Cloud
SAP S/4HANA
SAP S/4HANA Cloud
SAP S/4HANA
Instant data replication
SAP S/4HANA Cloud
SAP S/4HANA

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SAP S/4HANA Move Planning Tools
Business Scenario
Recommendations (BSR)
Readiness
Check (RC)
Fiori Apps
Recommendations (FAR)
For Business and IT Leaders
Fiori app recommendations for Finance
Based on actual usage in production system
Takes just 5 minutes to request: link
For Project Leaders
Drive innovation adoption
Identify business scenarios benefiting from
SAP S/4HANA
See this SAP Blog with the latest updates for
SAP S/4HANA 1909
For IT Leaders
Checks the readiness of the running SAP ERP
6.x system to migrate to SAP S/4HANA.
See this SAP Blog for more information
Small / Midsized Business Large Customers Strategic Customers

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▪ Discussion
Agenda

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There are significant potential benefits for Finance moving from ECC to S/4HANA…
… but for a relatively small incremental cost the BENEFIT CAN BE MUCH BIGGER
SAP recommends that every customer moving to S/4HANA from ECC implements the following
solutions for which additional licenses are required:
Recommended Add-On Licenses
▪ SAP Analytics Cloud (for reporting, analysis and financial planning)
▪ SAP S/4HANA Group Reporting (for financial consolidation)
▪ SAP S/4HANA Cash Management (basic cash management is already included with S/4HANA)

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▪ Traditional consolidation tools require multiple
extract, transform and load steps – inefficient,
time-consuming and restricted to period-end
▪ Limited dimensionality in the consolidation
system for financial analysis with limited
drilldown
▪ Frequent black box for items in consolidated
financial statement
▪ Distinct technologies with separate data models
and user experience
SAP S/4HANA Group Reporting
More transparent, more efficient group consolidation
Converting to S/4HANA
Without S/4HANA Group
Reporting
With S/4HANA Group
Reporting
▪ Group consolidation is in the ERP –
working directly on the Universal
Journal ensuring accelerated
processing and full drilldown to detailed
entries
▪ Sophisticated financial analysis across
dimensional detail of universal journal
▪ Consolidated financial statement fully
substantiated by accounting journals
▪ Shared technology, data model, apps,
master data, user experience

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▪ Traditional planning tools require
multiple extract, transform and load
steps – inefficient and time
consuming
▪ Master data must be maintained in
multiple places
▪ Allocation logic has to be duplicated for
actuals and plans
▪ Roles and security have to be
maintained in multiple systems – and
kept synchronised to avoid breaches
SAP Analytics Cloud for Financial Planning
Converting to S/4HANA without
SAP Analytics Cloud
SAP Analytics Cloud
for Financial Planning
▪ Live analytics means data does not
have to be transferred between
systems
▪ Out-of-the-box templates for Real-
time analysis of plan vs actual
▪ Multiple iterations of plan and budget
can be stored in the Cloud without
impact on the ERP
▪ Flexible private versioning by user
prior to submission
▪ Shared master data between
S/4HANA and the FP&A process
Analytical
Reports
Planning
Content
SAC/DBR
dashboards
Financial statement
planning & capex
planning
KPI and financial
statement reports
Sales and
Profitability
Planning
Trend reports
Product cost
simulation
Variance reports
(Actual vs. Plan,
YOY)
Cost and Activity
Planning
Reconciliation
Headcount &
Employee-related
Expense Planning
Local & Global Currency

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▪ Can do the minimum - manage daily
cash position and cash forecast
▪ Liquidity planning is done off-line or
with customized planning tools
▪ Only Basic Bank Account
Management capabilities
▪ Non-standardised/harmonised
payment processes with different
tools and portals
SAP S/4HANA Cash Management
Full visibility of company-wide cash position, cash forecast and global Bank account Management
▪ Manage complete day-in-the-life of a cash
manager with advanced monitoring, cash
positioning and analytics
▪ Manage complete lifecycle of payments with
end-to-end visibility utilizing workflow-based
collaboration and control
▪ Centralize bank account management
processes integrated with cash and payment
management processes
▪ Initiate FX and Money market trades from
cash management views
▪ Monitor & analyse data – with deep
drilldowns into cash flows utilizing intuitive
user interfaces
▪ Leverage bank connectivity for seamless
processing of payments, payment statuses
and account statements
S/4HANA Conversion with
only Basic Cash Management
With full
S/4HANA Cash Management
S/4HANA
Business Integrity Screening
Governance and Control
Bank Account Management and Cash Management
Manage
Bank
Account
s
Capture
Bank
Balance
s
Forecast
/
Planning
Process
Paymen
t
Bank
Message
Transmission
s
• AP/AR
• Payroll
• Treasury
• In-house
Cash
• Other… SAP Multi-
Bank
Connectivity*
Alliance Lite 2
Direct Bank Integration
* SAP Multi-Bank Connectivity offers seamless connectivity with the banks
for payments, statuses and account statements for ECC and all S/4
landscapes. Required for S/4HANA Cloud deployments.

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▪ Summary & Discussion
Agenda

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SAP S/4HANA’s Unique Formula for an Intelligent Finance
The unbeatable combination of ingredients creates the power to transform core finance processes
• Redesigned, simplified & automated processes
• Embedded anytime Analytics with prediction
• Cross-company integration
• Proactive business contextual assistance
• Business situation support and alerts
• Speech controlled assistance
Intelligent Finance Applications
Assisted User Interface
Single
Financial
Truth
• Single journal entry – no redundancy
• Actual, plan, simulation data
• Reconciled and consistent by design
• Transactional and analytical data
• Real-time speed
• Unlimited drill-down
Integrated Data Platform
Universal Journal
Intelligent Technologies • AI / Machine learning
• Predictive analytics
It’s time to
move to
SAP
S/4HANA !

Questions?

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There are significant benefits across a range of
Finance & Risk topics in moving from ECC to
S/4HANA
Customers can simply convert from ECC to
S/4HANA but we highly recommend taking
advantage of this opportunity to transform
Finance processes
The benefit case for moving to S/4HANA will be
strengthened by investing in a minimum set of
recommended additional licenses
Take-Aways

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Best Practices
Explorer
SAP S/4HANA Trials
SAP Learning Hub
SAP S/4HANA
Release Info
SAP S/4HANA
Roadmaps
SAP Help Portal
S/4HANA Roadmap
Viewer
S/4HANA Cloud
Customer Community
RISE with SAP
Where to go for More Information

Thank you.
Birgit.Starmanns@SAP.com
Kevin.McCollom@SAP.com

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