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Controlling 2012 Impact of SAP HANA


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You've heard about SAP HANA, but how does it impact you? This presentation will introduce the technology and describe the new accelerators recently built allow for exciting new possibilities in SAP Controlling. This presentation covers:
1. Basic SAP HANA architecture and its relevance for Controlling users
2. The impact of SAP HANA on drill-down reporting in CO-PA and CO-PC
3. Tips for leveraging SAP HANA top-down distribution and assessment in CO-PA and on the costing run in the material ledger to reduce time-to-close
4. Options for using new Business Objects user interfaces to visualize data for different user groups

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Controlling 2012 Impact of SAP HANA

  1. 1. The Impact of SAP®HANA: RevolutionaryChanges for Your SAPControlling Data Janet Salmon SAP AG © 2012 ERP Corp. All rights reserved.
  2. 2. Topics• Introduction• SAP HANA – The Basics• Profitability Analysis• Overhead Management• Production Cost Analysis• Material Ledger• SAP HANA – Next Steps• Summary
  3. 3. SAP HANA: Breakthrough Innovation with In-Memory ComputingIn-memory computing is a technology that analyzes massive quantities of data inlocal memory so that the results of complex analyses and transactions areavailable at your fingertips and business decisions can be executed without delay.Benefits• Gain Real-Time – know it when it happens• Go Deeper – ask any question on any data• Act Broadly – manage large volumes of data• Run Faster – analyze at the speed of thought• Get Flexibility – eliminate pre-fabrication requirements
  4. 4. Your Controlling Data…• Large data volumes • Reports require tens of thousands of records to be read and aggregated• Process performance • Reports take several hours to complete impacting close times• Speed of analysis and reporting • Difficult to make relevant finance available to managers within adequate time frame• Poor productivity • Laborious and time consuming reconciliation processes at period close
  5. 5. Big Data : What the Experts Say... VELOCITY Worldwide digital content will double in 18 months, and every 18 months thereafter. IDC Mobile ERP Data Reports Costs Emails Planning Profitability Period-end closing Opportunities SpeedVOLUME VARIETY VelocityIn 2005, mankind created 80% of enterprise data will150 Exabyte of information. be unstructured spanningIn 2011, 1,200 Exabyte’s traditional and non--traditionalwill be created. Analysis sources. The Economist Gartner Transactions Revenues
  6. 6. Topics• Introduction• SAP HANA – The Basics• Profitability Analysis• Overhead Management• Production Cost Analysis• Material Ledger• SAP HANA – Next Steps• Summary
  7. 7. SAP HANA – The Basics SAP HANA is used as second SAP UI database to accelerate existing applications • SAP HANA serves as secondary database for SAP ERP or SAP CRM Data Modeling • Data is replicated / written into In- Memory in real time for secondary SAP Computing Engine storage Business Read • User interface remains unchanged to Suite ensure non disruptive acceleration • Application is accelerated by reading the data directly from the In-Memory databaseTraditional DB Replicate SAP HANA
  8. 8. SAP HANA – The LandscapeHANA DB is maintained as secondary DB in ERP and connected as RFC connection ERP System HANA DB ABAP- Accelerated read Program Copy of read Database Table write Database Table Table replication or line-wise inserts
  9. 9. Reading from SAP HANA – An Example Data Selection HANA DB Tables ERP DB Tables
  10. 10. Configuration for ERP Accelerators in SAP ERPMonitoring of and configuration forERP accelerators (transaction HDBC): • Overview of available accelerators • Central configuration of secondary DB connection • Activation of secondary DB for individual applications • By user • By report / transaction • Availability and status of secondary DB • Overview of replicated tables by accelerator scenario
  11. 11. Topics• Introduction• SAP HANA – The Basics• Profitability Analysis• Overhead Management• Production Cost Analysis• Material Ledger• SAP HANA – Next Steps• Summary
  12. 12. Profitability Analysis: Drill-Down Reports
  13. 13. CO-PA Accelerator – Allocations via Reference Data• Assessments of cost center expenses into CO-PA are accelerated if receiver tracing factor for reference data is variable.• In this example the Sales Quantities per Receiver will be read from SAP HANA to determine how the Transactions: cost center expenses KEU1 (definition) are to be allocated. KEU5 (execution)
  14. 14. CO-PA Accelerator – Top-Down Distribution• Example: allocate overhead marketing cost to Allocate to product products according to billing quantity per product For any customer, company code … Value field as reference base for allocation Value field to be allocated Transaction KE28
  15. 15. Profitability Analysis: Customer Data ERP w/o HANA ERP with HANA Acceleration (production (test installation) factor vs. ERP Hardware)EBIT with commodity sales 280 sec 7 sec 40– initial report (DB 2,8 sec)EBIT with commodity sales 620 sec 5 sec 124– drilldown by alphacode (DB 2,9 sec)Cost allocation 45 sec 5 sec 9– initial report (DB 3,4 sec)Cost allocation 260 sec 7 sec 37– drilldown by sending cost (DB 3,3 sec)center
  16. 16. CO-PA Accelerator - How it WorksIn-memory database is used as secondary database to accelerate data selection in all CO-PA processes. Segment Level CE3 CO-PA Interface CE4 ERP-Reporting & SD „Best Choice BW -Upload FI of Source“ CE2 OM CO-PA Read-interface CE1 PC Line Items Add Delta OBJ CRM Top-Down- Initial Build distribution … Periodic Update K81 K81 Customer-defined K81.1 K81.3 Aggregation Classic DB Levels Costcenter- allocation In Memory DB K81 CO-PA Line Items
  17. 17. Topics• Introduction• SAP HANA – The Basics• Profitability Analysis• Overhead Management• Production Cost Analysis• Material Ledger• SAP HANA – Next Steps• Summary
  18. 18. Controlling Accelerator Accelerated ERP Reporting and In- Memory Based Partner Object Reporting SAP BO BI 4.0  Display Actual Cost Line Items for Cost Centers ERP System HANA DB and Orders  Display Plan Cost Line Items for Cost Centers andCost Center Accounting Orders Overhead Orders Accelerated read Accelerated overhead and accrual calculation Investment Programs Line items Active Availability Control Monitor read write Table replication DB Table
  19. 19. New Line Item BrowserTo leverage the speed ofHANA accelerated CO LineItem Browsers are provided:  Cost center actual line items KSB1N (replacing KSB1)  Cost center plan line items KSBPN (replacing KSBP)  Order actual line items KOB1N (replacing KOB1)  Order plan line items KOBPN (replacing KOBP)
  20. 20. Functions of New Line Item Report Values are aggregated by shown characteristics. Here: Cost ElementDirect navigation Display singlebetween cost center documentgroups and costcentersOne-click access topredefined Layouts
  21. 21. Extended Selection Options• The speed of HANA allows more freedom in selection of data • Any field in the line item can be selected, where the old transactions would finish with a timeout for non key fields• New Feature: Postings by partner and source object• Examples: • Show me the aggregated value of the debits my cost centers received from the IT department • Show me the postings to my project that were initiated by payroll in Brazil.
  22. 22. Accelerated Overhead Calculation & Accrual CalculationActual Overhead Calculation: Project/WBS Element/Network CJ44Financial Statement Plan/Actual Comparison CJ45 Runtime improvement:Plan Overhead Calculation: Project/WBS CJ46  Programs will typically only needPlan Overhead Calculation: Projects/WBS Elements (collectively) CJ47 half the timeActual Overhead Calculation: Product Cost Collector CO42Actual Overhead Calculation: Production/Process Orders CO43Actual Overhead Calculation: Business Process CPZIPlan Overhead Calculation: Business Process CPZPActual Overhead Calculation: Order KGI2 Actual Accrual Calculation for Cost Centers KSA3Actual Overhead Calculation: Internal/maintenance orders KGI4 Calculate Cost Center Actual Accrual Costs: Initial KSA4Plan Overhead Calculation: Internal/maintenance orders KGP4 Screen Plan Accrual Calculation for Cost Centers KSA8Plan Overhead Calculation: Order KGP2Actual Overhead Calculation: Cost Object (individually) KKPZActual Overhead Calculation: Cost Object (collectively) KKPJ Runtime improvement:Actual Overhead Calculation: Cost Centers/Activity Types KSI4  The runtime may typicallyPlan Overhead Calculation: Cost Centers/Activity Types KSP4 decrease by a factor 2Actual Overhead Calculation: Sales Orders VA44
  23. 23. Investment Programs MonitorWith this new function the speed ofHANA enables comparison ofrelevant budget values andassigned values of all orders orWBS elements for an investmentprogram (or to a sub-tree of aninvestment program) in real time.
  24. 24. Topics• Introduction• SAP HANA – The Basics• Profitability Analysis• Overhead Management• Production Cost Analysis• Material Ledger• SAP HANA – Next Steps• Summary
  25. 25. Production Cost Analysis Accelerated ERP Reporting • Accelerates all CO-PC drill-down reports (SAP and customer specific) SAP BO BI 4.0 ERP System HANA DB • Accelerates POWER Lists and Crystal ReportsProduction Cost Reports Accelerated readResponsibility Reporting Responsibility Reporting on HANA  Transactional data  Master data • Cost center and activity reporting as (for HANA-based write read reporting) additional dimension for responsibility DB Table Transactional reporting data replicated via datasource table replication for master data
  26. 26. Production Cost Analysis in HANA Studio27
  27. 27. Production Cost Analysis: Raw Data in SAP HANA©SA
  28. 28. Production Cost Analysis: First Data Analysis©SA
  29. 29. Production Cost Analysis – ERP Reports • Acceleration of drill-down reports by reading from SAP HANA • On-the-fly summarization means that data collection run (Transaction KKRV) is no longer needed during period close • On-the-fly summarization means that there are no aggregate records in the database • Transaction KKBC_HOE will be migrated to SAP HANA later
  30. 30. Production Cost Analysis – New Reports (1) Product based view • Use Business Object Explorer for Responsibility Reporting • Responsibility reporting determines the cost center Product Ad hoc drill Cost center Sub second based view down based view access at which variances occurred • New analysis of variances by activity type
  31. 31. Production Cost Analysis – New Reports (2) Product based view • Use SAP Business Objects Analysis Client for Management Reporting • Drill-Down Using Familiar Pivot Table
  32. 32. Topics• Introduction• SAP HANA – The Basics• Profitability Analysis• Overhead Management• Production Cost Analysis• Material Ledger• SAP HANA – Next Steps• Summary
  33. 33. Material Ledger Accelerator • Material Ledger Reporting • Drill down Reporting for ML • Virtual Info Provider for ML Reporting with SAP BO BI 4.0 tools SAP BO BI 4.0 • Accelerated Material Price Analysis ERP System HANA DB • Material Ledger Period End Accelerated read ClosingMaterial Ledger / Actual Costing • Accelerated costing runs  Monthly aggregated • Accelerated BW extraction reporting data write read  Closing Documents DB Table Table replication
  34. 34. Material Ledger Reporting KKML0 – Aggregated Drilldown ReportingCKM3 - Single Material
  35. 35. Reporting Using Virtual InfoProvider SAP BO BI 4.0 ERP System HANA DB Virtual InfoProvider (incl. Authority Accelerated read Check) HANA DB Tables write read ERP DB Tables Table replication
  36. 36. Performance Measurements for Costing Run Selection Step: Select CKMLPP Select CKMLPP 54,7% Post Closing: Join MLHD x MLIT x MLPP Select MLIT 50,9%
  37. 37. Resulting Code Changes• Replicate content of relevant tables to HANA• Change program to read data from HANA HANA
  38. 38. Improvements in Costing RunCosting Run ERP w/o HANA ERP with Acceleration (production HANA factor vs. ERP Hardware) (test installation)Selection 45 minutes 10 minutes 4,5Post Closing 75 minutes 27 minutes 2,7
  39. 39. Relevant Database Tables Material Data:Table Content # Fields # Keys Typical Count To be replicatedCKMLHD Header data by material / plant 18 1 2.5 Mio -CKMLPP Collected quantity data and status by 39 5 60 Mio yes material and periodCKMLCR currency-dependent data by material, 56 6 120 Mio - period and currencyML Document Data:Table Content # Fields # Keys Typical Count To be replicatedMLHD Header data by material ledger document 21 1 45 Mio yesMLIT Control data by document item 43 3 250 Mio yesMLPP Additional Info per item 23 5 270 Mio yesMLCR Values and quantities by Item
  40. 40. Acceleration of Selection Step• Materials have to selected by plant and by status in CKMLPP from millions of entries. It is difficult to achieve good performance with the CKMLPP keys. • When CKMLPP can be read from HANA the step can be accelerated by a factor of 3 in a typical customer case • There are 2 variants • Asynchronous replication: CKMLPP will be replicated / HANA by a designated program • Ongoing replication via the LT replicator • The first variant will be used as a start. In the long run he synchronous replication makes much more sense, because otherwise the replication step will add a new step in the period end closing process. To be replicated: CKMLPP
  41. 41. Acceleration of Posting Step• Performance tests showed that the post closing step spends a large amount of the runtime reading ML documents that were written in the previous steps of the settlement. Join on MLIT x MLPP x MLHD (> 50% of Runtime) • Reading from HANA accelerated the step by a factor of 2 to 3. To be replicated: MLHD, MLPP, MLIT
  42. 42. Topics• Introduction• SAP HANA – The Basics• Profitability Analysis• Overhead Management• Production Cost Analysis• Material Ledger• SAP HANA – Next Steps• Summary
  43. 43. Bring Side-by-Side to Suite on HANASide by Side SAP UI On HANA SAP UI SAP SAP Business Business Read Suite Suite Replication Traditional DB DB Migration
  44. 44. In-Memory Computing for SAP Business Suite In-Memory Benefits for SAP Business Suite: Productivity Improved business processesPerformance Reduced complexity: OLAP and OLTP in one system Agility: Less code, less customizing, better Flexibility supportability, …
  45. 45. Topics• Introduction• SAP HANA – The Basics• Profitability Analysis• Overhead Management• Production Cost Analysis• Material Ledger• SAP HANA – Next Steps• Summary
  46. 46. Resources • Janet Salmon, Controlling with SAP – Practical Guide • ISBN: 978-1-59229-392-6 • %E2%80%94-Practical-Guide.html • Vanda Reis, Actual Costing with the SAP Material Ledger • ISBN: 978-1-59229-378-0 • SAP-Material-Ledger.html • Rapid Deployment Solutions for SAP HANA • profitability-analyis/index.epx • financial-reporting/index.epx47
  47. 47. Five Key Ideas • SAP HANA provides innovation through in-memory computing • Data is replicated from SAP ERP to SAP HANA in near real-time • SAP ERP transactions read data from SAP HANA • Alternatively you can use SAP Business Objects reporting tools to display the data • Accelerators are available for Profitability Analysis, Overhead Management, Production Cost Analysis and the Material Ledger • SAP plans to extend the approach to cover SAP ERP, bringing OLAP and OLTP into a single system and optimizing where possible48
  48. 48. Questions • Now: • Ask questions now for immediate answers • Later: • Q&A49
  49. 49. DisclaimerSAP®, R/3, mySAP,, xApps, xApp, SAP NetWeaver®, Duet®, PartnerEdge, and other SAP® products andservices mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG inGermany and in several other countries all over the world. All other product and service names mentioned are thetrademarks of their respective companies. ERP Corp is neither owned nor controlled by SAP.