The document provides an overview of Smart Financials, which is SAP's new financial software package optimized for the SAP HANA in-memory database. It discusses SAP's strategy of simplifying offerings on HANA, describes the three current financial offerings and the target attributes of Smart Financials. It also summarizes the architectural changes in Smart Financials, including storing data in a single table and new functions for accounting and controlling like period close and cost analysis. In conclusion, Smart Financials is said to fit SAP's strategy and will become the primary financial software offering over time by bringing new flexibility, integration and changing the game for financial software.

1. Smart Financials package 1.0
Overview
March 20th 2014
Erwin Brandt – Product Management Financials

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Purpose of This Presentation
Give a high level overview about Smart Financials and how things fit together
Give a high level overview of the financial products
Give a high level overview what changed from a technical point of view
Give examples of new functionality in Financial Accounting and Controlling

3. Agenda
 SAP Board Strategy
 Financial Product Offerings
 Architectural Changes
 New Functions (Financial Accounting/ Controlling)
 Summary

4. SAP Board Strategy

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SAP‘s Strategic Focus
Simplifying our Offering on HANA

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Simplifying User Experience
Target

7. Financial Product Offerings

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Three Financial Offerings Today
AnyDB
Client
SAP Business Suite
SAP ERP
Finance
Business Suite
on SAP HANA
SAP HANA DB
SAP Business Suite
BW
SAP HANA DB
ERP Business Suite
Smart Financials
(Q1 2014)
…
Client
Smart Financials
BW
Apps
EhP 7 EhP 7
Client
Any DB Based on InMemory Technology (e.g. HANA)
Finance Finance incl.
Accelerators
Apps
EhP 7

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Target: Non-Functional Values Smart Financials
This product will be perceived as new because of
 Single source of truth e.g. same line item for FI and CO
 Speed – no more batch, highly interactive e.g. Intercompany
Reconciliation ICR
 UX desirable for new generation of users e.g. MySpend
 Predictive instead of actuals only e.g. Forecasting
 Implementation reduced to the minimum e.g. weeks instead of months
 Adaptability of data consistently across all Finance e.g. customer
specific fields
 Changes are continuous – and easy to do by business user e.g.
organization or process changes

10. Architectural Changes

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Smart Financials
Non Functional Value Proposition
Data
Compression
Data
Throughput
Flexibility
No
Reconciliation
 Data are only stored once
(no totals and indices)
 No replicated data =>
volume restricted to a minimum
 Only one database table to be
updated => fast data throughput
 Full Parallelization applied as
no data dependencies
(table locks)
 Reconciliation build in
 no aggregates
 FICO Merge (OneDocument)
 Data only stored physically once
As consequence, adaptions or
extensions done only at only place.
 No additional persistencies – no data
migration or reconciliation

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Smart Financials - Simplified Architecture
ERP Financials before Smart Financials ERP Financials after Smart Financials
OLTP OLAP
Professional UI Casual UI
Transactional
Processing
Analytical
Processing
Transactional Data Model
Redundant data:
Index and Total Tables
Document level data
ABAPServerDB
Analytical Data Model
ETL
HANADB OneDocument
OneExposure
Σ
VDM
Analytical
Processing
Transactional
Processing
ABAPServer
Professional UI Casual UI

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Partition of Data Base
 Hot
Frequently / Operative/
currently used data In main
memory
 Cold
Rarely used old data in
slower storage
Smart Financials - Data Aging
Swap old data in "cheaper" storage of the database
 Define a minimum life for account documents to determines the earliest period
after which FI documents can be moved to the cold database area.

14. New Functions
Smart Accounting

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Smart Financials - Areas of Functional Enhancements
Entire Financial Process Lifecycles on one HANA-Platform!
TodayBackwards looking Forwards looking
Actuals (not yet booked)Accounting Plan
Accounting
 Unified single point of
truth (non redundancy
and persistent totals)
 Fast period close &
intra-month soft close
 Increased flexibility
 Reporting based on
real-time operational
data (no OLTP-OLAP
separation)
Financial Operations
 New receivables
manager dashboard
 Accelerated incoming
payment search
 Real-time line item
browser for vendors
 Accelerated GR/IR
clearing accounts
analysis
Decision Support/Cash
 Smart Business
Dashboard for Cash
Management
 Improved cash-position
forecast & liquidity plan
 New data structure
for cash-flow pool
Planning
 ERP Financials
embedded planning
 HANA planning engine
for faster disaggregation
and allocations
 Modern web-/xls-
based front-end
 Process support by
process flows and status
control

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Unified Financial and Management Accounting
Real World
Process
e.g. Invoice
CO
Document
FI
Document
Totals & Indices
Financial Accounting
Totals & Indices
Management Account.
ERP Financials
any classic DB
Financials powered
by HANA
Stability
Processing
Analytics
Real World
Process
e.g. Invoice
CO Document
FI Document
Flexibility
Processing
Totals for
Financial
Accounting
Totals for
Management
Accounting
HANA views on the fly
Pre-Defined Aggregates
Flexibility
Stability
Analytics
+ Higher Throughput
+ Reduced
Reconciliation
+ Higher Flexibility
+ Reduced Data
Volume
+ High Performance
− Data Redundancy
− Reconciliation Effort
− Minor Flexibility

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List of Obsolete Tables FICO (replaced by CDS views)
Index tables removed Aggregate tables removed
BSIS Index for G/L Accounts
BSAS Index for G/L Accounts (Cleared Items)
BSID Index for Customers
BSAD Index for Customers (Cleared Items)
BSIK Index for Vendors
BSAK Index for Vendors (Cleared Items)
FAGLBSIS Index for G/L Accounts – New G/L
FAGLBSAS
Index for G/L Accounts – New G/L
(Cleared Items)
GLT0 General Ledger: Totals
FAGLFLEXT New General Ledger: Totals
KNC1 Customer master (transaction figures)
LFC1 Vendor master (transaction figures)
KNC3
Customer master (special G/L transaction
figures)
LFC3
Vendor master (special G/L transaction
figures)
COSS Cost Totals for Internal Postings
COSP Cost Totals for External Postings

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Smart Accounting - New COGS and WIP Analysis
Cost of Goods Sold (COGS)
Refinement of the posting mechanism for COGS is required to reflect the standard cost
component split on the G/L account and optional integration with account-based CO-PA.
Work in Progress (WIP)
WIP positions are now available very highly
granular based on the underlying primary
and secondary costs. The analysis is based
on linking GL WIP line items with settlement
line items via the order number in the GL
line item.

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Period Close in Product Cost Controlling
Code Pushdown
Select orders data
Loop each orders
Endloop
UI display
ABAP
Select valid orders
Do aggregation
Do calculation
DB update
UI display
ABAP
Select valid orders HANA
Select orders data
Do aggregation for
all orders
Old Code Pushdown
Loop aggregated data
Endloop
Do calculation
DB update

20. Summary

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Summary
Smart Financials fits perfectly into the SAP strategy
Smart Financials will become the the one and only offering for InMemory over
time
Smart Financials brings in new flexibility
Smart Financials brings in new integration capabilities
Smart Financials will change the game in Financials

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