Sneak Preview: Central Finance new in SAP planned innovations OP 1709

PUBLIC
Dr. Christoph Ernst, SAP
July 2017
SAP S/4HANA 1709
What’s new in Finance?
Status: PLAN
until final release
shipment

2PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
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Disclaimer

Agenda
Central Finance
 Fiori
 Central AR/AR management
 Enhanced VAT/TAX Configuration check
 CO-PA support
 Third party interfaces
Financial Planning &
Analysis
 Fiori
 Profitability Analysis
 Planning Content
 Material Ledger
 Semantic Tagging
 Flexible Hierarchies
 SAP RealSpend
 SAP Financial Statements Insight
Accounting and Financial
Close
 Fiori
 Subsequent introduction of document splitting
 SAP S/4HANA Financial Closing cockpit
 SAP S/4HANA for advanced compliance reporting
 Real time consolidation
Treasury Management
 Fiori
 Innovations of Core Treasury
 Value-added cloud services
 SAP Cash Management innovations
Financial Operations
 Fiori
 Integration with Business networks
 SAP Shared Service Framework

Agenda
Central Finance
 Fiori
 Central AR/AR management
 Enhanced VAT/TAX Configuration check
 CO-PA support
 Third party interfaces
Financial Planning &
Analysis
 Fiori
 Profitability Analysis
 Planning Content
 Material Ledger
 Semantic Tagging
 Flexible Hierarchies
 SAP RealSpend
 SAP Financial Statements Insight
Accounting and Financial
Close
 Fiori
 Subsequent introduction of document splitting
 SAP S/4HANA Financial Closing cockpit
 SAP S/4HANA for advanced compliance reporting
 Real time consolidation
Treasury Management
 Fiori
 Innovations of Core Treasury
 SAP Cash Management innovations
Financial Operations
 Fiori
 Integration with Business networks
 SAP Shared Service Framework

Fiori – Drill-Back to Source Document

Central Receivables/Payables Management

Open item management in Central Finance
Open items are replicated into Central Finance. To avoid duplication of effort to pay/clear, there are the following options:
Open item
Clearing
Open item
Tech
Cleared
Open item
Clearing
Open item
Clearing
Open item
Tech
Cleared
Open item
Clearing
Local Central Finance
Replicate open item and automatically/technically clear in
Central Finance
• Available as of 1503
• Continued open item management in source system
Replicate open item and clearing status in Central
Finance
• Available as of 1605
• Continued open item management in source system
• For restrictions and further information, please
see note 2292043
Replicate open item and automatically/technically clear in
local system
• Centralized open item management in Central
Finance system
• No Central Finance-specific technique for posting
back to the source systems (project solutions based
on existing scenarios)
Not suitable for central reporting or central processing (since
clearing status not correct)
Centralization of finance operations reporting and central
process orchestration
• A/R and A/P reporting (cross-system view of customer
or vendor account)
• Central dispute management, collections worklist and
credit evaluation scenarios
• Shared services and invoice management scenarios
Similar to existing ALE scenarios, these are customer-
specific scenarios where consistency in certain local
logistics processes must be determined in a case-by-
case analysis
*ALE, RFC, other
Other*
Other*
SLT
SLT
SLT
SLT
S/4HANA 1709
Released with restrictions

Central process execution for AP / AR processes
Open items technically
cleared SAP HANA
Central Finance
Central Payments
Central Internal Payment
Central External Payment
Central Incoming Payment
ERP
Real status of open item (including payments and bank statements)
tracked in Central Finance system
Bank account management maintained in CF system (optional SAP MDG),
when using new SAP Cash Management
HANA optimization of payment proposal generation
All open item related processes must be executed in Central Finance
instance as well (example: dunning, collections, disputes, cash
application)
Credit, Collections, Disputes
Business Values
Reducing the number of external bank
accounts / fees
Limit credit charges in case of overdraft
Bundle external payments and save charges
on cross border payments
Centralize payment knowledge and optimize
process in shared service center
Use SAP Standard interface for uploading
bank statements to a central platform
Monitoring of bank communications and
transactions
BANKS
Open Item Open Item
Cash Application

Released with restrictions – what does that mean?
SAP plans to release Central Payments / Central Finance capabilities in S/4HANA OP 1709 with the status “Released with
Restrictions”
• Functional Restrictions
• Tax-related restrictions (VAT and Withholding Tax)
when paying centrally, tax reporting (for VAT and Withholding Tax can only be done in the Central System)
not all reports (and country variants) are supported
We will still use Note 2346233 to limit access / document restrictions and ensure customer accepts limitations
Customer can use productively after they have completely tested all relevant process variants and scenario

1610 Pilot Release Limitations for central payment
scenarios
1709 Improvements for central payment scenarios
Logistics processes in source system that depend on actual clearing
status of invoices in the source system may need to be modified:
with the technical clearing of the documents in the source system,
AP and AR reports in the source system do not indicate the actual
clearing status.
No changes planned in standard Central Finance product.
In implementation projects, ALE scenarios can be built to push
status back to source system (not recommended). Logistics
process can be modified to query Central Finance system.
Payment request (and down payment request) has to be created in
the Central Finance system in order to apply it to the central
payment.
Customer can extend replication to include these items in their
implementation project; standard solution is not included in 1709,
but remains a roadmap topic.
Central handling of SEPA Direct Debit is not automated because
mandates are not replicated and synchronized.
Mandate replication and synchronization supported. If mandate
created in local logistics process, it will be replicated to central
system; if mandate is created in central system, it could be
replicated back to local in ALE scenario.
Credit card sales for customers Credit Card sales will work if settlement run is triggered from the
local system
One-time-account postings (customer and vendor) One-time vendor / customer postings working
The legacy open items that you have in the source system before
switching to central payment have to be paid and cleared in the
source system.
No change planned
Limitations associated with the Central Payments scenarios
*Always consult SAP Note 2346233 for updated information regarding the functional limitations of centralizing payments.

Enhanced VAT/TAX Configuration Check
(S/4HANA 1709 FPS0)

It is possible to activate an enhanced check
for tax related postings
Activation per combination of
Source System and Source Company Code
With Central Payments this check is
mandatory!
Prerequisite:
SLT real-time replication of source system
customizing (SAP Note 2494127)
Caution:
Central VAT and Withholding Tax reporting is not
possible for all cases -> see documentation!
not all reports (and country variants) are supported
Activate VAT Configuration Check for Company Codes

Tax type does not match in source and target
Indicator "Not deductible" does not match in source and target
Activation status of plants abroad does not match in source and target
Indicator "Tax Base is Net Value" does not match in source and target
Indicator "EU Country" does not match in source and target
Reporting country does not match in source and target
…
All Error Messages are defined in Message Class FINS_CFIN_BC_V
Tax Customizing Consistency Check – Error Situations (Examples)

SAP HANA
Tax Customizing Consistency Check – SLT Replicated Content
HANA Enterprise Cloud
HANA Enterprise Cloud
Real-time replication with
SAP Landscape
Transformation
Replication Server
SAP MDG
Existing Master Data
Governance Tool
SAP S/4HANA – Central Finance
Central Finance
Accounting Interface
Business
Mapping
Error
correction
handling
Universal Journal
Entry
SAP ERP
ERP
T000F
T001
T005
T007A
T007B
TTXD
FINS_CFIN_T000F
FINS_CFIN_T001
FINS_CFIN_T005
FINS_CFIN_T007A
FINS_CFIN_T007B
FINS_CFIN_TTXD
Table to Table
T000F
T001
T005
T007A
T007B
TTXD
Tax Customizing Consistency Check
(after Mapping)
FI / CO
Document
FI/CO Postings

Today a replication from costing-based CO-PA in a SAP ERP source system (ECC or S/4) into
(account-based) “Profitability in S/4HANA” in the Central Finance is not supported out-of-the-box.
A standard replication as part of the Central Finance set of enabling capabilities is a planned
roadmap item.
In the interim, with S/4HANA 1709, it is planned to provide for a tool-set such replication as part of a
custom implementation project.
The planned tool-set includes:
• CO-PA mapping tool
• Enhanced replication
CO-PA Toolset

Characteristics Mapping
NAME_VALUE_TABLE
Fieldname Value
Source Central
CE4XXXX
Convert to name-value table
FI Doc
CO Doc
CE4
Rebuild CE4 structure
New PA segment
number
Customizing
Characteristics
Mapping
Universal Journal`
CO Doc
FI Doc
Characteristics
NAME_VALUE_TABLE
Fieldname Value
Document Replication
Semantically identical characteristics can
have different names in the different
systems

Third-Party System Connection to Central Finance
Solution Overview
SAP delivers:
 Staging Area
 Mass Data Transfer Tool (SLT)
 CFIN specific posting interface
Partner delivers:
 Connection to 3rd Party System
 Structure Mapping to CFIN Posting
Interface
Usage of transfer layer ensures:
 Clear separation of responsibilities
 Standard tools for monitoring (AIF)
Acctng.
Docmnt
*)
*)
Error
Handlng
Key/
Value
Mapping
Transac
Control
Data
Integrity
Structure
Mapping
Quality
Check
Data
Extracti
on
Non SAP ERP
Source
Transfer
Layer
Staging
S/4HANA CFIN
ACDOCA
Transfer
Programm
Inbound
Mapping 3rd
pty
itf
Customer / Partner SAP
AIF
Enrich /
Error
Correcti
on

Architecture Overview

Overview of product features and deliveries
Features delivered in S/4HANA 1610 FPS2:
 Transfer Accounting Documents with following context:
– Source References
– GL Data (incl. segments; profit center; division; trading partner)
– Payable/Receivable Data (incl. discount and payment information)
– Product and Withholding Tax
 Extensibility
New features in S/4 HANA 1709 FPS0:
 Transfer of reversal documents
 Integration of 3rd Party Data in FI Comparison Reports:
– FINS_CFIN_DFV_FI_DOC_COUNT - Comparison of FI Document Headers
– FINS_CFIN_DFV_FI_DOC_COMPARE - Comparison of FI Line Items
Configuration Guide: https://launchpad.support.sap.com/#/notes/2464583
SLT Content: https://launchpad.support.sap.com/#/notes/2462424

Further new Functionalities
Deletion Report
Delete ALL FI documents in a company code transferred from a source system to the Central
Finance system either vial initial load or online replication, so that a new initial load can be started
for the given company code.
Central Finance Comparison Reports – Additional Features
History of Key Mapping Changes
The report answers typical audit questions:
▫ Was a certain mapping changed in a certain period of time?
▫ What is the current mapping?
▫ Who has changed a certain mapping?

What do you think?
Contact:
Dr. Christoph Ernst
Senior Director
Finance Solutions
SAP SE
+49 160 9081 9609
Christoph.Ernst@sap.com

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set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty.
In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release
any functionality mentioned therein. This document, or any related presentation, and SAP SE’s or its affiliated companies’ strategy and possible future developments, products,
and/or platform directions and functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any time for any reason without notice. The
information in this document is not a commitment, promise, or legal obligation to deliver any material, code, or functionality. All forward-looking statements are subject to various
risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements,
and they should not be relied upon in making purchasing decisions.
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