SAP MDG, central governance, financial data

Nov. 2015
Agenda

Financial Master Data in the Business Situation and

Challenges

The Solution: SAP Master Data Governance for Financials

Process
Content
Architecture
Technology

The Solution Benefits

Summary

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These Challenges are Driving the Need for
Greater Financial Information Governance

Maintain consistency Streamline and automate Tracking and tracing

across data sources processes of changes

Strong data maintenance Centrally governed Change documentation

and approval guidance maintenance processes on content
Validation checks built into Role-based workflows with Workflow tracking on
data entry processes flexible routing approval history
Data distribution control to Business Rules to control Validity tracing of time-
manage varied content content and assignment controlled distribution
over multiple systems options

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Financial Organizations Master Data Challenges

Current Challenges Impacting Your

Lack of data standards/policies

Operational Efficiency
Manual data management processes

Increasingly complex regulations

Regulatory Compliance
Lack of change transparency/audit trails

Inability to manage time-dependent data

provisioning Planning & Analysis

Data quality effects overall labor productivity by as much as 20%.

Measuring the Business Value of Data Quality, Gartner, Inc.

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How Can Information Governance Help?

Now that master data is consistent
54.2% best throughout, creating a new cost center
6 worst takes less than 30 minutes instead of
several days.
90% average
Jian Ming Se,
Global IT Associate Director
Colgate-Palmolive
on the benefits of SAP MDG
96% best
81% worst
2.8 average 18.6% average

11.8% worst
1.2 best
Hours per week employees Decrease in
spend searching for business process
information cycle time
Aberdeen Group SAP Value Engineering

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Agenda

Financial Master Data in the Business Situation and

Challenges

The Solution: SAP Master Data Governance for Financials

Process
Content
Architecture
Technology

The Solution Benefits

Summary

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Master Data Governance for Financials at a Glance

Master Data Governance for Financials (MDG-F) is an application to centrally

govern the maintenance of financial master data.

MDG-F provides central steering and control mechanisms independently of

local or centralized execution.

In MDG-F, master data records can be created, completed or changed in a

staging area, following a distributed step-by-step way, before making the
record available to connected business applications.

Centrally
Govern

Distribute Business
MDG-F
Applications

Create/
maintain

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MDG for Financials Addresses Main Action Areas

Consistent
Collaborative maintenance
financial master
data across the
entire organization Traceability of changes for
compliance requirements
Controlling

Accounting

Consolidations

Internal Audit

Excellence in financial
High quality of master
processes, i.e. accurate
data and a single
reconciliation, timely
version of the truth
group closing
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MDG-F: The Solution
Building Block Overview

Content Architecture Technology

Process
Business Rules

Search Maintain Validate Approve Replicate

Edition Management

Data Models Staging area UI and

Extensibility Deployment configurability
Replication Integration

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MDG-F Process Framework

Financial Financial Financial

Accounting Controlling Consolidation

Search
Business Rules

Create Change
Maintain Validate Approve Replicate
Block Mark for
Deletion
Edition Management
Replicate

Accountant Data Steward

Requestor
Data Specialist
Corporate Approver
Accountant

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 The Change Request

The Change Request is an MDG-specific object that:

acts as the container for new and changed data
Master data content
Comments
Approval history
defines and controls the process flow and processors according to defined
Change Request type
optionally holds multiple changes

Finally
Request Approve Enrich Replicate
Approve

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Editions

Editions are used to control the validity of a change. In the edition, planned change
requests for the creation of new data or for changes to existing data are collected and
released collectively at a certain date. Time-dependent objects (Profit/Cost Center)
automatically inherit the valid-from date from the editions valid-from date.

Edition

Changes collected for release at a Ad-hoc changes to be executed

dedicated valid-from date: immediately, using any open edition.
release release release
release release releaserelease release
01.01 01.04 01.07
Ad hoc Ad hoc Ad hoc Ad hoc Ad hoc

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Work with Changeable Keys

When requesting a new financial master data item, often the requesting user does
not yet know the number to be used in Business Suite Applications. To provide
flexibility to the requestor whilst adhering to corporate numbering standards, the
single-object maintenance in SAP MDG-F offers the feature to use a generated key
first, and changing it to the desired final number in a later step of the creation
process.

Request Enrich

New Profit Center: New Profit Center:

111 440117
Production Line TY17 Production Line TY17

MDG-F Create Process

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Process Features

Copy multiple company codes:

create multiple company code-
specific G/L accounts by
simple copying

One-step creation of primary

cost element: automatically
create the primary cost
element connected to a new
account in the same
maintenance step

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 Hierarchy Assignment in Single-Object Processing

Master Data and Hierarchy Assignment in the same Main Financial Objects UI

Cost Center
Profit Center
Cost Element
Cost Center Group
Profit Center Group
Cost Element Group
And also:
G/L Account
Financial Reporting Structure Item

In addition to ERP:
Standard Hierarchy Group
Overview of all assignments in all
hierarchies
Display and maintain not only
standard group, but also Multiple Alternative Hierarchies
alternative hierarchies on master
data screen

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Integrated Change Request

For all multiple objects processing applications:

Hierarchy Processing File Upload Mass Change

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Hierarchy Interlocking

Loose interlocking provides additional flexibility

Loose Interlocking (New Option)

H1 Strict Interlocking (Default) Same parent
H1
Upwards and Downwards
A1 A1

B1 B1
C1
C1
C2 D1
C2 D1
D2
D2

B2 B2
C3
C3
D3
E1 D3
D4 E1
D4
A2 A2
C4
B3 C4
D5 B3 D5

Node currently maintained in a pending change request Interlocked: You must use the pending change request Not Interlocked: You can use a separate change request

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Usability Features in Single-Object Maintenance UI

Side panel / Business

Context Viewer:
Context information can
be displayed in the side
panel to provide further
related information about
the current data record,
e.g. the change history

Highlight Changes:
Fields that were changed
in the previous step are
highlighted in color

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Usability Features in Hierarchy Processing

Easy Actions supported for

multiple objects:
Drag & Drop
Move Up, Down
Rank Higher, Rank Lower
Copy & Paste or Paste at Lower Level
Cut & Paste or Paste at Lower Level

Easy to use:
Select multiple subnodes of one node and
carry out any of the actions above.

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Usability Features in Hierarchy Processing

Direct Access/Insight to
Hierarchy Change by clicking
icons:
Pending Change Request
Change Document

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Supporting SAP Central Finance

Master data MDG In an SAP Central

replication
Finance usage scenario,
SAP ERP MDG can serve as the
central master data
MDG Key Mapping governance application
Mappings While local transactional
postings are centrally
reposted into the Central
Finance application, the
Business Mapping
MDG-based mapping
information on differing
SAP ERP local numberings is
SAP ERP SAP
SAP ERP
Simple Finance
retrieved and used in the
Real-time
replication Central Finance posting process
transactional
postings
SAP HANA

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Standard Objects in Data Model 0G

Financial Consolidation

GL Account Consolidation
Chart of
(Company Reporting
Account
Code) Structure

Consolidation
Breakdown Breakdown
Chart of
Financial Category Category Set
Account
Reporting Company
Structure
Cause for Transaction
Submission Type
Controlling

Consolidation
Profit Center Characteristic
Profit Center
Group
Group
Hierarchy
Consolidation Element
Consolidation
Cost Center Consolidation Consolidation
Group
Group Profit Center Unit Group
Hierarchy
Hierarchy

Cost Center
Cost Center The figure shows only type 1 entities grouped
Group
into the three major MDG-F areas. Entities Profit
Center, Profit Center Group and Profit Center
Hierarchy are used by the Financial area, too.
Cost Element
Group Leading
Hierarchy 1 * Data Objects can be modified/
* 0..1 Referencin extended flexibly to specific
g
Cost Element 1 * needs, according to the backend
Cost Element
Group Hierarchy systems

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Deployment

MDG is delivered as a business function within SAP ECC

Deployment as standalone hub or on top of existing ERP instance
Optional embedding of HANA search
S/4HANA
Replication into various applications Business
including S/4HANA Suite on
HANA
SAP ERP
HANA

AnyDB
MDG

SAP ERP
Example
AnyDB
Non-SAP

AnyDB

MDG is pre-integrated with SAP ECC, and provides publish/subscribe and master/slave implementation
modes with automatic distribution to SAP and 3rd party applications.
Aaron Zornes, The MDM Institute

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Replication

MDG-F replicates the data according to the needs of the connected business systems. This
is independent of the deployment option, if MDG is used on top of one of the operational
ERP systems, or as a standalone MDG data hub.
SAP S4HANA
SAP MDG-F

Corporate CoA SAP ERP

Operational CoA
Consolid. Units Corporate CoA
SAP SEM-BCS Operational CoA
Corporate CoA
Consolid. Units
Example
Non-SAP Non-SAP Landscape
Corporate CoA Corporate CoA
Consolid. Units Operational CoA

Corporate Group Local

Systems Systems

MDG is pre-integrated with SAP ECC, and provides publish/subscribe and master/slave implementation
modes with automatic distribution to SAP and 3rd party applications.
Aaron Zornes, The MDM Institute

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 Integration

Integration technology (elective)

Web Service

ALE / IDoc
MDG-F
RFC

File

Sample Available Models

Replication Outbound Description Replication Outbound Description
Model Impl. Model Impl.
SOA_ACC 1010 Replication model for Account (SOA) IDOC_ACC 1012 Replication model for Account (IDoc)
SOA_CCTRH 1110 Replication model for Cost Center Group Hierarchy (SOA) IDOC_COST 1102 Replication model for Cost Center (IDoc)
SOA_CELE 1180 Replication model for Cost Element (SOA) IDOC_CCTRH 1112 Replication model for Cost Center Group Hierarchy (IDoc)
SOA_CELEH 1190 Replication model for Cost Element Group Hierarchy (SOA) IDOC_CELE 1182 Replication model for Cost Element (IDoc)
SOA_COA 1000_V1 Replication model for Chart of Account (SOA) IDOC_CELEH 1192 Replication model for Cost Element Group Hierarchy (IDoc)
SOA_COMP 1140 Replication model for Company (SOA) IDOC_PCTR 1122 Replication model for Profit Center (IDoc)
SOA_COST 1100 Replication model for Cost Centre (SOA) IDOC_PCTH 1132 Replication model for Profit Center Group Hierarchy (IDoc)
SOA_FRS 1020 Replication model for Financial Reporting Structure (SOA)
SOA_PCTH 1130 Replication model for Profit Center Group Hierarchy (SOA)
SOA_PCTR 1120 Replication model for Profit Center (SOA)

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User Interface

Technology
Browser-based UI (Web Dynpro
ABAP) to allow decentral task
execution

Use of Floorplan Manager for easy

screen configuration and
personalization

Pre-delivered workcenters provide a

structured entry point for individual
roles

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Fiori Apps for Cost Center and Profit Center

You can also use Fiori apps to

request a new cost center or a
new profit center.

These apps can be flexibly used

on a variety of devices including
tablets and smartphones.

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Approve Cost Center and Profit Center With Fiori App

Approve new object: Only entered fields are Approve change: Only changed
displayed fields (with old values) are displayed

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Agenda

Financial Master Data in the Business Situation and

Challenges

The Solution: SAP Master Data Governance for Financials

Process
Content
Architecture
Technology

The Solution Benefits

Summary

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Benefits of SAP Master Data Governance for Financials

What can be improved? How can SAP Master Data What benefits can be achieved?
Governance help?

Process efficiency

Intercompany reconciliations Greater governance across local and Faster financial close
Period closing corporate systems Increased coordination across
Corporate controlling Automation of data maintenance through operating units
integrated validations, derivations and Increased trust in reporting data
Financial consolidation
role-based transactional guidance
Reduced cost of finance as a
Reduction of manual correction work due percentage of revenues
to First Time Right data entry
More automation in reconciliation of charts
of accounts across multiple ledgers

Exec. Mgmt. and

Division Corporate Internal Audit/ External
Controller Controller Compliance Stakeholders
Intercompany Corporate
Divisional Internal audit Regulatory
reconciliation consolidations
period cut-off & validate numbers reporting
& local close & flash reports

SAP Master Data Governance

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Benefits of SAP Master Data Governance for Financials

What can be improved? How can SAP Master Data What benefits can be achieved?
Governance help?

Compliance Management

Transparency Greater governance across local and
Traceability corporate systems
Risk exposure Separation of duties between change and
approval authority for financial master data
Standardized workflow and automated
routing
Complete history and audit trail of changes
to financial master data
Increased visibility into change
impact on financial statements
Reduced audit workloads and costs
Greater collaboration in support of
internal policies and
government/industry regulations
Fewer non-compliance penalties

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Benefits of SAP Master Data Governance for Financials

What can be improved? How can SAP Master Data What benefits can be achieved?
Governance help?

Quality and Consistency

Master data Greater governance across local and
Business rules corporate systems
Governance processes Single Source of Truth allowing for creating
and storing the right data at the right place,
even in distributed and changing
landscapes
Standardized data models, validation rules
and workflows
Easier Cross-System Data Synchronization
through configurable and selective
distribution logic
Reduced effort to find information
Increased trust in data by business
users
Greater consistency of financial
statements and less need for
restatements
Improved modeling, planning and
analysis

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 2014 SAP AG or an SAP affiliate company. All rights reserved.
Success Examples

2014
2015 SAP AG
SE or
or an
an SAP
SAP affiliate
affiliate company.
company. All
All rights
rights reserved.
reserved. Public 35
Agenda

Financial Master Data in the Business Situation and

Challenges

The Solution: SAP Master Data Governance for Financials

Process
Content
Architecture
Technology

The Solution Benefits

Summary

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Summary: Why SAP Master Data Governance?

1. Up-front, central creation of master data enables high

data quality and leads to significant business
improvements

2. Out-of-the-box, process-centric applications provide

centralized governance for master data domains such
as financial data, supplier data, material data etc.

3. Embedded solution with native integration into

Business Suite using existing business logic and
infrastructure leads to low TCO

4. SAP Master Data Governance provides flexibility, from

configurable workflows and extensible data models up
to custom-built applications

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SAP Rapid Deployment Solutions

Predictability
Fast value in days/weeks SAP Rapid
Fixed cost and fixed best practice scope Deployment Solutions

Integration
Integrated start and growth options
Immediate and future IT and business processes
landscape integrity

Choice
Modular packages to meet specific business needs
and allow individual adoption paths
Flexible licensing and deployment options

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Master Data Governance for Financials
Whats New With MDG-F 8.0
Hierarchy Assignment in Single-Object Processing
Cost Center, Profit Center, Cost Element, G/L Account, Financial Reporting Structure

Integrated Process for Multiple Objects Processing

On-the-fly submission of change requests: hierarchy processing, file upload, mass change

Parallel Hierarchy Processing by Loose Locking

Better Usability and Efficiency in Hierarchy Processing
Search in hierarchy, easy navigation
List of unassigned Cost Centers, Hierarchy Attribute handling
Drag and drop, move, copy/cut-paste for multiple objects,
Control the number of nodes displayed
Pending change request and change document,

Enrichment of Financial Content

G/L Account attributes enrichment
Audit info for G/L Account, Cost Center, Profit Center, Cost Element
Group Account synch between MDG/F and ECC

Fiori User Interface for Approve Cost Center, Profit Center

Demo Scenarios
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Further Reading and Links

MDM and Information Governance on sap.com

http://www.sap.com/mdm

SAP Master Data Governance on sap.com

http://www.sap.com/pc/tech/enterprise-information-
management/software/master-data-governance/index.html

SAP Developer Network and related communities

http://www.sdn.sap.com/irj/sdn/mdm

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