How SAP supports the finance function of tomorrow

Turning vision on finance transformation into reality with latest SAP S/4HANA innovations

Michel Haesendonckx, Global Solution Owner Financial Planning & Analysis, SAP SE
March 27, 2019

PUBLIC
SAP’s Vision of Finance Transformation
From daily routine to supporting growth and new business models

Predictive
Predictive Insights
Insights
Insights Forward
Advanced looking

Analytics
Real-time
Insights

Backward Real-time
looking Insights
Operations
Backward
Automation looking

Operations Operations

Running Deliver Support

the Business Cost-efficient Insights Strategy
Pro-active
& compliant business steering
finance processes
© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 2
Intelligent Portfolio for the CFO
Covering all business areas across all roles to enable the intelligent finance transformation

Finance and Risk Chief Financial Officer

Vice President, Head, Corporate Head, Finance Head, Corporate Risk, Compliance
& Audit Officer
CISO, CIO
Finance Reporting Operations Treasury

Financial Planning Accounting Finance Treasury Enterprise Risk Cybersecurity

& Analysis & Financial Close Operations Management & Compliance & Data Protection

Planning, Budgeting, Payments and Bank Enterprise Risk Access Governance and
Financial Accounting Record to Report
and Forecasting Communications Management Identity Management
Profitability and Cost Cash and Liquidity Controls and Compliance
Entity Close Order to Cash Single Sign-on
Management Management Management
Debt and Investment Automated Monitoring and
Management Reporting Corporate Close Procure to Pay Access Monitoring
Management Screening
Financial Risk Policy Lifecycle
Financial Reporting Indirect Tax Management Data Loss Prevention
Management Management
Risk Management for
Direct Tax Management Real Estate Management Audit Management
Commodities
Financial Close Travel and Expense International Trade
Treasury Governance
Governance Management Management
Financial Shared Service
Management
Financial Process
Governance

© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 3

 SAP S/4HANA – Accounting at the Heart of Every Enterprise
Highly automated operations & effective value creation and protection

Plan & Prepare Accounting Close Report & Steer

P2O Plan & Predict Management

Accounting
Margin Analysis Simulate & Optimize
Plan-to-Optimize

R2R Record Financial

Financial Close Financial Reporting
Accounting
Record-to-Report

© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC

https://www.youtube.com/watch?v=mWmiAsY8y4w 4
 Agility Analytics Assurance Automation
Intelligent Portfolio to optimize Processes
Accounting and FP&A optimization

Automation
SAP S/4HANA for Advanced Financial Closing
Automation and Management of the entire Financial Close

Automation Assurance
Analytics Analytics Account SAP Tax
SAP Analytics Profitability Reconciliation Compliance
Cloud Analysis
Automation Assurance
Intercompany
Analytics Financial Hub by Advanced Compliance
Predictive BlackLine Reporting
Accounting
Analytics Analytics
Automation Analytics
Group Accruals
Reporting Management Disclosure Digital
Management Boardroom
Analytics
GR/IR Reconciliation

Plan & predict Accounting Close Report & Steer

© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 5

Plan & Predict in SAP S/4HANA and SAC

SAP Analytics Cloud

for Planning Benefits
Planning persistency

(Odata)
▪ High responsiveness to changing
S/4HANA business environment through agile,
driver-based planning
Allocations
Universal Journal Production Orders,
▪ Increased accuracy through
CPM, … automated planning models, including
Embedded predictive capabilities
Analytics

▪ More transparent and flexible

API
BPC integrated in process through collaborative
S/4HANA Finance planning

Customer
applications or files

Plan & Predict Management

Accounting Margin Analysis Simulate & Optimize
© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 6
 Financial Planning – Business Process Overview (Vision)

Strategic Plan – Multi Year Financial Plan – Target Setting – Budget – Revised Budget Forecast – Latest Estimate
Strategic
Tactical

SAC Boardroom / Visual Driver Tree

Logistics Planning Financial Planning Related Planning

IBP SAC

Marketing Revenue Statistical Key CAPEX Personnel / HC Tactical

Sales Planning
Planning Planning Figures (Plan) Planning Planning

Demand Balance Sheet

Planning Planning

Profitability P&L Cash Flow Location

S&OP Planning Planning Planning Planning
Cost Center
Budegting

Production Cost & Activity Consolidation Liquidity Project

MRP (Planning Part) Planning Budegting
Cost Planning Planning

Transportation Detailed Production Universal Liquidity Availability Operational

Consolidation CPM
Planning Scheduling Order Planning Allocation Forecast Control

Financial Financial Statistical Key

Tariffs One Exposure Commitments
Master Data Postings Figures S/4HANA

© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Planning Core Connected Engines Related Content Planning Solutions 7
Universal Allocation
Simplify Allocations while Increasing Transparency

GL PCA CCA

OPA COPA JVA

WBS SL ABC

Intercompany

Universal allocation

In scope
© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Out of scope 8
Plan & Predict in SAP S/4HANA
Creating forward looking margin insights using predictive accounting

Incoming sales orders Predicted revenue ▪ Predictive accounting information

included in the single financial truth

▪ Isolated from GAAP reporting

▪ Based on interpreting the existing

Feb Mar Apr Feb Mar Apr operational document flow

▪ Currently first scenarios:

Predictive Predictive ▪ Accounting for incoming sales orders
Sales Order
Goods Issue Invoice
▪ First commitment scenarios

Plan & Predict Management

Accounting Margin Analysis Simulate & Optimize
© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 9
Transparent margin insights at all levels of the organization
Margin analysis Costing-based
in S/4HANA COPA

Reconciliation v x

Drilldown by profitability
characteristic v x
from income statement

Profitability characteristics
on balance sheet items
v x

Top-down distribution v v

Realignment v v

Cost of good sold

(Cost component) split
v v

Production variance split v v

Product profitability Statistical sales conditions v v

Sales order entry v v

* Single valuation

Plan & Predict Management

Accounting Margin Analysis Simulate & Optimize
© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 10
Financial Accounting in SAP S/4HANA
Enabling continuous accounting across accounting standards

Benefits

▪ Insight into financial and management

accounting at any time based on a
single financial truth

▪ Intelligent automation and

recommendations, leveraging
machine learning and advanced
analytics, that reduce errors and free
up time for value-added activities

▪ Support of multiple accounting

standards with no manual effort

GR/IR Reconciliation

Record Financial
Accounting Financial Close Financial Reporting
© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 11
Machine Learning enabling process automation
Intelligent Goods and Invoice Receipt Reconciliation

Intelligent
recommendations

© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 12

Financial Close in SAP S/4HANA
Enabling group-wide accurate, automated close at any moment

Benefits

▪ Reduce manual effort and risk of

errors by automating the group-wide
Monitor and automate the group-wide close close in line with multiple reporting
standards

▪ Instant access to financial information

on entity, business unit and group
Group Reporting
level throughout the period for better
decision making

Local Accounting ▪ Monitor in real-time the progress,

Single financial truth quality, and financial results of the
close to avoid bottlenecks and
address business concerns

Record Financial
Accounting Financial Close Financial Reporting
© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 13
Integrated platform for group reporting

SAP Group Reporting SAP Group Reporting

direction
SAP Analytics Cloud

Future
Data Collection Disclosure Management
Non-SAP sources | Non-financials | Notes Dashboarding | Analytics | Planning Publish online / print | Electronic submission

SAP S/4HANA

▪ SAP S/4HANA for Group Reporting

▪ SAP S/4HANA Accounting

Published Standard APIs

Other Cloud or
On-Premise Solutions

Record Financial
Accounting Financial Close Financial Reporting
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Supporting Matrix consolidation
Reporting hierarchies maintained centrally

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Supporting matrix consolidation
Intelligent Reporting – Virtual Elimination

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SAP S/4HANA Cloud for Advanced Financial Closing
New cloud-based offering as part of SAP S/4HANA Cloud 1902 Release

SAP S/4HANA Cloud

SAP S/4HANA
Advanced Cloud
Financial Closing
SAP S/4HANA for Advanced Financial Closing

SAP S/4HANA Cloud

SAP Financial Financial

SAP Cloud Entity Close Group Close
Non-SAP SAP ECC SAP S/4HANA S/4HANA Accounting Reporting
Cloud Platform

Closing Hub Scenario Intelligent Closing Central steering

Enable Connectivity to on premise and Leverage intelligent technologies to Enable Central Management for Entity
Cloud in heterogeneous landscapes automate and further streamline the and Group Close along the entire
closing process Record-2-Report process

© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 17

E2E view on financials – Overview demo

https://www.youtube.com/watch?v=_tZTVdOzRds

Plan & Predict Management Simulate &

Accounting Margin Analysis
Optimize
© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 18
 Agility Analytics Assurance Automation
Intelligent Portfolio to optimize Processes
Receivables Management with Cloud Extensions

Automation
SAP Receivables Management based on S/4HANA and S/4HANA cloud
Automation across the entire order to cash process

Automation Automation
Automation Dispute Collections
Credit
Analytics Management Management
Management

Agility

Agility Digital Payments

Credit
Integration
Automation
Agility Analytics Analytics
Analytics Cash
Customer Dispute Worklist
Credit Application
Analysis Payments Analysis analysis

Settle,
Handle Resolve Collect Cash
Check Credit Issue Invoice Reconcile,
Payments Disputes
Account

© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 20

Shared service demo scenario focusing on Receivables Management

© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 21

Treasury Management with S/4HANA
Innovations

Payments and Cash Management

▪ Automate payment, cash management, and treasury
operations and exploit networked bank and trading
partner connectivity
▪ Embedded Bank Account Management
▪ Cash Flow Forecasting and Liquidity Planning
embedded
▪ SWIFT integration made easy
Treasury and Risk Management
▪ Benefit from new Fiori based reporting capabilities
with unlimited granularity
▪ Identify risk exposures across the organization
▪ Optimized FX and Hedge Management capabilities
▪ Ensure legal compliance and be prepared for
upcoming regulatory challenges such as IFRS9 and
EMIR
▪ Enablement of most used Trade Finance processes
© 2017 SAP SE or an SAP affiliate company. All rights reserved. 22
into Treasury Management
▪ Trading Platform and Market Data integration
© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 22
SAP S/4HANA Finance supports Your Digital Transformation
End-to-end innovation of all your processes across your entire value-chain

▪ Agility supports Corporate Strategy Digital People

Manufacturing
with effective design and implementation & Supply Chain
Core Engagement

of new business models Customer Network & Spend

Experience Management

▪ Analytics provides Better Insights

SAP
with anytime, instant analytics and Intelligent
prediction Suite

Intelligent Technologies
▪ Assurance manages
Risk & Compliance
through holistic view of risk and AI/ML | IoT | Analytics
embedded compliance

▪ Automation manages Cost of Finance Digital

with redesigned processes, intelligent Platform

process automation and user assistance Data Cloud

Management Platform

© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 23

Finance topics on YouTube and on the Virtual Finance Summit platform
Videos SAP Finance playlist on YouTube: Finance SAP S/4HANA 1809 “What’s new” information on YouTube:
https://www.youtube.com/playlist?list=PL3ZRUb1AKkpTQscw2i-DjiEv0C-PTQINd
Finance 1809 Overview (Michel Haesendonckx)
https://youtu.be/CzPhDejuft8

SAP Offering for Record-to-Report and FP&A in SAP S/4HANA (Michel Margin Analysis (Michel Haesendonckx)
Haesendonckx) on YouTube: https://youtu.be/TfbthMsYcrc
Why move to SAP S/4HANA for Accounting and FP&A: An extensive process view
Predictive Accounting (Michel Haesendonckx)
https://youtu.be/yH-HJWeDyXA

Embedded Analytics (Michel Haesendonckx)

Virtual Finance Summit (external)
https://youtu.be/wpakxWVEQv8

Superior Steering with Intelligent Accounting and Financial Close (Virtual Summit Accruals Management (Christoph Ernst)
Christoph Ernst 13 min) https://youtu.be/wEru-hqfj1w
Automating Closing and Consolidation (Virtual Summit Elizabeth Milne 14 min)
Goods and Invoice Receipt Reconciliation (Christoph Ernst)
Start your Finance Transformation with Central Finance (Virtual Summit David Ormerod https://youtu.be/jJXqWF1wJkw
15 min)
Machine Learning in Finance (Virtual Summit Sebastian Schroetel 17 min) Group Reporting (Christoph Ernst)
https://youtu.be/mwn3O1rxd0I
Predictive Accounting (Virtual Summit Michel Haesendonckx 10 min)
Margin Analysis (Virtual Summit Michel Haesendonckx 19 min) Tax Service (Stefanie Schuetz-Tschiersky)
https://youtu.be/EEhIAJfQjXM

Treasury (Christian Mnich)

https://www.youtube.com/watch?v=cGQuSpdaBS8
… and far more (customer testimonials, panels, whitepapers,…)

© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 24

 See how SAP S/4HANA has changed finance!

➢ Examine the differences between SAP Business Suite and

SAP S/4HANA Finance

➢ Tap the potential of the Universal Journal, SAP Fiori, and

more

➢ Understand how key features change your finance

processes

Purchase the print or e-book at sap-press.com/4838

SAP S/4HANA Finance: The Reference Guide to What’s New

Written by: Janet Salmon, Michel Haesendonckx
485 pages | 4/2019 | E-book: $69.99 | Print: $79.95 | Bundle: $89.99

© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 25

Your thoughts?
Contact information:
Michel Haesendonckx
Global Solution Owner Financial Planning & Analysis
Finance Solutions
SAP SE

+32 472 491 699

michel.haesendonckx@sap.com
Follow us

www.sap.com/contactsap

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