Welcome to S/4HANA

Group Reporting webinar!

S/4HANA Group Reporting

Deloitte webinar | 15th September 2020
 S/4HANA for Group Reporting Webinar - Agenda
September 15th, 2020

17:00

Welcome and introduction

by Deloitte (Roger Kuhn & Julius J.N. Hill) | 5 min

Strategic direction of SAP on Consolidation in the context of S/4HANA

by SAP (Philip Aliband) | 15 min

Deep dive into the S/4HANA Group Reporting solution

by Deloitte (Julien Genand, Hatem Ghanem & Olivier Gonthier) | 50 min

Way forward and Q&A

by Deloitte & SAP | 20 min

Deloitte S/4HANA Group Reporting – September 2020 2

 Our team today

Roger Kuhn
Partner
Thibaud Mahmoudi
Enterprise Technology & Performance Senior Manager
Deloitte CH Enterprise Technology & Performance
Deloitte CH

Hatem Ghanem Julien Genand

Manager Manager
Enterprise Technology & Performance Enterprise Technology & Performance
Deloitte CH Deloitte CH

Olivier Gonthier
Manager
Philip Aliband
Enterprise Technology & Performance S/4HGR Solution Owner
Deloitte CH SAP SE

Heiko Fischer
Solution Architect Finance
SAP CH

Deloitte S/4HANA Group Reporting – September 2020 3

NOTE: Delete the yellow stickers when finished.
See the SAP Image Library for other available images.

SAP S/4HANA Group Reporting

Strategic direction
Philip Aliband, Solution Owner, SAP SE
September 15, 2020

PUBLIC
Separate local and group accounting
SAP LEGACY
Cumbersome mapping CONSOLIDATION
or NON-SAP
CONSOLIDATION
Limited dimensionality

Separate UIs

One analytical toolset

Fragmented process

Extraction to consolidation at
period-end SAP S/4HANA
© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC
Streamlined local and group accounting

One data model

SAP S/4HANA
Rich dimensionality GROUP REPORTING

One UI

SAP S/4HANA
One analytical toolset LOCAL ACCOUNTING

Integrated process

Accelerated processing SAP S/4HANA

“continuous close”
© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC
 Redefining financial close

Close timeline – past

Close timeline – proposed

© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC

Building blocks for a streamlined group close

Non-SAP

SAP ECC

Additional S4

SAP Group Reporting SAP Analytics

Data Collection Cloud

SAP S/4HANA
Group Reporting

© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC

Building on tradition and trust

EC-CS / BCS BPC

 Accounting document principle and logs  Rule-based eliminations and master-data
 Process monitors driven rules
 Automatic Consolidation of Investment (as  Flows on all B/S items- principle
alternative model for customers with  Rule-based reports (inspired by BPC
higher automation needs) account transformations) and subgroup
currencies

 SAP S/4HANA integration  Data Collection incl. comments and

 Concept of instant access to universal unstructured data
journal data  Rules engine and data mapping features
 Data release process and validation-at-  Restatements and flows on all B/S items-
source principle

S/4HANA Embedded BPC FC

© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC

Identical innovations in S/4HANA Group Reporting cloud and OP

2017 2018 2019 2020

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

S/4HANA Cloud
Group Reporting
1705 1808 1908 2008

S/4HANA Group
Reporting On-Premise
1809 1909 2020

First shipped in cloud version in May 2017. 13 quarterly cloud releases since then .
On-premise shipped annually – roles up innovations from prior cloud releases

© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC

SAP’s strategy for consolidation in a note

“SAP S/4HANA for Group Reporting is SAP’s

strategic consolidation solution moving
forward in particular for customers
implementing SAP S/4HANA irrespective of
deployment option (cloud or on-premise), as
well as for customers looking for a cloud
standalone offering”

“Customers can continue using SAP’s

legacy consolidation solutions (SAP BPC,
SAP FC, SEM BCS, EC CS) within the
Note 2866878 timeframes for standard maintenance”

© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC

SAP S/4HANA Group Reporting – Customers
Non-exhaustive list, Sept. 2020

Live customers On-going projects

High-Tech Prof Services Utilities Metals Media Insurance Banking Oil & Gas Engineering Transport Life Science Telco
MEE EMEA MEE GC NA MEEx2 NAx3 NA NAx2 MEE NA NA
Sensirion KMD Loacker Sirui
Official ref. Official ref. YouTube Official ref.

Healthcare High-Tech Life Science Automotive Retail Forest Prod. CP High-Tech Automotive Banking Education Machinery
MEE NA NAx2 NA NAx3 MEE EMEA NAx3 MEEx3 EMEA APJ APJ
BBT Gruppe Autodesk CSL Behring

Banking Oil & Gas High-Tech Telco CP Mining Distribution Life Science Engineering CP High-Tech Distribution
MEE NAx2 NA NA NAx3 APJx2 GC EMEA MEE GC GCx2 MEEx2
NAx3

Sports Life Science Consumer Distribution CP Engineering Automotive Transport Chemicals Banking Forest Prod. Oil & Gas
EMEA MEE Products MEE NA MEEx2 GCx2 NA LAC MEE LACx2 EMEA MEE

High-Tech Telco Life Science Prof Services Banking Oil & Gas Retail Chemicals
Retail
APJ MEE MEEx4 NA MEE APJ MEE EMEA
NA

© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC

SAP Roadmap for S/4HANA Group Reporting

SAP Roadmap Explorer - Corporate Close

© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC
Roadmap Highlights 2020

Integration Group
Streamlined IC Reporting Data
Extensible Line item validation
matching and Collection with on-
dimensionality & substitution
elimination prem S/4HANA
Group Reporting

Simultaneous
Unstructured Data in
Processing of
Equity Pickup Group Reporting
Multiple Group
Data Collection
Currencies

delivered planned for 2011 release

© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC
 Deep dive into the S/4HANA Group Reporting solution

Deloitte S/4HANA Group Reporting – September 2020 15

 Traditional consolidation data flow
And its typical pain points

OPERATIONS CONSOLIDATION REPORTING

Planning, Budgeting & Forecasting Analytics

General Management Consolidation(s)

Ledger(s)

Legal Consolidation

Disclosure Management
Front-ends
ETL
DWH
Cons. Top
Data Data IC Data Currency IC
... of side CFS
General
valid. Ledger collection recon valid. transl. elim
invest adj.

Local close Submission Consolidation

ETL

Local / group Enterprise

Group Master Data
Master Data Master Data

Data transfer Reconciliation

Deloitte S/4HANA Group Reporting – September 2020 16
 Traditional consolidation data flow
And its typical pain points

OPERATIONS CONSOLIDATION REPORTING

Lack of
flexibility /Planning, Budgeting & Forecasting Analytics
recon issues
Lack of
General Too many Management Consolidation(s) integration
Ledger(s) iterations

Lack of Legal Consolidation

Too late in Too complex

Disclosure Management
process the process / rigid
orchestration

Front-ends
ETL
DWH
Cons Top
Data Data IC Data Currency IC
... of side CFS
General
valid. Ledger collection recon valid. transl. elim
invest adj.

Lack of Workload /
Audit trail not user
Local close Submission friendly Consolidation Data
ETL

redundancy

Local / group Lack of Enterprise

Group Master Data
Master Data unification Master Data

Pain points Data transfer Reconciliation

Deloitte S/4HANA Group Reporting – September 2020 17
 Next generation consolidation data flow
How S/4HANA and Group Reporting help change the paradigm
OPERATIONS CONSOLIDATION REPORTING

Common General Ledger Embedded Consolidation Analytics

Planning, Budgeting & Forecasting

Legal consolidation
IC reconciliation

Validations

Disclosure Management
Data Data Top
... Curr Cons of
release collection IC elim side
transl. invest
(read) (manual) adj.

Front-ends
DWH
Local close Group close

Local & group master data

Management Cash Flow

consolidations Statement

Virtual data models

Embedded Analytics Data views

Deloitte S/4HANA Group Reporting – September 2020 18

 Next generation consolidation data flow
How S/4HANA and Group Reporting help change the paradigm
OPERATIONS CONSOLIDATION REPORTING

Common General Ledger Embedded Consolidation Analytics

Planning, Budgeting & Forecasting

New IC
framework /
New
cockpit
Legal consolidation
IC reconciliation
validation Live data
framework / Validations connection
cockpit

No data
replication/

Disclosure Management
drill through
...
Data Data
Curr Cons of
Top
to source release collection IC elim side
transl. invest
(read) (manual) adj.

Front-ends
Integrated
process
orchestration DWH
Local close Group close

Local & group master data

Integrated Management Cash Flow

data model / consolidations Statement
master data Standard
Virtual data models Virtual
embedded
reports reporting
Embedded Analytics logic
Data views

Deloitte S/4HANA Group Reporting – September 2020 Major S/4HANA and Group Reporting innovations 19
 Deep dive into the S/4HANA for Group Reporting solution
Overview of showcases

Process
Master data Data collection IC reconciliation Consolidation Reporting
orchestration

Union between
Fiori Launchpad Period IC Matching & Intercompany Embedded Reporting
accounting &
overview Preparation Reconciliation eliminations (P&L per entity)
2’ 2’ consolidation 3’ 4’ 4’

Consolidation Data submission - Reporting rules &

Central adjustments
CoA Monitor drill-through
2’ 4’ 4’

GL account - Release from the Consolidation of Management view

FS item mapping Universal Journal Investments on the fly
2’ 3’ 3’

Dimensional SAP Analytics Cloud

Flexible upload
hierarchies
2’ 5’

Consolidation
Groups (scopes)

Deloitte S/4HANA Group Reporting – September 2020 20

 Way forward / Q&A

Deloitte S/4HANA Group Reporting – September 2020 21

 Deployment options
Several options to deploy Group Reporting within a S/4HANA landscape

CLOUD ON-PREMISE

Option 1 Option 2 Option 3 Option 4 Option 5

One S/4HANA Cloud One S/4HANA Cloud One S/4HANA On-premise One S/4HANA On-premise One S/4HANA On-premise
platform where Group platform where Group platform where Group platform where Group platform where Group
Reporting is combined with Reporting is integrated with Reporting is combined with Reporting is integrated with Reporting is combined with
Accounting external sources Accounting external sources Central Finance

S/4HANA Cloud S/4HANA Cloud S/4HANA On-premise S/4HANA On-premise S/4HANA On-premise

Group Reporting Group Reporting Group Reporting Group Reporting Group Reporting

API API API API

Accounting Accounting Central Finance

Flat file SAP Non-SAP Flat file SAP Non-SAP

ERP ERP ERP ERP
SAP SAP Non-SAP
ERP ERP ERP

Deloitte S/4HANA Group Reporting – September 2020 22

 Implementation approach
Underlying question: what are the key drivers?

Key drivers Implementation approach

 Transformation / greenfield approach with holistic view Parallel implementation of S/4HANA Core Finance

01
 Design & implement S/4HANA as one integrated solution (or Central Finance) and Group Reporting
S/4HANA Core Finance
 Group requirements as a key foundation
Group Reporting
 Also recommended with Central Finance approach

 Staggered / brownfield approach Group Reporting implementation after S/4HANA

02
 Focus on the Core Finance solution first Core Finance; most of the entities already live
 Group requirements can come later e.g. once the S/4HANA Core Finance

S/4HANA technical migration has been completed Group Reporting

Implementation of Group Reporting as a standalone

 Meet the group requirements is the priority
solution or ahead of S/4HANA Core Finance
 E.g. in a context of acquisition or merger
 Integration with Core Finance as a potential next step
03 Group Reporting

S/4HANA Core Finance

Deloitte S/4HANA Group Reporting – September 2020 23

 Proposed evaluation methodology
Our methodology to help you evaluate Group Reporting in the light of your requirements
1. Strategic directions &
requirements
• Gather general IT /
architecture requirements
Activities
• Collect & prioritize
business requirements
• Identify KO-criteria &
current pain points
Deliverables
• Requirements catalogue
with criticality, use cases
& pain points
Effort
• 2 - 4+ weeks
Deloitte S/4HANA Group Reporting – September 2020
2. Target state
• Assess if / how the
solution meets the
requirements
• Identify improvement &
simplification
opportunities / quick wins
• Fit-gap analysis
• Costs / benefits analysis
• System demo(s) / PoC
• 2 - 4+ weeks
3. Validation (optional)
• Review & validate the
results with SAP
• Clarify remaining open
questions
• Validation workshop with
SAP, including written
feedback
• 2 - 3+ weeks
4. Roadmap
• Prepare
recommendations in
terms of scope,
approach, deployment
options, planning & effort
estimation
• Recommended solution
implementation roadmap
(in line with the S/4HANA
program)
• 2 - 3+ weeks
24
 Open discussion / Q&A

Any particular
Do you already
point you would
feel what the
need more
solution could
explanations?
bring to your
organisation?

?
Any challenge you Ready for a
see with this subsequent
solution? detailed demo?

Deloitte S/4HANA Group Reporting – September 2020 25

 Appendix

Deloitte S/4HANA Group Reporting – September 2020 26

 Deep dive into the S/4HANA for Group Reporting solution
Remind of the Process orchestration Showcase
1. Access the Fiori
environment & customize
your homepage

Process 2. Perform the reporting

orchestration process using Tiles/ Apps

Fiori Launchpad
overview

Deloitte S/4HANA Group Reporting – September 2020 27

 Deep dive into the S/4HANA for Group Reporting solution
Remind of the Master Data Showcase
Master data with Global accounting
accounting union hierarchies
All enabled fields
come with
optional break-
down.

Hierarchical
eliminations
Can be enabled
Master data for Segment,
Profit Center
Consolidation Unit
is always enabled
Union between
accounting &
consolidation

To decided if
additional
dimension are
relevant for BCF

Deloitte S/4HANA Group Reporting – September 2020 28

 Deep dive into the S/4HANA for Group Reporting solution
Remind of the Data collection

1. Trigger the recovery

of G/L postings in
consolidation

Data collection

Release from the

Universal Journal

2. Visualize the released

amounts
(incl. G/L dimensions)

Deloitte S/4HANA Group Reporting – September 2020 29

 Deep dive into the S/4HANA for Group Reporting solution
Remind of the IC Reconciliation Showcase

1. Define reconciliation
cases

IC reconciliation

IC Matching &
Reconciliation

2. Balance reconciliation
cockpit

Deloitte S/4HANA Group Reporting – September 2020 30

 Deep dive into the S/4HANA for Group Reporting solution
Remind of the Reporting Showcases

1. Run retrieves in
embedded Design Studio
Reporting

Drill to accounting 2. Drill down to the G/L

documents Journal entries

Deloitte S/4HANA Group Reporting – September 2020 31

 Deep dive into the S/4HANA for Group Reporting solution
Remind of the Reporting Showcases

Reporting

SAP Analytics Cloud

1. Build your own

analytics stories

Deloitte S/4HANA Group Reporting – September 2020 32