S4H Finance 1809 Whats New - Lars - F PDF

SAP S/4HANA 1809
Scopes Highlights for Finance

Michel Haesendonckx, Finance and Risk Solution Management
October, 2018
PUBLIC
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Intelligent Financial Processes SAP S/4HANA Finance 1809
What’s new in S/4HANA 1809 in summary Overview
Enhanced New Enhanced Enhanced
Real-time margin analysis Predictive accounting Transfer pricing Treasury Management
Integrated New Enhanced

Integrated financial
Universal allocation Embedded analytics
planning
Financial Planning & Analysis Treasury Management
New New New Integrated

Good and invoice receipt Self-service tax Revenue accounting and
Advanced financial close reporting
reconciliation
Compliance
New New Enhanced Enhanced
Advanced compliance
& Risk
Accrual management Group reporting Process controls
reporting
Accounting Financial Close
Enhanced New Enhanced

Topic video available
SAP Cloud Platform Amount field extension Central Finance
(direct link by clicking
on the topic)
Platform Central Finance
Intelligent Finance process running on single source of truth
How to most effectively utilize the company’s financial resources to optimally increase profitability
and grow, while avoiding putting the company at serious financial risk
Plan & Margin Simulate &

Cost control Analyze-to-Optimize
forecast analysis optimize
Financial Financial
Entity Close Group Close Record-to-Report
accounting Reporting
Financial Steering Model (Universal Journal)

Intelligent Financial Processes
What’s new in S/4HANA 1809
Integrated Enhanced Enhanced New
Integrated planning Real-time margin Predictive accounting

Transfer pricing
analysis
New
Product / service
Universal allocations costing & inventory
valuation
Enhanced
Flexible and self-service,
embedded reporting

Financial Financial
New New New

Goods receipt invoice Self-service tax audit
Group reporting
receipt reconciliation
New Enhanced
Advanced compliance
Accrual management
reporting
New
Advanced financial close SAP Process controls

Intelligent Financial Planning & Analysis

Transfer pricing
analysis
New
Product / service
valuation
Enhanced
embedded reporting

Financial Financial

Enhanced
Real-time margin
analysis
Margin Analysis Enhancements

with SAP S/4HANA 1809

Transfer pricing
analysis
New
Product / service
valuation
Enhanced
embedded reporting

Financial Financial

Profitability Analysis in SAP S/4HANA
Instant and reconciled by nature
Invoice with Conditions

Amt in CO Area Curr. Benefits
Material 01 02
Sales Sales Group Tools Pumps No more reconciliation needed by nature &
Sales Deductions GL Account multi-dimensional reporting by market
Profit and Loss Statement segments
+EBIT - 49 58
Delivery with Valuation
+Contribution Margin I - 824 - 1.322
Product Variable COGS +Net Sales - 3.294 - 4.265 Consistent & aligned approaches in
Costing Fix COGS +Sales Revenue - 3.311 - 4.288 Finance and Controlling for currencies,
Revenue Domestic 41000000 - 3.199 - 3.851 accounts/cost elements, extensibility and
Revenue Foreign 41001000 - 112 - 437 other
Settlement +Discount 17 23
Sales Discounts - Domestic 44002000 16 18
Production Sales Discounts - Foreign 44002100 1 5 Semantic tags to classify accounts and
Production Variances
+Cost of Goods Sold 2.471 2.943 define KPIs for reporting
COGS Material 50301000 1.408 1.677
COGS Labour 50302000 469 559
Attributed PSG/Settlement
Project COGS Overhead 50303000 593 706 Combining well-proven functionalities from
+Variances 165 256 costing-based CO-PA with innovations
System R & D Costs Input Variance 94 146 based on Universal Journal, e.g. CO-PA
Scrap 71 110
derivation of market segments for balance
Marketing Costs 94222000 296 593
Attributed PSG/Allocation R&D Costs 94223000 99 176
sheet items
Overhead Sales & Admin Costs Administration Costs 94224000 198 332
Mgmt Marketing Costs Other Revenue/ Other Expenses 94227000
Simplified and faster set up of Profitability
Amortization /Depreciation 94226000
Analysis, since it is based on settings in GL
and CO

Instant Margin Insight with Profitability Analysis in S/4HANA
Settlements & Settlements &

Reporting Reporting
Assessments Assessments
Within Period Period Close Within Period Period Close
Profitability Analysis Costing-based

in S/4HANA Profitability Analysis
Universal Journal Universal Journal COPA
Traditional ERP
Instant margin insight with ▪ Separate data model
S/4HANA
▪ Reconciliation challenges
▪ Not real-time
Added value of Profitability Analysis integrated in the Universal Journal
Integrated
profitability Costing-based
Capability Example
analysis COPA
in S/4HANA
Reconciliation
Reconciliation of legal and management accounting and profitability,
for example by profit center
v x
Drilldown by profitability
characteristic
Drilldown by product and customer-related characteristics in COGS and revenues
within income statement
v x
from income statement
Profitability characteristics
on balance sheet items
For unbilled revenues or WIP, customer wants to see the project, region, customer category v x
Top-down distribution Distribute high-level costs to the relevant market segments to allow profitability analysis v v
Realignment
After changes of profitability characteristics such as division,
it is possible to derive for historic data new values in margin analysis
v v
Breakdown of COGS into fixed and variable, as well as different kind of costs
Cost of good sold
(Cost component) split
such as material, administration and overhead costs v v
(Actual costing scenario added with S/4HANA 1809)
Production variance split Distinguish variances in costs of producing materials by price, quantity or scrap variances v v
Sales conditions can be used to calculate contribution margin level,

Statistical sales conditions such as sales commissions, calculated freight or discounts, which are not posted in G/L v v
(with S/4HANA 1809)
Incoming sales order entry

Creation of a sales order item generates expected revenue and COGS entry in profitability
v v
(with S/4HANA 1809, using predictive accounting logic) * Single valuation

Reconciled Profitability Analysis
Refinement of Cost of Goods Sold
Income Statement Details – Cost Estimate New Profitability Analysis

Revenue (based on accounts)
1.900 Labor 150
- Cost of Sales Goods Sold 1.200 Sales & Sales Deductions 1.900
COGS Split External Labor 250
Gross Margin Net Sales
Material fix 300
- Marketing Cost - COGS Labor 400
Material variable 250
- R&D Cost - COGS Material 550
Overhead 180
- Administration Cost Administration 70 - COGS Overhead 250
+/- Other Revenue / Other Expenses
Total 1.200 Standard Margin
+/- Amortization / Depreciation - Production Variance
EBIT Gross Margin
Before SAP S/4HANA, COGS

are posted to one G/L account
in accounting only Profitability Analysis has been
refined to reflect the standard
Details for manufacturing the cost component split on the
product such as labor or G/L account
material costs coming from the
costing sheet, were not
displayed.

COGS Split with actual Costing
Cost Components
COGS Split with
actual Costing
Standard
Actual
...
▪ In any ledger
▪ Fixed / variable
▪ Additional
costing variants
▪ Parallel splits
Statistical Sales Conditions
Condition Stat
COND 1
COND 2
COND 3 X
COND 4 X
Statistical sales
Customer Invoice
conditions Pricing
0L
0L
0L
0L
0C
Post in 0C
Extension Ledger 0C
0C

Incoming sales orders presented in margin reporting
using Predictive Accounting capabilities
Incoming sales orders Predicted revenue
Feb Mar Apr Feb Mar Apr
Incoming
Sales Orders
More accurate
forward looking view
with S/4HANA

Instant Margin Insight with S/4HANA
COGS Split with

actual Costing
Statistical sales
conditions
▪ Multi-dimensional reporting
based on Universal Journal
Incoming
Sales Orders ▪ Reconciled by nature
▪ Real-time

New
Predictive accounting
Predictive accounting

Transfer pricing
analysis
New
Product / service
valuation
Enhanced
embedded reporting

Financial Financial

Different types of predictive logic
adding intelligence to finance applications
TOP-DOWN Prediction sum sum
Time series algorithm on historic

data in order to predict future values
considering trend, cycles and/or
fluctuation
Line item Predict

BOTTOM-UP Prediction Line item
Predictive Accounting on the basis of

predicted documents being part of an Predictive Predictive
Sales Order
Goods Issue Invoice
individual business process and its
document flow
S/4HANA 1809

Financial insight into processes not yet GAAP relevant –
Example of moving towards Predictive Close
Sales Delivery /
Quotation Invoice Payment
Order Goods Issue
Actual data for

Current accounting scope  Statutory reporting
 Management reporting
Actual and predictive data for

Future accounting scope  Management reporting

Creating forward looking margin insights
using predictive accounting
Accounting for incoming sales orders First commitment scenarios
• New concept for handling of predictive data Commitments:
• Financial line item details for incoming orders reporting • Are stored in the same basic structure as in the universal journal
• Review incoming sales order report • Include cost assignments to work breakdown structure (WBS)
• Provides a comprehensive overview of all orders and element, order, cost center, and so on but also link to the supplier
their values for the time period regardless of billing status • Can be shown for derived characteristics, such as profit center
and functional area
Incoming sales orders Predicted revenue
Feb Mar Apr Feb Mar Apr

Origin of predictive and combined KPIs
Prediction (extension ledger)
Group

Integrated
Integrated planning
Integrated Financial Planning


Transfer pricing
analysis
New
Product / service
valuation
Enhanced
embedded reporting

Financial Financial

Planning: What has changed
Before
Standalone planning application in the
Cloud (SaaS) Analytics Cloud
Standalone on premise application

BPC (all versions)
Planning application embedded within

S/4HANA (on premise) BPC Optimized
Planning application embedded within

S/4HANA Cloud and other Cloud apps N/A

Planning: What has changed
Now
Standalone planning and with SAP

S/4HANA and other Cloud apps
Analytics Cloud
Customers requiring an on premise

solution
BPC*
*BPC optimized can still be used for real-time planning on SAP S/4HANA on premise and BPC for
BW/4HANA is recommended for standalone on premise deployments

Basic Equation
Planning Tool (SAC / BPC)

+ S/4 Integration (SAC Connector / HANA Views)
+ Financial Planning Content
+ Flexibility
= S/4HANA Financial Planning

Overall Architecture
SAP Analytics Cloud SAP Cloud Platform

for Planning
Persistency
Customer / Partner OData

SAP S/4HANA
File Upload One Persistency Allocations
API
ACDOCP Production Orders, CPM, …
Extensions Embedded Analytics
Virtual Provider
BPC for S/4HANA Finance
On Premise only

SAP Analytics Cloud
Core planning workflow
Simplify Experience Trust
▪ Simply create and modify calculations ▪ Analyze, plan and visualize in the same ▪ Enjoy a new generation of planning in the
and planning models and on the fly application cloud with a modern look and feel
▪ Take action anytime, anywhere on the ▪ Personalize your KPIs, dashboard, ▪ Plan and simulate at any level of detail, with
desktop or on the go processes and stories any number of users, at any time
▪ Align plans across finance and ▪ Collaborate in-context of your plan and ▪ Drive high performance planning and
business units with direct integration make faster decisions forecasting process
into SAP Business Planning and
Consolidation

SAC – S/4 Integration: Architecture Vision
S/4 Connector for SAC Integration
Plan operations
Public dimensions Plan Data

SAP Analytics Cloud
OData Service OData Service OData Service OData Service
Master Data ACDOCA ACDOCP ACDOCU One Exposure
Cost Estimate SD Conditions FAGLSKF

ACCOSTRATE
Cost Estimate Allocations Availability Check Predictive
CPM Projects Production Orders Consolidation
SAP S/4HANA Cloud

Result: Same Data in S/4 and SAC
S/4 HANA
SAC

Integrated financial planning
leveraging S/4HANA and SAC
Financial Planning
Connectivity of SAP Analytics Cloud to a on-premise planning

environment
• Send plan data that has been treated or modified in the SAP
Analytics Cloud solution to an ACDOCP planning table without
using XLS export or import functionality
Plan data allocations reworked to update new universal

planning persistency
• Allocation of planned costs for first scenarios
• Enhancement of data structures to better support reporting of
allocation results
• Simplify rule definition for plan allocations
• Improve traceability of allocations

New
Universal allocations
Universal allocation

Transfer pricing
analysis
New
Product / service
valuation
Enhanced
embedded reporting

Financial Financial

Motivation of Universal Allocation
Problem Statement - Why do we need a Change?
Organizations struggle Analysts struggle to answer Lack of simulation Lack of state-of-the-art

to understand their allocation questions capabilities visualizations
allocation process
▪ Complex organization ▪ How did this cost get ▪ How would the result look ▪ Limited standard reporting
structures requiring multiple allocated to my area? like in case we merge two ▪ ERP transactions only
views (stewardship vs (Traceability – billed in vs legal entities? based on one cycle at a
business unit) allocated) ▪ Customers want to time
▪ Legal and industry challenges ▪ How do amounts flow understand and identify ▪ Difficult to explore the
▪ High number of cycles & across the chain of cycles possible financial effects of allocation structure
segments (copy plan to actual) and segments? changed allocation rules on holistically
▪ Long cycle runtime ▪ Are the tracing factors their financial data ▪ Simplify process with guided
▪ Complex knowledge required reliable? (SKF/activity type) ▪ Tools are bound by procedures, reducing effort
▪ Dynamic organization ▪ Why am I accountable for operational requirements of knowledge transfer
boundaries this? (controllable drivers) (year-to-date problem)

Our Vision of Universal Allocation
Simplify Allocations by combining various capabilities under ONE umbrella
Universal Allocation…
 provides one architecture for FI and CO
allocations.
 combines actual and plan.
 provides simulation capabilities.
Universal allocation
 includes actual and predictive data (ledgers).
 presents data in a common structure.
 provides all required reporting currencies.
 shows currency breakdown.
 can be enhanced / extended.
 provides traceability of the value flow.
 simplifies the process with guided procedures and
validations. Universal Allocation will not initially cover…
 activity allocations.
 settlements, e.g. of IO and WBS elements.

Universal allocation in S/4HANA 1809
Delivering 4 Apps for Plan Allocations
Perform allocations of planned

Manage overhead allocation overhead costs from cost
cycles to specify the rules and centers to other cost centers or
settings by which the system is projects.
to allocate planned overhead
amounts and quantities from More Information.
cost center to other cost centers
or projects. More information.
Manage distribution cycles to Perform distributions of planned

specify the rules and settings by amounts from cost centers to
which the system is to allocate other cost centers or projects.
planned overhead amounts and More Information.
quantities from cost center to
other cost centers or projects.
More information.
This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided
without a warranty of any kind, either express or implied, including but not limited to the implied warranties of merchantability, fitness for a particular purpose, or noninfringement.
Outlook
Manage Universe Allocations in one Place
SAP GUI Manage Allocations

Outlook
Prototype for Cost Object Analysis
Example Scenario
You’re a manager, who is responsible
for a Cost Center. You want to answer
the following questions:
➢ Who is allocating which cost to me?

See the original Cost Centers that
are sending you costs via
allocations.
➢ Which tracing factor is used?
On which basis is the cost amount
calculated (e.g. headcount or sqm)
➢ To whom do I send which cost?
Comprehend to which receivers
you send cost on which basis.

Outlook
Prototype for Profitability Analysis
Example Scenario:
You’re a controller/business user, who
wants to comprehend the cost structure
of specific product in detail.
➢ Who is allocating which cost to the

product ?
➢ Which tracing factor is used?
➢ Which cost elements are used?
➢ How does the cost flow looks like?
Where are the cost originally coming
from?

Transfer pricing
Enhanced
Product / service
costing & inventory
valuation
Product costing/ inventory valuation

Transfer pricing

Transfer pricing
analysis
New
Product / service
valuation
Enhanced
embedded reporting

Financial Financial

Extension of the Steering Model to include related operational information
Production cost analysis
ECC:
Target/ Actual by Cost Center/ Activity
(Work Center & Operation Removed).
S/4HANA:
Production Cost Analysis by Work
Center/Operation
(No Summarization) *
* Same approach for equipment, functional

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A Sample Supply Chain… and the role of transfer pricing
Worldwide supply chain with no transparency into actual cost & currency impacts on P&L
44
12
1 2
26
5
Material & Value Flow (legal)

@ Intercompany Transfer Prices Agreed Between
© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC
Entities 53
A Sample Supply Chain… and the role of transfer pricing
The same worldwide supply chain with intercompany profits eliminated
44
28
28
12
2 8
1
26
14 5
3
Material & Value Flow (legal)

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC
…without Intercompany & Currency Translation Profit 54
(Mgmt. view)
Transfer Pricing: Legal – Group – Profit Center
Group
Company 1 Company 2 Company 3
Profit Profit Profit Profit

Center 1 Center 2 Center 3 Center 4
Financial Management
Entity Close Intercompany Consolidation Disclosure
Accounting Accounting

Transfer Pricing: Markups for material movements – Divisions
Group
Company 1 Company 2 Company 3
Division 1 Division 2
Profit Profit Profit Profit

Center 1 Center 2 Center 3 Center 4
Financial Management
Entity Close Intercompany Consolidation Disclosure
Accounting Accounting

Enhanced
Embedded reporting
Embedded analytics

Transfer pricing
analysis
New
Product / service
valuation
Enhanced
embedded reporting

Financial Financial

Reporting Challenges in the Past
• Hard to find the right information
• Not possible to solve the business issue starting

from analytics
• Inadaptability of analytics structure to changing

reality
• High manual effort to detect root cause

Embedded Analytics in SAP S/4HANA
Actionable insights embedded in the business process
• All relevant information

in one view
• Based on a single, real-
time source


in one view
time source
• Flexible drill-down


in one view
time source
• Flexible drill-down
• Jump straight into the
business process
Take action


from analytics

reality

Why a new UI for hierarchy maintenance?
Reality Customer Expectation
Financial Statement Version Custom Hierarchy Company Hierarchy
Cost Center Hierarchy Project Hierarchy FS Item Hierarchy

Increase the Adaptability of Analytics Structure to Changing Reality
Introducing global accounting hierarchies
• Consistent UI
for hierarchy
maintenance
• Supports time
dependency
• Status control


from analytics

reality

Automate Root Cause Detection
Leveraging Machine Learning for anomaly detection
• Smart alerting on
budget overrun

Automate root cause detection
Leveraging Machine Learning for Anomaly Detection
budget overrun
• Automated
anomaly detection

Automate Root Cause Detection
Intuitive action
budget overrun
• Automated
anomaly detection
• Actionable
insights

Actionable, Flexible and Automated Insights for Finance
Using SAP S/4HANA embedded reporting
Actionable insights Unified hierarchy maintenance Automated root cause detection
Global accounting
hierarchies
Leveraging
Machine Learning
Universal Journal

Analytics Embedded in SAP S/4HANA
Virtual Data Models as part of Transactional Systems
SAP S/4HANA
UX Transactions Built-in Analytics

hybrid Analytics
Business Virtual Data

Transactions View Models
Finance
Logistics View View
Etc.
View View View
Database Physical Tables

Intelligent Accounting & Financial Close

Financial Financial
New New New

Group reporting
New Enhanced
Advanced compliance
Accrual management
reporting
New

New
Advanced financial
close
Advanced financial close

Fast, reliable, low touch Close

Financial Financial
New New New

Group reporting
New Enhanced
Advanced compliance
Accrual management
reporting
New

SAP S/4HANA Financial Closing cockpit – Status S/4HANA1709
Perfect Planning, Automation and Monitoring
Benefits Capabilities
Automated closing tasks, even in remote
Faster Entity Close through systems and powerful, user-friendly
improved closing efficiency application for manual tasks
Collaboration, notifications, and workflows
Governance and Compliance
Define a global game plan for the entity
close; leverage it for multiple org units and
closing cycles
Transparency and Insight
Audit trail, logging, documentation
Real-time insight into the closing status

and comprehensive Analytics
Monitoring by subsidiaries and headquarter
Close Analysis
15-25% Faster Closing cycle – while ensuring high quality compliant results
Source: SAP Performance Benchmarking
Note: The SAP Financial Closing cockpit Add-on is the predecessor solution to the SAP S/4HANA
Financial Closing cockpit, which is shipped as an Add-on to ECC and SAP S/4HANA. Functional Scope
is comparable to the SAP S/4HANA Financial Closing cockpit, except for Fiori User Experience and
© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Smart Business Analytics. 76
SAP S/4HANA Cloud for Advanced Financial Closing
New cloud based offering as part of SAP S/4HANA Cloud
Support for the various

stakeholders like:
SAP S/4HANA
Advanced Cloud
▪ Business Experts, who Financial Closing
define the overall plan SAP S/4HANA Cloud

▪ Accountants, who
process manual tasks
and monitor automated
steps
▪ Approvers with a
dedicated App
▪ Management with
comprehensive Analytics
© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC This is the current state of planning and may be changed by SAP at any time without notice. 77
Automation
Define Task
Templates to
increase degree of
automation.
Benefit from Task

Template Sets with
standard closing
steps including their
respective sequence
and interdependency
for:
▪ General Ledger
▪ AP/AR
Analytics
Analytical List Page

with:
▪ Overview Closing
Taks completion
▪ Visually supported
detailed view
▪ Task Detail
Analytics
Overview Page with:

▪ Open Tasks
▪ Tasks to be
Approved
▪ Number of Errors
▪ Completion Rate
▪ Task Completion
overview
SAP S/4HANA Cloud for Advanced Financial Close
Roadmap Q1/2019 and Product direction
Planned Q4/2018 Planned Q1/2019 Product direction
SAP S/4HANA Cloud for advanced financial closing for CoPilot Skills for Financial Closing The following additional features are planned for
US and Germany. The capability “Entity Close” will be future releases
• You can use the CoPilot with natural language
supported with the new product SAP S/4HANA Cloud for
processing to call up, schedule and edit tasks ▪ Situations and KPIs: You can define Situations to
advanced financial closing”. For US and Germany country
round off automated notifications and KPIs to
specific closing tasks will be supported. The product offers Integration scenario for financial closing
the following features. automate the closing process:
▪ You can use the “SAP S/4HANA Cloud for advanced
– Situation Handling brings urgent issues to the
▪ Templates. You can define template to model and plan financial closing” as closing hub. Thus you can plan,
attention of specific groups of users who are then
closing cycles in terms of manual and automated tasks. process and monitor your financial closing for multiple
able to react immediately to the notifications they
▪ Task Lists can be generated from template for a specific On Premise systems.
receive.
key date.
– KPI based validations. KPI’s defined in the KPI
▪ Task Template Sets comprise all standard closing Additional countries modeler can be referenced to in closing tasks. The
applications and jobs with their respective sequence and ▪ The “SAP S/4HANA Cloud for advanced financial task status will depend on the KPI reaching or
interdependency for Accounts Receivable, Accounts closing” will support all countries by means of extended crossing certain thresholds.
Payable, General Ledger and Cost Accounting.
Task Template Sets. ▪ Configuration app for Task Template Sets. You can
▪ Events and Notifications. You can configure the system use this app to define customer specific standard task
so that notifications are automatically triggered and sent
sets e.g. for specific countries or specific processes.
upon certain events.
▪ GANTT-Diagram-view. The Process Closing Tasks
▪ Approval work flow: Closing tasks can optionally be
app will offer a GANTT-Diagram as additional view .
subject to approval.
▪ Analyze closing runs. A new analytical app supports
▪ Financial Close Monitoring. You can use an overview
you to analyze and compare completed closing task
page and an analytical list page to monitor progress and
completion of your closing activities.
lists.
New flavor: SAP S/4HANA Cloud for group reporting will

support the Group Close.
Roadmap Q1/2019: deployment option “Closing Hub”
SAP S/4HANA
Advanced Cloud
Financial Closing
SAP S/4HANA Cloud
SAP
S/4HANA SAP Cloud
Non-SAP SAP ECC SAP S/4HANA Platform
Cloud
SAP S/4HANA for Advanced Financial Closing
Product Direction: support for Group Reporting and Financial Reporting
Fast, reliable,
low touch Close
SAP S/4HANA for Advanced Financial Closing
Financial Financial
Accounting Reporting

New
GR/IR reconciliation
Goods and invoice receipt reconciliation

Faster GR/IR clearing and periodic close with higher precision

Financial Financial
New New New

Group reporting
New Enhanced
Advanced compliance
Accrual management
reporting
New

Customer
More Efficient GR/IR Clearing
Next level of user support with Analytics, Assistance and Machine Learning
Goods Receipts Invoice Receipts
Match
Rule based
clearing
No match
Write off
Intelligent Efficient Cleared

Recommendation clearing Balance
GR/IR Posting
Analytics, Assistance and Machine Learning

Customer
Analytical
capabilities
Customer
Embedded
collaboration
Customer
Intelligent
recommendations
Customer
ML@GR/IR Account Reconciliation: Intelligent Recommendations
The goal of the ML service is to learn from decisions taken in the past, to apply the learned knowledge to the new
business situation and to make recommendations for the next meaningful steps for each purchase order item.
The recommendations from the algorithm are seamlessly integrated in the UI.
Yes Automatic
GR equals
IR Clearing
Goods and Invoice Receipts

posted to a Purchase Order No
Recommend the best next action based on

similar decisions made in the past
Recommendation
Service
Automatic GR/IR Automatic

Write-Off
Clearing Postings Clearing
Investigation & Decision
Customer
From manual to automated processing
The quality of the recommendations of the ML service depends on the size of the training set. With the
availability of more and more historic data of user actions, the ML service gets better over time and the
recommendations of the machine can be translated in automated actions.
Phase 1 Phase 2 Phase 3 (Vision)

Manual Processing Processing with ML support Automated Processing
▪ The system logs the actions of the ▪ The training data is used to train ▪ As soon as the ML service is
end users. Thereby a set of training the ML service. considered to be trained well
data for the ML service is created. ▪ The recommendations of the ML enough with the available historic
service support the end user for data, the recommendations of
taking faster and better the ML service can be taken over
decisions. automatically. So more and more
manual steps can be replaced by
▪ The ML service gets better with automated actions of the
the number of processed items. machine.
Customer
More Efficient GR/IR Clearing
Next level of user support with Analytics, Assistance and Machine Learning
Business Benefits
Analytical
capabilities • Intelligent recommendations simplify and
accelerate the reconciliation process
• Fewer human interactions reduce the effort

for non-value adding activities
Embedded
collaboration • ML learns from the accountant’s decisions
• Reduction of open items
• Faster period end closing with higher
Intelligent precision (write-offs)
recommendations
Customer
New
Accrual management
Accrual management
Faster and more accurate accruals management

Financial Financial
New New New

Group reporting
New Enhanced
Advanced compliance
Accrual management
reporting
New

Customer
Accruals Process Overview – Traditional Approach
Incoherent manual processes due to different data sources
Purchase
Orders
Data Manual Management Manual
aggregation calculation decision Posting
Incoherent
postings
Employee
Incentives Manual Management Manual
calculation decision Posting
Journal
Entry
Vacation
days Data upload Calculation Approval
Aggregated Details
posting
• High manual effort

Audits
• High error rate
• Non-transparency and non-auditable, lack of trust
Customer
Accruals Process Overview with Intelligent ERP
Coherent automated processes with reliable outcome
Purchase SAP S/4HANA for Accruals Management

Orders
Unified accrual
Manual data structure
Accruals
Multiple Journal
Calculate Review Post
Sources Entry
Spread-
Accrual ▪ Unified User Experience
sheets
Object ▪ Transparent Reporting, Analytics
▪ Auditability
....

Customer
Simplified User Review
Unified process reduces complexity and enables users to manage accruals accurately

Customer
Intelligent Recommendations
Faster and more accurate user decisions with help of Machine Learning
▪ Extension of rule based

recommendations
▪ Intelligent recommendations
Rule based
Recommendation
Adjust
Approve ▪ ML continuously learns from
Investigation user decisions
& Decision
Intelligent
Recommendation  Higher accuracy

Customer
New
Group reporting
Group reporting
Eliminate or continuously drive group reporting tasks

Financial Financial
New New New

Group reporting
New Enhanced
Advanced compliance
Accrual management
reporting
New
Customer
SAP S/4HANA Continuous Accounting and Group Reporting
Cons. Calculations
Elimination
Intercompany
Traditional
Currency Final report
Group
Data upload
Reporting
Period -2 -1 +1 +3 +5 +10
Consolidation Final report

Continuous accounting calculations
(Intercompany, currency, validation, running simulations) Elimination SAP S/4HANA
Continuous
Period -2 -1 +1 +3 +5 +10
Accounting and
Group Reporting
Period end Potential time saved to
do value-added tasks
Customer
The World of Consolidation is changing
Simplification of Group Reporting in SAP S/4HANA & SAP S/4HANA Cloud
Without SAP S/4HANA With SAP S/4HANA
Consolidation Tool SAP S/4HANA (Cloud & On-Premise)
SAP S/4HANA
for Group Reporting
Data Warehouse &
Spreadsheets ETL-Tools Spreadsheets
real-time
access
SAP Non-SAP Local Accounting

Systems Systems
Customer
What are the advantages of real-time access?
Data Quality Speed Transparency
Postings can be checked Necessary adjustments can be Fully enabled Drill-through from
continuously against central done locally and results are consolidation to the line-items of
validation rules provided immediately for the entity (instead of
consolidation transformation in multiple
Shared Master Data and Rules systems)
for local and group closing Certain consolidation steps can
be performed before the „Single Source of Truth“
consolidation (e.g. currency
translation) Consolidation with free-of-choice
fields of the source system
Customer
Instant Data Insight with SAP S/4HANA for Group Reporting
Embedded analytics for operational accounting and consolidation
Customer
Streamlined Consolidations with SAP S/4HANA for Group Reporting
The new unified reporting platform for integrated Group Reporting
SAP S/4HANA (Cloud & On-Premise)
▪ SAP S/4HANA for Group Reporting

▪ SAP S/4HANA Accounting
(incl. SAP Central Finance scenarios)
Published Standard API’s
Customer
SAP Group Reporting

Data Collection
Non-SAP sources | Non-financials | Notes

Customer
SAP Group Reporting SAP Analytics Cloud

Data Collection
Non-SAP sources | Non-financials | Notes Dashboarding | Analytics | Planning

Customer
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

Customer
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

Other Cloud or
On-Premise Solutions
Customer
Customer Choice for Consolidation
Consolidation solution embedded within

SAP S/4HANA SAP S/4HANA for Group Reporting
(on-premise and single- or
multi-tenant cloud)
Customer
Customer Choice for Consolidation
Consolidation solution embedded within

SAP S/4HANA SAP S/4HANA for Group Reporting
(on-premise and single- or
multi-tenant cloud)
Customers requiring a standalone

deployment BPC
(on-premise)
Customer
SAP S/4HANA Cloud for Group Reporting
Product strategy
Continuous Accounting: Group Reporting Platform: Context to data: Engineered for Cloud:
▪ Unified reporting framework ▪ Support complete flow of ▪ Non-financial measures as ▪ Analysts predict 60% of
for local and group data in collection, processing, first-class citizens large enterprises will run
SAP S/4HANA Cloud analysis, publication financial consolidation in the
▪ Notes and qualitative data cloud by 2020
▪ Leverage all details of the ▪ Data categories and
accounting system where reporting cycles with are as important as number ▪ Faster innovation cycles
available varying levels of detail for crunching and adoption of legal
▪ Blending of local and group plan, actuals, simulation, ... ▪ Communication, changes
close (shared user ▪ Modern API‘s to flexibly preparation, education, ▪ Cost-efficient resource
experience, process ingest data from any source assistance functions sharing and automated
support, tools, ...) and feed adjacent systems operations
Customer
Process controls
Process controls
Continuous control monitoring and automated testing

Financial Financial
New New New

Group reporting
New Enhanced
Advanced compliance
Accrual management
reporting
New
Customer
Find problems faster and easier
SAP Process Control – continuous control monitoring and automated testing
Prevent problems by monitoring Support for monitoring configurations,
configuration and master data changes master data, transactions, and change logs
Manage by exception to reduce effort and Multiple data source types including
increase reliability reports, queries, and configurable tables
Readily reuse business rules across User-definable business rule parameters

organizations with user-definable and deficiency levels
parameters
Continuous control monitoring with
Understand root causes of exceptions and exceptions routed to appropriate users
deliver fully evidenced tests
Ability to monitor both SAP and non-SAP
business systems
R10 million (US$800,000) >200 80%

Savings in less than 12 months through the Business rules deployed for exception-based Estimated reduction in time required for CCM
implementation of SAP Process Control continuous control monitoring (CCM) business rule creation and maintenance
10% 75%
Reduction in auditing costs Reduction in manual effort on selected control
activities by managing by exception using CCM
Customer
SAP Process Control – objectives
Focus resources on high- Provide continuous insight Improve compliance and

impact processes, regulations, into the status of compliance business process quality
and risks and controls at the right cost
Prioritize control activities and Help ensure GRC information is Achieve your compliance and
efforts based on the most-critical always up-to-date, transparent, and business process performance
needs: consistent for effective decisions goals, while keeping your GRC
▪ Key business processes and timely actions: program costs under control:
▪ Critical regulatory mandates ▪ Evaluation progress ▪ Use of best-practice and intuitive
▪ Higher risks ▪ Policy acceptance user tools
▪ Continuous control monitoring ▪ Automated testing and
(CCM) monitoring
▪ Issue status
Customer
Automated control testing and monitoring of process flow
A high-level view of CCM in SAP Process Control
Define data sources Map to Analyze and

Trigger
and business rules controls report
FIN
Transaction
controls
Delivered rules O2C
SAP and reports Audit trail
Scheduling
P2P
Master data
controls
HR Dashboards and
Non SAP Configurable rules
analytics
and queries
IT Routing of
Configuration
workflow
controls
Fixed assets
Configurable Reports
deficiencies FIN = finance; O2C = order to cash; P2P = procure to pay
Customer
Sample automated controls
Financial Close Process Treasury Duplicate invoice evaluation

Amount posted to prior period Bank Master Data Changes Material price change analysis
GL postings - line Item level Inventory doc differs from system date
GL postings - document type level
Fixed Assets
Inventory doc differs from sys date- Company Code
FA Monthly Depreciation Expense
GL posting-detail level over deficiency limit Phys Inventory tolerance-doc level
FA Depreciation Keys Configuration
Recurring entries analysis Physical inventory tolerance-groups
FA Master Data Changes
Recurring entries schedule changes Standard price change impact
FA Account Determination Configuration
GL posting-acct level over deficiency limit Moving average price change impact
FA Depreciation Posting Rules Configuration
Accounting document changes - qty Phys inventory differences-line level
Accounting document changes Source list changes - plant level
Procure to Pay
Back posting flag changes POs created without GR reference
Vendor master changes
Exchange rate changes Incorrect purchase approval procedure
Duplicate invoice parameter changes
GL changes - chart of accounts level Inadequate purchase approvers, steps
Split vendor invoices v. tolerance
GL changes - company level Doc types w/ incorrect release procedure
Payments without goods receipt
More than two open posting periods POs created - incorrect proc, Doc Level
Payments without goods receipt – Company Code
"Permission to post" setting changes Changes to "create auto PO" setting
Invoice tolerance setting changes
Posting period & fiscal year changes Auto Control: Purchase Transactions with onetime vendors
Overpaid purchase orders
Overpaid purchase orders-Comp. level Auto Control: Vendor Credit notes
Customer
Sample automated controls (ctd.)
Order to Cash
Monitor the SAP Benefits Module to ensure
Billing document type/field changes Open order analysis - order age
that functionality to identify and track COBRA
Rebate-relevant billing changes Open orders versus all orders - % enrollment is configured and activated.
Sales returns versus total sales Payment term changes Analysis of Employee Master data – recurring
Sales returns by customer Payment terms credit period v. norm Payments/Deduction
Auto. credit check configuration changes Payment terms discount structure Analysis of Employee Master data – Additional
Payments
Auto. credit check effectiveness Auto Control: Customer Credit Notes
Analysis of Employee Master data – Basic Pay
Auto. credit deviation change Hire to Retire
Analysis of Employee Master data – Off cycle
Auto. credit seasonal factor change The SAP HR Benefits module is configured to limit payments
Credit design - item category contributions to 401K plans in accordance with IRC
guidelines Analysis of Employee Master data - External
Credit design - sales order level Bank Transfers
The SAP HR Benefits module is configured to limit
Credit design - shipping level contributions to 403b plans in accordance with IRC Analysis of Employee Master data – Employee
Credit risk - credit control level guidelines Loans
Credit risk - customer risk category The SAP HR Benefits module is configured to limit Analysis of Employee Master data – Employee
contributions to 457 plans in accordance with IRC Loan Payments Payroll
Customer pricing condition type changes
guidelines Wage Type Mapping to Symbolic Accounts
Customer pricing frequent changes
The SAP FMLA Workbench is configured to FDA/GMP Controls
One-time customer high value sales designate and track up to 12 weeks of leave as
One-time sales versus all sales - % FMLA leave in accordance with FMLA guidelines
Customer
Enhanced
Advanced compliance
reporting
Advanced compliance reporting

Advanced compliance reporting

Financial Financial
New New New

Group reporting
New Enhanced
Advanced compliance
Accrual management
reporting
New
Customer
SAP S/4HANA for advanced compliance reporting
Simplify and speed up global statutory reporting
Single framework for country-specific,
Simplicity and efficiency in fulfilling
periodic legal (incl. tax related) reporting
complex compliance reporting needs
End-to-end ad hoc reporting process with
workflow and scheduling
Flexibility that facilitates faster adoption of
constantly changing legal reforms Online communication with Government
authorities
Transparency to monitor your legal
compliance reporting on a global scale Self-service configurations
Supports multiple legal formats such as
XML, XBRL, TXT, PDF forms
Extensible report design environment

Available On-Prem or Cloud
Global dashboard monitoring of statutory

reporting tasks, submission statuses, etc
20% Reduction in overall efforts to generate, monitor and audit legal reporting needs
Source: SAP Performance Benchmarking
Customer
New
Self-service tax
Tax service
Intelligent recommendations and predictions
Periodic tax reporting

Financial Financial
New New New

Goods receipt invoice Self-service tax
Group reporting
receipt reconciliation • Periodic legal
New Enhanced (tax) reporting
Advanced compliance
Accrual management
reporting • Intelligent
New recommendations
Advanced financial close SAP Process controls and predictions
Customer
Tax Determination and Calculation
Challenges and obstacles in the past
SAP Ariba
SAP Concur
SAP ERP
SAP SAP Business

S/4HANA ByDesign
Redundant tax determination and calculation

within each application
Customer
Tax Determination and Calculation
Central tax determination with SAP Tax Service for multiple applications
SAP
Localization hub,
SAP Ariba Tax Service
SAP Concur
SAP ERP
Open API
SAP SAP Business

S/4HANA ByDesign
Redundant tax determination and calculation

within each application SAP SAP Ariba SAP ERP SAP SAP
S/4HANA Business Concur
ByDesign
Customer
Automation of Tax Calculation with Delivered Content
Integration with SAP S/4HANA 1809
SAP
Localization hub,
Tax Service
Country specific tax

content
Calculated Tax results
Typical integrated
Open API Calculation Engine
Business processes: Tax relevant data
▪ Purchase Order
▪ Sales Order
▪ Invoice
▪ Billing
▪ ... SAP ERP
SAP SAP Ariba SAP SAP
1809 ByDesign
Customer
Benefit from specialized Partners
Country and industry specific tax expertise
Select from available partners on:

SAP
www.sapappcenter.com
Localization hub,
Tax Service
Partner Apps
Calculated Tax results Partner Integration

Framework
Open API
Tax relevant data
SAP SAP Ariba SAP ERP SAP SAP

1809 ByDesign
Customer
Example: Partner Tax Solution for Brazil
Available with SAP S/4HANA 1809
S/4HANA Select Partner Solution Tax Partner

Localization in SAP App Center Solutions
• Tax relevant localization • Subscription via SAP App Center • Cloud-based

• Fiscal attributes data • SAP support launchpad • Indirect and Withholding taxes
• Pricing procedure • Partner solution access • Calculate and determine
• Invoice generation • Customer interaction allows tax Brazilian scenarios
• Accounting rules for each scenario • Brazilian governmental levels
• Legal maintenance
• Customize scenarios
• Traceability and logging
• SAP Certification (planned)
Customer
SAP Tax Compliance
Intelligent and automated tax controls through Machine Learning and Prediction
▪ Automatically detect tax deviations
▪ Leverage historical information and

ML to automatically classify work
items and propose next steps
▪ Gain reliable insights into tax

compliance status and remediation
▪ Reduce the risks and costs of

inaccurate calculations and liability
from noncompliance
Customer
An example
OPTIONAL TOPIC
Intelligent, end-to-end process design

with SAP S/4HANA
Intelligent Accounting and Financial Close
End-to-end process design: pre processes, parallel processes, data capturing and external submission
Pre-/Parallel-/Follow-on Processes
Request Approval Exception Handling Documentation
Financial Financial Electronic

Pre processes Entity Close Group Close Submission
Accounting Reporting
Automatic data
transfer to authorities
Spreadsheet myTickets-APP data

template upload capturing
Customer
Intelligent Accounting and Financial Close
End-to-end process design: pre processes, parallel processes, data capturing and external submission
Pre-/Parallel-/Follow-on Processes
Request Approval Exception Handling Documentation

Supported by SAP Shared Service
Framework and SAP Process Control
Financial Financial Electronic

Pre processes Entity Close Group Close
accounting Reporting Submission
Supported by
SAP Advanced
Compliance
Reporting
Spreadsheet myTickets-APP data

template upload capturing
Customer
Revenue accounting and reporting
Revenue accounting with S/4HANA 1809
Highlights
Adoption of legal changes in revenue accounting – improved Parallel Valuation and Revenue Accounting
support for disclosures
The SAP Revenue Accounting and Reporting application enables

users to:
• Utilize posting data that results from events related to revenue
recognition, such as fulfilments and invoices, for analytical
reporting and for meeting disclosure requirements
• Use the Revenue Accounting data sources with the Operational
Data Provisioning Framework (ODP)
Customer
Revenue recognition in more detail
IFRS 15 is a new standard of revenue recognition for revenue from contracts
with customers which will become effective beginning 2018. Besides several
Adoption of legal changes in revenue accounting – requirements it introduces a 5-step model of revenue recognition and has an
impact on financial reporting.
functional round offs for IFRS 15 and ASC 606
• Provide further features based on customer feedback to support the 5-step model outlined by IFRS 15
and ASC 606
• Define rules for deriving values of fields for revenue contracts and performance obligations (POBs)
• Define customized logic to calculate contract liabilities and contract assets
• Calculate the remaining fulfilment percentage for a time-based performance obligation
• Clean up and reverse productive data coming from external sender components
• Perform an extended check before saving contracts to database
• Enable change of transactional currency in the sales order
• Deliver enhancements to POB cancellations for linked POBs 5-step Model of Revenue Recognition in IFRS 15
• General performance improvements
• Reprocess contracts in batch
• Reprocess account determination in batch
• Performance improvements for archiving of contracts and revenue accounting items
• Calculate and post rounding differences in batch for fixed foreign currency method
• Enhanced validation checks and inflight checks
• Improved reconciliation between sender components and inbound processing
• Navigate from the Financials documents to the original documents in Revenue Accounting
• Change the revenue spreading using an API
• Improved price allocation default BAdI implementation
• Calculate the remaining stand-alone selling price (SSP) for value-relevant performance obligations
(POB)
fulfilled by event type customer invoice
• Apply the remaining fulfillment percentage to the stand-alone selling price tolerance
• Re-run the cumulative catch-up program during transition to a new accounting standard
• End the usage of an accounting principle in Revenue Accounting
• Use batch split processes in SD with Revenue Accounting
© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ Public 138
Amount field length extension
Amount Field Length Extension (AFLE)
The objective of the project is to enable large currency amounts (23 digits - including two decimals) in
S/4HANA on Premise and Cloud based on project scope utilizing the Large Scale Adaptation (LSA) Approach.
Note: This is only done in S/4HANA, not in Business Suite (Ehp 8)
Large banks and financial institutions need larger amount fields than what SAP currently provides.
In order to cater for the needs of current and future SAP customers, all currency fields in the project scope with
2 decimals falling between lengths 9-22 shall be extended to the maximum length currently available in our
latest universal journal (ACDOCA), i.e 23 digits including 2 decimals.
See SAP note 2628654 for more details.
Changing the steering model
Finding dependencies
Finding Dependencies
Where Used Lists in New Master Data Apps
Central Finance enhancements
Central Finance – A Gentle Reminder
ARIBA,
ML Cash Customer Credit Check
Concur, FieldGlass,
SuccessFactors Application Payment
SAP
Governance
Planning, Process Control, consolidation and Reporting, Treasury, IFRS16 (RE-FX), Receivables Mgt Analytics Cloud
Master Data
S/4 HANA Core

GL/CO AR AP Cost Objects COPA** Assets*
Central Finance Financial

Statement Insights
SAP SAP
Systems Systems Non-SAP Non-SAP
Systems 1 Systems ..n
1 ..n
SAP S/4HANA Adoption Patterns with Central Finance
Choose any Combination
Finance &
Finance
Decisional Logistics
Operational
operational
Instance Single
Single
Instance
Instance
Disclosure, Reporting & Analytics – Back Office Data Lake
Single Point of Connectivity for SAP and non-SAP Portfolio
Why Central Finance resonates
IT Innovations,
Roadmaps, Central Finance as the enabler
Higher
I.T Roadmaps Business
Models, process
IT Driven Change transformation
Process Fixes &

Lower
Lights On Continuous
Improvement
Lower Higher
Business Driven Change
Future: Central Finance – Evolution Patterns for CFO Single Instance
Reporting HUB GL Closure Fin. Ops Treasury Consolidation
Transform Finance
Optimize
Ensure consistent Lower risk by
Streamline all processes Continuous
and efficient having real-
financial reporting and create accounting
close across the time view of
with data in one foundation for with full
operational exposures
place and real- treasury via substantiation
systems with and money
time (SAP and transparent by embedded
monitoring and market
non SAP). cash with ERP.
automation. access.
management.
Future: Evolution Pattern from Central Finance with Simple Logistics
Logistics Reporting &

Central Finance P2P O2C
Execution Disclosure
Transform Logistics
Central Finance Sales and Live Analytics

Classic IM,
full deployed as a distribution real time with
procurement or Manufacture,
transactional with or UI5 for finance
with Ariba Warehousing.
system without Hybris & logistics
Intelligent Financial Planning & Analysis in a Central Finance
context

Replication
Product / service Cost Center
costing & inventory
analysis
valuation * Internal Order
cFIN
Investment Manufacturing Orders
Universal allocations Overhead costing management
Project system (reporting)
Flexible and self-service, Profit Center Accounting
embedded reporting
Central Process execution
* Currently not supported
SAP S/4HANA 1809 SPS00
Key Scope Highlights Overview in Finance
Improvements and simplifications for onboarding and

operations
• Tools for correcting errors more efficiently (reversal and repost
function)
• Increased flexibility and speed for initial loading
Provide a finance data hub for real-time consolidation

• Replication of trading partner and profit center information within
replicated postings (including initial load)
Treasury and Cash Management
Corporate Treasury is a centralized function requiring a Single Source of Truth
External Data Operations

Sources Data from business
Connecting operations
with partners to provide
external market data
Business
Planning
Sales and
Production
Payment Networks Corporate Treasury Planning
Direct Bank access and
connections to PSP’s
Trading
Platforms Subsidiaries and
Connecting
with partners Business Entities
including Shared Service Centers to
gain cash flow relevant information
Treasury Analytics
Interest Rate Overview Page
• Business Values
• Real Time information of interest-bearing
debt and investment instruments
• Providing additional insights of floating

rate vs fixed rate debt and investment
instruments
• Overview of interest rate market data
• Drill Down capabilities to details of each

financial transaction
SAP Multi-Bank Connectivity
Big Picture
Direct bank
integration
S/4HANA
 AP/AR
 Payroll
 Treasury
 In-house
Cash
 Other
SAP Multi Bank Connectivity
Manage Capture Bank

Alliance
Forecast / Process ERP Messaging Multi-bank Security Lite2
Bank Bank Message
Planning Payments Integration Management Transaction Routing mediation
Accounts Balances Transmissions
Bank Account Management and Cash Management
Business Integrity Screening
Governance and Control
Innovations in SAP S/4HANA Finance
Cash Management
Bank Account Management

▪ Centrally Manage Global Bank
Accounts and Signatories
▪ Correspondence for bank account
management
▪ Bank Fee Analysis reporting
Cash Management and

Payments
▪ Cash Position Analysis with Finest
Granularity Drill-down
▪ Cash Flow Analyzer
▪ SnapShot Functionality
▪ Improved Reconciliation
▪ Payment Monitoring
Basic coverage of legislations in foreign currency hedge management and
accounting with US GAAP
Treasury applications from SAP – designed to help our customers manage the
complete spectrum of activities associated with payments, cash, liquidity, financial risk,
and compliance management
Foreign currency risk management and accounting:
• Comprehensive process support for managing foreign currency risks
• Management of foreign currency risks arising from different exposures, such as
forecasted transactions or firm commitments
• Accounting support for U.S. GAAP
Foreign exchange (FX) hedge accounting solution with U.S. Generally Accepted
Accounting Principles (GAAP) – which includes functionality for:
• Process automation – designation of hedging relationships
• U.S. GAAP accounting support for FX forwards and the FX option types "plain
vanilla," "zero-cost collar," and "swaps"
• Assessment
• Recycling of other comprehensive income (OCI) values
• Removal of designation and reclassification at contract close
Leveraging the SAP Cloud Platform
SAP S/4HANA 1809 leveraging the SAP Cloud Platform
Application for goods receipt and invoice receipt monitor
• Machine learning service extension to include status proposals for the invoice and goods receipt monitor
• Reduced effort in manual checks as the monitor will make status proposals according to the particular circumstances of a purchase-order
item
SAP RealSpend for developing additional expense management scenarios

• Definition of further use cases to deepen the functionality of the SAP RealSpend solution in expense management scenarios
Credit Management Cockpit

• Provide a cockpit that shows all relevant credit events for the credit controller
Smart alerting in SAP Financial Statement Insights

• Get automatic, system-generated alerts of any irregularities
• Autonomously detect unusual business situations in revenue and cost accounts
Integration of additional credit agencies

• Support for interfaces to additional credit agencies
Consolidation: enhanced data collection for nonfinancial measures and non-integrated subsidiaries
• Dedicated application in SAP Cloud Platform for collecting data from subsidiaries not running their local accounting on SAP S/4HANA
SAP S/4HANA 1809 leveraging the SAP Cloud Platform
Treasury - integration of trading platform 360T for inbound and outbound services
• Complete service offering for the integration of 360T as one treasury trading platform with minimal configuration effort and without the need
to update the current system
• Availability of additional value-added services to complement our on-premise and cloud offerings in SAP Treasury and Risk Management
• Out of the box service after an initial onboarding
• Reduced TCI and TCO as IT support for the integration of an FX marketplace is outsourced to SAP Cloud Platform
Business standard for most FX transactions to be made on an FX marketplace such as 360T (subsidiary of Deutsche Börse Group) or FXall (a
part of Thomson Reuters)
Need for uploading the externally placed trades back to the SAP software system (inbound service)
Planned scope:
• Uploading onto the app and storage of deals done on 360T
• In-app storage of the competitive bids
• Upon completion of all necessary fields, writing of the deal to the SAP Treasury and Risk Management application and return of the deal
number back to the app
• In case the deal is not complete (necessary data is not provided), notification made and e-mail sent
• Product types in scope: FX spot, FX forward, FX swap, FX plain vanilla options, and nondeliverable forward (NDF)
Existing need to get a deal request into the marketplace directly from the report where you have the “to be traded amount” (outbound service)
Planned scope:
• Outbound service for FX deal requests arising from the hedge management cockpit
• Possibility to split deal requests from the hedge management cockpit into several deal requests inside the app
• Deal request to be sent to the trading platform (360T)
• Deal request to be mapped to incoming deals for completeness
Intelligent Financial Processes SAP S/4HANA Finance 1809
What’s new in SAP S/4HANA 1809 in summary Overview
Enhanced New Enhanced Enhanced
Real-time margin analysis Predictive accounting Transfer pricing Treasury Management

Topic video available
Integrated New Enhanced
Finance 1809 Overview:
Integrated financial https://youtu.be/CzPhDejuft8
Universal allocation Embedded analytics
planning
Margin Analysis:
https://youtu.be/TfbthMsYcrc
Financial Planning & Analysis Treasury Management Predictive Accounting:
https://youtu.be/yH-HJWeDyXA
Embedded Analytics:
https://youtu.be/wpakxWVEQv8
New New New Integrated
Good and invoice receipt Revenue accounting and Accruals Management:
Advanced financial close Self-service tax https://youtu.be/wEru-hqfj1w
reconciliation reporting
Compliance Goods and Invoice Receipt
New New Enhanced Enhanced Reconciliation:
Advanced compliance
& Risk https://youtu.be/jJXqWF1wJkw
Accrual management Group reporting Process controls
reporting Group Reporting:
https://youtu.be/mwn3O1rxd0I
Accounting Financial Close Tax Service:

https://youtu.be/EEhIAJfQjXM
Treasury:
Enhanced New https://www.youtube.com/watch?v=
Enhanced
cGQuSpdaBS8
SAP Cloud Platform Amount field extension Central Finance
Platform Central Finance

Intelligent Financial components overview
What’s new in SAP S/4HANA 1809
Component Status ML Remarks Additional license SCP

Real-time margin analysis Enhanced
Predictive accounting New
Embedded analytics Enhanced x x (for RealSpend, FSI) x (RealSpend, FSI)
Universal allocation New Cost center plan allocations scenario only
Integrated financial planning Enhanced x (for SAC or BPC) x (SAC Planning)
Cloud only; Connectivity to SAP S/4HANA 1809
Advanced financial close New FSP01 planned for 1902 x x
Goods and invoice receipt reconciliation New x Planned shipment with SAP S/4HANA 1809 FSP01 x x (ML component)
ML component: planned shipment with SAP
Accruals management New x S/4HANA 1809 FSP01 x (for ML component) x (ML component)
Group reporting New x x (Data Collection app)
Advanced compliance reporting Enhanced x (for Advanced version)
Self-service indirect tax New x x
Treasury management Enhanced x x (SCP apps)
Process controls Enhanced x
Central Finance Enhanced x
SAP Account Reconciliation and Automation by BlackLine x

SAP Intercompany Financial Hub by BlackLine x
What‘s new in SAP S/4HANA 1809 in Finance PPT:

https://jam4.sapjam.com/groups/4gzpQSiCcDXDLNNNBo5LEg/documents/PIjlDlHmN3tx6rIVUV6K5X
Additional information
What’s new in SAP S/4HANA 1809
Release information notes

https://launchpad.support.sap.com/#/notes/2696359 (Release note)
https://launchpad.support.sap.com/#/notes/2659710 (Restriction note)
https://launchpad.support.sap.com/#/notes/2652226 (Changes in Fiori)
What's new in 1809 (English)?

https://help.sap.com/doc/b870b6ebcd2e4b5890f16f4b06827064/1809.000/en-US/WN_OP1809_EN.pdf
Simplification List 1809

https://help.sap.com/doc/f45c88b65643403d97682484273216d0/1809.000/en-US/SIMPL_OP1809.pdf
SAP Fiori Apps library - Filter on What’s new in 1809 + Finance

https://fioriappslibrary.hana.ondemand.com/sap/fix/externalViewer/#/home
Learning Hub – Early Knowledge Transfer (EKT): Guide to Accessing Content from Early Knowledge Transfer for Customers and Partners
https://support.sap.com/content/dam/support/en_us/library/ssp/offerings-and-programs/get-involved-
early/EKT_access_guide_customers_partners.pdf
What do you think?
Michel Haesendonckx
Global Solution Owner Financial Planning & Analysis
Finance Solutions
SAP SE
+32 472 491 699

michel.haesendonckx@sap.com
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What are the main features introduced in SAP S/4HANA 1809?

What are the main features introduced in SAP S/4HANA 1809?

What are some of the new capabilities for finance in SAP S/4HANA 1809?

What are some of the new capabilities for finance in SAP S/4HANA 1809?

SAP S/4HANA 1809

Scopes Highlights for Finance

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 3

Enhanced New Enhanced Enhanced

Real-time margin analysis Predictive accounting Transfer pricing Treasury Management

Integrated New Enhanced

Financial Planning & Analysis Treasury Management

New New New Integrated

Accounting Financial Close

Enhanced New Enhanced

Plan & Margin Simulate &

Financial Steering Model (Universal Journal)

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 5

Integrated planning Real-time margin Predictive accounting

Plan & Margin Simulate &

New New New

Advanced financial close SAP Process controls

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 6

Integrated planning Real-time margin Predictive accounting

Plan & Margin Simulate &

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 7

Margin Analysis Enhancements

Integrated planning Real-time margin Predictive accounting

Plan & Margin Simulate &

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 17

Invoice with Conditions

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 18

Settlements & Settlements &

Within Period Period Close Within Period Period Close

Profitability Analysis Costing-based

Universal Journal Universal Journal COPA

Sales conditions can be used to calculate contribution margin level,

Incoming sales order entry

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 20

Income Statement Details – Cost Estimate New Profitability Analysis

Before SAP S/4HANA, COGS

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 21

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 23

Incoming sales orders Predicted revenue

Feb Mar Apr Feb Mar Apr

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 24

COGS Split with

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 25

Integrated planning Real-time margin Predictive accounting

Plan & Margin Simulate &

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 27

TOP-DOWN Prediction sum sum

Time series algorithm on historic

Line item Predict

Predictive Accounting on the basis of

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 28

Actual data for

Actual and predictive data for

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 29

Incoming sales orders Predicted revenue