Central Finance

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 Central Finance

•CF benefits the customers from latest reporting innovation and architectural
simplification to gain better access in the reporting

•CF allows companies to repost/replicate fin transactions from several systems

into a single instance of S/4 HANA

•CF is a separate product with dedicated license

•CF is part of S/4 HANA hence no installation is required

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 Central Journal
Problem Objective
SAP Customers with heterogeneous, Deploying simple finance as “Central
multi ERP system landscapes have Journal” allows customers to adopt
been facing uphill battles to keep the latest SAP finance innovation
their existing ERP system up to date without disruption to their existing
and in-Sync ERP systems

OUTCOME:
Once financial data is replicated from source systems onto Central Journal, SAP
customers can again the access to
•Consolidated Fin reporting and Management reporting
•Integrated transactions processing, Planning and reporting
•Central process execution like Intercompany , Cash Management

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 Central Finance
•If you want to use the Central Finance- Business function “FINS_CFIN” should
be activated

•SAP Application Interface Framework (AIF) offers a single place to handle errors

•To use AIF you should have complete delivered configuration for central finance

•Error Correction and Suspense Accounting (ECS) for handling errors from FI
document replications. Apart from AIF in CF.
•It requires a separate configuration

•RFC connections are needed for the initial load of posting data from the
connected source systems to Central Finance and to navigate to accounting
documents in the source systems

•Each system should be connect to one Logical System and one Logical System
for the Target Central Finance system

•A Logical System identifies the client of the connected source system in the
accounting documents 4
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 Central Finance

•Central Finance is allows you to create a common reporting

•SAP LT – Collects the data written to database in the source system and feeds
into corresponding central finance accounting interface

•SAP Recommends to use MDG for Mapping in CF

•Once mapping done system uses the error handling AIF

•Modify the errors by loading the mapping then repost the data to CF

•By using the DRB from CF you can able to see the original Doc posted in the
Source system and CF document

•CF errors handling thru suspense account

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 Central Finance

•IBP combined with CF to provide consistent view of planning process

•Planning application can be accessed by Microsoft excel frontend for look and
feel of the report
•IBP Covers
•Expenses Planning
•Profitability Planning
•Profit and Loss Planning

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 Central Finance Functions

•Line item reporting of Fin Doc from SAP and Non ERP system into CF

•Real Time replication via SLT

•Master Data replication via MDG, SLT, BAPI

•Replication of Cost Objects like IO, Prod Order

•Replication of AP/AR clearing and documents changes to CF

•Fiori based AP/AR reporting

•FI and CO postings and interfaces to CF

•Cost component split in inbound COGS (COPA postings)

•Errors corrections via AIF

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 Central Finance Integration

 Non-Distruptive step towards system consolidation

Functionalities like MDG supporting Central Finance
Central Finance Accounting Interface
Harmonizing data through reposting

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Central Finance Integration

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 Central Finance Configuration

Activate the business function FINS_CFIN

IMG: Setup for RFC –Connections for UI integration

IMG: Configuration for Logical Systems for Mapping

Configure Error Handling AIF

Configure Mapping

Special Configuration for postings with currencies having mismatching number of

decimals configured in the source and target system

Sap Note:
2318183 – wrong number of decimals for amounts in replicated documents
2325587 – wrong number of decimals for amounts in replicated CO
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 Central Finance Configuration

Mapping must be defined for following categories.

Mapping for Business Objects like (Customer ID, Vendor ID, Material ID, G/L account)
Mapping for Codes ( Company Code, Business Area, Profit Center, Country Code)
Mapping for short term Cost Objects ( Production orders or Internal Order)
Mapping for Cost Objects ( Cost Element, Cost Centers, WBS)

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 Central Finance Errors

There are three possible categories of error:

 Incomplete mapping of master data

This must be corrected in the Central Finance system.

 Incomplete configuration of Customizing settings

This must be corrected in the Central Finance system.

 Errors that can be corrected directly in ECS/ Mapping corrections

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 Error Correction via AIF

AIF is used as the error handling tool in Central Finance for

Errors During FI posting replication (New Doc and Doc Changes)
Errors during CO-document replication
Errors during cost object replications (new cost of object and cost object changes)
Errors during initial load of Cost Objects
Errors during the initial load of CO- internal postings

Usually AIF is a separate license

But it is included in CF license for delivered CF scenarios

With this new functionality SLT and AIF process the financial transactions being
replicated to central finance bulk mode

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 Data Mapping Points in CF

Company Code (BUKRS) Material (MATNR)

•GL Account (HKONT, SAKNR) •Plant (WERKS)
•Cost Elements(KSTAR)
•PurchasingOrganization(EKORG)
•SalesOrganization(VKORG)
•CostCenters (KOSTL) •SalesGroup (VKGRP)
•Profit Center (PRCTR) •SalesOffice (VKBUR)
•Business Area (GSBER)
•FunctionalArea (FKBER)
•TaxCode(MWSKZ)
•Customer (KUNNR) •Company (VBUND
•Supplier(LIFNR)

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Replicated FI Document in CF

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Error Handling in CF Scenarios

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 CF Scenario in Earlier / New releases enabled by replication of Clearing

General Ledger Accountant Global Cash Manager

•Trial Balance •Cash Flow Analysis
•Display Financial Statement •Liquidity Forecast (based on AP/AR)
•Display G/L Account Line Items
•Display G/L Account Balances Accounts Payables / Receivables Accountant
•Display Vendor Balances
Financial Analyst •Display Customer Balances
•Cost Center –Plan / Actual
•Internal Orders –Plan / Actual Accounts Payables / Receivables Manager
•Market Segments –Plan / Actual •Future Payables
•Profit and Loss –Plan / Actual •Aging Analysis
•Projects –Plan / Actual •Dunning Level Distribution
•Days Beyond Terms
Cost Manager •Future Receivables
•My Spend •Overdue Receivables
•My Unusual Items •Total Receivables
•Days Payable Outstanding
•Vendor Payment Analysis (Open Payments)
•Vendor Payment Analysis (Manual and
Automatic Payments)
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Replication of Document Changes in CF

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 CF Approach - Challenges

From the business perspective there is a challenge around how to justify the
additional cost associated with central finance approach.
The additional cost associated with the fact that there will be two systems running
to reflect financial transactions rather than a single one.
This means that for a period of time it is necessary to maintain and support both
legacy and new central finance system.
Central Finance system will be running on S/4 HANA and the license cost is more.
As well as continued maintenance on the central finance system and the source
systems and a number of other components are necessary like SLT server which is
best hosted on a separate instance as well as associated updates on the sources
systems.
SAP argues that the implication on source systems is minimal a number of SAP
notes to be imported into the source systems in order to allow documents to
replicated from source to target systems.
If all source systems are on recent releases an support packages are upto date then
this shouldn’t be a challenge if not then there may be lot of dependencies. This lead
to a situation where source systems will need comprehensively regression tested
adding cost and risk to the project.

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