SAP Simple Finance Roadmap Webcast Part 1
This was an SAP-provided webcast Featured Content provided earlier this month. I heard on another webcast that Simple Finance is a prerequisite to S/4HANA – see S/4HANA Next Generation Webcast Notes
Please note that the usual legal disclaimer applies that planned future items are subject to change. These are my notes as I heard them. Also I don’t have any hands-on experience with this solution.
Figure 1: Source: SAP
Figure 1 shows new challenges, one is business trends, the other is technologies
Volatility increases complexity of the business
CFO’s create more business value with less resources
Finance team has to create more analytics across the enterprise Big Data
Have to find answers on these trends and how to support CFO’s
Figure 2: Source: SAP
Finance is “stuck in old releases” with “fragmented system landscapes” and takes a lot of work to “keep the lights on” with less time on innovation
The goal is to “turn this around”.
Figure 3: Source: SAP
Simple finance add-on supports CFO needs and additional services
New dynamic planning possibilities across the value chain to take action
Go more in direction of automating operations
“Faster adoption of innovations” through HEC (HANA Enterprise Cloud)
Figure 4: Source: SAP
Simple Finance is the basis
New architecture eliminates redundant structures and “on the fly” aggregations
Fiori UI works on all devices
It can be deployed in cloud or on-premise
Processes are at the bottom of Figure 4
Figure 5: Source: SAP
Achieve “single source of truth” by deleting aggregate tables with direct access to line items for analysis and reporting. This also includes integrated planning and predictive forecasting
Figure 6: Source: SAP
Figure 6 shows the next level of details with “improvements in 5 areas”
New Fiori UI’s and analysis possibilities
Figure 7: Source: SAP
Figure 7 shows more details of the planned innovations for Simple Finance add-on.
Smart Business Executive Edition is planned with more advanced graphics shown on the slide (planned) – business experts can go in and define a dashboard, rearrange screen
This includes pre-built cockpits in SAP to consume data from A/R, A/P, drill down, alerts via KPI’s and jump to line item level
Integrated Business Planning combines SAP Accounting with planning product
SAP Finance with planning – a smooth/seamless experience – consume master planning and actual data in real time.
It is realtime with no data copying
For Simple Finance 2.0 add balance sheet planning, new concept Universal journal – additional reports to make it easy to report actual versus planning with different objects
You can create intermediate master data during planning cycle
You can retract plan values into SAP accounting to do a budget check
Figure 8: Source: SAP
Single source of truth is one of the deliverables of Simple Finance
Version 1 combined managerial & FI documents with a link in a logical document. Planned innovation is one step further – create new single repository for all line items in finance called the Universal Journal – repository of all journal entries – take all dimensions in GL, cost elements, asset accounting, material ledger – all converged into a single structure called the Universal Journal
One line item table with all this information – this replaces the logical document.
Views from before are now in compatibility views
Can put all the reporting tools in the Universal Journal to slice and dice
Cost elements and GL accounts will merge; will no longer have 2 separate master data elements for GL and cost element. It will all be in the same table – another step in “simplification”. This is the biggest planned innovation – universal journal
With a faster/earlier financial close, there is an earlier insight into profitability
When post to a cost center and able to derive information early through a “soft close”
Asset accounting – 1.0 removed most of the period posting runs. Now periodic posting runs are now gone. This allows faster insight and a faster close cycle.
There is no need to align GL with asset accounting any more. The Universal Journal takes this away.
Figure 9: Source: SAP
Like the story of unification of FI and CO but what happens if I have a different view from management? In the context of universal journal is the planned innovation called Appendix ledger, such as for IFRS. In the appendix ledger you can do additional posting (first release will be manual, future more automatic)
Appendix ledger stores delta of base ledger so it is “lean”.
Figure 10: Source: SAP
How get benefit of Simple Finance and adopt? Customers may not want to touch existing landscape
In 2014 called Central Journal and it is now called Central Finance
Idea is to deploy simple finance in a new instance, could leverage existing instance, with the data replicate in real time in new environment
Planned – not just replicate GL postings – post open items, replicate secondary CO postings
When replicate know how to “go back” to see postings in Simple Finance and see line items and jump back to source system
Need to do data harmonization (MDG) – it can be leveraged in Central Finance deployment
Plan to support soon the intercompany reconciliation in Simple Finance instance “real time” without batch loading
Part 2 is here: SAP Simple Finance Roadmap Webcast Part 2
Hey Tammy - thanks for sharing this.
I am looking forward to getting my hands dirty with Simple Finance - I will let you know what it is like to actually use, outside of the fancy demo and slide packs.
Hi Tammy, thanks for sharing. This is really a big help given that we are currently implementing SAP with Simple Finance. I wonder if there's a document somewhere listing the changes in tables and functionalities. And in terms of data migration, we'd like to know if there should be a special approach that we need to take note of.
HI - that is a good question to ask in the discussion space.
Thank you for reading and commenting.
I think that you must have completed the implementation by now. Would you like to share your experience ?