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This blog provides you an overview of highlights in our SAP S/4HANA Cloud 1708 release for finance. With more than 15 new scope items finance again stays on top of delivered innovations striving to make SAP S/4HANA Cloud the best public cloud offering for the finance function in the ERP market place.

To get an idea of the highlights in finance, please have a look at this video:

 

Contract and lease management

With the S/4HANA Cloud for contract & lease management you can ensure compliance to the latest financial reporting standards, like the new lease accounting standards IFRS16 and FASB ASC 842.

The S/4HANA Cloud for contract & lease management helps you standardize your lease-in, lease-out and service contract management activities for real estate, as well as for machinery, equipment, vehicles and computer hardware. It is easy to create new contracts and modify existing contracts, execute periodic and valuation postings, run reports as part of your daily business that will help you save time and effort and make more informed lease management decisions. You can create reminder rules that will allow you to monitor critical dates, for example to check the contract conditions, the contract term or the renewal options. Accelerate leasing processes and automate your recurring lease administration activities. Gain full control and visibility of leases and critical dates.

Integration with SAP Analytics Cloud for planning

SAP Analytics Cloud for planning allows you to create budgets, forecasts, and what-if scenarios. The integration between SAP S/4HANA Cloud and SAP Analytics Cloud for planning allows you to upload actual data from SAP S/4HANA Cloud to SAP Analytics Cloud for planning where the planning can be done. The plans can then be uploaded back into SAP S/4HANA Cloud to conduct respective plan/actual reporting. Benefit from an integrated cloud planning solution for SAP S/4HANA Cloud for Finance with significantly reduced manual effort as well as improved data consistency and quality.

Treasury and risk management

Foreign Currency Risk Management enables you to gain an overview of the foreign exchange risk that your company is exposed to, as well as the hedging instruments that you used to mitigate that risk. You can review your balance sheet FX risk and determine your net open exposures (FX Risk). Using the financial transactions provided for this process you can mitigate the FX risks. The functionality helps you to automate labor-intensive processes, such as confirmation of financial transactions and accounting postings, giving you more time to focus on value-added activities. The process includes the products FX spot transactions, FX Forward Transactions, swaps, non-deliverable forwards and FX options. The brand new Foreign Exchange Overview app focuses on the financial status, foreign exchange rates, and so on, and how this can be visualized to allow for better decision making by the treasury managers.

 

The Debt and Investment Management process helps you to secure short-term liquidity at the best interest rates, and manage your medium- to long-term debt and investments optimally; from the analysis of financial status to the final accounting postings when the financial transactions mature. The capabilities include review of the financial status, automated management of investments and borrowings, including creation of the financial transaction, confirmation of contract with counterparty, payments, interest rate adjustments, and accounting. The postings for the general ledger are generated automatically. The Interest Rate Derivatives Management process helps you manage the interest rate risks that you are exposed to due to debt or investments, from the analysis of financial status to the final accounting postings when the financial transactions mature. The parallel valuation process enables you to post the values calculated according to IFRS9 phase I (Classification and Measurement). With the Market Data for Treasury and Risk Management process market data is automatically imported from the currency service provided by SAP Hybris as a Service on SAP Cloud Platform. You can automatically load foreign exchange spot rates, predictive foreign exchange spot rates, and interest rates.

Here are some more details on additional highlights I mentioned in the video:

  • Subsidiary Integration of SAP S/4HANA Cloud to Central Finance: Integration between SAP S/4HANA Cloud – used by a subsidiary – and SAP S/4HANA Central Finance can now be provided utilizing a real-time replication of all finance transaction data from the SAP S/4HANA Cloud to SAP S/4HANA Central Finance. You can activate the data replication on a subsidiaries company code level in the SAP S/4HANA Cloud system.
  • Plan Consolidation for SAP S/4HANA Cloud: With this scope item, the plan data can be collected from a file using the flexible upload feature of SAP S/4HANA Cloud or generated from previous year actual data. The user can then run a full consolidation process including currency translation, intercompany and investments eliminations and reporting. The application includes several versions to enable reporting (Actual versus Plan, Plan, and Forecast).
  • Cash Journal: The cash journal is a subledger of Financial Accounting. It is used to manage a company’s cash transactions. The system automatically calculates and displays the opening and closing balances and the receipts and payments totals. You can run several cash journals for each company code, and you can run a separate cash journal for each currency. You can also carry out postings to G/L accounts, supplier accounts, and customer accounts.

Consultants who are interested in learning more details for SAP S/4HANA Cloud for Finance can use the following additional resources (SAP Learning Hub subscription required):

  • Early Knowledge Transfer ‘Learning Map for Finance’ 1708 (SAP Learning Hub Access Required)
  • Early Knowledge Transfer ‘Learning Map for Treasury’ 1708 (SAP Learning Hub Access Required)
  • SAP S/4HANA Cloud for Treasury and Risk Management Webinar planned on August, 17, 2017, 10:30 AM – 12 PM (GMT+1:00)
  • SAP S/4HANA Cloud for Cash Management Webinar planned on August, 18, 2017, 10:00 AM – 11:30 AM (GMT+1:00)
  • SAP S/4HANA Cloud for Finance Webinar planned on September, 8, 2017, 10:00 AM – 11 AM (GMT+1:00)

For more information on SAP S/4HANA Cloud, check out the following links:

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