Day 2 - PE BC - Consulting Day Presentation 1 - DSAG_Simple_Finance

7/24/2019 Day 2 - PE BC - Consulting Day Presentation 1 - DSAG_Simple_Finance

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SAP Runs SAP - The opportunity with SAP Sim

Finance including move to New General Ledger

Andreas Weiss, September 2014



© 2014 SAP AG. All rights reserved.

Agenda Simple Finance @ SAP

SAPs HANA & Financials Journey @ a Glance

Facts and Figures

Project Scope Simple Finance Implementation

Implementation and Solution

Benefits & Future plans

2

3

4

1

5




HANA & Finance Innovations @ SAPInternal experience - Top VALUE DRIVER

HANA

21

Simple Finance including move to N

Accounting powered by HANA as dr

Based on SAP HANA

Mobile Frontend for Ease of Consumption

CRM on HANA BW on HANAERP on HANA

• 4.500+ users• implemented in

5 months

• 15.000+ users• implemented in

2½ months

• 67.000+ users

• implemented in

5 months

SIMULATIONS, PERFORMANCE & RADICA

PROCESSES

Reduce CLOSING TIME to human rea

step execution of closing activities. Rea

processes instead.

Master data management & organiza

reflection of org. changes with all depen

alignment function. New AGILITY throug

MD

Simulations on the “fly” for different b

Bringing together data of different sourc

related business processes

2013

Move to HANA in 5 month

2014

Move to SAP Simple Finance (incl. N




HANA & Simple Finance Business Processes in Finance

Major Values realized

Driving transformation ofFinance

FINANCE70%less reconciliationtime

ICO reconciliation

30%less processing time

Financial Close

10% less fraudcases

Risk & compliance –

real time screening on

anomalies

40%less postingcorrections

Financial Close

10%

DSO reduction

Receivables

management

1,8 TBSAP’s ERP Database

Database footprint

reduced from once 7.1

TB

80%less cost center re-org time

Organizational change

22% furtherreduction inprocessing time

Financial Close

(automation)

3%cash optimization

Treasury


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Facts and Figures




2

3

4

1

5



Facts and Figures

SAP as a Service Provider - Technical Financials Framew

Main Systems

ERP (one client), CRM, HR, BI

ERP : 525 company codes (262 active), 77 countries (country versions), 1

395.000 vendors, one controlling area and one operating concern

Financials Applications General Ledger, FI-AA/AR/AP, Real-Estate RE-FX, Treasury FSCM-TRM

Consolidation EC-CS, CO-OM, CO-PC, CO-PA, EC-PCA,

BPC Planning & Consolidation, BI BO Reporting

Data Volume FI (Fiscal year 2013) Data Volume CO ~ 6,3 Mio Document Header (BKPF) ~ 90 Mio CO Line I

~ 25 Mio FI Line Items (BSEG) ~ 5,8 Mio CO Total

~ 129.000 FI Totals GL (GLT0)* ~ 30.000 active Pro

~ 175.00 FI Totals AP/AR (KNC*, LFC*) ~ 21 Mio Profitabilit

~ 27 Mio entries for IndexTables (BSI*; BSA*)* * n





Facts and Figures




2

3

4

1

5



Vision with Simple Finance:

Transform the Business by aharmonized single source of

Simple Finance as a Journey

Where do we come from and what are our expectations?

Before Simple Finance:Segregated finance applications

Technical split of systems and applications leads to

duplicated information and disconnected data silos

High effort to reconcile figures and bring segregated

data silos together

Background-Processes and pre-defined aggregated

values

Unified world with harmonized data – no more br

disconnected silos (seamless navigation from ba

view into any dimensionality)

Reconciliation effort eliminated by operating agai

of granular data

Integrated view on external and internal manage

Single source of truth with atomic detail; all data

once and at the finest detail – no more limitations

Pre-defined aggregates are replaced with on the

New views into ad hoc explorations

Foundation for Re-Design of business processes

category of applications

ER

P ERP



Project Scope

Key Challenges & Approach

Approach

Co-innovation appr

Utilization of succe

setup and resource

Dedicated transpor

course of our relea

for SAP Simple Fin

Objective

Go live with

Financials

Add-on

beginning

of June

Key Challenges

Short timeline with Go Live pre-poned from

June to End of April due to mitigate QEC risk

Impact of Financials Add-on and New GL

novelties on related systems, processes and

add-ons

Large number of notes implementation

required due to starting point prior SP0

High complexity as HANA Data Definition

Language (DDL) views cannot automatically

executed via standard ABAP s-note



Project Scope

Migration from SAP ERP to Simple Finance

Classic G/L

in ERP

New G/L

in ERP

G/L in Simple

Finance

G/L in Simple

Finance

Migration

at period end

Migration at year end Parallel led

Document

Ledger me

Ledger me

Real-time

Limited ext

Migration at year end

Planned functionality

Migration

at period end

Ledger merge (for P&L)

Real-time integration CO-FI

Full extensibility *

Parallel ledgers

Document split

Ledger merge (for B/S)

Logical Document

Line-item detail

Faster processes

Ledger m

Real-time

Full exten

Logical Document

Line-item detail

Faster processes

Benefits You Can Achieve from Migration

Planned

functionality

Starting

Point

Target

1

2 3




Project Scope

What will change with Simple Finance? .

Aggregate tables and application

index tables have been removed

and replaced by equally named

HANA views

.

.

New General Ledger is

mandatory, comes with different

IMG, new transactions/ reports

and authorization objects

New Asset Accounting as per

EHP7 is mandatory, some code

of old AA was deleted (more

functionality)

.

RE-FX is

applications

classic ma

.

Data Aging introduced for the

archiving object FI_DOCUMENT,

replacing classical archiving

SAP Cash Management powered

by SAP HANA replaces the

classic Cash Management

.

Mandatory

Optional

.

For a number of t-codes / reports

newer versions are to be used(see SAP note #1946054 )

Optional

Mandatory Mandator

Mandatory Optional

https://css.wdf.sap.corp/sap/support/notes/1946054

https://css.wdf.sap.corp/sap/support/notes/1946054




Project Scope

New GL Functionality

Functionalities in Scope (Wave 0):

Real-time integration

Functionalities out of Scope (Wave 0):

Online Splitting

Parallel Accounting by Parallel Ledgers

Profit Center Accounting in New GL

Segment Reporting in New GL

Functionalities not used by SAP:

Consolidation Preparation Ledger

Reconciliation Ledger

COGS Ledger

General Ledger with parallel

accounts

Cost of Goods Sold

Consolidation Preparation

ERP Financials Classic GL

New Gen

Parallel a

Cost of G

Consolid

Profit & L

Simple

Profit Center Accounting for P&L and selected Bal

Special Ledger

Comparable with New GL Migrati




Project Scope

Basic Settings for New GL needed

1. Leading Ledger

2. Scenarios

3. Accounting Principles

4. Foreign Currency Valuation

5. CO-FI Real-Time Integration




Wave 0 (April 2014) Wave I Wave I

■ Smart Cash Managem

■ Further reporting sce

document

■ Prepare adoption to n

■ Merge Consulting Led

Profit Center Ledger

■ Switch selected conso

(former Profit Center)

■ Combined Data Aging

■ Embedded Planning

■ Leverage further procSegment Reporting, o

■ Selected FIORI transactional and smart business

applications where business benefit was proven

■ Selected Reporting Scenarios on one logical

document

■ Leverage native HANA reporting solutions

■ Start Beta-validation one physical document

■ Prepare merge of Consulting Ledger, A/R-

Reporting and Profit Center Ledger

■ First simple Finance process automation scenarios

■ Data aging (application logs, FI document)

■ HANA Search

■ First scenario on improved transparency due to

integrated FI/CO View

■ Enjoyable Finance transactions with FIORI

transactional Apps

■ High value business insights with FIORI smart

business

■ Easy to consume reporting

■ Further reduction of d


Apps (transactional /

■ Integrated FI/CO View

■ Profit Center Account

■ Smarter Operations –

business insights cros

ocus on simple inance

Implementation Waves of Simple Finance in 2014 ff

■ Implement New GL as basis for Simple Finance

■ No more aggregates / indices in FI & CO

■ First reporting scenarios to leverage one logical

document for focused group (embedded BI)

■ Ensure process integration with new SRM on HANA

■ Shorten cut-over time for go-live to a minimum

■ Leverage simple FIN to improve performance

■ Significant reduction of Data memory footprint



■ Easiness of implementation

■ Embedded BI (interims approach)






Facts and Figures




2

3

4

1

5





Technical starting point and go-live configuration

Starting Point Final Go Live Configuration

ERP ECC 6.0 EHP6 ECC 6.0 EHP7

ABAP /

NetWeaver

Kernel

NW 7.40 SPS 04,

kernel 7.40 PL25

NW 7.40 SPS 06, kernel 7.41 PL26, sFIN 1.0

Add-ons:

IW_GIL: Generic Interaction Layer

SAP_FIN: Financials add-on for SAP Business Suite po

by SAP HANA

EA-FIN: Financial Extension needed for Add-On Smart

Financials

FSCM_CDD: Financial Supply Chain Mgmt business funeeded for Add-On Smart Financials

SRM_Server: Supplier Relationship Management Serve

installation

CEE patched to SP22: ECC core country version

HANA ISP

Version Rev. 73 Rev. 74




Product certified

IDW PS 880

Certification

177 UAT tickets1050 test cases


Highlights of Simple Finance implementation

428 project team

members*

6 involved

Groups (BI&AS,

BIZ, P&I, AGS,SLO, IMS, CID)

10 workstreams

Only 55 days from

Kick Off to Go

Live

Less than one

work day system

down-time

Smooth system

upgrade and

data migration to

Simple Finance

and New GL




High Level Implementation

Sequence for ISP – Simple Finance upgrade & Data mig

Preparation

Close activities

- FI

- FI-AA

Job stops

User locking

Check report FI- AA

Data

Consistency

Reporting snapshots forcomparisons

Technical

Prerequisites

incl. Fin. Add-onInstallation

Upgrade from ERP616 to ERP 617 SP

Incl. NW 740 SPS6incl. SRM Add-onSP03

Fin. Add-on SP0Installation

Check Views &Data consistency:

BCK tables

Check report

Delete original index, and

generate views

Import and activate new

programs

SPAU

SPAU adj.

New GL

Migration

New GL Customizing

and Migration:Scenarios

Ledger assignment

Leading Ledger

FGL_MIG_BCF

FGL_MIG_BCF_CTRL

FGL_MIG_NGL_POST

….

Posting of CO doc. intoFI

Technical Reconciliation& Checks

Fin. Add-on Data

Migration

Migration of FinancialData (AP/AR/GL/CO)

Initial balance CF

Link line items CO&FI

ReconciliationFINS_RECONCILE_VIEW

FINS_MIG_MONITOR

FINS_MIGRATIONFINS_RECONCILE

Co

Chemig

Business Downtime




April

Friday, 25 Saturday, 26

CET 04:00 08:00 12:00 16:00 20:00 00:00 04:00 08:00 12:00 16:00 20:00 00:00 04:00 08:0

ACTUAL

Ramp-

down,=6 hrs

New GL and Fin. Add-on Data Migration

17,5 hrs

(including preparation, post steps,

4 hrs buffer released)

Data Validation

5 hrs (optimized

. execution)

Upgrade SRM, EhP7, sFIN , CEE SP22,

SPAU

12hrs5:00

Long Term

Backup,

Restore ISB

5hrs6:00

Biz Verify

6 hrs

17:00

N G

L + P r e

p

2 : 1 5

h r s Data Migration

9:30 hrsPost Steps

5:45 hrs

22:30 9

Backup, Restore, ∆Spau(bug w/ profile imports)

11,5 hrs

3:30

PLAN

Ramp-down,~6 hrs

New GL and Fin. Add-on Data Migration~21,5 hrs

(including preparation, post steps, 4 hrs buffer)

Data

Valida~11,5 h


SPAU

~16hrs9:00

Long TermBackup,Restore ISB

~ 5hrs6:00

6:3017:00

3 h r s

B u f f e r

4 h r s

B u f f e r


Cut-Over Plan @ a glance

Uptime

New GL and Fin. Add-on Data Migration

17,5 hrs(including preparation, post steps,

4 hrs buffer released)


SPAU

12hrs

New System

Ramp-

down,=6 hrs

Delta Replay of

recorded

productive data

1 day

Backup

5hrs F i n a l d e l t a

r e p l a y

D e l t a

m i g r a t i o n

T e c h n i c a l

v a l i d a t i o n

S y s t e m

i t h

1h 1h 1h 1h

Downtime (technical 4 h

System

CopyData created during productive system operations is recorded

Analyze

original

data

NEAR ZERO DOWNTIME APPROACH




Implementation and SolutionKey Take-Aways

Preparations Reco

Integrate all performance testing activities in one

work stream

Conduct technical preparation phase incl.

archiving and code management

Identify business transactions that will be replacedby Simple Finance/New GL transactions

Upgrade system to latest version of application,

NetWeaver and HANA database revisions

Run inconsistency checks and prepare consistent

system environment

Ensure on-site availability o

matter experts and project

Run cutover dry-run in an i

Involve business stakehold

project

Set up change manageme

Business users on new tra

Ensure strong expertise in

for FI/CO




Implementation and SolutionMajor Pain Points during project …

.

New Balance display (FAGLB03)

cannot access to archived line

items, just via modification.

.

.

Reversal postings referring to

postings before GO-Live not

possible (workaround solution).

New posting logic creates several

documents - one document per

ledger group.

.

Correction a

currency val

aren’t allowe

manage.

Huge data volumne in CO

allocation cycles might need

buffered company codes to avoid

dumps.

Summarization of documents isn‘t

possible anylonger due to linkage

between FI and CO – documents

might get > 999 line items (split!)

.

Reversals in AA

Buffering document #

.

Financial Statement (RFBILA00)

might have less performance dueto complex authorization check

on profit center.

Summarization

New posting logic in AA Open item

Archived line items Performance






Facts and Figures




2

3

4

1

5

B fit




BenefitsValue realized and value anticipated @ a glance

2014

Move to New GL & Simple Finance in 55 days

Main Technical Value

Huge simplification of code. materialized aggregates all

replaced by SQL statements for aggregation on the fly,

database indices dropped

Dramatic data footprint reduction. Final HANA database

size targeted ~500 GB. Reduction in FI/CO from 234 to 106

GB (factor 2,2)

Performance gains through Scale out: equal distribution of

tables, memory on master: 1,194 TB, on slave: 0,654TB

Main Business Value

Business agility – adopt to new Business realities :

reflection of organizational changes on the fly (from 1 we

day)

Financial Insights - integration of legal & internal mana

views on line item level

Inherent reconciliation - reconciliation efforts eliminate

operating against a single set of granular data

User Experience

February

M bil Fi




Mobile FinanceIs a reality today ….

Enable the business to make

better decisions in real time,

anytime, anywhere

Enable Finance executives to

manage their operations more

effectively

.

Accelerate k

times and ebot

Q2C Dashboard CFO Central app

.

Receivable Manager with Financial

Fact Sheet

.

Shopping Card aCFO Dashboard Analytics Store

Examples

http://www.sap.com/solutions/rapid-deployment/index.epx




Wave 0 (April 2014) Wave I Wave I


■ Further reporting sce

document

■ Prepare adoption to n

■ Merge Consulting Led

Profit Center Ledger

■ Switch selected conso

(former Profit Center)

■ Combined Data Aging

■ Embedded Planning

■ Leverage further proc

Segment Reporting, o

■ Selected FIORI transactional and smart business

applications where business benefit was proven

■ Selected Reporting Scenarios on one logicaldocument

■ Leverage native HANA reporting solutions

■ Start Beta-validation one physical document

■ Prepare merge of Consulting Ledger, A/R-

Reporting and Profit Center Ledger

■ First simple Finance process automation scenarios

■ Data aging (application logs, FI document)

■ HANA Search



■ Enjoyable Finance transactions with FIORI

transactional Apps

■ High value business insights with FIORI smart

business

■ Easy to consume reporting

■ Further reduction of d


Apps (transactional /

■ Integrated FI/CO View

■ Profit Center Account

■ Smarter Operations –

business insights cros

ocus on simple inance

Implementation Waves of Simple Finance in 2014 ff

■ Implement New GL as basis for Simple Finance

■ No more aggregates / indices in FI & CO

■ First reporting scenarios to leverage one logical

document for focused group (embedded BI)

■ Ensure process integration with new SRM on HANA

■ Shorten cut-over time for go-live to a minimum

■ Leverage simple FIN to improve performance

■ Significant reduction of Data memory footprint



■ Easiness of implementation

■ Embedded BI (interims approach)



RUNSIMPLEWITH

Many ThanksSAP AG I Dietmar-Hopp-Allee 16

69190 Walldorf I Germany

Documents

Day 2 - PE BC - Consulting Day Presentation 1 - DSAG_Simple_Finance