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FINANCIAL CLOSE AUTOMATION (FCA) FOR SAP®
MOGENS HARTFELT
CUSTOMERS
Vast volumes of data coming from different sources Dispersed accounting teams with lack of visibility and accountability Inconsistent application of accounting policies and procedures Manual tasks consume our time Our primary tools to monitor the close process are e-mail and spread sheets
When asked about the primary challenge with reconciliations, 1380 Deloitte Dbriefs listeners had the following response:
20.7%
10.5% 5.9%
43.2%
19.7% 12.5%
21.7% 21.0%
14.2%
30.1%
When asked where the challenges reside in the close process, 1559 Deloitte Dbriefs listeners had the following response:
Lack of visibility Detecting spread sheet errors Informal and undocumented review process Inconsistent application of policy Capturing un-reconciled differences
300
680
20
30
970
After process automation
Before process automation
RESULTS AT SIEMENS
30
120
Maturity of automation
Undocumented
Manual
Automated
SHIFT THE ALLOCATION OF RESOURCES
Manual Close
With Financial Close Automation
THE CLOSE
PURCHASE ORDER
ACCOUNTS PAYABLE
GENERAL LEDGER
ACCOUNTS RECEIVABLE
INVENTORY
SALES ORDER
CONSOLIDATION
1 2 3
CONSOLIDATION ENTITY CLOSE DISCLOSURE
DISCLOSURE
FINANCIAL APPLICATION
CONSOLIDATION TOOLS DISCLOSURE TOOLS
2/3 1/3
Real Time End-to-End Monitoring of Close to Report
SAP FCC AND FCA ARCHITECTURE
SAP FCc
Task list
Monitor
Tasks
SAP CPS / Cronacle
ERP
ERP
ERP
FCA user
FCA admin
Notify and Workflow
Template for tasks
CPS admin
FCA
@5B\QCompleted Without Errors@ @5B\QCompleted Without Errors@
@5B\QCompleted Without Errors@ @5B\QCompleted Without Errors@
ALERT, NOTIFICATION AND WORKFLOW
-3 -2 -1 +1 +2 +3 +4 +5
Accounts Payable Accounts Receivable Fixed Assets
Payroll Expenses Inventory Production & Orders PO to AP Rec.
Materials GL to Profit Centre Rec. Joint Ventures Journals Account Rec.
Run Depreciation Allocations (Recharges) Inter Company Rec. FI-CO Rec Clear Accounts
Treasury/Interest Journals FX journals Transfer data to GP Consolidation
Open Next Period (OB52) FA/ (SALR8700196) Clearing (F32.F44)
Inv (SALR87011979) Prod (CO43)
JV(KSCS) Clear SD to FI (VXF3)
Intercompany Elimination Entity Close Ops Review Final Adjustments Entity Close
Reverse Journal (F80,81)
DAYS
Bank Rec. Revenue Rec. Expenses Unreconciled PO Accruals
Consolidation
Bank (F110) Dep (AFAB/AFAR) FI-CO (KALC)
Inter-Co (FBICS2)
(Day 30)
0
Acc Rec (AB572)
Allocation (KSV5) InterCo (FBICR2) Clearing (F03)
Journal Entry (FB01, FB50)
Report (GR55) Lock (OKPI)
Rev (VAN1) Exp (KSA3) Orders (SALR 870 12993)
(FAGL-MM)
AP/AR (IKEK)
JV(KSCS) Clear SD to FI (VXF3)
Reverse Journal (F80,81)
Allocation (KSV5) InterCo (FBICR2) Clearing (F03)
Report (GR55) Lock (OKPI)
Rev (VAN1) Exp (KSA3) Orders (SALR 870 12993)
REQ
UIR
ES
IN
TER
VEN
TIO
N
Open Next Period (OB52) FA/ (SALR8700196) Clearing (F32.F44)
Inv (SALR87011979) Prod (CO43)
Dep (AFAB/AFAR) FI-CO (KALC)
Bank (F110) Acc Rec (AB572)
(FAGL-MM)
AP/AR (IKEK) REP
ETITIV
E
Inter-Co (FBICS2)
Journal Entry (FB01, FB50)
RU
LE
BA
SED
P
OS
TIN
G A
CTIV
ITIE
S I
N S
AP
ENTITY CLOSE
EACH TRANSACTION IN SAP IS A MANUAL STEP
FIN
AN
CIA
L C
YCLE
TH
E C
LO
SE
60%
21%
10%
Challenges Objectives Results
Numerous stages in the
financial close had to be
manually monitored,
validated and corrected –
and all these steps had to
be repeated if an error
was found.
The same activity often
had to be manually run
multiple times across the
600 entities as it could not
be run in parallel.
BG Group wanted to
devote more time to
analysis and strategy,
instead of finding and
reviewing data repeatedly.
Corporate finance needed
to improve its financial
close process to increase
efficiency.
BG GROUP
The solution was
Redwood’s Financial Close
Automation for SAP (FCA)
combined with SAP®
Financial Closing cockpit ,
which was implemented in
under three months.
BG Group is a FTSE 100 energy company that is active in more than 20 countries on five
continents.
