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    Central Finance Exploits The Capabilities of HANA I

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    Jyotiraditya Banerjee
    Central Finance allows organizations to create a common financial reporting structure by replicating financial documents from source systems into a central S/4HANA system in real-time. This provides a single, organization-wide view of finances. Master data and transactions are mapped and transferred to the central system, which then provides harmonized financial reporting across the organization. Challenges include the additional costs, technical complexities of maintaining integration between multiple systems, and clear master data governance.

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    Central Finance Exploits The Capabilities of HANA I

    Uploaded by

    Jyotiraditya Banerjee
    71 views3 pages
    Central Finance allows organizations to create a common financial reporting structure by replicating financial documents from source systems into a central S/4HANA system in real-time. This provides a single, organization-wide view of finances. Master data and transactions are mapped and transferred to the central system, which then provides harmonized financial reporting across the organization. Challenges include the additional costs, technical complexities of maintaining integration between multiple systems, and clear master data governance.

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    Central Finance exploits the capabilities of HANA i

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    Central Finance allows organizations to create a common financial reporting structure by replicating financial documents from source systems into a central S/4HANA system in real-time. This provides a single, organization-wide view of finances. Master data and transactions are mapped and transferred to the central system, which then provides harmonized financial reporting across the organization. Challenges include the additional costs, technical complexities of maintaining integration between multiple systems, and clear master data governance.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    71 views3 pages

    Central Finance Exploits The Capabilities of HANA I

    Uploaded by

    Jyotiraditya Banerjee
    Central Finance allows organizations to create a common financial reporting structure by replicating financial documents from source systems into a central S/4HANA system in real-time. This provides a single, organization-wide view of finances. Master data and transactions are mapped and transferred to the central system, which then provides harmonized financial reporting across the organization. Challenges include the additional costs, technical complexities of maintaining integration between multiple systems, and clear master data governance.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    Central Finance exploits the capabilities of HANA i.e.

    real-time, speed and agility to replicate


    financial documents into the central system, giving a real time organization-wide financial view. In
    short, Central Finance allows you to create a common reporting structure for an organization.

    # SAP Central Finance Features:

    1. You can use the central finance to harmonize master data and replicate posting
    2. You can map master data from several source systems (SAP & Non-SAP) to harmonize
    master data in central finance system either manually or using SAP MDG (a separate license
    for MDG).
    3. For enabling the transfer of data between your source systems and central finance, you
    need to maintain mapping that defines the relationship between data in the source systems
    (SAP and Non-SAP) and data in central finance. Mapping is used during the initial load and
    day to day transactional data transferring to central finance system.
    4. Profitability segment data of an accounting document can also be transferred to central
    finance system. ACDOCA is updated with profitability document number and reporting on PA
    can be achieved in central finance system.
    5. Intercompany Reconciliation with Central Finance: AR and AP are replicated into Central
    Finance, intercompany reconciliation (ICR) can access these receivables and payables directly in
    the Central Finance system. ICR is compatible with central finance system.
    6. Document Relationship Browser: Using the document relationship browser, you can see the
    document flow of an FI document and can access the all link documents (CO, SD, MM) in
    origin/source system

    All documents related to a transaction are available in the document relationship browser, provided
    the source system is an SAP system.

    Document can be navigated in relationship browser; you can use the following transactions:

    Controlling Documents: Actual (KSB5), then choose àEnvironmentàRelationship Browser àDisplay


    Document (FB03), then choose à Environment Document Environment à relationship Browser

    7. Harmonized Financial Reporting: Central Finance system collects data from different system
    and provides harmonized reporting in a single system

    The picture below shows how data is replicated from the source systems to the S/4 HANA Central
    Finance system:

    Following interfaces feed data to central finance system:

     An interface for reposting Financial Accounting/Management Accounting (FI/CO) postings


     An interface for reposting secondary CO postings
     An interface for cost object mapping
    8. Integrated Business Planning: Integrated Business Planning for SAP S/4 HANA, on premise
    edition (IBP) can be combined with S/4 HANA Central Finance to provide a central and
    consistent view of the planning process.
    IBP covers the following:

     Expense planning
     Profitability planning
     Profit and loss planning

    # Central Finance Challenges:

    1. Cost of Acquisition: From a business perspective there is a challenge around how to justify
    the additional cost associated with a central finance approach. There would be two systems
    running to reflect financial transactions.
    2. Technical Challenge: Maintenance for the central finance system and the existing source
    systems; a number of other components are necessary; including the SLT server, as well as
    associated updates to the source systems
    1. Clear Master Data Governance Strategy and capability plan is always a challenging task for
    the organization

    # Integration with SAP & Non-SAP Systems with S/4 HANA Central Finance System:

    The Picture below shows how the systems integrate with each other.

    Note1: Central Finance system can be used out-of-the box,  for those customer who are still in
    maintenance i.e. SAP ERP 6.0. or onwards.

    Note2: Releases such as SAP R/3 4.6C to SAP ERP 5 are still possible; for this special services or
    discussion with SAP would be required.

    # SAP Central Finance Landscape

    1. SAP S/4 HANA Finance and Central Finance can be used with SAP Landscape
    Transformation Replication Server (SLT) and SAP Master Data Governance (SAP MDG).
    2. The SLT server collects data written to database in the source systems and feeds this data
    into the corresponding Central Finance Accounting interface.
    3. After the data is mapped, the system uses error handling to log the details of any errors
    encountered. You can choose to make corrections and repost the item or process the item
    again after, for example, you correct the mapping rule of adjust incorrect values in the
    document.
    4. The internal accounting interface sends the financial accounting (FI)/Management
    Accounting (CO) document to SAP S/4 HANA as a universal journal entry.
    5. After the data is mapped, the system uses error handling to log the details of any errors
    encountered. You can choose to make corrections and repost the item or process the item
    again after for example, you correct the mapping rule or adjust incorrect values in the
    document.
    # Licenses to use SAP Central Finance:

    1. Central Finance – Obviously separate license


    2. SAP Landscape Transformation Replication Server – separate license
    3. SAP MDG attracts a Separate license too. It’s not mandatory but it is very much
    recommended as manual handling of mapping of master data is mammoth work.
    4. Source Systems with a 3rd-Party Database with a Runtime License

    # Technical/Functional Information:

    1. You have to activate the Central Finance (FINS_CFIN) business function.


    2. You have activated the following business functions for error correction:

    o Error Correction System (Reversible) (FIN_GL_ERR_CORR)
    o Error Correction and Suspense Accounting (Reversible)
    (FIN_GL_ERR_CORR_SUSP)
    3. Required customization/configuration for Central Finance need to be done under Financial
    Accounting (New). It is as good as you do configuration for any company code within S/4
    HANA from Finance area perspective.
    4. You have to install SAP LT Replication Server
    1. You have to install the following SAP notes in your source systems:
    i. 2111634
    ii. 2108225
    iii. 2115885
    6. Central Accounting Interface is used to harmonize master data and replicate postings
    7. System is identified with sender logical system & sender document number in central
    finance’s universal journal (ACDOCA).
    8. Monitor and Error Handling is done with Transaction code /AIF

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