EKT Accounting Overview

SAP Simple Finance Add-On 2.0 for SAP Business Suite powered by SAP HANA

Accounting Overview

March, 2015

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 2 Customer Early Knowledge Transfer

The information in this presentation is confidential and proprietary to SAP and may not be disclosed without

the permission of SAP. This presentation is not subject to your license agreement or any other service or

subscription agreement with SAP. SAP has no obligation to pursue any course of business outlined in this

document or any related presentation, or to develop or release any functionality mentioned therein. This

document, or any related presentation and SAP's strategy and possible future developments, products and

or platforms directions and functionality are all subject to change and may be changed by SAP at any time

for any reason without notice. The information in this document is not a commitment, promise or legal

obligation to deliver any material, code or functionality. This document is provided without a warranty of any

kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness

for a particular purpose, or non-infringement. This document is for informational purposes and may not be

incorporated into a contract. SAP assumes no responsibility for errors or omissions in this document, except

if such damages were caused by SAP´s willful misconduct or gross negligence.

All forward-looking statements are subject to various risks and uncertainties that could cause actual results

to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-

looking statements, which speak only as of their dates, and they should not be relied upon in making

purchasing decisions.

Legal disclaimer

The information in this presentation is confidential and proprietary to SAP and may not be disclosed without

the permission of SAP. This presentation is not subject to your license agreement or any other service or

subscription agreement with SAP. SAP has no obligation to pursue any course of business outlined in this

document or any related presentation, or to develop or release any functionality mentioned therein. This

document, or any related presentation and SAP's strategy and possible future developments, products and

or platforms directions and functionality are all subject to change and may be changed by SAP at any time

for any reason without notice. The information in this document is not a commitment, promise or legal

obligation to deliver any material, code or functionality. This document is provided without a warranty of any

kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness

for a particular purpose, or non-infringement. This document is for informational purposes and may not be

incorporated into a contract. SAP assumes no responsibility for errors or omissions in this document, except

if such damages were caused by SAP´s willful misconduct or gross negligence.

All forward-looking statements are subject to various risks and uncertainties that could cause actual results

to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-

looking statements, which speak only as of their dates, and they should not be relied upon in making

purchasing decisions.

Legal disclaimer


At the end of this lesson, you will be able to:

• Explain the principles of SAP Simple Finance add-on 2.0

• Provide an overview about new features in Accounting

• Get a high level understanding of how to get there –

to SAP Simple Finance Add-on 2.0

Objectives Slide


Agenda

SAP Accounting Reinvented

Principle of One

Closing Acceleration

Intuitive User Experience

Drilldown Reporting

Non-disruptive

Flexibility


Agenda


Principle of One



Drilldown Reporting

Non-disruptive

Flexibility


SAP Accounting powered by SAP HANA

Instant Insight


Non-Disruptive and Flexible

” “ The world’s leading Accounting solution. Reinvented

The new Principle of ONE

Universal Journal Entry

One Chart of Account

Central Finance Deployment

Leverage Soft Close

Better Insight within the Period

Accelerate Hard Close

New look and feel with Fiori

Traditional Accounting Transactions

Analytical Accounting Apps

Intuitive drill down reporting

Trial Balance Reporting

Journal Entry Analyzer

Non-Disruptive

Migration Path

Compatibility Views

Flexible

Journal Entry Extensibility

Flexible Add-on Postings


Agenda


Principle of One



Drilldown Reporting

Non-disruptive

Flexibility


Challenges of the current architecture:

Multiple sources of truth

Challenges:

• The combined content of several

tables represents “the truth”.

Reconciliation efforts are

enforced by design

• Need “to move” data to the

appropriate table for reporting

(e.g. “settlement”)

• Different level of detail stored in

the respective

components/tables

• Components are structured

differently (e.g. fields/entities

differ)

• Different capabilities in the

components (customer fields,

currencies, multi-GAAP etc.)

• Multiple BI extractors needed to

cover the complete truth in BI.


Custom specific

The new Principle of ONE Universal Journal Entry in SAP Accounting

Single repository of journal entries across multiple applications

without redundancy

Universal

Journal

This enables deeper, instant insight across all dimensions, easier extensibility, and

process optimizations for an accelerated financial close.

Public Sector

Joint Venture

Profitability Analysis

Fixed Assets

Material Ledger

Accounts Receivable

Mgmt. Accounting

Accounts Payable

General Ledger


Architecture

Concept: “Take the best of all

worlds” (e.g. ledger, market

segment, coding block, etc.)

ONE line item table with full

detail for all applications - for

instant insight & extensibility

This replaces the “logical

document” of release 1.0.

Secondary cost elements are

G/L accounts.

Data stored only once: no

reconciliation needed by design

Reduction of memory footprint

through elimination of

redundancy.

Fast multi-dimensional reporting

possible without replicating data

to business warehouse (BW).

If BW is in place anyway, only

one single BI extractor needed

(instead of many today).

The new Principle of ONE Universal Journal Entry in SAP Accounting


The new Principle of ONE Fixed Asset Accounting in Universal Journal

Fixed Assets in Universal Journal

Reconciliation between G/L and AA is ensured by design.

After migration, reporting for previous fiscal years is still possible due to compatibility views.

Transparent assignment of depreciation area to accounting principle

Depreciation posted with all details: Accumulated depreciation costs and costs by asset Audibility and Simplicity benefits

Independent / complete depreciation areas (no delta areas used as before)

Simplified Chart of Deprecation, only one depreciation area per valuation necessary

New transactions for depreciation area specific documents

New document display: explain the detailed impact of any transaction to the books

Flexible account determination


The new Principle of ONE All Accounts become G/L Accounts

Balance Sheet Accounts

Non Operating

Expenses/Revenues

Primary Cost Elements

Secondary Cost Elements

G/L Accounts

Available G/L Account types:

• X: Balance Sheet

• N: Non operating expenses/reveneus

• P: Primary costs /revenues

• S: Secondary cost elements


Deployment Option ‘Central Finance’ Centralization in a distributed system landscape

Planned Innovations

Real-time replication of

secondary CO postings from

several source systems into a

central simple finance system

Document drill back to the

original FI document in the

source system

Replication of cost objects

(production orders, product cost

collectors, and internal orders)

from source systems to the

central system

Mapping functionality for

harmonization of master data

before posting into central

finance

Access to existing master data

mapping from SAP Master Data

Governance (optional)

Centralized error handling with

the error correction and

suspense tool

Benefit from SAP Simple Finance while not

touching your existing system landscape


Agenda


Principle of One



Drilldown Reporting

Non-disruptive

Flexibility


Leverage Soft Close and accelerate Hard Close Accelerated Financial Close

Soft Close – Better Insight within the Period

• Real-time profitability by earlier derivation of market segment information from sales order

items, cost centers, internal orders, and customer projects

• Correct asset acquisition values at any time - now also for valuation areas with “special

items” - no more periodic posting run required

Hard Close – Elimination of Closing Tasks

• See improvements mentioned under “Soft Close”

• Elimination of multiple reconciliation tasks due to the universal journal

Hard Close – Acceleration of Closing Tasks

• Significant speed-up of asset depreciation run – the depreciation amounts are re-calculated

with every master data change or asset transaction, and no longer at period-end as part of

the depreciation run


Leverage Soft Close and accelerate Hard Close Enriched Profitability Characteristics in real time

We get richer data faster

Profitability characteristics are

immediately derived at the

point in time of each “primary”

document.

Approach: Take all information

that is available and known at

this point in time. Post to a

“CO-object” and fill market

segment attributes in one step.

No settlement run needed to

show relevant market segment

information in profitability

We write a market segment

information to each P&L line

immediately

Example on the left: Immediate

assignment of a market

segment to salary costs

Example: Posting of salaries and immediate assignment of the

respective market segment

G/L Account Cost Center Market

Segment

Credit Debit

Salaries and

wages

1000

(Development

Financials)

HANA 20000 €


We get richer data faster

Full level of detail stored for use

in all components. Example:

Causing Fixed Asset stored in in

cost center reporting.

New structural capabilities:

Ability to analyze costs for all

cost object types together

Example for air travel costs that

is analyzed by different CO-

objects in one report

Further specific analysis by

market segment is possible

without waiting for the closing

process to happen.

Leverage Soft Close and accelerate Hard Close Multiple attribute available in each posting item


Agenda


Principle of One



Drilldown Reporting

Non-disruptive

Flexibility


Intuitive User Experience Fiori UIs for Accountant’s daily transactions

…

Post General Journal Entries

One Screen App for manual postings

to G/L accounts

Calculate taxes automatically

Add attachments and enter notes to

explain the reason for postings


Intuitive User Experience Financial Statement App

Financial Statement App

Simple search for accounts and

hierarchy nodes

App navigation to show G/L balances

App navigation to show G/L line items


Agenda


Principle of One



Drilldown Reporting

Non-disruptive

Flexibility


Financial Statement drill-down unleashed Fast drill down reporting to any Journal dimension


Flexible Journal Entry Analyzer Starting with detailed analysis per Journal Entry


Agenda


Principle of One



Drilldown Reporting

Non-disruptive

Flexibility


Migration Path to Simple Finance 2.0

Preparation

Upgrade & DB Migration

• Perform period-end closing activities in asset accounting

• Run reconciliation reports to ensure consistent data/ Run special check report for FI-AA installed via note

• Execute and save financial reports to allow comparison of financial KPI‘s after migration

• Customizing for New GL (if necessary) and Customizing for initial balance carry forward (in test system)

Optional: New GL Migration

Data Migration

Post Processing

• Create cold store for old index tables (for partially archived documents)

• Update FI-AA customizing (in test environment)/ Import FI-AA Customizing (in productive environment)

• Run Reconciliation reports to check data consistency

• Execute financial reports and compare financial KPI‘s with KPI‘s from preparation phase

• Perform process tests to ensure successful migration (in test system)

• Backup (BCK) tables are created in DDIC for all tables, which will be made obsolet (totals and index)

• Run check report, if all necessary BCK tables have been created

• Rename index and total tables into x_BCK

• Delete original index and total tables and generate views instead

• Import and Activate new programs

• Import Customizing of initial balance carry forward (in productive system)

• automaticaly fill table for AP/AR balances carried forward

• Perform Smart Financials Migration: Fill Delta-tables, Fill table for AP/AR balances carried forward, Perform

initial balance carry forward (if necessary), Link line items CO& FI)

• Import New GL Customizing (if necessary)

• Run migration of data original stored in classical GL into New GL data structures (FAGLFLEXA)

• Check report to ensure successful migration step


Non Disruptiveness

Safeguarding customer

investments

From the perspective of an

ABAP program nothing

changed (read access)

We provide so called

“compatibility views”.

Via this views the select is

redirected to the new

persistency in HANA

In the example given, an

access to table COEP is

redirected via the view

V_COEP to the new Universal

Journal Entry

Consequence: Customer ABAP

programs that read directly

“COEP” via select statements

continue to run as before


Agenda


Principle of One



Drilldown Reporting

Non-disruptive

Flexibility


Flexible Ledger Concept Flexible Add-on Postings via Appendix Ledgers

Universal Journal

Base Ledger IFRS

Purpose: Financial Statement for IFRS

Appendix Ledger A

“Post into closed periods

for restatement purposes”

Appendix Ledger B

“Distribute revenues

differently on org units

than in legal view”

Appendix Ledger C

“Adjustments for

consolidation purposes”

Planned Innovation

Ledgers can be stapled on top of each

other providing a flexible mechanism for

adjustments and reporting.

An important use case are management

views on top of legal data.

Besides creating a master record,

appendix ledgers need no additional

configuration.

Reporting on the appendix ledger always

includes the data of the base ledger.

Multiple appendix ledgers can point to the

same base ledger.

Appendix ledgers can point to another

appendix ledger instead of a base ledger -

creating a hierarchy of ledgers.

Benefit of reduced data footprint

Benefit of reduced reconciliation as only

(manual) delta postings are maintained in

the appendix ledger.


Uniform extensibility with customer fields

Universal Journal

… Standar

d Field x

Standard

Field x+1 zzcust01

zzcust0

2 …

wwprof0

1 wwprof02 …

Coding Block extensibility “CO-PA” extensibility

Capabilities:

• Unified Journal can be extended with customer fields.

• We offer P&L line extension using “CO-PA capabilities”, i.e. field definition including the rich

derivation tools.

• We offer Coding Block extensibility.

• The new HANA based reporting of all components can use the customer fields


You should now be able to

Explain the main functional features of SAP Accounting

from SAP Simple Finance 2.0

Understand the benefits of Universal Journal Entries

Give an overview about SAP Accounting to customers

Summary


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SAP affiliate company products and services are those that are set forth in the express warranty statements accompanying such products and

services, if any. Nothing herein should be construed as constituting an additional warranty.

In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or any related

presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation, and SAP SE’s or its affiliated

companies’ strategy and possible future developments, products, and/or platform directions and functionality are all subject to change and may be

changed by SAP SE or its affiliated companies at any time for any reason without notice. The information in this document is not a commitment,

promise, or legal obligation to deliver any material, code, or functionality. All forward-looking statements are subject to various risks and uncertainties

that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking

statements, which speak only as of their dates, and they should not be relied upon in making purchasing decisions.

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