SAP Enterprise Performance Management Financial … Financial Closing cockpit SAP Central Process...

march 14th , 2013

Fabrice Giraudin, SAP Global EPM COE

SAP Enterprise Performance Management

Financial Close to Disclose

© 2013 SAP AG. All rights reserved. 2

Having problems organizing your financial close?


Intro

The following information is based on a compilation of key assets:

Office of the CFO customers: feedback and experience sharing about their business

challenges and pains, processes optimization, organization and management changes,

risk management, lessons learnt and successful live application content to cope with key

business requirements

Big 4 Advisory and Audit consulting firms: feedback, experience and benchmarks dealing

with such business targets and key objectives, including project implementation debrief to

confirm goals achievement

SAP knowledge and expertise within the Enterprise Performance Management space and

specially in the legal consolidation and management reporting for the last 20 years

supporting key customers to get rid of their challenges and get instrumental benefits


Integrate and Consolidate ERP Platforms

Simplify user access

Standardize and Automate

Harmonize Legal and Management Accounting

Establish 'Self-Auditing' Processes

Define Closing Process centrally

Provide Workflow and Coordination

Ensure Reliable Reporting and Decision Support

Monitor Closing Status centrally

Fast Financial Close Breaking the Barriers

Fast

Fin

an

cia

l C

lose

So

luti

on

Map

IT Systems

Organization

Processes

Insight & Control

CFO Strategies Barriers

© SAP 2009 / ERP Financials & BusinessObjects Enterprise Performance Management – AXA Group Overview Presentation V.1 / Ralph Schöpfer /


Best of Common Issues with the Financial Close Manual Errors, Slow Time to Report, Control Risks

2012 SAP survey based on customers experience and Big 4 feedback

Local close cycle

Manual journal entries and

reconciliation of data from disparate

systems increases time

Email and spreadsheet status reports

and communications require version

control and contribute to errors

Intercompany

reconciliation

Manual reconciliation and

elimination

Time consuming and error

prone processes

Group close

Manual eliminations

High costs to close books

Large volumes of late adjustments

Inability to ensure on-time close

External financial

reporting

New reporting formats

(e.g. XBRL)

Long audit sign-off periods

Increased auditing costs

Financial management

review

Difficult to certify correctness of data

from multiple origins

Data may contain undetected errors

Time consuming manual processes

make it difficult to respond to ad-hoc

requests for analysis

1

Controlling

Internal Audit

Consolidations

2

6

5 4 3 Data submission for group close

Manual processes and spreadsheets use to

transfer data from local to group chart of

accounts

Lack of automated audit trails

Labor-intensive and time consuming data

validation and error reconciliation


MUST HAVE a Modern, Coordinated Financial Close Automated, Scheduled, Compliant and Leverages XBRL Standards

2012 SAP survey based on customers experience and Big 4 feedback

Local close

■ Real time synchronization of all tasks

■ Cross-system scheduling

■ Automated and repeatable event based

processes

■ Monitoring and control

Group close

■ Automated eliminations, consolidations,

journal entries, and audit trails

■ Coordinated worldwide closing schedule

■ Complete visibility over processes and

owners

External reporting

■ Improved transparency

increases investor confidence

■ Automated and documented

audit trails

Executive

financial review

■ Visual tools help

deliver key insights

and validate data,

calculations, and

divisional results

■ Full cycle compliance

monitoring and

internal control

Intercompany

reconciliation

■ Automated reconciliation

■ Standard COA eases

matching

■ Alerts identify

exceptions

■ Workflow based

remediation

Data submission

for group close

■ Unified “lead” ledger and

standardize chart of

accounts

■ Integrated systems,

automated mapping from

local to group accounts

■ All units submit data to

same system in common

format

Controlling

Consolidations

Internal Audit


Benefits Derived from Cycle Time Reduction

Key Benefits of accelerated financial close

Improved control systems and processes at lower cost

Greater quality and greater efficiency

Faster access to financial information for decision making

More time for value-add financial analysis

Ability to respond to management requests and support key initiatives

Marketing tool

Work-life balance for accounting

Source: SAP - Fast Close Survey. BPM Magazine. May 2012

Redeployment of staff and resources towards more value-added activities

Ability to meet regulators deadlines

I do not see any value in cycle time reduction

Be able to work fewer hours, less late nights and weekends

Cost reduction

62%

7%

8%

13%

10%


Customers’ Speed Closing and Reporting Cycle Times

While Reducing Costs with SAP Accelerate the Financial

Close porfolio Working Days to Close Annual

Books 10.1

4.1

Best in Class

Average

Source: ASUG Benchmarks 2011

Customer Benefits Achieved

Reduced reporting resource required by 33%

Reports created 30% faster

Reduced financial statement prep time by 20%

Shortened period-end closes by 2 days

Significantly reduced close cycle time

Used SAP GL as single-instance data source

Reduced reporting cycle time from 20 to 5 days

Roche HQ consolidation cut from 12 to 2 days

Reduced intercompany reconciliation process from

10 days to 5 days

Reporting cycle cut by 5 days enabling monthly

closings

Cut month-end closing time by 2 to 3 days

Dropped daily business reporting time from 10

person-hours to seconds

At Roche we cut our monthly

reporting cycle from 20 to 5

work days, and now our top

management has the ability

to make faster business

decisions, which they really

appreciate. Suzanne Erken-Recks, Head of

Corporate Finance Informatics,

F. Hoffmann-La Roche Ltd

“


Fast Financial Close with SAP Driver of Savings and Benefits

Benefits of a fast financial close

Improved control systems and processes at lower cost

Greater quality and greater efficiency

Faster access to financial information for decision making

More time for value add financial analysis

Ability to respond to management requests and support key initiatives

Work-life balance for accounting staff

Benchmarks from SAP's case studies and success stories

% Impact

Operating Costs or Benefits

Time to close books (cycle time) 30% - 45%

Financials staffing levels 20% - 45%

Reconciliation costs (e.g., data sources, legal

accounting, management accounting, inter-company) 50% - 80%

Corrective actions during quarterly financial consolidation cycle

30% - 50%

Amount of data automatically integrated with SAP® ERP

20% - 80%

Reduce Ledger interface maintenance costs 20% - 40%

Fully automated consolidation reports and distribution

35% - 100%

Internal and external audit costs (“self-auditing processes”)

10% - 20%

World-class companies spend 45% less on their closing and reporting efforts than other companies and save €5.5 million for every €1B in revenue. The Hackett Group

“


Fast Financial Close with SAP Driver of Savings and Benefits

Benchmarks from SAP's case studies and success stories

% Impact

Operating Costs or Benefits

Downsize Infrastructure Costs (at comparable users scope) 25% - 35%

Reduce Costs and simplify Consolidation App Maintenance Costs (only 1 FTE for application system evolution, internal administration, no need of consulting after go live)

50% - 80%

Office of the CFO is the app owner – no need of technical experts from IT to design reports (IT only required for servers platform)

100%

Simulation and what if scenarios flexibility (no more Excel parallel spreadsheets) 20% - 40%

Customer / end user satisfaction and buy in (solution supported by the business, common language and reporting tool across the group)

10% - 20%

Bekaert can collect its far-flung data more efficiently with greater transparency, accuracy,

and speed. Greater efficiency has enabled Bekaert to reduce time spent during its quarterly

Financial consolidation by 30%. Because it takes less time to prepare the numbers, there is

more time for our financial controllers to perform broader and more value-added analysis.

Jos Van Vooren, Consolidation Director, Group Control, Bekaert

“


Entity Close

Corporate Close

Financial Accounting

Reporting and Disclosure

Financial

Close

Governance

Internal Controls

Master Data Governance for Financials

General Ledger

Sub-Ledgers

Intercompany

Reconciliation

Reporting

and Analysis

Consolidation

Notes

Management

Disclosure

Management

Accounting and financial close Improve speed, accuracy, and compliance while reducing costs

Entity Close

Management


Accounting and financial close Improve speed, accuracy, and compliance while reducing costs

Streamline

reporting and

adhere to

regulations

Efficiency

Insight

Transparency

Control

Reporting and

Disclosure

Ensure

transparency

and consistent

master data

Standardization

Consistency

Transparency

Control

Financial Close

Governance

Quickly supply

consolidated

multi-standard

financial data

Compliance

Speed

Automation

Efficiency

Corporate

Close

Provide timely

reporting with

existing

resources

Compliance

Speed

IC matching

Efficiency

Entity Close

Support

multiple

standards and

requirements

efficiently

Compliance

Automation

Integration

Efficiency

Financial

Accounting

Chief Financial

Officer


Accounting and financial close applications

Reporting and

Disclosure

Financial Close

Governance

Corporate

Close Entity Close

Financial

Accounting

Chief Financial

Officer

SAP General

Ledger

SAP ERP

Financials –

Sub Ledgers

SAP Financial

Closing cockpit

SAP Central

Process

Scheduling by

Redwood

SAP

Intercompany

SAP Financial

Information

Management

SAP Business

Planning and

Consolidation

SAP Financial

Consolidation

SAP Notes

Management

SAP Starter Kits

SAP

BusinessObjects

BI Solutions

SAP Disclosure

Management

EPM Addin

SAP Process

Control

SAP Master Data

Governance for

Financial Data


SAP Rapid Deployment Solutions

Software

Quickly address the most urgent business

processes

Content

SAP best practices, templates and tools

make solution adoption easier

Enablement

Guides and educational material speed end

user adoption

Service

Fixed scope and price provides maximum

predictability and lowers risk

Ready-to-use solutions offered

by SAP and a Global Partner

Ecosystem include…

… which allow for predictability,

packaged integration and adoption

choices as business demands

Predictability

Fast value in days/weeks

Fixed cost and fixed best practice scope

Integration

Integrated start and growth options

Immediate and future IT and business

processes landscape integrity

Choice

Modular packages to meet specific

business needs and allow individual

adoption paths

Flexible licensing and deployment options


SAP rapid-deployment solution for financial close and

disclosure management

Full support for GAAP to IFRS transition

The Financial Close starter kit for IFRS includes

features to help customers transition to IFRS.

Pre-configured IFRS consolidation rules,

controls, and calculations

Consolidation processing, extensive set of

automatic business rules, analysis & audit trail

and control &validation are some features which

supports pre-configuration.

Publishable financial statements

The pre-configuration is delivered with a set of

key financial statements based on IAS 1 for

Financial Close.

Pre-configured financial reports mapped with

IFRS taxonomy for use with SAP Disclosure

Management, allowing you to pull data from the

consolidation application into ready-made XBRL

documents for reviewing, analyzing and

preparing financial data.


Fast implementation Pre-packaged content reduces implementation times

Financial close starter kits and RDS available today

SAP Business Planning and

Consolidation, SAP

NetWeaver – powered by SAP

HANA

IFRS SP4

Available

Now

US GAAP

SP0

May 2013

US GAAP

SP1

Nov 2013

SAP Business Planning and

Consolidation, Microsoft

platform

IFRS SP1

Available

Now - -

SAP Financial Consolidation

IFRS SP3

Available

Now

Solvency II

Available

Now

Japan

GAAP

GA March

30, 2013

EBA FinRep/

CoRep

June 2013

SAP Disclosure Management

IFRS SP1

Available

Now

US GAAP

SP2

Available

Now

-

EBA FinRep/

CoRep

June 2013

This presentation and SAP„s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. 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


EPM 2013 Back to Growth (IFRS regions focus)

SAP® Financial Close and Disclosure

Management rapid deployment solution

For IFRS



Business

Suite / ERP ERP / BW /

HANA or FIM

Connector

BPC NW

or

FC

IFRS GAAP

Starter Kit

FC

Starter Kit

Installer

Disclosure

Management

IFRS GAAP

Starter Kit

Disclosure

Management

Starter Kit

Installer

Mobile BI

Instant Close

IFRS GAAP

KPIs

NOW Run Better + Faster

IFRS GAAP rapid deployment solution for go-live in 12 weeks




Business

Suite / ERP ERP / BW /

HANA or FIM

Connector

BPC NW

or

FC

IFRS GAAP

Starter Kit

BPC NW

or

FC

Starter Kit

Installer

Disclosure

Management

IFRS GAAP

Starter Kit

Disclosure

Management

Starter Kit

Installer

Mobile BI

Instant Close

IFRS GAAP

KPIs

Q2

2013 Run Better + Faster + Savvier

IFRS GAAP rapid deployment solution for go-live in 12 weeks



• Current reporting context

• 4 main KPI‟s

• Year / Year -1 in a table +

comparison September

ACTUAL vs September

Forecast

• 3 charts to display the YTD

Actual+Forecast+Budget

• Last refresh of the data

Accelerate Financial Close to Disclose – 2013 Offer

IPAD Instant Close


EPM deal – former Hyperion customer

About KazMunaiGas

€ 4 billion revenues

O&G producer and supplier conglomerate

28 countries, 70,000 people, 50 production sites

KMG top management seeking to achieve

synergies and accelerate the development of its

activities by revisiting the Group organization:

• reporting business processes impact

• new flexible reporting consolidation tool to

address the Group finance requirements in

line with the organization

• Cover regional and divisional requirements

Customer situation and pains

Lack of integration of the current solution with SAP

ERP and SAP BW corporate reporting tool

Improve ad hoc analysis on the consolidated

management data, multiple scopes

Improve Audit trail from the consolidation system

back to SAP ERP

Improve the intercompany reconciliation process

Lack of traceability and versioning on the multiple

data submissions by the end-users

SAP@KMG : 10.000 SAP ERP & BW existing users

SAP EPM Solutions –Q4 2012

SAP BPC for Planning

SAP Financial Consolidation

SAP Financial Information Management

SAP Intercompany

SAP Disclosure Management

Why SAP ?

1. Solutions : SAP met KMG‟s business & infrastructure

high expectations

2. CFO workshop

3. Pre-Sales job with spot demos on key topics (M&A,

cash flow statement, IFRS pack,…)

4. Marketing & references

5. Field Services and Alliances

6. Exec Sponsorship

KazMunaiGas

http://en.wikipedia.org/wiki/File:KazMunayGas_logo.png


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SAP Enterprise Performance Management Financial … Financial Closing cockpit SAP Central Process...

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