SAP Central Finance - digital Finance as a "Frontrunner"

The central financial system for large SAP ERP system landscapes on the way to S/4HANA

SAP Central Finance based on SAP
S/4HANA makes it possible to establish a centralized financial system with harmonized data structures and the effects
keep the existing system landscape manageable compared to a comprehensive system harmonization. The product offers the possibility of introducing such a system “off the shelf”.

SAP systems from different releases with heterogeneous data structures, as well as non-SAP systems, can be integrated. Different data structures in finance and controlling such as general ledger accounts, profit centers, cost centers and cost objects can be transferred to central data structures in the Central Finance System by using assignment rules. Replication from the source systems can be done in real time. Access to the original documents in the source systems is possible from the Central Finance System.

S/4HANA Central Finance offers the following advantages:
· Single point of truth - harmonized, granular financial data including access to position details and supporting documents
· Real-time replication and real-time reporting at group level
· Potential for streamlining and accelerating closing processes (soft close)
· Integrated planning based on harmonized data
· Sustainable function expansion (extended consolidation - Central Consolidation)
· Easy integration of other systems and companies.

The introduction of a central financial system not only has an impact on the systems, but can also have far-reaching effects on processes and organization in the financial sector and contribute significantly to its effectiveness. Harmonized data structures support the acceleration of closing processes and the reduction of coordination efforts.

For internationally active companies with very heterogeneous landscapes, Central Finance is now considered the ideal route to SAP S/4HANA. Using central finance, the companies are introducing an operational finance, reporting, controlling and consolidation platform, thereby centralizing their distributed finance landscape.

Last but not least, this approach enables companies to harmonize all financial master data - from the chart of accounts to the cost centers - without having to make changes in the source systems. A "Single Source of Truth" for all financial data is created in no time. Bookings and receipts are available at the push of a button, as are reporting data for consolidations. In the case of audits, the creation of the data is quickly and clearly proven via drill-down to the individual booking. The increasing international compliance requirements can also be mapped automatically - the UK Tax Authority's “Making Tax Digital” initiative currently shows where the journey is going in many countries.

Many companies only ever consider entire systems from a financial function and logistics. This slows down the financial transformation, because it can only start after the migration of the very complex logistics areas.

The "Finance First - Logistics Follows" approach is more elegant and efficient. The finance department is transformed into the new central finance system using a greenfield approach without changes to the previous financial systems. The project team transfers local processes to the central system step by step. Control system, internal and external reporting, treasury, receivables management and shared services - everything is anchored centrally.

The logistics data are only considered in the second step. Based on the experience and preparatory work from the financial transformation, the company can decide whether the logistics data should move into the new system or be operated independently as a connected logistics system. Architectural decisions are based on the experience with the previous finance project. That makes many things clearer and easier.

we support your digital Finance with the implementation of SAP S/4HANA Central Finance

Decision-makers can rely on valuable help to implement SAP S/4HANA Finance quickly and securely. Our Digital Finance Services: These services offer proven integration processes as well as functional and technical accelerators. We offer our customers a proof of concept with which they can get a taste of the new finance world within a few weeks. It quickly becomes clear that the digital transformation of the financial sector does not have to be rocket science. On the contrary, it can be implemented with the right planning and a structured process model within the planned time and within the planned budget. With preconfigured solutions and best practices, implementation is not only significantly faster, but also more cost-effective.

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your contact

John Harmath

Managing Partner
SAP Solution & Business Processes Architect
Finance, Finance Operations (Receivables / Payables), Shared Services, Master Data

+49 69 9001 2982