SAP S/4HANA Cloud for Advanced Financial Closing

Solution Overview
Katharina Reichert, SAP
November 2019

PUBLIC
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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.

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Agenda

▪ The Financial Close: drivers and challenges

▪ Process support (roles, apps, and analytics)

▪ Technical details (integration, configuration, extensibility)

▪ Outlook / Product Direction

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SAP S/4HANA Finance
The foundation for enabling finance transformation and addressing accounting and closing challenges

Real-time business Intuitive user experience Instant benefit

In-memory enabled Consistent across devices Easier to deploy and extend

Continuous accounting
and controls monitoring

End-to-end Instant
process financial
automation analysis

SAP HANA

Real-time treasury Real-time and

and cash predictive
management planning

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Entity Close with Manual Orchestration

Start End
Time Time
Process
6. Settlements
Act # Description
20.5
workday
Settlement Contracts and SD orders to COPA X-3
Jan 09
03. Feb
CET
Overnight
CET
11:00
KG CoE
CoE
Transactions
VA88
Pre-req.
17,1 ;17,2; 17,3 ;
19,2; 24;4
Manual Interface
CoE to send
- Spool file to KG with SAP Office message with detail of job
run.
Narrative
Month end settlement to CO /PA. Overnight job
(possible)
Who is in charge?
- Excel file with list of errors and proposed corrections to be
made (if any).

8. Controls

5. BW2000 WIP
22.0

23.0
Closing monthly accruals headquarter

KG Posting Cut-off for NI MOD (WBS)

Preliminary (1b)
X-3

X-3
03. Feb

03. Feb
Before
14:00
15:00
KG FI

KG CO
F-02, FB60

19.1 KG: SAP office message to be sent back to CoE to confirm

Job Cost posting cutoff for NI MOD (WBS)
Manual posting (headquarters, branches…)

KG to confirm that all postings are complete for the

preliminary WIP run
Who runs what?
5. BW2000 WIP 24.3 WIP/LJP valuation (final run). X-3 03. Feb 15:00 16:00 CoE YAF63 23 CoE to send : Run WIP in CoE, and resolve error log. After errors are

What’s the most efficient

- Spool file to KG withSAP Office message with detail of job corrected, run WIP, with posting and settlement to Co-
run and YAF81 report. PA. Download YAF82 and YAF70D overnight into XCEL
- Excel file with YAF82 preformatted downloaded list. files preformatted for KG analysis.
5. BW2000 WIP 24.4 WIP, LJP, and Pre post analysis, check, and X-3 03. Feb 16:00 11:00 +1 KG CO XCEL File from 24.3
YAF82, YAF70D,
validation (incl settlement)

sequence?
YAF81, YAF87
8. Controls 25.0 Global order analysis for material consumption X-3 03. Feb Before KG FI - YAF40 Postings finished Check global orders amounts (not increasing, not
14:00 CO negative amounts)

6. Settlements 26.1 Pre - Settlement notification for: CO orders to X-3 03. Feb 11:30 CoE 17,1 ;17,2; 17,3 ; Coe to send a mail to KG FI/CO resp. with information that Coe to send a mail to KG FI/CO resp. with information
19,2; 24;4 settlements will be executed next day at 18:15 that settlements will be executed next day at 18:15
COPA
KG mail to confirm that no more FI/CO bookings on orders will KG mail to confirm that no more FI/CO bookings on
WBS to COPA be done from that time. orders will be done from that time.

6. Settlements 26.2 Settlement CO orders to COPA X-3 03. Feb Overnight 11:00 CoE KO8G 17,1 ;17,2; 17,3 ;
19,2; 24;4
CoE to send
- Spool file to KG with SAP Office message with detail of job
run.
Month end settlement to CO/PA. How do I combine with manual
tasks?
- Excel file with list of errors and proposed corrections to be
made (if any).

6. Settlements 26.3 Notify KG that COPA MR to C1 level is X-3 03. Feb CoE YAF02 26,2; 27; 28 CoE to send: After all Job Cost objects have settled, and after OR
- CO-PA to C1 level by SAP office quality check
complete FOR REP and SER
6. Settlements 27.0 Settlement WBS to COPA X-3 03. Feb 15:00 16:00 CoE CJ8G 17,1 ;17,2; 17,3 ; CoE to send Month end settlement to CO /PA. Overnight job
19,2; 24;4 - Spool file to KG with SAP Office message with detail of job (possible)
(completed by step 24.3)
run.
- Excel file with list of errors and proposed corrections to be
made (if any).
Where do I need an explicit
approval?
6. Settlements 29.0 Notify KG that COPA MR to C1 level is X-3 03. Feb 15:30 16:00 CoE YAF02 26,2; 27; 28 CoE to send: After all Job Cost objects have settled, and after OR
- CO-PA to C1 level by SAP office quality check
complete.
6. Settlements 29.1 Repair analysis (YAF82 download) X-3 03. Feb 15:30 17:00 CoE XCEL File from 26,2; 27; 28 CoE to send: After all EI Job Cost objects have settled, and after OR
YAF82 - Excel file with YAF82 preformatted downloaded list. quality check
6. Settlements 29.2 Preliminary MR Result (MR to C1 incl rec X-3 03. Feb 16:00 KG CO YAF_MAIN Postings finished YAF_COPA_005 - YAF_COPA_005 MR Report: CO Top - down check before CC assessment
GAP, Cost Center Reports for STRUCO) Budget / Actual

How do I manage this across

systems?
Error-prone, no real-time execution, no result capture,
not event-based, low efficiency, poor insight, ...

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Accounting and Financial Close
Need for improved speed, compliance, and insight while reducing costs

Define Process Monitor

Plan and orchestrate Increase efficiency and speed Achieve real-time insight into
repeatable, best practice of your close through your financial close process for
financial close processes better business decisions
▪ Automation
with sequenced, automated Ensure the quality and
▪ Integration
tasks and workflow across governance of the close to meet
▪ Faster processes regulatory disclosure mandates
teams and time zones.
▪ Better collaboration
▪ Intuitive self-service access to
financial information
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Why close your books faster and simpler?

Higher profitability/growth Requirements from

due to earlier insight external regulators

Higher quality/lower risk due Higher company reputation/

to more time for analysis lower cost of equity

Lower effort and costs

due to less time spent

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SAP S/4HANA Cloud for Advanced Financial Closing
Perfect planning, automation and monitoring

Benefits Capabilities

Faster Entity Close through Automated closing tasks and workflow-

improved closing efficiency supported intuitive apps for manual tasks
Collaboration, notifications, and escalations

Governance and Compliance

A global game plan defined for the entity
close; serialize for multiple org units and
closing cycles
Transparency and Insight
Audit trail, logging, documentation

Comprehensive analytics for real-time

insight into the closing status
Monitoring for subsidiaries and headquarter

15-25% Faster Closing cycle – while ensuring high-quality compliant results

Source: SAP Performance Benchmarking

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 Agility Analytics Assurance Automation
Orchestrating your processes
End-to-end automation of related SAP capabilities

Automation
SAP S/4HANA for Advanced Financial Closing
Automation and Management across your entire Record-to-Report process

Automation
Analytics Analytics SAP Account Reconciliation Assurance
SAP Analytics Profitability and Automation by BlackLine SAP Tax Compliance
Cloud Analysis
Automation Assurance
Analytics SAP Intercompany Financial Advanced Compliance
Predictive
Hub by BlackLine Reporting
Accounting Analytics Analytics Automation Analytics
SAP Group Accruals Disclosure Digital
Reporting Management Management Boardroom

Analytics
GR/IR Reconciliation

Financial and Management Financial Reporting

Financial Planning Financial Close and Analysis
Accounting

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Process support:
roles, apps, and analytics
SAP S/4HANA Cloud for Advanced Financial Closing
Role-based approach coordinates tasks across your team

SAP S/4HANA Cloud

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SAP S/4HANA Cloud for Advanced Financial Closing
Role-based approach coordinates tasks across your team

SAP S/4HANA Cloud

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Setting up the Closing structure

At the Template level, certain attributes that

apply to all tasks are maintained
▪ Notification configuration
▪ Level of user/user groups
▪ Factory calendar and time zone
▪ Ledger and accounting principle

Different options are available for creating a

closing structure (company code, plant,
company code and plant, freeform)

Folders organize tasks hierarchically into

business process areas

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Delivered task sets include standard closing steps and
sequences

Mandatory and optional

tasks delivered by
business process area
▪ General Ledger and Tax
▪ AP/AR
▪ Fixed Asset Accounting
▪ Overhead Accounting
▪ Inventory Accounting
▪ Production Accounting
▪ Sales Accounting

Sequencing and
interdependencies are
included

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Different task types can be included

There are several types of closing steps supported

Task Type Purpose

SAP Fiori Application • Process closing task manually with transactional or analytical Fiori application
• Defined parameters (at folder or task level) are automatically transferred
• Authorization checks ensure assigned processor has all necessary
authorizations
Job • Schedule automatic process steps
• Automatic jobs are scheduled automatically once the start time is reached and
the predecessor task is completed
• Manual jobs can also be scheduled
Note • Process closing tasks manually by external means
Web Application • Closing steps that are processed using external web services or to assign
documentation resources
• A web application is any service or HTML page accessible via a URL

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Attributes set in the template will be used in period
task lists

For better international

alignment between
Approval requirements organizational units,
set at task level different time zones
are supported

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Further technical details maintained at task level

For scheduled jobs, include Job Parameterization for Scheduling

and exclude conditions must
be documented

These parameters are

required by the job scheduler

Dependencies

Predecessor Tasks Successor Tasks

Dependencies document Predecessor
Tasks and Successor Tasks

These are used for triggering jobs and

workflow tasks

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Making changes to the template

As things change, you can select multiple

tasks at once for mass changes for many
key attributes:
▪ Role assignments
▪ Approval settings
▪ Notifications
▪ Timing and dependencies
▪ Factory calendar and country key

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Generate periodic work lists

Generate task list for a particular close from the

template, by entering
▪ Key Date
▪ Posting Period

Key relative dates and parameterization are

passed to tasks

A “released” task list will send tasks to

responsible users immediately

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Fiori apps for processing and
approving tasks

Process Closing Tasks

▪ You use the Process Closing Tasks app to manually process, schedule, or automate tasks related to your
entity close.
▪ The app automatically updates the status of scheduled and executed jobs or automatically validated tasks.
▪ When processing tasks, you can add comments and attachments, or communicate with other employees
using SAP CoPilot or your standard e-mail client.

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View the status of all closes where you are involved

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For a particular task list, see all assigned tasks – navigate to task or set
status

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Fiori apps for processing and
approving tasks

Approve Closing Tasks

▪ You use the Approve Closing Tasks app to check and approve critical closing tasks.
▪ Every task of a closing task list is classified by the following approval types:
– No Approval (N): An approval is not required before it can be completed. This approval type is set as a
default.
– Proceed to Approval (A): An explicit approval must be done before task can be completed. The successor
tasks are on hold until the approval is granted.
– Proceed w/o Approval (C): The task is subject to approval, however, a pending approval does not cause a
delay to subsequent closing steps.

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Depending on your preferences, approve from your worklist or notifications

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Fiori analytical apps for continuous
insight

Financial Close Overview

▪ This app enables you to access key information and KPIs to monitor the completion of closing tasks.
▪ In case of issues and delays, you can jump to the relevant apps and drill down to the details to find the root
cause or to identify the responsible person.

Closing Task Completion

▪ This app enables you to analyze the status and completion rate of active closing tasks as a summary.
▪ You can drilldown into details to analyze the data using different chart and table options, and to take the right
action.
▪ For example, you can filter for completed tasks with errors by company code to get a list of all corresponding
tasks and display the processor, the responsible, or the corresponding user groups.

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Financial close overview

Key reporting metrics and

drilldowns
▪ Open Tasks
▪ Tasks to be Approved
▪ Delayed Task Lists
▪ Number of Errors
▪ Completion Rate
▪ Task Completion overview

Use digital assistant or

phone to contact the
person responsible to
take immediate action.

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Closing task completion
Current status of active closing tasks

Overview of Closing
Task completion

Graphical filters help

identify critical tasks
(errors, overdues, etc)

Drill-down to Task
Detail

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General Fiori functionality lets users determine certain settings

Define User Settings

Certain settings that impact your work in the

SAP S/4HANA system in general have
implications for closing tasks
▪ Turn off email notifications from notification service
▪ Substitutes – who should take over when you are
on leave

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Defining user settings

Define User Groups

A user group is a group of users who process

or are responsible for a particular set of closing
tasks.

In the Define Closing Tasks app, closing tasks

or folders can be assigned to user groups
instead of individual users.

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Technical details:
integration, configuration, extensibility
Delivery via S/4HANA Cloud supports rapidly expanding capabilities

SAP S/4HANA
Advanced Cloud
Financial Closing

SAP S/4HANA Cloud

SAP
S/4HANA SAP Cloud
Non-SAP SAP ECC SAP S/4HANA Platform
Cloud

Speed of innovation – Standardized best

quarterly releases practices

Lowest TCO –
managed by SAP Deploy in days, not months

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Configuration Options/Self-Service Configuration User Interface (SSCUIs)

The following SSCUIs related to

financial closing are available
under the Finance application area
and Entity Close sub-application
area:
▪ Define General Settings
– Data privacy / Segregation of duties
▪ Define Authorization Groups
– Who can edit a template / task list
▪ Define Country Groups
– Structuring of reporting
▪ Define Notification Configurations
– When should emails or notifications
be sent?

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Outlook:
product direction
 SAP S/4HANA Cloud for Advanced Financial Closing
Key Roadmap topics

SAP S/4HANA
Advanced Cloud
Financial Closing
SAP S/4HANA for Advanced Financial Closing

SAP S/4HANA Cloud

SAP Financial Financial

SAP Cloud Entity Close Group Close
Non-SAP SAP ECC SAP S/4HANA S/4HANA Accounting Reporting
Cloud Platform

Closing Hub Scenario Intelligent Closing Central steering

Enable Connectivity to on premise and Leverage intelligent technologies to Enable Central Management for Entity
Cloud in heterogeneous landscapes automate and further streamline the and Group Close along the entire
closing process Record-2-Report process

2019: 1st Half 2020: 1st Half 2020:

connectivity to SAP ECC Central Steering of Audit
iRPA Bot Integration
1st Half 2020: KPI-based Balance Sheet Validation 2nd Half 2020:
3rd party Scheduler integration Group Reporting Data and Consolidation Monitor
2nd Half 2020: enabled by AFC
Automated Error Resolution
Beyond 2020:
Connectivity to external automation services
Central Steering for Organizational Changes
Beyond 2020:
Close Simulation
SAP has no obligation to pursue any course of business outlined in this slide or to develop or release any functionality mentioned on this slide. This slide 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.
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SAP S/4HANA for advanced financial closing

Intelligent RPA
Customer-specific processes (e.g.
Machine Learning XLS Uploads, 3rd Party
Integration)
Matching, Reconciliations,
Recommendations Automation Extensions
(e.g. GR/IR, Accruals)
e.g.BlackLine Balance Sheet
Account Substantiation

Planning, Execution, Monitoring

Hub solution Continuous Accounting Innovative Approach Reduced TCO

✓ Unified user experience
✓ Execute closing tasks in ✓ Accelerated financial ✓ Integrate bots and across multiple use cases
multiple on premise and closing automation extensions for (entity close, group close)
cloud systems ✓ Greater visibility maximum automation ✓ End-to-end Best Practice
content
✓ Central monitoring across ✓ Adoption of S/4 ✓ Workflow and collaboration
✓ Cloud delivery with short
geographies and systems innovations in templates tools for manual tasks innovation cycles

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Financial Close in SAP S/4HANA
Enabling group-wide accurate, automated close at any moment

Benefits

▪ Reduce manual effort and risk of

errors by automating the group-wide
Monitor and automate the group-wide close close in line with multiple reporting
standards

▪ Instant access to financial information

on entity, business unit and group
Group Reporting
level throughout the period for better
decision making

Local Accounting ▪ Monitor in real-time the progress,

Single financial truth quality, and financial results of the
close to avoid bottlenecks and
address business concerns

Record Financial
Accounting Financial Close Financial Reporting
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Summary
Perfect Planning, Automation and Monitoring
SAP S/4HANA Cloud for advanced financial close

Transparency and Faster Entity Close Governance and

Insight through improved efficiency Compliance

▪ Real-time insight into the ▪ Automated closing tasks, ▪ Define a global game plan
closing status even in remote systems and for the entity close; leverage
powerful, user-friendly it for multiple org units and
▪ Monitoring by subsidiaries application for manual tasks closing cycles
and headquarter
▪ Collaboration, notifications, ▪ Audit trail, logging,
▪ Close Analysis and workflows documentation

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Find more Information on SAP S/4HANA Finance

Learn more about SAP S/4HANA Finance

http://www.sap.com/finance

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Processing and Approving Tasks
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Thank you.
Contact information:
Katharina Reichert
[email protected]
Follow us

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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 platforms, 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, and they
should not be relied upon in making purchasing decisions.
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