Payroll Schema

Introduction to
Digital Finance with

SAP S/4HANA 1809
SAP European Finance CoE
SAP CoE is…
 Mutualisation of Global Portfolio to maintain our offers at state-of-the-art to support customers
 A Capgemini investment for each portfolio line in knowledge and assets such as Point of View, decks, use cases available in S/4HANA
Test&Demo System, participation to SAP Bootcamp, training, certifications etc.
Scandinavia
Netherlands Johan Kirstein
Erik Van Den Berg Mark Allen Carter
Thomas Mulder
UK Germany
John Crowley Sebastian Pelmer
France
Phuong Nguyen
Spain
Rovira Navarro Ricard Europe Cluster
Georges Debroux
Italy Topi Uitto
Sergio Di Molfetta
S/4HANA 1809 – CoE Deck | 8th February 2019 © Capgemini 2019. All rights reserved | 2
Contents
1 Enable the Digital Transformation
2 S/4HANA Finance 1809

 S/4HANA Finance Core
 Inventory Valuation and Transfer Price
 Profitability Analysis
 Universal Allocation
 Machine Learning & Accrual Management
 Treasury
 Analytics
 Central Finance
3 Credits
Enable the Digital
Transformation
© Capgemini 2017. All rights reserved | 4

What is S/4HANA
SAP S/4HANA is an entirely new

SAP S/4HANA is the application
generation of SAP Business Suite
layer that works as Digital core
that is characterized by
for an IT environment. It’s an
simplifications, massively
ideal choice as Digital Core
increased efficiency, and
because of SAP Fiori-based UX,
compelling features such as
Real time Analytics, capability to
planning and simulation options
handle various types of data
in many conventional
from multiple sources.
transactions.
SAP S/4HANA signals a move SAP S/4HANA is a non-

away from the transactional Disruptive journey toward Digital
system that merely records data transformation because of
toward giving end users active Compatibility Views so custom
decision support in real time that programs/reports with read
is based on data from both access to old tables continue to
internal and external sources. work.
Mission: Establish SAP S/4HANA as the Digital Core to support the Digital Transformation of our customers
The Value for Finance perspective
SAP S/4HANA allows to run your
processes faster, which enables faster
Issues planning, reactions, reporting, and
Considerable skills are required to
operate and benefit from sophisticated
analysis because of both Technology analytical tools such as SAP Predictive
capability and streamlined processes Analytics so human resources know-how
 Lack of timely, qualitative, (e.g. Intercompany reconciliation, GR/IR increasing is crucial.
good, and easily accessible monitor, Financial Closing Cockpit).
information Execute
continuous Develop
 No transparency finance talent in
process the finance
 No reliable forecasts improve- organization
With the introduction of S/4HANA
(e.g., revenue) BPC Embedded a single tool ments Because the introduction
Optimize of the Universal Journal
 Lack of perspective is provided to plan Profit and planning, Measure/
loss, Cost of sales, Market F Finance simplifies data structures,
budgeting, monitor
segments, Profit centers, Cost
I Efficiency N predicting the future
and N
E
business
centers, Internal orders, A & can be performed.
forecasting N
E performance
Projects, Liquidity. C
D
S
E Business
Drive Insight Drive
Benefits integration enterprise
of information cost
across the Provide
reduction Processes normally executed
 Soft close, no waiting to enterprise input
It means be able to have all into at period-end due to long running
analyze data after month-end information technically captured in enterprise times can now be run on a daily or
close activities one place: a single source of truth. strategy weekly basis (batches removed).
Reconciliation no longer needed.
 Support/manage/mitigate
enterprise risk
 Strengthen compliance Challenge is predictable financial results, eliminate surprises,
programs/internal controls and respond to market changes with more agility. it’s absolutely
necessary to link company’s KPIs with company’s strategic objectives
 Manage investor/stakeholder (BPC Embedded, SAP HANA Live and SAP Crystal Reports.
relations
S/4HANA Finance 1809
S/4HANA Finance Core
© Capgemini 2017. All rights reserved | 7

Simplify Data Model
The Value for Finance prespective (Integration of information)
FCC on S/4HANA Benefits
Faster Entity Close Audit Trail,

through improved Logging and
close efficiency Documentation
Real-Time Insight
Governance and into Closing Status
Compliance S/4 HANA Monitoring by Subsidiaries
and Headquarter
Financial
Close Analysis
Closing Cockpit
Global Game Plan for

Transparency and Entity Close; leverage it
Insight for multiple Org. Unit
and Closing Type
Automated Closing Task, Collaboration,

even in Remote System Notification and Workflow
15–25% Faster Closing Cycle – While ensuring high quality compliant result
Source: SAP Performance Benchmarking
Inventory Valuation and
Transfer Price
SAP Solution...
Multiple Views of the
Same Material
Flow
Legal view focuses on inter

company pricing agreements
and legal tax requirements
Group view focuses on

eliminating intercompany
profits and acting as „one
company‟
Profit Center view focuses on

management prices agreed e.g.
between divisions
Transfer Pricing: Markups for material movements –
Divisions
Group
Company 1 Company 2 Company 3
50$ Division 1 Legal:70 $ Legal:70 $ Division 2 Legal: 90$ 100$

Group: 50$ Group: 50$ Group: 50$
Profit Profit Profit Profit
PrCtr: 60$ PrCtr: 80$ PrCtr: 95$
Center 1 Center 2 Center 3 Center 4
Division: 50$ Division: 80$ Division: 80$
Financial Management
Entity Close Intercompany Consolidation Disclosure
Accounting Accounting
Financial Steering Model (Universal Journal)
Profitability Analysis
Added value of Profitability Analysis integrated in the
Universal Journal
Summary of enhancements
Integrated
profitability Costing-based
Capability Example analysis * COPA
Reconciliation Reconciliation of legal and management accounting and profitability, for example by
profit center  
Drilldown by profitability Drilldown by product and customer-related characteristics in COGS and revenues
characteristic from income within income statement  
statement
Profitability characteristic For unbilled revenues on WIP, customer wants to see the project, region, customer
on balance sheet items category  
Top-down distribution Distribute high-level costs to the relevant market segments to allow profitability
analysis  
Realignment After changes of profitability characteristic such as division, it is possible to derive
for historic data new values in margin analysis  
Cost of good sold Breakdown of COGS into fixed and variable, as well as different kind of costs such
(Cost component) split as material, administration and overhead costs  
(Actual costing scenario added with S/4HANA 1809)
Production variance split Distinguish variances in costs of producing materials by price, quantity or
scrap variances  
Statistical sales conditions Sales conditions can be used to calculate contribution margin level, such as sales
commissions, calculated freight or discounts, which are not posted in G/L (with  
S/4HANA 1809)
Incoming sales order entry Creation of a sales order item generates expected revenue and COGS entry in
profitability (with S/4HANA 1809, using predictive accounting logic)  
* For single product cost valuation only
Instant Margin Insight with S/4HANA
COGS Split
with actual Costing
Statistical
Sales Conditions
 Multi-dimensional
reporting based
on Universal
Incoming
Journal
Sales Orders
 Reconciled by
nature
 Real-time
Universal Allocation
Motivation of Universal Allocation
Problem Statement – Why do we need a Change?
Organizations struggle Analyst struggle Lack of Lack of

top understand their to answer simulation state-of-the-art
allocation process allocation questions capabilities visualizations
 Complex organization  How did this cost get  How would the result look  Limited standard reporting
structures requiring allocated to my area? like in case we merge two  ERP transactions only
multiple views (Traceability – billed in vs legal entities? based on one cycle at a
(stewardship vs allocated)  Customers want to time
business unit)  How do amounts flow understand and identify  Difficult to explore the
 Legal and industry across the chain of cycles possible financial effects of allocation structure
challenges and segments? changes allocation rules holistically
 High number of cycles  Are the tracing factors on the their financial data
 Simply process with
segments (copy plan to reliable? (SFK/activity  Tool are bound by guided procedures,
actual) type) operational requirements reducing effort of
 Long cycle runtime  Why am I accountable for (year-to-date problem) knowledge transfer
 Complex knowledge this? (controllable drivers)
required
 Dynamic organization
boundaries
Outlook
Prototype for Cost Object Analysis
Example Scenario
You’re manager, who is responsible for
a Cost Center. You want to answer the
following questions:
Who is allocating which cost to me?

See the original Cost Centers that
are sending you costs via allocations
Which tracing factor is used?

On which basis is the cost amount
calculated (e.g. headcount or sqm)
To whom do I send which cost?

Comprehend to which receivers you
send cost on which basis
Machine Learning & Accrual
Management
Machine Learning – Cash Application
Intelligent receivables automation powered by S/4HANA 1809 Machine Learning
History
Matching proposals &
Payments
Cash Application automated payment
Invoices
Machine Learning clearing
Payment Advices
SAP Cash Application intelligently learns matching criteria from

your history, reads and processes payment advice documents,
and automatically clears payments with minimal intervention.
Drastically reduce
Allows shared services
Improves days Seamlessly integrated manual effort, focus
to scale as the
sales outstanding with SAP S/4HANA on strategic tasks
business grows
and service quality
Machine Learning – GR/IR
The goal of the ML service is to learn from decisions taken in the past, to apply the learned
knowledge to the new business situation and to make recommendations for the next meaningful
steps for each purchase order item.
The recommendations from the algorithm are seamlessly integrated in the UI.
GR Yes Automatic
equals
Clearing
IR
Goods and Invoice Receipts
posted to a Purchase Order No
Recommend the best next action based on

similar decisions made in the past
Recommendation Service
Automatic GR/IR Automatic

Write-Off
Clearing Postings Clearing
Investigation & Decision
Machine Learning – Accrual Process
Purchase SAP S/4HANA for Accruals Management

Orders
Unified accrual
Manual data structure
Accruals
Multiple Calculate Review Post

Journal
Sources Entry
Spread-
Accrual
sheets  Unified User Experience
Object
 Transparent Reporting, Analytics
....  Auditability
Treasury
What’s new in 1809?
Cash Management
Bank fee importing and reporting
Import the ISO 20022 camt.086 format bank fee file into the system and provide the cash manager with a comprehensive view of the services
provided by banks and the charges paid to banks
 Import Bank Services Billing Files
 Monitor Bank Fees
 Manage bank fee condition
Snapshot of historic cash position
 Cash manager to retain a historic snapshot of the cash position report for comparison with
the current view
 Ability to compare yesterday’s historic cash position with today’s view to reveal the differences
in actual and to optimize the future cash disposition for investment or financing
Enhance the liquidity forecast through integration of real estate data
Provide the cash manager with an enhanced, more comprehensive forecast of cash data by including cash flow information from contract and leasing
management
 Tap into business operations to provide an indication of future cash flow to the customer who uses contract and leasing management, even before it
is booked in accounting
 Integrate the cash report with future flows
Correspondence from bank account management
 Generation of correspondence to banks based on opening, changing, and closing activities in bank account management
Analytics
S/4HANA Analytics
What’s new in 1809
With 1809 release, new FIORI APPS are Analytics / BI (user)

deployed by SAP: DATA
Aggregate Visualize
 Accounts Payable Overview
 Accounts Receivable Overview
 Asset Accounting Overview
 …
Predictive Analysis (SAP)
It was also introduced the possibility to use

Embedded machine learning to perform Train model
simple prediction like trending or forecasting

(on simple model). Prepare data Apply model
Algorithm used should be low cpu Monitor

demanded. Propose/
make decision
Planning: What has changed
Before Now
Standalone planning
application in the Cloud Analytics Cloud
(SaaS)
Standalone planning
Standalone on premise and with SAP S/4HANA Analytics Cloud
application BPC (all Versions)
and other Cloud apps
Planning application Customers requiring an

BPC Optimized on premise solution BPC*
embedded within S/4HANA
(on premise)
Planning application
embedded within S/4HANA N/A
Cloud and other Cloud apps
*BPC optimized can still be used for real-time planning on SAP S/4HANA on premise and BPC for BW/4HANA is recommended for standalone on premise deployments
Central Finance
What is SAP Central Finance
Customers with heterogeneous system landscapes or even single system landscapes with limitations to adopt innovations
quickly (out of maintenance, heavily customized) can take advantage of the Central Finance deployment approach of SAP
S/4HANA that allows companies to replicate (re-post) financial transactions from several source systems into a single instance
of SAP S/4HANA.
Operational ERP Systems Central Financial System Customers can benefit from:
Local Financial Processes executed Each Operational Systems
in Each System Financial Data Pass into Central Finance  The latest reporting innovations and
architectural simplification
 Gain data access to better
consolidation entity reporting
 Leverage on modern central process
01 Operational ERP System
execution capabilities (Warehouse
Mapping shipping, Warehouse receiving, Payroll,
Treasury)
Central  Non-disruptive implementation which

02 Operational ERP System Finance System allows to leave existing systems widely
unchanged, taking advantage from a
harmonized data environment that
supports financial reporting, planning
and standardized corporate processes
03 Operational ERP System
Frequently Asked Questions (FAQ) are
gathered in the SAP Note 2184567
S/4HANA Central Finance Overview
In a distributed landscape what a CFO wants?
Common
meaning of the
data model
across the
systems
Synthesis Language Centralization

 Statutory Reporting
 High level Managerial
Standardization
Reporting
 Chart of account  KPI and analytics
 Controlling model  Operative Reporting:
 Master Data Account Payable and
Single source Wording
Organization  Account Receivable
of truth
 Business  Centralized Process and
shared services
 Organizational
Structure and
organization
S/4HANA Central Finance Overview
Understanding the SAP S/4HANA Central Finance – Use Cases
 Platform and Playbook

(repeatable onboarding script)
for non-organic growth
Mergers & Acquisitions
 Cross-system SAP capabilities like

 Start moving away from credit, intercompany, treasury, shared
on premise installations services on can be consolidated on one
Central Finance instance
Move to the cloud Instance consolidation

Innovate now
 Consolidate, harmonize
data on the fly, update  Migrate and decommission
enterprise structures  Central Tax Reporting, selected existing SAP and
across SAP and non-SAP Central Project, Enhancement non-SAP ERP systems
ERP systems like Oracle, S/4 HANA 1809
PeopleSoft, or JD Edwards
SAP and non-SAP System consolidation
Competitor’s non-SAP and SAP Subsidiary onboarding
 Provide SAP value to  Platform to on-board

Competitor-only environments smaller entities or subsidiaries
Key Contacts
Key Contacts
Sergio Di Molfetta Giovanni Nigro Pietro Folonari Marilena Resta Alessandro Negro
Italy CoE Finance
Lead & Finance Expert Finance Expert Controlling Expert BI/BW Expert
Europe Finance
Offer Lead
sergio.dimolfetta@capgemini.com giovanni.nigro@capgemini.com pietro.folonari@capgemini.com marilena.resta@capgemini.com alessandro.negro@capgemini.com
+393428721761 +393402564833 +393440960422 +393483767122 +393428405229
About Capgemini
A global leader in consulting, technology services and digital transformation,
Capgemini is at the forefront of innovation to address the entire breadth of clients’
opportunities in the evolving world of cloud, digital and platforms. Building on its
strong 50-year heritage and deep industry-specific expertise, Capgemini enables
organizations to realize their business ambitions through an array of services from
strategy to operations. Capgemini is driven by the conviction that the business
value of technology comes from and through people. It is a multicultural company
of 200,000 team members in over 40 countries. The Group reported 2017 global
revenues of EUR 12.8 billion.
Learn more about us at
www.capgemini.com
This presentation contains information that may be privileged or confidential

and is the property of the Capgemini Group.
Copyright © 2019 Capgemini. All rights reserved.

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Introduction to

Digital Finance with

1 Enable the Digital Transformation

2 S/4HANA Finance 1809

© Capgemini 2017. All rights reserved | 4

SAP S/4HANA is an entirely new

SAP S/4HANA signals a move SAP S/4HANA is a non-

© Capgemini 2017. All rights reserved | 7

Faster Entity Close Audit Trail,

Global Game Plan for

Automated Closing Task, Collaboration,

Legal view focuses on inter

Group view focuses on

Profit Center view focuses on

Company 1 Company 2 Company 3

50$ Division 1 Legal:70 $ Legal:70 $ Division 2 Legal: 90$ 100$

Financial Steering Model (Universal Journal)

Organizations struggle Analyst struggle Lack of Lack of

Who is allocating which cost to me?

Which tracing factor is used?

To whom do I send which cost?

Intelligent receivables automation powered by S/4HANA 1809 Machine Learning

SAP Cash Application intelligently learns matching criteria from

Recommend the best next action based on

Automatic GR/IR Automatic

Purchase SAP S/4HANA for Accruals Management

Multiple Calculate Review Post

With 1809 release, new FIORI APPS are Analytics / BI (user)

It was also introduced the possibility to use

simple prediction like trending or forecasting

Algorithm used should be low cpu Monitor

Planning application Customers requiring an

Central  Non-disruptive implementation which

Synthesis Language Centralization

 Platform and Playbook

 Cross-system SAP capabilities like

Move to the cloud Instance consolidation

Competitor’s non-SAP and SAP Subsidiary onboarding

 Provide SAP value to  Platform to on-board

+393428721761 +393402564833 +393440960422 +393483767122 +393428405229

Learn more about us at

This presentation contains information that may be privileged or confidential

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