4/14/2021 SAP e-book

Lesson: Understanding Use Cases for SAP S/4HANA Central Finance

● Intercompany reconciliation has turned from a batch process at month end, to a

process that can be executed during soft-close and small delta work, in order to
finalize closing.
● Accelerated and automated matching within the central finance instance, based on
the real-time replicated transactions from all connected ERP systems, and without
any batch jobs or loading latency (exception: a non-connected system might still
require separate data loading).
● Improved user experience, with enhanced data drill down and automated matching
criteria to reduce manual reconciliation effort.

Merger and Acquisition:

● Central finance as an integration point, instead of performing a full logistic and
financial migration, simplifies the integration of new entities, while offering agility and
flexibility.

Legal Entity does Business in Different Sectors:

● Centralized financial data of multiple company codes into a single entity in the central
finance system (even if these entities are currently managed in multiple ERP
systems), with no impact on the business operation teams.
● Every financial transaction from multiple local instances is instantly available in the
global management report in central finance.

Central Finance in SAP S/4HANA: Use Cases

Figure 11: Central Finance Landscape: Key Use Cases

The above figure lists potential scenarios, which can serve as an appropriate trigger to
suggest and identify the relevance of a central finance program.

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