Companies need better finance tools to successfully compete in today’s world. Without the right tools, evaluating large amounts of financial data and turning it into meaningful reports is time consuming and may not even be possible. Reports also need to be available at the right time to support quick action.
S/4HANA Central Finance provides real-time data from SAP or Non–SAP systems by replicating data from those systems to the Central Finance system using the SAP Landscape Transformation Replication Server (SLT). TThis allows the creation of a common reporting structure to analyze all data from various sources. Master data such as GL accounts, profit centers, and cost centers are mapped to support data transfer. Central Finance’s table structure is based on Universal Journal postings that enables using Single Source of Truth. This allows Decision-makers a wide perspective to develop long–term business strategies.
S/4HANA Central Finance can be implemented On-Premise or on Cloud. Both implementation approaches will provide access on any device, instant insights, and a task-based, SAP Fiori interface. The cloud approach is becoming more popular due to the economic and fast adoption properties.
S/4HANA Central Finance Capabilities
- Allows you to centralize financial data from complex and, separate SAP or Non-SAP systems.
- Master data mapping can be done manually or with the SAP Master Data Governance (MDG) module.
- Harmonized Central Finance data can improve the efficiency and effectiveness of finance functions.
- Provides common reporting consolidation and real-time integration.
- Intercompany reconciliation (ICR) can be carried out with Central Finance.
- The document flow of an FI document from a source system to a final system can be seen with the document browser ability. The connection between related documents is discernible, at any time, which provides ease of error analyzing.
- Financial Close Cockpit, Intercompany Reconciliation (ICR), and Financial Supply Chain Management (FSCM) are parts of the Central Finance system. These functions benefit from the consolidated data from different source systems and these allows greater harmonization and standardization even with a complex company structure.
S/4HANA Central Finance Structure
S/4HANA Central Finance can be used with SAP Landscape Transformation Replication Server (SLT) and SAP Master Data Governance (MDG).
The SLT server allows data retrieval from the databases of other source systems and the capability of send this information into the relevant Central Finance interface.
The retrieved transactional data, stored in the Universal Journal entry table, provides accurate and real-time data for financial reports.
After the process of mapping master data, Central Finance enables error monitoring to keep records of any occurrence of errors. Any corrections or repost activities can be done through the error monitoring screen.
Monitoring and Error Handling is managed with the SAP Application Interface Framework (AIF) screen, which enables corrections and reposting of items. Items may, for example, be re-processed after correcting a mapping rule or adjusting incorrect values in the document.
S/4HANA Central Finance Use Cases
There are multiple use cases for Central Finance as a S/4HANA deployment option, with the unifying features allowing one or more legacy ERP’s to transfer financial data to Central Finance.
Where companies grow through big mergers and acquisitions, Central Finance can be used as a solution option with its flexibility. Companies don’t need to worry about incorporating various system types (both SAP and non-SAP) as consolidation can be achieved with Central Finance.