Growing companies face the challenge of dealing with several heterogeneous ERP software systems. A decentralized software landscape does not support a global company, or one that strives to become global, in a sufficient way. Dealing with multiple international accounting principles and several languages and currencies, companies working internationally must work towards convergence of their financial and managerial accounting. A unified Finance System must be established in which all kind of reports are created form a single data source.
Central Finance is the option to use SAP S/4HANA Finance as a centralized system that consolidates complex system landscapes consisting of a large mix of SAP and other disparate systems. Central Finance is a business scenario centralizing financial data, harmonize processes and get better insight into the company’s performance. The central journal supporting the increased standardization imposed by international accounting principles and a strong flexible data design defines the Business Process Management Platform group-wide for Finance. As such it allows connecting the analytics environment of a corporate group with the values of the operational applications stored in the central journal.
The best starting point of Central Finance is the Central Journal option of SAP S/4HANA Finance, which is a central system for collecting accounting data. This establishes a single source of truth for group reporting, legal and managerial reporting. All accounting records from existing heterogeneous systems are replicated in real time into the single source of truth in SAP HANA, eliminating time lags between gathering data and gaining insight into that data.
After establishing a Central Journal for finance reporting, one next step can be central business planning and consolidation integrated on top of a central journal.
Semantic Design of Central Finance
Advising concepts and benefits of centralization and harmonization. Designing the holistic Central Journal and the Group Management concept on the basis of a Universal Journal. Advising which integration concept will be applied with regard to the merging of the data?
Advising which fundamental approach toward a centralized finance solution to be used per customer: Building the centralized finance system via the template approach which requires standardization and harmonization of all processes from the beginning, or standardize and harmonize one process and deploy SAP S/4HANA Finance in its Central Finance deployment option as a centralized system for this process.
Transformation and Harmonization of Disparate Financial Data
A decentralized software landscape requires complex adaptations to standardize and harmonize the disparate financial data for the group. To be able to automatically extract meaningful information out of the huge data quantities, the data will have to be transformed into usable knowledge. Of decisive importance in this respect are, besides a standardized data model, the business rules, which harmonize the data transfer in semantic, business-relevant as well as contents-related terms. Financial transfer is based on SAP Landscape Transformation Software which facilitates the harmonization of disparate financial data.