Total 13 videos

Overview of Central Finance Architecture:

Why we need central finance:

Earlier customers who have multiple system landscape load financial data from their system into various data warehouses. This is the only way to report on the figures of the entire company. To load data into the data warehouse, we need long-running batch jobs and regularly scheduled to extract data and transform it. This has multiple challenges like:

• Not happening in real-time but rather once a day or week.
• The data that a customer is looking at the data warehouse is never up to date.
• Require high reconciliation efforts.
• Data warehouse accepts data without checking whether it is correct or not

Many companies have a legacy of both SAP, and non-SAP, ERP systems. These systems have different release levels, different customizing specifications, and some even have different charts of accounts. To see all our consolidated reports in one system and it should be in real time. We must have central finance in place to get consolidated reports.

What is central finance:

SAP S/4HANA for central finance is an SAP S/4HANA system, receiving financial accounting transaction through real time replication from SAP or non-SAP ERP source system. Central finance replicates only financial transaction which covers financial accounting transaction, Controlling posting and cost objects. central finance establishes a central reporting platform for FI/CO with the option of creating a common reporting structure.

Business benefits of central finance:

The benefits offered by central finance are over with various options. They are namely as:

• Real time replication of all banks related open items into central fiancé provides global bank balances and cash positions as on date.
• Central finance offers the ability to drill down information to the source systems and provides full traceability of postings.
• The universal journal entry of central finance is a single dataset, across multiple applications. As a result, the time and effort required for reconciliation is reduced to zero. Data is available for instant reporting.
• 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

Central Finance Architecture:

Central Finance landscape architecture contains mainly 3 systems:

• The first system is the SAP ERP as the source system where the main business processes run, and FI and CO documents are posted
• The second system is the SAP SLT as the integration platform which reads and replicates the FI and CO documents.
• The third system is the SAP Central Finance as the target system on SAP S/4HANA where the FI and CO documents are re-posted.
• Central Finance is also able to replicate cost objects as pre-requisite for the FI and CO postings.