Re-imagining Finance in SAP S/4HANA

Paul Smitherman |

In our forthcoming webinar you will discover new ways of working in SAP S/4HANA that will make the Finance Manager role an essential partner in your organisation.

From day-to-day operational to strategy support, the ability to pro-actively steer the business with advanced analytics and predictive insights are changing the finance manager’s role.

How is this made possible? It’s thanks to the increasingly advanced tools and capability in SAP S/4HANA for Finance. Where real-time insight gave us the ability to reflect on what has happened, predictive insight is enabling us to predict the future.

Being able to predict the future is an important part of the Finance Manager’s evolving role and core to the business.

5 key innovations you should know about

The Foundations

The database architecture of SAP S/4HANA has been simplified by drastically reducing the number of tables within the system. This means the universal journal covering the general ledger, profitability analysis, controlling, asset accounting and inventory is all in one table making reporting and reconciling faster and easier, delivering 360° insights.

Consolidating these modules into one table has reduced the risk of discrepancies and variants between the different modules, freeing up some valuable time of the finance team who are no longer time-wasting on unnecessary admin tasks.

Thanks to the advanced capacity and speed of the simplified database model, the single table aggregates all the data in one place, providing multi-dimensional reporting almost immediately.

Management by exception

Standard and personalised KPIs are displayed on the home screen cockpit, using differentiating indicators, such as colour. This provides a single source of truth where exceptions are immediately flagged up. Whether the exception is a late customer payment or a DSO analysis, the finance team can drill down and focus on the exceptions that need managing straight away.

Simulation

With this feature the finance team can use simulations to predict the future. The accounting scope is extended by not only taking into account actual payments, such as invoice payments received from customers, but also quotations and sales orders. Predictive accounting at the step of quotation or sales order means the Finance Manager can anticipate future revenues and forward-looking treasury situation and insight.

Anticipation

Dedicated features enable you to consolidate figures at a group or centralised level, rather than inter-company, so the closing process is faster, more accurate and simpler. Decentralised financial administration​ previously caused many issues for month-end closing process but these new tools within SAP S/4HANA for Finance will reduce manual effort and closing times, as well as increasing proactive decision-making.

Extension

SAP S/4HANA for Finance has extended the scope of finance by adding dedicated cloud applications. For example, credit management is integrated, whether with the SOA People tool Ready4 Credit Management, or with SAP standard tools. Machine Learning apps also help the finance team to carry out cash reconciliations, and payment clearing.

To discover more detail, join our upcoming webinar ….

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