Smart Financials package 1.0 Overview March 20th 2014

Erwin Brandt – Product Management Financials

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Purpose of This Presentation

Give a high level overview about Smart Financials and how things fit together

Give a high level overview of the financial products

Give a high level overview what changed from a technical point of view

Give examples of new functionality in Financial Accounting and Controlling

Agenda SAP Board Strategy

Financial Product Offerings

Architectural Changes

New Functions (Financial Accounting/ Controlling)

Summary

SAP Board Strategy

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SAP‘s Strategic Focus

Simplifying our Offering on HANA

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Simplifying User Experience

Target

Financial Product Offerings

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Three Financial Offerings Today

AnyDB

Client

SAP Business Suite

SAP ERP

Finance

Business Suite

on SAP HANA

SAP HANA DB

SAP Business Suite

BW

SAP HANA DB

ERP Business Suite

Smart Financials

(Q1 2014)

…

Client

Smart Financials

BW

Ap

ps

EhP 7 EhP 7

Client

Any DB Based on InMemory Technology (e.g. HANA)

Finance Finance incl.

Accelerators

Apps

EhP 7

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Target: Non-Functional Values Smart Financials

This product will be perceived as new because of

Single source of truth e.g. same line item for FI and CO

Speed – no more batch, highly interactive e.g. Intercompany

Reconciliation ICR

UX desirable for new generation of users e.g. MySpend

Predictive instead of actuals only e.g. Forecasting

Implementation reduced to the minimum e.g. weeks instead of months

Adaptability of data consistently across all Finance e.g. customer

specific fields

Changes are continuous – and easy to do by business user e.g.

organization or process changes

Architectural Changes

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Smart Financials Non Functional Value Proposition

Data

Compression

Data

Throughput

Flexibility No

Reconciliation

Data are only stored once

(no totals and indices)

No replicated data =>

volume restricted to a minimum

Only one database table to be

updated => fast data throughput

Full Parallelization applied as

no data dependencies

(table locks)

Reconciliation build in

no aggregates

FICO Merge (OneDocument)

Data only stored physically once

As consequence, adaptions or

extensions done only at only place.

No additional persistencies – no data

migration or reconciliation

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Smart Financials - Simplified Architecture

ERP Financials before Smart Financials ERP Financials after Smart Financials

OLTP OLAP

Professional UI Casual UI

Transactional

Processing Analytical

Processing

Transactional Data Model

Redundant data:

Index and Total Tables

Document level data

AB

AP

Se

rve

r D

B

Analytical Data Model

ETL HA

NA

DB

OneDocument

OneExposure

Σ

VDM

Analytical

Processing

Transactional

Processing

AB

AP

Se

rve

r

Professional UI Casual UI

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Partition of Data Base

Hot

Frequently / Operative/ currently used data In main memory

Cold

Rarely used old data in slower storage

Smart Financials - Data Aging

Swap old data in "cheaper" storage of the database

Define a minimum life for account documents to determines the earliest period

after which FI documents can be moved to the cold database area.

New Functions

Smart Accounting

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Smart Financials - Areas of Functional Enhancements

Entire Financial Process Lifecycles on one HANA-Platform!

Today Backwards looking Forwards looking

Actuals (not yet booked) Accounting Plan

Accounting

Unified single point of

truth (non redundancy

and persistent totals)

Fast period close &

intra-month soft close

Increased flexibility

Reporting based on

real-time operational

data (no OLTP-OLAP

separation)

Financial Operations

New receivables

manager dashboard

Accelerated incoming

payment search

Real-time line item

browser for vendors

Accelerated GR/IR

clearing accounts

analysis

Decision Support/Cash

Smart Business

Dashboard for Cash

Management

Improved cash-position

forecast & liquidity plan

New data structure

for cash-flow pool

Planning

ERP Financials

embedded planning

HANA planning engine

for faster disaggregation

and allocations

Modern web-/xls-

based front-end

Process support by

process flows and status

control

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Unified Financial and Management Accounting

Real World

Process

e.g. Invoice

CO

Document

FI

Document

Totals & Indices

Financial Accounting

Totals & Indices

Management Account.

ERP Financials

any classic DB

Financials powered

by HANA

Stability

Processing

Analytics

Real World

Process

e.g. Invoice CO Document

FI Document

Flexibility

Processing

Totals for

Financial

Accounting

Totals for

Management

Accounting

HANA views on the fly

Pre-Defined Aggregates

Flexibility

Stability

Analytics

+ Higher Throughput

+ Reduced

Reconciliation

+ Higher Flexibility

+ Reduced Data

Volume

+ High Performance

− Data Redundancy

− Reconciliation Effort

− Minor Flexibility

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List of Obsolete Tables FICO (replaced by CDS views)

Index tables removed Aggregate tables removed

BSIS Index for G/L Accounts

BSAS Index for G/L Accounts (Cleared Items)

BSID Index for Customers

BSAD Index for Customers (Cleared Items)

BSIK Index for Vendors

BSAK Index for Vendors (Cleared Items)

FAGLBSIS Index for G/L Accounts – New G/L

FAGLBSAS Index for G/L Accounts – New G/L

(Cleared Items)

GLT0 General Ledger: Totals

FAGLFLEXT New General Ledger: Totals

KNC1 Customer master (transaction figures)

LFC1 Vendor master (transaction figures)

KNC3 Customer master (special G/L transaction

figures)

LFC3 Vendor master (special G/L transaction

figures)

COSS Cost Totals for Internal Postings

COSP Cost Totals for External Postings

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Smart Accounting - New COGS and WIP Analysis

Cost of Goods Sold (COGS)

Refinement of the posting mechanism for COGS is required to reflect the standard cost

component split on the G/L account and optional integration with account-based CO-PA.

Work in Progress (WIP)

WIP positions are now available very highly

granular based on the underlying primary

and secondary costs. The analysis is based

on linking GL WIP line items with settlement

line items via the order number in the GL

line item.

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Period Close in Product Cost Controlling

Code Pushdown

Select orders data

Loop each orders

Endloop

UI display

ABAP

Select valid orders

Do aggregation

Do calculation

DB update

UI display

ABAP

Select valid orders HANA

Select orders data

Do aggregation for

all orders

Old Code Pushdown

Loop aggregated data

Endloop

Do calculation

DB update

Summary

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Summary

Smart Financials fits perfectly into the SAP strategy

Smart Financials will become the the one and only offering for InMemory over

time

Smart Financials brings in new flexibility

Smart Financials brings in new integration capabilities

Smart Financials will change the game in Financials

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Thank you