SAP ERP Financials - eSell GmbH

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SAP ERP Financials Vision, Strategy & Roadmap Dr. Jens Baumann ERP Solution Management, SAP AG
SAP ERP Financials Vision, Strategy & Roadmap Dr. Jens Baumann ERP Solution Management, SAP AG

The New Responsibilities of Finance Transforming Finance with SAP ERP Financials SAP ERP 6.0 – A Platform for Innovation w/o Disruption Future Outlook

Everyday Challenges in Finance…

Increasing pressure to support the entire enterprise

Senior Management

“How can I help grow revenue and shareholder value?”

A/R and Collections

“How can we streamline payment processes?” Finance

“How can we reduce material and inventory costs?”

Supply Chain

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“How can we reduce the cost of financial compliance?” “How can I help LOBs understand their most important metrics?”

Business Managers

Auditors & Regulators

…that translate into technology priorities Streamlining processes and implementing tools that are used for decision making are the key priorities

Core processes and business support are the main technology priorities for the CFO Technology priorities of CFO* Percent of respondents citing as a priority

Gartner CFO system priorities through 2009 **

Automating routine finance processes

68

Implementing data analysis/ business intelligence applications

62

Supplying relevant finance data for a mgmt dashboard

61

Standardizing business & finance applications

Automate finance processes Implement shared service centers for finance services

Implement CPM applications

Implement Corporate performance management applications to provide the right systems to support strategic activities

Ensure consistency of financial & non financial data

Streamline information architecture that has strong data integration capabilities to address this requirement

57

Consolidating corporate databases

Other

Streamline transaction processing

43

1

Source: Sources: *Economist intelligence unit survey, April 2006 SAP AG 2007, Dr. Jens Baumann, Mastering SAP Financials / 4

**Gartner CFO system priorities through 2009, published August 2006

What Are the Principles of the SAP Strategy…?

Stable & Integrated Financial Management platform

Efficiency and Effectiveness in Finance

Enabling Innovations without disruption

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The New Responsibilities of Finance Transforming Finance with SAP ERP Financials SAP ERP 6.0 – A Platform for Innovation w/o Disruption Future Outlook

SAP’s Game Plan for Financial Management

Support Strategy, Ensure Compliance, and Improve Financial Operations

Drive Strategy and Growth Stakeholder Communication Strategy Management Budgeting and Planning Benchmarks and KPI’s Intangibles Management

Enhance Finance and IT Partnership Empower the Information Worker Deliver Financials capabilities at a lower cost and more flexibly Enable Innovation without Disruption

Ensure Compliance & Mitigate Risk Accounting and Tax Compliance Efficient Process Controls Risk Management Audit Support Performance Mgmt

Financial Reporting

Risk

Collections

Payments

Finance

Compliance

Governance

Treasury Accounting

Provide Excellence in Finance Operation Treasury Management Working Capital Optimization Fast Close Corporate Tax Optimization Shared Service Centers & BPO Post-Merger Integration

Support Excellence in Corporate Operations Travel Management Real Estate Management Talent Management & Leadership Dev. Strategic Sourcing and Procurement

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SAP’s Game Plan for Financial Management

Support Strategy, Ensure Compliance, and Improve Financial Operations

Drive Strategy and Growth Stakeholder Communication Strategy Management Budgeting and Planning Benchmarks and KPI’s Intangibles Management

Enhance Finance and IT Partnership Empower the Information Worker Deliver Financials capabilities at a lower cost and more flexibly Enable Innovation without Disruption

Ensure Compliance & Mitigate Risk Accounting and Tax Compliance Efficient Process Controls Risk Management Audit Support Performance Mgmt

Financial Reporting

Risk

Collections

Payments

Finance

Compliance

Governance

Treasury Accounting

Provide Excellence in Finance Operation Treasury Management Working Capital Optimization Fast Close Corporate Tax Optimization Shared Service Centers & BPO Post-Merger Integration

Support Excellence in Corporate Operations Travel Management Real Estate Management Talent Management & Leadership Dev. Strategic Sourcing and Procurement

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Corporate Performance Management Enabled by SAP Roles Manager Self Service Business Unit Analyst

Business Consolidation Legal Consolidation Management Consolidation

Long-Term Plan Financial Statements Cash Flow Mid-Term Plan Sales Headcount Budget Maintenance Cost …

Marketing

Operations

CEO & Board Sales

Finance

LOB EXECUTIVES (Strategic) MID-MANAGERS (Operational)

Performance Measurement Financial, Workforce & Operations Analytics xAPP Analytics Formatted Reporting SAP AG 2007, Dr. Jens Baumann, Mastering SAP Financials / 9

Strategy Management Balanced Scorecard Value Based Management

SAP’s Game Plan for Financial Management

Support Strategy, Ensure Compliance, and Improve Financial Operations

Drive Strategy and Growth

Ensure Compliance & Mitigate Risk

Stakeholder Communication Strategy Management Budgeting and Planning Benchmarks and KPI’s Intangibles Management Performance

Accounting and Tax Compliance Efficient Process Controls Risk Management Audit Support Financial Reporting

Mgmt

Enhance Finance and IT Partnership Empower the Information Worker Enable Innovation without Disruption Deliver Financials capabilities at lower costs

Risk

Collections

Payments

Finance

Compliance

Governance

Treasury Accounting

Provide Excellence in Finance Operation Treasury Management Working Capital Optimization Fast Close Corporate Tax Optimization Shared Service Centers & BPO Post-Merger Integration

Support Excellence in Corporate Operations Travel Management Real Estate Management Talent Management & Leadership Dev. Strategic Sourcing and Procurement

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SAP Solutions for Governance, Risk and Compliance Mgmt Providing the framework for an integrated approach to GRC

SAP Solutions for GRC Industry-Specific GRC

Enterprise wide GRC Framework

Cross-Industry GRC GRC Repository: Documentation and Monitoring

Standardize components

Risk Management Access Control

Global Trade

Environment

Process Control

Business Process Platform

Other Business Applications

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Automating Controls and Processes

SAP’s Game Plan for Financial Management

Support Strategy, Ensure Compliance, and Improve Financial Operations

Drive Strategy and Growth

Ensure Compliance & Mitigate Risk

Stakeholder Communication Strategy Management Budgeting and Planning Benchmarks and KPI’s Intangibles Management Performance

Accounting and Tax Compliance Efficient Process Controls Risk Management Audit Support Financial Reporting

Mgmt

Enhance Finance and IT Partnership Empower the Information Worker Enable Innovation without Disruption Deliver Financials capabilities at lower costs

Risk

Collections

Payments

Finance

Compliance

Governance

Treasury Accounting

Provide Excellence in Finance Operation Treasury Management Working Capital Optimization Fast Close Corporate Tax Optimization Shared Service Centers & BPO Post Merger Integration

Support Excellence in Corporate Operations Travel Management Real Estate Management Talent Management & Leadership Dev. Strategic Sourcing and Procurement

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Example: Financial Supply Chain Management - FSCM provides enhanced tools to improve Cash Flow and Cash Management - Choose from the following options according to your individual needs

Electronic bill presentment and payment

Credit management Check creditworthiness

Issue invoice

Forecast cash

Cash and liquidity management

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Finance working capital

Dispute management Collections management

Resolve disputes

Treasury and risk management

Collect cash

Settle & pay

Reconcile

In-house cash

SAP Solutions for Fast Close

Integrated Financial and Managerial Accounting (New GL in mySAP ERP)

Keep and balance multiple ledgers faster and more accurately

Document entry Accnt / SEG

Debit

------------------- A ---------- B

100

Credit

Rules-Based Accounting Document Split

60 40

Multi-dimensional balancing Accnt / SEG

Debit

---------- A ---------- B ---------- A ---------- B

60 40

Credit

60 40

New Benefits New GL GL Migration Migration Services BenefitsServices Fixed-price Fixed-price service service offerings offerings for for different migration scenarios different migration scenarios Acctg Unified Unified Financial Financial && Managerial Managerial Acctg Scenario-based New GL Support reporting rqmnts Scenario-based New GL migration migration Support of of multiple multiple reporting rqmnts cockpit cockpit Support Support of of Parallel Parallel Accounting Accounting Remote service sessions Remote service sessions including including Faster Close Faster Close data validation data validation Increased Increased transparency transparency Development Development support support including including 24h 24h Reduced TCO Reduced TCO support support on on production production weekend weekend SAP AG 2007, Dr. Jens Baumann, Mastering SAP Financials / 14

Local GAAP U.S. GAAP xxx xxx xxx

IFRS

xxx xxx xxx

xxx xxx xxx

Multi-dimensional

Multiple Valuation

Parallel Ledgers

SAP Solutions for Fast Close

Example: The Closing Cockpit in SAP ERP

The Closing Cockpit adds business value because it Supports standardization across closing periods and subsidiaries Accelerates the closing process and strongly improves user productivity by unique access, automation, and collaboration Creates transparency and supports compliance by providing a perfect overview of the closing status and drilldown to all details SAP AG 2007, Dr. Jens Baumann, Mastering SAP Financials / 15

SAP’s Game Plan for Financial Management

Support Strategy, Ensure Compliance, and Improve Financial Operations

Drive Strategy and Growth

Ensure Compliance & Mitigate Risk

Stakeholder Communication Strategy Management Budgeting and Planning Benchmarks and KPI’s Intangibles Management Performance

Accounting and Tax Compliance Efficient Process Controls Risk Management Audit Support Financial Reporting

Mgmt

Enhance Finance and IT Partnership Empower the Information Worker Enable Innovation without Disruption Deliver Financials capabilities at lower costs

Risk

Collections

Payments

Finance

Compliance

Governance

Treasury Accounting

Provide Excellence in Finance Operation Treasury Management Working Capital Optimization Fast Close Corporate Tax Optimization Shared Service Centers & BPO Post-Merger Integration

Support Excellence in Corporate Operations Travel Management Real Estate Management Talent Management & Leadership Dev. Strategic Sourcing and Procurement

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Example: SAP Travel Management – People Centric People Centricity We offer different user interfaces, YOU decide which ones to use. Voice

Duet

Mobile Devices

New Mobile T&T

New / Classic UI: WebD. SAPGui

SAP NetWeaver/SOA

Travel Management in mySAP ERP (Travel Request, Travel Planning, Travel Expense)

Use the User Interface you need, based on best-in-class technology You have the choice between Web UI, Offline Solution, PDA and Blackberry support, Voice integration, and even Microsoft Office integration SAP AG 2007, Dr. Jens Baumann, Mastering SAP Financials / 17

SAP Travel Management – People Centric (Duet) Make travel reservations through Microsoft Office (mySAP ERP) Employee: Submit travel requests Search travel options Recreate past travel itineraries Manager: Approve / Reject travel requests View travel and budget reports

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Key Benefits: Reduce travel processing operating costs Improve corporate travel policy compliance

SAP’s Game Plan for Financial Management

Support Strategy, Ensure Compliance, and Improve Financial Operations

Drive Strategy and Growth

Ensure Compliance & Mitigate Risk

Stakeholder Communication Strategy Management Budgeting and Planning Benchmarks and KPI’s Intangibles Management Performance

Accounting and Tax Compliance Efficient Process Controls Risk Management Audit Support Financial Reporting

Mgmt

Enhance Finance and IT Partnership Empower the Information Worker Deliver Financials capabilities at a lower cost Enable Innovation without Disruption

Risk

Collections

Payments

Finance

Compliance

Governance

Treasury Accounting

Provide Excellence in Finance Operation Treasury Management Working Capital Optimization Fast Close Corporate Tax Optimization Shared Service Centers & BPO Post-Merger Integration

Support Excellence in Corporate Operations Travel Management Real Estate Management Talent Management & Leadership Dev. Strategic Sourcing and Procurement

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Simplifying the User Interface… Simple access in a familiar environment

NEW

Portal and Work Centers

Adobe Forms

SAP NetWeaver Busines Client

Simple form based processing

streamlined system access

Analytics Job oriented and personalized information

Intuitive productivity

Duet

Mobile & Voice

Integrated access through MS-Office

mobile access

Individual User interfaces complementing SAP GUI SAP AG 2007, Dr. Jens Baumann, Mastering SAP Financials / 20

SAP Solutions for Analysis, Reporting and Actionable Analytics

New BEx

Drag&Drop with BEx

Formatted Reporting

Reporting View

BI Accelerator

Visual Composer

BI Accelerator SAP xApp Analytics

Drag&Drop in Web and Excel

Native formatted reporting

Instant response time

Rich user experience

New filtering mechanism

Report bursting

Simplified data modeling

Easy model creation / adoption

Web printing via PDF

Hierarchy support

Lowered cost of operations

Fully embedded Adobe Flex (OEM)

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DEMO Financial Reporting with SAP ERP 6.0

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End of DEMO Financial Reporting

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The New Responsibilities of Finance Transforming Finance with SAP ERP Financials SAP ERP 6.0 – A Platform for Innovation w/o Disruption Future Outlook

Modernizing the Core The CIO dilemma



Once my system is up and running, you can touch my core processes once every 5 years ...

and it needs to be a Saturday …

and my CEO wants me to innovate every quarter”

CIO, Fortune 1000 Manufacturing Company

SAP AG 2007, Dr. Jens Baumann, Mastering SAP Financials / 67

SAP ERP

Enhanced and Integrated Business Processes

Human Capital Management

Financials Simplified reporting and CPM

Integrated talent management

New General Ledger

Succession management

Credit Management

Support for HR shared services

e-Invoicing, Collections

Expanded roles and self-services

Logistics and Operations

Corporate Services

Simplified sales order entry

Real-estate and property management End-to-end travel management Enterprise asset management

Services procurement SAP xApps integration

Platform Solutions Industry “switch framework” Enterprise services bundles Integrated business intelligence Eco-system of partner solutions

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Additional roles: sales, buyers

SAP ERP

Delivering predictability enhancements and innovation

2005

2006

2007

2008

2009

2010

Enhancement Packages

Next Suite Release

SAP ERP 6.0 SAP NetWeaver

Customers Adopt Innovation at their Pace Process and User Interface Simplification

Industry-Specific Enhancements

Enterprise SOA

Cross-Industry Enhancements

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Enhancement Packages

Enabling customer to adopt innovation at their pace

Enhancement Packages Optional

Enterprise Services

Switch Framework New/Improved Functionality

Support Packages

Legal/Tax Changes, Corrections

Mandatory

SAP AG 2007, Dr. Jens Baumann, Mastering SAP Financials / 70

ERP Enhancement Packages – Innovation w/o disruption Installation of new functionality separated from activation via Business Functions

EA* or Industry Extensions

Plug & Stay No UI or process changes by installation due to new functions “behind” Business Functions NetWeaver integration hubs (BI, XI, PI,…) stay on same NW release (NetWeaver 2004s)

ECC

Stability System will behave as before if no Business Function is activated System will only change in areas where Business Functions are activated Enhancement Packages contain most current Support Package level from underlying / corresponding ERP 2005 release

Activate & Play Usual regression test and modification adjustment efforts due to incorporated Support Package Stack but… …reduced training efforts for new functionality due to only selective UI and process changes by activated business functions Test case templates for new functionality available (structured by business function) to support efficient testing by the customer for new / changed functionality

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Upgrading to SAP ERP

Low Risk, Clear Value, Profound Opportunity

More than 3,000 live customers on SAP ERP 6.0 !

92% of upgrade projects are completed in a timely fashion 86% of upgrade projects meet or exceed functional enhancement expectations

Source: May 2006 Best Practices Survey: SAP / ASUG Benchmarking Results: Aggregate Findings Report SAP AG 2007, Dr. Jens Baumann, Mastering SAP Financials / 72

The New Responsibilities of Finance Transforming Finance with SAP ERP Financials SAP ERP 6.0 – A Platform for Innovation w/o Disruption Future Outlook

Legal Disclaimer This presentation is not subject to your license agreement or any other agreement with SAP. SAP has no obligation to pursue any course of business outlined in this presentation or to develop or release any functionality mentioned in this presentation. This presentation and SAP's strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. SAP assumes no responsibility for errors or omissions in this document, except if such damages were caused by SAP intentionally or grossly negligent.

SAP AG 2007, Dr. Jens Baumann, Mastering SAP Financials / 74

ERP Enhancement Packages – Content Concept SAP plans to deliver multiple enhancement packs over the next years. Areas covered by these enhancement packes could be as follows:

ENHANCEMENT PACKAGES

SIMPLIFICATION

ENTERPRISE SOA

FUNCTIONALITY

INDUSTRIES

Enh.P. 1

Enh.P. 2

Enh.P. 3

Enh.P. 4

Enh.P. 5

HCM Shared Services

Order To Cash

Procure To Pay

Attract To Perform

Accounting To Reporting

Adaptive Manufacturing

Order To Cash

Procure To Pay

Financial Shared Services

Credit and Collections

Learning

Fast Closing

Compensation

Treasury

Retail

Service Industries

Trading Industries

Discrete Industries

Process Industries

RTC since July 27 2007

SAP AG 2007, Dr. Jens Baumann, Mastering SAP Financials / 75

Enhancement Package 2 for SAP ERP: At a Glance Logistics Execution, Manufacturing Enable new developments related to supplier network collaboration in SAP Supply Chain Management 5.1 Inventory Lookup Integration of MES and QM Systems Various process enhancements in eSOA and industry enhancements

Order-to-Cash Simplification of order-to-cash processes by role "Internal Sales Representative": – New work-center view for incoming customer inquiries with order-status tracking, price and availability information – New user interfaces and POWER lists Enhancements in sales order management: – Search engine for material search as well as sales and billing documents – PDF-based print forms – Down payments based on document conditions

Financials Financial Supply Chain Management – Biller Direct – Dispute Management – Credit Management – Collections Management – Bank Relationship Management (including SWIFT integration) Business Planning and Consolidation – New Web User Interface – Multiperiod consolidation – Restatement support – Document and task approvals

Human Capital Management SAP Learning Solution – Standard support : AICC and SCORM2004 – Course program – Work center: instructor for teaching and tutoring – Partner integration of Adobe Connect HR shared services – Simplified process design – Enhanced integration with SAP ERecruiting – Integration enabled for employee interaction center – Additional services for ESS and MSS SAP AG 2007, Dr. Jens Baumann, Mastering SAP Financials / 76

Corporate Services

Industries Retail and wholesale Utilities Telecommunications Media Automotive Travel and transportation Aerospace and defense Mill products

SAP Travel Management – Travel request – Flexible and simplified process – Exchange infrastructure services Enterprise asset management – Enable new SAP xApp Mobile Asset Management (SAP xMAM) – Basic maintenance processing SAP Real Estate Management – Multicurrency handling – Employee assignment, move management, and room reservation

SAP Enhancement Package 2 for SAP ERP – ES Bundles Logistics Execution, Manufacturing Inventory lookup Batch traceability and analytics Integration of MES v2 Integration of quality management systems v2

Order to Cash

Financials SAP Bank Relationship Management

Customer fact sheet v2 Order to cash

Electronic bill presentment and payment v2 External cash desk

Service for Customer

Idea to Product

Customer service execution Internal service request (Duet)

Technical document management connectivity v2

Human Capital Management Absence employee time request (Duet) Benefits and compensation (Duet) Organizational management (Duet) Personnel administration (Duet)

Preview them** in www.sdn.sap.com

Corporate Services Industries Trade and commodity management Demand management v2 Advanced meter infrastructure (utilities)

Enterprise SOA

*Disclaimer: SAP reserves the right to change the ES bundles listed without further notice. **Some of the bundles listed on this page can be previewed in the ES Wiki. SAP AG 2007, Dr. Jens Baumann, Mastering SAP Financials / 77

ES Workplace

Travel management Asset configuration Maintenance processing Maintenance service collaboration

ES Wiki

Some FAQ’s

?

What’s the latest release?

SAP ERP 6.0

?

When was SAP ERP 6.0 generally available?

May 2006

?

How many customers are live on SAP ERP 6.0?

Over 3000

?

What’s the difference between SAP ERP 6.0 and R/3 4.6C?

Details: SAP Service Marketplace / Solution Browser

Detailed information on upgrading to SAP ERP is available on www.sap.com/erp. For more information about EHP2 and Ramp-Up: http://service.sap.com/rkt SAP AG 2007, Dr. Jens Baumann, Mastering SAP Financials / 78

Questions

SAP AG 2007, Dr. Jens Baumann, Mastering SAP Financials / 79

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