SAP Central Finance Offering Flexible Gateway to S/4HANA Financial Transformation

Numerous CFOs and various other firm leaders are currently grappling with the challenges of planning and executing their movement to S/4HANA. Everybody in the SAP community recognizes that adoption of S/4 will be mandatory by 2025 but a big percentage of firms are battling to determine where and how to begin – commonly causing “analysis paralysis”.

In most companies, the office of the CFO is expected to play a key leadership role because financing procedures are virtually intertwined with all other processes and roles throughout every organization. Therefore, a growing number of CFOs are exploring using SAP Central Finance as a key tool that can help implement their S/4HANA roadmaps while making it possible for an affordable step-by-step approach, together with seamless integration of disparate legacy ERP environments.

SAP Central Finance is a native S/4HANA application that can promote a quick transition by relocating existing financial functions into a real-time S/4HANA environment however maintaining traditional data connections intact as the change process moves forward. Since the heart of the Intelligent Business is naturally financial, it makes terrific feeling, to begin with, a technique such as Central Finance that enables you to transition key financing procedures initially– without causing unnecessary disturbance to other ERP activities.

Central Finance is created from scratch to function both as a fully integrated S/4HANA application and a multi-faceted, agnostic connector to legacy ERP environment.

Since Central Finance reaches deep into the line-item level of existing SAP and/or non-SAP finance procedures while offering real-time replication and data mapping into S/4HANA, it allows users to start operating in the S/4-enabled future atmosphere severing the connectivity with the past.

It is essential to bear in mind that Central Finance ignites all powers of S/4HANA, such as unified analytics, predictive modeling, simulation, accountancy, treasury, and compliance tools, along with the ability to roll-up and process huge amounts of data with a high level of dimensionality and transparency– all while maintaining live connectivity with legacy environments.

This implies that numerous source systems can be merged within a single S/4HANA atmosphere that is constantly upgraded through the dynamic connections with each legacy system. In effect, this lays a strong foundation for implementing Digital Core and Intelligent Enterprise without shedding the capability for drill-down and drill-back to line-item legacy data. It also offers a smooth unbroken audit path to all data along with accessibility to a wide range of S/4 analytics, financial modeling, reporting, and management capacities.

Central Finance helps cut through the perceived dilemma in many companies where they are trying to choose between extremely disruptive complete makeover migration approaches, entailing either facility “brownfield” customization or entirely new “greenfield” implementations.

Roll-out of S/4HANA using Central Finance allows a highly flexible general migration method, that can be incremental, iterative, and guided by each company’s unique priorities. That is extremely important. As an example, instead of a substantial 9-18 months “large bang” implementation strategy, companies can choose to follow a more manageable and less turbulent phased approach.

Initial set up and the launch of Central Finance can be accomplished in as little as 3-6 months, followed by a well-managed incremental process, such as carefully sequencing in new capacities quarterly basis.

This fast implementation is made possible because connecting Central Finance doesn’t require any modifications to the underlying source systems. The flexibility to quickly connect diverse finance systems can be specifically valuable for business with numerous legacy ERPs, globally distributed service units or various other complexities such as supporting growth-through-M & A tasks.

Conclusion

Basically, Central Finance gives firms the best of both worlds by providing a seamless bridge between the full capacities of the S/4 world on one end and maintaining a deep latency-free dynamic connection to all their legacy data on the other end.

Want to figure out more about SAP Central Finance, feel free to visit our website.

We at ZaranTech offer a self-paced online training program for SAP Central Finance, where individuals get trained on various aspects of SAP HANA including the migration and more.

Happy Learning!