SAP S/4 HANA – Central Finance

Overview of SAP Central Finance:

Central Finance is there in the market for a long while, presently moreover it very well may be viewed as a way to deal with embrace SAP S/4HANA. It empowered FI records to be imitated in another Central Finance framework that running on S/4HANA. Central Finance is pertinent in an association where there are numerous more established SAP ERP cases or other Non-SAP Finance applications.

Central Finance exploits the capacities of HANA, for example, continuous, speed and dexterity to reproduce money related archives into the central framework, giving a constant association-wide monetary view. To put it plainly, Central Finance enables you to make a typical announcing structure for an association.

SAP Central Finance Features:

1.You can utilize the Central fund to fit master data and repeat posting

2. You can outline data from a few source frameworks (SAP and Non-SAP) to blend master data in the Central finance system either physically or utilizing SAP MDG.

3. For empowering the exchange of data between your source system and Central finance, you have to keep up a mapping that characterizes the connection between data in the source system (SAP and Non-SAP) and data in Central finance. Mapping is utilized during the underlying burden and everyday value-based data moving to the Central finance system.

4. Profitability segment data of bookkeeping documents can likewise be moved to the central finance system. ACDOCA is refreshed with a gainfulness document number and writing about PA can be accomplished in the central finance system.

5. Intercompany Reconciliation with Central Finance: AR and AP are recreated into Central Finance, intercompany Reconciliation (ICR) can get to these receivables and payables legitimately in the Central Finance system. ICR is good with the central finance system.

6. Documents Relationship Browser: Using the Documents relationship program, you can see the documents stream of an FI document and can get to the all connection document (CO, SD, MM) in the source system.

• All documents identified with an exchange are accessible in the document relationship program, gave the source system is an SAP system.
• The documents can be explored in a relationship program; you can utilize the following transaction: Controlling Documents: Actual (KSB5), at that point pick àEnvironmentàRelationship Browser àDisplay Document (FB03), at that point pick à Environment Document Environment à relationship Browser

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7. Harmonized Financial Reporting: Central Finance system gathers data from an alternate system and gives blended announcing in a single system

The picture below shows how data is replicated from the source systems to the S/4 HANA Central Finance system:

Following interfaces feed data to central finance system:

• An interface for reposting Financial Accounting/Management Accounting (FI/CO) postings
• An interface for reposting optional CO postings
• An interface for cost object mapping

8. Integrated Business Planning: Integrated Business Planning for SAP S/4 HANA, on-premise version (IBP) can be joined with S/4 HANA Central Finance to give a central and steady perspective on the planning procedure.

IBP covers the accompanying:

• Cost planning
• Profitability planning
• Profit and Loss planning

Central Finance Challenges:

1.Cost of Acquisition: From a business point of view there is a test around how to legitimize the extra cost related to a Central finance approach. There would be two systems racing to reflect money related exchanges.

2. Technical Challenge: Maintenance for the central finance system and the existing source system; various different segments are fundamental; including the SLT server, just as related updates to the source frameworks/system.

3. Clear Master Data Governance Strategy and ability plan is constantly a difficult errand for the organization.

Want to know about the Advantages and Challenges in Adopting the SAP S/4HANA Central Finance Approach? Check this out.

Integration with SAP & Non-SAP Systems with S/4 HANA Central Finance System:

The image underneath shows how the system incorporates with one another.

Note1: Central Finance system can be utilized out-of-the-case, for that client who is still in support, for example, SAP ERP 6.0. or on the other hand onwards.

Note2: Releases, for example, SAP R/3 4.6C to SAP ERP 5 are as yet conceivable; for this unique assistance or talk with SAP would be required.

SAP Central Finance Landscape

1. SAP S/4 HANA Finance and Central Finance can be utilized with SAP Landscape Transformation Replication Server (SLT) and SAP Master Data Governance (SAP MDG).
2. The SLT server gathers data kept in touch with the database in the source system and feeds this data into the comparing Central Finance Accounting interface.
3. After the data is mapped, the system utilizes mistakes dealing with to log the subtleties of any blunders experienced. You can decide to make remedies and repost the thing or procedure the thing again after, for instance, you right the mapping rule of changing wrong qualities in the record.
4. The inside accounting interface sends the financial accounting (FI)/ Management Accounting (CO) record to SAP S/4 HANA as a widespread diary section.
5. After the data is mapped, the system utilizes mistakes dealing with to log the subtleties of any blunders experienced. You can decide to make revisions and repost the thing or procedure the thing again after, for instance, you correct the mapping rule or modify off base qualities in the record

Licenses to utilize SAP Central Finance:

• Central Finance – and an Obviously separate permit
• SAP Landscape Transformation Replication Server – a separate permit
• SAP MDG pulls in a Separate permit as well. It’s not compulsory but rather it is especially suggested as the manual treatment of mapping of the master data is mammoth work.
• Source Systems with an outsider Database with a Runtime License

Technical/Functional Information:

1.You need to actuate the Central Finance (FINS_CFIN) business work.

2. You have initiated the accompanying business capacities for error amendment:

• Error Correction System (Reversible) (FIN_GL_ERR_CORR)
• Error Correction and Suspense Accounting (Reversible) (FIN_GL_ERR_CORR_SUSP)

3. Required customization/design for Central Finance should be done under Financial Accounting (New). It is on a par with you do the design for any organization code inside S/4 HANA from the Finance territory point of view.

4. You have to install the SAP LT Replication Server.

5. You need to introduce the accompanying SAP notes in your source framework

• 2111634
• 2108225
• 2115885

6. Central Accounting Interface is utilized to fit master data and duplicate postings

7. The system is related to the sender’s consistent system and sender record number in Central finance’s universal journal (ACDOCA).

8. Screen and Error Handling is finished with Transaction code/AIF/ERR

9. Master Data Governance (MDG) is finished with Transaction code/MDG_KM_MAINTAIN. It will lead you to the MDG FIORI screen as demonstrated as follows.

Suggestions:

• It is especially prescribed to utilize MDG since the manual treatment of mapping of the master daTA is mammoth work
• It is suggested that tax revealing should just be done from your source system instead of the Central Finance system.
• The central finance is, for the most part, utilized where the landscape is muddled, for example, associations that have distinctive ERP systems (SAP and Non-SAP) and association into mergers and acquisitions. central finance enables you to make a typical revealing structure.

Summary:

Central Finance speaks to a course to ERP framework union and relocation to SAP S/4HANA at generally safe. It conveys different advantages, be that as it may, there are different difficulties additionally (referenced above under challenge area).

Central Finance isn’t for all it is utilized where the scene is extremely muddled, for example, associations that have distinctive ERP frameworks (SAP and Non-SAP) and association into mergers and acquisitions. Central Finance enables you to make a typical detailing structure.