5 Benefits Using SAP Central Finance Deployment
If you are considering SAP Central Finance as a deployment option for S/4HANA Finance, it is a good idea to know how it works and what its capabilities are.
Don’t forget to check out the article called “Why Compliance Needs To Be At The Core Of Sap Central Finance” to have a better understanding of its meaning and its multiple uses!
This article also provides insight into why it is a good idea to take compliance into account when doing an SAP migration.
What is the Main Goal of SAP Central Finance?
The main goal of SAP Central Finance, which is a deployment model for SAP Simple Finance, is to take the most multi-faceted and complicated financial procedures and tasks, and then find out a way to make them a lot less complicated, making them easier to perform and thus consume less time.
Companies and organizations using the SAP Central Finance will receive many overt and subtle benefits from doing so. In this article, 5 leading benefits among these will be listed and detailed.
Hope you enjoy it!
Comes With Finance & Controlling Applications
SAP Central Finance, formerly known as the SAP Central Journal is both a product and a deployment selection for S/4HANA Finance that provides its users the Finance and Controlling applications, also shorthanded as FI / CO, for the rest of SAP enterprise resource planning as a support software via SAP Landscape Transformation, even short-handed as SLT replication.
SAP Central Finance is also a way to use S/4HANA Finance without disrupting the companies source SAP ERP systems already in existence, after installation of DMIS software component and SAP Notes.
Offers Smart Migration
It is possible to use SAP Central Finance as a practical and useful migration option as it is a flexible reporting platform and a shared services system for merges and acquisitions.
Considering combining and reformatting the data from these requires significant effort otherwise. Central Finance can be used as one physical document for real-time processing and analytics and merges both FI and CO into a single line item table for “Single Data Source” identified as the “Universal Journal” within the software.
Reduces Data Processing & Activities
SAP Central Finance can be used to directly replicate the accounting interface into the Universal Journal, which, in turn, reduce the need for batch processing, data replication, integration, and reconciliation activities. Master Data Governance handles data management, also shorthanded as MDG.
Reachable & Manageable
SAP Central Finance postings do have the same looks as an SAP ERP financial posting, but since it is linked back to the source system via reference to the document number key of the source document and sound system to which it belongs, it is more easily reachable. SAP Central Finance also takes advantage of solutions that already were managed centrally such as Financial Close Cockpit, Financial Supply Chain Management shorthanded as (FSCM), and Intercompany Reconciliation even short-handed as ICR.
Capable of Real-Time Replication
One of the better advantages of SAP Central Finance is real-time replication, which allows for simplified reporting, single source for consolidation, quick and painless non-disruptive migration to S/4HANA, and implementation of other central processes like – Central Payments, In house Cash for working Capital, Central Receivables.
Real-time replication option also allows for quicker migration and better compliance!
Movement of large companies and organizations usually take a very long period, in some cases years, and tax mandates will evolve during that period in almost every geographical region as more and more digitized options become available to tax collection agencies.
Standalone BW and BPC investments require data transfer via Batch Extract, Transform, and Load jobs. Also short-handed as ETL, while Central Finance is capable of real-time replication of FI/CO documents.
All of the various SAP software such as HANA Live, S/4HANA Analytics, SAP BW, and SAP BPC can be integrated in real-time at the document level with definite financial controls and integrity that is usually expected from the general ledger, in addition to error and correction handling prior to posting via Application Integration Framework, functionality also shorthanded as AIF.
SAP Simple Finance, which takes full advantage of the capabilities of the in-memory SAP HANA platform, offers customers multiple benefits. Among these are an IT architecture that aggregates data, a definite reduction in the need for performing reconciliation actions along with new, modernized user interfaces, clear transaction codes, and reports.
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