The new Financial Closing Cockpit: Improve speed, accuracy, and compliance while reducing cost with new

add-on from SAP Sandeep Bagchi and Indrasen Avancha

NTT Data at a Glance

Worlds sixth largest IT Service provider & systems integrator Founded in 1967 in Japan as the technology arm of the NTT Group Over $15B in annual revenues 60,000 professionals operating in 36 countries Serving 80 of the Global Top 100 organizations Executing aggressive globalization strategy

NTT DATA Americas - at a Glance

over

1.4

billion

17,000
professionals
... sustained through client delivery excellence

$5B
Revenue

Annual Revenues

Ambition
and, expanding share of wallet through collaboration with NTT Group companies

Successful, long-term client relationships.

Balanced Industry Expertise

Services Manufacturing Communications and Media Financial Heath & Life Sciences Public Sector

55% of
Workforce in low cost locations

~500
Enterprise Clients

NTT DATA Americas - at a Glance

Fast Facts 6500+ SAP Professionals 2400+ SAP Professionals are part of NTT North America Organization Balanced delivery model: Onshore, near-shore, and offshore Key industries: Manufacturing (Discrete & Chemical) , Communications & Media, Life sciences, Prof Services, Hi-Tech, Public Sector and Distribution Tools and Accelerators for ERP Lifecycle management Balanced Delivery Footprint Resource Locations Additional Projects

Competencies
Applications ECC CRM SCM, SRM Financials EPM / GRC HCM Technology Netweaver BW/BI/ BOBJ MDM BASIS Security Platforms Mobility HANA Cloud ERP Tools Uptimizer Hot Pack Analyzer ArchivePac SPPED SCEA Achievements / Certifications
SW CMMi L5 and PCMMi L4 SAP Pinnacle Award : RUN SAP Certified Challenger in Gartner ERP MQ Leader in Forrester ERP report Process Aligned Competency

Finalist/Winner for last 5 years in a row.

5 SAP BAIO certified Solutions

Key Project Stats

More than 475 Implementations and 45+ Global roll outs 120+ Logistics Projects 675+ Upgrade planning and Analysis 225+ Upgrades 75 + Application Management & Support 100+ Advisory Services Engagements and 75+ optimization Projects

SAP Gold Partner

excellence (PACE by SAP) approach

Recognized as LEADER by Forrester in the SAP Service Providers wave report 2011 Forrester Q1-11 IT Service Providers

Learning Points

Financial Closing Cockpit solution from SAP to accelerate an accurate financial closing cycle, generate accurate financial reports, increase automation, visibility, and control of regulatory financial statements An integrated System of Records with System for Reporting to ensure timely and accurate financial statements to the stakeholders A full suite of add-on technology and products for SAP customers to make the closing process faster

Anticipated Benefits with Closing Cockpit

Increased efficiency and productivity during Close

(Through improved coordination and collaboration)

~ 20% ~ 20% ~ 15% ~ 15% ~ 15%

Improved control through standard reporting Less maintenance and IT administration

(Single-product solution and web-based administration)

Reduced time for report data collection/distribution Reduced need for resource cost and time during close
(Through improved automation and task dependencies/validations)

Based on SAP benchmark studies combined with our experiences

Best Practices
End-to-end best practices to streamline financial close; coordinated processes across SAP and non-SAP systems FOREX Valuation, Closing preparation
SAP GL ; SAP CPS

Global and Local Closing

Financial Closing Cockpit; SAP CPS

Intercompany Eliminations
SAP BOBJ Intercompany

Consolidation
BPC; SAP CPS

Internal Control and Access Control

SAP GRC

Analysis and Reporting

SAP BI / BW ; SAP CPS

Barriers to Financial Fast Close

Processes
Manual procedures Missing recon: FI & CO ledger Multiple requirements for GAAPs Tedious Intercompany Recon

Controls
Lack of overview of closing process Error detection is not real-time Coordination is not effective Pressure of regulations like SOX / IFRS / Internal Controls

Inadequate Audit trails

Systems
Decentralized IT systems Lack of process automation Lack of integration with source systems Dependency on e-mails/IM/Excel

Organization
Missing global plan for closing Lack of coordination Within HQ/Subsidiaries Between IT & Business Missing ownership within business teams

Long and frustrating closing process

Business need for Financial Fast Close

Process
Automated eliminations, consolidations, audit trails Increased compliance & adherence to both local and group accounting standards

Systems / Tech Controls

Integrated systems, automated mapping from entity to corporate accounts Increased efficiency through standardization & automation

Organization
Coordinated worldwide closing process Standardization Improved transparency & investor confidence Process Controls

IT Systems, Technology

Complete control & visibility over the close process Full cycle compliance monitoring and internal control

Organization

Optimization

Financial Fast Close

Financial Fast Close (FFC) solution integrates four different SAP applications to support an effective financial close:
Financial Closing Cockpit (FCC) for robust closing process in SAP ECC BW for reliable reporting and analysis of close CPS scheduler for greater automation and transparency BPC for efficient consolidation, financial reporting and analysis

Additional components from the SAP Business Analytics product line are layered into a holistic solution:
Disclosure Management Business Intelligence GRC Access and Risk assessment

Integrating the Closing Applications

Financial Fast Close Solution (leveraging SAP Applications ) helps entire finance organizations create an automated, standardized dashboard serving as a single point of control The overall solution increases the speed and reliability of the financial close by simplifying time-consuming, error-prone tasks, improving finance functions and processes

Financial Fast Close Overview

Faster Closure in ECC with FCC: Global game plan to execute, automate, monitor and analyze the closing tasks Improved transparency and reduced errors during transaction processing Reduced cycle time from weeks to days and therefore reduced TCO better utilization of resources.

Copyrght 2011 NTT DATA Group

1 2

Financial Fast Close Consolidation

Financial Consolidation (BPC) : User adopted MS Excel interface Process-centric for compliance Automation /standardization of intercompany eliminations and recurring entries Easily adapts to business changes/models and demand

Copyrght 2011 NTT DATA Group

1 3

Financial Fast Close Reporting

Financial Reporting (BI/BW/BPC) Single source for robust reporting and analysis of results. Immediate reporting after adjustments Operational review deck with key performance indicators for consistent assessment of metrics for investors

Copyrght 2011 NTT DATA Group

1 4

Financial Fast Close Solution Overview

SAP ECC BI/BW Reporting

CPS from Redwood

Enterprise Portal

Copyrght 2011 NTT DATA Group

1 5

What is Financial Closing Cockpit?

Closing Cycle in SAP ECC
Define Global Close Plan Prepare Local Close Execute Local Close Tasks Analyze Local Close Result Prepare Data for Consolidation

ERP-based application to plan, execute, automate, monitor and analyze the closing tasks Provides a global game plan perspective for the financial close Minimizes the process cycle time to close by providing complete visibility to the closing tasks Allows for easy integration with SAP BW/BI and Enterprise Portal for reporting and SAP BPC for Planning and Consolidation

Financial Closing Cockpit Evolution

SAP ERP EhP3
Web user interface Structuring of tasks into closing phases Remote Tasks execution via integration to SAP CPS Process Automation through SAP CPS Factory calendar

SAP ERP EhP4

Multiple calendars in the same template Web UI in NW Business Client Better reporting with real-time SAP NW BW queries Better Integration with SAP workflow Document upload functionality

SAP ERP EhP5

Mass change for Template ,Task-lists Transport of Template and its components Increased compliance

SAP ERP EhP6

Multiple attachments per task User-definable time zones Increased Performance

Better integration with SAP CPS New organization entity: Plant Responsibilities on folder level

Improved Integration with SAP CPS Enhanced Task-list creation/change Customer-defined fields on template and task level

Financial Closing Cockpit (FCC) Add-on 1.0

The add-on combines significant new capabilities on top of existing SAP ERP 6.0 EHP6 functionality Governance and Control Extended Authorization Central storage of log Audit trail for all changes to templates and task lists Efficiency Easy template maintenance (Upload / download) Improved usability (SAP GUI, Web UI harmonization, Other UI enhancements) Control Task execution with dependency view Easy monitoring and analysis of global tasks Upgrade monitor for existing customers

FCC Add-on 1.0: Improved Architecture

SAP Financial Closing Cockpit as a part of ECC 6X

SAP Financial Closing Cockpit Add-on 1.0 Installation options: NW or Business Suite Foundation Recommendation:
Source: SAP

Leverage ERP server with ECC

FCC Add-on 1.0: Improved Authorization

New

Old

FCC Add-on 1.0: Improved Audit Trail

Job Log, Spool Log and the history of execution logs are stored automatically and are accessible by PDF file even if out dated Log links are displayed in detailed format with run times/ID/time The feature applies to both SAP GUI and Web UI

FCC Add-on 1.0: Improved Efficiency

FCC Add-on 1.0: Improved Automation

The FCC Add-on uses Standard Variables from STVARV table as well as Custom Variables for closing jobs The availability of custom variables has significantly helped to improve the automation of jobs

FCC Add-on 1.0: Improved Task Automation

New Task Types introduced in FCC Allows to remotely connect and execute tasks in heterogeneous system without additional login

FCC : Improved Process Automation

SAP Central Process Scheduling: SAPs solution for the SAP NetWeaver platform to help companies manage, monitor, and execute business-critical processes from a central location Integration of SAP Central Process Scheduling with the FCC allows: Closing tasks in a multisystem landscape Event based execution Automation of the batch inputs Automation of transactions Extended management of variants and parameters Validation of task outputs

FCC: Automation through CPS

FINANCIAL CLOSING COCKPIT

FI/CO MM SD
SAP CPS REDWOOD FULLY INTEGRATED

SAP ERP

SAP CRM

OTHER SYSTEMS

SAP Net Weaver

SEAMLESS PROCESSESS SEAMLESS TECHNOLOGY PROCESS AUTOMATION SEAMLESS RESOURCES SEAMLESS INSIGHTS

CROSS SYSTEMS REMOTE CHAINS

REAL TIME INTEGRATED BUSINESS SOLUTION

Integration: ECC-BW-BPC
The BW process chain provides a means for bundling all the operations together (such as loading master data or transaction data from ECC) so the entire process can be automated, scheduled, and controlled BPC Data Manager packages are technically executed as a BW process chain

Source: SAP

Integration: Delta Processing

Financial Closing requires frequent data updates in the Reporting Application (BW/BPC) from the Transaction system - ECC SAP offers several options to accelerate the data loading speed to maintain the integrity of data between transaction and reporting application: Delta loading architecture Increasing load frequency Leveraging real-time background processing in SAP NetWeaver BW

Automation of Process Chain: ECC-BW-BPC

The completed BW process chain can be executed from BW by direct scheduling or by triggering other BW events (such as ECC to BW loads) Execution of the BW process chain by triggering from BPC is recommended

Automation of FX Rate: ECC-BW-BPC

Currency rates in ECC (TCURR data) could be by date whereas BPC rates are maintained by month In order to automate, maintaining one rate per month per currency in ECC is recommended DSO could be maintained in ECC based on TCURR table to get the rate for each month for the currency type DSO would update the rates systematically using the Data Manager package

Automation of IC Elimination: ECC-BW-BPC

The IC Elimination process could be automated using the following steps:
Importing Transaction Data in the Last Overwrite Mode Exporting IC Transactions to IC Model to do the following IC Booking IC matching IC Elimination: To eliminate all the IC transactions and make it zero during close

Intercompany Reconciliations

Time consuming and manual escalation process Responsibility of the HQ to resolve discrepancies
Source: SAP

Faster peer-to-peer intercompany reconciliation Allows HQs to monitor a collaborative matching process using centrally defined rules and FX

New Financial Close Suite

Comparative list of SAP products and solutions that make closing process faster, accurate, and less costly for organizations
Business Process SAP Solutions Classic GL, Closing Cockpit SAP ECC with Backline A/c Recon SAP EC-CS

Financial Accounting (GL FCC Add-on 1.0 & SAP and Sub Ledger) GL, SAP CPS Local Close Corporate Close Closing Governance and Internal Control Reporting FCC Add-on 1.0 & SAP GL, SAP CPS SAP BPC SAP GRC Solutions SAP BO/BI/BW

Crystal Reports

Key Learning

FCC should be a business project. The implementation is more effective when CFO or the Controller of the organization owns the project Account and plan for Change Management during the project implementation There is no integration of Financial Closing Cockpit other than via the Business Automation Enabler (BLE) SAP CPS Process automation is possible beyond Financial Close with SAP Central Process Scheduler (CPS) A considerable amount of time is required in designing a global plan for close. Start the design on paper/excel. Use upload tool for large templates

Key Learning..

Most significant time savings and cost reductions are possible with event driven scheduling and execution Integrate Closing Cockpit with BI/BW reports and Enterprise Portal to get the most of value additions FCc will need continuous analysis of the close activities and improvement to the Closing Templates / Tasks before the next period

Contact Information

Sandeep Bagchi
Director, SAP Solutions Email: Sandeep.Bagchi@NTTData.com SAP Ecohub for Fast Close Solution: http://ecohub.sap.com/catalog/#!solution:FinancialFastCloseServices

Indrasen Avancha
Manager, EPM Practice Email: Indrasen.Avancha@NTTData.com

THANK YOU FOR PARTICIPATING

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