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SAP Financial Closing cockpit

Streamlining the Financial Close with SAP Financial Closing cockpit

2009-11-25 Linda Lehman SAP Svenska AB

Agenda

1. 2. 3. 4.

Financial Close Business Challenges SAP Financial Closing cockpit - Automation and Collaboration Demo Wrap Up

SAP 2009 / SAP Financial Closing cockpit Customer Presentation V.1 / Speaker Name / Page 2

The Financial Close Critical to Compliance Corporate governance imperatives require a greater control and supervision of the financial close and reporting cycle Financial Close Requirements
Transparency
Consistency and reliability of results Centralized control and monitoring Real-time error detection

Transparency
Compliance
Documentation of process for audit trial Enterprise-wide monitoring of closing status and delays Enhanced oversight of internal control

Efficiency

Compliance

Efficiency

Fast cycle time Fewer resources Significant cost savings

SAP 2009 / SAP Financial Closing cockpit Customer Presentation V.1 / Speaker Name / Page 3

Achieving Closing Excellence Our Major Principles

1. Insight Financial and operational

2. Collaboration Share common information


3. Automation Reduce manual processes

4. Control Exception-based management

5. IT Simplification One platform

SAP 2009 / SAP Financial Closing cockpit Client facing Detail Presentation V.5 / Ralph Schpfer / Page 4

Business Benefits From Optimized Closing Cycles


Business Benefits
Reduced costs of finance and compliance Increased investor confidence More time for making decisions based on

Some Benchmarks
Days to Close Annual Books
Best in Class Average 10,1

Staffing Levels (FTEs) per $Billion Revenues


G/L and Closing 10,2 Analysis and Reporting 9,8

reliable data
4,1 3,3

2,3

Source: ASUG Benchmarks 2006

Just as organizations have undertaken process automation in other operational areas of the business, so must finance now take a hard look at the financial reporting process. Enterprises will need to invest in efforts to institute reliable and sustainable processes that are automated with the help of technology. This frees finance for the value-added activities that organizations really need. IDC, 2006

SAP 2009 / SAP Financial Closing cockpit Customer Presentation V.1 / Speaker Name / Page 5

Barriers to a Financial Close 4 Areas of Risk

Missing Global Game plan for closing Email-driven communication of guidelines and deadlines

Manual Hands-on closing procedures Management vs. Legal Accounting 2 worlds

Lack of status overview of closing process Error detection late in the process Ineffective coordination

High potential of frustration

Fragmentation Spreadsheets Decentralized Database

Long close cycle times & high error potential & high cost It was so frustrating for staff to deal with all our inefficiencies that they had pretty much given up trying to be fast. CFO of a $26 billion oil and petrol-retail company

SAP 2009 / SAP Financial Closing cockpit Customer Presentation V.1 / Speaker Name / Page 6

SAP Enhanced Financial Close Breaking the Financial Close Barriers


Barriers

CFO Strategies
Ensure Reliable Reporting and Decision Support Monitor Closing Status centrally

SAP Software Solutions


SAP Enhanced Financial Close Solution Map

Insight & Control

Enterprise Performance Management Process Control Monitoring SAP Financial Closing cockpit

Organization

Define Closing Process centrally Provide Workflow and Coordination

SAP Financial Closing cockpit SAP BPC SAP Workflow Audit Information System SAP BPC Inter-company Reconciliation New General Ledger SAP NetWeaver Portal SAP NetWeaver BI and Analytics SAP ERP Financials SAP Business Objects Enterprise

Processes

Standardize and Automate Harmonize Legal and Management Accounting Establish 'Self-Auditing' Processes Integrate and Consolidate ERP Platforms Simplify user access

IT Systems

SAP 2009 / SAP Financial Closing cockpit Customer Presentation V.1 / Speaker Name / Page 7

Financial Close with SAP Driver of Savings and Benefits


Benchmarks from SAP's case studies and success stories % Impact
Operating Costs
Time to close books (cycle time) Financials staffing levels Reconciliation costs (e.g., data sources, legal accounting, management accounting, inter-company) Chart of Account maintenance Ledger maintenance costs Report data collection and distribution Internal and external audit costs (self-

Benefits of a streamlined financial close

25% - 45% 20% - 45% 50% - 80% 30% - 50% 20% - 40% 25% - 50% 10% - 20%

Improved control systems and processes at lower cost Greater quality and greater efficiency Faster access to financial information for decision making More time for value add financial analysis Ability to respond to management requests and support key initiatives Work-life balance for accounting staff

auditing processes)

World-class companies spend 45% less on their closing and reporting efforts than other companies and save 5.5 million for every 1B in revenue.

The Hackett Group

SAP 2009 / SAP Financial Closing cockpit Customer Presentation V.1 / Speaker Name / Page 8

Agenda

1. 2. 3. 4.

Financial Close Business Challenges SAP Financial Closing cockpit - Automation and Collaboration Demo Wrap Up

SAP 2009 / SAP Financial Closing cockpit Customer Presentation V.1 / Speaker Name / Page 9

SAP Financial Closing cockpit Providing the global game plan for the close
SAP Financial Closing cockpit

Supports standardization across closing periods and subsidiaries Accelerates the closing process and improves user productivity Creates transparency and supports compliance

Financial Closing cockpit

Audit Information System (AIS)

Valuation for Accounting

Closing Preparation

Local Close

Group Close

Audit Support
Data Retention Tool (DART)

Report

Intercompany reconciliation New General Ledger SAP BPC

Financial Analytics

SAP 2007 / Page 10

SAP Financial Closing cockpit Value Add for all Enterprises


Group Close
Corporate Management

Analyze Group Results


Corporate Finance

Corporate Finance

Consolidation & Audit


Collect Data from Subsidiaries

Local Accountants

SAP Financial Closing cockpit

Local Close on Subsidiary Level

Local Accountant

Submit Data Consolidation Prepare for Consolidation


Corporate Finance

Management

Analyze Local Close Results Execute Local Close Tasks Prepare Local Close

Monitor Close Globally

Local Accountants

Local Accountant

Corporate Finance

Define Global Plan for Close


SAP 2008 / SAP Financial Closing cockpit/ Janet Salmon / Page 11

SAP Financial Closing cockpit Concept of the Application

Plan

Analyze

SAP Financial Closing cockpit

Execute

Monitor

SAP 2008 / SAP Financial Closing cockpit/ Janet Salmon / Page 12

SAP Financial Closing cockpit Template - 1


Corporate Accounting Local Accountant GL Accountant Asset Accountant Cost Accountant

Define Global Plan for Close

Prepare Local Close

Execute Local Close Tasks

Analyze Local Close Results

Prepare Data for Consolidati on

Submit Data to Consolidat ion

The template contains all


default tasks related to the local close and a relative default schedule

Based on the milestones


defined for the global close the template defines the detailed schedule of the local close per subsidiary

Creation of templates can


even be organized under corporate responsibility to ensure a harmonized closing process across subsidiaries
SAP 2008 / SAP Financial Closing cockpit/ Janet Salmon / Page 13

SAP Financial Closing cockpit Default Project Plan


The template specifies the standard start time for each task with respect to a key date. It also contains the default duration for the task, based on experience in previous closes.

The template documents who is responsible for processing each close step

SAP 2009 / SAP Financial Closing cockpit Client facing Detail Presentation V.5 / Ralph Schpfer / Page 14

SAP Financial Closing cockpit Task List - 2


Corporate Accounting Local Accountant GL Accountant Asset Accountant Cost Accountant

Define Global Plan for Close

Prepare Local Close

Execute Local Close Tasks

Analyze Local Close Results

Prepare Data for Consolidati on

Submit Data to Consolidat ion

The task list contains all


tasks related to a concrete close cycle and the absolute schedule for the tasks

The task list is generated


from the template and adjusted according to the concrete closing cycle of the subsidiary

Generation of task lists can


even be organized under corporate responsibility to ensure a harmonized closing process across subsidiaries
SAP 2008 / SAP Financial Closing cockpit/ Janet Salmon / Page 15

SAP Financial Closing cockpit Scheduling based on Factory Calendar

Template: Factory Calendar and Variables

Task List: Key Dates for Variables Timeline in Web Application

Tasks with a negative offset are moved backwards if they fall on a non-working day
SAP 2009 / SAP Financial Closing cockpit Client facing Detail Presentation V.5 / Ralph Schpfer / Page 16

Tasks with a positive or zero offset are moved forward if they fall on a non-working day

SAP Financial Closing cockpit Closing Types


The template lists all tasks associated with the close and sorts them by folder.
All tasks in the template are classified by closing type

Thus, a single template can contain all tasks used within closing. As the task list is created, the system will determine which tasks are relevant to that close, e.g. month-end close for December 2008 and filter out any tasks that only apply to other closing types.

SAP 2009 / SAP Financial Closing cockpit Client facing Detail Presentation V.5 / Ralph Schpfer / Page 17

SAP Financial Closing cockpit Organizational Units


Folders can be used to group tasks in the template by organizational unit.
A node can be created of type controlling area and the appropriate controlling areas assigned for the CO tasks.

Where the same close tasks are performed in multiple company codes, group them in one folder of type company code. Then assign the individual company codes to that node using Change Characteristic Values.

The organizational units are passed to the variant for the job as the job is scheduled
SAP 2009 / SAP Financial Closing cockpit Client facing Detail Presentation V.5 / Ralph Schpfer / Page 18

SAP Financial Closing cockpit Types of Tasks and Help


Run Reports with/without Variants Include Notes as Tasks

Perform Manual Transactions

Include Documents

Execute jobs (CCMS or SAP CPS)

SAP 2009 / SAP Financial Closing cockpit Client facing Detail Presentation V.5 / Ralph Schpfer / Page 19

SAP Financial Closing cockpit Dependencies and Critical Path

Set Critical Path flag to identify key tasks in close

Visualize Task Dependencies

Define Dependencies in Template: For each task define which jobs must be completed before that task can start
SAP 2009 / SAP Financial Closing cockpit Client facing Detail Presentation V.5 / Ralph Schpfer / Page 20

SAP Financial Closing cockpit Scheduling Tasks


Corporate Accounting Local Accountant GL Accountant Asset Accountant Cost Accountant

Define Global Plan for Close

Prepare Local Close

Execute Local Close Tasks

Analyze Local Close Results

Prepare Data for Consolidati on

Submit Data to Consolidati on

The generated task list can be


accessed and processed by all stakeholders, either using SAP GUI or Web Dynpro application

The authorization object


F_CLOCO controls template and task related activities

The task list can contain


scheduled batch jobs, reports to be started manually or just text descriptions of manual activities

SAP 2008 / SAP Financial Closing cockpit/ Janet Salmon / Page 21

SAP Financial Closing cockpit Monitoring of the Closing Status


Corporate Accounting Local Accountant GL Accountant Asset Accountant Cost Accountant

Define Global Plan for Close

Prepare Local Close

Execute Local Close Tasks

Analyze Local Close Results

Prepare Data for Consolidati on

Submit Data to Consolidati on

Corporate Manager

Local Manager

The status and progress


of the local close can be displayed as BI queries that provide realtime access to the close figures

This enables corporate


managers as well as managers of the subsidiary to monitor the status of the closing process on their levels of responsibilities

SAP 2008 / SAP Financial Closing cockpit/ Janet Salmon / Page 22

SAP Financial Closing cockpit Continuous Improvement of the Closing Cycle


Corporate Accounting Local Accountant GL Accountant Asset Accountant Cost Accountant

Define Global Plan for Close

Prepare Local Close

Execute Local Close Tasks

Analyze Local Close Results

Prepare Data for Consolidati on

Submit Data to Consolidat ion

Optimize

Gain insight

Financial close related


reports available in the 'Report Launchpad' and in the 'SAP Financial Closing cockpit'

These reports help to


improve the template based on clear insights for the next closing cycle

SAP 2008 / SAP Financial Closing cockpit/ Janet Salmon / Page 23

SAP Financial Closing cockpit Reporting to improve the Closing Cycle BI-Reporting: Schedule Overview

SAP 2009 / SAP Financial Closing cockpit Client facing Detail Presentation V.5 / Ralph Schpfer / Page 24

SAP Financial Closing cockpit Monitoring of the Closing Cycle BI-Reporting: Status Overview or by Unit

SAP 2009 / SAP Financial Closing cockpit Client facing Detail Presentation V.5 / Ralph Schpfer / Page 25

SAP Financial Closing cockpit Reporting to improve the Closing Cycle BI-Reporting: Schedule Monitor

SAP 2009 / SAP Financial Closing cockpit Client facing Detail Presentation V.5 / Ralph Schpfer / Page 26

SAP Financial Closing cockpit Reporting to improve the Closing Cycle BI-Reporting: Schedule Analysis

SAP 2008 / SAP Financial Closing cockpit/ Janet Salmon / Page 27

SAP Financial Closing cockpit A Look under the Hood


Scheduling and Monitoring in heterogeneous IT landscapes

SAP Financial Closing cockpit


(capsulated in business function FIN_ACC_LOCAL_CLOSE of SAP ERP 6.0.3)

SAP Central Process Scheduling by Redwood *


(brand new version with new capabilities, fully integrated into SAP NetWeaver)

Existing Scheduling System

SAP ERP 4.7 SAP SEM-BCS SAP NW BW SAP CRM 7.0 Non-SAP Retail

FI

CO

MM

SD

SAP NetWeaver

* SAP Central Process Scheduling by Redwood is required for:


Cross-system Cross-client Real-time status of Event-based scheduling remote chains Parallel processing benchmarks Statistics and

...

SAP 2009 / SAP Financial Closing cockpit Client facing Detail Presentation V.5 / Ralph Schpfer / Page 28

SAP Financial Closing cockpit Mixed IT Environments enabled by SAP CPS


SAP Financial Closing cockpit & SAP Central Process Scheduling by Redwood
Group Close Audit Support Report

Subsidiary 1, Systems i {1 m}
Subsidiaries

Valuation for Accounting Valuation for Accounting Valuation for Accounting

Closing Preparation

Local Close

Subsidiary 2, Systems i {1 m}

Closing Preparation

Local Close

Subsidiary n, Systems i {1 m}

Closing Preparation

Local Close

Together with SAP Central Process Scheduling by Redwood the SAP Financial Closing cockpit can manage processes across the Enterprise Including SAP and non-SAP systems Enables enterprise-wide control and monitoring of closing cycle processes Reduces latency between dependent processes and data sources Increases automation and reduces error-prone manual processes Provides more reliability and integrity of results Documents process flows for auditing and compliance
SAP 2009 / SAP Financial Closing cockpit Client facing Detail Presentation V.5 / Ralph Schpfer / Page 29

Demo

Demo
SAP Financial Closing cockpit

SAP 2009 / SAP Financial Closing cockpit Customer Presentation V.1 / Speaker Name / Page 30

Agenda

1. 2. 3. 4.

Fast and Reliable Financial Close Business Challenges SAP Financial Closing cockpit - Automation and Collaboration Demo Wrap Up

SAP 2009 / SAP Financial Closing cockpit Customer Presentation V.1 / Speaker Name / Page 31

SAP Financial Closing cockpit What is it about?

It is an SAP ERP based application to plan, execute, automate (*), monitor, and analyze local closing tasks even in heterogeneous system landscapes (*) provides the 'global game plan' for the financial close

It It

enables enterprises to standardize and automate their 'best-practices' for the closing process in a powerful and end-user friendly application which is easy to implement lowers costs and time commitment, it improves data quality, it reduces errorrates and it completes visibility into what is being done, when and by whom

It

It has comprehensive business values for all enterprises by offering improvements in some of the most important areas of responsibility of a CFO !
(*) For usage in heterogeneous system landscape and for some automation purposes the SAP Central Process Scheduling by Redwood is required
SAP 2009 / SAP Financial Closing cockpit Customer Presentation V.1 / Speaker Name / Page 32

SAP Financial Closing cockpit Areas of Improvements


Efficiency
Reduction of manual efforts Automation of tasks Reduction of error-rates
Cross-system & event-driven scheduling of tasks

also for remote tasks

Usability
User-friendly execution Portal integration

Accessibility SAP Financial Closing cockpit


One single point of access

Transparency
Monitoring insights in closing for all levels
also for remote tasks

Your integrated tool for the local close

also for remote tasks

SAP Central Process Scheduling by Redwood

Compliance
Organization
Global game plan 'Best run' template concept Documentation of all closing activities
also for remote tasks

SAP 2009 / SAP Financial Closing cockpit Customer Presentation V.1 / Speaker Name / Page 33

Questions ?

SAP 2009 / SAP Financial Closing cockpit Client facing Detail Presentation V.5 / Ralph Schpfer / Page 34

Thank you!

SAP 2009 / SAP Financial Closing cockpit Client facing Detail Presentation V.5 / Ralph Schpfer / Page 35

SAP Financial Closing cockpit Via SAP NetWeaver Business Client

1. Select Task List for Close in Progress

2. Closing Cockpit is Started as Separate Session

Role-based System Access

Hierarchy View Graphical View


SAP 2009 / SAP Financial Closing cockpit Client facing Detail Presentation V.5 / Ralph Schpfer / Page 36

SAP Financial Closing cockpit Via SAP NetWeaver Enterprise Portal

Role-based System Access

1. Select Task List for Close in Progress

2. Closing Cockpit Starts in Separate Window

Hierarchy View Graphical View


SAP 2009 / SAP Financial Closing cockpit Client facing Detail Presentation V.5 / Ralph Schpfer / Page 37

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SAP 2009 / SAP Financial Closing cockpit Customer Presentation V.1 / Speaker Name / Page 38