Presented by Anand Seetharaju
SAP offers multiple pathways to implement SAP S/4HANA latest release. One pathway is Central Finance. A typical use case is customers with different release of SAP systems or non-SAP system can leverage SAP S/4HANA features by implementing Central Finance. SAP offers SAP Central finance solution. a deployment option, to leverage latest innovations of S/4HANA by replication of posting data from different ERP systems to central finance system without disturbing the existing ERP systems. The source system can be SAP, non-SAP systems or customized home-grown systems. There are several advantages with this approach such as shared services, advanced segment/group reporting, and transform business processes to SAP S/4HANA quickly. In addition, Central Finance provides companies with an opportunity to harmonize master data on the fly and enable fast closing.
In this recorded session, you will learn key considerations of General ledger in central finance with FI/CO expert Anand Seetharaju:
- Introduction to Central Finance
- What do you need to know about parallel ledgers when implementing central finance?
- What document splitting features available with Central Finance?
- Key currency considerations you must know.
- Chart of accounts considerations
- Key takeaways
- References
Q&A
Q: What prerequisites are required for the central finance implementations?
A: There are several prerequisites you have to consider for a new CFIN implementation. First, you must ensure source system readiness both from a technical and business perspective. From a technical point of view, you must ensure minimum service pack level, minimal SAP notes to enable the CFIN functionality, requirement of extended withholding tax. From a business standpoint, you must ensure all fiscal years are properly closed prior to initial load extraction. Business can be involved in any of the cleansing or clearing activities -- open items from prior year must be evaluated and considered. This may involve converting some open item managed accounts inadvertently created and used as OIM accounts to non-open item managed accounts. Similar exercise required on SLT side to make sure you have the latest content by installing the correct DMIS package for SLT replication. From CFIN side, ensure any critical notes required to meet the required for the functionalities such as CPAY, CSPC, or AIF error handling.
Q: What prerequisites are required for real time replication?
A: The prerequisite steps could vary with every CFIN implementation and project requirements. SAP has provided 36+ steps to follow. I have seen hundreds of steps in a typical project plan including process controls before and after executing each task. At a high level, you must follow the following steps in the exact sequence to enable online replication. Follow CFIN admin guide/CFIN online for the exact sequence of steps to be followed.
1. Configure and activate Application Framework Interface (AIF) settings.
2. Activate SLT for online replication.
3. Complete Initial Load (preparation, extraction, simulation and final posting)
4. Clear AIF initial load (bulk load of documents accumulated since initial load extraction)
5. Activate real-time replication/Activate CPAY if in scope.
6. Monitor real time replication with AIF (transactions /AIF/ERR and /AIF/IFMON) tools
Follow the below link for the sequence of steps for the initial load execution:
Q: Is transfer pricing supported in Central Finance?
A: Central finance does not support transfer pricing fully out of the box. However, first, transfer pricing requires additional evaluation such as valuation and currencies configured in source systems. If FI integrated currencies configured along with currency types 12 and 32 for transfer pricing, these currencies transferred via initial load and online replication as long as they are configured similarly in central finance. The runtime structure CFIN_ACCCR holds currency type 32 which is used to transfer currency type 32 to CFIN. This currency type must be configured in CFIN same as the source system transfer pricing currency settings. Perform a proof of concept in a lower environment to confirm the key processes are not impacted.