Last Updated on August 30, 2022 by Pradeep
SAP Central Finance Architecture – Introduction
SAP Central Finance architecture can be divided into Five core parts that replicate SAP and Non SAP data including the transactional data. These are- 1. SAP HANA Database 2. S/4HANA Application 3. Source System 4. Data Bus 5. LT Replication Server.
SAP Central Finance System Architecture
Before we go into details of each component of the technical architecture, let us look at the SAP Central Finance Deployment structure.
How to Deploy SAP Central Finance?
SAP Central Finance product receives information from source systems as a core part of SAP S/4 HANA. The central Finance solution includes capabilities and processes that are delivered with this product and other components of SAP S/4 HANA. It also includes other SAP or third-party products.
Now I explain each component of SAP Central Finance architecture in detail.
Core Building Blocks of the SAP Central Finance Architecture
First – SAP HANA Database
In the SAP world, the SAP HANA database is probably the most documented in the last few years. More than a database, the SAP platform delivers capabilities unmatched by rival databases. Central Finance uses SAP S/4 HANA as the database for fast transaction processing. Not only this, but you can also use it in the solution architecture as a reporting and advanced analytics tool. Once the data reaches the SAP S/4 HANA core application, the power of the Universal Journal becomes available to SAP S/4 HANA for both SAP and non-SAP data sources.
Second – SAP S/4 HANA Core Application
The second part of SAP Central Finance architecture is the SAP S/4 HANA core system. This core system is built on SAP HANA as a database. SAP S/4 HANA comes with a modern user interface and a full suite of Finance process functionality. This functionality comes across the line of business finance. This includes Financial Accounting, Controlling, Cash Management, and Treasury Management. Furthermore, it also includes finance operations such as Receivables Management, Advance Compliance, etc.
Also read: Central Finance key operations
Third – Source System
The third part of Central Finance’s technical architecture is a source system. The source system can be an SAP source system such as SAP ERP or a non-SAP source system from a third-party provider.
Fourth – The Data Bus
The next part of SAP Central Finance architecture is the data bus. Just like a Bus carries people from one point to another point. In the same way, A Data-Bus works in Central Finance architecture. Its job is to manage and see how transactional items are moving from the source system to the SAP S/4 HANA core system. Certainly, where Central Finance activated. This “traffic” is managed by a specific SAP product.
Fifth – SAP Landscape Transformation Replication Server
We also call it the SLT Replication Server. SAP Note 1605140 provides detailed guidance on how to install the SAP LT Replication Server. Central Finance uses the SLT server as a data provisioning manager on a real-time basis.
Related: SAP Central Finance- All you need to know
Benefits of using SLT in CFIN
- SLT allows data replication in real-time to use in Central Finance
- It uses trigger-based replication to enable transformational capabilities when needed by Central Finance
- Furthermore, it handles standard, cluster and pool tables
- It also supports Unicode and non-Unicode encoding during replication
- Further, it allows either the functional user or technical user to monitor and manage data loads for Central Finance
- SLT allows the use of macros to enable data manipulation at the moment when data is pushed out of the SAP LT Replication server into the Central Finance
- In addition, SLT allows the project roadmap to onboard different companies using a phased approach. This is quite common in Central Finance
- Lastly, it uses the SAP SLT server for territory functionality for Central Finance system processes and other benefits.
Also Read: SAP Central Finance Benefits
Third-party Data Integration
The business benefits of moving data from Point A to point B with Central Finance are not limited to transactions held in SAP ERP or SAP S/4 HANA but also in the non-SAP system. For SAP to SAP transactional data replication, Central Finance leverages the SLT server. However, this option won’t work for third-party sources. Since the transactional data could be held in a wide range of non-SAP technologies, from Oracle to Microsoft Dynamics. As a result, you may face challenges in standardizing the extraction, cleansing, and conversion of data into Central Finance format.
Related: SAP Central Finance Training on S/4HANA
SAP Central Finance Landscape
Sandbox
Most customers have a Central Finance sandbox for testing configuration and business models. The Scope of the project may have an impact on these configurations and models. Thus, you can use this Sandbox to build prototypes that are easily disposable if not needed.
Development
The development (DEV) system is always required to hold the master configuration in at least one client for Central Finance. You can configure the DEV system with transport Management to capture and govern changes to the Central Finance configuration.
Production
The final and most important tier is the production environment. The production environment is where you carry out all the configuration, master data, and initial loads for Central Finance.
SAP Landscape Transformation Replication Server
Replicating on a real-time basis for Central Finance makes the SAP LT Replication server an essential pillar of technical architecture. It creates a link between the source system (SAP ERP/non-SAP) and the S4 HANA system. Though you can install the SAP LT Replication server either on the Central Finance Instance or the SAP source system. I, however, recommend installing the SAP LT Replication server into its server that is appropriately sized to ensure performance. Consult the SAP Note 2154420 for SLT and 2148893 for Central Finance before, during and after your project.
Also Read Related Article: Data Replication Process in SAP Central Finance
SAP Master Data Governance
A primary requirement for Central Finance is the correct mapping of data values from the source system. You can manage the mapping manually, using Central Finance programs or partner tools such as Magnitude. This can load master data and carry out quality checks before loading transactional data. If you are using SAP MDG, You have only two choices of technical architecture.
Another major benefit is the ability to upgrade the SAP MDG instance independently from the Central Finance instance.
SAP GUI
SAP GUI (graphical user interface) represents the client in SAP’s three-tier architecture of application server, database, and client. It works across the platform and supports different operating systems such as Windows, Unix, etc.
SAP Fiori
SAP Fiori is the name of SAP’S user experience (UX), simple to use. It comprises a range of tasks, from approvals workflow to monitoring to generating postings. SAP Fiori is available for use with Central Finance as delivered with the standard SAP S/4 HANA core.
Also Visit: SAP S/4HANA Finance Training
