Last Updated on May 16, 2023 by Pradeep
SAP Central Finance’s benefits are remarkable. They make business processes easy and simple along with providing flexibility and transparency. In this blog, you will learn details of some key benefits of SAP Central Finance.
SAP Central Finance – The “Side Car” Approach
As the new advanced deployment method in S4 HANA, the SAP Central Finance benefits are many. SAP Central Finance in S/4 HANA is a replication-based path called the “side-car” approach.
The Side Car approach means, using multiple ERP systems as source systems, SLT as middleware and S4/HANA business suite as the target system.
Contexts of Central Finance
Context 1- Deployment options – Central Finance is a deployment approach that enables the replication of posting data. As a result, it shortens the path to innovations provided by SAP S/4 HANA and S4 HANA Finance.
Context 2 – SAP instance in a system landscape diagram – The Central Finance system is also the target instance. Consequently, by running SAP S/4 HANA (finance) on it, you can operate selected Finance, accounting and business planning scenarios.
Visit Page: SAP S/4HANA Finance Training with Central Finance
List of SAP Central Finance Benefits
Following are the SAP Central Finance benefits that make it so in demand today.
Data On-the-fly
Central Finance does the data replication of financial transactions in real time without disruptions. It also harmonizes underlying source data “on the fly”.
Consolidated Activities
You can do the processing, planning and reporting of transactions in SAP Central Finance from the same shared data set. It also leverages centrally-staged data for consolidation activities.
Methodology of Universal Journal
By deploying SAP Central Finance, you can use the features of Universal Journal for both, Finance and Controlling. Additionally, with the new financial architecture, SAP S/4 HANA can optimize transactions better, making it easier for users.
Group Reporting
Creating consolidated entity and management reporting is not a small task. It also includes relevant business unit information and supporting line-item details. Further, this is often complicated by a multi-ERP system landscape. There the different charts of accounts and local business rules are the norm.
Since SAP S4 HANA Finance provides up-to-date entity and consolidated group reporting capabilities. By using the Central Finance approach, you can create the reports you need by any dimension. These are based on real-time replicated data and with flexible data harmonization.
Merger & Acquisitions
Growing companies face extreme challenges, in integrating acquisitions. Consequently, this provides a repetitive playbook for onboarding or divestitures and consolidating reporting processes in multi-ERP system landscapes.
However, Companies can replicate financial transactions non-disruptively into a Central Finance instance using SAP Simple Finance regardless of the source ERP system.
Transparency
SAP S/4HANA Central Finance provides increased transparency with a single, central source of truth of harmonized financial data for local entities and group reporting.
Flexibility
One of the best SAP Central Finance benefits is, that it quickly adapts to changing business environments and implements your growth activities and business model changes. As a result, it provides flexibility to businesses in their growth and experimentation.
Efficiency
With SAP Central finance system set up, we also get Improved process efficiency by integration, standardization and automation of business processes.
Service Level
Central Finance improves the service level provided to stakeholders, service quality accuracy, speed and timeliness, optimally in a self-service scenario.
Cost Reduction
Additionally, it reduces the maintenance of multiple systems, applications and interfaces improves and innovates locally and introduces centralization and economies of scale to process execution.
Working Capital Improvement
Central Finance also simplifies your cash, collections and receivables management and improves your working capital.
Simplification
SAP Central Finance makes the Run simple and live. The single rationalized and consolidated solution for transaction recording, reporting, planning and consolidation does the job.
Also read: Simplifications in SAP S4 HANA
How SAP Central Finance benefits help
The benefits of SAP Central Finance help in building the future of the SAP S/4HANA Finance application. Its capabilities would form the foundation of future financial processes, making it more robust and realising better business value.
Learn: Why SAP Central Finance is the future
From the learner’s point, seeing SAP Central Finance’s benefits, it is certainly advantageous to learn it in-depth. This means you should know its methodology, work process, configuration and implementation practical.
Already businesses have adopted SAP S/4HANA Finance. Similarly, seeing the SAP Central Finance benefits, they expect to receive much more value with the great features that it added to the S/4HANA Financial application.
Video you much watch: SAP Central Finance Process – Detailed Overview
