SAP Central Finance System Set-Up – Process & Components

Like SAP’s other Projects, the Central Finance application requires a full environment of systems to function. The main components in the SAP Central Finance System Set up are:

• The Central Finance instance
• The SAP Landscape Transformation Replication Server (SAP LT Replication Server) system
• The SAP source systems the non-SAP source system and
• SAP Master Data Governance (SAP MDG) system (Optional)

Before starting the Central Finance system set-up process, Make sure that you review the latest release.

• 1st, SAP Note – 2148893 – Central Finance – Implementation and configuration
• 2nd, SAP Note – 2184567 – Central Finance – Frequently Asked Questions
• 3rd, SAP Note – 2323494 – Overview of Notes Relevant for Source system

Know about SAP Central Finance Architecture

Landscape

To properly evaluate and configure your Central Finance system, we recommend leveraging a source system containing the maximum amount of data covering as many scenarios as possible. Further, in an ideal setup, the source system in the development environment is a recent copy of a source quality system or even a production system. Since some processes like the Initial load can be demanding in terms of processing power and memory. Thus, I recommend setting up a new sandbox or development or even a quality environment for each source system.

SAP Central Finance System Set up Sequence

1. Sandbox/source system– Copying the current production system or a recent quality system.
2. Sandbox/SAP LT Replication Server– Setting up a new instance or extending an existing sandbox instance.
3. Sandbox/Central Finance– Setting up a new instance of the latest release of SAP S4 HANA.
4. Development/Source System– Copying the current production system or a recent quality system.
5. Development/SAP LT Replication Server– Setting up a new instance or extending an existing development instance.
6. Development/Central Finance– Setting up a new instance of the latest release of S4 HANA.
7. Quality/Source system– Copying the current production system.
8. Quality/Source system– Transporting add-ons and configuration.
9. Quality/SAP LT Replication Server– Setting up a new instance or extending an extension of an existing quality instance. Also transporting configuration from the development SAP LT Replication Server system.
10. Quality/Central Finance– Setting up a new instance of the same release of SAP S4 HANA as the development system and transporting configuration from the development system
11. Production/ Source system– Transporting add-ons and configuration to the existing production system
12. Production/SAP LT Replication Server– Setting up a new instance extending the existing production instance and transporting configuration from the quality SAP LT Replication Server system.
13. Production/Central Finance – Setting up a new instance of the same release of SAP S4 HANA as the quality system and transporting configuration from the quality system.

You may also want to read: Data Replication Process in SAP Central Finance

Central Finance Instance

Central Finance is delivered standard starting with SAP ERP 6.0 no need to install additional components. However, we recommend leveraging the latest SAP S/4 HANA release and feature pack as the base for your Central Finance instance.

Learn about SAP Central Finance Initial Load

Follow these steps for SAP Central Finance System Setup

1. Activating Business Functions
2. Activating the Web Dynpro application
3. Updating Security roles
4. Creating RFC users and destinations
5. Defining logical systems
6. Assigning RFC definitions
7. Checking logical system assignment for Central Finance client
8. Creating and assigning an SAP Application Integration Framework runtime configuration group

Activating Business Functions

Once the system is available, you must activate the business function FINS_CFIN.

Activating a business function deploys coding tables and new configuration to an SAP system. Transaction CFINIMG is enabled by business function FINS_CFIN and which collects all configuration steps.

Related: Limitations of SAP Central Finance Functionalities

Updating Security Roles

For security, you must activate the role SAP_IUUC_REPL_REMOTE to include the RFC name BDCH.

SAP Landscape Transformation Replication Server

The SAP LT Replication Server handles the initial load and replication of data from the local system into the Central Finance system for FI and CO objects and documents. Further, after the initial load, the SAP LT Replication server will monitor database triggers on the source system. Additionally, it saves these changes to logging tables and propagates them to the target system.

In a Central Finance scenario, you can install the SAP LT Replication Server system in the same instance. However, for performance and flexibility reasons, I recommend installing the SAP LT Replication server as a separate server. Further, to enable central Finance on the SAP LT Replication server system, you need to install the DMIS add-on on the LT Replication server.

Replication server configuration consists of Defining RFC destination and Defining configuration.

Defining RFC Destination

The SAP LT Replication Server system sits between the source and central systems. Even when you install it on the same server as the source or target system. The SAP LT Replication server component communicates with the RFC destination.

Further, the SAP LT Replication server will connect the source system with the central system. This link is called a destination. This is to say, Destinations are configured in the configuration and Monitoring Dashboard.

Configuration SAP LT Replication server between an SAP ECC as the source and S/4 HANA Central Finance as Target.

SAP Source System

1. On-Premise- Any on-premise SAP ECC system requires few updates to serve as a source system for Central Finance.
2. Install the DATA Migration Server- Like the SAP LT Replication server system, the DMIS adds must be installed on the local server.
3. Update the security role- Update RFC white list for security role SAP_IUUC_REPL_REMOTE
4. Source system as Cloud – One cloud system serves as a source system but not a central system.
5. Open a web browser https://rapid.sap.com/bp
6. Select Solutions package for SAP S/4 HANA
7. Then, select SAP S/4 HANA cloud
8. Next, select SAP Best Practice for SAP S/4 HANA cloud
9. In the version dropdown, select the country version
10. Under Scope Item Groups, open Finance, Accounting, Subsidiary Integration of SAP S/4 HANA cloud to Central Finance.

Non-SAP Source System

For legal reasons, SAP cannot provide standard connectivity to third-party systems. However, simplified staging tables can be created to receive data extracted and loaded from non-SAP source systems via SAP LT Replication Server. For this, you should follow the following process.

1. Download the latest version of the replication content from Note 2481900 and upload the content into the SAP LT Replication Server using the program DMC_UPLOAD_OBJECT.
2. Create a custom program called ZCFIN_EX_CREATE_SLT_TAB. Copy the source code from the same Note 2481900, activate the changes and execute the new program to generate the following staging tables.

• Document Header – Table /1LT/CF_E_HEADER
• Accounting Items – Table /1LT/CF_E_ACCT
• (Debtor Items) – Table /1LT/CF_E_DEBIT
• Creditor Items – Table /1LT/CF_E_CREDIT
• Product Tax Items – Table /1LT/CF_E_PRDTAX
• Withholding Tax Items – Table /1LT/CF_E_WHTAX
• Customer Extension on Header Level – Table /1LT/CF_E_EXTENT
• Customer Extension on Item Level – Table /1LT/CF_E_EXT_IT

Master Data Governance System in SAP Central Finance System Setup

Central Finance leverages SAP MDG tools for master data mapping. If you use only the mapping services, you do not require a license for SAP MDG is required. However, you need a license for other tools like master data distribution, business rules, workflow, data governance, etc.

There are two types of mappings, depending on the lifecycle of the master data.

1. For long-lifecycle master data like general ledger (G/L) accounts, customers and vendors use either manual mapping or SAP MDG recommended.
2. For short-lifecycle master data like internal orders or production orders, use the cost object mapping framework.

If only standard data mapping is used, no further installation is required. If the full SAP MDG solution is in use, carry out the SAP MDG-specific installation process.

Also learn: the MDM system in SAP Central Finance

Importance of SAP Central finance System Set-up

SAP Central Finance System is an integral part of central finance’s implementation process. Certainly, you need to do it in the initial stage. Thus, you should be very clear on the concepts. Since the server set-up plays an important role in the system set-up. Hence, you should have due knowledge and information about the same to grow in future.

Lastly, to know why SAP Central Finance is the future, you need to know its features & functionalities.

You may want to read: S/4HANA Finance Vs Central Finance