Data Horminization in CFIN

Data Horminization in CFIN

We all know in Central Finance transactinal data need to be replicated in Target system. To replicate data we need to have all the Master Data/value mapping available at Target end. These Master data includes all the Key mapping Like Gl Master Data, Profit Center, Cost center,secondary cost element, Activity Type etc. Value Mapping and Cost Object mapping data all need to be Harmonized before actual CFIN implemattations starts.


What do you Mean by Harmonization.

Central finance foundation unites data from multiple systems across your landscape and presents it in a single, centralized solution for optimal visibility and con-trol. This Process is known as data Harmonization.

Need of Data Harmonization.

High-quality master data drives the golden record, a single version of the truth that people and processes throughout the organization can count on. But source data from multiple and varied systems can contain inherent discrepancies, mistakes, and duplications. For example, customer, supplier, and product names can be misspelled or abbreviated in a variety of ways, resulting in each existing as a separate entity.Speed and simplify integration from multiple data sources and systems


For example: We have Funcational Area 1000 at source A and funcational Area 5000 in source B.Both have same properties and same need mapped to Funcational Area 2000 at Target due to business requirement relevant to properties at Target. This decision of what need to be mapped to which values is outcome of the Data Harmonization:


Steps Involved in Data Harmonization.

  1. Data extraction: First of all relevant Data of all the source kernel are extracted and volume is determined.
  2. Data Profiling: Data extracted from Different source are modelled and redefined for smooth CFIN Implementation.Source systems and ERP solutions must speak the same language through configuration and master data definitions and mappings.

Data profiling functionality helps identify the data remediation actions required to successfully load master data into central finance. The application harmonizes master data from multiple sources and supports elements including customers and vendors, cost centers, profit centers, general ledger accounts, projects, materials, and assets. It includes predefined extracts, models, and upload programs for all data elements.

SAP has standard application ” MAGNITUDE” for S4 Hana which can manage and accelerate the Conslidation, loading and on going interface of Master Data and key mapping into central Finance.


Benfits of Data Harmonization:

  • Faster data integration for a golden master data record
  • Streamlined central finance implementations
  • Improved finance planning, reporting, and compliance
  • Enhanced finance operations and shared services

All the stake holders of Central Finance system like Business, consolidation team, reporting team, CFIN team should take part in this Data harmonization.


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