In this Topic we will discuss more about central Finance, Why Central finance and other features of Central finance
What is central finance?
Central finance is system of Finance that creates a single Financial source of truth for executing reporting and finance process among the disparate financial applications and a way to reap the benefits of Sap S/4 HANA without full blown data Migration.
Why central finance and why now?
As an SAP consultant we know that SAP will support the existing ECC 6.0 till 2027 (as of now) and Customers need to Migrate to SAP s/4 HANA in future to the get the benefits SAP software.
CFIN is more easily deployable central system for finance, enabling the business planning and consolidation, centralized transaction execution, group consolidation, reporting and Analytics.
It works on the SAP HANA FINANCE DATA MODEL i.e universal journal that captures all the financial Data, rather than Data spreading over the different tables for the general ledger.
It also provides an edge to bring the Non-SAP source system financial transaction though the central finance staging tables.
When CFIN implementation approach is recommended over the S/4 Hana migration?
If there is more than one heterogenous source kernel along with Non-SAP legacy system, its recommended to have CFIN approach to validate all the Financial transaction/data related SAP to capabilities (like reporting, planning) before full migration.
CFIN helps in Process Transformation: We will explain this topic in the below section. The following aspects are taken in consideration on Process transformation.
Standardization: Unified reporting, Data standardization.
It is easier and more meaningful because the financial data is based on the single source of truth.
Process execution is consistent, involving one way to process and one system to process in across the organization.
Rationalization: Decreasing multiple ERP financial systems
Better and redesigned process. Faster process with the Help of Fiori Apps. Zero touch finance
Centralization: Reporting and Process execution.
The above-mentioned reporting and process like Payment run, collection & dunning etc. can be executed centralized.
Automation: Reporting and Process execution
Yes, reporting and process execution can be automated with the help of RPA
Business Model evolution: New Business Model can be design
Enterprise optimization: Bench Marking, Modelling, Central Payment.
Business Model change: We can change the existing Model with the help of mapping.
Merger & Acquisition: CFIN provides better approach handling cases of Mergers & Acquisition.
Diversities:
Apart from these five we have also Technology transformation and cloud transition in Scope for Process transformation.
High level Architecture CFIN:
Central Finance Building Blocks:
Source Systems: Regular Transaction are posted in source kernel.
Data replication: Data is replicated from the source with the help of SLT/ ALE/ RFC.
Central system: Breakup of the transaction data and Master data into series of Tables to reduce the redundancy and increase the throughput.
Cloud Integration: This is additional functionality to the Central finance.
Backposting (optional): Integration via standard SAP integration mechanisms like IDocs (ALE) or Process Integration (SAP PI)
Details for the CFIN document replication:
CFIN supports following replication:
FI/ CO documents via SLT
CO documents via SLT
Cost objects via SLT
EC-PCA via SLT
Project systems via ALE
