Thanks Christian. SAP LT Replication Server for CFin Third-Party System Integration. accenture While reporting is a key value driver, the Central Finance software solution evolved from a pure advanced financial reporting system to a central transformation platform where you can execute financial processes centrally. - isn't there one "central" too many? Universal Journal, single source of truth, Single (same) platform for transactions and analysis, Fiori user interaction / digital age user experience. We had to explain to them that SAP Central Finance is a function activated within As the world manages the ongoing effects of the global pandemic, your company is under significant pressure to steer a steady course and keep the business moving. AIF is the core component of error handling when data replication in CFIN is talked about and till now it was more of a standard component. Thanks a lot for sharing your knowledge. Alerting is not available for unauthorized users, Right click and copy the link to share this comment, Mapping Your Journey to SAP S/4HANA A Practical Guide for Senior IT Leadership, SAP Advanced Compliance Reporting (ACR) for statutory reporting, SAP Note 2184567 Central Finance: Frequently Asked Questions (FAQ). SAP Central Finance Transaction Replication by Magnitude for SAP S/4HANA is an SAP Solution Extension.

In this blog I will share insights on these three topics and will try to simplify. This can lead to different understandings and expectations. While it is true that Central Finance brings a lot of value to organizations with multiple SAP and non-SAP ERPs, it also reduces the risk for organizations going through a financial transformation. Administrators Guide for Central Finance in S/4HANA, Required tools and many How to questions are addressed, Initial Data load (for historical data migration) and simulation, Error correction with Application Interface Framework (AIF), Replication of orders (internal orders, production orders, product cost collectors, service/PM order, QM order, process order), Changes of orders are also replicated: SAP Note, Settlement rules are not covered:SAP Note, Replication of sales orders is not covered (SAP Note, Replication of FI postings including primary CO postings, Postings from Accounts Payables (FI-AP) and Accounts Receivables (FI-AR): SAP Note, Changes to a document (e.g. In ECC systems where ledgers were not used and either accounts groups or GL account number ranges were used to classify the posting for different reporting purposes like Local, IFRS etc. Read here about AVL existing capabilities- CLICK HERE, Accounts to Ledger conversion (Parallel Accounting). In this typical scenario you can transition with Central Finance to a centralized SAP S/4HANA with minimal disruption to your current system landscape. Is Central Finance a transition scenario to SAP S/4HANA? Nice to read. SAP S/4HANA Central Finance as Reporting Hub, SAP S/4HANA Central Finance as M& A Accelerator, SAP S/4HANA Central Finance as Shared Services consolidator, SAP S/4HANA Central Finance as Central Single Instance with logistics. The following objects are currently in scope of AVL (SAP Note, Supported fields for each logistics object in the Accounting View of Logistics Information scenario: SAP Note, Activity rates are replicated together with the cost component split data, Replication of material cost estimates including the relevant procurement alternatives, Mandatory for VAT consistency checks which should ensure that postings that are replicated to Central Finance are consistent for the purposes of reporting tax. This scenario is illustrated in the following picture and shows only one possible scenario for a process split. From a product point of view the software solution Central Finance is more than a S/4HANA system. They can then be used for product costing or activity allocations in source systems. via transaction FB02) are also replicated:SAP Note, Postings from fixed asset (FI-AA) from the source system currently post into the General Ledger on the reconciliation account only (SAP Note, Replication of CO postings not coming from FI, Supported business transactions: SAP Note, Replication from costing-based CO-PA in source: SAP Note, Replication of internal EC-PCA postings from classic Profit Center Accounting that do not flow in via FI or CO, Internal PCA postings are posted in the Universal Journal into an extension ledger. Many times I also get questions like Can I do this or that in Central Finance? I think it is important to know what can be meant when someone talks about Central Finance. I will share my views on the different meanings of Central Finance and give you more insights into: Let me start with a commonly used short description: SAP S/4HANA for central finance foundation (also known simply as Central Finance) is a S/4HANA system installed as side-car, receiving financial accounting transactions via real-time replication from SAP or non-SAP ERP source systems. What is Central Finance? As already mentioned, Central Finance is explicitly designed to run one central platform for corporate finance across distributed landscapes. What is the difference between Central Finance and S/4HANA?

As Central Finance is running on S/4HANA, it allows any enterprise, SAP or not, to start using S/4HANA Finance innovations. This is simply because SAP developers are limited in their ability to work with third-party solutions. Activity rates calculated in Central Finance system can flow back to the source system. Thus, the question arises: Which processes can be executed centrally in Central Finance alternatively or complementary to process execution in source ERP systems? This was a quick overview and introduction to Central Finance. Central Finance is ONLY relevant for organizations with multiple source systems: Introduction: It's crisp and yet detailed enough to understand the improvements/changes in CFIN version 2021 from it's earlier versions, Alerting is not available for unauthorized users, Right click and copy the link to share this comment. Also, running Central Finance in parallel to their existing ERP limits the disruption to operations and significantly lowers the risk that a full ERP migration represents. then the functionality of replication from source (SAP or Non SAP) can be used.

They say we are implementing CFIN but for implementing S/4 they not clear whether same S/4 box is sufficient or do they need another box. Some core features released specific to CFIN with 2021 are: SAP Application Interface Framework (AIF), (important to note that Individual replication of cost objects and CO documents via RFC was already part of the solution). Central Budgeting for Internal Orders allows you to take a Below are some of the Questions many of our customers ask us often : The capabilities of the solution make it a perfect fit for a divisional setup with operational finance on the divisional level, and central financial reporting and consolidation on the corporate level. Parallel Accounting: Account- to Ledger-Based Solution makes it possible to connect a source system that uses parallel accounting with accounts to a Central Finance system which uses parallel accounting using ledgers. Asset Accounting document replication is not supported. App which provides overview of the postings stuck in AIF due to errors. There is no SAP implementable/installable product called CFIN rather its activated via business function on SAP S/4HANA box. Later,Central Finance can serve as a platform for downstream systems like a data warehouse,planning, or consolidation system. The governance and distribution of additional required master data like G/L accounts, cost centers and so on can be done with MDG. Central Finance (CFIN) is still evolving product which still does not have lot of required features and customers go for custom solution based on the scope of project and current ERP system release. Very well explained!! Very well written. I misunderstood that aspect of the article, thanks for clarifying. In This Blog post, will help to get knowledge on the Central Budgeting of the internal order business process introduced in the CFIN 2020 FPS01 version.

Alerting is not available for unauthorized users, Right click and copy the link to share this comment, Replication of FI/CO postings: FINS_CFIN_AC_DOC_GENERATE, Replication of CO-internal postings: FINS_CFIN_CO_CENTRAL_POSTING, Replication of Cost objects: FINS_CFIN_CO_OBJECT_ASSIGN. It is explicitly designed for the needs of enterprises that have multiple ERP systems in their landscape, as well as a central finance and controlling department serving all business divisions. SAP S/4HANA Central Finance is an accelerated deployment option for implementing SAP S/4HANA Finance in a non-disruptive way.

Initially only the replication of financial postings (FI and CO documents) and cost objects (orders) were supported. It is based on S/4HANA but it comes additionally with a set of enabling technologies (like logging, replication, mapping, posting, error correction and reconciliation) and uses SLT, MDG, AIF and ALE/IDOC. Christian Rainer This is an excellent blog post. The term Central Finance is used in different context and the meaning usually depends on the context. Central Finance does not cover the replication of all potentially required master data, but only the replication scenarios mentioned below. In all CFIN projects this was purely a custom solution.Now additional configuration needs to be done where we have to provide the combination of Chart of Accounts + GL Accounts and classify the entry as to which ledger group does it belong in CFIN. Customer do the following: SAP S/4HANA Finance Once we have data in Central Finance we can run transactions on that data but that takes it out of the CFIN layer and uses S/4HANA Finance layer. Determining whats next and how you will succeed over the long term can feel like an What is SAP Central Finance Transaction Replication by Magnitude for SAP S/4HANA? Introduction: Alerting is not available for unauthorized users, Right click and copy the link to share this comment. What is SAP Central Finance Transaction Replication by Magnitude for SAP S/4HANA? Last, when the time is right, the source system can be fully migrated to the SAP S/4HANA platform. You can map your different accounting entities (for example, account, profit center, or cost center) in your source systems to one common set of master data in the central system to establish a common central reporting structure. Thank you @Christian Rainer for your post.

I am sorry, but I am not an expert on Central Procurement. You can replicate financial postings from source systems into the Central Finance system for some company codes (eg Company Code 0001) and also run your normal business processes for other company codes that originate in your S/4HANA system, all within the same client (SAP Note 2184567, question #33). Central Finance Solution that covers additional aspects and the full scope for a Central Platform for Corporate Finance. The SAP S/4HANA Central Finance system receives financial accounting transactions via real-time replication from SAP or non-SAP ERP systems with a set of enabling technologies, mainly: Central Finance offers integration to Master Data Governance (MDG) to access available mapping information there. This resulted in the data sourcing and same data can be combined with financial data in ACDOCA for analysis purposes as well as for accruals. Myths from https://www.truqua.com/sap-central-finance-4-myths-and-1-truth/. SAP Cash Application that provides intelligence based on machine learning for your invoice and payment matching process, SAP Intelligent Robotic Process Automation that can automatically replicate tedious actions that have no added value. Budgets represents real cash and often are not the same as plans and forecasts. Long-term SAP customers know that the support of non-SAP solutions is limited. SAP S/4HANA finance was the initial version of product and was meant to be upgraded from ECC via migration but migration can be as disruptive as anything so SAP came up with an idea of adding a simplified deployment option called SAP S/4HANA Central Finance and it is still being seen as a deployment option and not an end state of the architecture. Central Finance is stable and scalable & very stable, especially considering that more than 500 customers have bought the license, more than 400 projects have started, and about 100 customers are live. What is Central finance? Thus, Central Finance provides a transformation platform for the digital business. Thank for clarifying. And Actually its not SAP Central Finance rather SAP S/4HANA Central Finance. With 2021 now error messages can be distributed to people or group of people based on nature of error like master data errors, Configuration error and even master data errors can be classified in to vendors, customers, GL accounts etc. In lot of conversations I have seen customers are not clear in differentiating SAP S/4HANA Central Finance and SAP S/4HANA Finance and indeed SAP S/4HANA. Companies with a single SAP ERP instance should first focus on the standard transition scenarios to SAP S/4HANA: A transition with Central Finance to S/4HANA requires proper diligence and it is important to understand the capabilities and limitations in Central Finance (e.g see SAP Note 2184567, questions #7,10,12,13,14 and 35). Christian Rainer In my next blog I will therefore focus on central processes in Central Finance, because Central Finance evolved from a pure advanced financial reporting system to a central transformation platform where you can execute financial processes centrally. Several SAP customers are already leveraging Central Finance as a stepping stone to SAP S/4HANA. Very well explained and straight to the point with different views on SAP S/4HANA for Central Finance perspective. Thus you can benefit from the well-known available innovations in Finance in S/4HANA and of course also from the S/4HANA platform, SAP HANA database and related innovations and technologies, like: In this blog I explained that a Central Finance solution is more than the Central Finance replications scenarios only. Data Analysis fiori app with this app the list of pending journal entries for which a temporary posting does not yet exist can be analysed. ), Centrally deployed ERP systems for Finance have been around for a long time. [source: Mapping Your Journey to SAP S/4HANA A Practical Guide for Senior IT Leadership]. Explains Central Finance simply and from various lines of discussion that cover various customer stakeholders. (More details I will explain later. This is one of the main feature which is introduced as a functional change. For a detailed scope and limitations of the replications scenarios including third-party systems as source system see the documentation in SAP Help: The following table lists the main entities for the configuration of the replication scenarios in the SAP Landscape Transformation (SLT) Replication Server and the corresponding interfaces in the Application Interface Framework (AIF): There are also other replication objects supported and also required for certain scenarios in Central Finance (eg for central payment): These core functionalities and provided replication scenarios in Central Finance from a product point of view are an enabler for a Central Platform for Finance. But it result in confusion and raised questions like: SAP S/4HANA Central Finance This is a part of S/4HANA and as I said a deployment option so its not being implemented on a standalone CFIN box. The scope of the supported replication scenarios and functionalities increased with each release. SAP Help Central Finance System Landscape). Thanks Vinay for sharing. You can replicate financial postings from source systems into the Central Finance system for some company codes and also run your normal business processes for other company codes that originate in your S/4HANA system, all within the same client. There are also other possible scenarios how you can split processes in Central Finance. Parked documents & Balance carry forward items. Clearings & clearing resets are not transferred as part of the initial load, but you can activate the transfer of clearings via ongoing replication. In your introduction you do state " differentiating SAP S/4HANA Central Finance and SAP S/4HANA Finance", and that makes sense to me. SAP Solution Extensions are Do you need an accelerated deployment approach to enable scalable growth to meet your business objectives? Some source releases are supported out-of-the-box others require additional effort see SAP Note 2184567, question #5. Central Finance Operations Monitor with Focused Run, Third-Party System Interface to Central Finance: Process and Architecture, EC-PCA postings from classic Profit Center Accounting, Central Projects (WBS) Asset Settlement Scenario, ALE Work Breakdown Structure Distribution, Central Projects in Central Finance in SAP S/4HANA, Accounting View of Logistics Information (AVL), 1887572 SEPA mandates: ALE distribution tips & tricks, SEPA Replication from Cloud Source System to Central Finance, SAP Note 2494127 SAP LT Replication Server for SAP Central Finance VAT Configuration Check for Company Codes, Activity Rate Replication from Central to Source, Finance function redesign starts with centralization decisions. Thanks for sharing! Control of cash is not same as managing plans or forecasts. ), but only the replication of a subset of certain logistic object data into new accounting view tables. As already mentioned, Central Finance is running on a S/4HANA system and therefore you can also use the available and compatible standard features of S/4HANA. Thanks for the insights! Is Central Finance a system, a product or a solution?

In the end the design of your business processes depending on your business requirements makes your specific Central Finance Solution. Many organisation engage in forecasting, planning and actuals; often Dear SAP Friends, Agree and thats why the core decisions get distracted so its important to know what is stepping stone and whats end product. Supported are the following activity types posted with these transactions: PRC5: Profit center document entry (transaction 9KE0, 9KE9 or 1KEL), PCAA: Actual assessment in profit center accounting (transaction 3KE5), PCAD: Actual distribution in profit center accounting (transaction 4KE5), Replication of commitments and commitment updates for purchase requisitions and purchase orders (1709 FPS00: SAP Note, Commitments are also posted in the Universal Journal into an extension ledger, Replication of Projects (WBS elements) with ALE/IDOC, Up to 2020 only the reporting scenario is supported, Replication of networks is not included (but postings could be mapped in a BAdI), Central Finance does not include the replication of logistics documents (e.g. Contrary to traditional data warehousing or custom reporting solutions, Central Finance leverages standard solutions for the load and replication of finance and controlling transactions. **images may have been borrowed from internet with due credits. Product Expert As of release 1909 the SLT replication processes can also be monitored with Focused Run:Central Finance Operations Monitor with Focused Run. The organization of Finance functions is an important topic in a Central Finance scenario and also discussed by Gartner: Finance function redesign starts with centralization decisions. From there, they can introduce financial shared services like Central Payments, Central Credit Check, or Tax Reporting. Previously this was done using enhancements, FICO data Replication can be activated or deactivated by company code. Postings to CO-FI reconciliation ledger (GL Reconciliation Postings). The graphic shows a simplified overview of Central Finance from a system landscape view. In a typical set-up, multiple source systems are connected to one SAP System Landscape Transformation (SLT) Replication Server which is connected to one Central Finance S/4HANA system ( SAP Help Central Finance System Landscape). Range can also be assigned For example: With this system will determine the ledgers based on the GL accounts used in postings.The interval of GL Accounts explained above should not overlap and one GL can only be mapped to one Ledger Group. All this contributes to an architecture thats reliable and scalable for all scenarios. Of course it is recommended to do a proper analysis and evaluation which business processes can and/or should be run for which company codes in Central Finance and/or in the source systems only. The note is updated regularly and provides information about: As already said, SAP S/4HANA for central finance foundation is architecturally a new S/4HANA system receiving financial accounting transactions via real-time replication from SAP or non-SAP ERP source systems. In addition, there are some solutions offered by Magnitude offers out-of-the-box integration between the most popular ERP systems and SAP Central Finance.