Finance & Controlling (Execution & Planning)

Financial Accounting

Financial accounting focuses on documenting and summarizing business transactions and generating periodic reports on a company’s financial outcomes and position. It ensures a single source of truth for general ledger and subledger applications, integrated in real-time with logistics operations and a comprehensive audit trail.

This system enables financial reporting and immediate, self-service analytics from detailed operational data.
It enhances efficiency, allowing for quicker and less costly book closings, and facilitates faster, more informed decision-making.
By incorporating advanced tools like SAP CoPilot and machine learning applications, the process further enhances collaboration and automation.

Financial Reporting

Enhance understanding of financials to streamline the process, reduce costs, and mitigate the risks associated with regulatory filings and disclosures. Financial reporting involves generating statements that reveal an organization’s financial status to management, investors, and regulatory bodies.

Speed up financial reporting and disclosure through data-driven decision-making. Leverage embedded analytics to obtain insights that facilitate swift and confident actions.
Uphold high accounting standards by analyzing details in financial statements and their source applications, like materials management or sales and distribution.
Produce precise, detailed reports and clear metrics to enhance visibility into the factors driving the business.
Minimize risks and ensure compliance with regulations such as IFRS, local GAAP, or U.S. GAAP.
Provide auditors with online information and tax retention functionalities for regulatory or tax audits.

Accounting & Financial Close

Increase the accuracy, compliance, and efficiency of entity close processes through automation and standardization. Entity close entails the reporting of financial close data by individual operating units to the central accounting team.

Speed up the entity close process by implementing automation and standardizing procedures.
Enhance corporate governance, disseminate best practices, and boost efficiency by using standardized templates across various entities and closing cycles.
Establish a single source of truth for all financial figures, thus eliminating the need for reconciliation, by utilizing a universal journal.
Facilitate forward-looking enterprise performance management with predictive close capabilities.

Revenue and Cost Accounting

Automate and streamline the processes of revenue recognition and cost accounting, which entails managing the detailed procedure of revenue recognition.

Ensure compliance with revenue recognition regulations, particularly those effective in countries that follow both U.S. GAAP and IFRS.
Simplify the workload of revenue accountants by automating the processes of revenue recognition and cost accounting.
Enhance accuracy by continuously updating cost accounting practices to reflect changes.
Minimize reconciliation efforts by integrating revenue recognition processes directly into the universal journal, ensuring all entries are consistently reflected.

Overhead Cost Management

Collect, analyze, evaluate, and report profit and loss information to increase overall profitability. Managing overhead costs includes supervising, modifying, and controlling spending categories, along with examining specific cost elements.

Develop a comprehensive perspective to understand cost drivers and reasons for underperformance.
Obtain thorough, precise, and immediate information to assist managers in boosting overall profitability and operational effectiveness.
Enhance outcomes while reducing interference with essential processes by providing access to vital financial data.
Employ preconfigured planning scenarios for cost center and profit center planning.

Product Costing

Product Costing requires an in-depth analysis of the costs and margins associated with each product to manage product portfolios effectively and facilitate period-ending activities. Determine the cost of goods manufactured or sold, breaking it down by each stage of the production process.

Provide a unified source for product cost and material valuation information without the need for actual costing application.
Facilitate period-closing processes using calculated costs for work in progress, variances, scrap, and product cost settlements.
Utilize production-related cost data that automatically centers on actuals and supports isolated simulations of production cost changes.
Accurately evaluate costs with a product cost management system tailored to the manufacturing process type, including engineer-to-order, make-to-order, and make-to-stock scenarios.

Profitability Analysis

Identify your most profitable customers, products, and channels to enhance decision-making. Profitability analysis entails assessing profit or contribution margins by market segment or strategic business unit.

Align resources with your strategic goals by understanding your organization’s profitability drivers and cost structures.
Incorporate profitability segments into the universal journal in real time, enabling instant access to profitability data for reporting throughout the month, predictive margin insights, and more efficient month-end closings for quicker decision-making.
Explore transfer pricing to gain clear insights into the internal supply chain.
Leverage embedded analytics for immediate access to financial data.
Enhance decision-making with instant, role-specific insights into current conditions and the flexibility for spontaneous reporting and analysis.

Acounts Payable

Streamline how you record and manage accounts payable data from vendors.

Enhance accounts payable procedures by integrating them in real-time with purchasing software.
Ensure records are up-to-date by synchronizing accounts payable postings with the general ledger immediately.
Improve liquidity planning by updating cash management records with invoice data in real-time.
Facilitate compliance with local rules and regulations by utilizing country-specific payment formats.

Accounts Receivable

Efficiently manage customer accounts receivable.

Competently record and manage data for customer accounts receivables.
Implement real-time, automated invoice-to-cash processes.
Automatically trigger postings to accounts receivable in response to sales and logistics transactions, and simultaneously record these postings in the general ledger.
Streamline the process of recording postings in the general ledger and automatically clear customer line items upon receiving payment.
Quickly access insights into receivables metrics such as days sales outstanding and bad debts to promptly address issues with customer payment habits.
Enable real-time operational reporting accessible on any device.
Seamlessly integrate data with SAP or third-party applications for enhanced dispute, collections, and credit management.

Cash Management

Cash management involves managing cash and liquidity centrally.

Supervise the cash forecast.
Monitor the liquidity cross-multiple entities.
Manage payments and bank accounts centrally, and improve internal control.

Debt and Investment Management

Optimize borrowing rates, investment costs, and capital structure with real-time insights into debt and invfestments.

Efficiently manage the entire lifecycle of debt and investment instruments.
Achieve clear visibility into your enterprise’s debt and investment positions.
Monitor and mitigate counterparty risk effectively.
Automatically incorporate cash flows into cash forecasting.
Simulate and automatically generate and post entries to the general ledger.
Automatically receive market data and utilize it for treasury functions.
Seamlessly integrate payments with cash operations.
Employ dashboards to get a comprehensive view and detailed analysis of the maturity profiles of financial instruments.

Cash and Liquidity Management

Cash and liquidity management focuses on monitoring cash flows to ensure adequate liquidity for meeting payment obligations.

Consolidate cash flows from throughout the enterprise into a centralized view.
Access real-time updates on cash positions and cash flow forecasts.
Create detailed long-term liquidity forecasts using integrated planning tools.
Employ the SAP Analytics Cloud solution to plan and manage long-term liquidity.

Monitor and manage payments across the enterprise.
Centralize payment operations via a single platform using the SAP S/4HANA Finance solution for advanced payment management.
Manage the lifecycle of bank accounts and minimize bank fees.
Operate an in-house bank to handle processes such as payments on behalf of others, collections on behalf of others, and intercompany netting.
Link cash management practices with banking partners through the SAP Multi-Bank Connectivity solution.