Managing Cash, Payments and Bank Connectivity with S/4HANA Treasury December 3, 2019 Christian Schmid, Customer Solution Advisor Treasury, SAP Disclaimer The information in this presentation is confidential and proprietary to SAP and may not be disclosed without the permission of SAP. Except for your obligation to protect confidential information, this presentation is not subject to your license agreement or any other service or subscription agreement with SAP. SAP has no obligation to pursue any course of business outlined in this presentation or any related document, or to develop or release any functionality mentioned therein. This presentation, or any related document and SAP's strategy and possible future developments, products and or platforms directions and functionality are all subject to change and may be changed by SAP at any time for any reason without notice. 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All rights reserved. ǀ CUSTOMER 2 SAP S/4HANA Finance supports Your Digital Transformation End-to-end innovation of all your processes across your entire value-chain ▪ Better decisions with instant, real-time insight and prediction Manufacturing & Supply Chain Digital Core People Engagement Customer Experience Network & Spend Management ▪ Increased performance SAP Intelligent Suite through end-to-end reinvented processes ▪ Higher productivity with Digital Age UX and intelligent assistance Intelligent Technologies AI/ML | IoT | Analytics ▪ Lower TCO with simplified architecture and cloud deployment Digital Platform Data Management © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER Cloud Platform 3 Treasury as part of the Digital Enterprise Supporting an ecosystem of connected processes Trading Platforms Digital Core Business Networks INDUSTRY SAP Multi Bank Connectivity Integration to other Systems Treasury and Working Capital Management SAP Trade Repository Reporting by Payments and Bank Communications Cash Management Secure Financial Risk Analyze, Control and Comply SAP Digital Payments SAP Credit Integration Market Data BLOCKCHAIN APIs ANALYTICS SAP Governance, Risk and Compliance * Machine Learning SAP Cash Application SAP Cloud Platform © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER REFINITIV is the new Brand name of ThomsonReuters 4 SAP S/4HANA Treasury Management Solution Comprehensive Solution Set Corporate Treasurer Treasury management Manage Payments and Bank Communications Electronic Bank Account Management Optimize Working Capital and Cash Electronic Bank Statements Secure Financial Risk Financial Risk Management Analyze, Control and Comply Treasury Management Analytics Payment Processing Controls, Monitoring and Alerting Cash Application Cash Operations Hedge Management Statutory and Regulatory Reporting Payment Factory and In House Bank Direct Bank and SWIFT Connectivity Cash Flow Forecasting and Liquidity Management Debt and Investment Management Receivables and Working Capital Management Smart Trading and Correspondence Market Data Integration Bank Relationship Management Accounting Treasury Governance S/4HANA Finance Integrated Intelligent Enterprise Solutions Digital Assistants, Machine Learning and Predictive Analysis © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER Apps & Services on SAP Cloud Platform SAP Analytics Cloud and Digital Boardroom 5 SAP Treasury Management and Working Capital SAP S/4HANA Treasury Management Solution Enhancements and Innovations to increase Productivity and Process Improvement Continuous Improvement of Cash Mgmt. Manage Payments and Bank Communications Intraday Bank Statement Market Data Optimize Working Capital and Cash Expand coverage of legislations Treasury Management Secure Financial Risk Bank Fees Analysis Liquidity Planning using SAC Smart E- Trading and Trading platform Automating Processes Analyze, Control and Comply © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER Treasury Reporting Foundation Corporate to bank connectivity Advanced Payment Mgmt. 6 Cash and Liquidity Management Solution Overview © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER 7 Recent Innovation Highlights SAP Cash and Liquidity Management Bank Account Management ▪ Central Management of all bank accounts and signatories ▪ Audit trail for changes to bank accounts ▪ Correspondence with banks ▪ Bank Fee import and Analysis Cash Position and Forecasting ▪ Cash Position Analysis with drill-down ▪ Cash Flow Analyzer ▪ Memo Records Management ▪ Cash Flow Snap Shots + Forecast-Actual comparison ▪ Automatic cash flows from Contracts, Leases and Parked docs ▪ Cash Pooling – Structure, execution and reporting ▪ Payment Monitoring ▪ Hybrid Cash Management (House Banks, Bank Accounts and external cash flows) © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER 8 Centralized bank relationship management in S/4HANA Enhance governance, control and compliance in bank account management Typical pain points SAP benefits ▪ Bank relationship management processes are decentralized and inconsistent across the corporation ▪ Leading practice processes to open, maintain and close bank accounts ▪ Governance, audit and compliance challenges due to lack of transparency ▪ Simplified and auditable bank account management processes ▪ Cumbersome manual account management ▪ Reduced administrative overhead with workflow orchestration ▪ Lack of integration with related processes (such as management of payments) ▪ Efficient signatory and documentation management ▪ Opportunity for bank account rationalization resulting in cost savings ▪ Regulatory reporting (e.g., FBAR) © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER 9 Bank Account Management A complete solution for managing bank accounts in your SAP S/4HANA system Bank Account Management enables the central management of bank accounts ▪ Maintaining bank account master data – Common account properties such as bank account number, IBAN, bank statement data, contact persons, and so on – Payment signatories with Integration to Bank Communication Management – Overdraft limits – Connectivity path that enables the integration with house bank accounts or bank accounts in remote SAP or non-SAP systems – Possibility to add attachments ▪ Managing bank accounts by – Standard Vies (Bank Hierarchy, Account List, …) – Custom Views (Cash Pools, Cash Centers, …) ▪ Workflow processes for opening, modifying, closing and reviewing bank accounts © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER 10 Bank Relationship Overview – Bank Fees, Payments and Bank Accounts © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER 11 Cash Operations – End-to-End Process Bank Master Data Cash Visibility Initiate Payments Payment Tracking Integrated Bank Account Management Get real time information about global cash balances Initiate Treasury payments including workflow management Release payment while checking signatories and monitor status of payment process © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER 12 One Exposure from Operations for SAP Cash Management Source Applications (remote and integrated) and Business Usage AP / AR Cash Position Cash Flow Analyzer Check Cash Flow Items Liquidity Forecast Develop Analyze Liquidity Plan Liquidity Plan Cash Flow Analysis SD MM File Upload TRM Providers for SAP Cash Management CML Web Service / IDOC FI-CA Central Finance One Exposure – FQM Key Figures for Cash containing Forecasts and Actuals Classic Cash Classic Liquidity Planner © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER AP / AR SD MM TRM CML FI-CA Promise to Pay 13 S/4HANA Cash Management powered by SAP HANA A complete cash and liquidity management solution © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER ▪ Cash Flow Analysis ▪ Cash Position ▪ Liquidity Forecast ▪ Liquidity Planning 14 Cash Flow Analyzer Variants Navigate to other Apps • • • • • • Cash Position Details Analysis Liquidity Forecast Details Analysis Actual Cash Flow Customization Check Cash Flow Item (CCFI) Make Bank Transfer (MBT) Other Features • • • • • Various dimensions and filters Dynamic data source Hierarchical structures Currency comparison Balance view and delta view Main View Bank Account Group View Liquidity Item Hierarchy View © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER Public 15 15 SAP Cash management Liquidity Planning using SAP Analytics Cloud (SAC) − Trigger a new planning cycle for developing a monthly rolling liquidity plan − Get reference data as planning reference. The reference sources can be: − Liquidity Forecast − Last Year Actual − Copy planning data from reference − Enter or adjust the planning data in planning currencies for the liquidity item, based on the reference and submit the data − Review planning data by planning currencies or aggregation currency view − Track the planning status of subsidiaries © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER 16 Payments & Bank Connectivity Solution Overview © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER 17 Global Cash Visibility in Real-time Cash Management, Payments and Bank Connectivity ▪ Consolidate cash flow data from SAP and non-SAP systems on a single Treasury Platform ▪ Review KPIs and execute decisions without switching systems ▪ Centralize bank account management including overdraft limits and analysis of bank risk Alliance Lite 2 • AP/AR • Payroll • Treasury • In-house Cash • Other… ▪ Run end-to-end processes for payments and statements ▪ Improve control and compliance with embedded tools for workflow, monitoring and change tracking Direct Bank Integration SAP Multi-Bank Connectivity S / 4HANA Manage Bank Accounts Capture Bank Balances Forecast / Planning Process Payment Bank Message Transmissions ERP Integration Messaging Management Multi-Bank Transaction Routing Security Mediation Bank Account Management and Cash Management Business Integrity Screening Governance and Control © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER 18 Payment Process - How SAP can support Bank Master Data Cash Visibility Manage Payments Integrated Bank Account Management Get real time information about global cash balances Initiate Treasury payments including workflow management © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER Payment Tracking and Screening Release payment while checking signatories and monitor status of payment process 19 SAP Cash Management Monitor Payments Monitor Payment With this app you can display an overview of your payment batches. You can view the statuses of batches and individual payments at different processing stages. Key Features ▪ View the history of a payment batch, from creation to completion ▪ Edit the due date for payment batches and the instruction keys for individual payments ▪ Access the details for banks, accounts, and payments ▪ See contact information for all approvers of the batch ▪ Navigate to the details of the payment medium file if it has been created ▪ Check the UETR of a GPI Payment © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER © 2017 SAP SE or an SAP affiliate company. All rights reserved. 20 Bank Integration Options in the past Customer domain, managed by customer & project based integration SAP PO S/4HANA / ECC Project based host-2-host SAP Integration Package for SWIFT SAP EBICS Adapter © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER 21 SAP Multi-Bank Connectivity Big Picture Alliance Lite 2 • AP/AR • Payroll • Treasury • In-house Cash • Other… Direct Bank Integration SAP Multi-Bank Connectivity S /4HANA Manage Bank Accounts Capture Bank Balances Forecast / Planning Process Payment Bank Message Transmissions ERP Integration Messaging Management Multi-Bank Transaction Routing Security Mediation Bank Account Management and Cash Management Business Integrity Screening Governance and Control © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER 22 SAP S/4HANA (Cloud) with SAP Multi-Bank Connectivity How does it work – Process Flow SAP S/4HANA Cloud SAP S/4HANA SAP Multi-Bank Connectivity © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER 23 SAP Multi-Bank Connectivity One Single Onboarding SWIFT Bank SAP Multi-Bank Connectivity SWIFT Bank SWIFT Tenant Connector Connector Connector ERP ERP S/4HANA SWIFT Bank Corporate Tenant 1 Bank Tenant Corporate Tenant 2 Corporate Tenant 3.. Member Bank Non-Member Bank Bank Tenant Member Bank SAP Cloud Platform © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER 24 Advanced Payment Management with Centralized Cash Management Highly integrated solutions enabling efficient treasury operations S/4HANA Cloud Cash Management Bank Account Management SAP S/4HANA on-premise SAP Business Suite SAP In-House Cash SAP Advanced Payment Management Non-SAP © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER SAP Multi-Bank Connector Treasury SAP Bank Communication Management AP/AR Alliance Lite 2 Direct Bank Integration SAP Multi-Bank Connectivity 25 Possibility of New Process Models with “Advanced Payment Management” With significantly upgraded standard SAP functionality for payments management With APM Only 1 Payments in name of – Payment Forwarding 2 Payments in name of – Payment Routing With APM + IHC 3 Internal Payments 4 Payments on behalf of IHC © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER 26 Running Advanced Payment Factory in SAP Summary of capabilities across various process models using APM Payment Centralization Real-time Processing Central Format Handling Content Validation and Control SAP Advanced Payment Factory Models Message Routing High Transactional Throughput Automation & Integration Exceptions Management In-house Banking © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER Monitoring, Reporting and Analytics 27 Overview of Advanced Payment Management New set of capabilities for running Payment Factories in S/4HANA SAP advanced payment management Non-SAP Payment Orders Alliance Lite 2 Agreement-based Routing SAP In House Cash Output Manager © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER SAP Bank Account Management SAP Accounting (GL) Direct Bank Integration SAP Multi-Bank Connectivity APIs File Handler Database, Original Data SAP Business Integrity Screening Incoming Enrichment & Validation Exception Handling Input Manager Outgoing Enrichment & Validation Transaction Clearing (Bulk/Direct/Queue) SAP Cash Management SAP Bank Communication Management 28 In-house Cash Management Virtualized bank for improved cash visibility and risk management operations Internal Payments and Netting ▪ Use internal current accounts to manage intercompany transactions ▪ Perform internal netting and monitor subsidiary positions After Before Centralized External Payments ▪ Route subsidiary payments through In-house Cash Center ▪ Manage cross border payments efficiently Centralized Cash Receipts ▪ Manage liquidity in In-House Cash Center through subsidiary cash receipts ▪ Independently apply cash in the subsidiaries to manage receivables Subsidiary © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER External Bank In-house Bank Vendor / Customer External Internal 29 SAP Treasury Management How to get there ? Run a secured Treasury your own way Flexible deployment options to suit your organization Cloud SAP S/4HANA Finance Single-tenant On Premise SAP S/4HANA Cloud for Finance SAP S/4HANA Finance Multi-tenant Subscription licensing with deployment in the cloud. Hosted either by SAP (single tenant and multi-tenant) or other cloud resource providers (single-tenant only). Traditional licensing with customer control of deployment and maintenance S/4HANA Treasury workstation (side-car) along-side SAP ECC or S/4HANA system delivers further flexibility to your transformation roadmap. © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER 31 Continuous innovations SAP S/4HANA Solution Upgrade Delivery Schedule SAP S/4HANA Cloud 1805 SAP S/4HANA Cloud 1808 SAP S/4HANA 1709 FPS01 SAP S/4HANA 1809 SAP S/4HANA 1709 FPS02 SAP S/4HANA Cloud 1902 SAP S/4HANA Cloud 1811 SAP S/4HANA 19xx SAP S/4HANA SAP S/4HANA FPS01 FPS02 Quarterly innovation cycle Annual innovation cycle Available today Available today Continuous innovation FPS = Feature Pack Stack © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER * This is the current state of planning and may be changed by SAP at any time without notice. 32 SAP Treasury Management The Future © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER 33 Roadmap Options How to move forward? Treasury Workstation on S/4HANA Business Suite Fin Acc S/4HANA Cash Mgmt. Mgmt Acc Payment SD TRM IHC MM 1 Any DB* SAP HANA DB Legacy SAP ECC Business Suite Treasury & Risk Management Mgmt Acc CM Payment BCM SD IHC MM TRM Central Finance w/ Treasury on S/4HANA X 2 Business Suite S/4HANA Fin Acc Cash Mgmt. Mgmt Acc SD MM S/4HANA Logistics Cash Mgmt. Supply Chain TRM Industries IHC TRM Payment Any DB (Non-HANA) Complete Business Suite on S/4HANA IHC Central Finance S/4 HANA Innovations Fin Acc Central Finance 3 Any DB* SAP HANA DB SAP HANA DB Hybrid Models X Decision Point 1 Treasury Workstation (Sidecar) on S/4HANA 2 Central Finance w/ Treasury on S/4HANA 3 Complete Business Suite on S/4HANA © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER * Includes HANA and non-HANA Databases 34 SAP Treasury Product Direction Leveraging emerging technologies and trends Integration across the enterprise and into the broader Treasury Ecosystem. Smart systems with real time business analytics and digital assistants. Platform approach for product innovations in the SAP Cloud Platform. Increased automation through Machine learning using data and algorithm-driven approaches. Thought leadership on emerging topics such as Blockchain and AI. © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER 35 Finance in S/4HANA Product road map overview - key process innovations Recent innovations Treasury and risk management – Basic coverage of legislations in foreign currency hedge management and accounting for US-GAAP Central finance – Improvements and simplifications for onboarding and operations – Finance data hub for consolidation Integration with business networks – Cost center integration with SAP SuccessFactors Employee Central and SAP SuccessFactors Employee Central Payroll Real Estate – Integration with Legal Content Management Cash management – Enhance liquidity forecast by integration of real estate data – Snapshot of historic cash position report – Bank fee import and report – Correspondence for Bank Account Management (on premise) 2019 – Planned innovations Treasury and risk management – Enhancement of treasury reporting capabilities – Expand coverage of legislations in foreign currency hedge management and accounting for US-GAAP Central finance – Enable cross-industry scenarios – Extended central AP/AR payment processing – Indirect tax reporting [new] – New capabilities for Central Projects [new] – Improvements and simplifications for onboarding and operations Real Estate – Optimizations for high-volume processes – Lease questionnaire – Integration of Ariba Network for procurement of real estate services Cash management – Liquidity Planning with SAP Analytics Cloud[new] – Cash Pooling with multiple layers[new] – Cash Manager Triggered Trade Request[new] Payments – Advanced payment factory capabilities [new] *Part of FP01 © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER 2020 – Product direction Digital transformation with contract accounting – Integration of Bank Communication Management Treasury and risk management – Adoption of future legal requirements – Treasury Analytics Central finance – Central Closing activities including soft close and prediction – Integration into advanced financial closing [new] – Additional central processes – Further financial reporting scenarios 2021 – Product vision Digital transformation with contract accounting ▪ Automation of the Service-to-Cash processes by leveraging machine learning and predictive models[new] Treasury and risk management ▪ Intelligent Treasury [new] Real Estate ▪ Digitize the Entire Building Lifecycle [new] Cash Management ▪ Intelligent Cash Management[new] Real Estate – Machine Learning to Optimize Real Estate Process [new] Cash management – Bank Relationship Dashboard – Increase automation of bank account management with electronic bank account management (eBAM) Integration with business networks – Comprehensive integration scenarios with SAP Ariba solutions, SAP Fieldglass solutions, SAP SuccessFactors solutions, and Concur solutions This is the current state of planning and may be changed by SAP at any time. 36 Thank you. Contact information: Christian Schmid Customer Solution Advisor Treasury Finance & Risk CoE Team EMEA North SAP Deutschland SE & Co. KG +49 6227 7 50935 +49 151 54346435