Managing Cash, Payments and Bank Connectivity
with S/4HANA Treasury
December 3, 2019
Christian Schmid, Customer Solution Advisor Treasury, SAP
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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
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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
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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
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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
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Treasury Reporting
Foundation
Corporate to bank
connectivity
Advanced
Payment Mgmt.
6
Cash and Liquidity Management
Solution Overview
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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)
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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)
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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
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Bank Relationship Overview – Bank Fees, Payments and Bank Accounts
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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
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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
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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
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▪
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
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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
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Payments & Bank Connectivity
Solution Overview
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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External
Bank
In-house
Bank
Vendor /
Customer
External
Internal
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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.
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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
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* This is the current state of planning and may be changed by SAP at any time without notice.
32
SAP Treasury Management
The Future
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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
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* 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.
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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
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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