What’s New in SAP S/4HANA Cloud 2022? Finance Update Overview

Hi, I'm Michelle. Housing's part of the Global Solution
Management Organization and is focusing on financial risk. In this video, I'll walk you through
some of the key innovations delivered is epsilon, a cloud 2208 and S4 Hana 2022. And why especially during the last few years,
we have all witnessed that change is a constant in the world
we live in, particularly for finance professionals.

This means they play a key role
in transforming their business in a financially viable
and risk adjusted way, ensuring complete
transparency and optimization in how and where value is created
through their global supply chain. While keeping a close
look at texts and trade revelations while also putting everything
into perspective of the sustainability outcomes
that are set out by their organization with the latest
S4 Hana Liz We have had an extensive list of key innovations to support
finance professionals in addressing these challenges. Let's have a brief look at all
find is relevant processes as a starting point for our overview.

While we cannot possibly address
each innovation delivered across the different processes
shown for our different is apps for HANA deployment auctions will focus on
some which we believe are key. For more details on specific capabilities
and how to benefit from them, we have added a series of updated videos
to which we refer in the notes through this video. Let me start with the area of financial
planning and analysis where focus is on enabling group wide business
steering in the best possible way. Leveraging the combination of the power of is epsilon
a cloud and is API analytics cloud through increased integration
on the level of consolidated planning, which particularly looks
at the touchpoints between SASE planning and SLA HANA for group
reporting as well as the integration of predictive analytics
delivered with is epigenetics, cloud and predictive accounting, which sits
in the core S4, HANA environment as agility is key
not only in the way we plan and simulate, but also in terms of enabling a fast time
to value of a solution.

We are also
heavily invested in extending our pre delivered planning and simulation content, not only by adding additional processes
and connecting financial planning to sales planning
on top of the supply chain and workforce content integration,
which was already available before, but also by leveraging applied prediction
resulting in, among others, an out of the box
predictive liquidity forecast. As we are leveraging the smart prediction
capabilities delivered. This also comes with the advantage
of allowing finance users to get insights and influence
the way the predictive model works across the RFP
and record to report process, we find a second very fundamental
innovation of Epiphanic Cloud the ledger based approach to deal with multiple accounting
principles not only harmonizing the way we deal with multiple valuation
reviews across different areas like inventory, accounting assets
and so on, but enabling a more timely and increased transparency
in your global value chain.

A specific video
dealing with this innovation known as universal
payroll accounting is available. Moving on with the record
to report from this universe. While parallel accounting
is one of the key pieces in the evolution towards autonomous event based processing, in conjunction
with the introduction of event based processing and linked to this
the support of event based revenue recognition for more and more business
in iris making among others. The financial closing process,
more event based and ultimately touchless, also has driven
the delivery of additional intelligent automation cases,
both an entity as well as group level and both for standalone
as well as central finance setups.

Examples include augmented boosting rules
to automate consolidation of investments on one end,
but also central accruals management, enhanced RPA error resolution, flexible extensibility
of the underlying business foundation. Our single financial tools
also adds to increase process efficiency. One example I'd like to mention
is the inclusion of the consolidation unit's master data into the group ledger
delivering on the fly consolidation capabilities
without the need for data movements. Linking is a piece powerful business
foundation. Back to the business transformation
we started from at the start of this video brings up a requirement
many companies share the needs to manage organizational change. Providing profit center
reorganization is an important innovation in dealing
with the organizational flexibility. This comes in addition
to global hierarchies that includes time dependency features which have been around
since a while already. Delivering the single financial truth to the end user
can be done in different forms. There's been a lot of focus on analysis,
flexibility, making use of both the embedded
analytical capabilities in S4, Hana Cloud as well as is IP Analytics Cloud,
but the need to guide casual users along a progressive analysis
path in interactively providing answers to predefined business questions
has led to what we call review booklets initially delivered within the context of group reporting,
but plans to be rolled out to support sales of content
in performing margin analysis as well.

Shifting our focus
to the area of financial operations and the optimization
of your working capital, we get to the innovations delivered
in the area of payables, receivables and Treasury management is a significant
evolution impacting especially receivables and the closely related area of payment
management and bank communication is the rise of subscription and service
based business models. Many innovations are added in managing
receivables from a subscription perspective, which we refer to as contract
accounting and SAP for managing the contract
lifecycle up to installment plans and managing disputes for conversion
invoicing to better support a credit controller.

Not only did we add new payment
behavior of key figures, but also introduced
simulation capabilities with the aim to enhance payment
factory efficiency. We have added cloud based in-house banking as an integral part of our advanced
payment management capacity, allowing you to create an internal bank
on corporate level within this internal bank. Subsidiaries that are part of the group can open
or maintain internal bank accounts. From the subsidiary perspective,
these accounts are housed bank accounts and can be used in the same way
as the external house bank accounts. This allows you to settle intercompany
payments without using cash, see if bank connectivity and handling costs
and monitor are all payments centrally in trying to optimize the working
capital situation beyond even further. Also from the payable side,
let me refer to the Talia solution portfolio, which is fully complementary
to SPC for HANA Cloud and which is highly specialized
in managing payables, financing early payment with dynamic discounting
and more using own cash or through the Talia network. When starting this overview, we first
moved into the Steering and insights area.

Moving on to a link this to process
efficiency improvements delivered with S4 Hana Cloud. Now let's focus on how to assure the value which is created
for your company is protected or in other words, risk management and compliance. Rather than managing compliance, including
tax and international trade standalone. Our view is to embed these
into the operational process, enabling scalable
and traceable trade, tax and compliance to respond fast
to rapidly emerging mandates. That's where innovations like flexible mass data
transfer to SRP, global trade services on the trade side,
but also tax related controls with financial compliance management
coming to play on top, the ability to trace manual
adjustments for withholding tax items, automated certificates, registration
for indirect taxation abroad are just some of the indirect
tax specific innovations.

These and other innovations
in this phase of tax in international trade is an important area
for is AP to enable organizations across the world to address
the continuously evolving requirements with the evolution of document
and reporting compliance previously known as advanced compliance
reporting, providing electronic output enhancements, but also expanding
in the area of subscription businesses. Broader legal reporting
matters are interest document and reporting compliance combined
with the evolution of the core.

As for environment
and financial compliance, management have an important role from the compliance
side to sustainability. Double clicking
on financial compliance management. We not only extend the baseline content
to be used out of the box, but also invested in tasks and task list
templates, including workflow based follow up actions to enable organizations
to move from a sole reporting and monitoring and risk
compliance approach towards actionability. This also applies to the area of privacy
governance by introducing a risk response planning to reduce the probability
or the impact of potential risks, providing risk adjusted management not only serves in integrated
audits, compliance and risk approach, but embeds risks into the core decision
making process as well. This can nicely be illustrated
by looking at available integrated digital boardroom. As you can see these and other innovations
delivered with Is Epsilon, a Cloud Public Edition 2208
and as well on a Cloud Private Edition
2022 are instrumental to empower CFOs and their team
by delivering through our modular business tuning platform, combining analytics,
prediction and risk enabling reimagined processes, leveraging intelligent
technologies, supporting industries, agile transformation of their go to market
and their supply chain based on a unique business foundation
sustainably and resiliently.

Thanks to the cloud, we hope you'll enjoy the additional
deep dives into our innovations provided in a series of additional topic specific
update videos with his final thoughts. The only thing which is left is to
thank you for your attention..

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