Solutions

Transforming group financial closing: How SAP solutions can help

Streamlining the consolidation and reporting processes with SAP S/4HANA Group Reporting

Why do organisations struggle with group financial closing?

Based on a recent study by Deloitte, the first version of companies consolidated annual figures is only available to the CFO after 16.4 working days, on average. It is also estimated that less than 15% of CFO data requests can be responded to in less than a day.

One of the root causes of these slow response times is the very fragmented finance solution landscape. Today, finance teams spend too much time producing, validating, and reconciling information rather than analysing the information for insights.

At the same time, increasing the efficiency of finance operations, reducing costs, and replacing ageing group finance platforms are among organisations’ top strategic priorities as they aim to progress with their digital transformation journey and support their future growth. The need to improve is amplified by frequent changes in reporting requirements (from IFRS, ESG, tax, etc.) and the requirement for access to information in real time.
 

How S/4HANA Group Reporting can help

S/4HANA Group Reporting is SAP’s next generation consolidation and reporting solution. It builds upon the S/4HANA Universal Ledger as a single source of truth and paves the way for continuous accounting.

In this new paradigm, accounting, consolidation and reporting processes run on the same platform and leverage the same integrated data model and unified user experience to accelerate the end-to-end close process and provide real-time insights for decision-making.

The expected business benefits are:

  • one integrated environment that radically reduces data redundancy and reconciliation and improves the audit trail
  • tighter integration between local and group financial close processes, with group close activities (e.g., validations, intercompany reconciliation, etc.) performed at source, earlier and in a more continuous way
  • KPI and steering information at any time, not just at period end.

The journey with S/4HANA Group Reporting

The deployment of S/4HANA Group Reporting is considered crucial for any organisation undergoing a Finance Transformation journey.

To realise the full benefit of S/4HANA several deployment options are possible:

  1.  “Holistic” approach: deploy S/4HANA Group Reporting at the same time as the S/4HANA finance core solution.
  2. “Staggered” approach: first migrate your existing SAP ERP solution to S/4HANA (or implement a new S/4HANA core finance solution) and deploy S/4HANA Group Reporting in a second step.
  3. Implement S/4HANA Group Reporting first, either as a standalone solution or together with SAP Central Finance (CFIN); integration with the S/4HANA finance core solution is a potential next step.

Why Deloitte

A world leader in technology-enabled business transformation, Deloitte supports decision-makers in streamlining the group close processes and delivering their vision through distinctive Enterprise Performance Management solutions.

  • Thought Leadership – Deloitte has always demonstrated eminence in the finance industry for thought leadership on reporting, planning and consolidation with innovation and has also published numerous papers on these topics.
  • Credentials – We have been involved in 70+ S/4HANA Group Reporting projects, helping some of the largest companies in Europe and globally.
  • Capability – We have one of the most active communities with 200+ S/4HANA Group Reporting experts across the globe and nearshore and offshore delivery centres in Romania, India, and Spain. Our experts have been heavily involved in development of the product since the inception of the solution in 2017.
  • Experience – in 2023, Deloitte received 5 SAP Pinnacle awards for Customer Success and Intelligent Enterprise Innovation.

Let’s talk

Getting ahead of tomorrow’s challenges requires more than technology and a vision. It requires an ability to deploy comprehensive solutions that can evolve as your challenges and need for value grow.

A strategy and industry-specific guidance are needed. Deloitte can help.

Whether you simply want to explore insights on disruptive enterprise performance management solutions or find out how Deloitte can help you tap new potential, we’re ready to talk. Contact us to get the conversation started.

Fullwidth SCC. Do not delete! This box/component contains JavaScript that is needed on this page. This message will not be visible when page is activated.

Thibaud Mahmoudi

Thibaud Mahmoudi

Director

With 17 years of business and technical consulting experience, Thibaud is a Director in Deloitte’s Enterprise Applications practice. He is expert in Corporate Finance Processes and Enterprise Performa... More

Arun Ramanan

Arun Ramanan

Senior Manager

Arun is a Senior Manager with over 15 years of SAP Consulting experience. Arun has focused on implementing Financial Transformation, Analytics and Enterprise Performance Management (EPM) solutions for... More