Why SAP Simple Finance Is Adrenaline for Businesses

Why SAP Simple Finance Is Adrenaline for Businesses

Traditional enterprise resource planning systems (or ERP) seem good in theory: an integrated system of applications that can help an organization shape and improve its business processes. That is, of course, until the system is up and running.

As nearly any information technology professional will tell you, setting up an ERP is an incredibly time-consuming and detailed process that, depending on the size of the organization and the resources available, can take more than a year to plan for.

ERP systems are complex and involve everything from procurement and accounting to human resources and customer service, along with everything in between. Systems this large are destined to fail, but there is a better solution: SAP Simple Finance.

What Is SAP Simple Finance?

SAP Simple Finance is an ERP system that works in partnership with HANA, the company’s super powerful relational database management system. SAP Simple Finance was designed to be easy to use and offer finance professionals real-time granular insight into an organization’s operations.

The system provides a common view of data for all subsidiaries to help ensure enterprise-wide consistency while reducing run-time speed and errors. In a nutshell, it’s a powerful ERP system that is simple in its functionality. It runs on SAP’s S/4HANA platform, which has gotten rave reviews in the business community.

“To be a leader in the digital economy you have to spend less time on non-value added tasks, and introduce a fourth generation of applications that allow you to renew the customer promise,” according to Bernd Leukert, a member of SAP’s executive board for products and innovation. “S/4HANA is that revolutionary product that is way smarter and super intuitive to use.”

Leukert’s comments come from a VisionTree Ventures article. VisionTree is a leading business transformation consultant that helps organizations implement SAP Simple Finance and other SAP solutions. As VisionTree leaders know, by taking away the complexity in ERPs, SAP Simple Finance can help energize businesses with new focus as they grow.

Let’s look at some of the key features of SAP Simple Finance

Financial Planning and Analysis

SAP Simple Finance allows organizations to accelerate planning cycles. The system optimized the SAP Business Planning and Consolidation platform, allowing planners to access real-time master data with replication. In particular, organizations can run end-to-end simulations, making for faster planning cycles.

Some key elements:

  • Organizations can use real-time operational data to eliminate time lags and redundancy.
  • Users can also run on-the-fly financial analysis at any level with a single table in-memory.
  • Ability to support the entire financial planning lifecycle, including development, updates and reporting.
  • Organizations can run ad hoc simulations directly in the ERP system.

Accounting and Financial Close

SAP Simple Finance combines finance and management accounting into one journal, getting rid of the myriad of different tools and indices that added complexity in previous versions.

SAP Simple Finance allows organizations to execute closing tasks in real time, run real-time reports with complete drill down and use a single unified data model that helps increase productivity and reduce risks. The program also allows organizations to easily execute depreciation runs along with leverage line item posts for every asset that allows for detailed reporting.

Treasury and Financial Risk Information

Another key benefit is SAP Simple Finance’s risk management, which enables organizations to forecast cash flow and manage liquidity. This is key since organizations can get an idea where their finances will go and can decide if there is room to take risk or if they need to take a more conservative approach in the near term.

The system also includes SAP Cash Management, a tool that provides global cash positions in real time. This helps bring greater levels of consistency to cash balances, cash requires and liquidity strategy.

Some key features of SAP Simple Finance include:

  • The ability to integrate cash flow analysis along with business planning
  • Central bank account management.
  • Real-time visibility into bank balances and currency exposures.
  • Increase executive engagement with an intuitive and modern user interface.

Collaborative Finance Operations

SAP Simple Finance can automate receivables and payables processing, revolutionize shared services delivery and streamline travel management, among other important innovations. This allows customers to monitor payment behavior in real time, make proactive decisions and determine a customer’s top line contribution. The system also improves reconciliations and analysis with intuitive search functions.

The ‘Simple’ Choice

As you can likely tell from all of these features, SAP Simple Finance gives users all of the power of an ERP without the complexity that makes them difficult to use. With real-time information and integrated features, SAP Simple Finance makes life easier for business owners and their employees.

We are in an era of Big Data, a change in business structuring that some compare to the Industrial Revolution. For businesses to remain, or even be, competitive, they need to embrace data and analytics. It will allow for them to make smarter, informed decisions based on the most accurate information available.

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