The link between SAP and Finance starts from way back: in 1973, almost fifty years ago, the first software solution marketed by SAP was precisely for financial management. In the meantime, the world has changed considerably, but aspects related to purchasing, sales, and economic management in general are still among those receiving the most attention.

Similarly, the figure of the CFO has also changed and is changing over the years. Whereas at one time he or she could be considered almost an analytical and supervisory figure, today the chief financial officer is increasingly involved in decision-making and strategic processes as well. If we add to this change the fact that decisions must be made in ever shorter time frames and with ever smaller margins for error, it seems natural that the CFO must rely on increasingly robust, effective and efficient tools. Management control in SAP proves to be the best solution.

SAP: management control is in the DNA

Let us take a moment to look back at some moments in SAP’s history, to reiterate the point: for example, when SAP introduced the HANA suite, the Finance / Controlling module was the first to be migrated to the new platform, precisely because financial processes are the ones that, more than any other, needed (and need today, even more so) top-level process speed and advanced analytical capabilities.

From risk management to billing through collectability, today SAP S/4HANA allows all aspects to be managed effectively, powerfully but above all practically, even for operators who need quick consultations.

With SAP, management control at the highest level

In SAP, the CO (Controlling) module is one of the main functional elements, supporting the process of monitoring and reporting financial operations within an organization.

In addition to the features already listed and valid in general terms, this module provides detailed information on expenses and income, enabling companies to manage and control their financial operations efficiently.

The CO module integrates with other SAP modules, such as SAP FI (Financial Accounting), to ensure complete financial management. Some of the key features of SAP CO include:

  • Cost center management;
  • profit accounting;
  • project accounting;
  • order accounting.

These features help companies track and analyze their financial performance, establish budgets, and make informed decisions.

As we can see, SAP CO is an essential tool for companies that wish to have a clear and detailed view of their financial operations, in concert with the other capabilities offered by the ecosystem facilitating controlling.

Why choose an SAP-based management control system

Very often when we dwell on the benefits of the SAP ecosystem, we tend to consider functionality first, forgetting one of the key aspects, namely convenience and ease of use for operators. In this, the SAP Fiori user interface enables a considerable level of customization and operational speed.

The CFO will have quick access to all the tools needed for periodic analysis, but also for instantaneous or contingent data extractions.

Also related to the more practical aspects is undoubtedly the ability to take in and use data in real time, thanks, for example, to Universal Journal, which brings together financial and accounting data in a single platform, again allowing real-time access to the data. From a data management point of view, SAP S/4HANA’s data source allows for real-time reporting, while eliminating the need to anticipate planned operations, for example, to generate the reports themselves, but also containing the amount of duplicate or overlapping information in other systems or areas, such as that dedicated to Business Intelligence.

The winning features of management control in SAP

When talking about the benefits of management control in SAP, one should not forget some of the key features of the ecosystem, especially in the area of automation. In the case of the Finance and Controlling area, some tools, for example, theautomation of the active and passive invoicingcycle are also intended to eliminate repetitive or low value-added tasks from the business tasks. Still in the realm of platform features that also turn into benefits for the CFO, we find three that are worth mentioning.

The first is undoubtedly the centralization that takes place through the aforementioned Universal Journal and allows for complete visibility into financial transactions. The main advantage is, as always, not having to spend time and resources on data collection and correction, lowering the risk of errors due to missing or duplicate data and so on. With a robust and reliable database, CFO response time can be reduced considerably.

Then we must undoubtedly mention the analytics included in the SAP S/4HANA system, which can also and especially be used on real-time data. This makes it possible to make choices and decisions even on a day-to-day basis and even in minute activities, for example suggesting a specific discount for a customer to sales.

Finally, we must not forget the new features that make use of machine learning, again with the aim of automating work as much as possible where low value-added tasks are present. New smart Apps such as Cash or GR/IR, for example, automatically associate payments with invoices, or goods received with incoming invoices. All this relies on machine learning to make the process increasingly automatic.

At Regesta, we offer training courses that provide the theoretical and practical skills on Management Control common to all companies.

View testimonials from participants in the first edition of our Controlling Pathway and for more information contact us without obligation.