Do You the Know the Top 10 Benefits for SAP financial analysis in the Latest SAP Enhancement Package 4:
Financial Analysis
While there are many benefits to implementing SAP, improved Financial Performance via better SAP Financial Management and Reporting is one of the primary drivers of almost every SAP Implementation.
Make More Informed Decisions
SAP ERP Financial Management is a powerful tool that enables executives and finance experts to make more informed decisions. By providing comprehensive financial management transparency, improving efficiency in reviewing and analyzing financial data, and simplifying access to relevant information, SAP ERP Financial Management empowers users to quickly and easily identify trends, opportunities, and potential risks.
For example, in the Professional Services industry, SAP ERP Financial Management can help executives and finance experts to better understand project profitability, resource allocation, and cash flow. With real-time access to critical financial data, they can quickly adjust their strategies and tactics to maximize profits and minimize risk. Overall, SAP ERP Financial Management is an invaluable tool for any organization that wants to stay ahead of the competition and achieve its financial goals.
SAP EP4 Benefits Include:
- Designed to support the complete FTM process.
- Comprehensive financial management transparency.
- Improves efficiency in reviewing and analyzing financial data.
- Simplifies access to relevant information.
- Provides extensive data access to the following:
- New General Ledger including profit center and segment reporting (no profit center reports provided in regular new gl cube).
- Reporting available on both new GL tables and itemized BSEG/BKPF tables.
- AR
- AP (7 reports versus the standard 1 including AP aging reports)
- Product Costing
- Cost Center Accounting
- Internal Orders
- Asset Accounting
- Investment Management
- Profitability Analysis
- Closing cockpit (provides analysis capability related to finance closing activities with plan/actual date/time by task).
- All reporting areas provide efficient SAP BW replicated reporting and real-time reporting from the same report (selector filter field provides quick access to both from the same query).
- Summarized data and line item data available for all reporting areas listed above. Analytical reporting and operational reporting provided.
- Most reports include report-report interfaces (jump reports) and/or links to relevant ECC applications (t-codes or reports).
- Extensive free characteristics and filter options included out of the box for most reports versus limited filter/free characteristics options in regular reporting content.
From a BW perspective, the biggest improvement that SAP EH4 provides:
- Much more business content out of the box compared to the new GL cube everyone uses.
- It provides regular SAP BW reporting with data stored in SAP Business Warehouse.
- Allows the the SAP user to switch over to real-time reporting by a simple selector in the filter screen for every finance area.
Other Improvement Areas
Finance departments will appreciate the many improvement to these financial reports and the new ease with which you can prepare them.
- Income Statement
- Cash Flow Statement
- Financial Statement Analysis
- Shareholders Equity Reporting
Improved Business Operations
Top management will appreciate the improvement provided by SAP EH4 and subsequent Enhancement Packages to business operations as will their corporate finance departments.
The system now has much be ability to report:
- Net Income.
- Gross Profit
- Operating Profit
- Operating Profit Margin
- Profit Margin, by LoB, Cost Center and Geographic Segments, among many other operating segments.
- Net Profit Margin
- Total Sales
- Net Sales
Financial Analyst Job Made Easier
There are people who we wear the hat called financial analyst who work inside and outside companies. SAP makes both sets of people's job easier. Due to the integrated nature of SAP, it is much easier to cost effectively determine or perform:
- Ratio Analysis
- Current Ratio
- Equity Ratio
- Intrinsic Value
- Sensitivity Analysis
- Leverage Ratios
- Current Assets
- Rate of Return including IRR
- WACC
- Production Variance Analysis
- Profitability Ratios
- Trend Analysis
- Liquidity Analysis
Corporate Financial Analysis
SAP EP4 also provides additional capabilities to the corporate financial analyst. This helps with:- Bottom Up Analysis
- Horizontal Analysis
- Vertical Analysis
- Performing Fundamental Technical Analysis
- Break-Even Analysis
- Financial Modelling
- Acquisition Evaluation
- Financing Activities Evaluations
Long Term Gross Profit Margin Improvement
The enhanced SAP financial management capabilities included in the latest SAP Enhancement Package 4 offer clients a range of benefits that can significantly improve a firm's financial health over the long term. By providing comprehensive financial management transparency and simplifying access to relevant information, SAP ERP Financial Management empowers executives and finance experts to make more informed decisions. This tool enables users to quickly identify trends, opportunities, and potential risks, as well as to understand project profitability, resource allocation, and cash flow. With real-time access to critical financial data, organizations can adjust their strategies and tactics to maximize profits and minimize risk. SAP EH4 also provides additional capabilities to the corporate financial analyst, helping with bottom-up analysis, vertical and horizontal analysis, performing fundamental technical analysis, break-even analysis, financial modeling, acquisition evaluation, financing activities evaluations, and long-term gross profit margin improvement.
SAP EP4 Consulting and Implementation
SAP BW Consulting, Inc. can help organizations implement any SAP Enhancement Package, including the latest SAP Enhancement Package 4, as well as upgrade to SAP S/4 HANA. Our team of experts can assist organizations in creating comprehensive financial statements, including Cash Flow, Balance Sheet, and Income Statements, while also improving financial closing and consolidation activities.
Improved Financial Management Transparency
With our assistance, organizations can benefit from improved financial management transparency, better efficiency in reviewing and analyzing financial data, and simplified access to relevant information. We can also help organizations stay ahead of the competition and achieve their financial goals by providing real-time access to critical financial data, enabling quick adjustments to strategies and tactics to maximize profits and minimize risk.
Request SAP Implementation Support
If you need help with the installation and selection of the enhanced functionality of SAP EH4, please contact us.
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