Transforming Financial Closing
At SAP, we are committed to continuous innovation and process improvement. We are delighted to announce that our financial entity closing tasks have been successfully transitioned to the SAP Advanced Financial Closing (AFC) tool. This new AFC tool enhances automation, providing a more intuitive and user-friendly method for automatically assigning context parameters such as financial periods and fiscal years. By adopting AFC, we now offer a more flexible and streamlined approach to managing financial units, significantly reducing the number of manual tasks, and simplifying the overall closing process.
Why Move to AFC?
SAP Advanced Financial Closing (AFC) is a financial closing automation and simplification solution deployed in the cloud. It offers a range of benefits designed to streamline and enhance our financial processes:
- Efficiency and Speed: AFC accelerates the closing process by automating repetitive tasks, allowing our finance teams to focus on high-value activities.
- Automation and Minimal Intervention: Tasks that previously required manual scheduling are now automatically triggered, reducing the need for constant monitoring.
- Enhanced User Experience: The modern interface of AFC simplifies processing and reporting, making it user-friendly and efficient.
- Future-Proof Technology: As we phase out the FCC (Financial Closing Cockpit) tool, AFC not only redefines how we manage financial closings but also keeps us at the forefront of technological advancements. Being a cloud-based solution, AFC is always up to date, ensuring we benefit from continuous support, improvements, and the latest features.
Impressive Milestones
The transition to AFC has been implemented across two productive systems, encompassing numerous tasks and users:
- Wide Adoption: Live on 200+ company codes with thousands of automated tasks.
- High Volume Processing: Over half a million FI documents are posted each Quarter, highlighting AFC's robust capabilities.
- Automation at Scale: A sizeable portion of job tasks start automatically, primarily driven by standard SAP reports, with additional support from SAP Build Process Automation bots.
- User Engagement: A selected group of users across various areas is leveraging AFC to streamline their work streams.
- Comprehensive Visibility: Key performance indicators and metrics are readily available each quarter, providing transparency and insights.
- Process transformation: the complete retirement of the Financial Closing Cockpit (FCC) and begins a new era of enhanced efficiency and automation in our financial closing processes.
Standard Implementation Experience
Transitioning to SAP Advanced Financial Closing (AFC) is a streamlined process that covers various technical and operational aspects to ensure a smooth integration. Here are the key components involved:
- Comprehensive Setup: Implementing AFC requires the setup of the Business Technology Platform (BTP), which provides a robust foundation for integrating and running the AFC tool. This platform supports seamless connectivity and scalability.
- Job Parametrization: Tailoring new task models to meet specific business needs. This involves configuring job parameters to ensure tasks are executed efficiently and accurately.
- Task Analysis and Preparation: Identifying and defining closing tasks with a strong focus on transparency and automation. This step ensures that all tasks are clearly outlined and ready for automated processing.
- User-Friendly Transition: Conducting extensive end-user testing to validate the system's performance and usability. Setting up authorization protocols and user group access to maintain security and facilitate a smooth transition for all users.
- Technical and Functional Integration: Ensuring the integration of AFC with existing SAP systems and workflows. This includes addressing functional requirements and ensuring compatibility with other financial processes.
- Business and Authorization Aspects: Managing business rules and authorization settings to align with organizational policies. This step ensures that users have the appropriate access and permissions to perform their tasks effectively.
Key Benefits of AFC
Advanced Financial Closing offers a unified platform that connects multiple finance areas, providing numerous advantages:
- Streamlined Setup: Easily create and assign closing structures and templates, with mass change capabilities.
- Automation and Monitoring: Tasks start automatically, with real-time monitoring and error recognition.
- Notifications and Support: Configurable notifications and built-in help functionality for inexperienced users enhance the experience.
- Security and Stability: Robust system security and stable authorization protocols ensure data integrity.
- Bot Integration: Seamless connection with automation bots facilitates smooth task execution.
- Customizable and Documented: Easy task modelling and accessible documentation simplify audit processes and maintenance.
Time Savings and Efficiency
AFC significantly reduces the time required for complex financial closing processes:
- Automated Calculations: AFC streamlines complex financial calculations and reconciliations, automating tasks that previously required extensive manual effort. This automation reduces the risk of errors and accelerates the completion of financial activities.
- Faster Financial Closing: By automating repetitive and time-consuming tasks, AFC shortens the overall financial closing cycle. Tasks that used to take days can now be completed in a matter of hours, allowing finance teams to focus on analysis and strategic planning.
- Real-Time Data Processing: AFC enables real-time data processing and consolidation, ensuring that financial data is accurate and up to date. This immediacy supports faster decision-making and enhances the agility of the finance function.
- Reduced Manual Intervention: The elevated level of automation within AFC means that less manual intervention is needed. Automated workflows and task triggers ensure that processes are executed efficiently and consistently, freeing up valuable time for finance professionals to engage in higher-value activities.
- Improved Accuracy and Compliance: Automation within AFC reduces the likelihood of human error, leading to more accurate financial statements and reports. This increased accuracy supports compliance with regulatory requirements and enhances the overall integrity of financial data.
Streamlining Financial Processes
AFC redefines the way we handle financial closings:
- Manual vs. Automated: Automated tasks in AFC vastly outperform manual processes, providing unparalleled efficiency.
- Secure and Reliable: AFC offers a secure and stable environment for all financial closing activities.
- User-Friendly and Customizable: Easy task maintenance, parametrization, and modelling enhance workflow optimization.
- Growing Adoption: Increasing numbers of users and finance areas are adopting AFC, demonstrating its effectiveness and scalability.
The successful implementation of AFC at SAP was made possible through the collaborative efforts of our dedicated team members and the product team. Together, we have navigated this transformative journey and look forward to further advancements in our financial closing processes.
Our journey to implement SAP Advanced Financial Closing has been extensive but incredibly rewarding. The transition to AFC marks a significant milestone in our ongoing commitment to innovation and efficiency. We are excited to share the benefits of AFC with our customers and partners, demonstrating our thought leadership and dedication to transforming financial closing processes. We invite you to join us in embracing this innovative tool and experience the enhanced efficiency, automation, and user experience that AFC offers. Together, we can continue to drive innovation and achieve new heights in financial excellence. Thank you for your continued support and trust in SAP.
