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KatharinaR
Product and Topic Expert
Product and Topic Expert
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In today's fast-paced business environment, integrating financial data with cloud solutions for advanced analytics are essential for success.

SAP Central Finance and SAP Business Data Cloud (SAP BDC) offer a powerful combination that enhances financial management and data analysis capabilities. By leveraging these tools, businesses can streamline their financial processes and gain valuable insights into their operations. This blog explores how these two solutions complement each other, providing a comprehensive approach to managing financial data in the cloud.

SAP Central Finance is a robust, enterprise-grade solution that enables organizations to streamline their financial reporting and operational processes by providing a unified and harmonized view of all financial data, sourced from multiple ERP systems. Data is replicated from source logistics systems in real-time into a target SAP S/4HANA Private Cloud system, where it goes through specific business master data mapping and transformation routines before it is posted as accounting entries. Rather than adjust reporting structures aligned with your target operating model in multiple ERP systems, you can set up your future-ready business steering operational model in a single SAP S/4HANA Cloud system.

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To support the business users in their use of the central finance approach, SAP Central Finance also delivers use-case specific reconciliation reporting and error handling. These reports and tools ensure that finance teams can confidently rely on the centralized view of finance data.

This model can then be used for management and statutory reporting, but it also allows you to centralize financial transactions, ensuring consistency and accuracy in financial information. Payment and cash management centralization is a common use case where companies can achieve large efficiencies in cross-enterprise processing, compared to managing payments and cash in silos. Central Finance provides the harmonized finance data platform across all various customer ERP systems, helping finance teams make better decisions based on a trusted data foundation.

SAP Business Data Cloud (SAP BDC) was introduced by SAP in February, 2025, and is a comprehensive platform designed to streamline data management and analytics for businesses. It offers robust tools for data integration, processing, and visualization, enabling organizations to make informed decisions based on real-time insights. SAP Business Data CloudSAP Business Data Cloud

Managed by SAP, SAP BDC supports businesses in optimizing their data strategies and enhancing operational efficiency, especially when it comes to setting up and managing advanced analytics scenarios.

 

 

Benefits of using SAP Central Finance with SAP BDC

Accelerated time-to-value

Companies that have SAP Central Finance in place will be able to benefit from SAP BDC even faster, with an accelerated time-to-value for financial analytics scenarios. This is because rather than connect data from multiple SAP and non-SAP ERP systems to the SAP BDC, the connection would be from a single SAP S/4HANA Cloud system to SAP BDC. Therefore the existing investments made in the Central Finance approach, including settings such as the business-user defined mapping of data structures to the target model, SAP-delivered reconciliation reports, and business-user managed error handling processes can be reused.

Preserved business context 

SAP BDC can apply its deep understanding of the critical business context in SAP systems to all of your financial transactions, omitting the need to rebuild cross-system financial context to answer real-world business questions. This is critical for advanced AI and ML analyses often performed in a BDC environment which relies on robust and trusted data that is semantically aligned.

Real-time dashboards for tailored insights 

Your finance team will be able to address specific financial analytics challenges with dynamic, real-time dashboards that provide a clear view of the metrics that matter most to your business. The SAP BDC is the strategic analytic platform for SAP – giving analytics professionals the future-proof analytical environment and tools they need to understand your data in the context of its relationships and build analytics on top to answer the most complex questions. AI can be added to answer new questions.

Enhancing Strategic Planning with External Insights

To drive agile decision-making, businesses must complement internal financial data with market drivers and external factors such as economic trends, competitor performance, and industry benchmarks. SAP BDC enables this by integrating external data sources with the harmonized Central Finance model, providing a trusted, real-time view that enhances scenario planning and predictive analytics. This ensures organizations can proactively adjust strategies while maintaining data accuracy and control. 

Delivery channel for partner-delivered Insight Apps

Partners can use SAP-sourced Data Products, the standardized data fabric, and the SAP partnership with Databricks to augment the Central Finance data with more external data. This data can be combined in Insight Apps - dashboards, advanced analytical scenarios, or specific machine learning or AI-driven use cases. Customer and partners alike can build on SAP data products with their expertise. SAP BDC is designed to make key capabilities available to SAP partners so that our partners can deliver use case-specific, geography-specific, or industry-specific insight apps to their SAP customers through the SAP BDC ecosystem.

Want to learn more?

Read here to learn more about Finance use cases for AI in the SAP BDC.