The diversity and number of today’s reporting regulations mean that companies need to produce financial figures faster and more frequently. As a result, enterprises need smooth, efficient, and reliable financial operations as well as integrated and just-in-time financial reporting. They must also contend with a variety of external financial requirements.
The comprehensive set of financial processes in SAP Business ByDesign supports companies by providing converged accounting data that not only helps them comply with regulations like the International Financial Reporting Standard (IFRS) and the International Accounting Standard (IAS), but also facilitates management decision making. Thus, results in a streamlined, multipurpose, multidimensional, and integrated accounting system.
The key financial capabilities supported by SAP Business ByDesign:
- Working capital optimization
- Multi-GAAP accounting
- Unified financial and management accounting
- No reconciliation effort within accounting
- Enhanced transparency
- Separation of responsibilities
Cash Flow Management
For any companies to survive, positive cash flow is essential. Therefore, SAP Business ByDesign provides sophisticated and automated financial processes that enable organizations to minimize the risk of non-payment and reduce days sales outstanding, which leads to accelerated and transparent payment.
1. Multi-GAAP Accounting
International accounting information requirements have increased dramatically. And also, companies need to comply with various reporting regulations. In SAP Business ByDesign, the separation of operational and accounting functions make ample provision for parallel accounting.
2. Unified Financial and Management Accounting
SAP Business ByDesign addresses the trend toward merged management and accounting figures providing an accounting system which is streamlined, multipurpose, and multidimensional (for example, profit and cost center), as well as integrated.
3. No Reconciliation Effort Within Accounting
SAP Business ByDesign provides a complete and direct audit trail from financial statements to the individual documents. And also, consistent and binding structures for accounts, periods, and currencies eliminate the need for special ledgers.
4. Enhanced Transparency
SAP Business ByDesign helps companies to meet country-specific regulatory requirements. Also, it provides a transparent audit trail, which presents data from various sources including top-level aggregated figures, valuated single items, and the original data for a given process (from source documents).
5. Separation of Responsibilities
SAP Business ByDesign facilitates the separation of operational financial processes and the valuation of posting documents in financial accounting. The most significant advantage is that operational systems do not need to consider any accounting principles or valuation standards.
Let’s have closer look at the key financial capabilities of SAP Business ByDesign on this whitepaper.