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How to better aid your CFO in his
pursuit of true balance sheet integrity
Rob Leesberg
www.runbook.com
What you will gain from this session
You’ll learn how to enhance your
finance function in SAP®, with:
• Consistent execution of account reconciliation & certification
• Key financial controls and well-maintained audit trails
• Effective financial close management
About Runbook
FIRST RELEASE IN 2001
250+ INSTALLATIONS AT ‘GLOBAL 5000’ COMPANIES
25000+ USERS AROUND THE WORLD IN SHARED SERVICE CENTERS,
BPOS, CORPORATE AND REGIONAL FINANCE DEPARTMENTS
RUNBOOK is an SAP gold partner
(SAP software and technology
solution partner)
----------------------Available on the SAP Store
----------------------Runbook solutions are certified for
integration with SAP HANA
----------------------Runbook solutions are SAP certified
and embedded into SAP applications
---------------------------
Introducing myself
• Rob Leesberg
• Certified SAP Financials consultant since 1995
• Chief of Solution Design & Cofounder
Rob Leesberg
Solution design / Founder
Runbook Inc.
(973) 409 1445
[email protected]
Session outline
•
Overview of Runbook solutions to assure balance sheet integrity
•
Overview of TRUE Reconciliation in SAP
•
Overview of SMART Close in SAP
•
Overview of SAFE Controls in SAP
•
Real-time analytics with SAP HANA®
•
Lessons learned from global roll-outs
•
7 key points to take home
Balance Sheet Integrity
Runbook ONE: An integrated solution
Session outline
•
Overview of Runbook solutions to assure balance sheet integrity
•
Overview of TRUE Reconciliation in SAP
•
Overview of SMART Close in SAP
•
Overview of SAFE Controls in SAP
•
Real-time analytics with SAP HANA®
•
Lessons learned from global roll-outs
•
7 key points to take home
TRUE Reconciliation overview
What is account reconciliation and analysis?
Reconciliation
Verification of General Ledger account balance to a source document which can
be system generated such as subsidiary ledger or a manually maintained
supporting schedule such as computation of the Returns Provision or even a
third-party document like bank statement.
Analysis
The documented process of thoroughly examining the components and activity
of an account. To perform a proper analysis, having access to sub-ledger
information is crucial. The level of an analysis may vary depending on the type of
account.
.
Reconciliation Execution
Account
Overview
Overview of single or grouped accounts, giving the
accounts reconciliation status
Account
Item View
Account
Template
Account
Balance
Tracker
For each account item all available months in the
reconciliation year are displayed
For each month a separate template is created to
reconcile/analyze the account
If accounts are line item/open item managed, single
postings can be analyzed and grouped together
The execution screens are like the Russian Doll – Matrioshka, they
are one inside the other. They can also be accessed separately but
you can cascade from the largest one to the tracker of a specific
account Item.
Reconciliation Execution
Execute
My Accounts
Area /
Comp Code
Status
Open Actions
Risk Level
Account
Overview
Mass Submit
GL Account
Currency
GL Balance
Rating
Reconciled
Balance
Value @ Risk
In each of the execution screens, selections can be made to filter out the whole set of
possible output values. For the desired set of selections, a variant can be created to
be further used and ease the access of the screens.
Reconciliation Execution
Account
Overview
Account Item
View
Account
Template
Reconciliation
Submit
Account template is the
place where actual
reconciliation is performed.
Comments
Account balance breakdown into categories
Account
Overview
Account Item
View
Account
Template
Account
Balance
Tracker
Assigned line
items
Unassigned line
items
Attaching reconciliation documentation
Account
Overview
Account Item
View
Account
Template
Account
Assigned
Balance Sub
Tracker
ledgers
Break down the account balance into
categories using the Account Balance
Tracker.
Managing follow-up actions
Account
Overview
Action status and
details
Action comments and user
explained actions
Account Item
View
Account
Template
Actions
All open actions related to a specific
account
Managing action items
Session outline
•
Overview of Runbook solutions to assure balance sheet integrity
•
Overview of TRUE Reconciliation in SAP
•
Overview of SMART Close in SAP
•
Overview of SAFE Controls in SAP
•
Real-time analytics with SAP HANA®
•
Lessons learned from global roll-outs
•
7 key points to take home
SMART Close overview
SMART Close integration
 Import closing tasks from existing spreadsheets
Define and control corporate and local closing tasks
Periodic check lists, pre-close activities, closing tasks, Internalcontrols, report verifications,
manual processes , milestones and notifications
Reaching higher levels of automation and management by exception
Control Execute and Monitor
Roll out tasks to other location and systems
 Trigger, monitor and document tasks
through central cockpit
Dependencies between global and local tasks
are maintained
Enforce standards with flexibility
Consistent execution
Documented result
Monitor outsourced activities and KPI
measurement
Manage by exception
Month-end team checklist
Workflow
dependencies
Control sign-off for
IC related tasks
Clear process
overview:
what, who,
when.
Execution Icon &
task status
Responsible task
executors
Automation with Exception Management
 Automatically verify report output and sign off on in case of positive verification
 Automatically trigger workflow and documentation
 Highlight items outside tolerance limit
Examples of PEC Chapters to be
automated with exception mgt:










AR & AP sub ledger – GL Reconciliation
Fixed assets sub ledger – GL Recon
Check EDI invoices (IDOC’s) for errors
Currency Revaluations & Translations
Opening / closing of periods MM/GL/CO
CO Assessment and allocation cycles
PCA Assessment and allocation cycles
Asset PEC process Cycle
Regrouping of AR & AP
Etc.
Runbook customers
have automated over
70% of PEC steps that
were previously manual
On-line status monitor
Status per
process task
Clear process
overview of
the status for
multiple
entities.
Overall status
cross all
entities
Status per
entity
Session outline
•
Overview of Runbook solutions to assure balance sheet integrity
•
Overview of TRUE Reconciliation in SAP
•
Overview of SMART Close in SAP
•
Overview of SAFE Controls in SAP
•
Real-time analytics with SAP HANA®
•
Lessons learned from global roll-outs
•
7 key points to take home
SAFE Controls overview
Managing internal control exceptions
Progress
monitor
Browsing
Internal control
progress,
details and
Exceptions
Selection of
reporting
characteristics
Details per
Control
Characteristic
Internal control log and drill-down capabilities
Control logging
Control review
functions for
exception
management &
issue resolution
Details per
Control
Characteristic
Testing monthly controls using the IC test module
Jan
Feb
Mrt
April
May
June
July
Aug
Sep
Oct
Nov
Control assessment
Dec
functions
to test if all
controls are performed
correctly
My assigned
controls
Based on the
periodic
performance and
sign-off per control
Effectiveness test
result and
documentation per
control
Session outline
•
Overview of Runbook solutions to assure balance sheet integrity
•
Overview of TRUE Reconciliation in SAP
•
Overview of SMART Close in SAP
•
Overview of SAFE Controls in SAP
•
Real-time analytics with SAP HANA®
•
Lessons learned from global roll-outs
•
7 key points to take home
SAP HANA integration for real-time monitoring & KPIs
All mobile devices / SAPUI5 / Qlikview
Demo
SAP BW / BO
DALLAS
Real-time in Runbook
Available on the SAP Store
Runbook App for Action Management:
1. Overview
2. Dashboard
3. List of my actions
4. Details
Session outline
•
Overview of Runbook solutions to assure balance sheet integrity
•
Overview of TRUE Reconciliation in SAP
•
Overview of SMART Close in SAP
•
Overview of SAFE Controls in SAP
•
Real-time analytics with SAP HANA®
•
Lessons learned from global roll-outs
•
7 key points to take home
Lessons learned
Source CFO Siemens Global Shared Services
Drivers for a business case
Key Figures
Possible savings of more than
50% on number of people
involved in the process
Integration SAP
Automation
• No checks anymore between reconciliation and GL
• No checks for consistency to assign new GL
accounts in the reconciliation process
• Improved risk profile because of integration of IT
controls
• Substantial part of the activities is automated. =>
Savings of 50%
• Low-risk controls will be automaticaly
executed (values < x, not older < x days, etc)
• GL versus subledger
• Less reveiw actvities: only for those not automated
Action Management
Balance Sheet Reconciliation process
• More efficiency and effectiveness:
• Mandatory registration of actions (risk
minimalized)
• Central overview of open actions (due date,
action holder, value of open actions)
• One overview, different levels
• Less time for reconciliation (integrated in SAP; done
only for current period because of carryforward )
• More effective becausue of clear audit trail (open
balance, reconciliation, explanation and evidence
on line item level instead of on total level)
• Use of SAP functionality for analyses (drill-down to
details, filters , etc)
- SAP CoCo: #
- GL accounts: #
- Automation: # %
- Employees in the process: #
Session outline
•
Overview of Runbook solutions to assure balance sheet integrity
•
Overview of TRUE Reconciliation in SAP
•
Overview of SMART Close in SAP
•
Overview of SAFE Controls in SAP
•
Real-time analytics with SAP HANA®
•
Lessons learned from global roll-outs
•
7 key points to take home
7 key points to take home
Accurate Data
High Process
Transparency
End-to-end View
Complete
Documentation
Delivery in Time
Workflow and
Collaboration
Cost Savings
 Correct sequence of reconciliation steps automatically assured
 Reconciliation steps can be automated with success criteria and management by exception
 Real-time integration with your SAP general ledger and sub ledger accounts
 Clear responsibilities for each step of the process
 All steps in one tool (regardless of activity split), facilitating harmonization
 ERP reports created and stored centrally and automatically
 “Who performed which task when” automatically documented (incl. results)
 Audit relevant reports stored in one common location (audit trail)
 Timely execution of sub-steps avoids time pressure (night shifts, extra effort)
 Closing steps can be run in parallel and in an automated or semi-automated way
 Embed monthly finance functions and controls into your SAP system
 Transparency on approval and clarification process
 Time saved through automation allows management by exception
 Harmonized processes allow more efficient resource allocation
About Runbook ONE
http://www.runbook.com/runbook-one
Upcoming Webinars
http://www.runbook.com/webinars March 27th; April 24th
Runbook User Group
Runbook, Inc.
100 Valley Road, Suite 103
Mt. Arlington, NJ 07856
Rob Leesberg
Solution design / Founder
Runbook Inc.
(973) 409 1445
[email protected]