SAP Master Data Governance

Central Governance of Financial Master Data

Based on SAP Master Data Governance on SAP S/4HANA 2021
November 2021

PUBLIC
Agenda

Financial Master Data in the Business – Situation and Challenges

The Solution: SAP Master Data Governance for Financials

Functions in Details

The Solution Benefits

Summary

Appendix

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 2

Situation and Challenges
The need for Financial Master Data Governance

Maintain consistency across Streamline and automate Tracking and tracing

data sources processes of changes

▪ Strong data maintenance and ▪ Centrally governed ▪ Change documentation on

approval guidance maintenance processes content
▪ Validation checks built into ▪ Role-based workflows with ▪ Workflow tracking on
data entry processes flexible routing approval history
▪ Data distribution control to ▪ Business Rules to control ▪ Validity tracing of time-
manage varied content over content and assignment controlled distribution
multiple systems options

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 3

Situation and Challenges
Financial Organizations’ Master Data

Current Challenges Impacting Your

▪ Lack of data standards/policies

Operational Efficiency
▪ Manual data management processes

▪ Increasingly complex regulations Regulatory Compliance

▪ Lack of change transparency/audit trails

▪ Inability to manage time-dependent data provisioning Planning & Analysis

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 4

Situation and Challenges
How can Financial Master Data Governance help?

54.2% best
6 worst
90% average

96% best
81% worst

2.8 average 18.6% average

11.8% worst
1.2 best
Hours per week employees Decrease in business
spend searching for information process cycle time
Aberdeen Group SAP Value Engineering

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 5

Agenda

Financial Master Data in the Business – Situation and Challenges

The Solution: SAP Master Data Governance for Financials

▪ Process
▪ Content
▪ Architecture
▪ Technology

Functions in Details

The Solution Benefits

Summary

Appendix

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 6

SAP Master Data Governance for Financials
At a Glance

▪ Master Data Governance for Financials (MDG-F) is an application to centrally govern the maintenance of
financial master data.
▪ MDG-F provides central steering and control mechanisms independently of local or centralized execution.
▪ In MDG-F, master data records can be created, completed or changed in a staging area, following a
distributed step-by-step way, before making the record available to connected business applications.

Centrally
Govern

MDG-F Distribute Business

Applications
Create/
maintain

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 7

SAP Master Data Governance for Financials
Addresses all business processes

Consistent financial master Collaborative maintenance

data across the entire
organization Traceability of changes for compliance
requirements
Controlling

Accounting

Consolidations

Internal Audit

Excellence in financial processes, that is, High quality of master data and a single
accurate reconciliation, timely group closing version of the truth

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 8

SAP Master Data Governance for Financials
Building Block Overview

Content Architecture Technology

Process
Business Rules

Search Maintain Validate Approve Replicate

Edition Management

▪ Data Models ▪ Staging area ▪ UI and

▪ Extensibility ▪ Deployment configurability
▪ Replication ▪ Integration

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 9

SAP Master Data Governance for Financials
Processing Framework

Financial Accounting Financial Controlling Financial Consolidation

Create Change Business Rules

Block Replicate Maintain Validate Approve Replicate

Mark for Deletion

Edition Management

Requestor Corporate Data Steward Data Specialist

Accountant
Accountant Approver

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 10

SAP Master Data Governance for Financials
Edition Management

Editions are used to control the validity of a change. In the edition, planned change requests for
the creation of new data or for changes to existing data are collected and released collectively at
a certain date. Time-dependent objects (profit or cost center) automatically inherit the valid-from
date from the edition’s valid-from date.

Edition

Changes collected for release at a dedicated Ad-hoc changes to be executed immediately,

valid-from date: using any open edition.
release release release release release release release release
01.01 01.04 01.07 Ad hoc Ad hoc Ad hoc Ad hoc Ad hoc

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 11

SAP Master Data Governance for Financials
Intuitive, Integrated Maintenance

SAP MDG-F offers an intuitive interface to efficiently maintain financial master data in an integrated
fashion. Instead of navigating through multiple tabs and switching between organizational
structures, the key users work with a browser-based interface. For less frequent users, FIORI-based
applications are offered.
G/L Account (Chart of Account) and Request new Cost Center (FIORI) Financial Reporting Structure and
Company Code Data Financial Reporting Structure Item

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 12

SAP Master Data Governance for Financials
Work with Changeable Keys

When a user requests a new financial master data item, they frequently do not know yet the
number to be used in the consuming applications. To provide flexibility to the requestor and meet
corporate numbering standards, the single-object maintenance in SAP MDG-F offers the feature to
use a generated key first, then change it to the desired final number in a later step of the creation
process.

Request Enrich

New Profit Center: New Profit Center:

111 440117
Production Line TY17 Production Line TY17

MDG-F Create Process

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 13

SAP Master Data Governance for Financials
Hierarchy Assignment in Single-Object Processing

Master Data and Hierarchy Assignment in the same Main Financial Objects UI simple copying
▪ Cost Center
▪ Profit Center
▪ Cost Element
▪ Cost Center Group
▪ Profit Center Group
▪ Cost Element Group
▪ G/L Account
▪ Financial Reporting Structure Item
In addition to ERP:
▪ Overview of all assignments in all
hierarchies Standard Hierarchy Group
▪ Display and maintain not only
standard group, but also alternative
hierarchies on one screen Multiple Alternative Hierarchies

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 14

SAP Master Data Governance for Financials
Integrated Change Request

▪ For all multiple-objects processing applications:

 Hierarchy Processing  File Upload  Mass Change

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 15

SAP Master Data Governance for Financials
Process Efficiency Features

▪ Copy multiple company codes: Create multiple

company code-specific G/L accounts through the
copy function

▪ One-step creation of cost element:

automatically create the primary cost element
connected to a new account in the same
maintenance step. This is standard for primary
cost elements and optional with S/4HANA 1809
for secondary cost elements.

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 16

SAP Master Data Governance for Financials
Internal Order Master Data

Innovation in MDG 9.2 / S/4HANA 1809

▪ Central maintenance and governance of internal order
master data
▪ Replicating internal orders via IDOC from MDG system to
S/4HANA or ERP
▪ Initial load of internal orders into MDG (e.g. from SAP ERP or
SAP S/4HANA)

Business value:
▪ Centralized governance, compliance and transparency of
master data during creation and change through integrated
staging, approval and central audit trail
▪ Consistent definition, authorization and replication of internal
order master data, keeps data consistent cross systems
▪ Elimination of error-prone manual maintenance processes for
internal order master data in multiple systems

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 17

SAP Master Data Governance for Financials
S/4HANA Simplification: Merge cost element into G/L account*
Innovation in S/4HANA 1809:
▪ Central maintenance of controlling data (cost
element) integrated into the G/L Account user
interface
▪ Replication of cost element data to S/4HANA can be
done via the G/L Account IDOC and SOA service
Business value:
▪ Simplified maintenance of financial master data
▪ Harmonized behaviour as in SAP S/4HANA
▪ Simplified replication channel to lower TCO
SAP MDG on SAP S/4HANA
SAP S/4HANA G/L

G/L Account Outbound G/L Account SOA or IDOC G/L Account Inbound CE

MDG G/L MDG CE SAP ERP

G/L Account Outbound G/L Account SOA or IDOC G/L Account Inbound G/L

Cost Element Outbound Cost Element SOA or IDOC Cost Element Inbound CE

*) Adoption of the universal journal for SAP S/4HANA is only available in SAP MDG on SAP S/4HANA. Not planned for SAP MDG on ERP. Cost Elements in SAP ERP
© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 18
SAP Master Data Governance for Financials
New Copy Function for Company Code G/L Accounts (1)

Innovation in S/4HANA 1909:

▪ New option to copy or replace larger numbers
of accounts and their company code assignment to
a new company code by various selection criteria.​
▪ The new or changed objects are included in a
Change Request for Approval

Solution Benefit:
▪ Easy to use and gain efficiency
▪ Available from releases S4/HANA 1610 and MDG
9.0 onwards
▪ Visit SAP Note 2888104 and
SAP Note 2923340 for more information

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 19

SAP Master Data Governance for Financials
New Copy Function for Company Code G/L Accounts (2)

▪ The copy feature is integrated into the G/L

Account search list, and it is triggered by a sub-
option of the existing “Copy” button.
▪ It results in a change request of type “ACCAP1”,
with the Logical Action “MASS”.
▪ The source selection is restricted to one company
code. Use the search criteria or manual selection.
▪ The target edition and target company code need
to be specified in a popup​.
▪ The selection shall comply to the following rules: ​
– Exactly one Source Company Code
– Exactly one Chart-of-Account (Source and Target
company code must have the same Chart-of-
Accounts)
– Exactly one Source Edition per line (per Account
and Company Code)​

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 20

SAP Master Data Governance for Financials
Edition Comparison for Hierarchy Assignments

Innovation in S/4HANA 2021:

▪ You need to find changes in a big hierarchy
between two editions? Use the edition comparison
tool for hierarchies.
▪ Only choose your entity type, the editions, the
organizational unit of the hierarchy and simply mark
"Compare hierarchies". The intuitive comparison
screen shows you the exact differences in a tree
and makes them easy to find.
▪ The comparison result is propagated to the top
level.
Solution Benefit:
▪ Easy to use and gain efficiency
▪ Available from releases S4/HANA 1809 onwards
and MDG 9.2
▪ Visit SAP Note 3043517 and
SAP Note 3043582 for more information

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 21

SAP Master Data Governance for Financials
Replication of Hierarchy Groups

Innovation in S/4HANA 2021: Solution Benefit:

▪ After a change to a hierarchy group text the ▪ Easy to use and gain efficiency
replication of the hierarchy data needed to be ▪ Available from releases S4/HANA 1809 onwards
manually triggered. With this new feature, the and MDG 9.2
replication of changes to group texts is
▪ Visit SAP Note 3068256 and
automatically triggered. Thus, the data is in in
SAP Note 3043582 for more information
sync between MDG and the target systems.

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 22

SAP Master Data Governance for Financials
New Account Type "Cash Accounts" for G/L Accounts

Innovation in S/4HANA 2021:

▪ You like to reduce the number of G/L accounts and
simplify the payment process and cash reporting
for bank accounts?
▪ Use the new account type "Cash Accounts" in the
MDG-F UI. When you define your G/L Account as
G/L Account subtype "Bank Reconciliation
Account", you can assign this to more than one
house bank account. When you choose "Bank
Subaccount", you can enter an account as
"Reconciliation Account". This is a G/L account
that you have created as "Bank
Reconciliation Account" in a previous change
request.

Solution Benefit:
▪ Simplified maintenance and gain efficiency
▪ Available from release S4/HANA 2021 onwards

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 23

SAP Master Data Governance for Financials
Budget Availability Control for Cost Centers

Innovation in S/4HANA 2021:

▪ You like to reduce the number of G/L accounts
and simplify the payment process and cash
reporting for bank accounts?
▪ To control budgets in your cost centers, use the
new fields in the "Budget Control" section of the
MDG-F Cost Center UI. Select
the availability control checkbox, add the
"Budget-Carrying Cost Center" and choose the
"Budget Availability Ctrl Prfl".
▪ For this solution, you only need to synchronize
the availability control profile customizing from
S/4HANA with the newly introduced MDG
customizing in a hub scenario.

Solution Benefit:
▪ Easy to use and gain efficiency
▪ Available from release S4/HANA 2021 onwards

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 24

SAP Master Data Governance for Financials
New "Open Item Management by Ledger Group" field

Innovation in S/4HANA 2021:

▪ You want that journal entry line items are managed
on an open item basis by ledger group for my G/L
account?
▪ Select the newly introduced checkbox of field "Open
Item Mgmt by Ledger Group" in the company control
data of your G/L account in the MDG-F G/L account
UI. This is relevant if you perform parallel accounting
using the ledger approach and not the account
approach.
▪ The indicator is only available when you have
assigned more than one ledger to the company code
relevant for the G/L account.

Solution Benefit:
▪ Simplified maintenance and gain efficiency
▪ Available from release S4/HANA 2021 onwards

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 25

SAP Master Data Governance for Financials
Usability Features in Single-Object Maintenance UI

▪ Side panel / Business Context

Viewer:
Context information can be displayed
in the side panel to provide further
related information about the current
data record, e.g. the change history
▪ Highlight Changes:
Fields that were changed in the
previous step are highlighted in
colour

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 26

Agenda

Financial Master Data in the Business – Situation and Challenges

The Solution: SAP Master Data Governance for Financials

Functions in Details
▪ Hierarchy Management
▪ Flexible Edition Management
▪ Architecture and Deployment
▪ Integration

The Solution Benefits

Summary

Appendix

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 27

Function in Details: Usability Features
Hierarchy Processing

Easy Actions supported for multiple objects:

▪ Drag & Drop
▪ Move Up, Down
▪ Rank Higher, Rank Lower
▪ Copy & Paste or Paste at Lower Level
▪ Cut & Paste or Paste at Lower Level

Easy to use:
▪ Select multiple sub nodes of one node and carry
out any of the actions above.

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 28

Function in Details: Usability Features
Hierarchy Processing (2)

Direct Access/Insight to Hierarchy Change

by clicking icons:
▪ Pending Change Request
▪ Change Document

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 29

Function in Details
Hierarchy Interlocking

Loose interlocking provides additional flexibility

H1 ▪ Strict Interlocking (Default) ▪ Loose Interlocking (New Option)

H1 Same parent
Upwards and Downwards
A1 A1

B1 B1
C1
C1
C2 D1
C2 D1
D2
D2

B2 B2
C3
C3
D3
E1 D3
D4 E1
D4
A2 A2
C4
B3 D5 B3
C4
D5

Node currently maintained in a pending change request Interlocked: You must use the pending change request Not Interlocked: You can use a separate change request
© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 30
Function in Details
Hierarchy Interlocking (2)

The settings can be found in the Implementation Guide (IMG):

Master Data Governance, Central Governance>General Settings>Process Modeling-

>Hierarchies>Define Scope for Changes

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 31

Function in Details
Flexible Edition Management

Easy and flexible scheduling of changes

▪ Use and combine as many editions as you need
▪ Reschedule changes across editions

Intuitive access to business objects across validity timeframes

▪ Access master data through timeframes

Granular control over replication timing

▪ End user can decide when to replicate changes

*can also be used for MDG-CO (Custom Objects – Flex Option)

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 32
Function in Details: Flexible Edition Management
Flexible Scheduling – simple example

Valid On Released In Process

01.06.2014
Creation
date active inactive

Account D (re-scheduled from E1)

E2
Account C

Account A

Account B
E1
Account A

01.04.2013 01.04.2014 Edition Validity

(Q2 2013) (Q2 2014)

Use and combine as many editions as you need:

For example, Account B has been added within E1 with unlimited validity as there is no change in E2
Reschedule changes across editions:
For example, a pending change of Account D in E1 can be moved to E2
© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 33
Function in Details: Flexible Edition Management
Flexible Scheduling – End-to-End Example

T1 T2 T3 T4

Valid On Released In Process

Creation today 01.06.2014
date active inactive

20000-A6
E6
20000-A5
E5
20000-A4*
20000-A4 E4

90000-B3 E3
20000-A2
E2
90000-B1
E1
20000-A1

01.04.2013 01.07.2013 01.10.2013 01.01.2014 01.04.2014 01.07.2014 Edition validity

(Q2 2013) (Q3 2013) (Q4 2013) (Q1 2014) (Q2 2014) (Q3 2014) Final State

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 34

Function in Details: Flexible Edition Management
Flexible Scheduling – Use as Many Editions as you Need

T1

T2

T3
T4
T2

Editions used in the

past (released).

Editions used today

(for future planning)

Edition used today (for changes

in the current quarter) Final State

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 35

Function in Details: Flexible Edition Management
Intuitive Access - Through Search

T1

T2

T3

T4

Display Account

Create Change Request

Intermediate State
Master Data is accessed using the timeframe including the date of the change.
Request change in Q3.2013 or Q4.2013? Use timeframe Q3.2013 – Q1.2014 ( T2 ).
© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 36
Function in Details: Flexible Edition Management
Transparency About Changes - Across all Timeframes

T2

T1

T3

Intermediate State

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 37

Function in Details: Flexible Edition Management
Flexible Scheduling – Reschedule Change Requests

T1

T2

T3
T4
T2

T3

T4

T2

Reschedule one or more Change Requests to different edition

User is able to reschedule changes that have to be postponed or made at an earlier stage.
© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 38
Function in Details: Flexible Edition Management
Controlled Data Replication - Characteristics

Replication Timing
▪ Edition-Based: “Manually Started after Release of Edition”
▪ Change Request-Based: “Automatically after Approval of Change Request” or “Selected in Each Change
Request”

Object-Based Replication
▪ Manual replication (for example, from Search): independent from Replication Timing defined in the edition

Time-Dependent and Non-Time-Dependent client systems and objects supported

▪ Replication is placed on hold if needed and started when possible (scheduled report)

See also report USMD_EDITION_REPLICATE for scheduling replications

▪ Refer to the MDG-F Configuration Guide for details

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 39

Function in Details
Standard Objects in Data Model 0G

Data Objects can be flexible

extended to specific needs,
according to the backend and
target systems.

For S/4HANA 1809 and MDG 9.2

releases, the new entity type
“Internal Order” has been added.

For S/4HANA 2021, entity types

"ACCCCDET" (View Company
Code on Account) and "CCTR"
(Cost Center) have been
extended.

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 40

Function in Details
Deployment

▪ MDG is delivered as business functions within S/4HANA or via AddOn to SAP ECC

▪ Deployment as standalone hub or on top of existing ERP instance

▪ Optional embedding of HANA search
S/4HANA
▪ Replication into various applications Business
Suite on
including S/4HANA HANA
SAP ERP
HANA

AnyDB
MDG

Example: SAP ERP

AnyDB
Non-SAP

AnyDB
“”
MDG is pre-integrated with SAP ECC, and provides publish/subscribe and master/slave implementation modes with
automatic distribution to SAP and 3rd party applications.
Aaron Zornes, The MDM Institute
© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 41
Function in Details
Replication

▪ MDG-F replicates the data according to the needs of the connected business systems. This is independent
of the deployment option, if MDG is used on top of one of the operational ERP systems, or as a standalone
MDG data hub.

SAP S4HANA
SAP MDG-F
Operational CoA SAP ERP
Corporate CoA
Consolidation Units Operational CoA
SAPSEM-BCS
SAP SEM-BCS
Corporate CoA
Corporate CoA
Consolid. Units
Example
Non-SAP Non-SAP Landscape
Corporate CoA Corporate CoA
Consolid. Units Operational CoA

Corporate Group Local Systems

Systems

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 42

 Function in Details: Replication
Integration technology (elective)

Web Service (SOA)

ALE / IDoc
MDG-F
RFC
File

Sample Available Models

Replication Outbound Description Replication Outbound Description
Model Im pl. Model Im pl.
SOA_ACC 1010 Replication model for Account (SOA)
IDOC_ACC 1012 Replication model for Account (IDoc)
SOA_CCTRH 1110 Replication model for Cost Center Group Hierarchy (SOA)
SOA_CELE 1180 Replication model for Cost Element (SOA) IDOC_COST 1102 Replication model for Cost Center (IDoc)
SOA_CELEH 1190 Replication model for Cost Element Group Hierarchy (SOA) IDOC_CCTRH 1112 Replication model for Cost Center Group Hierarchy (IDoc)
SOA_COA 1000_V1 Replication model for Chart of Account (SOA) IDOC_CELE 1182 Replication model for Cost Element (IDoc)
SOA_COMP 1140 Replication model for Company (SOA)
IDOC_CELEH 1192 Replication model for Cost Element Group Hierarchy (IDoc)
SOA_COST 1100 Replication model for Cost Centre (SOA)
SOA_FRS 1020 Replication model for Financial Reporting Structure (SOA) IDOC_PCTR 1122 Replication model for Profit Center (IDoc)
SOA_PCTH 1130 Replication model for Profit Center Group Hierarchy (SOA) IDOC_PCTH 1132 Replication model for Profit Center Group Hierarchy (IDoc)
SOA_PCTR 1120 Replication model for Profit Center (SOA) IDOC_IORDER 1200 Replication model for Internal Order (IDoc)
SOA_IORDER 1201 Replication model for Internal Order (SOA)

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 43

Function in Detail: Fiori App
Request Cost Center or Profit Center

You can also use Fiori apps to request

a new cost center or a new profit center.

These apps can be flexibly used on a

variety of devices including tablets and
smartphones.

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 44

Function in Detail: Fiori App
Approve Cost Center, Profit Center or G/L Account

Approve new object: Only entered fields are Approve change: Only changed fields
displayed (with old values) are displayed

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 45

Function in Detail
SAP MDG Support of Central Finance (S/4 HANA Finance)

Key Mapping Table

Business Partner / Central Finance System A System B MDG-F

Customer / Supplier Cost Center 410133 444113 104113 (Central Governance)
Customer 11004267 105450 A4782316
Local systems SAP MDG,
Consolidation
Central Finance Business Mapping ECS Error Correction
Accounting Interface / MDG Suspense Accounting

▪ In an SAP Central Finance usage scenario, Central Finance Business Mapping / Error correction
Accounting Interface MDG handling
MDG-F can optionally serve as the central
master data governance application to ensure
high quality and consistency for financial master
Universal Journal Entry
data
SAP ERP
▪ In addition, MDG Consolidation can create the Central Finance instance

necessary key mappings for customer and

Central Finance on S/4 HANA Finance Instance
supplier data by many-to-one matching, and
keep them updated
Universal
SAP S4/HANA Journal Entry

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 46

Function in Detail
MDG Framework Capabilities: Enable Duplicate Check in Edition-Based Data Model

▪ The duplicate check is enabled

for edition-based data models
and can be used if required
also for Financials or custom
data models which are edition
based.
▪ Available from
releases S4/HANA 1809
onwards and MDG 9.2
▪ Visit SAP Note 3036535 and
SAP Note 3043582 for
more information

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 47

Function in Detail
MDG Framework Capabilities: Download Hierarchy as Hierarchical View to MS Excel

▪ Applications ‘Hierarchy
Processing’ and ‘Collective
Processing' provide an
additional option to download a
hierarchy as MS Excel file. The
hierarchy information is kept
and features of MS Excel for
filtering/ navigation are reused.
▪ Available from releases
S4/HANA 1809 onwards and
MDG 9.2
▪ Visit SAP Note 3016473 and
SAP Note 3043582 for more
information

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 48

Function in Detail
MDG Framework Capabilities: Recall Change Request

▪ As a requestor, I want to have the ability to recall the request after it has been routed for approval and before
the request has been approved.
▪ The change request should be
routed back to me, as I may
realize that additional changes
are required and might need to
recall it to add the data.
▪ An additional action
‘Recall by Requester’ is delivered
and can be used to setup
corresponding change request
step and workflow.
▪ Available from releases S4/HANA
1809 onwards and MDG 9.2
▪ Visit SAP Note 3018966 and
SAP Note 3043582
for more information
© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 49
Function in Detail:
MDG Framework Capabilities: Fuzziness Threshold for Attributes in SAP HANA-Based Search

▪ You want to search using the operator ‘equal to’ (‘is’)

so that it doesn’t behave as if you use the operator
‘contains’.
▪ The fuzziness threshold for
attributes can be customized.
A threshold of 1.0 will run an
exact match search for that
attribute and hence behave
as ‘equal to’.
▪ Available from releases
S4/HANA 1809 onwards and
MDG 9.2
▪ Visit SAP Note 3036524 and
SAP Note 3043582
for more information

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 50

Function in Detail:
MDG Framework Capabilities: Archiving

• The general recommendation is to archive change

requests. Archiving removes the change requests
from the database and moves them to an external
storage. This will reduce the size of the database
and improve performance.
• Only change requests in a final state can be
archived, namely in the statuses Final Check
Approved or Final Check Rejected. You can still
access archived change request from the
application Display Change Requests including their
(archived) change documents.
• Further information:
• SAP Note 2574330 (Archiving and deletion of
change requests)
• Online Documentation on Data Archiving in MDG

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 51

Agenda

Financial Master Data in the Business – Situation and

Challenges

The Solution: SAP Master Data Governance for Financials

Functions in Details

The Solution Benefits

Summary

Appendix

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 52

Solution Benefits
SAP Master Data Governance for Financials

What can be improved? How can SAP Master Data Governance help? What benefits can be achieved?

Process efficiency
▪ Intercompany reconciliations Greater governance across local and corporate systems ▪ Faster financial close
▪ Period closing ▪ Automation of data maintenance through integrated ▪ Increased coordination across operating units
▪ Corporate controlling validations, derivations and role-based transactional ▪ Increased trust in reporting data
guidance
▪ Financial consolidation ▪ Reduced cost of finance as a percentage of
▪ Reduction of manual correction work due to “First Time revenues
Right” data entry
▪ More automation in reconciliation of charts of accounts
across multiple ledgers

Exec. Mgmt. and

Division Corporate Internal Audit/
External
Controller Controller Compliance Stakeholders
Intercompany Corporate
Divisional Internal audit Regulatory
reconciliation consolidations
period cut-off & validate numbers reporting
& local close & flash reports

SAP Master Data Governance

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 53

Solution Benefits
SAP Master Data Governance for Financials (2)
What can be improved? How can SAP Master Data Governance help? What benefits can be achieved?

Compliance Management
▪ Transparency Greater governance across local and corporate systems ▪ Increased visibility into change impact on financial
▪ Traceability ▪ Separation of duties between change and approval statements
▪ Risk exposure authority for financial master data ▪ Reduced audit workloads and costs
▪ Standardized workflow and automated routing ▪ Greater collaboration in support of internal policies
▪ Complete history and audit trail of changes to financial and government/industry regulations
master data ▪ Fewer non-compliance penalties

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 54

Solution Benefits
SAP Master Data Governance for Financials (3)

What can be improved? How can SAP Master Data Governance help? What benefits can be achieved?

Quality and Consistency

▪ Master data Greater governance across local and corporate systems ▪ Reduced effort to find information
▪ Business rules ▪ Single Source of Truth allowing for creating and storing the ▪ Increased trust in data by business users
▪ Governance processes right data at the right place, even in distributed and ▪ Greater consistency of financial statements and
changing landscapes less need for restatements
▪ Standardized data models, validation rules and workflows ▪ Improved modeling, planning and analysis
▪ Easier Cross-System Data Synchronization through
configurable and selective distribution logic

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 55

Agenda

Financial Master Data in the Business – Situation and

Challenges

The Solution: SAP Master Data Governance for Financials

Functions in Details

The Solution Benefits

Summary

Appendix

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 56

Summary
Why SAP Master Data Governance?

▪ Up-front, central creation of master data enables high data quality

and leads to significant business improvements

▪ Out-of-the-box, process-centric applications provide centralized

governance for master data domains such as financial data,
supplier data, material data etc.

▪ Embedded solution with native integration into Business Suite

using existing business logic and infrastructure leads to low TCO

▪ SAP Master Data Governance provides flexibility, from

configurable workflows and extensible data models up to custom-
built applications

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 57

Learn more
about SAP Master Data Governance

► SAP Road Maps

(direct link: SAP MDG in Roadmap Explorer)

► SAP Community

► SAP User Groups

► SAP Customer Connection

(Projects: MDG 2018, MDG 2019, MDG
2020, MDG 2021/22)

► SAP Master Data Governance on SAP.com

► SAP Master Data Governance Community

(recent strategy updates: #mdgupdates2021)

► SAP Master Data Governance Application Help

► Education for SAP Master Data Governance /

SAP MDG Consultant Certification
© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC
This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is
provided without a warranty of any kind, either express or implied, including but not limited to the implied warranties of me rchantability, fitness for a particular purpose, or noninfringement.
Appendix: Customer Connection
Contribute – Visit the SAP Customer Influence site:

Visit now the

The SAP Customer Influence site gathers all existing influencing opportunities
landing page for SAP MDG
in one single entry channel:
2021/2022
https://influence.sap.com/go/mdg2021
▪ To participate, first create your user account to logon and activate Single-
Sign-On for easy access (Get started with instructions here).

▪ Define your “area(s) of interest“ here by clicking the follow button. You will
receive regular email updates and notifications on topics within the chosen
area(s). You can edit your choices anytime.

▪ Get active by searching & voting for or commenting on the already existing
improvement request(s) from which your company would benefit, or start
submitting your own improvement requests.

▪ Navigate using the filter bar on the left to select SAP Customer Connection
project(s) (here) or other influencing type, by product, LOB…or use free text
search bar on top of screen. http://influence.sap.com/mdg ›
http://influence.sap.com/mdg2019 ›
https://influence.sap.com/go/mdg2020

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 60

Retrospective: All SAP MDG cycles so far in SAP Customer Connection
Compared to earlier cycles

CC Projects Scope Start Collection Start Selection Start Delivery Call Deliveries
(incl. links to landing page) Development

SAP MDG SAP MDG, Central Governance, Mass Processing and May 8, 2018 June 30, 2018 Sep 18, 2018 June 12, 2019 25
(for S/4HANA 1909) Consolidation, all domains Improvements

SAP MDG 2019 SAP MDG, Central Governance, Mass Processing, Apr 12, 2019 June 30, 2019 Sep 18, 2019 July 15, 2020 28
Consolidation and Data Quality Management, all Improvements
(for S/4HANA 2020)
domains

SAP MDG 2020 SAP MDG, Central Governance, Mass Processing, July 29, 2020 Oct. 7, 2020 Dec 2, 2020 July 13, 2021 25
(for S/4HANA 2021) Consolidation and Data Quality Management, all Improvements
domains (same as 2019)

SAP MDG 2021/2022 SAP MDG, Central Governance, Mass Processing, July 20, 2021 Oct. 08, 2021 Dec 08, 2021 Planned for Not started yet
Consolidation and Data Quality Management, July 2022
(for S/4HANA 2022)
domains: Material, BP, FIN, Custom Objects

Thank you for the nice and successful collaboration throughout

the time as well as your trust in us!

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 61

MDG Customer Connection SAP Notes

Some of the new functions developed as a result of requests submitted during the Customer
Connection for MDG require activating via custom business functions which are listed in the
corresponding SAP notes.

2765664 - MDG Customer Connection 2018 https://launchpad.support.sap.com/#/notes/2765664

2888104 - MDG Customer Connection 2019 https://launchpad.support.sap.com/#/notes/2888104

3043582 - MDG Customer Connection 2020 https://launchpad.support.sap.com/#/notes/3043582

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 62

Thank you.
Contact information:
SAP Product Management

Join online:
MDG Community Network: https://www.sap.com/community/topics/master-data-governance.html
Follow us

www.sap.com/contactsap

© 2021 SAP SE or an SAP affiliate company. All rights reserved.

No part of this publication may be reproduced or transmitted in any form or for any purpose w ithout the express permission of
SAP SE or an SAP affiliate company.
The information contained herein may be changed w ithout prior notice. Some software products marketed by SAP SE and its
distributors contain proprietary software components of other software vendors. National product specifications may vary.
These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, w ithout representation or
w arranty of any kind, and SAP or its affiliated companies shall not be liable for errors or omissions w ith respect to the materials.
The only w arranties for SAP or SAP affiliate company products and services are those that are set forth in the express warranty
statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional
w arranty.
In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or
any related presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation,
and SAP SE’s or its affiliated companies’ strategy and possible future developments, products, and/or platforms, directions, and
functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any time for any reason
w ithout notice. The information in this document is not a commitment, promise, or legal obligation to deliver any material, code, or
functionality. All forw ard-looking statements are subject to various risks and uncertainties that could cause actual results to differ
materially from expectations. Readers are cautioned not to place undue reliance on these forw ard-looking statements, and they
should not be relied upon in making purchasing decisions.
SAP and other SAP products and services mentioned herein as w ell as their respective logos are trademarks or registered
trademarks of SAP SE (or an SAP affiliate company) in Germany and other countries. All other product and service names
mentioned are the trademarks of their respective companies.
See www.sap.com/copyright for additional trademark information and notices.