1. SAP Financial Compliance Management
1.1 A Brief Overview
Introduced in March 2021, SAP Financial Compliance Management is a cloud-based control solution built on the SAP Business Technology Platform. This innovative tool offers an end-to-end financial compliance solution, providing the necessary resources to ensure your organisation remains within the boundaries of local laws and regulations.
SAP Financial Compliance Management empowers compliance specialists with the ability to design controls, monitor their performance, document regulatory frameworks, and detect issues in the implementation of controls. This innovative solution transforms the role of GRC from a cost factor into a strategic differentiator, allowing businesses to optimise their operations proactively.
Fig.1: With SAP Financial Compliance Management, compliance managers can design controls and monitor their performance
1.2 Best Practice Content for SAP S/4HANA
SAP Financial Compliance Management provides over 60 predefined controls. These controls, vital for financial compliance, range from invoice checks and supplier assessments to standalone selling price monitoring. These controls can be used as templates for your custom-defined controls, ensuring your organisation remains in compliance with SOX and other regulations, such as IFRS 15 Revenue Recognition.
Fig.2: The business content from SAP Financial Compliance Management for SAP S/4HANA provides more than 60 most-commonly used, predefined controls
1.3 Control for Revenue Recognition
One notable example of the new controls introduced is the control for contract-based revenue recognition. This feature allows for the automatic detection of compliance risks by comparing the transaction prices that were charged with the standalone selling price (SSP) range for variable time periods. This facilitates an increase in the overall reliability of financials, providing feedback to policy owners for common issues requiring clarification.
2. International Trade Management
2.1 Compliance Checks for Inbound Deliveries
In the realm of International Trade Management, SAP S/4HANA Cloud 2108 introduces the ability to perform legal control, embargo and Watch List Screening checks for inbound deliveries. Additionally, the trade compliance status is now displayed in inbound deliveries, making compliance checks more accessible and efficient.
Fig.3: Trade compliance specialists can now perform legal control, embargo and Watch List Screening checks for inbound deliveries
2.2 Enhancement of SAP GTS Integration for Customs Processes
For organisations utilising SAP Global Trade Services (SAP GTS), SAP S/4HANA Cloud 2108 enhances integration, enabling the use of Customs Management in your SAP GTS system. This is particularly beneficial for organisations looking to include existing stock in SAP S/4HANA Cloud to SAP GTS to include it in duty-paid stock.
3. SAP Privacy Governance
3.1 Manual Procedures for Privacy Risks
SAP Privacy Governance now allows for the creation of manual procedures for detecting privacy risks, a significant leap from the previously automated procedures. These manual procedures allow for a more hands-on approach to privacy risk management, enabling the screening of local files, reviews of physical data protection measures, and conducting privacy assessment interviews.
Fig.4: As of SAP Privacy Governance 2108, Compliance Specialists can use not only automated but also manual procedures
3.2 OpenSAP Microlearning: Introduction into SAP Privacy Governance
OpenSAP Microlearning has published a new course providing an introduction to SAP Privacy Governance and its key features: Regulation Management and Policy Management. This course provides a valuable resource for Compliance Specialists looking to enhance their understanding of SAP Privacy Governance.
Fig.5: The new microlearning on OpenSAP provides an introduction to SAP Privacy Governance and its key features Regulation Management and Policy Management
4. SAP Document Compliance and SAP Advanced Compliance Reporting
4.1 Common Dashboard for SAP Document Compliance and SAP Solutions for Advanced Compliance Reporting
With SAP S/4HANA Cloud 2108, a new ‘Document and Reporting Compliance’ dashboard has been introduced, providing a centralised cockpit to monitor and manage compliance. This dashboard provides real-time insights across legal mandates and facilitates seamless corrections and a unified user-experience across countries.
Fig.6: As of SAP S/4HANA Cloud 2108, tax accountants can analyze, resolve and complete both compliance issues and compliance apps in the new app ‘Document and Reporting Compliance’
5. SAP Cloud Identity Access Governance
5.1 Open Interface for Third-Party Application Access Request
SAP Cloud Identity Access Governance now includes an open interface for external system integration, allowing for the initiation of access requests in third-party identity management and ticketing systems. This simplifies the access request and approval process, making it easier to integrate with the required data for submitting access requests.
Fig.7: The ‘Access Request Service’ API enables external applications to submit requests to SAP Cloud Identity Access Governance for further processing
Conclusion
SAP GRC has come a long way, with SAP S/4HANA 2021 and SAP S/4HANA Cloud 2108 bringing a plethora of innovations and improvements. These developments, particularly in Financial Compliance Management, International Trade Management, Privacy Governance, Document Compliance and Identity Access Governance, ensure your organisation stays ahead of the curve. By adopting these solutions, you can mitigate risks, promote compliance, and foster a robust and efficient operational environment.
Remember to stay informed, stay compliant, and stay ahead with SAP GRC.
For more information on SAP S/4HANA, check out the following links:
- SAP S/4HANA release info: here
- Link Collection – Governance, Risk and Compliance (GRC) with SAP S/4HANA and SAP S/4HANA Cloud here
- SAP S/4HANA Community here
- SAP S/4HANA PSCC Digital Enablement Wheel here
- Inside SAP S/4HANA Podcast here
- Join the SAP S/4HANA Movement
- Best practices for SAP S/4HANA here
- Help Portal Product Page here
