Best Practise Finance Processes in Shared Services

This part will describe the best practise finance processes in a shared services environment.  In the graph below it is visualized where the 3 concerned processes, accounts payable, accounts receivable (incl. credit & collections) and general accounting can be found in the business process chain.  

To find a definition of "best practice" finance processes is challenging. SAP defined as "best practice" these processes which are integrated best
in the [technical design].


Process cut in SSC environment: 
  
All transaction bases finance processes have been analyzed in detail in order to define which process steps could be
migrated to a shared services environment. The dividing line between the local business unit and shared services
activities is referred to as a process cut. The clear description of the interfaces between the process cut and other parts of
the company is of crucial importance to the joint operations of the local units and the SSC. The guiding design principles for
defining the cut are the following:

Below we will go into more details on 3 main finance processes in the SSC:

Accounts Payable (AP/P2P),  Accounts Receivable + Credit & Collections (joined to one process AR/C2C) and General Accounting (General Ledger, GA)