A FEW SAP S/4HANA BENEFITS

 

AbstractSAP S/4HANA retains SAP HANA's features, which include native in-memory engines capable of processing any form of information in real-time. It is developed to function on greater hardware or can handle dual Online Payment Processing and Online Analytical Processing techniques. It saves information in the most efficient way possible. It contains built-in greater features which maintain the system up and running while ensuring mission-critical apps never go down.

SAP started by redesigning the Financial Accounting app in the Enterprise Application. The Financial Accounting data structure was redesigned, and the Finance codebase was completely redesigned using a reduced database structure. SAP S/4HANA Finance, formerly known as Simple Finance, is the new app.

Further applications, such as sales, procurement, and stock control, will be improved afterwards.

SAP ECC clients could use SAP-provided technologies to transform their ECC system to SAP S/4HANA.

ECC apps in SAP are based on a hierarchical database engine. The application code is complicated due to the sophisticated data structure. Integration with other programs and upgrades can be challenging with this. This data structure has been simplified in SAP S/4HANA.

Whenever a customer enters financial information into S/4HANA, data is maintained that contains all of the data requested for legal and managerial accounting. It helps to monitor financial accounting information from a central location.

This updated journal entry has the BKPF header table and the ACDOCA line elements database. It has all of the fields that are required for G/L, CO, AA, ML, and PA. In S/4HANA, data for COEP, FAGLFLEXA, ANEP, and MLIT will be kept in one database table ACDOCA. In this essay, I'd like to discuss some of the positive advantages of SAP S/4HANA.

Fundamentals

Around us, the company culture is evolving and getting very complicated. Every single one of us has gone through a digital transition. The use of mobile phones and the internet has altered the way we live, operate, and operate a business. Technological advances make working life easier and create business options. The new SAP S/4HANA includes a virtual foundation that provides businesses with a one-of-a-kind infrastructure for optimizing business functions and developing real-time analytical and judgment abilities. This makes a company smarter and allows it to gain insightful information.

Most SAP ECC clients ask the same question whenever They visit them as part of Hackett Group's S/4HANA program manager: "What are the benefits and opportunities of SAP S/4HANA?" I'd like to highlight a couple of SAP S/4HANA's advantages.

SAP HANA Technology's Benefits

An essential to best application performance using SAP HANA is to shift even more implementation logic as appropriate into the data. It aids in the improvement of data computational efficiency. It responds more quickly. Many businesses are pleased with the results of their modifications and the ensuing response times.

SOME OF SAP HANA'S ADVANTAGES

• Important data volume decrease.

• Data structures and applications are becoming simplified.

• Backup and restore processes have been significantly reduced.

• Algorithms could be modified much more quickly than real-world data. This is aided by a reduction in storage capacity. Using aggregate tables, information is created in real-time and does not need to be pre-prepared.

• There have been very few coding attempts to ensure efficiency under control.

SAP S/4HANA's Benefits

MODIFICATIONS TO THE DATA MODEL

Actual Tables:

Finance, Stock Control, and other data models. In S/4HANA, this is improved. There is just a single table for Finance (ACDOCA) and one table for Material Records (MATDOC, etc.). It is triggered by the aggregation of flies.

Reporting is no more limited by the number of elements in the totals entries, which simplifies the database system and makes accounting more versatile in the long run.

In SAP S/4HANA, there are major variations in the way data information is maintained for financial reporting, which enhances the capacity to harmonize internal and external reporting needs significantly. Accounting becomes more adaptable as a result of this simplification.

Planning Table:

The ACDOCP Table can be used to record results obtained starting with SAP S/4HANA 1610. The format is the same as the universal journal (ACDOCA). By evaluating the data in the two tables, plan/actual information would be given. Integration with SAP Analytics Cloud is also possible via the different tables, data management, and database, which can be sourced from SAP S/4HANA.

The ACDOCU table in SAP Universal Consolidation Journal Entries is used for group analysis.

Fixed Asset Accounting

Fixed Asset Accounting (FAA) is dependent on the ACDOCA universal journal entry. This eliminates the need for an unnecessary database server. The benefit of the New Design for Fixed Asset Accounting is that there is no information overload. Every non-statistical entry is modified as Universal Journal Entries, which ensures G/L and AA reconciliation by design and eliminates the need for FI-AA reconciliation. After the transition, you would be able to access data. Although if you transform your structure, consistent views allow you to report on previous fiscal years. Posting of depreciation including all information: Depreciation price and accumulated depreciation by the asset.

FI-AA As a component of closure procedures, reconciliation positions are no longer required.

Asset Accounting and General Ledger Accounting both report to a certain ACDOCA table, and Asset Accounting would be completely reconciled with GL. As a result, we save a huge amount of time at the end of the period because we don't have to do a General Ledger and Asset Accounting Similarity Measure.

Updating in real-time:

Asset values for all posting depreciation sectors are modified in real-time for every asset-related transaction, such as acquisition, capitalization of assets under construction (AUC), retirement, post-capitalization, and so on.

Accounting principle of transparent depreciation area assignment:

Depreciation graph standardized. Per valuation, just one depreciation space is needed. Additional depreciation areas (delta areas) aren't needed to depict a parallel valuation, but they can assist with navigation and drilling down according to accounting principles.

Every valuation should have its report:

Distinctive ledgers are used to reflect various accounting fundamentals. For every accounting concept, distinct accounting-principle-specific materials have been released.

If there are any specific accounting standards positions, they will be noted.

Accounting standard specific assignments, such as inventory valuation, post-capitalization, manual depreciation, or write-up, could be done utilizing a distinct transaction AB01L.

SAP S/4HANA cash management

Cash managers will enjoy improved user interactions with SAP S/4HANA Finance for cash management.

Analyzing bank statement entries, verifying the financial position, and fund transfer to address surplus and deficit is the end-to-end procedure. This also aids in the forecasting of medium-term liquidity and long-term liquidity rolling strategies. It offers a centralized bank engagement feature that allows organization people to control bank accounts as a database with additional business features.

Allows you to analyze global bank balances and cash positions using information from SAP and non-SAP platforms. It offers standard liquidity forecasts, central bank relationship management, and a clever organisation cockpit for cash managers.

MANAGEMENT OF BANK RELATIONSHIPS FROM A CENTRAL POINT OF VIEW.

Those elements aid in the permitting process for creating, adjusting, and closing bank accounts. Rather than using G/L accounts, perform a cash condition assessment on bank accounts. BCM Transaction Authorization is linked with Signatory. Numerous qualities represent controls on both the bank and internal levels.

Company Code & Beneficiary Name, Account Number, IBAN & Description, Bank & SWIFT code, Signatory and Limit, Overdraft Limit, Connectivity Path, Account Type, Contact Person, Bank Details, User-Defined Fields, Attachments, and so on are all stored in Bank Account Master Data.

Bank Communication Management Integration

"Bank Payment Confirmation" is a Fiori App that is linked with Bank Effective Communication. It can set a transaction confirmation restriction for everyone. Single and joint signs are supported, as well as sequential and non-sequential signs. The data about the signatories is utilized in the Payment Authorization.

Opening & Closing Approval, Sensitive Attributes Change Approval, Batch Signatories Change Permission, Comprehensive Process Authorization, Display Existing Bank Accounts in Authorization, and so on are all possible with the Bank Account Approval Workflow.

Pooling of funds

The new bank account group, which is simple to register for a business user and does not require setting, is used to maintain the bank account structure. Specific options for the cash pool, For example, a company configures the "anticipated amount" and "minimum movement amount" for each bank account without any setting.

It is necessary to observe the balance* prior concentration and the estimated balance during concentration when concentrating and change the transfer amount if necessary during concentrating.

Transfer Charges

A holding company could conduct business with a subsidiary or a department with other sectors within the same firm; the transferring cost is determined on an accrual basis. Price is determined by it. Transfer Cost Solution is available in SAP S/4HANA.

S/4HANA's Transfer Cost Solution includes the following features:

• The related distinct viewpoints on the production process within a group are provided by up to three concurrent evaluation methodologies for legal, group, and profit centre evaluation:

• From a legal standpoint, related organizations' commercial transactions, involving markups, are examined.

• Profit centre evaluation analyzes profit centres as though they were independent businesses with concessional rates, for illustration.

• Group evaluation considers the entire group, removing markups.

SAP ECC (ERP) SD CUSTOMER MASTER IS REPLACED BY THE BUSINESS PARTNER APPROACH.

We no longer need to keep client and supplier source information distinct in two transaction codes in SAP S/4HANA. It is feasible to handle client and supplier source information from a central location. A role establishes a connection among a business associate and other elements. The job of a business associate relates to that of a client or a supplier, for example.

SAP S/4HANA introduces a new accrual engine for accounting:

The appropriate costs are assigned to the fiscal period for which they happened by recording accounting in the database. A new Accrual Engine has been built with release S/4HANA 1809. S/4HANA Accrual Engine is the name of the new Accrual Engine. The Accrual Engine in S/4HANA integrates easily with General Ledger. This accepts various General Ledger currencies, and posts can be done on the ledger level rather than the accounting standard base. The following are some of the advantages of the new SAP S/4HANA Accrual Engine:

It works in tandem with General Ledger. All General Ledger currencies are accepted. The Accrual Engine postings are kept as line items in table ACDOCA. The G/L ledgers' fiscal year variation is enabled. Standard FI reversal is available, for instance, utilizing transaction FB08 or F.80.

Monitor GR/IR Account Reconciliation with SAP Fiori app

You could use this app to gain an update on the status of open GR/IR account issues that require explanation. It aids in the analysis of the GR/IR reconciliation for purchase order elements and open FI elements using KPIs. You could also move the monitoring to the number of items for GR/IR confirmation, explore the specifics, or even begin executing purchase requisition items with no matched products Receipts and invoices Receipts after determining in which more in-depth investigation is required.

It aids in the analysis of the issue to perform the reconciliation of uneven GR/IR accounts. You can also figure out which business codes represent the majority of financial accounting's open items. Which provider has the most open FI components? Go straight to the worklist of items that need to be completed.

In S/4HANA, production versions are required.

The commercial version of SAP S/4 HANA is now required for the Subcontracting process in buying. Two manufacturing variants could be developed and allocated to the product code if the same substance is produced in-house and purchased from the supplier via the subcontracting procedure. The commercial version allows you to define several BOM combinations.

Workflow Flexibility:

For purchase requisitions and purchase orders, the flexible workflow replaces the traditional procedure. It's a different approach to the Release schedule. A type of situation workflow with several start conditions as a flexible workflow. A variety of criteria for estimating authorizations are available. It allows users to specify the circumstances wherein the workflow stage must be initiated or applied. It may be configured using a Fiori app, and approval action can be made from the Fiori app, and Fiori 2.0 push notifications are supported.

MRP in Action:

The benefit is excellent efficiency and the ability to do the planning run in considerably shorter cycles (10+ times) — MD01N can run many planning runs per day. The classic MRP run (MD01) is also available on HANA (in parallel to MD01N) and performs the same functions as any other database.

Supply and demand data that is more current on which to build choices. A faster response to changes in demand decreases the danger of stock-outs and allows you to decrease protection inventories. Users can detect and respond to problems much faster than before.

Procurement of Lean Services:

Businesses no longer need to establish a service master with the launch of the “ material type SERV. In the material typesetting, it already contains the product type group 'Service.'

In place of service masters, companies can expand materials with the material type SERV and the product type group service.' The Fiori Apps 'Manage Purchase Requisitions' and 'Manage Purchase orders' and 'Manage Service Entry Sheets can be used to generate purchase requisitions and purchase orders. Service lines sub-item levels are not required to be maintained in purchasing papers because services are formed as materials with SERV and product type group service.' In traditional transactions such as MM01/MM02/MM03, a new material type SERV is established with fewer relevant departments and data.

Transactions and analytics are combined in SAP S/4HANA.

SAP S/4HANA enables real transactional data operational reporting. For real-time operational reporting, this is enabled by basic internet services views. S/4HANA's transactional and master data tables are used to present the findings as a virtualized database schema. Within the company operations, analytics tools are provided. This improves the efficiency of the procedure.

Financial Closing Cockpit in SAP S/4HANA

The SAP S/4HANA Financial Closing Cockpit is an application that allows businesses to build an organized interaction for executing transactions and initiatives that are complex systems closure procedures. The systemic structure enables transactions within a company code and also situations involving diverse organizational structures. This enables all users who handle financial closure for a single company code or many company codes to directly establish a job's manual status, record if the assignment has been verified, and manually verify if a transaction has been performed or not.

Managers with accessibility to an overview of the closure process's status could observe problems about tasks, as well as task logs, spool lists, and application logs generated by the system during the execution of tasks.

Businesses could use Closing Cockpit to keep track of their month-end and year-end closing activities and make them accessible to all members of their team via a uniform interface.

By employing a single data source of truth for all financial and managerial activities, financial and managerial accounting can be harmonized. It decreases reconciliation time and permits on-the-fly analysis without the constraints of pre-built aggregation. It includes built-in data migration to help you transition your existing data to the new accounting universe.

Run for a New Depreciation -

The projected depreciation is calculated with each master data modification and every posting on the asset using the new Transaction code. The anticipated asset values are adopted and posted in GL when the depreciation run is conducted. In UJE, the asset level journal entry is modified. Although if individual assets have errors, period-end closing can still be completed. A test run is also possible. The Selecting view has been made more straightforward.

ERP SD Credit Management has been replaced by SAP S/4HANA Finance Credit Management.

FI-AR-CR SAP S/4HANA does not have a credit management module. SAP Credit Management is a functional substitute (FIN-FSCM-CR). Through the new FSCM functionalities- Collections management and disputes management- the FSCM credit management offers expanded capabilities to boost cash flow. With capabilities such as handling credit scoring internally and/or storing credit ratings from external rating firms, interacting with credit rating agencies, and so on, FSCM-CM aids in giving clients better control over their credit scores.

Sales with SAP S/4HANA

Sales and distribution, resource planning, and other aspects of SAP S/4HANA are significantly simplified.

These modifications are the result of re-architecting the database structure and functionalities, establishing a new customer experience, and integrating functions in the core, as well as an in-depth interaction with SAP Hybris. You could also employ complementing Sales and Billing software (like Multi-Channel-Billing)

The replacement of add-ons and the expansion of internal support bandwidth such as EWM, PP/DS, and advanced ATP, among other things, are among the improvements in sales and billing.

Some of the sections simplified on SAP S/4HANA Sales are listed here.

• The ECC (ERP) SD client master is replaced by the Business Associate method.

• FI-AR-CR Credit Management has been replaced by SAP S/4HANA Finance Credit Management.

• SAP S/4HANA (SAP Business Suite 4HANA) SAP SD Foreign Trade has been replaced with International Trade Management capability.

• In Treasury and Risk Evaluation, transfer of financial records from SD-FT to Trade Finance.

• ERP SD Rebates are replaced with SAP Condition Contract Settlement.

• SD-BIL-RR Revenue Recognition is replaced by SAP Revenue Accounting.

• ODATA & Open CDS views replace ERP LIS/ODP views in SAP S/4HANA Analytics.

Basic SALES AND BILLING CHANGES:

Re-architecting the database structure, new SAP Fiori apps and optimized procedures, position growth, in-depth analysis, and in-depth interaction inside and throughout business units are all part of the plan. Leonardo has been added to SAP's main sales operations to boost efficiency.

In Sales, SAP S/4HANA aids in the optimization of the order-to-cash procedure. Sales and distribution are easier to manage and control using SAP Fiori apps and analytical analytics. Companies with great business operations, such as the sales order fulfilment cockpit, can use embedded analytics. Sales KPIs are provided out of the box, with the option to develop custom KPIs based on your requirements. It aids in the visibility of corporate transactions. The sales heads gain some insight into sales reports to achieve the right option possible at the right time. With improved logistics, the order-to-cash procedure becomes straightforward. Several tools, such as simulation and predictive data, will aid the sales staff in making the best decision possible.

International Trade:

In SAP S/4HANA, the traditional Foreign Trade feature is not provided; instead, SAP GTS should be used.

Processing of Refunds:

In SAP S/4HANA, Settlement Control replaces SAP SD Rebate Processing, which implies that existing rebate agreements will only be performed till the expiration period of the contract expires, whereby the contract should be closed with a final settlement. Only aspect contracts, that are components of Settlement Management, will be used to construct new contracts.

Recognized Revenue

In SAP S/4HANA, SD Revenue Recognition is not available. SAP Revenue Accounting and Reporting is a new revenue accounting and management system from SAP ( RAR)

It is recommended that you use the functionality.

This capability supports the revenue accounting standard as defined by IFRS15 and customized by local GAAP. The transition to the new system would be painless.

Even if you don't update to SAP S/4HANA, you must adhere to IFRS15.

Activities in Sales:

There is no computer-assisted selling accessible. Customers are encouraged to use CRM in conjunction with SAP S/4HANA or SAP Hybris Cloud for Customer.

Overview of Advanced ATP

SAP S/4HANA includes the enhanced ATP. It contributes to shorter delivery times, fewer lost commercial opportunities and increased revenue and profitability. To perform in-memory planning, the internal logic for the planning elements from the database to the internal table has been completely rebuilt. It's built into the SAP S/4HANA platform.

Advantages:

Promise only what you can deliver; don't over-confirm.

Handle shortages with care.

Manage company objectives while also safeguarding the customer's interests.

Re-planning is intuitive and quick.

SAP Fiori app for managing sales plans:

This tool aids sales managers in the creation, modification, distribution, and display of sales plans. They could establish sales goals on a variety of aspects for a specific period. Then, using the Marketing Effectiveness - Plan/Actual app, they compare actual sales statistics to the sales focused.

Sales Performance — Plan/Actual — Sap Fiori App

Users could compare actual data with one of their sales plan variations. Following the selection of a sales plan version, the plan and actual data could be reviewed as follows:

Based on what you've prepared in the specified sales plan variant, the planned and actual values indicate incoming sales orders or unit sales.

Inside that set period, actual and planned values are compared by month, quarter, or year, based on how you configured this in the specified sales plan variant.

If a client phones and requests data about his order, or if a teammate or supervisor requests data about all of a client's orders, the Sales team could use it to rapidly offer such data. To discover the necessary sales record, you must provide search criteria like sales records, requested delivery date, document date, and client reference.

EWM Embedded:

Improved high-performance work, better job performance, and improved space usage can all help you save money. It has transparent procedures and automated systems that are adaptable. Strong integration with SAP's other products.

Production planning/scheduling in detail:

Proper planning to manufacture in a single system improves the company. It is simple to analyze and administer. There's only one record to keep track of.

The Cockpit for Sales Order Fulfillment

An internal sales representative's operating mode is changed by the Sales Order Fulfillment Cockpit. Using SAP S/4HANA's sales order Completion Cockpit, there is an exception-based operating method to identify errors earlier and enhance customer satisfaction.

It improves the firm by reducing O to C cycles and Outstanding Payments while also improving service levels. Using this, we can have complete visibility into all aspects of the order fulfilment process, focusing attention on the most pressing issues, taking immediate action, and keeping a record of solution implementation. With operational actions, we could also gain analytical information.

Reporting in Groups (Financial consolidation)

For Accounts and Finance Divisions, financial consolidation is a very complicated problem. It entails numerous steps. Large firms must perform this exercise since they have several entities, different ERPs, local accounting standards, currencies, and other factors that play a big influence.

From SAP S/4HANA 1809 Edition forward, an on-premise option is offered. There's also the SAP S/4HANA Cloud for group reporting, which has been accessible since May 2017.

Reconciliation systems including Corporate Controlling-Consolidation System (EC-CS) and Corporate Strategy and Consolidation build on the shoulders of SAP S/4HANA Finance for group reporting (BPC).

Characteristics of SAP S/4HANA Group Reporting

• Consolidation of legal and management functions at the same time.

• automated Investment consolidation

• In charge of the group structure.

• The ability to compute several group currencies in a single run.

• Integration with the closing cockpit for financial transactions.

• Scenarios for integrating planning apps.

• Reconciliation between advanced companies

• Machine learning-based intelligent data validation

• Less information loss in restatements.

• dimensions that the customer specifies. (This needs to be confirmed with SAP.)

Advantages of SAP S/4HANA Manufacturing

• MRP Live Transaction (MD01N) has been redesigned for improved MRP run efficiency. The upgrade efficiency of the planned file has been optimized (SAP Note 2227059). The speed of the MRP run is the most important factor, as it is substantially faster with less storage than SAP ECC. As a result, it can be used more frequently during the day.

• Simple sourcing and subcontracting logic (SAP Note 2226333 and 2227532)

• Browser-based procedure instructions sheets have replaced ABAP list-based procedure information sheets (SAP note 397504)

• Instead of using old interfaces like PFS, LPO, Icon CBP, KK2, KK5, and the s95 interface, use MED integration or the POI interface.

• Visual Enterprise Viewer has taken the place of the ECL viewer.

• Flow manufacturing and Process flow scheduled PFS are obsolete; instead, use SAP APO (SAP note 217113)

• We'll be able to go from batch to real-time computing.

• Keep track of inventory in tiny lots.

• Visibility of inventory values and real-time inventory postings

• Increased inventory precision

• Safety stockpiles have been decreased as a result of increased stock visibility.

SAP BPC is SAP S/4HANA ready.

• The following are some of SAP BPC Optimized for SAP S/4HANA's key features:

• A single solution for planning

• Access to master and transactional data in real-time for modelling and variance analysis

• End-to-end simulation abilities and flexibility drill-down on factors for profitability analysis

• Improved and more seamless connection of planning screens with SAP ERP procedures.

• Planning models that have already been created

The following are the benefits of SAP BPC Optimized for SAP S/4HANA:

• We'll be able to get around the restrictions of GUI-based planning.

• Information replication is no longer an issue.

• For variance analysis, planned information generated in SAP Business Planning and Consolidation is sent to SAP ERP.

• SAP Business Planning and Consolidation gives you access to SAP ERP's real-time master data and actual data.

Financial planning skills enabled depending on

• SAP Consolidation and Corporate Strategy.

• An SAP NW form is integrated smoothly into SAP ERP user interfaces and processes, effectively replacing SAP ERP's existing planning features.

• We could simulate everything from start to finish.

Controlling Budget Availability for Cost Centers

There is no effective availability management for cost centres in the typical SAP R/3 Platform. You could go above the cost centre budget without receiving any notifications. We used to employ indirect methods for basic postings if somebody wanted availability management for postings to cost centres. In S/4HANA 1909, we would be capable of activating AVC for cost centres.

To regulate budget consumption in cost centres, we could construct a budget availability management profile, assign budget information to recorded groups, and specify budget permissible limits.

The available budget is examined when users record an expense that is labelled as an Actual Cost. The program reacts with either a warning or an error message when the budget utilization crosses a certain limit. This system reaction is determined by the settings in the budget availability management configuration that you have defined.

A commitment is created when you produce a buy requisition or a purchase order that is associated with a cost centre. The available money is reduced as a result of this obligation.

Fiori Apps are SAP's web-based applications.

SAP Fiori introduces a new HTML5-based Customer Experience built on the UI5 framework. It gives users the ability to customize and modify their screens. SAP Fiori can provide a cutting-edge user experience.

Conclusions:

SAP S/4HANA is a digital business real-time corporate suite. It connects IT to social and commercial networks (such as Ariba and Concur) as well as the "Internet of Things." SAP S/4HANA includes several new and unique feature-rich applications that make it simple to generate insights from actual data from any location. To generate an improved business effect, strategy, implementation, forecasting, and simulation are all done "on the fly" at the highest level of granularity. It is built with SAP Fiori UX, which allows business users to get work done with a customizable, reactive, and easy-to-use user interface that works on any device. In a nutshell, SAP S/4HANA is a re-imagined corporate platform.

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