What does S/4 HANA Finance provide functionally?

 


What does S/4 HANA Finance provide functionally?
SAP S/4 HANA Simple Finance provides multiple innovations, such as Universal Journey, streamlined
design, and real-time analysis, which generate a notable operational improvement in the Economic-
Administrative and Financial area. Ever since SAP announced the release of SAP S/4 HANA Finance
(then called SAP Simple Finance) in early 2014, there has been some confusion about what SAP S/4
HANA Finance actually delivered and what exactly it was. At this point, Tech-edge intends to clarify
that with a minimum technical impact, any organization can benefit from multiple advantages at the
business level by minimizing the technical dependencies of the previous version.
Differences between SAP Business Suite on HANA and SAP S/4HANA?
SAP Business Suite on HANA is exactly the same ERP that was used until now, but with a change in the
DB. that optimizes it at the performance level. This will not provide any changes at the functional level
except that some processes will run faster. However, SAP S/4 HANA is a new generation ERP that has
been “rewritten” to remove technical dependencies or limitations. Thus, S/4 HANA is much more
flexible to adapt to business needs, building on existing functionality and generating new ones, both
at the back end and front end levels.
What is the difference between Smart Financial, Simple Finance and SAP S/4HANA
Finance?
In essence it is the same, they are different names that have been used for the same product. The one
that is current today is SAP S/4 HANA Finance and its version depends on the year and month in
which they were released (Version 1503 was followed by 1505, 1508 and 1511). Since SAP S4/HANA
Finance is part of the S/4 HANA suite, it is important to understand that SAP S/4 HANA consists of four
components
The core/functional component: SAP provides several financial capabilities and enhancements as
part of the core/functional component. To do this, you must be at least on SAP NetWeaver version
7.4, SAP ERP Central Component (ECC) 6.0 Enhancement Package 7, and SAP HANA version 1.0 to be
able to consider a migration or upgrade to S/4 HANA. A migration to S/4HANA from ECC 6.0 is a
functional upgrade that involves migration of transactional tables.
The User Experience (UX) component: This SAP Fiori component helps you interact with the
component through easy-to-use Fiori screens. This requires SAP NetWeaver 7.4 and SAP Gateway
version 2.0. Please note that this is an optional component and can be continued with the existing
SAP user interface.
The reporting/analysis component: This component enables real-time reporting and analysis using
preconfigured views. Prerequisites for installation is SAP HANA Live 1.0 for SAP ERP and SAP HANA.
This is also an optional component.
Applications Component: This component is a set of analytical applications in the Finance suite for
key financial decision makers in a company.What does S/4HANA Finance provide?
S/4HANA Finance provides a single source of information. From our point of view, the introduction of
the universal journal (ACDOCA table) brings SAP closer to a single accounting repository. This is
achieved based on the New General Ledger (improving it) and merging General Ledger, Assets, Cost
Center Accounting, Profit Centers, Income Statement (COPA), Special Purpose Ledger and Material
Ledger into a single data model. In operational terms, each transaction will generate a single
document with all the information (recorded in the ACDOCA table), instead of one for each
component (and then reconcile everything to square). In this way, in case of extracting the
information to BW systems, only a single extractor will be necessary, instead of the previous 4 or 5.
Why is this so important?
In a single step, it reduces the number of cases of data redundancy and duplication in all FI modules.
The ACDOCA table can be extended to include the coding block, COPA features, etc. One of the most
difficult aspects of FI/CO implementation in any organization has been reconciling CO postings to FI.
This is now instant and automatic.
S/4 HANA has alleviated a major pain point – real-time reporting or analytics. The delay in reporting
and analysis due to extracting, transforming, and loading to connect to storage systems. With S/4
HANA you can do all the transactions and reporting all at the same time because within SAP HANA
you can have SAP BW embedded. This eliminates the need to download reports and analysis to third
party systems. You will now be able to pull real-time reports that combine transactional and historical
data allowing you to make strategic and tactical decisions based on the latest data.
SAP S/4HANA Finance has greatly simplified the flow of data in the finance modules. Those who have
been involved with FI/CO for many years will readily agree that the data model was unnecessarily
complex. As an illustration, FI postings typically involve changes to many tables (known as secondary
indexes). All of these boards (such as the BSIK and BSAK) have been removed. That reduces
complexity and improves control by having everything in a single repository.
Fiori plays a more important role, providing an interface on all devices, whether from a laptop or
mobile device. Fiori uses both SAP HANA Live and S/4 HANA with built-in analytics. S/4HANA comes
integrated with over 800 role-based applications including finance-specific roles. One category of
these applications are analytics applications that provide users with real-time visibility into key
performance indicators (KPIs).

Comments

Post a Comment

Popular posts from this blog

SAP Overview | What is it for?

  What does SAP stand for and what is it? what exactly is  SAP ? It is a tool, applicable to any business segment, made up of modules corresponding to each department of the company such as sales and distribution, human resources... This method helps to improve the efficiency, control and management of business data and information. Although these modules correspond to different departments of the company,  SAP  allows them to be managed and combined in a single computer system. Historically, traditional business models have decentralized departmental data management. But, as we have seen in the previous point, SAP serves as a central database in which each authorized person can access a module installed on each of the company's computers. The main function of the  SAP program  is to provide information. Based on the data entered, the program processes them and transforms them into relevant information for decision making. In other words, its function is to...
Read more

Introduction to SAP HANA Finance

    Introduction to SAP HANA Finance   The management of invoices to clients, payments to suppliers, to guarantee an adequate cash flow and liquidity in the treasury, includes the analysis of financial profitability, planning, budgeting, risk and many other elements to be considered.   SAP S/4HANA Finance includes the existing functionality in the ERP and more elements than usual. SAP Simple Finance and SAP S/4HANA Finance  are the same product, only the name has changed. Advantages of SAP S/4HANA Finance   l  Simple processes for issuing reports in real time, always reconciled.   l  Speeds up decision making through prediction and simulation processes, within the solution's architecture, without other aggregates and without information redundancy.   l  The user experience will be more intuitive by providing instant access to any financial insight from any device through SAP Fiori.   l  The business view of business status...
Read more

What is the SAP system and what is it for?

Image
  What is the SAP system and what is it for?     SAP was founded by former IBM employees in 1972. Since then, its software has grown so much that it has become the most widely used business management program throughout the world. SAP is simply a program divided by modules that integrates all the departments of a company . All of them can share data with each other, since they work on the same database.   The information is shared in real time between the different modules, which cover all the processes of a company. That is, if there is a sale from the corresponding department, the warehouse will be automatically informed so that they can prepare the order, in case of lack of stock it will be ordered automatically, if the employee obtains a commission, human resources are automatically informed, etc. Everything is connected.   Each department can have access to one or several modules, depending on the needs. They all attack the same server, which will be in ch...
Read more