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Making Sense Of SAP Order To Cash In S/4HANA

We all know how complicated S/4HANA can be, primarily if we use the application regularly. SAP has made a habit of acquiring competitors and expanding its reach to other industries through creative partnerships. As a result, S/4HANA has become an interconnected sea of applications, all working with one another, utilizing the same central analytics engine and connected database. For those who have to deal with the Order to Cash system, making sense of the S/4HANA environment is of the utmost importance. Hopefully, this article will explain some of the more complex topics, although we will not go into great detail about the functionality and use of those elements.

Fiori Applications

For sales and distributions users, Fiori user experience provides unique insights into customer data. Sales management and order overviews can offer representatives information at a glance to help them gauge their performance in addition to in-depth insights about the supply chain.

Business Partner

In the past, customers, suppliers, and contacts were all different elements within the SAP environment. In the interest of simplification, S4/HANA combines these elements into a single entity – the Business Partner. This change helps keep the database streamlined and removes redundant data for entries that might fit into more than one of those categories.

Pricing Tables

In the old days of SAP, the single table KORV was responsible for pricing. This table has been replaced in HANA with PRCD_ELEMENTS, making for a much more simplified approach that makes for more efficient use of resources.

Revenue Accounting and Reporting

In ECC 6.0, revenue recognition was a simple amendment, but things changed in 2018 when legal requirements for accounting principles were amended in the US and Europe. The result was a complete overhaul of the revenue recognition system in S/4HANA. It’s so different from the ECC 6.0 system that you can’t use the old methodology for revenue recognition anymore. Instead, it makes use of a method known as Revenue Accounting and Reporting (RAR). The changeover from ECC 6.0 to RAR can be extremely time-consuming and can be implemented by SEO companies like YEAH! Local.

Credit Management

In ECC 6.0, credit management existed under the SD configuration heading. It has since been moved to the Financial Supply Chain Management section in S/4HANA. This change isn’t optional, and you’ll be required to familiarize yourself with the credit management methodology in S/4HANA before running any credit management functions in SAP. The change was necessary to make a more flexible and efficient system for users.

Settlement Management

Rebates can be challenging to work with. Customers require SD rebates, and suppliers need MM rebates, and ECC 6.0 managed to deal with all of these with a little bit of juggling. S/4HANA has simplified this by combining all rebates under the Settlement Management heading. The single tool is designed for use with both customer and supplier rebates.

A Simpler Methodology for Modern Transactions

SAP is aiming to make life easier for those of us who use S/4HANA. Simplifications may lead to confusion, especially if users aren’t informed as to what changed and why those changes were instituted. Still, it’s something that users should be grateful for. Just because we’re used to doing something one way doesn’t mean it’s the most efficient way to get it done.


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