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How To Understand SAP Order to Cash in S/4HANA

Anyone who has been acquainted with SAP will immediately realize that the environment just seems to be getting more involved with time. S/4HANA is an excellent example of SAP’s increasing complexity, as it strives to offer a cloud solution for businesses. Entwined with this focus on digital transformation and the cloud is pushing to make SAP apps more agile. Between S/4HANA and SAP Fiori, even experienced users can start feeling out of their depth. Understanding SAP Order to Cash (OTC) begins with understanding S/4HANA’s role and how you use Fiori with this new system.

Fiori Is Just a Front End

You can think of Fiori as a dashboard that allows users to interact with the tables and data stores in the SAP S/4HANA database. While most users use the SAP GUI because of familiarity, Fiori offers a sleeker, modern interface. If you’re an SAP user focused on Order to Cash, you will need to understand the Fiori interface, since it’s going to be your bread and butter for as long as you’re working with HANA. Fiori apps such as Sales Order Fulfillment and Sales Management Overview offer unprecedented insights and complete drill-down capabilities. While you can still use SAP GUI, you’ll be limiting your access to more comprehensive data available in Fiori apps.

Innovations for Order to Cash

Among the positive designs that SAP has provided for OTC consultants includes:

Simplified Pricing Tables

SAP had some relatively complex pricing tables, but HANA has simplified things for users. Initially, OTC would rely on the KONV table. New HANA implementations replace KONV with PRCD_ELEMENTS, making for a faster, more streamlined interaction with the table.

Database Simplification

The tables aren’t the only thing that HANA cleaned up. Several tables have been either merged, simplified, or entirely culled from the environment. This improvement makes for quicker access to data along with the more efficient running of queries. There’s no longer a need for VBUK and VBUP tables. These have been replaced with the VBAP and VBAK tables. Additionally, because of the change in the table structure, there has been an associated change in transactions. The entire list of new transaction codes is accessible through the table PRGN_CORR2 in SE16N.

Credit Management

In ECC 6.0, credit management was under the CD configuration, but this has changed in HANA. You can find credit management under the Financial Supply Chain Management section. You will need someone with the relevant FICO knowledge to get this set up correctly. Unlike a lot of other changes, this one is neither optional nor invisible. You NEED to understand this change to work with credit management in S/4HANA. SAP decided to change the implementation to make for a more streamlined interface with faster query times and more efficient results.

Business Partner

In on-premise SAP, we had different tables for customers, vendors, and contacts. To simplify matters, S/4HANA dispenses with these tables and created one single list of entities that fall under the broad category of “Business Partner.” As such, businesses no longer need to have different entries for business partners that may overlap across boundaries. Instead, this simplification has helped to remove redundant data.

A Large Volume of Changes

Order to Cash is complicated, but with the changes that S/4HANA has brought to the database, it makes life easier. The only hurdle to scramble over is the new Fiori interface. Many of the transaction codes we’re used to (such as vendor/customer entry, etc.) have changed because those tables have been consolidated. While it’s not nearly as complicated as learning a whole new system, it can be overwhelming to try to understand the significant changes yourself.

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