Businesses are migrating to SAP S/4HANA since it has all the capabilities of the SAP HANA and other various added advantages. Formerly, SAP HANA helped the company with its in-memory engines to process and analyze data in real-time. It also supports online transaction processes and all the business’s analytic requirements to build high-end hardware. That data is stored optimally with a high-availability function to keep the databases active and running with all the mission-critical applications intact.
The revised plan to form the new SAP S/4HANA started by rewriting the SAP Business Suite in Financial Accounting. The data model formerly used with financial accounting was redeveloped and rewritten entirely to form a more simplified model for various business types. The revised application is the SAP S/4HANA.
Converting to the new simple application is easy with SAP ECC customers converting their ECC system to SAP S/4HANA using tools available for all SAP customers. All ECC applications using SAP models occur on a hierarchical data model. Therefore, when the data is complex, the application code is also complex to retrieve and analyze. It makes integration with other applications and enhancements in the business model challenging and difficult to perform. SAP S/4HANA offers a more simplified option for the same data model.
Changing World for Businesses
The business style in the world is constantly evolving. However, the changes are directed to make businesses more profitable, becoming even more complex to operate. The digital transformation needs tech-savvy people and understands all information involving innovations in technology to boost their businesses. The increased use of mobile devices and social media changes the way people operate their businesses. Any company which is left behind on this transformation will lose customers and close down.
SAP S/4HANA is the new digital core to offer enterprises a firm and unique platform to improve their business processes and develop analytical and decision-making capabilities whenever they want. It provides real-time insights for business. There are various benefits to using this new tool in your business. Find out the top benefits here.
Advantages of SAP S/4HANA
Several improvements in the data model make SAP S/4HANA a better innovation than the former SAP technology.
These include data models for finance and inventory management. They are simplified in the new SAP S/4HANA with only one table for finance and another for material documentation. The fly aggregation on every table simplifies the data structure and makes accounting flexible and accessible. In the long-term report, there is easy analysis with the limited number of fields.
SAP S/4HANA brings several significant changes in the processes involved in the transactional data for the financial reporting. Businesses enjoy various benefits with the ability to harmonize their internal and external reporting requirements. These features bring more flexibility and simplifications when it comes to accounting.
SAP S/4HANA allows users to store results they get through planning in the ACDOCP table. The actual reporting is provided by comparing entries in the two tables found in the table. All business with the innovation integrated with SAP Analytics Cloud is via the same table using the master data as a reference. All these data are source from SAP S/4HANA to SAP Analytics Cloud.
Easy Management of Cash
SAP S/4HANA is used for appropriate cash management by offering novel user experiences to cash managers. Businesses use it for the end-to-end process of checking their bank statements imports, checking cash positing, and handling transfers with surplus and deficits. Cash managers can also use it for proper bank relationship management. Therefore, businesses will manage their bank accounts as master data using their personalized business attributes.
Analysis of all global bank balances and cash potions is more straightforward with the SAP S/4HANA. It uses the data from all SAP and non-SAP systems to compile and analyze your data effectively. You will enjoy liquidity forecasting, forming appropriate bank relationships, and offers cash managers a smart business cockpit.
Transfer of Prices
Transactions occur differently according to the type of company. For instance, a holding company may do transactions using its subsidiary with other divisions in another company. It is a transfer of process that requires accounting purposes. It will also help to determine the cost of the processes involved during the transactions. SAP S/4HANA offers a direct and better transfer price solution for such businesses. The solution provides the following:
- Enjoy up to three parallel valuation techniques such as legal, group, and profit center valuation. They will offer different perspectives on the value chain in a group transaction.
- The legal perspective offers factual data on all the business transactions with its associated companies.
- Profit Centre valuation treats all centers with a sense of independence using negotiated prices.
- Group valuation is effective for eliminating markups for faster analysis and transactions.
Reliable Business Partner Approach
SAP S/4HANA helps maintain customer master data and vendor master data under one transaction code for ease of analysis. Both data are managed using a central approach that links the business partner and all other components. The business partner role is used as the customer or vendor data, among others.
Users also find the new accrual engine on SAP S/4HANA as an effective technique to perform all accruals. It is easy to locate cists allocated to the fiscal period instantly by posting accrual in the system. The new accrual engine helps to integrate with the general ledger without any manual input seamlessly. It also supports all General Ledger currencies. Postings will perform on ledge level contrary to accounting principle level only as in the former SAP technology.
The new SAP S/4HANA Accrual Engine helps to fully integrate General Ledger by supporting all currencies and offer a straightforward interface to perform all data analysis. Data is stored as line items for easy verifications. Furthermore, users will enjoy a fiscal year variant in General Ledger supported by the new accrual engine.
Simplified Sales and Distribution
The areas of sales and distribution are crucial to any performing business. SAP S/4HANA offers various benefits with capacity planning and other features to boost sales. The changes occur as s restriction of the data models and function in the new tool: a better user experience, a unified functionality, and in-depth integration with the SAP Cloud Hybris. Businesses also use the commentary sales and billing solutions with SAP S/4HANA, similar to the multi-channel billing.
There are various areas in sales simplified on SAP S/4HANA. They include:
- New business partner approach to replace the former ECC SD customer master.
- SAP S/4HANA Finance Credit Management in place of the FI-AR-CR Credit Management.
- SAP S/4HANA Analytics has new ODATA & Open CDS views in place of ERP LIS/ODP.
- SAP S/4HANA International Trade Management replaces SAP SD Foreign Trade.
- New SAP Condition Contract Settlement in place of ERP SD Rebates.
The changes in sales and billing bring about new several new features that businesses will benefits greatly from. The latest data model can be integrated with SAP Fiori apps and streamlined processes across different business lines. It will boost the efficiency of the SAP since it has Leonardo in the sales core processes.
Also, using the SAP Fiori Apps, users can create, release, change and display their sales plan easily. The set sale targets to various dimensions according to the period they have. These activities are active compared to actual sales figures with the targeted sales using a Sales Performance – Plan/Actual app.
SAP S/4HANA is effective in optimizing order-to-cash processes during sales. SAP Fiori apps and analytical views will also help users in managing and controlling sales and distribution. Various options, including simulation and predictive information, allow the sales team to make correct decisions with the new model.
Group Reporting For Financial Coordination
The financial coordination process is a complex process for business departments sorting accounts and finances. However, all large companies must ensure they have entities, various ERPs, and local accounting standards.
You will find a unique on-premise solution from the new SAP S/4HANA. It allows for group reporting for all finances and reporting. It used consolidation solutions such as Enterprise Controlling-Consolidation System (EC-CS) & Business Planning and Consolidation (BPC).
Top reporting features from the SAP S/4HANA includes:
- Automation and consolidation of investments
- Simultaneous legal and management consolidation
- Calculation of multiple group currencies for all groups simultaneously
- Integration into the financial closing cockpit
- Advanced intercompany reconciliation
- Restatements with less data redundancy
- Group structure manager
- Customer defined dimensions
SAP S/4HANA offers real-time business analysis to satisfy all business processes in the digital world. You can connect all IT with your social and business networks and the Internet of Things to effectively move your business into the cloud. SAP S/4HANA offers great innovative ad features rich applications to offer predictive factual insights for real-time data. You can never be wrong with your financial analysis and how to plan for your business process effectively.
SAP S/4HANA allows users to perform effectively on the fly without a hitch for all processes involving planning, execution, simulation, and predictions. You have the highest level of success with a faster drive to impact your business positively. Enjoy the nee designed SAP Fiori UX in the new SAP S/4HANA to enable your business users to get the job done using a customized, responsive, and straightforward user experience right on their mobile devices. SAP S/4HANA is the business suite to reimagine your business and make it ready for the future.