S/4HANA Basic information

Simplify your next generation business processes

with the SAP S/4HANA Business Suite.

Work smarter with SAP S/4HANA.

The SAP Business Suite 4 SAP HANA (S/4HANA) is the new product from SAP, based on the in-memory platform SAP HANA , new architecture, renewed applications, analytics and the modern user interface SAP Fiori. The major innovation of S/4HANA is the radical simplification of the data model and the user experience to help companies innovate and simplify their business processes.

Find out about new innovations and functionality within the following topics:

SAP HANA Database

Faster, smoother, informative.

S/4HANA runs on a SAP HANA database with in-memory capability:

  • In-memory database: data is read from main memory RAM much faster, compared to a traditional database, which reads data from a hard disk. This explicitly accelerates transactions, reports and month end procedures multiple times.
  • The column-based data tables in SAP HANA provide faster access and better compression and allows parallel processing, which has a clear impact on many transactions.
  • Embedded Analytics enable OLTP and OLAP capability in the same system with real time reporting and predictive analysis.
  • There are generally no more aggregate, index and history tables in S/4HANA, aggregates are created instantaneously and dynamically based on line item tables.

Get more information about the SAP HANA Database.

S/4HANA General changes

Moving you closer to business success.

Icon-s4hana-basic-information-business-partner

Business partner

A major change in S/4HANA, which can be anticipated in ECC is the Business Partner Concept, known already from SAP CRM. All customer and vendor master data have to be migrated as Business Partner. SAP aligns the concept of business partner as other Supply Chain Management (SCM) applications like Advanced Planning & Optimization (APO), Extended Warehouse Management (EWM) or Transportation Management (TM) will be integrated to the Digital Core of S/4HANA.

Alles verbinden, Effizienz steigern. Integration

User interface

Fiori is a new User Experience based on web technology. With Fiori you can have good, modern and intuitive user interfaces to operate with your SAP systems. There are plenty of apps available and ready to use. And there are tools and technology to modify existing apps or even create new apps tailored to your needs. The Fiori ecosystem is growing rapidly and offers many options for various use cases and scenarios.

Icon-s4hana-basic-information-implementation

Activate implementation methodology

There is no concept of Blueprinting in S/4HANA implementation. S/4HANA has introduced new ‘Activate’ methodology. SAP offers a pre-built demo system with SAP’s best practices for specific business processes. Business users can now test a demo system to see whether it meets their business requirements or not. Fit-gap analysis can be done after the initial trial period.

S/4HANA Finance and Controlling

Your accounting, simplified.

Icon-s4hana-basic-information-folders


Single source of truth

S/4HANA simplifies the data structures of Finance and Controlling (Finance FI, Asset Accounting AA, Controlling CO, Profitability Analysis CO-PA and Material Ledger) into the Universal Journal with its centerpiece, the single line item table ACDOCA. This reduces aggregate and index tables and therefore reduces the data volume drastically and speeds up transactions and reporting.

Icon-s4hana-basic-information-integration

Integration of
Finance & Controlling

In S/4HANA, only one field of universal journal is used to store both General Ledger account and cost element posting. Reconciliation as in ECC is not needed anymore, period end closing and reporting will be several times faster.

Icon-s4hana-basic-information-CO-PA


Profitability Analysis

Account based Profitability Analysis CO-PA is now the default option and Costing based CO-PA is optional. Both options can be run simultaneously.

Icon-s4hana-basic-information-sap-new-gl

New General Ledger

S/4HANA is based on the New General Ledger (GL) of ECC, and the migration is done automatically when converting from ECC with Old General Ledger to S/4HANA. Customers do not need to use the features of New General Ledger as Document Split or Parallel Ledger, but can implement during conversion or at a later stage. The New General Ledger’s functionality is a pre-requisite for the new Asset accounting.

Icon-s4hana-basic-information-credit-managemtn

Credit management

Credit Management of ECC (FI-AR-CR ) is replaced by Credit Management of Financial supply chain management (FSCM-CR) which is based on a distributed architecture and allows interfaces with external credit rating agencies. Traditional FI-AR-CR credit control setting requires a high degree of manual work. FSCM-CR has advanced features such as:

  • Credit rule engine for automatic risk scoring & credit limit calculations
  • Automatic update to master data on approval of credit limit etc.
  • Work flow for credit events etc.

Icon-s4hana-basic-information-revenue-recognition

Revenue recognition

Revenue Recognition is being replaced by SAP Revenue Accounting and Reporting (RAR) due to new accounting standard released jointly by the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) and to meet the requirements of parallel accounting and cost recognition.
Existing SD Revenue Recognition provides the option of recognizing the revenue based on an event or over a period of time apart from the standard way of realizing revenue on billing. The new standard introduces the 5-step model (Identify the contract, separate performance obligations, determine transaction price, allocate transaction price and recognize revenue).

S/4HANA Logistics

Giving you control over your products.

Icon-s4hana-basic-information-ATP

aATP

The new advanced ATP check (aATP) is optimized for the HANA database. The logic to read the planning elements has been fully redesigned to improve the performance and is benefiting of the new introduced inventory data model.

New confirmation strategy in backorder processing.

  • Predefined confirmation strategies: Win, Gain, Redistribute, Fill and Lose

Product allocation process

  • New developed
  • Neither ECC process, nor APO process
  • Reduced Customizing effort in Fiori Apps

Release for Delivery

  • New Fiori app to review shortage situations and the result
  • Easy control of assigning critical Sales order requirements

The new developed aATP is neither a replacement for gATP, nor delivering all features of gATP in the near future. gATP can be called from S/4HANA for very complex ATP scenarios.gATP on APO has unique features like Rule-Based ATP (for substitution of location plant or material), Multi-Level ATP check, advanced check for product allocation with ATP or advanced Back Order Processing.

Icon-s4hana-basic-information-warehouse-management

Warehouse Management

Existing Warehouse Management modules will be replaced by SAP’s new application for Extended Warehouse Management (EWM). There will be two options:

  1. Native integration inbuilt in S/4HANA

  2. Side car approach for decentralized deployment

There are several advantages like complex warehouse processing through Process Oriented Storage Control (POSC), improved and easily customizable RF functionality, value added services like kitting, enhanced wave & replenishment processes and labor management.

Icon-s4hana-basic-information-foreign-trade

Foreign trade

Foreign trade functionality has been replaced by Global Trade Services (SAP GTS). Advanced features are Sanctioned Party List Screening (SPL), automated embargo check, automatic and simplified license check and automatic import / export declaration.

Icon-s4hana-basic-information-material-ledger

Material ledger

Activation of material ledger (ML) is mandatory. ML valuates inventory in multiple currencies. Traditionally inventory is mainly valuated with a single currency in SAP ERP. ML allows valuation in two additional currencies. Today’s global organizations operating in different countries need to valuate inventory in multiple currencies. For example, a company in Norway dealing with oil needs to maintain their books in Norwegian currency (NOK), they would also like to evaluate their inventory in USD as oil is traded on the international market in USD.

Immer auf dem neusten Stand. Account- und Opportunity-Management

Material Requirements Planning

Material Requirements Planning (MRP) in ECC is run through batch jobs during off peak hours. As there is no need for batch jobs in S/4HANA, MRP can now be run in real-time.
MRP can be run on plant and MRP area level, but not on storage location level. In ECC, Storage location can either be excluded from MRP or planned separately. SAP recommends using MRP area with MRP type (ND in case of exclusion or VB for re-order point planning) for those scenarios at storage location level. MRP with subcontracting has also been simplified.

Icon-s4hana-basic-information-material-numbers

Material number

The Material number can now be 40 characters, as opposed to the existing 18. The impact of this extension on custom coding, interfaces and other SAP applications needs to be evaluated before switching to 40 characters.

Transportation Management with SAP S/4HANA

Transportation Management

Since the Release of S/4HANA 1709, S/4HANA Supply Chain for Transportation Management (TM) is finally fully embedded in the S/4HANA environment. Of course, LE-TRA can be still used in S/4, but it is part of the Compatibility Scope, which means that it can be used during migration phases but it is not part of the target architecture. There are several possible scenarios to run TM in S/4HANA, which starts with Basic Shipping, and ends with the complete scope of the inbuilt TM Solution. The functional Scope of S/4HANA Supply Chain for TM is the baseline for full Automation, Control Tower and Management by Exception Scenarios.

S/4HANA Sales & Service

Intelligent, quick, effective support.

Icon-s4hana-basic-information-rebate

Rebate Management

The Settlement Management Solution is the functional equivalent of SD Rebate processing on S/4HANA. The Condition Contract Settlement Solution allows you to set up different rebate scenarios and settlement processes to fulfill the business requirements.

Key Features:

  • Flexible Data Sources
  • Business Selection Criteria
  • Settlement Calendar
  • Streamlined Contract Entry and Contract Processing

Icon-s4hana-basic-information-ATP

Backorder Processing

The new Backorder Processing (BOP) introduced with S/4HANA is a new approach to re-scheduling and re-distributing order quantities depending on the Advanced Available-to-Promise (aATP) confirmation strategies: “Win, Gain, Redistribute, Fill, Lose”.

The Backorder rules follow a custom segmentation of ATP requirements. To fulfill your company’s strategy of backorder processing, you can trigger re-scheduling and re-distribution based on specific selection criteria and prioritizations.

Key Features:

  • Maintain and reuse existing BOP variants
  • Assign confirmation strategies
  • Define new requirement categories
  • Define global filters
  • Simulate and schedule backorder processing runs in one step

SAP-Hybris-Sales-Icon-4-Teammanagement

Lead and Opportunity Management

With the introduction of S/4HANA for Customer Management, the Lead and Opportunity Management of SAP Business Suite CRM is available on S/4HANA. It is now possible to plan the sales pipeline without the need for an additional CRM Server, which has a positive impact on the Total Cost of Ownership (TCO). This feature is accompanied by the Activity and Task Manager.

Icon-s4hana-basic-information-foreign-trade

Service Contracts

With the introduction of S/4HANA for Customer Management, the Service Contract Management of SAP Business Suite CRM is available on S/4HANA. Service contracts represent long-term service agreements with customers in relation to the content and scope of services guaranteed within a predefined timeframe.

In general, the “S/4HANA for Customer Management – Service Core Option” is the successor solution for the Customer Service (CS) solution that is currently running in “compatibility mode” on S/4HANA, support ends for this in 2025.

icon-price

Pricing

The Pricing data model has been optimized for the SAP HANA database.
Some database tables and structures have been replaced and data elements have been changed in their length. As an example, the number of customer condition tables has doubled and the number of access steps in an access sequence has increased to 999. Migration reports are rolled out to update the existing condition records.

Book your individual workshop now.

Find out from our experts which functions offer the best value added for you.

Please contact us with any questions or if you wish to set up a 1:1 meeting with one of our experts. Or just call us
on +49 6221 187 62 – 100.

We look forward to hearing from you.