Moving you closer to business success.
Moving you closer to business success.
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.
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.
There is no concept of blueprinting in S/4HANA implementation. S/4HANA has introduced the new ‘Activate’ methodology. SAP offers a prebuilt 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.
Your accounting, simplified.
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.
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.
Account-based Profitability Analysis CO-PA is now the default option, and costing-based CO-PA is optional. Both options can be run simultaneously.
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 prerequisite for the new Asset accounting.
Credit Management of ECC (FI-AR-CR ) is replaced by that 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:
Revenue Recognition is being replaced by SAP Revenue Accounting and Reporting (RAR) due to the new accounting standard jointly released by the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) and meeting 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 the transaction price, allocate transaction price and recognize revenue).
Giving you control over your products.
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 from the newly introduced inventory data model.
New confirmation strategy in backorder processing.
Product allocation process
Release for Delivery
The newly 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 backorder processing.
Existing Warehouse Management modules will be replaced by SAP’s new application for Extended Warehouse Management (EWM). There will be two options:
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.
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.
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.
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.
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.
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 still be 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.
Sales & Service
Intelligent, quick, effective support.
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.
The new Backorder Processing (BOP) introduced with S/4HANA is a new approach to rescheduling and redistributing 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 rescheduling and redistribution based on specific selection criteria and prioritization.
Lead & Opportunity
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.
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 for this ends in 2025.
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.