Benefits Of SAP S/4HANA Finance For Businesses: Case Study Analysis

A brief historical overview of the SANA S/4 HANA Finance

The report will consist of a study regarding SAP S/4 HANA it is a computerised accounting system. This SAP ERP 6.0 runs the database of SAP HANA and is wholly capable of performing it. In the year, 2014 there released the SAP simple finance was polished with SAP HANA that acts as the optimized form of the Financial Accounting module in the Business suite of SAP. In the year 2015, the SAP S/4 HANA was released. These days SAP S/4 HANA finance is accessible in the both the versions that is the cloud version as well as the on-premise version. This study will consist of a brief discussion about the overview of the computerised accounting software that is the SAP S/4 HANA. Again, the report will consist of a differentiation of SAP S/4 HANA with another software named as the SAP ERP FICO. The benefits of the SAP S/4 HANA Finance are also to be discussed in this report for the Finance purpose of the businesses of the companies. Some case studies are also to be discussed in this report to recognise the issues while the companies are migrated to SAP S/4 HANA from any other accounting software. A company with the assistance of the SANA S/4 HANA can form a combined image about all the financial as well as the effective information for lending easy and supple reportage with the computerization of developments.  

The SAP S/4 HANA previously termed, as the SAP Simple Finance are comprised of many characteristics for example the streamlined design, universal journal as well as the real time analytics. The S/4 HANA suite that is redesigned for the increment of the efficiencies of the procedures through the assets’ life cycle is an example of the new SAP Asset Accounting. As the announcement of the SAP S/4 HANA Finance is announced by the SAP in the year 2014, there raised many queries regarding the knowledge and the details about the product (Adams 2016). It was assumed by much of the race including the customers of the SAP that the product is a sub-module of the Financial Accounting and Controlling that is a modest way to organize than that of the exertion which is essential in ERP suite at present. For receiving a clear image of the SAP S/4 HANA Finance it is firstly required to get an idea about the journey of the SAP along with the SAP HANA as because this relates to the SAP S/4 HANA as well as the DNA of the SAP (Adenike and Michael 2016).

The difference between SAP S/4HANA Finance and current SAP ERP FICO

In the year 2015, in the month September, the SAP S/4 HANA has replaced the SAP Simple Finance. As the SAP S/4 HANA is the portion of the S/4 HANA suite thus, to receive a clear image of the S/4 HANA is essential (Aduamoah et al. 2017). The composition of the SAP S/4 HANA is consisting of 4 modules:

• The core module:As a portion of the core or the functional component, the SAP provides numerous capabilities of the finance as well as the enhancements. For considering a relocation or to advancement the S/4 HANA, from the several figures like the ECC that is the SAP ERP Central Component 6.0, SAP Net Weaver 7.4, Enhancement Package 7, SAP Hana version 1.0, at least one is required. A migration from the ECC 6.0 to S/4 HANA is an operational advancement that has included the transaction tables migration (Alamin et al. 2015).
• The analytics modules: The real-time reporting is enabled in this component as well as the analytics which castoff the pre-packaged view of the HANA Live. For the installation purpose of the HANA Live 1.0 the pre-rudiments are the SAP HANA and the SAP ERP which is an elective module (Anaeli 2018).
• App Module:In an enterprise, for the chief financial verdict producers this module acts as a collection of the analytical module in the Financials Suite (Askarany 2015).
• The user involvement module: This is the GUI module which is a SAP that is based on the Fiori assists in the interaction of the core module by the Fiori which is very much comfortable to use. Here, the SAP Gateway version 2.0 and the SAP Net Weaver 7.4 is essential. As this is an optional module, thus; the continuation of the SAP GUI which is existing or the Net Weaver Business Client as the boundary of the operator (Burgess and Paguio 2016).

The SAP S/4 HANA is invented for the goal of removing the traditional boundaries among the analytics, transactional as well as the system planning for the providence of prompt highlights and assessment by the usage of the financial data of all levels. The decision maker can use the SAPS/4 HANA. Model data financing and potential decision forecasts are creation by the assistance of the usage of the financial data of the real-time that derives from numerous methods (Carnero 2015).

The goal of the SAP S/4 HANA are the financial specialists as well as the professionals including the industries, which is comprised of the CFO that is the Chief Financial Officer and the further individuals are included in the treasury, tax and accounting, compliance and risks, financial operations. This user has its ground extending from the small organisations to Fortune 100 enterprises and is also comprised of the worldwide companies (Chan et al. 2018).

The SAP S/4 HANA main benefit is speed during processing which is combined with the integrated characteristics because of the numerous financial operations, for example management accounting as well as the financial accounting. Tracking the reason, the SAP S/4 HANA finance permits a much speedy reconciliation of the procedures of finance like in the quarterly close as well as a single source is provided of the truth of finance for the whole organisation, in accordance with the SAP (El-Sayed and Youssef 2015).

The model of SAP FI is used for both internally and externally reporting. All the financial transactions are recorded is the main objective which the entity posted, and the financial statement is produced which are correct at the termination of the duration (Etemadi and Kazeminia 2014). The chief functions of the SAP FI module is to be explained as follows:

Account Receivables:

The sub module is the Account Receivables where all the transactions are captured along the customers and the customer accounts are managed. The accounts of the customers are to be maintained separately and at the time of any transaction that are accounted for the customer accounts, the accounts are reconciled in the usual ledger which are updated with the real time figures. The account receivables transactions are comprised of the credit memo posting, invoice payment, invoice posting, down payments, executing and dunning the reports of the customers (Fagbemi and Olaoye 2016).

Benefits of SAP S/4HANA Finance for businesses

Account Payables:

The transaction of the vendors are covered by this is sub module. Therefore, the accounts of the vendor are managed. The accounts of the vendor are to be maintained separately. In addition, at the time of any transactions that are to be posted on the accounts of the customer, the accounts are submissive in the usual register that are efficient with the actual time facts (Fehrenbacher and Djamasbi 2017). The account payables transactions are comprised of the following characteristics that is the credit memo posting, automatics payment program, down payments, invoice posting, executing the reports of the vendors and the invoice payments (Georgantopoulos et al. 2018).

Asset Accounting:

The Asset Accounting manages the whole operations that is linked with the assets of the entity. During the time, the transactions are forwarded in the accounts of the assets the updating of the accounts of reconciliation in the usual ledger are performed in the actual time (Greef et al. 2017). The accounting of the assets transactions is comprised of the asset transfer, asset retirement, asset revaluation, asset acquisition, asset depreciation and the asset sale (Halbouni and Nour 2014).

Bank Accounting:

The bank accounting captures all the transactions that are linked with the bank. Bank reconciliation is performed for the reconcile of all the transactions purpose which is registered in the bank statements which is compared for the system transactions (Kristandl 2017).

Benefits of SAP S/4HANA Finance for businesses:

The SAP S/4 HANA Simple Finance is extended throughout the world in about 500 companies, and the focus of this creation is the leading professionals and the financial experts over the industries (Pan and Seow 2016). The SAP S/4 HANA Simple Finance revolutionizes the finance industry as the firm is enabled with the major sharing of the data, faster reporting and closing with the analytic decision supported by the speedy transactions are the success reasons (Perdana et al. 2018).

The user involvement and the core competent:

As a core competent SAP has been provided with the numerous financial benefits as well as the enhancements. For the up gradation in S/4 HANA must be existing on the SAP HANA version 1.0 or the SAP Net Weaver 7.4 (Ptak and Schragenheim 2016).

The comfortable screens of Fiori assist to communicate along the core competent by the SAP GUI component that is based on the Fiori. This component is advanced with the elective as the user interface of the NETWEAVER CLIENT or with the SAP GUI (Quinn and Strauss 2017).

The APP component that is upgraded and the enhanced reporting component:

With the assistance of the component of the HANA Live that is repacked the user is enabled with the analytics and the reporting of the real-time that is to be installed easily with the elementary component SAP HANA or the SAP ERP (Ram et al. 2015). The real focus of the component is on the decision makers of the chief finance of an enterprise where the gathering of the Financials suite of entire analytical applications (Saganuwan 2015).

Strength of the one with the removal of the Analytics or Reporting:

The universal journal is initiated in SAP S/4 HANA which is leading to SAP to be the individual accounting transaction storehouse that concluded in the individual unified journal despite of the posting of numerous variant balance sheets like the asset accounting log, material log. The component of the price determination for the functioning purpose of the material ledger that produces a straight entry towards the table of journal (Smith and Binti Puasa 2016). The major significant feature is the conclusion of the SAP in the reduced data as well as the replications over the FI modules. The SAP HANA system along with the S/4 HANA has enable the client in reporting and transaction at the same time towards the SAP BW System (Spraakman et al. 2015).

Simplified Data along with the Fiori based SAP Clear Interface:

The SAP S/4 HANA after its release has oversimplified the data flow of the FI modules. Those data’s involvement with the FI modules has a transparent idea of each unique transaction that appears tiresome and consumption of time. The data model complexity is removed by the SAP S/4 HANA Finance system (Teittinen and Granlund 2017).

As the user interface, the Fiori plays a significant role for the cloud version. The SAP which is based on the GUI screens has detached the disorder by the Fiori interface and is similarly performed regarding the whole devices whether in a laptop or in a mobile device. The performance of Fiori is based on both the analytics of S/4 HANA as well as the HANA Live content (Werner 2017).

Account Analysis and the Planning of Finance:

The real-time data access towards the financial planners happened because of the software that is updated which has given them freedom for the benefitting decisions about the businesses. The SAP S/4 HANA Simple Finance provided a common model planning which has empowered parallel completion of the users and ready for financial analysis (Wongsim 2016).

The SAP S/4 HANA Simple Finance with its incredible characteristics assists the users for the generation of the real-time reports which lets them to go deeper for the generation of the real-time reports which assists towards the dimensions of reporting as well as the speedy closure of the books. The SAP S/4 HANA books closure takes time for 2 weeks while in average the time taken is 3 weeks for the other industry (Ylä-Kujala et al. 2017).

Risk Management of Finance and treasury:

Any types of the occurrence of frauds by the dubious data as well as the financial faults are taken care of by the SAP S/4 HANA Simple Finance with the assistance of the enterprise risks and automating compliance. With the assistance of the SAP S/4 HANA these frauds are detected and are lessened within the suitable span (Zainol et al. 2017).

Contemporary Enhance Comfort of Use:

The ECC applications is enabled by the user interface of the innovative Fiori which is run on the advanced format that is based on the web. The view is changed by the usage of the Fiori in the contemporary design which is expansively reshaped as per the experience of the user. The Fiori is made best by the qualities which are personalized and are simple, highly responsive, that ultimately makes the path for the user experience that is based on the roles with the best operator involvement regardless of any device (Zakaria et al. 2017).

Formulating for the upcoming origination with SAP S/4 HANA Finance:

Most of the users are fascinated by one unique thing that is the origination application, which the application of SAP which is developed for the future perspective and the ability of the SAP S/4 HANA Simple Finance is synchronized with the assistance of the newest users, demand and the technology. In the world of today there is a modification occurring in an unexpected speed which is unable for most of the companies to track, while, an advanced technology is provided by the SAP S/4 HANA Simple Finance which assists the companies to be updated with the latest technologies (Zhou 2017).

The SAP S/4 HANA Simple Finance tools are residing for the collaborative operation of the finance, management of the treasury and supporting the closure of finance.

Financial Analysis and Planning:

One of the most efficient functions of the finance is the financial analysis and planning which marvellously increases the planning sequence and increases the profitability of the functions of finance. The planners easily challenge the issues of the data replication as the master data of the actual time is to be accessed very efficiently with the accruals in the SAP S/4 HANA Simple Finance. The planning of the clients is easily related, and the operational data of the actual time is utilized which is helpful during the removal of the unnecessary data as well as the possible time lags.

Aligning cloud and the On-premise Application Scenarios:

The advantages of the On-premise and Cloud Scenarios has gained the businesses by migration as well as the data quality solutions is coupled that is to be applicable for either version or is implemented in a hybrid method.

The issues that are faced by the companies during the time of migration towards the SAP S/4 HANA Simple Finance are as follows for the Bluefin Partners:

During the migration of the large data, becomes much expensive at the aspect of the system of SAP S/4 HANA Simple Finance. The team is guided by the experts at the time of the assessment of the strategy of the data migration, comprising of the early viewed reports, life cycle and the growth of the data as well as the factors of the compression etc. which becomes applicable in both the scenarios of the greenfield as well as the brown field.

For the re-evaluation purpose, the conversion to SAP S/4 HANA Simple Finance becomes a good opportunity as most of the organisations who are practising the ERP system for a good time must customize to a confident amount like missing functionalities, integration with further systems, etc. The partners of the Bluefin clear such hurdles with the assistance of the custom code remediation.

As the landscape provided by the ERP which provides an original platform that is up to date, out of the box and a single system whose landscape can significantly impact the ability to migrate or the project cost is affected.

The migration of the SAP S/4 HANA Simple Finance is not only in the technical ground but is a unique opportunity for unlocking the novel business potentialities and the changes are accommodated in the operation way. Bluefin has nowadays changed in a quicker and better to integrate and acquire novel companies.

The issues faced by the Zarantech companies during the migration of SAP S/4 HANA Simple Finance:

The business is reconstructed with the development of the sellers and the clients. For the continuation of a new business project partner a good amount of work is required and coordination among the partners and the clients.

By the installation of the SAP S/4 HANA Simple Finance executed the Software Update Manager and the migration of the financial data is executed which is required as a guide for the installation. Though, there is a requirement of the check of the transactional data consistency before the real migration table execution. There is a check in the free consistency of the SAP ERP System which appears dissimilar after the installation of the SAP S/4 HANA Simple Finance.

The financial data migration is the critical phase of any changeover to SAP S/4HANA. It is essential in this stage, for the complete transactional data transfer in the new data perfect. To effectively data handover, the existing transactional data is flawless and steady, without the apprehension of the success of the data veracity, however, the chances of error is more. The reasons that visualises the winding up of the enterprise with varying transactional data.

• Specially advanced programs and boundaries make apprises because of the variable and conflicting apprises.
• In master data there are small alteration or differences.
• These changes are performed directly to the standard tables, with the assistance of a function code.

Therefore, if a company has a data of massive size, a significant degree of custom cypher is to be failed in data resolving at the year-end procedure of closing which is experienced are the issues with the varying transactional data.

Conclusion:

Thus, it can be concluded that the SAP S/4 HANA Simple Finance is a computerised accounting software that is very much beneficial. Enterprises can diminish closing capacities, improve regulator and acquiescence, costs and even adjacent the books earlier by means of SAP S/4HANA. The process of Finance for financial and accounting. SAP Accounting assimilates accounting in the aspects of financial and management with viability data into a solitary universal periodical. In case of the Zaran tech company there are the encounters and problems in the system of SAP S/4HANA system of the alteration that is faced through the most organizations. Through a suitable plan and preparations, it is conceivable to accomplish the conversion of scheme to SAP S/4HANA easily. The Bluefin Company has also possessed many advantages along with some disadvantages but has been simply fitted in making progress.

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