SAP S/4HANA Finance, also known as SAP S4 Finance or SAP Simple Finance, is the name of the next generation of FI/CO in SAP. S/4HANA Finance is the SAP response to today’s demands for fast, coordinated and detailed financial reporting. Mercoline supports you along the way to SAP S/4HANA Finance, no matter the finance system you choose.
S/4HANA Finance is based on the SAP HANA platform’s in-memory technology and is designed to simplify the financial functions of SAP ERP. As such, S/4HANA Finance combines the logic of ABAP functionalities with the advantages of HANA technology.
S/4HANA Finance is based on three pillars:
- SAP Accounting: Master and transaction data can be analysed across applications. Via the applications “Finance”, “Controlling”, “Asset Accounting”, and “Materials Management”, the account presents the leading, and therefore most important, element.
- SAP Cash Management: Liquidity analyses can be evaluated in relation to applicable cut-off dates using finance data that has already been accounted for or planned finance data.
- Integrated planning: The components Business Planning and Consolidation (BPC) make it possible to register and process planned and forecast values directly in the SAP ERP.
- One table containing all necessary information
- Switch from a dual-circuit system to a single-circuit system
- Highest level of data granularity and harmonisation
- Eliminates the need for coordination between FI and CO
- Flexible reporting made easy
- Asset management is moved directly into the general ledger, producing real documents in real time
- FI posts flow immediately into the financial statement, i.e., the “daily soft closing”
- Accelerated financial statements: Finance data from several SAP systems or non-SAP systems are merged in S/4HANA
- Altered master data model, e.g., partner master data (business partners)
- No more cost categories; accounts are all general ledger accounts (including secondary cost categories)
- Account-based profitability analysis possible, including cost allocation of sales and production variances
- Embedded analytics: Reporting tools from SAP BW in real time in SAP ERP
- BPC embedded: Planning tools are also available in ERP
SAP S/4HANA Finance makes integrated finance reporting possible. The strategic decision to choose the SAP standard of the future nevertheless requires a strong knowledge base and careful consideration of all aspects. Whether of a business or technical nature, challenges must be aligned with the company and IT strategy. Mercoline support can help reduce the complexities associated with S/4HANA Finance and assist you in overcoming potential barriers. The HANA database and EHP 8 are required for converting to SAP S/4HANA Finance. An evaluation should be conducted to asses whether new processes should be implemented or whether these innovations will influence processes already in place.
Here’s how Mercoline supports you in the migration to SAP S/4HANA Finance:
Presentation and explanation of the functionalities, usage possibilities, and technical requirements associated with S/4HANA Finance
Evaluation of your finance operating model, your tax and reporting requirements, or the level of compliance with technical requirements and functional arrangements; use of SAP Custom Code Analysis Tools
Depiction of implementation options (e.g., Central Journal, Greenfield/Brownfield, etc.) and the development of a customised S/4HANA finance roadmap
Implementation on the basis of the roadmap, generally with the following steps:
- Preparation for migration
- Data migration
- Tests and going live