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    Sap Ecc and Sap S4hana

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    Raju Bothra
    SAP ECC and SAP S/4HANA are SAP's ERP software solutions, but SAP S/4HANA streamlines features from ECC to reduce costs and boost efficiency. Key differences include SAP S/4HANA using an integrated business partner model, merging financial and controlling modules, and making the material ledger mandatory. Additionally, SAP S/4HANA offers new features like the universal journal ACDOCA and global trade services to further optimize processes. Migrating to SAP S/4HANA can provide benefits like lower costs, improved integration, and faster decision-making.

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    Sap Ecc and Sap S4hana

    Uploaded by

    Raju Bothra
    250 views9 pages
    SAP ECC and SAP S/4HANA are SAP's ERP software solutions, but SAP S/4HANA streamlines features from ECC to reduce costs and boost efficiency. Key differences include SAP S/4HANA using an integrated business partner model, merging financial and controlling modules, and making the material ledger mandatory. Additionally, SAP S/4HANA offers new features like the universal journal ACDOCA and global trade services to further optimize processes. Migrating to SAP S/4HANA can provide benefits like lower costs, improved integration, and faster decision-making.

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    SAP ECC AND SAP S4HANA

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    SAP ECC and SAP S/4HANA are SAP's ERP software solutions, but SAP S/4HANA streamlines features from ECC to reduce costs and boost efficiency. Key differences include SAP S/4HANA using an integrated business partner model, merging financial and controlling modules, and making the material ledger mandatory. Additionally, SAP S/4HANA offers new features like the universal journal ACDOCA and global trade services to further optimize processes. Migrating to SAP S/4HANA can provide benefits like lower costs, improved integration, and faster decision-making.

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    © All Rights Reserved
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    Download as pdf or txt
    250 views9 pages

    Sap Ecc and Sap S4hana

    Uploaded by

    Raju Bothra
    SAP ECC and SAP S/4HANA are SAP's ERP software solutions, but SAP S/4HANA streamlines features from ECC to reduce costs and boost efficiency. Key differences include SAP S/4HANA using an integrated business partner model, merging financial and controlling modules, and making the material ledger mandatory. Additionally, SAP S/4HANA offers new features like the universal journal ACDOCA and global trade services to further optimize processes. Migrating to SAP S/4HANA can provide benefits like lower costs, improved integration, and faster decision-making.

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    of 9

    Key Differences Between

    SAP ECC and SAP S/4HANA

    @darshiljain
    SAP ECC

    SAP ECC stands for SAP ERP Central Component.


    You can configure SAP ECC to suit your needs in all areas of
    your business, from finance to HR to logistics . SAP ECC is
    modular in design, which makes it highly customizable . SAP
    ECC has many interactions between components, which makes
    it flexible but also more complicated If you change one area, it
    affects the function in other areas . You need to carefully plan
    changes like upgrades and add-ons so you don’t disrupt
    important business functions . This also applies to migrating
    your systems to SAP S/4HANA.

    @darshiljain
    SAP S/4HANA
    SAP S/4HANA is SAP’s newest generation of ERP software that
    works on on-premise and in the cloud.WithSAP S/4HANA, you
    can analyze large amounts of data in real-time. You’ll also enjoy
    features like:

    Personalized insights
    Integrated processes
    Embedded cybersecurity

    It uses technologies like AI, machine learning, and automation


    to improve business efficiency and speed.
    The main downside is that SAP S/4HANA is only compatible
    with the SAP HANA database.
    @darshiljain
    How is SAP S/4HANA Different
    From SAP ECC?
    SAP S/4HANA streamlines features and processes from SAP ECC to reduce costs
    and boost business efficiency. This means some features have changed, while
    others have been replaced or combined into new features.
    Some of the key changes in SAP S/4HANA are listed below.

    Default Account-Based CO-PA


    In SAP ECC, costing-based CO-PA (CO-Profitability Analysis) is the default option.
    But in SAP S/4HANA, the default option is account-based CO-PA, though you can
    run both options together.

    Integrated Business Partners


    In SAP ECC, customers and vendors are separate data objects. SAP S/4HANA
    integrates customers and vendors into a unified master data object called business
    partners. Customer-vendor integration has several benefits, such as:

    One business partner can have multiple roles and addresses


    General data is shared across roles, which reduces your database footprint
    There's less redundancy since unused data is deleted after a certain time-period
    FI and CO Merger
    Businesses manage their financial data in SAP ECC with both FI (Finance) and
    CO (Controlling). In SAP S/4HANA, FI and CO are part of a single table in
    ACDOCA, the Universal Journal. This means you no longer have to reconcile
    them with the General Ledger at each period-end. ACDOCA reconciles them
    automatically in real-time, so period-end closings are simpler in SAP
    S/4HANA.

    Mandatory Material Ledger


    The Material Ledger (ML) is another feature that's optional in SAP ECC but
    mandatory in SAP S/4HANA. Most companies don't activate the ML in SAP
    ECC due to frustration with the many aggregate and index tables. But in SAP
    S/4HANA, the ML is part of ACDOCA, so this frustration is now a thing of the
    past.

    @darshiljain
    New Features in SAP S/4HANA
    SAP S/4HANA includes a ton of new features to help you manage your data more effectively.
    Key features include the following.

    ACDOCA: The Universal Journal


    As mentioned before, SAP S/4HANA combines several data modules into a single table called
    ACDOCA (the Universal Journal). This includes asset accounting (AA), GL, ML, management
    accounting (MA), FI, and CO-PA. ACDOCA removes many aggregate and index tables, which
    greatly reduces your data footprint. It's also a much more efficient system.

    The SAP HANA Database


    As we discussed earlier, SAP S/4HANA can only run on the SAP HANA database. But, thanks to
    the SAP HANA Cloud database, SAP S/4HANA is faster and more efficient than SAP ECC. Why?
    There are several reasons. Firstly, SAP S/4HANA reads data from the main memory instead of
    the hard disk, so there are fewer data movements. Next, the tables in SAP S/4HANA are
    column-based instead of row-based, so it only reads the relevant column in a query. It can also
    process different columns in parallel. There are no aggregate, index, or history tables since
    applications can access the original data. Lastly, SAP S/4HANA combines the online
    transactional processing (OLTP) and online analytical processing (OLAP) tables. You no longer
    need to reconcile them.

    @darshiljain
    Global Trade Services
    SAP S/4HANA has global trade services (GTS), which replaces the foreign trade
    functions in SAP ECC. SAP GTS uses automation to speed up processes that were
    manual in SAP ECC. This includes embargo checking, license checks, and import and
    export declarations.

    Revenue Accounting and Reporting (RAR)


    The SAP S/4HANA Revenue Accounting and Reporting (RAR) module replaces SAP
    ECC’s SD Revenue Recognition module. RAR is an add-on that’s based on the new, five-
    step revenue recognition model found in International Financial Reporting Standard 15
    (IFRS 15). RAR comes with new optimized contract management capabilities to comply
    with IFRS 15. At the same time, it simplifies revenue recognition.

    SAP FioriUser Interface


    SAP S/4HANA introduces a new user interface, SAP Fiori. SAP Fiorigives users a
    consistent, intuitive, and integrated experience. With SAP Fiori, you can get work done
    faster and more accurately. This speeds up onboarding and training, and provides a
    better user experience. You can also create custom enterprise apps that work
    consistently across devices.

    @darshiljain
    Benefits of Moving to SAP S/4HANA

    In 2021, 72% of businesses said the biggest benefit of SAP


    S/4HANA was improved efficiency, followed by
    greater satisfaction (61%). Other benefits of moving to SAP
    S/4HANA include:

    > Better integration with other SAP products.


    > Lower costs, such as lower operational and ownership costs.
    > A smaller database footprint due to simplified data models.
    > Automated processes improving productivity and
    performance.
    > Faster, more intelligent decision-making.
    > Higher overall profits.

    @darshiljain
    @darshiljain

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