SAP S4 on HANA – New Finance

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What is S/4HANA?

SAP HANA is an in-memory, column-oriented, relational database management system developed and marketed by SAP SE. SAP HANA was previously called SAP High-Performance Analytic Appliance. SAP first announced in 2010, it quickly became clear that SAP HANA would be the foundation for everything at SAP. With columnar storage, advanced in-memory compressions, and unmatched processing power, SAP on HANA is fast, empowering businesses to run in real-time, crunching Big Data – transactional, operational, structured, & unstructured – to transact, analyze and predict instantly on a single platform at the moment of opportunity. SAP S/4HANA, the next-generation business suite designed to help run simple in the digital economy. This new suite is built on advanced in-memory platform, SAP HANA, and 0ffers a personalized user experience with SAP Fiori.

S/4HANA = Suite on HANA (ECC on HANA) + s-innovations, where currently available s-innovation is Simple Finance 2.0.  So until Q3/2015, S/4HANA = ECC on HANA + Simple Finance 2.0, and in Q4/2015, S/4HANA = ECC on HANA + Simple Finance 3.0 + Simple Logistics 1.0.

In breaking away from past limitations with SAP S/4HANA. It will help to discover how to connect an enterprise to the Internet of Things and business networks, predict and simulate outcomes on the fly, and focus on essential decisions and tasks from any device, all in real time.

An in-memory database is a database management system that primarily relies on main memory for computer data storage. SAP S4 HANA is contrasted with database management systems that employ a disk storage mechanism. Main memory databases are faster than disk-optimized databases since the internal optimization algorithms are simpler and execute fewer CPU instructions. Accessing data in memory eliminates seek time when querying the data, which provides faster and more predictable performance than disk.

Business benefits for companies who adopt SAP’s S/4 HANA and Simple Finance as an enterprise resource planning (ERP) foundational solution for their business operations:

• Less redundant data
• Less reconciliation effort
• Better user experience with Fiori
• Simplified master data
• Transaction processing and analytics together
• Real time analytics
• Better system performance
• Accelerated financial close

What does S4 on HANA Bring to clients

• The technology shift from ECC to S/4 is as significant as the shift from the mainframe SAP R/2 solution to the client server SAP R/3 solution in the early 1990’s.
• Immediate opportunity since many companies chose not to migrate their ERP to Suite on Hana due to:

–Focus on BW to Hana migration

–Were waiting to better understand the business benefits of HANA beyond system performance improvement.

• Imagine being able to render the maximum amount of information to a single user’s fingertips through analytical insight, master data and transactional processing at the same time – this is possible with S/4…..
• The speed of the HANA database and the simplification that Simple Finance brings are major innovations. We must keep in mind though that the new technology is in essence an enabler for much bigger and bolder innovations in Enterprise applications and especially in Finance.

–Employee roles are transformed, employee effectiveness is maximized, data entry clerks turn into knowledge workers (e.g. customer service clerk can see customer profitability on same screen during collections call)

• To re-imagine the roles of our clients’ employees, we must reinvent the art of the possible. As leaders in our SAP business and in this industry, we must break out of our comfort zone, retool ourselves and our teams, and encourage innovation focused recommendations to our clients.

New Universal Journal Entry will store all the information in one central table and views are created in HANA to keep the old tables like BSEG and BKPF.

• Dramatically reduced reconciliation effort (no sub-ledgers, no aggregates, no separation of OLTP and OLAP & reduced redundancy)
• Flexibility: change of reporting structures (e.g. introduction of new dimension) much easier because there are no pre-calculated aggregates
• Maximum detail & total visibility of information (Outliers, Data Distribution, Correlations are no longer hidden in aggregates and available for analysis)
• No aggregates, Post an expense account, show entry in Universal Journal, and show balance after posting
• No need for special tables to get open balances for vendors and Customer, Simple Finance 2.0 (powered by HANA) can achieve the same reporting directly from table ACDOCA without the need to store balances or open item statuses separately
• Optimized Transactions
• – FI Closing (Profit Center Allocation)– Asset Accounting (Depreciation Run)– CO Closing (Settlements, Result Analysis)
• Appendix Ledger