2. S/4HANA Advantages:
ECC Finance vs. S/4HANA Finance
Function Process Area Business Drivers SAP FICO Limitations S/4 HANA Advantages
Finance Billing and Account
Receivable
Working capital
Days sales outstanding
Bad debt write-offs.
Cost of finance operations
Reduced cost of audit.
• Time-consuming and cumbersome steps
processing required
• No predictive analysis possible
• Limited standard reporting
Real Time Access for assembly of complex data for
payment and WC dashboard
Improved Unstructured Searches
Reduced Batch Jobs leading to Acceleration
Faster Response Time
Finance Cost Allocation and
Analysis
Less processing time to run cost allocations
On-time delivery completion
Resource utilization.
Lower project costs.
Streamline Cost Planning
• Allocations are very time-consuming
• Typically run once a month to avoid burdening
the system
Perform Real Time Allocations on Large Scale Data
Volumes
Granular reporting in real-time
Efficient Reporting User Interface (UX)
Reduce Month End Closes
Finance
Financial Period
closure
Reduce time to Close the Books
Enhanced Compliance & Accuracy
Reduced Cost of Finance and Audit
• Limited Coding Block options (FLEXT)
• Performance vs Detail compromise is inevitable
• Multiple reconciliation and batch processes
• Requires reconciliation of FI and CO along with
different components of FI (Material Ledger,
COPA etc.)
Accelerate long running Batch Jobs with new Models
Faster and Smarter Intercompany Reconciliation
Smarter reconciliation of Invoices and Goods
Faster, Deeper Insights for Data Analysis
FIORI based User Experience
Simplified Data Models Optimized processes
Finance Accounts Payable
Decrease days payables outstanding
Optimize working capital
Reduce Lost Supplier Discounts
• Time-consuming and cumbersome steps
processing required
• No predictive analysis possible
Real Time Insight into Large no of Invoices
Assess AP performance as time series of Invoice
Reconciliation process
Insights at Item Level for all dimensions of AP
Finance
Business Planning /
Budgeting
Reduced Planning time
Availability of Actual Data to Plan
seamlessly
Faster Simulations between
Actual/Budgeted and Plan
• Simple Planning models with limited flexibility
• Time-consuming and elaborate process to set up
planning models
Reduction of Data redundancy across System
Faster Processing power leading to real Time Insights
Easy to set up multiple planning models
Single Version of Truth
3. S/4HANA Advantages:
ECC Logistics vs. S/4HANA Logistics
Function Process Area Business Drivers SAP ECC Limitations S/4 HANA Advantages
Sourcing &
Procurement
Sourcing & Invoice
Management
Reduced Working capital
Increased efficiency and decision
support in Procure-to-Pay processes
Raw Material Inventory levels
• Time-consuming and manual step processing
• No predictive analytics / decision support based
analysis possible
• Minimal, manual collaboration with suppliers
Simplified sourcing with Quotas instead of Source List
MRP sourcing of procured materials selects Outline
Agreement, Contracts, Purchase Info-records in sequence
Comprehensive Fiori apps for Material Coverage, Manage
Purchase Reqs, Post GR, Manage/Transfer Stock
Exchange Invoice related cXML messages with ARIBA
Sourcing &
Procurement
Supplier Management
& Spend Analysis
Increased procurement efficiency
Lower procurement costs
Streamline Spend Planning & Supplier
Risk Management
• Supplier Evaluations typically quarterly run to
avoid system burden
• Limited standard reporting for effective decision
making
Granular operational reporting in real-time for efficient
control on procurement spend and suppliers
Supplier classification / segmentation on ongoing bass
Fiori based Scorecard enable easy comparison
Production Manufacturing
Increased production asset utilization
Reduced order expedites
Faster operations execution for
improved manufacturing efficiency
• MRP Run in batch mode to avoid system burden
• Performance vs Detail compromise
• Requires reconciliation of postings vs planning
Accelerate MRP from batch to “Live” to simulate delivery
capabilities
Real-time view of inventory level and component
availability situation
Supply Chain
Production Planning &
Inventory
Management
Higher Inventory Turns
Reduced Inventory Carrying Cost &
Manufacturing Cycle Time
Improved Order Fulfillment
• MRP Run in batch mode
• Performance vs Detail compromise
• Requires reconciliation of postings vs planning
Accelerate MRP from batch to “Live” real-time mode
Real-time Material Coverage enables Insight to Action
Simplified Data Models optimized processes
Inventory Valuation through Material Ledger only
Sales
Order & Contract
Management
Increased efficiency of customer
service
Days Sales Outstanding
Higher growth in market share
• Time-consuming and cumbersome steps
processing required
• No predictive analysis possible
Simplified SD Operational Analytics
Flexibility in Output determination using BRF+
Foreign Trade only through GTS integration
SD Revenue Recognition replaced by RAR
Reduced memory footprint of pricing result in new table
Master Data
Sales, Procurement,
Production
Reduced response time
Faster Time to Market
• Too many master data elements and fields
• Time-consuming and elaborate master data
management process
New material type (SERV) with limited set of views
Integrated Customer & Vendor as Business Partner
MRP Fields in Material Master rationalized