The document compares the benefits of SAP S/4HANA over ECC across key finance and logistics functions. S/4HANA provides real-time insights and processing, simplified data models, and a more optimized and streamlined user experience compared to the time-consuming batch processing and limited reporting of ECC. Specifically, S/4HANA allows for real-time cost allocation and financial reporting, faster financial closes and accounts payable processing, and accelerated MRP and inventory management in logistics.

1. Benefit SAP S/4HANA

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