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Mastering
SAP S/4HANA TVO9
- Strategies for
Implementation
and Migration
Transition to S/4HANA with tried and tested deployment scenarios
-
-
-
-
By Nitin Gupta
Mastering SAP S/4HANA 1709 ‒
Strategies for Implementation
and Migration
Transition to S/4HANA with tried and tested
deployment scenarios
Nitin Gupta
BIRMINGHAM - MUMBAI
Mastering SAP S/4HANA 1709 ‒ Strategies
for Implementation and Migration
Copyright © 2018 Packt Publishing
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To my father, for everything I am and will be.....I owe it to you.
To my wife, for her inspiration, and to my kids, Nilay and Nivi, for their love.
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Contributors
About the author
Nitin Gupta is an IT professional with expertise in SAP solution architecture, business
process transformation, and project management and over 11 years of experience in
managing and delivering complex SAP and transformation projects resulting in efficiency
and productivity. He has successfully led and managed full lifecycle SAP implementation
projects across the globe. He holds a master's in business administration and is presently
based in Auckland.
About the reviewer
Pallavi Gupta is a finance expert with vast experience in SAP. Her expertise includes SAP
Financials and SAPS/4HANA. She is presently working as an independent consultant on
several projects under her own company. She has excellent interpersonal skills and is
involved in several client-facing roles. She is presently based in Auckland.
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Table of Contents
Preface 1
Chapter 1: An Overview of SAP HANA, S/4HANA, and Migration 6
Technical requirements 7
In-memory data – a core to SAP HANA 7
Optimization of in-memory data 8
Data storage model 8
Data compression 9
Delta storage 10
Data aging 11
SAP HANA Live 13
Introduction to SAP S/4HANA 15
Understanding SAP S/4HANA 15
The Universal Journal 17
Compatibility views for historic data 20
Merging G/L accounts and cost elements 21
Logistics changes 22
Changes to material master data 22
Sales activity 24
SD rebate processing 24
Data model changes 24
Credit management 24
Introduction to SAP Fiori 24
What is SAP Fiori? 25
Key pillars of the Fiori experience 26
Type of Fiori apps 28
SAP Fiori Launchpad 29
SAP Fiori architecture 32
SAP Fiori business benefits 33
S/4HANA migration overview 33
Introduction to migration 33
Concept of business partners 34
Customer vendor integration 38
What is CVI? 39
Business impact of CVI 40
CVI conversion scenarios 40
Summary 41
Questions 42
Chapter 2: Migration to SAP HANA – Tools and the Project 43
Table of Contents
Technical requirements
System migration
SAP homogeneous system copy
Reasons for a homogeneous system copy
SAP heterogeneous system copy
System copy consequences and decision table
Migration check service
Benefits of migration check service
System copy method
Database-specific copy method for Java
SAP migration tools
ABAP OS/DB migration
DB object size calculation with R3SZCHK
JAVA OS/DB migration
System copies – import and export
Software logistics toolset
Software provisioning manager
Target database size
Migration project overview
A sample schedule
SAP OS/DB migration check analysis
SAP OS/DB check verification
Required source system information
Required source system – technical information
Performing a migration test run 59
Final migration planning
Installing and upgrading
Software update manager
Summary
Questions
Chapter 3: SAP S/4HANA – Deployment Options
What is deployment?
SAP S/4HANA deployment options
SAP S/4HANA On Premise
SAP S/4HANA on Cloud
Comparing S/4HANA On Premise and On Cloud
Types of cloud
An overview of implementation scenarios
Hybrid model of deployment
Summary
Questions
Chapter 4: Impact of S/4HANA on the SAP General Ledger
Technical requirements
The history of the General Ledger
43
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[ii ]
Table of Contents
An overview of the Classic General Ledger
An overview of the New General Ledger
Features of the New GL
General Ledger in SAP S/4HANA
Data structure of GL in SAP S/4HANA
Universal Journal
Ledgers and currencies
GL account and cost elements
Changes to transactions and search options
Customizing the SAP General Ledger
Activating SAP Reference IMG
Checking and adopting Fiscal year variants
Migrating General Ledger customizations
Defining settings for the Journal Entry Ledger
Defining ledger groups
Assigning the accounting principle to the ledger group
Defining a ledger for Controlling
Defining document types for posting to Controlling
Defining the document type mapping variant
Defining default values for posting in Controlling
Defining the offsetting account determination type
Defining the source ledger for migration of balances
Executing the consistency check for the General Ledger
Activating business functions
Summary
Questions
Chapter 5: Impact of S/4HANA on SAP Controlling and Profitability
Analysis
Technical requirements
An introduction to SAP Profitability Analysis (CO-PA)
Usage of COPA
Methods of profitability management
Methods of Profitability Analysis in SAP
Aspects in SAP profitability management and organization units involved
Comparative analysis of various methods
Types of CO-PA
Account-based COPA
Costing-based COPA
Differences between account-based and cost-based COPA
COPA in SAP S/4HANA
Integration of Account-based CO-PA to Universal Journal
Attributed profitability segments
Realignment in CO-PA with SAP S/4HANA
Characteristics that cannot be changed
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[iii ]
Table of Contents
Characteristics that can be changed freely 116
Characteristics that can be changed only if the account assignment is not true 116
Characteristics that are changeable if the field is initial at the time for execution
of realignment 116
Reporting options in CO-PA with SAP S/4HANA 117
The Fiori app 117
Analysis for Office 118
HANA Live 119
COGS split in S/4HANA-based CO-PA 120
Defining accounts for splitting COGS 120
Defining additional quantity fields 120
Defining accounts for Splitting Price Differences 121
Material Ledger in SAP S/4HANA 121
Significant changes in Controlling in SAP S/4HANA 122
Changes in transactions 122
Changes in tables
Changes in configuration 123
123
Configuration of the document type for CO 123
Maintaining document-type mapping for CO transactions 125
Checking and defining default values for posting in Controlling 125
Maintaining version for the ledgers 126
Summary 127
Questions 127
Chapter 6: Impact of S/4HANA on SAP Asset Accounting 128
Technical requirements
An overview of SAP Asset Accounting 128
129
Features of SAP Asset Accounting 130
Organizational units in Asset Accounting 130
Charts of depreciation
Integration components 131
133
Integrating with Controlling 133
Integrating with General Ledger (FI) 134
Integrating with Material Management (MM) 135
Asset classes and their components
An introduction to New Asset Accounting
Key changes in New Asset Accounting 136
139
139
Changes to transaction codes 140
An introduction to the Technical Clearing Account (TCA) 140
Changes to AuC and Transaction Types 143
Posting to the Universal Journal 144
New depreciation-calculation engine 144
Depreciation areas and ledgers 144
Data migration in New Asset Accounting
Summary
Questions 145
146
146
[iv ]
Table of Contents
Chapter 7: S/4HANA New Functionalities – Cash Management, BPC,
and Fiori UX
Technical requirements
Introduction to Bank Account Management (BAM)
Solution overview
Redesigned approach in SAP S/4HANA
Configuration
Maintaining number ranges for bank account technical IDs
Maintaining bank account types
Configuring enable payment approval process
Configuring payment signatories
Configuring cash pool for cash concentration
Existing options for extensibility
ICF services
BAM and BAM Lite
Introduction to Cash Management
Prerequisite check
Master Data set up
Bank statement processing
Manage cash operations
One Exposure from Operations
Introduction to BPC
What's new in this area?
Before and after S/4HANA comparison
Applications used
Components supported
How data flows
Authorizations
Planning modeler
Introduction to Fiori
Summary
Questions
Chapter 8: Overview of Implementation Scenarios
Technical requirements
Available implementation scenarios
New implementation
Duration of the new implementation
Approach in new implementation
Data migration
System conversion
How to plan a migration project?
Key performance indicators (KPIs) in migration
Landscape transformation
Benefits of landscape transformation
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[v]
Table of Contents
Characteristics of SAP S/4HANA landscape transformation projects
System landscape transformation (SLT)
Preconfigured solutions
Available consolidation scenarios
Migration of business units
Migration of selected applications (central finance)
Elements of central finance
Central finance replication model
Solution methodology – central finance
Summary
Questions
Chapter 9: Period End Closing in SAP S/4HANA
Technical requirements
Closing activities
Month-end closing
Year-end closing
Reporting with SAP S/4HANA
Financial statement versions
Reporting options in SAP S/4HANA
Closing Cockpit in SAP S/4HANA
Closing Cockpit usage scenarios
Closing Cockpit configuration
Creating a template
Creating tasks
Defining the Dependencies and Create Task Lists
Releasing the Task List
Checking dependencies
Executing dependencies
Process control
Summary
Questions
Chapter 10: Premigration Activities
Technical requirements
Preparation for migration
Prechecks in migration
Preparation and migration of customizing for General Ledger
Activating SAP Reference IMG
Checking and adopting Fiscal year variants
Migrating General Ledger customization
Defining settings for the Journal Entry Ledger
Defining ledger groups
Assigning accounting principles to the ledger group
Defining the ledger for controlling
Defining document types for posting to controlling
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[vi ]
Table of Contents
Defining document type mapping variant
Defining default values for posting in controlling
Defining the offsetting account-determination type
Defining the source ledger for the migration of balances
Executing consistency checks for General Ledger
Activating the business functions
Preparing and migrating customization of Asset Accounting
Preparing and migrating customization of controlling
Preparing and migrating the Material Ledger customization
Preparing and migrating the House Bank accounts customization
Preparing and migrating the Credit Management customization
Summary
Questions
Chapter 11: Migration Activities
Technical requirements
Data migration
Partition of Universal JE Line Items
Regenerating CDS views and field mapping
Analyzing transaction data and status display
Starting and monitoring data migration
Overview tab
Migration runs
Status of migration run
Control tab
Tables tab
Migration of cost elements
Technical check of transactional data
Material Ledger migration
Enrichment of data
Migration of line items
Migration of balances
Calculation of depreciation and total values
Migrating General Ledger allocations
How to do it?
Migrating house bank accounts
Migrating Credit Management
Migrating Credit Management Master Data and status display
Migrating Credit Management exposure and status display
Initializing Documented Credit Decisions (DCD) and status display
Reconciling Documented Credit Decisions (DCD)
Completing migration
Reconciling and comparing migrated data
Summary
Setting migration to complete
Questions
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[vii ]
Table of Contents
Chapter 12: Post-Migration Activities
Technical requirements
Activities after migration
Running reconciliation reports
Business process validation
Transferring application indexes and displaying the status
Filling due dates in FI documents and the display status
Filling offsetting accounts in FI documents
Enrichment of balance carryforward
Settings for enrichment of balance carryforward
Reconciling the balance with line items and displaying reconciliation status
Specifications for Balance Sheet and P&L accounts
Enriching balance carryforward based on line items
Manual activities for credit management
Completing a credit management migration for unmigrated customers
Deactivating the reconciliation ledger
After migration testing
Testing HANA-optimized reports
Testing reporting
Testing database usage
Testing intercompany reconciliation
Testing Universal Journal and the closing process
Summary
Questions
Chapter 13: Central Finance – a No-Disruption Approach
Technical requirements
An overview of SAP Central Finance
Understanding Central Finance
Key business benefits and use cases
Central Finance process use cases
Key limitations
Short-life master data
Fixed assets
Inventory
Logistics documents
Costing-based COPA
Document-splitting
Profit-center-only postings
Central Finance architecture
Source system
System Landscape Transformation
SAP Master Data Governance (MDG)
S/4HANA system
Application Interface Framework (AIF)
Central Finance interfaces
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[ viii ]
Table of Contents
Central Finance mapping
Initial load and real-time replication
System configuration 315
317
323
Source system 323
System Landscape Transformation (SLT) 332
Defining objects 336
Defining the initial load object 337
Defining the replication object 337
Activating the Initial Load and Replication Objects 338
Control Load/Replication using the SAP LT Replication Server 339
S/4HANA system 339
Configuring the SAP Application Interface Framework (AIF) 340
Clearing Functionality 350
Central Payments 352
Business benefits of Central Payment
Configuring Central Payment
Managing cost-based COPA in SAP Central Finance
Summary
Questions 353
353
356
359
359
Chapter 14: Greenfield Implementation
Technical requirements
Greenfield implementation
ASAP methodology 360
360
360
361
The key benefits of the ASAP methodology 361
Phases of the ASAP methodology
Agile ASAP 8 methodology
SAP Activate
Pillars of SAP Activate 361
363
364
365
SAP Best Practices 365
Guided configuration 365
Methodology 367
SAP Activate methodology's features 368
Activate methodology key characteristics 369
The Activate methodology structure 373
Governance, roles, and responsibilities
Activate journey – new implementation (cloud) 379
380
Activate journey – new implementation (premise)
Activate journey – system conversion
Differences between SAP Launch, ASAP, and SAP Activate
Summary
Questions 383
387
390
392
392
Chapter 15: The Near Zero Downtime (NZDT) Strategy
Technical requirements
The Near Zero Downtime strategy 393
393
393
[ix]
Table of Contents
Summary
Questions
Other Books You May Enjoy
395
395
396
Index 399
[x]
Preface
If you look on the internet, you will find that SAP is one of the blooming areas in
technology, and with the introduction of SAPS/4HANA, the processes and organizations
are going through major changes. Millions of jobs are available; however, the skill set is
limited as the product is new and is still evolving. The content is scattered across areas such
as logistics, Central Finance, changes with S/4HANA, Closing Cockpit, and migration steps.
You can find these areas in several books covered in several ways, so what is it that this
book offers that's different?
This book is the one-stop shop for all these areas. You will find an end-to-end overview of
the processes, changes, simplifications, deployment options, and configuration of all the
relevant areas, including, but not limited to, SLT, Central Finance, New Asset Accounting,
and Fiori tiles.
Who this book is for
This book will work as a guide to those who have SAP project experience and are looking
to learn more about SAPS/4HANA, such as functional consultants, integration experts,
project managers, design leads, and solution architects. Also, people who are new to SAP
S/4HANA can start with this book.
What this book covers
This books is purely focused on SAPS/4HANA innovations, and also gives a background
of how the process was handled before SAPS/4HANA within SAP itself. It covers the
following areas:
Chapter 1, An Overview of SAP HANA, S/4HANA, and Migration, helps you get into the
topic. You will understand the journey and path of innovation, starting from HANA and
then moving to S/4HANA. This will set the stage for the rest of the chapters.
Chapter 2, Migration to SAP HANA – Tools and the Project, is a purely technical chapter in
which the focus will be on understanding the migration to SAP HANA, the tools available,
the steps, and the effort required in terms of resources and time. Also, we will talk about a
sample project to impart practical understanding.
Preface
Chapter 3, SAP S/4HANA – Deployment Options, takes you through the available
deployment options—cloud, on premise, and the hybrid model, along with their key
features, benefits, and challenges.
Chapter 4, Impact of S/4HANA on the SAP General Ledger, purely focuses on changes to
General Ledger areas with the introduction of SAPS/4HANA. We will see the necessary
functionality changes as well as the configuration changes.
Chapter 5, Impact of S/4HANA on SAP Controlling and Profitability Analysis, purely looks at
changes to Controlling as well as COPA with the introduction of SAPS/4HANA. SAP
recommends that users use Account-based COPA with S/4HANA, and also covers the
benefits. We will also take a look at the necessary functionality changes as well as the
configuration changes.
Chapter 6, Impact of S/4HANA on SAP Asset Accounting, gives you a view of all the changes
done in the Asset accounting area with the introduction of new asset accounting. It will
involve the configuration as well as the functionality changes.
Chapter 7, S/4HANA New Functionalities – Cash Management, BPC, and Fiori UX, runs you
though the new functionalities introduced in S/4HANA, such as BAM, Credit Management,
and changes to BPC, and we will also learn what Fiori is all about and see how to create a
simple Fiori tile.
Chapter 8, Overview of Implementation Scenarios, discusses the available implementation
scenarios, which may be different for each customer, and also we will learn how to move
ahead based on the present customer situation.
Chapter 9, Period End Closing in SAP S/4HANA, is mainly dedicated to the closing features
as well as the closing cockpit. We will see how the closing cockpit introduced in SAP
S/4HANA 1709 is different from the cockpit of SAP ECC.
Chapter 10, Premigration Activities, helps you learn about the preparatory activities
involved in migration.
Chapter 11, Migration Activities, covers an end-to-end view of migration activities,
including configuration, which we have to do when we move from SAP ECC to SAP
S/4HANA.
Chapter 12, Post-Migration Activities, is all about the wind up activities necessary to
complete the migration. It involves some sanity checks as well as some reconciliations.
[2]
Preface
Chapter 13, Central Finance – a No-Disruption Approach, is a chapter dedicated to Central
Finance, one of the key areas in which organizations are investing and looking toward for
the future. All configurations, processes, and relevant aspects of central finance are covered
in this chapter.
Chapter 14, Greenfield Implementation, is the best way to learn about SAP activate in detail.
This chapter will guide through the methodology and how it differs from the previous SAP
implementation methodologies.
Chapter 15, The Near Zero Downtime (NZDT) Strategy, is a small chapter that guides the
readers through the core features of NZDT and explains how it can be used to reduce the
downtime during migration.
To get the most out of this book
In order to use this as the best method for learning, ensure that you understand the key
SAP terms, processes, and organization structure in SAP. Although it is not expected that
you should be aware of all SAP ECC configurations in advance, if you know them and have
previously used them in your projects, that's excellent.
When you are learning the configuration chapters, have the system ready (maybe DEMO
system) so that you can follow the instructions and get the correct results.
Download the color images
We also provide a PDF file that has color images of the screenshots/diagrams used in this
book. You can download it here: https://www.packtpub.com/sites/default/files/
downloads/MasteringSAPS4HANA1709StrategiesforImplementationandMigration_
ColorImages.pdf.
Conventions used
There are a number of text conventions used throughout this book.
CodeInText: Indicates code words in text, database table names, folder names, filenames,
file extensions, pathnames, dummy URLs, user input, and Twitter handles. Here is an
example: "The tables are merged to the ACDOCA table with the header table BKPF.
FAGLFLEXA and some other New GL tables are now obsolete."
[3]
Preface
Bold: Indicates a new term, an important word, or words that you see onscreen. For
example, words in menus or dialog boxes appear in the text like this. Here is an example:
"SPRO | Financial Supply Chain Management | Cash and Liquidity Management |
Bank Account Management | Basic Settings."
Warnings or important notes appear like this.
Tips and tricks appear like this.
Get in touch
Feedback from our readers is always welcome.
General feedback: Email feedback@packtpub.com and mention the book title in the
subject of your message. If you have questions about any aspect of this book, please email
us at questions@packtpub.com.
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If you are interested in becoming an author: If there is a topic that you have expertise in
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authors.packtpub.com.
[4]
Preface
Reviews
Please leave a review. Once you have read and used this book, why not leave a review on
the site that you purchased it from? Potential readers can then see and use your unbiased
opinion to make purchase decisions, we at Packt can understand what you think about our
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For more information about Packt, please visit packtpub.com.
[5]
1
An Overview of SAP HANA,
S/4HANA, and Migration
The purpose of this chapter is to understand SAP HANA, which forms the base of learning
for SAPS/4HANA and will be discussed in subsequent chapters. SAP HANA is a database
management system (DBMS) based on in-memory technology. In SAP HANA, memory is
available to such an extent that storing data is not a constraint. This makes it different from
other available databases that have memory constraints, even though they have potential in
terms of hardware. SAP HANA optimizes memory access between cache and the
primary/main memory. In the present age, the volume of data is a big challenge for all
organizations, specifically finance organizations, as they have to store the data for longer
time due to audit requirements and, of course, for planning and forecasting purposes.
An Overview of SAP HANA, S/4HANA, and Migration Chapter 1
The basic concept of SAP HANA includes the following areas:
In-memory data
Optimization of in-memory data
Delta storage:
Technical requirements
For this chapter, the following are required:
SAP HANA Database 2.0
SAP ECC system with non-SAP database
SAP SLT system
Running RFC connections between systems
In-memory data ‒ a core to SAP HANA
If you have noticed the trend of computers and their core configuration, it should be
evident that there has been a drastic change over a period of time, let's say, in the last
decade. Prices have been moving around with a slight dip, and memory capacity has
increased drastically. From an enterprise server perspective, the capacity today is in
terabytes with a single enterprise-class server.
[7]
An Overview of SAP HANA, S/4HANA, and Migration Chapter 1
The hard disks are cheap and affordable and are at the lowest space in the consequential
structure, but the key to this entire process of in-memory data modeling is performance. In
the following figure, if we move from top to bottom, it shows a higher latency with lower
price, and if we move vice versa, it depicts a higher performance:
The main memory is normally directly accessible, and if we compare its access to that of the
hard disk, the speed is 100,000 times faster.
All traditional database management systems use the disk as a primary storage and the
main memory is used as just a buffer.
Optimization of in-memory data
SAP HANA stores data in a columnar format, which results in effective compression and
reduction in overall data size. Also, this resolves the problem of data flow between the
main memory and cache.
Data storage model
Normally, the data storage in databases is in a table format. A table is a data structure in
which the information is organized. It can store data in rows and columns and can be used
to display data in a structured format. Databases normally comprise several tables, and
each table has a specific purpose.
[8]
An Overview of SAP HANA, S/4HANA, and Migration Chapter 1
The options available are as follows:
Row-based layout: Stores data elements in a row
Columnar layout: Stores data elements in a columnar format
Let's take a look at a very simple example to understand this concept:
The preceding table is a simple example of data. Now, we will check out what it looks like
in a row-based layout:
Also, this is what it looks like in a columnar data format:
Both methods of storage have their own pros and cons, and SAP HANA supports both the
models. However, performance is enhanced when the columnar model is used, as it enables
an effective projection by accessing only relevant columns, which reduces the number of
accesses to memory. Also, it allows for an effective compression, especially when column
sorting is done.
Data compression
The technique that is used to reduce the count of bits for data in memory is known as data
compression. In this technique, the overall memory is reduced and, hence, the cost is
reduced, and all of the data reading is done on the compressed set. Many compression
methods, such as run-length encoding, cannot be applied in the row-based layout. This is a
very technical topic, so we will not go into too much detail here, but, for now, it is
important that we understand the storage scenarios and the meaning of compression.
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Delta storage
Normally, data insertion to compressed data is really slow. This problem is solved with
SAP HANA, as it brings the concept of delta storage with it. In this structure, the storage of
a columnar table includes the main storage and delta storage. Any write operation, such as
insert, update, or delete, is done in delta storage, which is, again, a columnar storage, and
any addition is appended to the end of the structure:
This is what the architecture looks like; it simplifies the database structure and results in
faster processing:
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Data aging
In today's world, we are just playing with data. Businesses' data volumes are immense, and
their data is confidential and important in terms of business continuity as well as growth
and compliances. For example, companies have to detail their financial data for 7 years to
10 years due to IRS audits.
The size of the data is growing day by day, and much effort, as well as money, is spent on
the maintenance of that data.
This is what the data view looks like:
For sure, we need the actual and latest data to run the business, which is about 10%, and,
from time to time, we might need access to 30% of the data. However, what about the
remaining 60% data? Have you accessed the documents of the projects that you worked on
7 years ago? Do you frequently see photos of your holidays that you had taken around 8-10
years ago? The typical answer is no.
The same applies to organizations; they don't really access that 60% of data. So, what are
we doing with that data? What is our strategy? In rare cases, we will need to access the old
data as and when we are showing the order history to a customer or when we are running
comparisons over decades, or during an audit.
In the new concept of data aging, the data that we access regularly, that is, the latest actual
data, is known as hot and the rest, the 60%, is known as cold. The temperature of the data
decides the strategy to store the data. The goal of aging is to reduce the main memory
footprint and to speed up database queries by only keeping operationally relevant (hot)
data in the main memory. In SAP HANA, aging is different from archiving in the sense that
cold data is still kept within the SAP HANA database and remains accessible via SQL in the
very same table as the hot data.
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Regular daily queries are on hot data, and the cold data is generally partitioned, as shown
in the following figure:
The configuration has to be defined once in the setup phase, and, using this solution, data
can be restructured by a background task and automatically pushed out of memory if
needed.
As an example of partitioning, all entries in the following table with entries 00000000 are in
hot memory:
Table name Partition ID Range
FAGLFLEXT 1 00000000
FAGLFLEXT 2 00010101 - 20120101
FAGLFLEXT 3 20120101 - 20130101
FAGLFLEXT 4 20130101 - 20140101
FAGLFLEXT 5 20140101 - 20150101
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SAP HANA Live
To gain the market and advantage in any competition, it is important for the organization
to have analytics of their own data. Every decision is driven based on data, but that
decision can be more efficient if the analytics of the data is as accurate as possible. With the
emergence of technology, there has been a shift in the data models for decision making. Old
data with multiple accesses has been replaced by new real-time data with access to a single
source of truth. Complex systems and data can have a multilayered structure, including
OLAP and OTLP systems. Before we move ahead, let's understand the following concepts:
OLAP: Online analytic processing
OLTP: Online transactional processing
In traditional databases, transaction processing is completely separate from analytics
processing. The key factor to this is the database design of both these systems. However, it
results in a complex and redundant data processing. You process the transaction now and,
for analytics, the same will be available after a day, which results in a lag for the finance
department, especially at the time of closing.
SAPS/4HANA is powered by SAP HANA, which combines both OLTP and OLAP
processing. Now, the transactional data does not need to be moved to another system for
analytics, and they run in the same tables, which results in efficiency and avoids
redundancy.
SAP HANA Live is an out-of-the-box, preconfigured, and extensible data model. It is an
architectural framework that can be used for analytical reporting on the SAP HANA
database. It enables businesses to create analytics suites based on a semantic data model
that enriches the underlying SAP ERP structures.
This data model has the following attributes:
Optimized for operational reporting
Eliminates data duplication
Ready to be consumed
Extensible
Easy to consume, with true business-like semantics
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This is what it looks like with and without SAP HANA Live:
The SAP HANA Live architecture is shown in the following figure:
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Introduction to SAP S/4HANA
The focus of this chapter will be to understand the overview of SAPS/4HANA—what is
S/4HANA, what is so interesting in S/4HANA that customers are investing, what benefits
does it provide, and how has SAP planned to make it different from its own ERP? Let's
begin deep diving to understand the concept.
Understanding SAP S/4HANA
SAPS/4HANA is an innovation that is built on native SAP HANA and is a simplified
approach of the existing SAP ERP. In the original SAP ECC system, the financial side of
SAPS/4HANA was completely robust. However, there were duplicates and limitations.
SAP was focused on removing those roadblocks. Therefore, with regular feedback from the
customers and, of course, with massive change and innovation in the system, the product
SAPS/4HANA was built. The story started in 2015 when a product was launched with the
name simple finance, and a few projects were started with SAP's commitment to
improvement. However, the product was not as successful as was expected. Then, it was
revamped as SAPS/4HANA, the final name, and was suffixed by a release number, such as
1503, 1610, and 1709 (YYMM). Until now, no version of the product was complete in terms
of innovation and features. SAP is still introducing features to the product in order to make
it simple and more usable for customers. This massive innovation from SAP occurred after
a long time. Until now, it involved only enhancements coming to ECC.
The following figure explains that the story line has spanned for more than 10 years:
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SAPS/4HANA is designed to run only on the SAP HANA database, and it already has all
the features of this powerful in-memory design from SAP. It can be deployed on-premise,
on the cloud, or on hybrid cloud as needed, and it's very flexible. The data model in SAP
S/4HANA has been simplified. It has resulted in the removal of several tables. This has
reduced the data footprint to a large extent and also simplifies the system design, usability,
and extensibility. This has resulted in making the financial management simpler and
faster. With the use of Fiori, end users receive personalized information with a detailed
level of data, taking them to the line item details of the transactions. Data analytics is a
method that varies across organizations.
Business intelligence products that cover various ways to represent data are also available.
The products include renewed managerial roles that specifically target individuals, for
example, a financial officer or receivables manager. In addition, SAP delivers renewed
transactional roles for the end users, such as the general ledger accountant or the fixed
assets accountant:
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SAPS/4HANA is not a single product; it includes many applications. Customers can begin
using the basic components and based on need further applications can be added to the
basket. SAPS/4HANA Enterprise Management is an ideal place to start. It is known as the
simplified core and is regarded as a replacement for SAP ERP. It provides support for all
core business processes. SAPS/4HANA Enterprise Management can be easily integrated
with SAPS/4HANA Line-of-Business (LoB) solutions. These options can be added at any
time and provide best-in-class LoB solutions and connections to SAP business networks.
Customers can choose LoB solutions that are most useful for their businesses.
The LoB finance solutions integrate the following to business networks, as follows:
SAP SuccessFactors:
SAPS/4HANA integration and the SAP SuccessFactors Employee
Central Payroll rapid deployment solution (function module web
service that covers finalized, COBL checks and ongoing cost center
replications not yet started)
SAP Ariba:
Ariba Invoice Management (buyer side) and payment advice and
cancel payment advice
Ariba Discount Management (buyer side) and payment proposal
and PayMeNow
Concur:
SAPS/4HANA implementation with Concur and reuse of SAP
ERP add-on (delivery by Concur product)
SAP Fieldglass:
SAPS/4HANA integration planned in a joint project with SAP
Fieldglass, LOB PROC, and SAP Master Data Governance (FIN
contributes cost center and internal order replication)
The Universal Journal
The Universal Journal is all about next-generation accounting, where a single table is
responsible for storing data in place of several tables. This is one of the major
simplifications resulting from the evolution of SAPS/4HANA. It makes the process
transparent, reconciliation free, and allows for seamless navigation and a deeper insight of
an organization's financial data. From a technical aspect, it's a redundancy-free storage of
financial data, consisting mainly of a general ledger, asset accounting, controlling, and a
material ledger.
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The General Ledger was redesigned in 2004. It added many advantages, such as
extensibility, parallel views, document splitting, and multiledger functionality, but its main
aim was to replace classic ledgers. However, it failed to provide flexibility to SAP
customers, as they were looking for improvements such as reconciliation among various
subledgers, such as AP, AR, G/L, AA, and CO. The situation used to look like this:
In the preceding figure, you will notice that there is disharmony between the financial
components, such as the depreciation areas in Asset Accounting, G/L in the General
Ledger, and the cost element in Controlling. All these resulted in manual work for the
customers in reconciling all these items with each other, wherever necessary. Now, SAP
S/4HANA has addressed this issue in the form of the Universal Journal.
Several tables are obsolete (however, SAPS/4HANA provides compatibility views to
provide access to historic data). The Universal Journal has all the columns that are needed
by the business and each component, too.
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The new architecture combines all the components that we just discussed, and in place of
the reconciliation view (the preceding figure), we now have the integrated view:
Additionally, the Universal Journal integrated the coding block extension (structure
CI_COBL), allowing the input in customer fields. There is an increasing demand from most
global companies for a holistic view of multiple accounting standards throughout the
whole ERP system. Working with parallel ledgers supports this requirement already in
G/L, as follows:
The new journal entry consists of a header (table BKPF) and their respective items
(table ACDOCA)
The new SAP HANA-based reporting of all the components (G/L, AA, ML, and
CO) can access the customer fields
The ACDOCA table contains all the fields needed for G/L, CO, AA, ML, and PA
The list of tables that were part of this structure and are merged with the ACDOCA table now
includes the following:
Index tables removed:
BSIS, BSAS, BSID, BSAD, BSIK, BSAK, BSIM, FAGLBSIS, and
FAGLBSAS
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Aggregate tables removed:
GLT0, GLT3, FAGLFEXT, KNC1, LFC1, KNC3, KFC3, COSS, and COSIP
Tables removed:
FAGLFLEXA, COEP, ANEP, ANEA, ANLC, ANLP, and MLIT
Material Ledger:
Contents of MLIT, MLPP, MLPPF, MLCR, MLCRF, MLCD, CKMI1,
and BSIM are now stored in ACDOCA; MLHD data is stored in BKPF
When we talk about the external postings (that is, coming from other systems to SAP
S/4HANA), the view looks like the one shown in the following figure:
Compatibility views for historic data
For the existing SAP customers, all the programs and custom developments will
work successfully on the existing tables. Now, what will happen to those customizations?
Every customer and consulting partner was worried about this. Customers may not want to
spend on the redevelopment of everything, and, of course, they won't want their business
and reporting to be affected due to the introduction of S/4HANA to their organization. A
very simple answer to this problem is to use compatibility views. Compatibility views are
named V_TABLE. For example, the compatibility view of the COEP table is V_COEP.
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The read operations in the ABAP code are redirected toward a view (V_COEP) via a specific
setting in the data dictionary definition of table COEP. This view then no longer reads the
physical the COEP table, but the new Universal Journal; it now maps the data back to the
structure of COEP. From the perspective of the program code, there has not been any
change:
The main focus of SAPS/4HANA development is to provide a product that does not
disrupt the business processes and business as usual.
Merging G/L accounts and cost elements
Before the Universal Journal, SAP had G/L accounts in G/L and also had (secondary) cost
elements in CO mapped to those G/L accounts. This is because the user always had to trace
the mapping rules backward. In the SAP HANA architecture, with the Universal Journal,
only one field is used to store both the G/L account and cost element. The logic is that the
G/L can be assumed to be a special type to make it a cost element. The new account is
maintained on one screen (as shown in the following screenshot).
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The following screenshot shows the creation of a new G/L account of the Secondary
Costs type:
Logistics changes
Apart from massive changes in finance, S/4HANA also came up with several changes in the
logistics area. Let's look at those changes.
Changes to material master data
Material master basic transaction code still remains the same as in ECC:
MM01 to create
MM02 to change
MM03 to display
However, the length of the material number has changed along with some field-level
changes. New fields have been added and a few fields have been removed.
This big change is the length of the Material number field. This was in heavy demand by
customers due to various industry requirements to have a lengthy material number. It was
of 18 characters in SAP ECC, and now it's 40 in S/4HANA. It was a big change, almost three
times the previous length.
Let's look at an example from both systems to see what the Material number looks like.
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The SAP ECC Material number view looks like this:
The SAPS/4HANA Material number view looks like this:
However, the default SAPS/4HANA system come with 18 characters only, and it needs to
be extended based on customer requirements.
The following is the path to activate this:
SPRO | IMG | Cross-Application Components | General Application Functions | Field
Length Extension | Activate Extended Fields
Go to new entries and check the following field:
After this, the field will look like the one shown in the following screenshot:
Another change in the material master is the foreign trade data. This is now a part of SAP
GTS and is not available in S/4HANA.
The new material type SERV is now added. As the name implies, it is intended to be used
for service. The following are the available views for the material type:
Basic data
Sales view
Purchasing view
Accounting
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Sales activity
The Sales Support function (SD-CAS) is no longer supported in S/4 HANA. SAP suggests
SAP CRM or SAP Cloud for customers as the recommended solution.
SD rebate processing
The SD rebate functionality has been replaced by Settlement Management. Hence, the
transaction VBO1 is no longer available in S/4 HANA.
Data model changes
With the introduction of SAPS/4HANA, several changes have been introduced in SAPSD:
Pricing: Prices were stored in KONV, but now they will be in PRCD_ELEMENTS
Status tables: VBUK and VBUP have been removed
Index tables removed from the system: VAKPA, VAPMA, VLKPA, VLPMA, and
VRKPA
Tables removed: VBOX, S066, and S067
Credit management
Credit management has been discontinued from S/4 HANA, and the recommended
solution is FSCM. Thus, transactions such as F.28, F.31, F.32, and F.33 are no longer
supported. The following are the new transactions in these areas:
New transactionOld transactionPurpose
UKM_BP FD32 Maintenance of credit limits
UKM_MY_DCDS VKM1 Releasing of blocked sales orders due to credit
Introduction to SAP Fiori
In this section, we will cover the key concepts and aspects of SAP Fiori. We will also deep
dive into some of the important areas. Let's begin with the question that anyone starting
with the technology may ask—what is SAP Fiori?
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What is SAP Fiori?
People are drawn to things of beauty. Fiori is an Italian word that means flower. To view
the Fiori logo, visit the official Fiori website (https://sapfioriui.com/).
SAP Fiori is the user interface (an actually beautiful user interface) for SAP applications.
SAP aims to have this experience for all its solutions over a period of time. Fiori can give
the best possible experience when interacting with the SAP Business Suite. When
implemented with SAP HANA, the solution integrates with the existing IT landscape.
Additionally, SAP Fiori results in access to the same data information via various modes
and sources:
SAP Fiori is designed with the idea that your work environment needs to be available to
you wherever you are—on your desktop, tablet, or phone.
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Key pillars of the Fiori experience
The following diagram represents the key pillars of Fiori:
The following are the key pillars of the Fiori experience:
Role-based: Users have access to the applications where they perform their tasks,
and the applications are specific to these tasks.
Responsive: The application interface is responsive; it adapts to the size and
device used by the users to access it.
Simple: The scope of the application is simple. There is one user, one use case,
and up to three screens for each application.
Coherent: The applications are developed with a coherent structure. The apps all
speak the same language, and can be implemented in multiple landscapes and
environments.
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Instant value: A low adoption barrier provides instant value, both on the IT
system side and on the user-adoption side:
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Type of Fiori apps
Fiori apps are of three types, as shown in the following screenshot:
Let's explain the three types of Fiori apps in detail:
Transactional apps: Offer task-based access to tasks such as change, create,
display (documents and master records), or entire processes with guided
navigation.
Analytical apps: Provide insight to action. They give you a visual overview of
complex topics for monitoring or tracking purposes.
Fact sheets: Allow you to search and explore your data. They provide a 360
degree view on essential information about an object and contextual navigation
between related objects.
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SAP Fiori Launchpad
The SAP Fiori Launchpad is like saving favorites in your internet browser. It is a personal
collection of apps. It functions like a bucket that displays and groups the tiles that are
required for the user's needs. It serves as the home page, KPI dashboard, and role-specific
entry point into the suite of financial applications. The Launchpad also offers active tiles
through which the user can receive updated information directly from the front page
without opening the application:
The SAP Fiori Launchpad offers themes and can be personalized to meet brand
requirements.
It offers a stable URL for bookmarking and sharing. It is browser-based and, therefore,
works with multiple devices and browsers.
Within each application, the user can interact with the SAP Fiori app. This app covers lots
of daily work tasks, along with the enterprise-level tasks. However, each pattern and
control is optimized to address a specific type of task in a simple, easy-to-use manner. They
are flexible enough to be combined and work synergistically. The consistent use of patterns
and controls ensures a coherent user experience and gives users a sense of familiarity across
SAP Fiori apps.
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The following are some personalization options:
Adding applications
Removing applications
Modifying applications
As an example, if the user is an accounts manager who is interested in the China market,
the user can create an application to take them directly to the accounting results of the
Chinese market. They can arrive at the financial results directly with one click from the SAP
Fiori Launchpad home page.
The following screenshot is an example of the design pattern:
An example of the process flow is shown in the following screenshot:
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An example of a chart is shown in the following screenshot:
In the SAP Fiori theme designer, custom themes can be designed for the Launchpad. For
example, the following tasks can be performed:
Changing the font color
Changing the background color
Adding images
Assigning a new theme to users
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SAP Fiori architecture
The following figure shows the latest 1709 architecture of SAP Fiori:
SAP Fiori frontend server 4.0 is an add-on product version of SAP NetWeaver AS ABAP
and delivers the frontend software components required to run Fiori 2.0 applications for
S/4HANA 1709:
Release 1511 1610 1709
SAP NetWeaver (recommended) 7.50 7.51 7.52
SAP Fiori 1.0 2.0 2.0
SAP Fiori Front End Server 2.0 3.0 4.0
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SAP Fiori business benefits
The following are some business benefits that SAP Fiori can offer to the customers over the
traditional user interface:
Reduce IT average incident resolution time
Reduce mobile app development effort
Avoid costs associated with data errors
Reduction of time to perform employee activities
S/4HANA migration overview
In this chapter, we will briefly discuss the migration process. Although the detailed
migration process will be discussed in the next chapter, it is important to understand
migration and some of its related key concepts.
Introduction to migration
Migration to SAPS/4HANA is a fairly simple process, but it is important to understand the
starting point of the customer. It can be for an existing SAP ECC customer or for a new SAP
customer and the entire process is driven by the answer to the questions, such as from
where do we want to start or where does the customer stand presently?
New SAP customers can use classic tools to migrate from legacy systems to SAPS/4HANA.
The migration process can be started at any period for the SAP ECC customer, and the
customer can be on the classic or new G/L when they start to migrate. There are no SAP
services that are needed to migrate, as there was in migration from the classic G/L to new
G/L migration.
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Each of the following can be the starting point for a customer:
Concept of business partners
Business partners can be any person or organization with an interest in your business
operations. Business partners can be customers, vendors, banks, shareholders, and so on.
Until now, in SAP, there were several redundant objects that have now been replaced by
business partners in S/4HANA. This reduces the data volume and the number of tables. For
SAP business partners, this is not new, as it was already being used in the SAP modules in
various ways:
SAP Collections Management (FSCM-COL)
SAP Credit Management (FSCM-CR)
SAP Treasury and Risk Management (TRM)
Loans Management (FS-CML)
Customer Relation Management (CRM)
Supply Chain management (SCM)
Supplier Relationship Management (SRM)
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With the emergence of SAPS/4HANA, the major impacted area with reference to business
partners are customers and vendors. Normally, the volume of this master data is huge in
every organization, and most of the time, one party shares both the relationships. The BP in
SAPS/4 HANA is capable of managing master data centrally for business partners,
customers, and vendors. BP is the only transaction needed to create, edit, and display
master data.
The following transaction codes are replaced by BP:
In the new environment, whenever the customer or vendor is created, the business partner
is always created automatically, and it provides the following benefits to the organization:
General data section of the master data is shared within different BP roles, and it
results in lowering the data volume
Due to its versatile nature, any business partner is capable of performing
multiple roles, such as customer and vendor, which makes the BP reporting more
easy
CVI is the process of synchronization between the business partner object and is
needed when migrating from SAP ECC to SAPS/4HANA
The business partner master data process is as follows:
1. Set up the general data. Once this is updated, table BUT000 will be updated:
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2. Set up the FI vendor:
Role FLVN00 enables the posting of a direct vendor invoice and role FLVN01
enables the creation of purchasing data, which is a must to create a purchase
order:
After this process, the table LFM1 is updated.
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3. Set up a customer:
Table KNA1 is updated once the customer is created, and a direct FI posting via
FB70 can be executed.
Role FLCU01 is needed if a sales order is needed to be created for the customer:
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Customer vendor integration
In this section, we will discuss the process of customer vendor integration, which is a
mandate before we migrate to S/4HANA from SAP ECC. Before we get into the process,
let's understand the basics first:
Customer: A customer is a business partner to whom goods and services are sold
and/or delivered. A business partner can be a customer and a vendor at the same
time, if, for example, your customer also supplies goods to you. A customer
master holds information on the customer, such as their name, address, bank
details, tax details, delivery, and billing preferences. This customer information is
used and stored in transactions, such as sales orders, deliveries, and invoices.
Some customer information is specific to a company (known as company code)
or sales unit (known as sales area) within your organization.
Vendor: A vendor (or supplier) is a business partner that delivers and sells goods
and services to your organization. A business partner can be a vendor and a
customer at the same time, if, for example, your vendor also buys goods from
you. A vendor master holds information on the vendor, such as their name,
address, bank details, tax details, and billing preferences. This vendor
information is used and stored in transactions, such as purchase orders, goods
receipts, and vendor invoices. Some vendor information is specific to a company
(known as company code) or purchasing unit (known as purchasing
organization) within your organization.
Let's talk about Customer Vendor Integration (CVI). For the sake of simplicity,
we will be using the term CVI going forward.
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What is CVI?
CVI is a process supported by the standard SAP Master Data Synchronization Cockpit tool.
It is used to synchronize customer and vendor master data objects with SAP business
partner objects within SAP. With CVI in place, all the customers and vendors are assigned a
BP number. The concept is illustrated in the following figure:
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Business impact of CVI
To ensure a successful upgrade, all customers, vendors, and all contacts that relate to
customers or vendors must be converted to a business partner, including customers,
vendors, and assigned contacts with the deletion flag. CVI requires high-quality master
data to be converted. The quality checks cannot be switched off on the cockpit level. This
way, the customer is forced to run a high-quality master data project for the customer and
vendor master. If not started in advance, this can be a serious roadblock for the conversion.
Before we execute the CVI conversion, SAP recommends to archive the customers/vendors
with the deletion flag. It is recommended (but not mandatory) that the business partner ID
and customer ID/vendor ID are the same. Note that in case of overlapping number ranges
for customers and vendors in the start system, an additional number range alignment is
required. The user interface for SAPS/4HANA to create and maintain customer and vendor
master data is the transaction BP. The specific transaction code to maintain
customers/vendors (as in the SAP Business Suite) is not available within SAPS/4HANA.
The BP transaction is the single point of entry to create, edit, and display master data for
business partners, customers, and vendors.
CVI ensures that customer and vendor master data tables are updated automatically after a
BP is created/changed. All KNxx and LFxx customer/vendor master data tables are still
populated as previously in the SAP Business Suite.
In SAPS/4HANA, the BP transaction covers almost all customer/vendor master data fields.
One exception is that the CVI of the vendor text in the BP master will be covered in SAP
S/4HANA 1610 SPS01, that is, 02/2017. Our customer might not be able to maintain all the
data needed using a single BP transaction in the SAP Business Suite. There are no plans to
implement additional fields here since the xD0x- and xK0x-transactions continue to exist.
CVI conversion scenarios
Based on the SAPS/4HANA implementation scenario, new install or system conversion,
different CVI process scenarios must be considered. For a new install scenario, a central
configuration for business partners, including CVI setup and test steps, is required.
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An Overview of SAP HANA, S/4HANA, and Migration Chapter 1
For a system conversion scenario, several preparation steps are necessary to first convert
the customer/vendor data into an SAP business partner:
Summary
As we have just started with our learning journey, we completed the introduction to our
topic. It is important to understand that SAPS/4HANA can only be implemented on a SAP
HANA database and that it provides several benefits to organizations, especially to the
finance community; several tables are obsolete, and the Universal Journal was introduced.
Also, the data aging concept saves money for the customers in archiving and maintaining
data from the past. We still have a lot to go through. Now, we will focus on the technical
aspect of migration to SAP HANA and take a look at the deployment options available.
Then, we will move on to discuss in detail each of the areas that have changed in
S/4HANA.
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An Overview of SAP HANA, S/4HANA, and Migration Chapter 1
Questions
1. What is SAP HANA?
2. What is SAPS/4HANA?
3. What is business partner functionality in SAPS/4HANA?
4. When is CVI needed?
5. What is the Universal Journal?
6. What will be the new length of the material number in SAPS/4HANA and is it
defaulted by SAP?
7. What is the difference between OLAP and OLTP processing?
8. What is SAP Fiori?
[42]
2
Migration to SAP HANA – Tools
and the Project
We have just completed our introduction to SAP HANA and S/4HANA. Before we start
with the configurations and the functionalities of the new system or the delta changes, it is
important to understand the basics of HANA migration. It may be a little technical, but I
will try to keep things as simple and interesting as possible.
In this chapter, we will look into migration.
Technical requirements
For this chapter, the following is required:
SAPS/4HANA system
System migration
We will learn about the differences between a homogeneous and a heterogeneous system
copy and the consequences of both the system copies; we will also discuss the migration
check service.
The two types of system copies that can be performed are as follows:
SAP system copy without changing the operating system or the database
SAP system copy while changing the operating system or the database
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The following are the proposed solutions for these two system copies:
Backup/restore
Third-party tools for data unload/load
SAP system copy tools
SAP homogeneous system copy
SAP homogeneous system copy is a way to move or copy an SAP system to a new
environment. In a homogeneous system copy, the source and target system use the same
operating system (OS) and database (DB) system. The hardware architecture remains the
same, or is a certified successor, where SAP supports homogeneous copies as well.
The operating and database systems for a homogeneous system copy are combinations of
OS and DB versions released by SAP. In some cases, an OS or a DB upgrade may be
necessary on the source system before a system copy can be performed. A homogeneous
system copy can be executed by a customer. There is no need for a specific certification. For
the target system, the same OS can mean an SAP-certified successor, such as Windows 2008
or Windows 2012. Depending on the method used for executing the homogeneous system
copy, it may be necessary to upgrade the DB or the OS of the source system first. On older
SAP system releases, an upgrade may be necessary. This can be the case if the target
platform requires a DB or OS version that is not compatible with the SAP system version
that is to be copied. New hardware on the target system may be supported by the latest OS
and DB versions only.
Reasons for a homogeneous system copy
The following are some of the reasons for performing a homogeneous system copy:
System move (hardware change)
MCOD configurations involving system moves
Setting up of additional SAP systems for development, quality assurance and
training, or production
Change of the SAPSID for company-related reasons or the use of SAP-reserved
SIDs
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SAP heterogeneous system copy
In a heterogeneous system copy, the source and target systems use a different OS or DB. In
many cases, a change of the hardware architecture is also involved. The operating and
database systems for a heterogeneous system copy are SAP-released combinations of OS
and DB versions. A heterogeneous system copy must be executed by a person who is
certified for OS/DB migrations, except when using the DB migration option on the software
update manager (database migration option) (SUM (DMO)), which takes care of the
necessary tasks automatically.
Depending on the method used for executing the heterogeneous system copy, it may be
necessary to upgrade the DB or the OS of the source system first. Older SAP system releases
may require an update. You may want to perform a heterogeneous system copy when a DB
or OS changes for one or more of the following reasons:
Hardware enhancements
Performance improvements
Availability of new technologies
Administrative efficiency
Cost reduction
Guarantee against hardware or software becoming obsolete
Standardization through a group-wide platform strategy
System copy consequences and decision table
The following are some of the negative consequences of a system copy:
Missing or corrupted data (worst case)
Increased support requirements for the SAP Hotline
Poor performance
User dissatisfaction
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Key terms used in this process are as follows:
The type of system copy can be decided based on the following table:
Migration check service
The SAP OS/DB migration check has two service sessions:
OS/DB migration check analysis
OS/DB migration verification session
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Benefits of migration check service
Some benefits of the migration check service are as follows:
Independent of third-party standalone solutions
Standardized procedures for all migrations
Avoidance of planning errors through a defined migration procedure and
inspection of the project schedule by SAP
Parameter recommendations for the target system through SAP OS/DB migration
check with special regard to OS or DB change
Efficient project implementation through cooperation with experienced
migration partners
System copy method
The following are the copy methods based on DB:
Database-specific copy method for Java
The database-specific system copy methods for Java systems replace the JLOAD
export/import part, but still require SAPinst to run on the source and target systems.
SAPinst collects various system information on the source, which is required to adjust the
target system to make it run on the target system platform.
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SAP migration tools
The key objective of this section is to understand how to identify the relevant tools required
to perform the migration.
ABAP OS/DB migration
Existing systems running with Advanced Business Application Programming (ABAP)
need to be migrated.
ABAPDDIC export with R3LDCTL:
Creates table and index structures files (*.STR)
Creates the view structure file (SAPVIEW.STR)
Supports CDS views and user-defined database functions
Supports declustering
Contains knowledge about specific tables that are built in and relate to the SAP
release
Creates database-specific DDL command templates (DDL<DBS>.TPL)
R3LDCTL reads the ABAP dictionary to extract the database-independent table and index
structures and writes them into *.STR files. Every version of R3LDCTL contains release
specific, built-in knowledge about the table and index structures of specific SAP internal
tables, which cannot be retrieved from the ABAP dictionary. These structures are added
automatically (for example, the SAP NAMETAB tables, DDNTT and DDNTF).
R3LDCTL creates the DDL<DBS>.TPL and DDL<DBS>_LRG.TPL files for SAP-supported
databases. The DDL<DBS>_LRG.TPL files are mainly used to support unsorted exports.
R3LDCTL writes the structure definition of cluster tables into the *.STR files when called
with the respective decluster option.
DB object size calculation with R3SZCHK
Computes sizes of tables and indexes and stores them into extent files (*.EXT)
Limits calculation of object extent sizes to 1,700 MB (1,782,579,200 bytes)
Creates target database size file (DBSIZE.XML)
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R3SZCHK generates the target database size file, DBSIZE.XML, for SAPinst. The extent sizes
written into *.EXT files will never exceed 1,700 MB (1,782,579,200 bytes). Nevertheless, the
DBSIZE.XML file is calculated from the original table and index sizes. The size
computations are based on assumptions and are limited in their accuracy. The
DDLOADD table is used to store the calculated extent sizes before writing them into *.EXT
files.
ABAP data export/import with R3LOAD
The following are the characteristics for ABAP exports and imports:
Exports and imports ABAP database objects
Writes a platform-independent data dump format
Provides efficient data compression
Ensures data dump consistency by check sums
Checks R3LOAD control files, syntax at invocation
Supports restart after exporting or importing errors
Converts data to unicode
Supports table splitting
Supports CDS views and user-defined database functions
Supports declustering during exports or imports
The following are the characteristics for SMIGR_CREATE_DDL:
The SMIGR_CREATE_DDL report runs on the source system
Generates <TABART>.SQL files containing DDL statements to recreate
nonstandard ABAP database objects on the target system (mainly BW objects)
Mandatory for all ABAP systems, not only for BW or SCM systems
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The SMIGR_CREATE_DDL report generates DDL statements for nonstandard database
objects and writes them into the <TABART>.SQL files. The SQL statements are specific to the
target database type, which was applied to SMIGR_CREATE_DDL. The SQL files are used by
R3LOAD to create the nonstandard DB objects in the target database, bypassing the
information in the <PACKAGE>.STR files. Nonstandard objects use DB-specific features and
storage parameters, which are not part of the ABAP dictionary (mainly BW objects):
The SMIGR_CREATE_DDL report is executed shortly before the system is stopped for the
export. SAPinst is called to perform all required export steps. Depending on the database
and the database type, updated statistics might be required to support the R3SZCHK size
calculation. SAPinst can skip the updating statistics in most versions:
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SAPinst automatically creates the shown directory structure on the named dump filesystem
and generates a LABEL.ASC file. During the export procedure, various files are placed in
the specified directory structures. The *.STR, *.TOC, *.WHR, and the dump files are stored
in the .../DATA folder. The *.WHR exists if table splitting is used. The DDL<DBS>.TPL files
are stored in the .../DB folder, and all *.EXT files and the DBSIZE.XML file are stored in
the corresponding .../DB/<DBS> database subdirectory.
The SQLFiles.LST and <TABART>.SQL files exist only if they are created by the
SMIGR_CREATE_DDL report. SAPinst copies them into the .../DB and the respective
.../DB/<DBS> subdirectory. The SQLFiles.LST file is empty (except for a timestamp) if
no <TABART>.SQL files were created.
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JAVA OS/DB migration
The following are the characteristics of JLOAD Data:
Exports and imports Java DB objects
Writes a platform-independent data dump format
Provides efficient data compression
Provides data dump consistency by check sums
Supports restart after export or import errors
Supports table splitting
The following are the characteristics of a JLOAD job file creation using JPKGCTL:
Creates export and import job files for JLOAD
Combines table packaging and table splitting features
Separates metadata and data into different job files
Java target DB size calculation with JSIZECHECK:
Creates the target database DBSIZE.XML based on the DB size of the source DB
system
Requires no special DB statistics
Has a short execution time
Key points to be noted:
JSIZECHECK is normally called upon to get the DBSIZE.XML file created for all
the required target databases.
JPKGCTL helps in distributing the relevant Java tables to package files and can
also optionally split tables.
JMIGMON calls JLOAD to export the Java metadata and table data. For
applications that store their persistent data in the filesystem, SAPinst collects the
files into SAPCAR archives. The SDM is called to put its filesystem components,
including SDM repository, into the SDMKIT.JAR file.
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System copies ‒ import and export
In this section, we will learn how to describe the software logistics toolset and control the
export and import processes of system copies.
Software logistics toolset
The software logistics toolset provides a product-independent delivery channel for
software logistics tools and includes the following channels:
System maintenance
System provisioning
Frontend installation
Change control
LM automation
Software provisioning manager
It provides the latest SAPinst version with software-provisioning services for several
products and releases for all platforms and includes the following topics:
System installation
System copy and migration
System uninstallation
Dual stack split
System renaming
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Target database size
The filename for the target database size is DBSIZE.XML. It is created by:
ABAP: R3SZCHK
Java: JSIZECHECK
Its features are as follows:
The DBSIZE.XML content is database-specific
SAPinst requires the DBSIZE.XML file to create a database
The DBSIZE.XML file can be generated on the source system upfront of a system
copy to implement a parallel export/import
Migration project overview
Now let's take a look at how the migration project can be planned.
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A sample schedule
So, this is how the steps and the plan should look:
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The standard OS/DB migration procedure also applies to heterogeneous system copies of
ABAP systems in introductory phase projects or pilot projects. Prepare for the SAP OS/DB
Migration Check Analysis Session as early as possible. Run this process on the productive
SAP system (the source system) before the final migration. Migration test runs are iterative
processes that are used to find the optimal configuration for the target system. In some
cases, one test run is sufficient, but sometimes several repeated runs may be required. The
same project procedure applies to both the OS migration and DB migration.
Test and final migrations are mandatory only for productive SAP systems. Most other SAP
systems, such as development, test, or quality assurance systems, are less downtime critical.
If the first test run for those systems shows positive results, an additional migration run
(final migration) is not necessary:
Migrate each productive system twice—once for test migration and once for the final
migration. Development, test, and quality assurance systems are less critical and can often
be migrated in a single step. In many cases, the migration of a quality assurance system is
not necessary because it can be copied from the migration production system:
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SAP OS/DB migration check analysis
Perform an SAP OS/DB Migration Check analysis as soon as possible after a Migration
Check has been ordered and the migration project has been approved by SAP:
Check the production system with regard to the migration.
Check the SAP system and database parameters.
Analyze performance in the SAP system and the database.
Make recommendations for the migration target system.
The SAP OS/DB Migration Check Analysis Session is focused on the special
aspects involved in the platform or database change. It is performed on the
productive SAP system with regard to the target migration system environment.
The results of the Migration Check are then recorded.
6. ABAP- and JAVA-based SAP systems components will be checked.
7.
1.
2.
3.
4.
5.
SAP OS/DB check verification
After the final migration, wait four weeks to perform the SAP OS/DB migration check
verification. Several weeks are required to collect enough data for a performance analysis.
The previous production system should stay available during this time.
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Some activities during the wait period can be:
Analyze the SAP system and database logs
Analyze response times for critical transactions
Analyze performance bottlenecks in the SAP system and database
Optimize the SAP system and database parameters
Check ABAP and JAVA-based SAP systems
Required source system information
Check all software components to be certain that they can be migrated, especially Java
based components. Assess the following criteria in relation to the required source system:
Installed SAP products
Versions of installed products, for example, enhancement packages, support
packages, the kernel version, operating system, and database system
Current system landscape
Number of systems in a production state
System migration order and time schedule
Maximum system downtimes for migration purposes
System access in cases of hosting environments
Ensure that you fully understand the current system landscape. There may be OS/DB
related dependencies between certain systems, which must be analyzed first. Determine the
systems that require migration, the correct migration sequence, and the time schedule of
the customer. In the case of a hosting environment, determine whether the consultant has
access to the source system.
Required source system ‒ technical information
The following is a list of technical checks/information we need for our source system:
Current hardware (RAM, CPUs, and disk subsystem)
Size of the source databases (compressed/uncompressed)
Free local disk space for unloading the database
Largest tables and indexes
Code pages used
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Tables in the ABAP dictionary, but not in the DB or the reverse
External files and interfaces
Required target system information
The following list outlines target system general information:
Target system landscape system, for example, cluster
Target hardware
RAM
CPUs
Disk subsystem
Target operating system version
Intended target database version
Date of hardware availability or delivery
Performing a migration test run
The following steps are needed for a migration test run:
1. Install migration tools and prepare the source system.2
2. Export data from the SAP source system.
3. Install the SAP product and the database software on the target system.4
4. Transport/share the data export to the target system.5
5. Create an empty target database.6
6. Load the data export into the target database.7
7. Complete the installation and perform the follow-up tasks.8
8. Configure the test environment.
9. Extensively test the migrated system.
Final migration planning
The following is a list of activities in the final migration planning process:
Create a cut-over plan
Perform the migration
Perform the follow-up tasks
Check the system
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Run a backup
Start production work
Installing and upgrading
Please read SAP Note 2157996, which includes an Excel-based installation/upgrade
checklist; it will help you verify the important topics for preparing the installation and
upgrading it to SAPS/4HANA. The checklist focuses on specific aspects, conditions, and
prerequisites for the SAPS/4HANA Finance backend installation.
Customers already using SAP HANA should update their SAP HANA database to SAP
ERP 6.0 EHP7 or higher versions, and SAP HANA SPS 7 (or higher versions), to allow for
migration to SAPS/4HANA Finance. If the required minimum SAP HANA update is
planned, check whether it's reflected in the project execution plan. Similarly, verify whether
the implementation team has sufficient experience or equivalent support to install,
configure, and run an SAP ERP EHP upgrade and installation. The installation of SAP
S/4HANA Finance requires SAP ERP 6.0 systems to be updated to EHP7 or higher
versions. The stack calculation (using the maintenance optimizer) for the installation of SAP
S/4HANA Finance automatically takes this into consideration.
Software update manager
The software update manager (SUM) helps you perform release upgrades, install
enhancement packages, apply service packages, and update single components on SAP
NetWeaver. The SUM checks the current version of the system, analyzes the required
components, imports the necessary programs and add-ons, and finally installs all the
components that are divided into a number of roadmap steps, which, in turn, are further
subdivided into a sequence of phases for monitoring purposes. The SUM is the main tool
used to convert your system to SAPS/4HANA Finance. If your source system isn't yet
running on an SAP HANA database, use the database migration option (DMO) of the
SUM to migrate your database to SAP HANA during the conversion.
With SUM and DMO, you can run the upgrade to SAP ERP 6.0 EHP 7 or a higher version,
the database migration to SAP HANA, and the installation of SAPS/4HANA Finance in a
single step. If SAPS/4HANA Finance is installed using the SUM with DMO, and the source
database isn't SAP HANA, a specific uncritical error message will occur in the
MAIN_SHDRUN/ACT_UPG phase.
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Summary
So, now that we have completed this chapter, we have a fair understanding of migration
processes, tools, services, and types, and we can relax. It is imperative that you recap all of
these; however, you don't need to remember them by heart. Try the following questions
and move on to the next chapter, as now we are gaining a detailed understanding of SAP
S/4HANA topics.
Questions
What is a homogeneous system copy?
What is a heterogeneous system copy?
What is a Migration Check service?
What can be the consequences of a system copy?
What are the key SAP migration tools?
What do we mean by the export and import of system copies?
1.
2.
3.
4.
5.
6.
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3
SAP S/4HANA – Deployment
Options
Now that we have gained an understanding of SAP HANA, migration to HANA, and
S/4HANA, we will get into the details of the deployment options. This chapter will focus on
the available deployment options and discuss about each of the options available in detail.
In this chapter, we will look into the following topics:
Cloud deployment
On Premise deployment
Hybrid deployment
What is deployment?
With the emerging trend of increased data volume and with more ease of end customers,
companies have to deploy various systems in their landscapes, not just one enterprise
resource planning (ERP) tool. An ERP is the central location and hosts more of the data,
however, for managing customers companies use several CRM systems, for managing
employees companies use HR systems; for expenses management and, similarly, for
purchases and alot of other business areas, like planning, incident management, vendor
management, and more, various systems related to those areas are used. All these systems
generally talk to each other from a technical standpoint in order to manage businesses and
have continuous dataflows.
All these systems are hosted somewhere. This is known as deployment, that is, where the
data space is allocated to you. Up until now, most systems have been hosted in the client's
own space and clients have been responsible for managing and maintaining those systems.
SAPS/4HANA – Deployment Options Chapter 3
With the changing trend, the data storage area has gained new flavors. Let's discuss
personal data storage. Initially, we used to store data on floppy disks, then came CDs, and
then hard disks were used. Nowadays, people take subscriptions to internet-based drives,
which can host as much data as you want; however, they need to pay based on the size of
their data, for services such as Google Drive, Dropbox, and SkyDrive. They give some space
for free, but you need to pay to get more space based on your needs.
Now, the question arises as to what benefit you get or how it is more beneficial than storing
data on CDs or disks? The following are the answers to that question:
Flexibility of using the data anywhere, anytime, and on several devices
You don't need to invest in safeguarding the drive
You don't need to have backup of data to prevent the disks from getting
damaged
You don't need to carry drives physically
This trend is known as cloud deployment of personal data. In this chapter, we will discuss
the various options available for businesses deployment and how those options can be
exercised.
SAP S/4HANA deployment options
The following are the three major deployment options available to customers while
implementing SAPS/4HANA:
On Premise
On Cloud
Hybrid
Now, we will take a look at what each model looks like and how it works.
First, we will talk about the classic On Premise model.
If a company has heavily invested in its data centers and it does not want to discontinue
using them so quickly and it's organizational processes are heavily customized along with
modifications, then On Premise is the right fit for SAPS/4HANA deployment. It is
completely supported by SAP; however, a company has to take the end-to-end
responsibility for an On Premise system, especially, in regard to system governance and
operations or the implementation of maintenance measures:
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Using existing data centers and managing a system on one's own is the classic way to
manage IT systems, and to date, it is one of the most used, most preferred, and most
successful methods of deployment. If you look at the deployment model of any
organization in the past, almost all will have had this model. On Premise can be used by
two types of SAP customers:
New installations
Landscape migration for existing customers
A new installation means setting up the SAP system starting from zero, where the customer
is not using SAP presently and wants to start with SAP as their ERP system. It's like a
Greenfield project.
Those customers who are already using SAP can migrate to SAPS/4HANA. We will
discuss both these approaches in detail in subsequent chapters.
Now, let's discuss the deployment options in detail.
SAP S/4HANA On Premise
On Premise is the traditional way to manage IT systems, and the customer is responsible
for managing the servers, management of the system itself, backup, and more. The core
processes of a customer are normally On Premise, whereby they want more flexibility and
confidentiality to gain competitive advantage. Customers can customize the system as per
their needs, without any limits.
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SAPS/4HANA's On Premise edition is very similar to what is used presently. Additonally,
SAPS/4HANA also includes the major processes related with finance as well as to the core
finance network, such as Ariba and SuccessFactors.
SAP S/4HANA on Cloud
On Cloud is a new approach toward data management, where the servers, management,
and backup are managed by a cloud provider, for example, in Google Drive, we just store
the data and use it as needed; however, we are not concerned about the loss of data.
SAPS/4HANA's Cloud edition covers specific business scenarios, which includes almost all
areas of business such as finance, accounting, controlling, procurement, and sales, along
with integration with SAP SuccessFactors, SAP Ariba Network, SAP Hybris, and SAP
Fieldglass.
The Cloud model considers the following:
Data security: Firewalls protect data, whereas intrusion detection systems
monitor incoming data and identify potential threats. Data and backup files are
exchanged with customers in an encrypted format or transmitted via secure
fiber-optic cables.
Data privacy: SAP ensures that data protection provisions are complied with. A
Cloud customer's data falls under the jurisdiction of their choice. SAP's support
services ensure that data protection is also maintained during maintenance
operations.
Data center locations: Data centers for the SAP HANA Enterprise Cloud are
located worldwide. Data centers are either owned and operated by SAP or
colocated at partner sites. In the future, SAP will continue to build SAP owned
and-operated data centers and pursue partner capacity.
For a list of the present data centers of SAP, visit www.sapdatacenter.com
for an updated map. This map was taken at the time of writing this book:
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The following is the road map by SAP planned for its On Cloud and On Premise innovation
cycle for SAPS/4HANA:
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Comparing S/4HANA On Premise and On Cloud
The following table is a comparison of On Premise and On Cloud models at a glance:
Area of comparison S/4HANA On Premise S/4HANA On Cloud
Licensing model Traditional Subscription
Speed of innovation Customer controls when to
innovate/change Customers participate in
quarterly innovation
Implementation
approach
Highly individual area focussed
approach and is related to Predefined best practices
business processes
Key scenarios, embedded
scenarios, and integrates with
other components
SAP provides the system and
is responsible for
maintenance
Limited ABAP and in-app
extensibility
Full ERP scope and integrates
Functional scope with other components
Customer controls the
Infrastructure model deployment and maintenance
Custom code Fully traditional ABAP
Types of cloud
As of now, the cloud market has the following options available:
Public cloud
Private cloud
A public cloud usually hosts data for various companies on the same server. Programmers
from various companies can build and execute code without affecting each other's work.
SAP offers public cloud services, which are governed by SAP architecture. Customers
simply pay for what they use.
In the scenario of a private cloud, the system administrators are responsible for managing
the cloud, and the cost is generally on the higher side in such cases, as the servers and
human resource costs need to be at the customer side, although the servers are dedicated to
the organization.
Selection of the type of cloud (private or public) is dependent on the organizational needs
in terms of data, which include privacy, security, cost, and confidentiality of their data.
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An overview of implementation scenarios
Now, since we covered the meaning of deployment and the options for deployment for the
customer, let's run through the overview of the possible implementation scenarios for the
customer. These scenarios will be discussed in detail in a subsequent chapter, but before we
move on, it is important to get through the overview of possible scenarios.
The following are the three different implementation scenarios regarding how a customer
can move to SAPS/4HANA:
Scenario A ‒ System Conversion
Existing SAP customers who want to move to SAPS/4HANA: This scenario
involves existing SAP customers who want to implement SAPS/4HANA. The
following are the key steps on the path:
Updating to SAP NetWeaver Application Server ABAP 7.5
Migrating the database to SAP HANA (in cases where, the SAP
Business Suite system is not yet on SAP HANA)
Installation of SAPS/4HANA, On Premise edition
Installation of SAP Fiori for SAPS/4HANA, On Premise edition
Migration of data from the old data structures to the new
simplified data structures
Scenario B ‒ Landscape Transformation
Existing SAP customers who want to implement a system landscape and move
to SAPS/4HANA: This scenario is focused on existing SAP customers who want
to change their system landscape to SAPS/4HANA. The following are the steps
included:
Possibly, a new installation of SAPS/4HANA
Possibly, converting a system to SAPS/4HANA
Additional migration steps that are based on SAP Landscape
Transformation combined with SAP Landscape Optimization
services
[68 ]
SAPS/4HANA – Deployment Options Chapter 3
Scenario C ‒ New Implementation
Customers who want to move from non-SAP systems to SAP systems: This is
for those customers who are using third-party applications and want to
implement SAPS/4HANA. The following are the steps included:
Installation of SAP NetWeaver Application Server ABAP 7.5 based
on SAP HANA
Installation of SAPS/4HANA, On Premise edition
Installation of SAP Fiori for SAPS/4HANA, On Premise edition
Hybrid model of deployment
The hybrid model of deployment option is the most common of all, as customers tend
to want to use On Premise systems due to their data security constraints, and they also
want to use new applications that are on the cloud as a part of their innovation road maps.
This situation is a combination of On Premise and On Cloud deployments, where some of
the applications are On Premise, such as SAP ERP, and a few applications are On Cloud,
such as SAP Ariba and Concur.
With a hybrid approach, customers can leave their existing systems undisturbed in an On
Premise environment; it consists of SAP ERP instances of various levels or legacy systems.
Adding an SAPS/4HANA instance managed in the SAP HANA Enterprise Cloud enables a
customer to adopt finance innovations at their own pace.
Summary
In this chapter, we discussed all the deployment options—On Premise, cloud, and hybrid
models. Customers can choose the model based on their needs however, all of them have
some pros and cons. So, now, you are ready to help customers in choosing the right
deployment option.
Let's move on to the next part of this book, where we will learn about the key changes in
each of the functional areas.
[69 ]
SAPS/4HANA – Deployment Options Chapter 3
Questions
What is the meaning of deployment?
What are the possible options available to customers for deployment?
Explain the features of hybrid model.
What is the innovation cycle plan for On Premise, and how is it different from
hybrid?
1.
2.
3.
4.
[70 ]
4
Impact of S/4HANA on the SAP
General Ledger
In the preceding chapters, we discussed what S/4HANA is all about. Now, we will get into
the details. Be prepared to dive deep into the SAPS/4HANA journey, as we are starting
with the functional changes and the configuration of the SAPS/4HANA General Ledger
(GL). Before we move on to the configuration, it is important to understand the Universal
Journal, the Appendix Ledger, and other such topics. For those who are starting afresh, you
also need to focus on the sections related to the Classic GL and New GL, so that you get to
know the start and background of this entire story.
Technical requirements
For this chapter, the following is required:
SAPS/4HANA system
The history of the General Ledger
Before we start with the GL in SAPS/4HANA, let's go back and take a look at what the GL
is and how it has evolved over a period of several years. A lot of time, effort, and money
has been invested by SAP to reach the latest stage, which has many benefits for the finance
organizations of today from a reporting perspective. This is the crux of the General Ledger
and the requirements of the CFO.
In this section, we will start with the Classic GL and then deal with the New GL. Further,
we will drill down the features of the General Ledger in SAPS/4HANA.
Impact of S/4HANA on the SAP General Ledger Chapter 4
An overview of the Classic General Ledger
The General Ledger contains all the financial transactions of a business. Along with using
the Classic General Ledger, businesses also use the Special Ledger and several other
components, such as Profit Center Accounting (PCA), in order to meet their legal and
business reporting and transactional and auditing requirements. SAP Profit Center
Accounting and the Special Ledger are separate applications. So, these modules were never
automatically reconciled in the Classic General Ledger. This was one of the major
drawbacks of using the Classic GL. However, customers probably did not have any options
at that time. This resulted in more activities at the time of month end closing so that the
reconciliation with the Classic GL could be performed. This was accomplished by the New
GL. Let's discuss the New General Ledger.
An overview of the New General Ledger
The New GL is the improvised version of the Classic GL. It comes with several advantages,
including the following:
An extension to the existing functionality available in the Classic GL
A new functionality as compared to the Classic GL (we will discuss that in a later
section)
Features of the New GL
The New GL includes the following key features:
Parallel accounting
Segment reporting
Cost of sales accounting
Document splitting
New tables
Integrated FI and CO reporting
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Mastering_SAP_S_4HANA_1709_Strategies_fo.pdf

  • 1.
  • 2. Mastering SAP S/4HANA TVO9 - Strategies for Implementation and Migration Transition to S/4HANA with tried and tested deployment scenarios - - - - By Nitin Gupta
  • 3. Mastering SAP S/4HANA 1709 ‒ Strategies for Implementation and Migration Transition to S/4HANA with tried and tested deployment scenarios Nitin Gupta BIRMINGHAM - MUMBAI
  • 4. Mastering SAP S/4HANA 1709 ‒ Strategies for Implementation and Migration Copyright © 2018 Packt Publishing All rights reserved. No part of this book may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, without the prior written permission of the publisher, except in the case of brief quotations embedded in critical articles or reviews. Every effort has been made in the preparation of this book to ensure the accuracy of the information presented. However, the information contained in this book is sold without warranty, either express or implied. Neither the author, nor Packt Publishing or its dealers and distributors, will be held liable for any damages caused or alleged to have been caused directly or indirectly by this book. Packt Publishing has endeavored to provide trademark information about all of the companies and products mentioned in this book by the appropriate use of capitals. However, Packt Publishing cannot guarantee the accuracy of this information. Commissioning Editor: Merint Mathew Acquisition Editor: Sandeep Mishra Content Development Editor: Akshada Iyer Technical Editors: Abhishek Sharma, Adhithya Haridas Copy Editor: Safis Editing Project Coordinator: Prajakta Naik Proofreader: Safis Editing Indexer: Rekha Nair Graphics: Jisha Chirayil Production Coordinator: Deepika Naik First published: June 2018 Production reference: 1290618 Published by Packt Publishing Ltd. Livery Place 35 Livery Street Birmingham B3 2PB, UK. ISBN 978-1-78883-933-4 www.packtpub.com
  • 5. To my father, for everything I am and will be.....I owe it to you. To my wife, for her inspiration, and to my kids, Nilay and Nivi, for their love.
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  • 7. Contributors About the author Nitin Gupta is an IT professional with expertise in SAP solution architecture, business process transformation, and project management and over 11 years of experience in managing and delivering complex SAP and transformation projects resulting in efficiency and productivity. He has successfully led and managed full lifecycle SAP implementation projects across the globe. He holds a master's in business administration and is presently based in Auckland.
  • 8. About the reviewer Pallavi Gupta is a finance expert with vast experience in SAP. Her expertise includes SAP Financials and SAPS/4HANA. She is presently working as an independent consultant on several projects under her own company. She has excellent interpersonal skills and is involved in several client-facing roles. She is presently based in Auckland. Packt is searching for authors like you If you're interested in becoming an author for Packt, please visit authors.packtpub.com and apply today. We have worked with thousands of developers and tech professionals, just like you, to help them share their insight with the global tech community. You can make a general application, apply for a specific hot topic that we are recruiting an author for, or submit your own idea.
  • 9. Table of Contents Preface 1 Chapter 1: An Overview of SAP HANA, S/4HANA, and Migration 6 Technical requirements 7 In-memory data – a core to SAP HANA 7 Optimization of in-memory data 8 Data storage model 8 Data compression 9 Delta storage 10 Data aging 11 SAP HANA Live 13 Introduction to SAP S/4HANA 15 Understanding SAP S/4HANA 15 The Universal Journal 17 Compatibility views for historic data 20 Merging G/L accounts and cost elements 21 Logistics changes 22 Changes to material master data 22 Sales activity 24 SD rebate processing 24 Data model changes 24 Credit management 24 Introduction to SAP Fiori 24 What is SAP Fiori? 25 Key pillars of the Fiori experience 26 Type of Fiori apps 28 SAP Fiori Launchpad 29 SAP Fiori architecture 32 SAP Fiori business benefits 33 S/4HANA migration overview 33 Introduction to migration 33 Concept of business partners 34 Customer vendor integration 38 What is CVI? 39 Business impact of CVI 40 CVI conversion scenarios 40 Summary 41 Questions 42 Chapter 2: Migration to SAP HANA – Tools and the Project 43
  • 10. Table of Contents Technical requirements System migration SAP homogeneous system copy Reasons for a homogeneous system copy SAP heterogeneous system copy System copy consequences and decision table Migration check service Benefits of migration check service System copy method Database-specific copy method for Java SAP migration tools ABAP OS/DB migration DB object size calculation with R3SZCHK JAVA OS/DB migration System copies – import and export Software logistics toolset Software provisioning manager Target database size Migration project overview A sample schedule SAP OS/DB migration check analysis SAP OS/DB check verification Required source system information Required source system – technical information Performing a migration test run 59 Final migration planning Installing and upgrading Software update manager Summary Questions Chapter 3: SAP S/4HANA – Deployment Options What is deployment? SAP S/4HANA deployment options SAP S/4HANA On Premise SAP S/4HANA on Cloud Comparing S/4HANA On Premise and On Cloud Types of cloud An overview of implementation scenarios Hybrid model of deployment Summary Questions Chapter 4: Impact of S/4HANA on the SAP General Ledger Technical requirements The history of the General Ledger 43 43 44 44 45 45 46 47 47 47 48 48 48 52 53 53 53 54 54 55 57 57 58 58 59 60 60 61 61 62 62 63 64 65 67 67 68 69 69 70 71 71 71 [ii ]
  • 11. Table of Contents An overview of the Classic General Ledger An overview of the New General Ledger Features of the New GL General Ledger in SAP S/4HANA Data structure of GL in SAP S/4HANA Universal Journal Ledgers and currencies GL account and cost elements Changes to transactions and search options Customizing the SAP General Ledger Activating SAP Reference IMG Checking and adopting Fiscal year variants Migrating General Ledger customizations Defining settings for the Journal Entry Ledger Defining ledger groups Assigning the accounting principle to the ledger group Defining a ledger for Controlling Defining document types for posting to Controlling Defining the document type mapping variant Defining default values for posting in Controlling Defining the offsetting account determination type Defining the source ledger for migration of balances Executing the consistency check for the General Ledger Activating business functions Summary Questions Chapter 5: Impact of S/4HANA on SAP Controlling and Profitability Analysis Technical requirements An introduction to SAP Profitability Analysis (CO-PA) Usage of COPA Methods of profitability management Methods of Profitability Analysis in SAP Aspects in SAP profitability management and organization units involved Comparative analysis of various methods Types of CO-PA Account-based COPA Costing-based COPA Differences between account-based and cost-based COPA COPA in SAP S/4HANA Integration of Account-based CO-PA to Universal Journal Attributed profitability segments Realignment in CO-PA with SAP S/4HANA Characteristics that cannot be changed 72 72 72 74 74 78 79 79 82 85 87 88 88 89 92 94 95 95 97 97 98 99 100 100 101 101 102 102 103 103 104 104 105 107 107 108 108 109 111 112 112 115 115 [iii ]
  • 12. Table of Contents Characteristics that can be changed freely 116 Characteristics that can be changed only if the account assignment is not true 116 Characteristics that are changeable if the field is initial at the time for execution of realignment 116 Reporting options in CO-PA with SAP S/4HANA 117 The Fiori app 117 Analysis for Office 118 HANA Live 119 COGS split in S/4HANA-based CO-PA 120 Defining accounts for splitting COGS 120 Defining additional quantity fields 120 Defining accounts for Splitting Price Differences 121 Material Ledger in SAP S/4HANA 121 Significant changes in Controlling in SAP S/4HANA 122 Changes in transactions 122 Changes in tables Changes in configuration 123 123 Configuration of the document type for CO 123 Maintaining document-type mapping for CO transactions 125 Checking and defining default values for posting in Controlling 125 Maintaining version for the ledgers 126 Summary 127 Questions 127 Chapter 6: Impact of S/4HANA on SAP Asset Accounting 128 Technical requirements An overview of SAP Asset Accounting 128 129 Features of SAP Asset Accounting 130 Organizational units in Asset Accounting 130 Charts of depreciation Integration components 131 133 Integrating with Controlling 133 Integrating with General Ledger (FI) 134 Integrating with Material Management (MM) 135 Asset classes and their components An introduction to New Asset Accounting Key changes in New Asset Accounting 136 139 139 Changes to transaction codes 140 An introduction to the Technical Clearing Account (TCA) 140 Changes to AuC and Transaction Types 143 Posting to the Universal Journal 144 New depreciation-calculation engine 144 Depreciation areas and ledgers 144 Data migration in New Asset Accounting Summary Questions 145 146 146 [iv ]
  • 13. Table of Contents Chapter 7: S/4HANA New Functionalities – Cash Management, BPC, and Fiori UX Technical requirements Introduction to Bank Account Management (BAM) Solution overview Redesigned approach in SAP S/4HANA Configuration Maintaining number ranges for bank account technical IDs Maintaining bank account types Configuring enable payment approval process Configuring payment signatories Configuring cash pool for cash concentration Existing options for extensibility ICF services BAM and BAM Lite Introduction to Cash Management Prerequisite check Master Data set up Bank statement processing Manage cash operations One Exposure from Operations Introduction to BPC What's new in this area? Before and after S/4HANA comparison Applications used Components supported How data flows Authorizations Planning modeler Introduction to Fiori Summary Questions Chapter 8: Overview of Implementation Scenarios Technical requirements Available implementation scenarios New implementation Duration of the new implementation Approach in new implementation Data migration System conversion How to plan a migration project? Key performance indicators (KPIs) in migration Landscape transformation Benefits of landscape transformation 147 148 148 148 150 151 151 152 152 154 155 157 157 160 161 162 163 164 165 168 169 170 170 172 172 173 174 176 178 181 182 183 183 183 184 185 185 186 187 189 190 190 191 [v]
  • 14. Table of Contents Characteristics of SAP S/4HANA landscape transformation projects System landscape transformation (SLT) Preconfigured solutions Available consolidation scenarios Migration of business units Migration of selected applications (central finance) Elements of central finance Central finance replication model Solution methodology – central finance Summary Questions Chapter 9: Period End Closing in SAP S/4HANA Technical requirements Closing activities Month-end closing Year-end closing Reporting with SAP S/4HANA Financial statement versions Reporting options in SAP S/4HANA Closing Cockpit in SAP S/4HANA Closing Cockpit usage scenarios Closing Cockpit configuration Creating a template Creating tasks Defining the Dependencies and Create Task Lists Releasing the Task List Checking dependencies Executing dependencies Process control Summary Questions Chapter 10: Premigration Activities Technical requirements Preparation for migration Prechecks in migration Preparation and migration of customizing for General Ledger Activating SAP Reference IMG Checking and adopting Fiscal year variants Migrating General Ledger customization Defining settings for the Journal Entry Ledger Defining ledger groups Assigning accounting principles to the ledger group Defining the ledger for controlling Defining document types for posting to controlling 191 192 192 193 193 193 195 195 196 196 196 197 197 197 198 199 200 200 203 204 210 211 212 213 214 215 216 216 219 219 220 221 221 221 222 224 225 226 227 228 230 232 233 234 [vi ]
  • 15. Table of Contents Defining document type mapping variant Defining default values for posting in controlling Defining the offsetting account-determination type Defining the source ledger for the migration of balances Executing consistency checks for General Ledger Activating the business functions Preparing and migrating customization of Asset Accounting Preparing and migrating customization of controlling Preparing and migrating the Material Ledger customization Preparing and migrating the House Bank accounts customization Preparing and migrating the Credit Management customization Summary Questions Chapter 11: Migration Activities Technical requirements Data migration Partition of Universal JE Line Items Regenerating CDS views and field mapping Analyzing transaction data and status display Starting and monitoring data migration Overview tab Migration runs Status of migration run Control tab Tables tab Migration of cost elements Technical check of transactional data Material Ledger migration Enrichment of data Migration of line items Migration of balances Calculation of depreciation and total values Migrating General Ledger allocations How to do it? Migrating house bank accounts Migrating Credit Management Migrating Credit Management Master Data and status display Migrating Credit Management exposure and status display Initializing Documented Credit Decisions (DCD) and status display Reconciling Documented Credit Decisions (DCD) Completing migration Reconciling and comparing migrated data Summary Setting migration to complete Questions 235 236 236 237 238 238 239 242 245 245 247 253 253 254 254 254 255 256 256 257 258 258 259 259 259 260 261 263 266 269 270 271 272 272 273 275 276 277 278 279 279 280 281 282 282 [vii ]
  • 16. Table of Contents Chapter 12: Post-Migration Activities Technical requirements Activities after migration Running reconciliation reports Business process validation Transferring application indexes and displaying the status Filling due dates in FI documents and the display status Filling offsetting accounts in FI documents Enrichment of balance carryforward Settings for enrichment of balance carryforward Reconciling the balance with line items and displaying reconciliation status Specifications for Balance Sheet and P&L accounts Enriching balance carryforward based on line items Manual activities for credit management Completing a credit management migration for unmigrated customers Deactivating the reconciliation ledger After migration testing Testing HANA-optimized reports Testing reporting Testing database usage Testing intercompany reconciliation Testing Universal Journal and the closing process Summary Questions Chapter 13: Central Finance – a No-Disruption Approach Technical requirements An overview of SAP Central Finance Understanding Central Finance Key business benefits and use cases Central Finance process use cases Key limitations Short-life master data Fixed assets Inventory Logistics documents Costing-based COPA Document-splitting Profit-center-only postings Central Finance architecture Source system System Landscape Transformation SAP Master Data Governance (MDG) S/4HANA system Application Interface Framework (AIF) Central Finance interfaces 283 283 283 284 284 285 286 288 289 289 290 290 293 293 293 295 295 296 296 297 297 298 298 299 300 300 301 301 302 303 304 304 305 305 305 305 306 306 306 307 307 310 311 311 314 [ viii ]
  • 17. Table of Contents Central Finance mapping Initial load and real-time replication System configuration 315 317 323 Source system 323 System Landscape Transformation (SLT) 332 Defining objects 336 Defining the initial load object 337 Defining the replication object 337 Activating the Initial Load and Replication Objects 338 Control Load/Replication using the SAP LT Replication Server 339 S/4HANA system 339 Configuring the SAP Application Interface Framework (AIF) 340 Clearing Functionality 350 Central Payments 352 Business benefits of Central Payment Configuring Central Payment Managing cost-based COPA in SAP Central Finance Summary Questions 353 353 356 359 359 Chapter 14: Greenfield Implementation Technical requirements Greenfield implementation ASAP methodology 360 360 360 361 The key benefits of the ASAP methodology 361 Phases of the ASAP methodology Agile ASAP 8 methodology SAP Activate Pillars of SAP Activate 361 363 364 365 SAP Best Practices 365 Guided configuration 365 Methodology 367 SAP Activate methodology's features 368 Activate methodology key characteristics 369 The Activate methodology structure 373 Governance, roles, and responsibilities Activate journey – new implementation (cloud) 379 380 Activate journey – new implementation (premise) Activate journey – system conversion Differences between SAP Launch, ASAP, and SAP Activate Summary Questions 383 387 390 392 392 Chapter 15: The Near Zero Downtime (NZDT) Strategy Technical requirements The Near Zero Downtime strategy 393 393 393 [ix]
  • 18. Table of Contents Summary Questions Other Books You May Enjoy 395 395 396 Index 399 [x]
  • 19. Preface If you look on the internet, you will find that SAP is one of the blooming areas in technology, and with the introduction of SAPS/4HANA, the processes and organizations are going through major changes. Millions of jobs are available; however, the skill set is limited as the product is new and is still evolving. The content is scattered across areas such as logistics, Central Finance, changes with S/4HANA, Closing Cockpit, and migration steps. You can find these areas in several books covered in several ways, so what is it that this book offers that's different? This book is the one-stop shop for all these areas. You will find an end-to-end overview of the processes, changes, simplifications, deployment options, and configuration of all the relevant areas, including, but not limited to, SLT, Central Finance, New Asset Accounting, and Fiori tiles. Who this book is for This book will work as a guide to those who have SAP project experience and are looking to learn more about SAPS/4HANA, such as functional consultants, integration experts, project managers, design leads, and solution architects. Also, people who are new to SAP S/4HANA can start with this book. What this book covers This books is purely focused on SAPS/4HANA innovations, and also gives a background of how the process was handled before SAPS/4HANA within SAP itself. It covers the following areas: Chapter 1, An Overview of SAP HANA, S/4HANA, and Migration, helps you get into the topic. You will understand the journey and path of innovation, starting from HANA and then moving to S/4HANA. This will set the stage for the rest of the chapters. Chapter 2, Migration to SAP HANA – Tools and the Project, is a purely technical chapter in which the focus will be on understanding the migration to SAP HANA, the tools available, the steps, and the effort required in terms of resources and time. Also, we will talk about a sample project to impart practical understanding.
  • 20. Preface Chapter 3, SAP S/4HANA – Deployment Options, takes you through the available deployment options—cloud, on premise, and the hybrid model, along with their key features, benefits, and challenges. Chapter 4, Impact of S/4HANA on the SAP General Ledger, purely focuses on changes to General Ledger areas with the introduction of SAPS/4HANA. We will see the necessary functionality changes as well as the configuration changes. Chapter 5, Impact of S/4HANA on SAP Controlling and Profitability Analysis, purely looks at changes to Controlling as well as COPA with the introduction of SAPS/4HANA. SAP recommends that users use Account-based COPA with S/4HANA, and also covers the benefits. We will also take a look at the necessary functionality changes as well as the configuration changes. Chapter 6, Impact of S/4HANA on SAP Asset Accounting, gives you a view of all the changes done in the Asset accounting area with the introduction of new asset accounting. It will involve the configuration as well as the functionality changes. Chapter 7, S/4HANA New Functionalities – Cash Management, BPC, and Fiori UX, runs you though the new functionalities introduced in S/4HANA, such as BAM, Credit Management, and changes to BPC, and we will also learn what Fiori is all about and see how to create a simple Fiori tile. Chapter 8, Overview of Implementation Scenarios, discusses the available implementation scenarios, which may be different for each customer, and also we will learn how to move ahead based on the present customer situation. Chapter 9, Period End Closing in SAP S/4HANA, is mainly dedicated to the closing features as well as the closing cockpit. We will see how the closing cockpit introduced in SAP S/4HANA 1709 is different from the cockpit of SAP ECC. Chapter 10, Premigration Activities, helps you learn about the preparatory activities involved in migration. Chapter 11, Migration Activities, covers an end-to-end view of migration activities, including configuration, which we have to do when we move from SAP ECC to SAP S/4HANA. Chapter 12, Post-Migration Activities, is all about the wind up activities necessary to complete the migration. It involves some sanity checks as well as some reconciliations. [2]
  • 21. Preface Chapter 13, Central Finance – a No-Disruption Approach, is a chapter dedicated to Central Finance, one of the key areas in which organizations are investing and looking toward for the future. All configurations, processes, and relevant aspects of central finance are covered in this chapter. Chapter 14, Greenfield Implementation, is the best way to learn about SAP activate in detail. This chapter will guide through the methodology and how it differs from the previous SAP implementation methodologies. Chapter 15, The Near Zero Downtime (NZDT) Strategy, is a small chapter that guides the readers through the core features of NZDT and explains how it can be used to reduce the downtime during migration. To get the most out of this book In order to use this as the best method for learning, ensure that you understand the key SAP terms, processes, and organization structure in SAP. Although it is not expected that you should be aware of all SAP ECC configurations in advance, if you know them and have previously used them in your projects, that's excellent. When you are learning the configuration chapters, have the system ready (maybe DEMO system) so that you can follow the instructions and get the correct results. Download the color images We also provide a PDF file that has color images of the screenshots/diagrams used in this book. You can download it here: https://www.packtpub.com/sites/default/files/ downloads/MasteringSAPS4HANA1709StrategiesforImplementationandMigration_ ColorImages.pdf. Conventions used There are a number of text conventions used throughout this book. CodeInText: Indicates code words in text, database table names, folder names, filenames, file extensions, pathnames, dummy URLs, user input, and Twitter handles. Here is an example: "The tables are merged to the ACDOCA table with the header table BKPF. FAGLFLEXA and some other New GL tables are now obsolete." [3]
  • 22. Preface Bold: Indicates a new term, an important word, or words that you see onscreen. For example, words in menus or dialog boxes appear in the text like this. Here is an example: "SPRO | Financial Supply Chain Management | Cash and Liquidity Management | Bank Account Management | Basic Settings." Warnings or important notes appear like this. Tips and tricks appear like this. Get in touch Feedback from our readers is always welcome. General feedback: Email feedback@packtpub.com and mention the book title in the subject of your message. If you have questions about any aspect of this book, please email us at questions@packtpub.com. Errata: Although we have taken every care to ensure the accuracy of our content, mistakes do happen. If you have found a mistake in this book, we would be grateful if you would report this to us. Please visit www.packtpub.com/submit-errata, selecting your book, clicking on the Errata Submission Form link, and entering the details. Piracy: If you come across any illegal copies of our works in any form on the Internet, we would be grateful if you would provide us with the location address or website name. Please contact us at copyright@packtpub.com with a link to the material. If you are interested in becoming an author: If there is a topic that you have expertise in and you are interested in either writing or contributing to a book, please visit authors.packtpub.com. [4]
  • 23. Preface Reviews Please leave a review. Once you have read and used this book, why not leave a review on the site that you purchased it from? Potential readers can then see and use your unbiased opinion to make purchase decisions, we at Packt can understand what you think about our products, and our authors can see your feedback on their book. Thank you! For more information about Packt, please visit packtpub.com. [5]
  • 24. 1 An Overview of SAP HANA, S/4HANA, and Migration The purpose of this chapter is to understand SAP HANA, which forms the base of learning for SAPS/4HANA and will be discussed in subsequent chapters. SAP HANA is a database management system (DBMS) based on in-memory technology. In SAP HANA, memory is available to such an extent that storing data is not a constraint. This makes it different from other available databases that have memory constraints, even though they have potential in terms of hardware. SAP HANA optimizes memory access between cache and the primary/main memory. In the present age, the volume of data is a big challenge for all organizations, specifically finance organizations, as they have to store the data for longer time due to audit requirements and, of course, for planning and forecasting purposes.
  • 25. An Overview of SAP HANA, S/4HANA, and Migration Chapter 1 The basic concept of SAP HANA includes the following areas: In-memory data Optimization of in-memory data Delta storage: Technical requirements For this chapter, the following are required: SAP HANA Database 2.0 SAP ECC system with non-SAP database SAP SLT system Running RFC connections between systems In-memory data ‒ a core to SAP HANA If you have noticed the trend of computers and their core configuration, it should be evident that there has been a drastic change over a period of time, let's say, in the last decade. Prices have been moving around with a slight dip, and memory capacity has increased drastically. From an enterprise server perspective, the capacity today is in terabytes with a single enterprise-class server. [7]
  • 26. An Overview of SAP HANA, S/4HANA, and Migration Chapter 1 The hard disks are cheap and affordable and are at the lowest space in the consequential structure, but the key to this entire process of in-memory data modeling is performance. In the following figure, if we move from top to bottom, it shows a higher latency with lower price, and if we move vice versa, it depicts a higher performance: The main memory is normally directly accessible, and if we compare its access to that of the hard disk, the speed is 100,000 times faster. All traditional database management systems use the disk as a primary storage and the main memory is used as just a buffer. Optimization of in-memory data SAP HANA stores data in a columnar format, which results in effective compression and reduction in overall data size. Also, this resolves the problem of data flow between the main memory and cache. Data storage model Normally, the data storage in databases is in a table format. A table is a data structure in which the information is organized. It can store data in rows and columns and can be used to display data in a structured format. Databases normally comprise several tables, and each table has a specific purpose. [8]
  • 27. An Overview of SAP HANA, S/4HANA, and Migration Chapter 1 The options available are as follows: Row-based layout: Stores data elements in a row Columnar layout: Stores data elements in a columnar format Let's take a look at a very simple example to understand this concept: The preceding table is a simple example of data. Now, we will check out what it looks like in a row-based layout: Also, this is what it looks like in a columnar data format: Both methods of storage have their own pros and cons, and SAP HANA supports both the models. However, performance is enhanced when the columnar model is used, as it enables an effective projection by accessing only relevant columns, which reduces the number of accesses to memory. Also, it allows for an effective compression, especially when column sorting is done. Data compression The technique that is used to reduce the count of bits for data in memory is known as data compression. In this technique, the overall memory is reduced and, hence, the cost is reduced, and all of the data reading is done on the compressed set. Many compression methods, such as run-length encoding, cannot be applied in the row-based layout. This is a very technical topic, so we will not go into too much detail here, but, for now, it is important that we understand the storage scenarios and the meaning of compression. [9]
  • 28. An Overview of SAP HANA, S/4HANA, and Migration Chapter 1 Delta storage Normally, data insertion to compressed data is really slow. This problem is solved with SAP HANA, as it brings the concept of delta storage with it. In this structure, the storage of a columnar table includes the main storage and delta storage. Any write operation, such as insert, update, or delete, is done in delta storage, which is, again, a columnar storage, and any addition is appended to the end of the structure: This is what the architecture looks like; it simplifies the database structure and results in faster processing: [10]
  • 29. An Overview of SAP HANA, S/4HANA, and Migration Chapter 1 Data aging In today's world, we are just playing with data. Businesses' data volumes are immense, and their data is confidential and important in terms of business continuity as well as growth and compliances. For example, companies have to detail their financial data for 7 years to 10 years due to IRS audits. The size of the data is growing day by day, and much effort, as well as money, is spent on the maintenance of that data. This is what the data view looks like: For sure, we need the actual and latest data to run the business, which is about 10%, and, from time to time, we might need access to 30% of the data. However, what about the remaining 60% data? Have you accessed the documents of the projects that you worked on 7 years ago? Do you frequently see photos of your holidays that you had taken around 8-10 years ago? The typical answer is no. The same applies to organizations; they don't really access that 60% of data. So, what are we doing with that data? What is our strategy? In rare cases, we will need to access the old data as and when we are showing the order history to a customer or when we are running comparisons over decades, or during an audit. In the new concept of data aging, the data that we access regularly, that is, the latest actual data, is known as hot and the rest, the 60%, is known as cold. The temperature of the data decides the strategy to store the data. The goal of aging is to reduce the main memory footprint and to speed up database queries by only keeping operationally relevant (hot) data in the main memory. In SAP HANA, aging is different from archiving in the sense that cold data is still kept within the SAP HANA database and remains accessible via SQL in the very same table as the hot data. [11]
  • 30. An Overview of SAP HANA, S/4HANA, and Migration Chapter 1 Regular daily queries are on hot data, and the cold data is generally partitioned, as shown in the following figure: The configuration has to be defined once in the setup phase, and, using this solution, data can be restructured by a background task and automatically pushed out of memory if needed. As an example of partitioning, all entries in the following table with entries 00000000 are in hot memory: Table name Partition ID Range FAGLFLEXT 1 00000000 FAGLFLEXT 2 00010101 - 20120101 FAGLFLEXT 3 20120101 - 20130101 FAGLFLEXT 4 20130101 - 20140101 FAGLFLEXT 5 20140101 - 20150101 [12]
  • 31. An Overview of SAP HANA, S/4HANA, and Migration Chapter 1 SAP HANA Live To gain the market and advantage in any competition, it is important for the organization to have analytics of their own data. Every decision is driven based on data, but that decision can be more efficient if the analytics of the data is as accurate as possible. With the emergence of technology, there has been a shift in the data models for decision making. Old data with multiple accesses has been replaced by new real-time data with access to a single source of truth. Complex systems and data can have a multilayered structure, including OLAP and OTLP systems. Before we move ahead, let's understand the following concepts: OLAP: Online analytic processing OLTP: Online transactional processing In traditional databases, transaction processing is completely separate from analytics processing. The key factor to this is the database design of both these systems. However, it results in a complex and redundant data processing. You process the transaction now and, for analytics, the same will be available after a day, which results in a lag for the finance department, especially at the time of closing. SAPS/4HANA is powered by SAP HANA, which combines both OLTP and OLAP processing. Now, the transactional data does not need to be moved to another system for analytics, and they run in the same tables, which results in efficiency and avoids redundancy. SAP HANA Live is an out-of-the-box, preconfigured, and extensible data model. It is an architectural framework that can be used for analytical reporting on the SAP HANA database. It enables businesses to create analytics suites based on a semantic data model that enriches the underlying SAP ERP structures. This data model has the following attributes: Optimized for operational reporting Eliminates data duplication Ready to be consumed Extensible Easy to consume, with true business-like semantics [13]
  • 32. An Overview of SAP HANA, S/4HANA, and Migration Chapter 1 This is what it looks like with and without SAP HANA Live: The SAP HANA Live architecture is shown in the following figure: [14]
  • 33. An Overview of SAP HANA, S/4HANA, and Migration Chapter 1 Introduction to SAP S/4HANA The focus of this chapter will be to understand the overview of SAPS/4HANA—what is S/4HANA, what is so interesting in S/4HANA that customers are investing, what benefits does it provide, and how has SAP planned to make it different from its own ERP? Let's begin deep diving to understand the concept. Understanding SAP S/4HANA SAPS/4HANA is an innovation that is built on native SAP HANA and is a simplified approach of the existing SAP ERP. In the original SAP ECC system, the financial side of SAPS/4HANA was completely robust. However, there were duplicates and limitations. SAP was focused on removing those roadblocks. Therefore, with regular feedback from the customers and, of course, with massive change and innovation in the system, the product SAPS/4HANA was built. The story started in 2015 when a product was launched with the name simple finance, and a few projects were started with SAP's commitment to improvement. However, the product was not as successful as was expected. Then, it was revamped as SAPS/4HANA, the final name, and was suffixed by a release number, such as 1503, 1610, and 1709 (YYMM). Until now, no version of the product was complete in terms of innovation and features. SAP is still introducing features to the product in order to make it simple and more usable for customers. This massive innovation from SAP occurred after a long time. Until now, it involved only enhancements coming to ECC. The following figure explains that the story line has spanned for more than 10 years: [15]
  • 34. An Overview of SAP HANA, S/4HANA, and Migration Chapter 1 SAPS/4HANA is designed to run only on the SAP HANA database, and it already has all the features of this powerful in-memory design from SAP. It can be deployed on-premise, on the cloud, or on hybrid cloud as needed, and it's very flexible. The data model in SAP S/4HANA has been simplified. It has resulted in the removal of several tables. This has reduced the data footprint to a large extent and also simplifies the system design, usability, and extensibility. This has resulted in making the financial management simpler and faster. With the use of Fiori, end users receive personalized information with a detailed level of data, taking them to the line item details of the transactions. Data analytics is a method that varies across organizations. Business intelligence products that cover various ways to represent data are also available. The products include renewed managerial roles that specifically target individuals, for example, a financial officer or receivables manager. In addition, SAP delivers renewed transactional roles for the end users, such as the general ledger accountant or the fixed assets accountant: [16]
  • 35. An Overview of SAP HANA, S/4HANA, and Migration Chapter 1 SAPS/4HANA is not a single product; it includes many applications. Customers can begin using the basic components and based on need further applications can be added to the basket. SAPS/4HANA Enterprise Management is an ideal place to start. It is known as the simplified core and is regarded as a replacement for SAP ERP. It provides support for all core business processes. SAPS/4HANA Enterprise Management can be easily integrated with SAPS/4HANA Line-of-Business (LoB) solutions. These options can be added at any time and provide best-in-class LoB solutions and connections to SAP business networks. Customers can choose LoB solutions that are most useful for their businesses. The LoB finance solutions integrate the following to business networks, as follows: SAP SuccessFactors: SAPS/4HANA integration and the SAP SuccessFactors Employee Central Payroll rapid deployment solution (function module web service that covers finalized, COBL checks and ongoing cost center replications not yet started) SAP Ariba: Ariba Invoice Management (buyer side) and payment advice and cancel payment advice Ariba Discount Management (buyer side) and payment proposal and PayMeNow Concur: SAPS/4HANA implementation with Concur and reuse of SAP ERP add-on (delivery by Concur product) SAP Fieldglass: SAPS/4HANA integration planned in a joint project with SAP Fieldglass, LOB PROC, and SAP Master Data Governance (FIN contributes cost center and internal order replication) The Universal Journal The Universal Journal is all about next-generation accounting, where a single table is responsible for storing data in place of several tables. This is one of the major simplifications resulting from the evolution of SAPS/4HANA. It makes the process transparent, reconciliation free, and allows for seamless navigation and a deeper insight of an organization's financial data. From a technical aspect, it's a redundancy-free storage of financial data, consisting mainly of a general ledger, asset accounting, controlling, and a material ledger. [17]
  • 36. An Overview of SAP HANA, S/4HANA, and Migration Chapter 1 The General Ledger was redesigned in 2004. It added many advantages, such as extensibility, parallel views, document splitting, and multiledger functionality, but its main aim was to replace classic ledgers. However, it failed to provide flexibility to SAP customers, as they were looking for improvements such as reconciliation among various subledgers, such as AP, AR, G/L, AA, and CO. The situation used to look like this: In the preceding figure, you will notice that there is disharmony between the financial components, such as the depreciation areas in Asset Accounting, G/L in the General Ledger, and the cost element in Controlling. All these resulted in manual work for the customers in reconciling all these items with each other, wherever necessary. Now, SAP S/4HANA has addressed this issue in the form of the Universal Journal. Several tables are obsolete (however, SAPS/4HANA provides compatibility views to provide access to historic data). The Universal Journal has all the columns that are needed by the business and each component, too. [18]
  • 37. An Overview of SAP HANA, S/4HANA, and Migration Chapter 1 The new architecture combines all the components that we just discussed, and in place of the reconciliation view (the preceding figure), we now have the integrated view: Additionally, the Universal Journal integrated the coding block extension (structure CI_COBL), allowing the input in customer fields. There is an increasing demand from most global companies for a holistic view of multiple accounting standards throughout the whole ERP system. Working with parallel ledgers supports this requirement already in G/L, as follows: The new journal entry consists of a header (table BKPF) and their respective items (table ACDOCA) The new SAP HANA-based reporting of all the components (G/L, AA, ML, and CO) can access the customer fields The ACDOCA table contains all the fields needed for G/L, CO, AA, ML, and PA The list of tables that were part of this structure and are merged with the ACDOCA table now includes the following: Index tables removed: BSIS, BSAS, BSID, BSAD, BSIK, BSAK, BSIM, FAGLBSIS, and FAGLBSAS [19]
  • 38. An Overview of SAP HANA, S/4HANA, and Migration Chapter 1 Aggregate tables removed: GLT0, GLT3, FAGLFEXT, KNC1, LFC1, KNC3, KFC3, COSS, and COSIP Tables removed: FAGLFLEXA, COEP, ANEP, ANEA, ANLC, ANLP, and MLIT Material Ledger: Contents of MLIT, MLPP, MLPPF, MLCR, MLCRF, MLCD, CKMI1, and BSIM are now stored in ACDOCA; MLHD data is stored in BKPF When we talk about the external postings (that is, coming from other systems to SAP S/4HANA), the view looks like the one shown in the following figure: Compatibility views for historic data For the existing SAP customers, all the programs and custom developments will work successfully on the existing tables. Now, what will happen to those customizations? Every customer and consulting partner was worried about this. Customers may not want to spend on the redevelopment of everything, and, of course, they won't want their business and reporting to be affected due to the introduction of S/4HANA to their organization. A very simple answer to this problem is to use compatibility views. Compatibility views are named V_TABLE. For example, the compatibility view of the COEP table is V_COEP. [20]
  • 39. An Overview of SAP HANA, S/4HANA, and Migration Chapter 1 The read operations in the ABAP code are redirected toward a view (V_COEP) via a specific setting in the data dictionary definition of table COEP. This view then no longer reads the physical the COEP table, but the new Universal Journal; it now maps the data back to the structure of COEP. From the perspective of the program code, there has not been any change: The main focus of SAPS/4HANA development is to provide a product that does not disrupt the business processes and business as usual. Merging G/L accounts and cost elements Before the Universal Journal, SAP had G/L accounts in G/L and also had (secondary) cost elements in CO mapped to those G/L accounts. This is because the user always had to trace the mapping rules backward. In the SAP HANA architecture, with the Universal Journal, only one field is used to store both the G/L account and cost element. The logic is that the G/L can be assumed to be a special type to make it a cost element. The new account is maintained on one screen (as shown in the following screenshot). [21]
  • 40. An Overview of SAP HANA, S/4HANA, and Migration Chapter 1 The following screenshot shows the creation of a new G/L account of the Secondary Costs type: Logistics changes Apart from massive changes in finance, S/4HANA also came up with several changes in the logistics area. Let's look at those changes. Changes to material master data Material master basic transaction code still remains the same as in ECC: MM01 to create MM02 to change MM03 to display However, the length of the material number has changed along with some field-level changes. New fields have been added and a few fields have been removed. This big change is the length of the Material number field. This was in heavy demand by customers due to various industry requirements to have a lengthy material number. It was of 18 characters in SAP ECC, and now it's 40 in S/4HANA. It was a big change, almost three times the previous length. Let's look at an example from both systems to see what the Material number looks like. [22]
  • 41. An Overview of SAP HANA, S/4HANA, and Migration Chapter 1 The SAP ECC Material number view looks like this: The SAPS/4HANA Material number view looks like this: However, the default SAPS/4HANA system come with 18 characters only, and it needs to be extended based on customer requirements. The following is the path to activate this: SPRO | IMG | Cross-Application Components | General Application Functions | Field Length Extension | Activate Extended Fields Go to new entries and check the following field: After this, the field will look like the one shown in the following screenshot: Another change in the material master is the foreign trade data. This is now a part of SAP GTS and is not available in S/4HANA. The new material type SERV is now added. As the name implies, it is intended to be used for service. The following are the available views for the material type: Basic data Sales view Purchasing view Accounting [23]
  • 42. An Overview of SAP HANA, S/4HANA, and Migration Chapter 1 Sales activity The Sales Support function (SD-CAS) is no longer supported in S/4 HANA. SAP suggests SAP CRM or SAP Cloud for customers as the recommended solution. SD rebate processing The SD rebate functionality has been replaced by Settlement Management. Hence, the transaction VBO1 is no longer available in S/4 HANA. Data model changes With the introduction of SAPS/4HANA, several changes have been introduced in SAPSD: Pricing: Prices were stored in KONV, but now they will be in PRCD_ELEMENTS Status tables: VBUK and VBUP have been removed Index tables removed from the system: VAKPA, VAPMA, VLKPA, VLPMA, and VRKPA Tables removed: VBOX, S066, and S067 Credit management Credit management has been discontinued from S/4 HANA, and the recommended solution is FSCM. Thus, transactions such as F.28, F.31, F.32, and F.33 are no longer supported. The following are the new transactions in these areas: New transactionOld transactionPurpose UKM_BP FD32 Maintenance of credit limits UKM_MY_DCDS VKM1 Releasing of blocked sales orders due to credit Introduction to SAP Fiori In this section, we will cover the key concepts and aspects of SAP Fiori. We will also deep dive into some of the important areas. Let's begin with the question that anyone starting with the technology may ask—what is SAP Fiori? [24]
  • 43. An Overview of SAP HANA, S/4HANA, and Migration Chapter 1 What is SAP Fiori? People are drawn to things of beauty. Fiori is an Italian word that means flower. To view the Fiori logo, visit the official Fiori website (https://sapfioriui.com/). SAP Fiori is the user interface (an actually beautiful user interface) for SAP applications. SAP aims to have this experience for all its solutions over a period of time. Fiori can give the best possible experience when interacting with the SAP Business Suite. When implemented with SAP HANA, the solution integrates with the existing IT landscape. Additionally, SAP Fiori results in access to the same data information via various modes and sources: SAP Fiori is designed with the idea that your work environment needs to be available to you wherever you are—on your desktop, tablet, or phone. [25 ]
  • 44. An Overview of SAP HANA, S/4HANA, and Migration Chapter 1 Key pillars of the Fiori experience The following diagram represents the key pillars of Fiori: The following are the key pillars of the Fiori experience: Role-based: Users have access to the applications where they perform their tasks, and the applications are specific to these tasks. Responsive: The application interface is responsive; it adapts to the size and device used by the users to access it. Simple: The scope of the application is simple. There is one user, one use case, and up to three screens for each application. Coherent: The applications are developed with a coherent structure. The apps all speak the same language, and can be implemented in multiple landscapes and environments. [26 ]
  • 45. An Overview of SAP HANA, S/4HANA, and Migration Chapter 1 Instant value: A low adoption barrier provides instant value, both on the IT system side and on the user-adoption side: [27 ]
  • 46. An Overview of SAP HANA, S/4HANA, and Migration Chapter 1 Type of Fiori apps Fiori apps are of three types, as shown in the following screenshot: Let's explain the three types of Fiori apps in detail: Transactional apps: Offer task-based access to tasks such as change, create, display (documents and master records), or entire processes with guided navigation. Analytical apps: Provide insight to action. They give you a visual overview of complex topics for monitoring or tracking purposes. Fact sheets: Allow you to search and explore your data. They provide a 360 degree view on essential information about an object and contextual navigation between related objects. [28 ]
  • 47. An Overview of SAP HANA, S/4HANA, and Migration Chapter 1 SAP Fiori Launchpad The SAP Fiori Launchpad is like saving favorites in your internet browser. It is a personal collection of apps. It functions like a bucket that displays and groups the tiles that are required for the user's needs. It serves as the home page, KPI dashboard, and role-specific entry point into the suite of financial applications. The Launchpad also offers active tiles through which the user can receive updated information directly from the front page without opening the application: The SAP Fiori Launchpad offers themes and can be personalized to meet brand requirements. It offers a stable URL for bookmarking and sharing. It is browser-based and, therefore, works with multiple devices and browsers. Within each application, the user can interact with the SAP Fiori app. This app covers lots of daily work tasks, along with the enterprise-level tasks. However, each pattern and control is optimized to address a specific type of task in a simple, easy-to-use manner. They are flexible enough to be combined and work synergistically. The consistent use of patterns and controls ensures a coherent user experience and gives users a sense of familiarity across SAP Fiori apps. [29]
  • 48. An Overview of SAP HANA, S/4HANA, and Migration Chapter 1 The following are some personalization options: Adding applications Removing applications Modifying applications As an example, if the user is an accounts manager who is interested in the China market, the user can create an application to take them directly to the accounting results of the Chinese market. They can arrive at the financial results directly with one click from the SAP Fiori Launchpad home page. The following screenshot is an example of the design pattern: An example of the process flow is shown in the following screenshot: [30 ]
  • 49. An Overview of SAP HANA, S/4HANA, and Migration Chapter 1 An example of a chart is shown in the following screenshot: In the SAP Fiori theme designer, custom themes can be designed for the Launchpad. For example, the following tasks can be performed: Changing the font color Changing the background color Adding images Assigning a new theme to users [31]
  • 50. An Overview of SAP HANA, S/4HANA, and Migration Chapter 1 SAP Fiori architecture The following figure shows the latest 1709 architecture of SAP Fiori: SAP Fiori frontend server 4.0 is an add-on product version of SAP NetWeaver AS ABAP and delivers the frontend software components required to run Fiori 2.0 applications for S/4HANA 1709: Release 1511 1610 1709 SAP NetWeaver (recommended) 7.50 7.51 7.52 SAP Fiori 1.0 2.0 2.0 SAP Fiori Front End Server 2.0 3.0 4.0 [32]
  • 51. An Overview of SAP HANA, S/4HANA, and Migration Chapter 1 SAP Fiori business benefits The following are some business benefits that SAP Fiori can offer to the customers over the traditional user interface: Reduce IT average incident resolution time Reduce mobile app development effort Avoid costs associated with data errors Reduction of time to perform employee activities S/4HANA migration overview In this chapter, we will briefly discuss the migration process. Although the detailed migration process will be discussed in the next chapter, it is important to understand migration and some of its related key concepts. Introduction to migration Migration to SAPS/4HANA is a fairly simple process, but it is important to understand the starting point of the customer. It can be for an existing SAP ECC customer or for a new SAP customer and the entire process is driven by the answer to the questions, such as from where do we want to start or where does the customer stand presently? New SAP customers can use classic tools to migrate from legacy systems to SAPS/4HANA. The migration process can be started at any period for the SAP ECC customer, and the customer can be on the classic or new G/L when they start to migrate. There are no SAP services that are needed to migrate, as there was in migration from the classic G/L to new G/L migration. [33]
  • 52. An Overview of SAP HANA, S/4HANA, and Migration Chapter 1 Each of the following can be the starting point for a customer: Concept of business partners Business partners can be any person or organization with an interest in your business operations. Business partners can be customers, vendors, banks, shareholders, and so on. Until now, in SAP, there were several redundant objects that have now been replaced by business partners in S/4HANA. This reduces the data volume and the number of tables. For SAP business partners, this is not new, as it was already being used in the SAP modules in various ways: SAP Collections Management (FSCM-COL) SAP Credit Management (FSCM-CR) SAP Treasury and Risk Management (TRM) Loans Management (FS-CML) Customer Relation Management (CRM) Supply Chain management (SCM) Supplier Relationship Management (SRM) [34]
  • 53. An Overview of SAP HANA, S/4HANA, and Migration Chapter 1 With the emergence of SAPS/4HANA, the major impacted area with reference to business partners are customers and vendors. Normally, the volume of this master data is huge in every organization, and most of the time, one party shares both the relationships. The BP in SAPS/4 HANA is capable of managing master data centrally for business partners, customers, and vendors. BP is the only transaction needed to create, edit, and display master data. The following transaction codes are replaced by BP: In the new environment, whenever the customer or vendor is created, the business partner is always created automatically, and it provides the following benefits to the organization: General data section of the master data is shared within different BP roles, and it results in lowering the data volume Due to its versatile nature, any business partner is capable of performing multiple roles, such as customer and vendor, which makes the BP reporting more easy CVI is the process of synchronization between the business partner object and is needed when migrating from SAP ECC to SAPS/4HANA The business partner master data process is as follows: 1. Set up the general data. Once this is updated, table BUT000 will be updated: [35]
  • 54. An Overview of SAP HANA, S/4HANA, and Migration Chapter 1 2. Set up the FI vendor: Role FLVN00 enables the posting of a direct vendor invoice and role FLVN01 enables the creation of purchasing data, which is a must to create a purchase order: After this process, the table LFM1 is updated. [36]
  • 55. An Overview of SAP HANA, S/4HANA, and Migration Chapter 1 3. Set up a customer: Table KNA1 is updated once the customer is created, and a direct FI posting via FB70 can be executed. Role FLCU01 is needed if a sales order is needed to be created for the customer: [37]
  • 56. An Overview of SAP HANA, S/4HANA, and Migration Chapter 1 Customer vendor integration In this section, we will discuss the process of customer vendor integration, which is a mandate before we migrate to S/4HANA from SAP ECC. Before we get into the process, let's understand the basics first: Customer: A customer is a business partner to whom goods and services are sold and/or delivered. A business partner can be a customer and a vendor at the same time, if, for example, your customer also supplies goods to you. A customer master holds information on the customer, such as their name, address, bank details, tax details, delivery, and billing preferences. This customer information is used and stored in transactions, such as sales orders, deliveries, and invoices. Some customer information is specific to a company (known as company code) or sales unit (known as sales area) within your organization. Vendor: A vendor (or supplier) is a business partner that delivers and sells goods and services to your organization. A business partner can be a vendor and a customer at the same time, if, for example, your vendor also buys goods from you. A vendor master holds information on the vendor, such as their name, address, bank details, tax details, and billing preferences. This vendor information is used and stored in transactions, such as purchase orders, goods receipts, and vendor invoices. Some vendor information is specific to a company (known as company code) or purchasing unit (known as purchasing organization) within your organization. Let's talk about Customer Vendor Integration (CVI). For the sake of simplicity, we will be using the term CVI going forward. [38]
  • 57. An Overview of SAP HANA, S/4HANA, and Migration Chapter 1 What is CVI? CVI is a process supported by the standard SAP Master Data Synchronization Cockpit tool. It is used to synchronize customer and vendor master data objects with SAP business partner objects within SAP. With CVI in place, all the customers and vendors are assigned a BP number. The concept is illustrated in the following figure: [39]
  • 58. An Overview of SAP HANA, S/4HANA, and Migration Chapter 1 Business impact of CVI To ensure a successful upgrade, all customers, vendors, and all contacts that relate to customers or vendors must be converted to a business partner, including customers, vendors, and assigned contacts with the deletion flag. CVI requires high-quality master data to be converted. The quality checks cannot be switched off on the cockpit level. This way, the customer is forced to run a high-quality master data project for the customer and vendor master. If not started in advance, this can be a serious roadblock for the conversion. Before we execute the CVI conversion, SAP recommends to archive the customers/vendors with the deletion flag. It is recommended (but not mandatory) that the business partner ID and customer ID/vendor ID are the same. Note that in case of overlapping number ranges for customers and vendors in the start system, an additional number range alignment is required. The user interface for SAPS/4HANA to create and maintain customer and vendor master data is the transaction BP. The specific transaction code to maintain customers/vendors (as in the SAP Business Suite) is not available within SAPS/4HANA. The BP transaction is the single point of entry to create, edit, and display master data for business partners, customers, and vendors. CVI ensures that customer and vendor master data tables are updated automatically after a BP is created/changed. All KNxx and LFxx customer/vendor master data tables are still populated as previously in the SAP Business Suite. In SAPS/4HANA, the BP transaction covers almost all customer/vendor master data fields. One exception is that the CVI of the vendor text in the BP master will be covered in SAP S/4HANA 1610 SPS01, that is, 02/2017. Our customer might not be able to maintain all the data needed using a single BP transaction in the SAP Business Suite. There are no plans to implement additional fields here since the xD0x- and xK0x-transactions continue to exist. CVI conversion scenarios Based on the SAPS/4HANA implementation scenario, new install or system conversion, different CVI process scenarios must be considered. For a new install scenario, a central configuration for business partners, including CVI setup and test steps, is required. [40]
  • 59. An Overview of SAP HANA, S/4HANA, and Migration Chapter 1 For a system conversion scenario, several preparation steps are necessary to first convert the customer/vendor data into an SAP business partner: Summary As we have just started with our learning journey, we completed the introduction to our topic. It is important to understand that SAPS/4HANA can only be implemented on a SAP HANA database and that it provides several benefits to organizations, especially to the finance community; several tables are obsolete, and the Universal Journal was introduced. Also, the data aging concept saves money for the customers in archiving and maintaining data from the past. We still have a lot to go through. Now, we will focus on the technical aspect of migration to SAP HANA and take a look at the deployment options available. Then, we will move on to discuss in detail each of the areas that have changed in S/4HANA. [41]
  • 60. An Overview of SAP HANA, S/4HANA, and Migration Chapter 1 Questions 1. What is SAP HANA? 2. What is SAPS/4HANA? 3. What is business partner functionality in SAPS/4HANA? 4. When is CVI needed? 5. What is the Universal Journal? 6. What will be the new length of the material number in SAPS/4HANA and is it defaulted by SAP? 7. What is the difference between OLAP and OLTP processing? 8. What is SAP Fiori? [42]
  • 61. 2 Migration to SAP HANA – Tools and the Project We have just completed our introduction to SAP HANA and S/4HANA. Before we start with the configurations and the functionalities of the new system or the delta changes, it is important to understand the basics of HANA migration. It may be a little technical, but I will try to keep things as simple and interesting as possible. In this chapter, we will look into migration. Technical requirements For this chapter, the following is required: SAPS/4HANA system System migration We will learn about the differences between a homogeneous and a heterogeneous system copy and the consequences of both the system copies; we will also discuss the migration check service. The two types of system copies that can be performed are as follows: SAP system copy without changing the operating system or the database SAP system copy while changing the operating system or the database
  • 62. Migration to SAP HANA – Tools and the Project Chapter 2 The following are the proposed solutions for these two system copies: Backup/restore Third-party tools for data unload/load SAP system copy tools SAP homogeneous system copy SAP homogeneous system copy is a way to move or copy an SAP system to a new environment. In a homogeneous system copy, the source and target system use the same operating system (OS) and database (DB) system. The hardware architecture remains the same, or is a certified successor, where SAP supports homogeneous copies as well. The operating and database systems for a homogeneous system copy are combinations of OS and DB versions released by SAP. In some cases, an OS or a DB upgrade may be necessary on the source system before a system copy can be performed. A homogeneous system copy can be executed by a customer. There is no need for a specific certification. For the target system, the same OS can mean an SAP-certified successor, such as Windows 2008 or Windows 2012. Depending on the method used for executing the homogeneous system copy, it may be necessary to upgrade the DB or the OS of the source system first. On older SAP system releases, an upgrade may be necessary. This can be the case if the target platform requires a DB or OS version that is not compatible with the SAP system version that is to be copied. New hardware on the target system may be supported by the latest OS and DB versions only. Reasons for a homogeneous system copy The following are some of the reasons for performing a homogeneous system copy: System move (hardware change) MCOD configurations involving system moves Setting up of additional SAP systems for development, quality assurance and training, or production Change of the SAPSID for company-related reasons or the use of SAP-reserved SIDs [44]
  • 63. Migration to SAP HANA – Tools and the Project Chapter 2 SAP heterogeneous system copy In a heterogeneous system copy, the source and target systems use a different OS or DB. In many cases, a change of the hardware architecture is also involved. The operating and database systems for a heterogeneous system copy are SAP-released combinations of OS and DB versions. A heterogeneous system copy must be executed by a person who is certified for OS/DB migrations, except when using the DB migration option on the software update manager (database migration option) (SUM (DMO)), which takes care of the necessary tasks automatically. Depending on the method used for executing the heterogeneous system copy, it may be necessary to upgrade the DB or the OS of the source system first. Older SAP system releases may require an update. You may want to perform a heterogeneous system copy when a DB or OS changes for one or more of the following reasons: Hardware enhancements Performance improvements Availability of new technologies Administrative efficiency Cost reduction Guarantee against hardware or software becoming obsolete Standardization through a group-wide platform strategy System copy consequences and decision table The following are some of the negative consequences of a system copy: Missing or corrupted data (worst case) Increased support requirements for the SAP Hotline Poor performance User dissatisfaction [45]
  • 64. Migration to SAP HANA – Tools and the Project Chapter 2 Key terms used in this process are as follows: The type of system copy can be decided based on the following table: Migration check service The SAP OS/DB migration check has two service sessions: OS/DB migration check analysis OS/DB migration verification session [46]
  • 65. Migration to SAP HANA – Tools and the Project Chapter 2 Benefits of migration check service Some benefits of the migration check service are as follows: Independent of third-party standalone solutions Standardized procedures for all migrations Avoidance of planning errors through a defined migration procedure and inspection of the project schedule by SAP Parameter recommendations for the target system through SAP OS/DB migration check with special regard to OS or DB change Efficient project implementation through cooperation with experienced migration partners System copy method The following are the copy methods based on DB: Database-specific copy method for Java The database-specific system copy methods for Java systems replace the JLOAD export/import part, but still require SAPinst to run on the source and target systems. SAPinst collects various system information on the source, which is required to adjust the target system to make it run on the target system platform. [47]
  • 66. Migration to SAP HANA – Tools and the Project Chapter 2 SAP migration tools The key objective of this section is to understand how to identify the relevant tools required to perform the migration. ABAP OS/DB migration Existing systems running with Advanced Business Application Programming (ABAP) need to be migrated. ABAPDDIC export with R3LDCTL: Creates table and index structures files (*.STR) Creates the view structure file (SAPVIEW.STR) Supports CDS views and user-defined database functions Supports declustering Contains knowledge about specific tables that are built in and relate to the SAP release Creates database-specific DDL command templates (DDL<DBS>.TPL) R3LDCTL reads the ABAP dictionary to extract the database-independent table and index structures and writes them into *.STR files. Every version of R3LDCTL contains release specific, built-in knowledge about the table and index structures of specific SAP internal tables, which cannot be retrieved from the ABAP dictionary. These structures are added automatically (for example, the SAP NAMETAB tables, DDNTT and DDNTF). R3LDCTL creates the DDL<DBS>.TPL and DDL<DBS>_LRG.TPL files for SAP-supported databases. The DDL<DBS>_LRG.TPL files are mainly used to support unsorted exports. R3LDCTL writes the structure definition of cluster tables into the *.STR files when called with the respective decluster option. DB object size calculation with R3SZCHK Computes sizes of tables and indexes and stores them into extent files (*.EXT) Limits calculation of object extent sizes to 1,700 MB (1,782,579,200 bytes) Creates target database size file (DBSIZE.XML) [48]
  • 67. Migration to SAP HANA – Tools and the Project Chapter 2 R3SZCHK generates the target database size file, DBSIZE.XML, for SAPinst. The extent sizes written into *.EXT files will never exceed 1,700 MB (1,782,579,200 bytes). Nevertheless, the DBSIZE.XML file is calculated from the original table and index sizes. The size computations are based on assumptions and are limited in their accuracy. The DDLOADD table is used to store the calculated extent sizes before writing them into *.EXT files. ABAP data export/import with R3LOAD The following are the characteristics for ABAP exports and imports: Exports and imports ABAP database objects Writes a platform-independent data dump format Provides efficient data compression Ensures data dump consistency by check sums Checks R3LOAD control files, syntax at invocation Supports restart after exporting or importing errors Converts data to unicode Supports table splitting Supports CDS views and user-defined database functions Supports declustering during exports or imports The following are the characteristics for SMIGR_CREATE_DDL: The SMIGR_CREATE_DDL report runs on the source system Generates <TABART>.SQL files containing DDL statements to recreate nonstandard ABAP database objects on the target system (mainly BW objects) Mandatory for all ABAP systems, not only for BW or SCM systems [49]
  • 68. Migration to SAP HANA – Tools and the Project Chapter 2 The SMIGR_CREATE_DDL report generates DDL statements for nonstandard database objects and writes them into the <TABART>.SQL files. The SQL statements are specific to the target database type, which was applied to SMIGR_CREATE_DDL. The SQL files are used by R3LOAD to create the nonstandard DB objects in the target database, bypassing the information in the <PACKAGE>.STR files. Nonstandard objects use DB-specific features and storage parameters, which are not part of the ABAP dictionary (mainly BW objects): The SMIGR_CREATE_DDL report is executed shortly before the system is stopped for the export. SAPinst is called to perform all required export steps. Depending on the database and the database type, updated statistics might be required to support the R3SZCHK size calculation. SAPinst can skip the updating statistics in most versions: [50]
  • 69. Migration to SAP HANA – Tools and the Project Chapter 2 SAPinst automatically creates the shown directory structure on the named dump filesystem and generates a LABEL.ASC file. During the export procedure, various files are placed in the specified directory structures. The *.STR, *.TOC, *.WHR, and the dump files are stored in the .../DATA folder. The *.WHR exists if table splitting is used. The DDL<DBS>.TPL files are stored in the .../DB folder, and all *.EXT files and the DBSIZE.XML file are stored in the corresponding .../DB/<DBS> database subdirectory. The SQLFiles.LST and <TABART>.SQL files exist only if they are created by the SMIGR_CREATE_DDL report. SAPinst copies them into the .../DB and the respective .../DB/<DBS> subdirectory. The SQLFiles.LST file is empty (except for a timestamp) if no <TABART>.SQL files were created. [51]
  • 70. Migration to SAP HANA – Tools and the Project Chapter 2 JAVA OS/DB migration The following are the characteristics of JLOAD Data: Exports and imports Java DB objects Writes a platform-independent data dump format Provides efficient data compression Provides data dump consistency by check sums Supports restart after export or import errors Supports table splitting The following are the characteristics of a JLOAD job file creation using JPKGCTL: Creates export and import job files for JLOAD Combines table packaging and table splitting features Separates metadata and data into different job files Java target DB size calculation with JSIZECHECK: Creates the target database DBSIZE.XML based on the DB size of the source DB system Requires no special DB statistics Has a short execution time Key points to be noted: JSIZECHECK is normally called upon to get the DBSIZE.XML file created for all the required target databases. JPKGCTL helps in distributing the relevant Java tables to package files and can also optionally split tables. JMIGMON calls JLOAD to export the Java metadata and table data. For applications that store their persistent data in the filesystem, SAPinst collects the files into SAPCAR archives. The SDM is called to put its filesystem components, including SDM repository, into the SDMKIT.JAR file. [52]
  • 71. Migration to SAP HANA – Tools and the Project Chapter 2 System copies ‒ import and export In this section, we will learn how to describe the software logistics toolset and control the export and import processes of system copies. Software logistics toolset The software logistics toolset provides a product-independent delivery channel for software logistics tools and includes the following channels: System maintenance System provisioning Frontend installation Change control LM automation Software provisioning manager It provides the latest SAPinst version with software-provisioning services for several products and releases for all platforms and includes the following topics: System installation System copy and migration System uninstallation Dual stack split System renaming [53]
  • 72. Migration to SAP HANA – Tools and the Project Chapter 2 Target database size The filename for the target database size is DBSIZE.XML. It is created by: ABAP: R3SZCHK Java: JSIZECHECK Its features are as follows: The DBSIZE.XML content is database-specific SAPinst requires the DBSIZE.XML file to create a database The DBSIZE.XML file can be generated on the source system upfront of a system copy to implement a parallel export/import Migration project overview Now let's take a look at how the migration project can be planned. [54]
  • 73. Migration to SAP HANA – Tools and the Project Chapter 2 A sample schedule So, this is how the steps and the plan should look: [ 55]
  • 74. Migration to SAP HANA – Tools and the Project Chapter 2 The standard OS/DB migration procedure also applies to heterogeneous system copies of ABAP systems in introductory phase projects or pilot projects. Prepare for the SAP OS/DB Migration Check Analysis Session as early as possible. Run this process on the productive SAP system (the source system) before the final migration. Migration test runs are iterative processes that are used to find the optimal configuration for the target system. In some cases, one test run is sufficient, but sometimes several repeated runs may be required. The same project procedure applies to both the OS migration and DB migration. Test and final migrations are mandatory only for productive SAP systems. Most other SAP systems, such as development, test, or quality assurance systems, are less downtime critical. If the first test run for those systems shows positive results, an additional migration run (final migration) is not necessary: Migrate each productive system twice—once for test migration and once for the final migration. Development, test, and quality assurance systems are less critical and can often be migrated in a single step. In many cases, the migration of a quality assurance system is not necessary because it can be copied from the migration production system: [56 ]
  • 75. Migration to SAP HANA – Tools and the Project Chapter 2 SAP OS/DB migration check analysis Perform an SAP OS/DB Migration Check analysis as soon as possible after a Migration Check has been ordered and the migration project has been approved by SAP: Check the production system with regard to the migration. Check the SAP system and database parameters. Analyze performance in the SAP system and the database. Make recommendations for the migration target system. The SAP OS/DB Migration Check Analysis Session is focused on the special aspects involved in the platform or database change. It is performed on the productive SAP system with regard to the target migration system environment. The results of the Migration Check are then recorded. 6. ABAP- and JAVA-based SAP systems components will be checked. 7. 1. 2. 3. 4. 5. SAP OS/DB check verification After the final migration, wait four weeks to perform the SAP OS/DB migration check verification. Several weeks are required to collect enough data for a performance analysis. The previous production system should stay available during this time. [57]
  • 76. Migration to SAP HANA – Tools and the Project Chapter 2 Some activities during the wait period can be: Analyze the SAP system and database logs Analyze response times for critical transactions Analyze performance bottlenecks in the SAP system and database Optimize the SAP system and database parameters Check ABAP and JAVA-based SAP systems Required source system information Check all software components to be certain that they can be migrated, especially Java based components. Assess the following criteria in relation to the required source system: Installed SAP products Versions of installed products, for example, enhancement packages, support packages, the kernel version, operating system, and database system Current system landscape Number of systems in a production state System migration order and time schedule Maximum system downtimes for migration purposes System access in cases of hosting environments Ensure that you fully understand the current system landscape. There may be OS/DB related dependencies between certain systems, which must be analyzed first. Determine the systems that require migration, the correct migration sequence, and the time schedule of the customer. In the case of a hosting environment, determine whether the consultant has access to the source system. Required source system ‒ technical information The following is a list of technical checks/information we need for our source system: Current hardware (RAM, CPUs, and disk subsystem) Size of the source databases (compressed/uncompressed) Free local disk space for unloading the database Largest tables and indexes Code pages used [58]
  • 77. Migration to SAP HANA – Tools and the Project Chapter 2 Tables in the ABAP dictionary, but not in the DB or the reverse External files and interfaces Required target system information The following list outlines target system general information: Target system landscape system, for example, cluster Target hardware RAM CPUs Disk subsystem Target operating system version Intended target database version Date of hardware availability or delivery Performing a migration test run The following steps are needed for a migration test run: 1. Install migration tools and prepare the source system.2 2. Export data from the SAP source system. 3. Install the SAP product and the database software on the target system.4 4. Transport/share the data export to the target system.5 5. Create an empty target database.6 6. Load the data export into the target database.7 7. Complete the installation and perform the follow-up tasks.8 8. Configure the test environment. 9. Extensively test the migrated system. Final migration planning The following is a list of activities in the final migration planning process: Create a cut-over plan Perform the migration Perform the follow-up tasks Check the system [59]
  • 78. Migration to SAP HANA – Tools and the Project Chapter 2 Run a backup Start production work Installing and upgrading Please read SAP Note 2157996, which includes an Excel-based installation/upgrade checklist; it will help you verify the important topics for preparing the installation and upgrading it to SAPS/4HANA. The checklist focuses on specific aspects, conditions, and prerequisites for the SAPS/4HANA Finance backend installation. Customers already using SAP HANA should update their SAP HANA database to SAP ERP 6.0 EHP7 or higher versions, and SAP HANA SPS 7 (or higher versions), to allow for migration to SAPS/4HANA Finance. If the required minimum SAP HANA update is planned, check whether it's reflected in the project execution plan. Similarly, verify whether the implementation team has sufficient experience or equivalent support to install, configure, and run an SAP ERP EHP upgrade and installation. The installation of SAP S/4HANA Finance requires SAP ERP 6.0 systems to be updated to EHP7 or higher versions. The stack calculation (using the maintenance optimizer) for the installation of SAP S/4HANA Finance automatically takes this into consideration. Software update manager The software update manager (SUM) helps you perform release upgrades, install enhancement packages, apply service packages, and update single components on SAP NetWeaver. The SUM checks the current version of the system, analyzes the required components, imports the necessary programs and add-ons, and finally installs all the components that are divided into a number of roadmap steps, which, in turn, are further subdivided into a sequence of phases for monitoring purposes. The SUM is the main tool used to convert your system to SAPS/4HANA Finance. If your source system isn't yet running on an SAP HANA database, use the database migration option (DMO) of the SUM to migrate your database to SAP HANA during the conversion. With SUM and DMO, you can run the upgrade to SAP ERP 6.0 EHP 7 or a higher version, the database migration to SAP HANA, and the installation of SAPS/4HANA Finance in a single step. If SAPS/4HANA Finance is installed using the SUM with DMO, and the source database isn't SAP HANA, a specific uncritical error message will occur in the MAIN_SHDRUN/ACT_UPG phase. [60 ]
  • 79. Migration to SAP HANA – Tools and the Project Chapter 2 Summary So, now that we have completed this chapter, we have a fair understanding of migration processes, tools, services, and types, and we can relax. It is imperative that you recap all of these; however, you don't need to remember them by heart. Try the following questions and move on to the next chapter, as now we are gaining a detailed understanding of SAP S/4HANA topics. Questions What is a homogeneous system copy? What is a heterogeneous system copy? What is a Migration Check service? What can be the consequences of a system copy? What are the key SAP migration tools? What do we mean by the export and import of system copies? 1. 2. 3. 4. 5. 6. [61 ]
  • 80. 3 SAP S/4HANA – Deployment Options Now that we have gained an understanding of SAP HANA, migration to HANA, and S/4HANA, we will get into the details of the deployment options. This chapter will focus on the available deployment options and discuss about each of the options available in detail. In this chapter, we will look into the following topics: Cloud deployment On Premise deployment Hybrid deployment What is deployment? With the emerging trend of increased data volume and with more ease of end customers, companies have to deploy various systems in their landscapes, not just one enterprise resource planning (ERP) tool. An ERP is the central location and hosts more of the data, however, for managing customers companies use several CRM systems, for managing employees companies use HR systems; for expenses management and, similarly, for purchases and alot of other business areas, like planning, incident management, vendor management, and more, various systems related to those areas are used. All these systems generally talk to each other from a technical standpoint in order to manage businesses and have continuous dataflows. All these systems are hosted somewhere. This is known as deployment, that is, where the data space is allocated to you. Up until now, most systems have been hosted in the client's own space and clients have been responsible for managing and maintaining those systems.
  • 81. SAPS/4HANA – Deployment Options Chapter 3 With the changing trend, the data storage area has gained new flavors. Let's discuss personal data storage. Initially, we used to store data on floppy disks, then came CDs, and then hard disks were used. Nowadays, people take subscriptions to internet-based drives, which can host as much data as you want; however, they need to pay based on the size of their data, for services such as Google Drive, Dropbox, and SkyDrive. They give some space for free, but you need to pay to get more space based on your needs. Now, the question arises as to what benefit you get or how it is more beneficial than storing data on CDs or disks? The following are the answers to that question: Flexibility of using the data anywhere, anytime, and on several devices You don't need to invest in safeguarding the drive You don't need to have backup of data to prevent the disks from getting damaged You don't need to carry drives physically This trend is known as cloud deployment of personal data. In this chapter, we will discuss the various options available for businesses deployment and how those options can be exercised. SAP S/4HANA deployment options The following are the three major deployment options available to customers while implementing SAPS/4HANA: On Premise On Cloud Hybrid Now, we will take a look at what each model looks like and how it works. First, we will talk about the classic On Premise model. If a company has heavily invested in its data centers and it does not want to discontinue using them so quickly and it's organizational processes are heavily customized along with modifications, then On Premise is the right fit for SAPS/4HANA deployment. It is completely supported by SAP; however, a company has to take the end-to-end responsibility for an On Premise system, especially, in regard to system governance and operations or the implementation of maintenance measures: [63 ]
  • 82. SAPS/4HANA – Deployment Options Chapter 3 Using existing data centers and managing a system on one's own is the classic way to manage IT systems, and to date, it is one of the most used, most preferred, and most successful methods of deployment. If you look at the deployment model of any organization in the past, almost all will have had this model. On Premise can be used by two types of SAP customers: New installations Landscape migration for existing customers A new installation means setting up the SAP system starting from zero, where the customer is not using SAP presently and wants to start with SAP as their ERP system. It's like a Greenfield project. Those customers who are already using SAP can migrate to SAPS/4HANA. We will discuss both these approaches in detail in subsequent chapters. Now, let's discuss the deployment options in detail. SAP S/4HANA On Premise On Premise is the traditional way to manage IT systems, and the customer is responsible for managing the servers, management of the system itself, backup, and more. The core processes of a customer are normally On Premise, whereby they want more flexibility and confidentiality to gain competitive advantage. Customers can customize the system as per their needs, without any limits. [64 ]
  • 83. SAPS/4HANA – Deployment Options Chapter 3 SAPS/4HANA's On Premise edition is very similar to what is used presently. Additonally, SAPS/4HANA also includes the major processes related with finance as well as to the core finance network, such as Ariba and SuccessFactors. SAP S/4HANA on Cloud On Cloud is a new approach toward data management, where the servers, management, and backup are managed by a cloud provider, for example, in Google Drive, we just store the data and use it as needed; however, we are not concerned about the loss of data. SAPS/4HANA's Cloud edition covers specific business scenarios, which includes almost all areas of business such as finance, accounting, controlling, procurement, and sales, along with integration with SAP SuccessFactors, SAP Ariba Network, SAP Hybris, and SAP Fieldglass. The Cloud model considers the following: Data security: Firewalls protect data, whereas intrusion detection systems monitor incoming data and identify potential threats. Data and backup files are exchanged with customers in an encrypted format or transmitted via secure fiber-optic cables. Data privacy: SAP ensures that data protection provisions are complied with. A Cloud customer's data falls under the jurisdiction of their choice. SAP's support services ensure that data protection is also maintained during maintenance operations. Data center locations: Data centers for the SAP HANA Enterprise Cloud are located worldwide. Data centers are either owned and operated by SAP or colocated at partner sites. In the future, SAP will continue to build SAP owned and-operated data centers and pursue partner capacity. For a list of the present data centers of SAP, visit www.sapdatacenter.com for an updated map. This map was taken at the time of writing this book: [65 ]
  • 84. SAPS/4HANA – Deployment Options Chapter 3 The following is the road map by SAP planned for its On Cloud and On Premise innovation cycle for SAPS/4HANA: [66 ]
  • 85. SAPS/4HANA – Deployment Options Chapter 3 Comparing S/4HANA On Premise and On Cloud The following table is a comparison of On Premise and On Cloud models at a glance: Area of comparison S/4HANA On Premise S/4HANA On Cloud Licensing model Traditional Subscription Speed of innovation Customer controls when to innovate/change Customers participate in quarterly innovation Implementation approach Highly individual area focussed approach and is related to Predefined best practices business processes Key scenarios, embedded scenarios, and integrates with other components SAP provides the system and is responsible for maintenance Limited ABAP and in-app extensibility Full ERP scope and integrates Functional scope with other components Customer controls the Infrastructure model deployment and maintenance Custom code Fully traditional ABAP Types of cloud As of now, the cloud market has the following options available: Public cloud Private cloud A public cloud usually hosts data for various companies on the same server. Programmers from various companies can build and execute code without affecting each other's work. SAP offers public cloud services, which are governed by SAP architecture. Customers simply pay for what they use. In the scenario of a private cloud, the system administrators are responsible for managing the cloud, and the cost is generally on the higher side in such cases, as the servers and human resource costs need to be at the customer side, although the servers are dedicated to the organization. Selection of the type of cloud (private or public) is dependent on the organizational needs in terms of data, which include privacy, security, cost, and confidentiality of their data. [67 ]
  • 86. SAPS/4HANA – Deployment Options Chapter 3 An overview of implementation scenarios Now, since we covered the meaning of deployment and the options for deployment for the customer, let's run through the overview of the possible implementation scenarios for the customer. These scenarios will be discussed in detail in a subsequent chapter, but before we move on, it is important to get through the overview of possible scenarios. The following are the three different implementation scenarios regarding how a customer can move to SAPS/4HANA: Scenario A ‒ System Conversion Existing SAP customers who want to move to SAPS/4HANA: This scenario involves existing SAP customers who want to implement SAPS/4HANA. The following are the key steps on the path: Updating to SAP NetWeaver Application Server ABAP 7.5 Migrating the database to SAP HANA (in cases where, the SAP Business Suite system is not yet on SAP HANA) Installation of SAPS/4HANA, On Premise edition Installation of SAP Fiori for SAPS/4HANA, On Premise edition Migration of data from the old data structures to the new simplified data structures Scenario B ‒ Landscape Transformation Existing SAP customers who want to implement a system landscape and move to SAPS/4HANA: This scenario is focused on existing SAP customers who want to change their system landscape to SAPS/4HANA. The following are the steps included: Possibly, a new installation of SAPS/4HANA Possibly, converting a system to SAPS/4HANA Additional migration steps that are based on SAP Landscape Transformation combined with SAP Landscape Optimization services [68 ]
  • 87. SAPS/4HANA – Deployment Options Chapter 3 Scenario C ‒ New Implementation Customers who want to move from non-SAP systems to SAP systems: This is for those customers who are using third-party applications and want to implement SAPS/4HANA. The following are the steps included: Installation of SAP NetWeaver Application Server ABAP 7.5 based on SAP HANA Installation of SAPS/4HANA, On Premise edition Installation of SAP Fiori for SAPS/4HANA, On Premise edition Hybrid model of deployment The hybrid model of deployment option is the most common of all, as customers tend to want to use On Premise systems due to their data security constraints, and they also want to use new applications that are on the cloud as a part of their innovation road maps. This situation is a combination of On Premise and On Cloud deployments, where some of the applications are On Premise, such as SAP ERP, and a few applications are On Cloud, such as SAP Ariba and Concur. With a hybrid approach, customers can leave their existing systems undisturbed in an On Premise environment; it consists of SAP ERP instances of various levels or legacy systems. Adding an SAPS/4HANA instance managed in the SAP HANA Enterprise Cloud enables a customer to adopt finance innovations at their own pace. Summary In this chapter, we discussed all the deployment options—On Premise, cloud, and hybrid models. Customers can choose the model based on their needs however, all of them have some pros and cons. So, now, you are ready to help customers in choosing the right deployment option. Let's move on to the next part of this book, where we will learn about the key changes in each of the functional areas. [69 ]
  • 88. SAPS/4HANA – Deployment Options Chapter 3 Questions What is the meaning of deployment? What are the possible options available to customers for deployment? Explain the features of hybrid model. What is the innovation cycle plan for On Premise, and how is it different from hybrid? 1. 2. 3. 4. [70 ]
  • 89. 4 Impact of S/4HANA on the SAP General Ledger In the preceding chapters, we discussed what S/4HANA is all about. Now, we will get into the details. Be prepared to dive deep into the SAPS/4HANA journey, as we are starting with the functional changes and the configuration of the SAPS/4HANA General Ledger (GL). Before we move on to the configuration, it is important to understand the Universal Journal, the Appendix Ledger, and other such topics. For those who are starting afresh, you also need to focus on the sections related to the Classic GL and New GL, so that you get to know the start and background of this entire story. Technical requirements For this chapter, the following is required: SAPS/4HANA system The history of the General Ledger Before we start with the GL in SAPS/4HANA, let's go back and take a look at what the GL is and how it has evolved over a period of several years. A lot of time, effort, and money has been invested by SAP to reach the latest stage, which has many benefits for the finance organizations of today from a reporting perspective. This is the crux of the General Ledger and the requirements of the CFO. In this section, we will start with the Classic GL and then deal with the New GL. Further, we will drill down the features of the General Ledger in SAPS/4HANA.
  • 90. Impact of S/4HANA on the SAP General Ledger Chapter 4 An overview of the Classic General Ledger The General Ledger contains all the financial transactions of a business. Along with using the Classic General Ledger, businesses also use the Special Ledger and several other components, such as Profit Center Accounting (PCA), in order to meet their legal and business reporting and transactional and auditing requirements. SAP Profit Center Accounting and the Special Ledger are separate applications. So, these modules were never automatically reconciled in the Classic General Ledger. This was one of the major drawbacks of using the Classic GL. However, customers probably did not have any options at that time. This resulted in more activities at the time of month end closing so that the reconciliation with the Classic GL could be performed. This was accomplished by the New GL. Let's discuss the New General Ledger. An overview of the New General Ledger The New GL is the improvised version of the Classic GL. It comes with several advantages, including the following: An extension to the existing functionality available in the Classic GL A new functionality as compared to the Classic GL (we will discuss that in a later section) Features of the New GL The New GL includes the following key features: Parallel accounting Segment reporting Cost of sales accounting Document splitting New tables Integrated FI and CO reporting [72]