In this new era of digital transformation, the market needs forecasting, speed, insights, and intelligence in order to compete. In the middle of this digital transformation, there is SAP S/4 HANA which is an ERP that redefined how businesses operate. Understanding the business ecosystem is very important whether you are an IT professional looking to get SAP S/4 HANA certification or a business leader aiming to optimize business operations. This will be a guide on understanding SAP S/4 HANA, exploring the cloud, and the best practices in implementation.
What is SAP S/4HANA?
The word SAP S/4 HANA stands for SAP Business Suite 4 SAP HANA. The number 4 represents that it is the fourth generation of SAP’s ERP that run on SAP HANA. Moreover, the S before the 4 represents the word simple and it is accomplished through:
- Simple data model
- Processing in real time
- Universal journal (ACDOCA)
Furthermore, here are the details and explanation on each one
Simple data model
The database footprint is reduced significantly because redundant indexes and tables are removed.
Processing in real time
Complex insights and analytics that used to take hours, now take seconds to do. That is because data is now stored on RAM and not traditional disks.
Universal journal (ACDOCA)
The system eliminated the need for reconciliation between modules because it became the source of truth for all data.
What is SAP S/4HANA Cloud
The deployment method is one of the hardest decisions the management faces. Moreover, there is SAP S/4 HANA Cloud which is a SaaS model of the main one and it provides subscription-based approach to the ERP system. There are two types of clouds for SAP S/4 HANA which are:
- SAP S/4 HANA Public cloud
- SAP S/4 HANA Private cloud
What is the difference between public cloud and private cloud
Public cloud
This type of cloud is best for businesses that has standardization approach. Everything in the operations is frequent and automatic, and the system provides the company with the latest AI features to support the business functions.
Private cloud
This type of cloud is made for businesses that needs customization in their operations. Furthermore, it provides flexibility and is managed in a cloud environment.
Why go for SAP S/4HANA Cloud versions
Going for the cloud versions reduces the cost of ownership by eliminating the hardware investments. Also, it has embedded AI that automates daily tasks like sales entries.
What are the SAP S/4HANA modules
The ERP system is a collection of different modules that are made to handle business functions. It has modified in the HANA database to give live insights. Here are the list of modules provides:
- Finance
- Controlling
- Sales
- Materials management
- Production planning
Let’s dive in the details on each module and how they were renovated in the HANA database.
| Module | Description | Key Innovations in S/4HANA |
| Finance | Manages financial accounting and reporting. | Uses the universal journal for a single source of truth. |
| Controlling | Focuses on internal cost accounting. | Fully integrated with FI which means no more reconciliation runs. |
| Sales | Handles the order-to-cash process. | Real-time available-to-promise (ATP) checks. |
| Materials Management | Manages procurement and inventory. | Simplified valuation and real-time inventory tracking. |
| Production Planning | Covers manufacturing and capacity planning. | MRP Live allows planning runs to happen multiple times a day. |
What are the compatibility views in SAP S/4HANA?
Businesses are now moving from SAP ECC to SAP S/4 HANA. However, they face a huge problem which is that thousands of custom reports and programs no longer exist in S/4 HANA. Here it is important to look at the compatibility views.
In S/4 HANA, many tables are replaced by the universal journal. To prevent custom codes from breaking, SAP provides the read only views with the same names as the old tables on the database. Noe let’s see:
- How they work
- Data retrieval
- Limitations
Here are the details of each one to understand the compatibility views:
How they work
The system by itself redirects to compatibility view when there is asking for data from the old system.
Data Retrieval
The view retrieves the data from the new simplified tables and represents it in the old format.
Limitation
The only limitation is that you cannot write data in the compatibility view, you can only view them. Moreover, that means that you can write the new ones in the new SAP S/4 HANA tables.
What is SAP Best Practices
It is a long road to transfer from an old ERP system to a new one so to avoid mistakes and problems, SAP provides SAP best practices which is part of SAP Activate methodology. It includes:
- Fit to standard
- Clean core
- Cleansing data
- Management change
Here are the details on each one:
Fit to standard
Rather than customizing the new software to match the old one, SAP adapts your process for best practices and industry standard levels.
Clean core
The system keeps your core clean by using APIs and SAP business technology platform to make customizations. It makes new upgrades easier.
Cleansing data
When migrating to a new system, this the best time to archive old files and cleanse data.
Management change
When having SAP S/4 HANA, it shifts from SAP GUI to SAP Fiori which is a massive improvement and shift from the old one.
How to advance your career with SAP S/4HANA Certification
Now the demand for certified professionals is a lot. Having an SAP S/4 HANA certification makes your life easier in navigating the system. There are three levels for the certification:
- Associate level
- Professional level
- Specialist level
Here are details that represent each level and what they include:
Associate Level
Validates fundamental knowledge (e.g., C_TS4FI for Financial Accounting).
Professional Level
It tests deep functional and technical knowledge. It requires years of experience.
Specialist Level
It focuses on certain areas and specific ones like “Conversion and SAP S/4HANA Upgrade.”
What are the benefits of being a certified consultant
Certified consultants have a high salary than the rest and also are prioritized in projects. Furthermore, they are essential in the digital transformation era.
What are the common questions asked on SAP S/4HANA
What is the difference between SAP HANA and SAP S/4HANA?
SAP HANA is the engine and the database but SAP S/4 HANA is the ERP application that runs on SAP HANA.
Can I run SAP S/4HANA on an Oracle database?
No, it is not possible. SAP S/4 HANA has to run only on SAP HANA database.
What is the Universal Journal?
In the past, asset accounting and material ledgers and more were in separate tables. However, SAP made them all in one.
What is SAP Fiori?
It is the new interface of the UX for SAP software. It is mobile friendly and easy to navigate rather than the one in the past that had complex menu heavy screens.
Why Implement SAP S/4HANA in Your Company
This move is a strategic move to the digital transformation era. By implementing SAP S/4 HANA, it allows the company to process massive amount of data easily and gain faster and live insights for better decision making. Moreover, SAP Fiori being the UX, reduces the complexity of operations and enhances employee productivity by having the AI and machine learning embedded in the system so automation is key. Furthermore, by having the clean core, it allows the company to be able to stay ahead of competition and be ready for new innovations.
Why partner with EcoTech for Your SAP S/4HANA Journey
To make this big transfer, you need a partner who understands the unique requirements of your business and industry. EcoTech is a trusted SAP partner with 20 years of experience which makes it the perfect partner to entrust with the implementation process. Moreover, EcoTech will implement SAP S/4 HANA tailored to your business goals. By partnering with EcoTech, it ensures a seamless transition from the old ERP to SAP S/4 HANA. Furthermore, helping the company optimize the SAP S/4 HANA modules. Also, EcoTech will help you in navigating the complexities of the digital transformation world and ensure that your company follows the SAP best practices for your company’s success.
Ready to redefine your digital boundaries? Reach out explore, innovate, and grow with EcoTech. Book your free demo now!
