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Saturday, October 1, 2016

Are you still mulling over SAP S/4 HANA Implementation?

SAP customers all over the globe are getting aware of HANA. After the initial concerns & inertia, there is an increased momentum to embrace HANA roadmap. But many customers are taking a cautious approach, of migrating to HANA database only (& continuing with SAP ERP 6.0 on top of it). Even though this move fetches good returns (in terms of database size reduction, faster response time due to in-memory architecture), you’re not getting the full benefits since you haven’t not migrated to SAP S/4 HANA.

And believe me, it is not some minor improvements (like you used to see in Enhancement packages) but almost ALL of the modules (& many Industry Solutions) have been affected, for better. Table designs are changed, business processes are changed, transaction codes are changed. SAP is calling it a New Product.

Somehow, SAP has not been very successful in evangelizing these changes. So, for the benefit of CIOs / IT Heads & SAP consultants, here is my attempt to bring out the Top-Ten changes in the functionality. (Describing all the changes would make the blog voluminous so this approach)

1.      Master Data Changes
·         Business Partner
Business Partner is now capable of centrally managing master data for business partners, customers, and vendors. With current development, BP is the transaction to create, edit, and display master data for business partners, customers, and vendors. (Transaction like XD01, XD02, XD03 or VD01, VD02, VD03 / XK01, XK02, XK03 or MK01, MK02, MK03 etc. are not available in SAP S/4HANA, on-premise edition 1511)
·         Cost Elements become part of the Chart of Accounts
With Cost Elements becoming part of the chart of accounts, maintenance in account master data would be done through transaction FS00 instead of separate cost element master data (transactions KA01, KA02, KA03, and KA06 becoming obsolete).
·         Simplified Material Mater
With SAP S/4HANA, on-premise edition 1511, the maximum field length of the material number is extended from 18 to 40 characters.
Fields related to foreign trade no more available in Material master. Foreign trade functionality which was available in SD is not available now. It is made available under SAP GTS (Global Trade Services).

2.      New material type
New material type "SERV" for services is introduced for Product Master in S/4HANA for simplification purposes.

3.      New Table MATDOC in Inventory Management
The new table MATDOC has been introduced which contains the former header and item data of a material document as well as a lot of further attributes. Material document data will be stored in MATDOC only and not anymore in MKPF and MSEG. Actual stock quantity data will be calculated on-the-fly from the new material document table MATDOC for which some of those additional special fields are used. A further advantage of the new MM-IM data model is the capability of simple and fast reporting because the most information is in one place: MATDOC.

            4.      Availability of transactions in IM
The transactions for entering and displaying goods movements (material documents) - called "MB transactions" (specifically MB01, MB02, MB03, MB04, MB05, MB0A, MB11, MB1A, MB1B, MB1C, MB31, MBNL, MBRL, MBSF, MBSL, MBST and MBSU are not available with SAP S/4HANA. In SAP S/4HANA the single-screen generalized transaction MIGO is available (transaction MIGO is available in SAP Business Suite since Release 4.6):

5.      Material Ledger mandatory
It is obligatory to use the Material Ledger in all SAP S/4HANA systems. When a system is converted to SAP S/4HANA the Material Ledger will be activated if not active already.

6.      Universal Journal through table ACDOCA
In SAP Simple Finance, on-premise edition add-on 2.0 and SAP S/4HANA on-premise edition 1511, a new table ACDOCA is introduced. It allows bringing data from General Ledger, Asset Accounting, Material Ledger, Controlling (Including coding block & CO-PA) into one journal.
The Journal Entry consists of a header (stored in table BKPF) & items (stored in table ACDOCA).  (Table BSEG continues for items. But it stores items coming from classical FI postings like FB01, FB50, FB60, FB70 etc.)

7.      Financial Accounting– some more important changes
·         Only New GL is supported. (Those who are on classical GL, need to first migrate to New GL & then move to S/4 HANA)
·         Classic Asset Accounting is transformed automatically into the New Asset Accounting, after migration.
·         AR & AP are integrated with FSCM-Biller Direct.
·         Credit management - The FI-AR-CR Credit Management is not available in S/4HANA.The functional equivalent in SAP S/4HANA is SAP Credit Management (FIN-FSCM-CR).

           8.      SD Pricing changed / simplified
Business documents within the SAP Business Suite such as the sales order or the purchase order used to store the pricing result in the database table KONV. In SAP S/4HANA, table KONV is replaced by the new table PRCD_ELEMENTS.

           9.      Sales & Distribution – Some more important changes
·         Revenue recognition
The ‘ERP SD Revenue Recognition’ is not available within SAP S/4HANA. The newly available "SAP Revenue Accounting and Reporting" functionality should be used instead. The new functionality supports the new revenue accounting standard as lined out in IFRS15 and adapted by local GAAPs.
·         The Foreign Trade functionality 
It is not available within SAP S/4HANA. The functional equivalent in SAP S/4 HANA is SAP Global Trade Services (GTS).
·         SD Rebate Processing
SD Rebate Processing is not available within SAP S/4HANA. The functional equivalent in SAP S/4 HANA is SD Rebate Processing is Settlement Management.
·         Sales & Operations Planning (SOP) 
It is replaced by Integrated Business Planning (IBP)Integrated Business Planning which supports all SOP features plus advanced statistical forecasting, multi-level supply planning, an optimizer, collaboration tools, an Excel-based UI, and Web-based UIs.

            10.  HR
Nothing is changed in SAP-HCM because SuccessFactors, the next generation HCM suite on the public Cloud, is the way forward for HCM solution for both editions of SAP S/4HANA.
SAP S/4HANA customers using SAP ERP HCM on-premise and not willing to move to SuccessFactors can continue to use SAP ERP HCM. SAP HCM can be run in either a separate instance or single instance with SAP S/4HANA. The integration among both on-premise instances (SAP HCM with SAP S/4HANA on-premise) will be available via ALE in case SAP HCM is running on separate instance. In case SAP HCM is running inside of SAP S/4HANA on-premise then the integration is automatically given.

Besides above salient changes, a lot of functionalities from SAP PP, PM, QM, WM, CS, LIS, PS, EHS, SRM, PLM & C folders are changed & so from Industry-Solution like Banking, Beverages, Automotive, DIMP. Public Sector, Telecommunication & Utilities.

You may also want to refer following relevant links –

All you wanted to know about SAP HANA –

SAP S/4 HANA – Simple Finance: Simplified –

 Good luck!