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SAP S/4HANA is SAP’s suite of modern business applications, first launched in 2015. The platform represents one of the most significant transformations in SAP’s core services since the introduction of the R/3 system in 1992. SAP’s main goal is to streamline business operations and enable organizations to thrive in the digital age. Their fourth generation enterprise software suite, SAP S/4HANA, is at the heart of this mission, known for its modern design and user-friendly interface. This integrated product platform leverages advanced in-memory technology. It integrates advanced features such as IoT, Big Data, and enterprise networking, all aimed at simplifying processes and improving operational efficiency. With SAP S/4HANA, businesses can seamlessly adapt to the rapidly changing digital landscape, survive and thrive.
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The History of SAP S/4 HANA Finance
Originally called SAP Simple Finance, this solution debuted at the Sapphire Now 2014 technology conference in Orlando, Florida. Just nine months later, its name was changed to SAP S/4HANA Finance when SAP announced the revolutionary SAP S/4HANA enterprise resource planning platform, organized into different business lines, including finance, supply chain, sales and other industries.
The initial release of SAP S/4HANA Finance introduced innovative features, including Universal Journal, which serves as a unified repository for financial and management accounting documents, with Full relevant details. This innovation has revolutionized reporting, providing easier access to the key performance indicators (KPIs) used by managers and providing personalized dashboards tailored to each end users to help them make more informed decisions.
Since this pivotal moment, SAP has continued to develop the SAP S/4HANA Finance platform. Every year sees milestone releases that introduce new and innovative features. As of 2019, the latest capabilities of SAP S/4HANA include enhanced financial close capabilities, centralized accounts payable and receivable management, predictive accounting, and a range of integrated analytics to further add strength to businesses.
Key Innovations in SAP S/4HANA Finance
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SAP S/4HANA Finance stands out through key innovations, largely driven by the transformative power of SAP HANA. While some enhancements focus on speed (SAP HANA’s superior analytics and reporting capabilities are 1,800 times faster than SAP ERP), others introduce completely new capabilities for SAP S/4HANA Finance. A prominent example is Universal Journal, a central repository that aggregates financial and management accounting data with comprehensive detail, revolutionizing reporting and generating deeper insights. In addition, SAP S/4HANA Finance provides centralized processing capabilities, streamlining workflows to increase efficiency, and data mining capabilities that allow users to perform in-depth analysis.
Additionally, it offers the unique advantage of integrating data from multiple ERPs into a single unified platform, thereby simplifying data collection and improving data quality. Together, these enhancements define the exceptional value proposition of SAP S/4HANA Finance, providing organizations with unprecedented process improvements and reporting capabilities.
Evolutions from SAP ERP Financials to SAP S/4HANA Finance
SAP leaves no room for ambiguity by introducing the concept of “simplicity” of SAP S/4HANA Finance in its first release, press strongly that it implies a multifaceted transformation. Users of this innovative solution will enjoy the benefits of real-time automated financial reporting, a more streamlined data model, and a lightweight, elegant architecture.
Innovative Features Unveiled by SAP S/4HANA Finance
SAP S/4HANA Finance introduced a revolutionary feature in the financial sector: the idea of a unified source of truth. This function successfully combines all financial data, overcoming geographical and departmental barriers. The success of this achievement was made possible through the capabilities of SAP HANA, which can store massive quantities of data in its memory and provide immediate analytical reports to authorized users.
The impact was profound and widespread. Accountants have access to real-time information about current and historical financial activities. Project managers, faced with complex projects with strict budget constraints, have found valuable support. Additionally, planners can leverage historical and current data to make accurate predictions about future expectations.
SAP S/4HANA Finance Deployment Options
SAP S/4HANA Finance offers organizations with several deployment options to suit their needs. These deployment methods includes:
On-Premise
This traditional approach includes hosting SAP S/4HANA Finance on the company’s physical infrastructure, providing complete control and customization capabilities.
Cloud
Companies can choose for a public cloud deployment, where they rent shared server space with other SAP S/4HANA users, benefiting from scalability and cost efficiency while outsourcing technical infrastructure management.
Additionally, private cloud deployments enable organizations to rent dedicated servers for their SAP S/4HANA instances, thereby retaining application ownership while outsourcing infrastructure management.
Two-tier (hybrid)
In a hybrid configuration, both on-premises and cloud deployments are used. This approach serves a number of purposes, from testing the feasibility of different scenarios to supporting on-site deployments at headquarters while using cloud solutions in satellite offices.
These diverse deployment options enable organizations to tailor SAP S/4HANA Finance deployments to their unique business requirements, whether they prioritize control, scalability, or a hybrid both.
SAP S/4HANA Finance Release Cycle
SAP S/4HANA Finance follows a robust release cycle, with quarterly updates for cloud deployments and annual updates for on-premises installations, typically in September. Versions are named in a year/month format, for example, 1909 for September 2019, making version tracking simpler.
Other important SAP S/4HANA finance terms
In addition to the information provided previously, here is a list of important SAP S/4HANA finance terms with which you should be familiar:
- Actual costs: Attribution scenario method -value depends on the materials used in manufacturing the product. SAP S/4HANA Actual Costing provides a more accurate assessment than standard accounting practices for determining cost of goods sold.
- Blockchain: Decentralized database replicated on a peer-to-peer network, improving accounting transparency.
- Materials Ledger: Subledger provides a detailed view of inventory transactions.
- SAP Analytics Cloud: A cloud-based solution for planning, analytics, and predictive analytics that integrates seamlessly with SAP S/4HANA, allowing users to view and analyze historical financial data.
- SAP Concur: Employees use travel and expense management solutions to reimburse work-related expenses.
- SAP Financial Closed Cockpit: SAP’s current entity closing solution simplifies and accelerates the reporting process.
- Universal Journal: A single repository stores financial and related information, providing instant insight into a company’s financial health.
These terms are important for understanding the broader SAP S/4HANA Finance ecosystem and related concepts.
Benefits of SAP S4 HANA FI
SAP S/4HANA Finance is a powerful solution that businesses can use in their financial operations. This article will look at 24 benefits it brings to business growth, profitability and agility.
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Growth
Below are 8 benefits that SAP S/4HANA Finance brings to business development.
Customer delivery time
In terms of customer delivery time, SAP S/4HANA Finance enables faster payments, accrual accounting and loan pricing. Additionally, faster customer interaction times will help improve customer relationships.
Finally, SAP S/4HANA Finance provides a scalable platform for big data (e.g., processing 50 million orders daily).
Data Volume
SAP S/4HANA enables high-volume payment processing to meet promotional and peak season requirements.
Days sales outstanding
With SAP S/4HANA Finance, businesses can reduce days sales outstanding (DSO).
Invoice Processing Time
The architecture of SAP S/4HANA means that invoice processing time can be significantly reduced.
New Revenue
The speed and ease of use of SAP S/4HANA enables businesses to reduce the time to market for new products and services.
Revenue growth
Because SAP S/4HANA integrates direct processes from sales planning to fulfillment to material requirements planning, creating rolling forecasts results in Production that meets commercial needs will be easier.
Reduce revenue loss
SAP S/4HANA reduces revenue loss by more than 50% compared to industry standards.
Transaction Processing
As mentioned above, SAP S/4HANA can be scaled to process millions of orders. It can do this with very high accuracy, thereby reducing the cost of errors.
Profitability
Here are seven benefits that SAP S/4HANA Finance helps generate profits and create value for an organization.
Bad debts written off
SAP S/4HANA helps bad debts reduce significantly.
Reduced number of days to close monthly books
The number of steps required to complete monthly financial close is reduced with SAP S/4HANA Finance, meaning reports can be generated faster.
Direct Materials Spend
SAP S/4HANA provides enhanced visibility into procurement activities, helping to reduce rates and optimize spend.
Employee Productivity
SAP S/4HANA provides easy and mobile access to sales data and master data, i.e. contact details allowing easy access and usage of information. Better use of business resources on a global scale. Additionally, the integrated nature of this software suite provides standardized and streamlined business processes and business implementations. Finally, automation such as predictive accounting reduces work time spent on manual processes, freeing up employees to perform other tasks.
Inventory
As part of SAP S/4HANA logistics capabilities, optimized inventory management establishes real-time visibility into inventory levels and spare parts .
Profitability
Product costing throughout the supply chain provides visibility into viable products.
SAP S/4HANA provides this visibility.
Reduce total cost of ownership
SAP S/4HANA reduces the complexity of the technology landscape through hardware reduction, maintenance, and software licensing.
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Agility
Here are 9 benefits that SAP S/4HANA Finance brings to increase the agility of an organization.
Business User Satisfaction
Happy employees are productive employees. Simplified processes and improved user experience with SAP Fiori across all functional areas are the key selling points of SAP S/4HANA.
Data processing efficiency
SAP S/4HANA reduces backup time from hours to minutes.
Data Volume
SAP S/4HANA runs on SAP HANA and reduces data size by 90% for faster reporting and improved process efficiency.
Days To Close Books
When it’s time to close the financial books, SAP S/4HANA Finance speeds up the process three to four times.
Employee Productivity
Sound accounting, budget planning, reporting and execution procedures consistent with best practices. With task automation, employees no longer need to spend time on manual tasks in accounting, finance, and indirect purchasing. This minimizes risk.
Order processing efficiency
Compared to existing systems, SAP S/4HANA is 75th best in executing key business processes.
Cost reduction
With the reduction of repetitive manual labor, waste can be reduced.
Risk mitigation
Direct reporting with audit and advanced controls means significantly reducing business risk profile and fraud-prone areas. Additionally, consistent business processes and financial practices across all global locations help reduce risk and operational complexity.
Reporting efficiency
SAP S/4HANA is a single system, so no matter where a subsidiary is located, executives can get accurate insights and reporting aggregated in real time.
Conclusion
For those who want to learn more about SAP S/4HANA, enrolling in a reputable training institute like Entri could be the ideal choice.
Entri App offers flexible SAP S/4HANA training to meet diverse learner preferences and requirements. Our training programs are accessible online, ensuring accessibility to a wider audience. With a team of experienced instructors, engaging interactive sessions and round-the-clock mentoring, we aim to effectively equip learners with practical skills to apply SAP in real-life situations.
Our courses are suitable for finance and accounting professionals looking to advance their careers.
We offer hands-on training and, if successful, a certificate to confirm your expertise. Embark on your learning journey with the Entri App and expand your knowledge, paving the way for success in the dynamic finance and accounting industry.
