Computerised Accounting in an ERP

Running head: COMPUTERISED ACCOUNTING IN AN ERP
Computerised accounting in an ERP
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COMPUTERISED ACCOUNTING IN AN ERP
Table of Contents
Introduction................................................................................................................................2
 SAP S/4HANA – Historical overview................................................................................3
 Difference in SAP S/4HANA finance and SAP ERP FICO...............................................6
 Business benefits of SAP S/4HANA..................................................................................8
 Case studies of the entities migrated to SAP S/4HANA..................................................10
Conclusion................................................................................................................................13
References................................................................................................................................14
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COMPUTERISED ACCOUNTING IN AN ERP
Introduction
Under the traditional application of SAP, entire data is stored under database level and
based on that computations are carried out. Results are shown at the layer of application.
Generally the processing for queries involves aggregations and calculations. Therefore, it is
suggested that the application logic shall be pushed under database level for improving
performance of the query execution. Applications based on SAP HANA offer best
performance through pushing execution in database in possible manner. all data is stored
under the in-memory data base which in turn, assist in reading the data in faster possible way
as compared to the conventional database (Baumgartl et al. 2016). SAP HANA supports the
replication of real-time data and therefore, eliminates the unnecessary complexity and latency
for the data load.
This report will looks into the historical overview for SAP S/4 HANA finance. Under
this section the report will highlight the evolution of the application as well as the advantages
and limitations associated with the application while using it for business purposes. In the
next section the report will point out the difference of SAP ERP FICO as against SAP S/4
HANA finance. SAP ERP FICO. The term FICO stands for FI (Financial accounting) and CO
(controlling). It is considered as important module under ERP and FI as well as CO both
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COMPUTERISED ACCOUNTING IN AN ERP
stores financial data. FI is regarded as an important module for all the SAP implementations
and is used for the purpose of external reporting including income statement and balance
sheet (Discuss.asug.com 2018). FICO model can be integrated with other different modules
like distribution, sales, production planning, project systems and material management.
The next section of the report will highlight the benefits of SAP S/4HANA if used by
the business houses. Benefits will be listed down with regard to ease of use, performance,
cost effectiveness and innovation. In the 4th section the report will highlight the case studies
of those entities that have migrated to SAP S/4HANA and will discuss the issues faced by
them while migrating (Sun, Gregor and Keating 2016). Finally, the report will be concluded
based on the findings and discussion.
 SAP S/4HANA – Historical overview
SAP re-imagined the finance for digital age with release of SAP S/4HANA that was
known as simple finance previously. It includes the set for interconnected function for
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