Computerized Accounting in ERP: Benefits of SAP S/4 HANA Finance for Business

Running head: COMPUTERIZED ACCOUNTING IN ERP
Computerized accounting in ERP
Name of the Student
Name of the University
Author Note

COMPUTERIZED ACCOUNTING IN ERP
Table of Contents
Introduction:...............................................................................................................................2
Discussion:.................................................................................................................................3
Historical overview of SAP S/4 HANA FINANCE:.................................................................3
Difference between the current SAP ERP FICO and SAP/S 4 HANA:....................................6
Benefits of SAP/S 4 HANA for business:..................................................................................7
Case studies of companies relating to issues they faced migrating to SAP/S 4 HANA Finance:
....................................................................................................................................................9
Conclusion:..............................................................................................................................15
References list:.........................................................................................................................16

COMPUTERIZED ACCOUNTING IN ERP
Introduction:
The report is prepared to demonstrate the benefits of the software named SAP S/4
HANA finance for business. This incorporates discussion on historical overview of the S/4
HANA and explaining the difference between this latest introduced SAP solution and current
ERP FICO. Furthermore, discussion has been supported by explaining the case studies of
companies explaining the issues they have faced while migrating to this generation business
suite. S/4 HANA is the next generation business suite of SAP that provides real rime
collaboration and support for the process of digitized business while experience greater use
on device. The current SAP ERP product will be replaced by SAP S/4 HANA by the end of
2025 and the later forms a part of enterprise management of SAP. A new financial core will
be formed by this solution as it helps in responding to the challenges faced by chief financial
officer of organization by enhancing the process efficiency, improving the functionality of
report in terms of speed and agility and improving the experience of user. Organizations are
required to choose between starting a new (Greenfield) and migration (Brownfield) if they
plan to implement the real time digital core to business. In areas of an integrated ERP
environment, the software provides support in areas such as accounting and period close,
financial analysis and planning, collaborative finance operations, financial and treasury risk
management, compliance and enterprise risk management.
Discussion:
Historical overview of SAP S/4 HANA FINANCE:
The history of SAP is dated back when the first product was released onto the market
in year 1972. Architecture of first product of SAP that is R/1 was based on what is known as
a system of one tier. This indicates that one single system or server has three layers of an
ERP system installed in it comprising of application, presentation and application. In addition

COMPUTERIZED ACCOUNTING IN ERP
to this, the two servers had main version of R/2 product installed in it. R/3 is the latest version
in the era of SAP tier architecture. The most innovative product in the history of SAP is R/3
until year 2012. However, this has been changed with the introduction of HANA and there is
clarified difference between the software’s such as S/4 HANA, S/4 HANA finance and
HANA. S/4 HANA finance is the application for management and financial accounting.
With every version of S/4 HANA release, a simplified and new table structure has
been transformed by more and more functionality. The first application that was launched by
SAP was the S/4 HANA finance for new business suite and the functionality contained in the
application helps organization in accelerating, optimizing and simplification of function of
finance. Along with other solutions in SAP, S/4 HANA finance has its operation on fully
integrated basis and thereby an evolving digital core is provided by SAP.
There are three different components of S/4 HANA of which the functionality has
been discussed in this particular section. Such components comprised of SAP accounting that
is regarded essential, SAP BPC and cash management that are optional.