Computerized Accounting in ERP Systems

Computerized Accounting in ERP Systems
1

Executive Summary
The report has undertaken an evaluation of the accounting software model of SAP
S/4HANA that is increasingly being used by businesses to undergo digital transformation and
increasing their competitive position through streamlining their complicated financial processes.
It presents an overview of this accounting software as per which it has been illustrated that it is
providing new and improved features to centralizing the finance operations of businesses as
compared to the previous versions of SAP. It is better than the SAP ERP FICO with additional
financing management features and therefore businesses are migrating towards its increased
usage. The major benefits that it provides include giving access to real-time accounting data and
reducing the error which often leads to improved decision-making. However, there are numerous
challenges that are faced by companies as illustrated with the case study of KARA Technologies
and Aequs Software that mainly includes data migration, technical complications’ and employee
acceptance to changes in business processes and others.
2

Contents
Introduction.................................................................................................................................................4
History of SAP S/4HANA..............................................................................................................................4
Comparison between SAP S/4HANA Finance (S4H) and current SAP ERP FICO (FICO)................................5
Merits of SAP S/4HANA Finance for Business..............................................................................................8
Case Studies of Issues Faced by Companies in Adopting to SAP S/4HANA................................................10
Kara Technologies..................................................................................................................................10
Aequs: A Global Manufacturing Company.............................................................................................12
Conclusion.................................................................................................................................................13
References.................................................................................................................................................15
3

Introduction
This report is developed for the purpose of analyzing and examining the benefits attained
by SAP S/4HANA in developing a consolidated view of all the operational and financial data of
business entities. This report, in this context, has initially provided an overview regarding the
SAP S/4HANA and the significant differences that exist between it and the older versions of
SAP ERP FICO software. The different benefits that are attained by businesses with the use of
accounting software of SAP HANA through integration of financial data have also been
discussed in detail within the report. It also includes providing challenges that are being faced by
businesses in adopting the accounting software of SAP S/4HANA through illsutrtaing the case
study of two companies.
History of SAP S/4HANA
In 2010, SAPHANA Platform became available for its users. SAPHANA Platform /
database have the ability to run various SAP Applications such as SAP Business suite, SAP
Enterprise resource planning (ERP) etc. On 3rdFebruary 2015 SAP S/4HNANA, the new version
of SAP has been launched for the first time on the New York Stock Exchange. This model of
SAP is unique as it has the features like ability to work on cloud as well as on premise. The older
versions of SAP do not possess this feature to work on premise. It was introduced and launched
only on SAP S/4HANA. On 6th May 2015, the new edition of cloud availability was announced
and followed in the annual conference of SAP’s customers in Orlando, Florida. Over two
tennerof SAP Platform and ERP Strategy SAP S/4HANA is the largest update of SAP.
According to an analyst SAP S/4HANA can be a life changing tool. SAP S/4HANA is the newer
version of SAP 6.0 model. In the first half of the year of launching SAP realized that SAP
S/4HANA will enable it to reach to a great success as SAP S/4HANA has crossed the line of
1300 customers in just first half of the year (Barua, 2016). At the end of the first year of its
launching the number of customers of SAP S/4HANA has multiplied four times of its current
customers. Microsoft, Oracle and Workday are the competitors of SAP S/4HANA that also
based on Software as a service (Saas) model. The main purpose of SAP behind introducing the
all in one product SAP S/4HANA is to help entities in their daily business operations like from
ordering product to receive and pay for the product, from planning to make a product. SAP has
4