Advantages of SAP S/4HANA Finance

Computerizedaccountingin an ERP system
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Executive Summary
This report has been conducted for analysis and examination of the various features and
benefits provided by the cloud-based accounting software of SAP S/4HANA. It has been
discussed within the report that SAP HANA accounting software is superior as compared to the
features provided by initial software of SAP such as SAP ERP FICO. This is because it provides
advanced features for processing of the financing activities. In addition to this, it has taken the
example of the case studies of Apple and Nestle for demonstrating the significant issues that
companies face in adopting to this accounting software. The major issues as identified within the
report are migration of large volume of data, technical complications, requiring higher cost and
time and overcoming employee resistance to changes.
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Contents
Introduction................................................................................................................ 4
Part 1: SAP S/4HANA Finance Overview......................................................................4
Part 2: Distinction between SAP S/4HANA Finance and current SAP ERP FICO...........5
Part 3: Advantages of working with SAP S/4HANA Finance........................................7
Part 4: Case Study of Companies Adopting SAP S/4HANA & their Significant
Challenges................................................................................................................ 10
Conclusion................................................................................................................ 12
References............................................................................................................... 14
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Introduction
The businesses at present are under increasing competitive pressure to adopt the new IT
systems and processes for conducting their various activities in a simplified and quick manner.
As such, they are also emphasizing towards the adoption of cloud-based accounting software to
better manage their accounting and financial activities. This software provides the benefits of
better managing the large volume of accounting and financial data by integrating it in an
effective manner. As such, this report has aimed to provide an insight into the accounting
software of SAP S/4HANA that is largely being used by businesses at present to manage their
financial functions. The report has conducted an overview regarding the accounting software, its
differences from the SAP FICO and the different benefits realized by businesses through its
adoption. This is followed by evaluation of the case studies of Apple and Nestle that are
migrating towards SAP S/4HANA and the significant challenges faced by them in its adoption.
Part 1: SAP S/4HANA Finance Overview
A company was incorporated in 1972 named SAP “SystemAnalyse und
Programmentwicklung” (System Analysis and Program Development) by precedent teammates.
The blossoming of the emerging company’s initial programs went on usually at nights and on
last days in the week.The main goal was to develop standard application software that performs
online data processing. SAP has employed 9 people and earns DM 620,000 at the end of first
year. SAP established its registered office in Weinheim, Germany. So many versions of SAP has
been developed and introduced to meet the financial accounting needs of the users. SAP tries to
check its flexibility for the first time in 1974 by converting its RF system from DOS operating
system to operating system. In 1975 with SAP RM System Company is able to integrate its
processes like purchasing, inventory, management, invoice verification etc. In 1976, a sales and
support subsidiary named SAP GmbH Systeme Anwendungen und Produkte in der
Datenverarbeitung (Systems, Applications and Products in Data Processing) was formed as a
limited liability company(Barua, 2016). SAP has started installing its system for the foreign
customers in 1977. Asset Accounting Module was created in 1978 and implemented on a modal
company. John Deere developed the company’s accounting software in a newer version in
French language to take a trial of international potential of software. In 1979, for the first time
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