Benefits of SAP S/4 HANA Finance Report

Added on - 09 Oct 2019

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IntroductionOne of the most important tools used by business organizations, in general, is the SAP. Thoughmost organizations are happy with the performance and stability of the SAP solution, it is notadaptable or agile to advances in new technology. Here is where SAP S/4HANA Finance steps in.Industry experts believe if there is one software, which provides an all- round solutions to thefinancial and accounting needs of the organization; it is SAP S/4HANA Finance[ CITATIONHan19 \l 16393 ]. Based on SAP HANA in-memory database, SAP S/4HANA Finance is an ERPsuite that allows businesses toanalyses business data in real time and streamline their businessprocesses.Purpose: The purpose of the report is to discuss and analyses the benefits of SAP S/4 HANAFinance and why business must consider SAP S/4HANA Finance. The report begins with anintroduction followed by a body. The body discusses and compares different perspectives andpresents arguments in support of the purpose of the report. Relevant business case studies arealso included in the report to further add credibility to the arguments in the study. Finally, thefindings of the research are concluded in the conclusion part of the report.Historical Overview of SAP S/4HANA FinanceLaunched in early 2014, SAP S/4HANA Finance is an ERP financial software that runs on SAPHANA’s in-memory platform[ CITATION Din17 \l 16393 ]. Formerly known as SAP simple finance,SAP S/4HANA Finance supports accounting and financial closure, financial planning andaccounting, treasury and cash management, risk management, accounts payable and receivableand much more. Based on SAP S/4HANA, SAP S/4HANA Finance is the financial module in S/4HANA
Suite is redesigned to surge process efficacies across an assets lifecycle. Certain key componentsof SAP Simple Finance has been recoded to gain full advantage of SAP HANA’s potential.As of September 2015, the term SAP Simple Finance is out dated as it is replaced with SAPS/4HANA Finance[ CITATION Din17 \l 16393 ]. SAP S/4HANA Finance is available as both cloudand on-premise versions. The cloud versions are continually upgraded in about quarterly releaseswhereas the on-premise version is enhanced every year. With every SAP S/4HANA release,more and more functions are added to the Finance module of SAP S/4HANA for an easy enduser experience. In the front end, SAP Fiori is used by the SAP S/4HANA Finance for aconsumer like user experience[CITATION SAP19 \l 16393 ]. As outlined before, SAP S/4 HANAFinance offers functionalities that allow organizations to simplify andoptimize the financefunction. In addition, it operates seamlessly on other SAP solutions like supply chain, sales, etc.SAP S/4HANA Finance applications can be implemented as bundled together or as standaloneproducts. Aimed at financial professionals and specialists in all industries, the user base of SAPS/4HANA ranges from small companies to Fortune 100 companies.One of the key features of SAP S/4HANA Finance is its ability to combine processing speedwith integrated features of the various finance functions like management accounting, financialaccounting etc. This allows quicker reconciliation of the financial processes and provides asingle source of financial truth for the organization as a whole, according to SAP[ CITATIONSAP19 \l 16393 ]. Another key benefit of SAP S/4HANA is its ability to combine real-time datawith analytics in order to model and predict the impact of decisions that a company may want tomake, such as acquisitions. For example, a business decision maker can use SAP S/4HANAFinance tomodel dataand forecasts potential decisions using real-time financial data fromseveral systems.Ease ofchanging processes as business model evolves as well asredesigningand optimizingprocesses to focus on exceptions and critical tasksmakes SAP S/4HANA Finance a widelypreferred module to add value to the business processesOne of the largest life insurance companies in the world, New York Life Insurance Companyembarked on the digital transformation of its finance organizationbracing new SAS S/4HANA
Finance to help steer its journey[CITATION New16 \l 16393 ]. New York Life Insurance Company’sdecision to implement SAS S/4HANA Finance came from the inefficiencies arising from thedatabase-centric running of manual; spread sheet-based processes with SAP ERP have becomemore andmore noticeable over time. As solution to the prevailing problems, New York Lifeadopted this new cutting-edge finance software and migrated off its SAP ERP to up andoperational with SAP S/4HANA Finance in July 2015[ CITATION New16 \l 16393 ].New YorkLife used SAP S/4HANA instance for central finance and used SAP Insurance Analyzer as thesource system for the movement of its SAP ERP data to produce a single, centralized financialmanagement system. New York Life Insurance foray intodigitization using SAP S/4HANA is astriking example of how increase of digitization in the consumer world is making its way tobusinesses of every stripe, and businesses realize that prompt insight is quickly becoming arequirement.The difference between SAP S/4HANA Finance and current SAP ERP FICO:SAP ERP FICOStandsfor FI(FinancialAccounting) and CO (Controlling).SAP FICOisthe important moduleof ERPand bothFIand CO modules stores thefinancialtransactionsdata in Business.SAP S/4HANA isa comprehensivefinancesolution basedon SAP HANA, which can bedeployedin thecloud.SAP HANA is Reporting tool in SAP and it is a technical module. Whereas SAP FICO is aFunctional Module, SAP HANA is a Database in cloud where it is used for Operational reportingusing SAP BI. S 4 HANA is used for reporting where the data is getting from straightly S4HANA System. Now SAP HANA is simplified in all technical module even FICO as well that isSimplified finance Functional Module.SAP HANA: High Appliance Analytical Tool, one who is interested and making a career mustknow that there is some technical stuff involved should working on SQL calculations orcomputations. HANA is used as Database and Data Modeling for Business Intelligence. Manypeople confused or calling SAP HANA also as big data, in fact SAP HANA combined externaltools that can give solution as SAP BIGDATA.SAP FICO is a functional component in SAP ERP Central Component that allows anorganization to manage all of its financial data. The purpose ofSAP ERP FICOhelp companiesgenerate and manage all financial statements for analysis and reporting with effective businessplanning and decision-making. SAP FICO consists of two modules, SAP Finance (FI) and SAPControlling (CO), which is used for specific financial processes. SAP FI deals with financialreporting and accounting while SAPS/4HANAfocuses more make decision on cloud. SAPFICO is based on premise (R3) database model. Here Database layer, Application layer and
presentation layer will be there. In addition,SAP S/4HANAwas not able to dethrone Oraclefrom the database layer even in application & presentation layers SAP functional and technicalmodules are being used. To overcome this problem and to gain complete monopoly in ERPlandscape, SAP created HANA to push industries towards cloud side. SAP HANA can be on-premise model / complete cloud model / mix of both depending on the client’s needs.What are the benefits of SAP S/4HANA Finance for businesses?SAP S/4HANA help to centralized Finance. SAP S/4HANA is quickly becoming SAP’s mostsuccessful ERP system that we use in Finance for Businesses.SAP S/4HANA Simple Finance is an updated version of SAP Simple Finance, which includesmany benefits that are below:
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