Computerised Accounting in an ERP System

This essay provides an overview of computerised accounting in an ERP system, focusing on SAP S/4HANA Finance. It discusses the features and advantages of SAP S/4HANA Finance, as well as the differences between SAP S/4HANA Finance and SAP ERP FICO. The essay also explores the challenges faced by corporations in transitioning to SAP S/4HANA Finance.

Running head: ESSAY 0
COMPUTERISED ACCOUNTING IN AN ERP SYSTEM
JUNE 11, 2019
STUDENT DETAILS:

ESSAY 1
In earlier period, SAP S/4 HANA Finance was addressed as SAP simple Finance. SAP S/4
HANA has various features such as reorganized design as well as the international journals.
The innovative SAP Asset Accounting (FI-AA) module is considered as best example of
financial module. It is recreated within S/4HANA set for suggesting efficiency of process by
the lifetime of assets. There were various people including the clients of SAP, who
considered that this was Financial Accounting and controlling sub-module, which was easier
to organize than efforts currently needed within Enterprise Resource Planning suite. For the
better understanding, firstly it is required to have the knowledge that what is the SAP
S/4HANA Finance.
S/4 HANA business suite is depended on the intrinsic platform ‘HANA’ for supporting the
basic data model, no collections, and no directories. S/4 HANA has the incorporated Fiori-
based user’s line and admittance on basis of role for different aims. It is relied on innovative
in-memory stage. S/4 HANA also delivers the modified user experiences based on Fiori for
accessing solution based on roles. This may be organised over cloud atmosphere or on-place
solution. Various clients who are shifting from SAP suites to S/4 HANA and for seventy five
per cent clients, this consider the average six months for immigration plan. SAP also
proposes the quick disposition assignment (SAP project) to execute the quick immigration to
SAP Simple Finance Solution as well as to ‘HANA’ platform. There are numerous SAP
contributors, who render fixed price assimilation for the customers. Therefore, after
relocation of the system the client will be able to utilise the customization. The shifting of
SAP business suite towards S/4 HANA is accomplished by application packages in a way of
simple logistics, SAP Simple Finance as well as others. With SAP S/4 HANA, SAP is
rendering the different and innovative products and the subsequent generation of applications
related to business, simple software for huge data and is designed to assist a company run

ESSAY 2
simple in a digital economy. At that time, this is very essential thing to get proper knowledge
of journey of SAP with SAP HANA, as this is not just about the SAP S/4HANA Finance,
however also to DNA of SAP. This essay states the general idea of SAP S/4HANA Finance,
difference between SAP S/4HANA Finance and present SAP ERP FICO, and advantages
related to SAP S/4HANA Finance intended for businesses. In these below mentioned parts,
the issues faced by corporations in shifting towards SAP S/4HANA Finance are assessed.
Further, SAP S/4HANA is considered as small form of SAP business suite SAP S/4 HANA.
This is new edition of SAP suite. The main question is that where does SAP S/4HANA origin
from? This is clear that the corporations are required for putting control on various daily
procedures regarding the functions of organisation. Numerous periods ago, the various sellers
started to address the different ERP system to a marketplace for managing all the business
procedures at same time. In an instant, SAP became the best leader in that range with the
organisation, formerly known as SAP RF, quickly gaining the admiration. At that time, this
was SAP R/3 that is still likely to be searched in certain corporations. Anywhere in starting of
year 2000, a central part of SAP Enterprise Resource Planning system altered the name in
SAP Enterprise Resource Planning ECC (Enterprise Central Component). For various
periods, this was reflected the essential products of SAP as well as an organisation
unconstrained the advancements for this occasionally. A system rendered capacity to operate
different work procedures and utilise various database both HANA and one by exterior
developer for ordering and storing the huge extents of information. Amongst the sellers of the
database, there were the developers as Microsoft, IBM and Oracle.
The passing of time, the indoors of ERP system began for making extensive with an
overpowering number of tables comprehending replaced data. In year 2015, the conditions
reformed while SAP began the development of SAP S/4HANA. A main purpose of ERP
system especially over SAP HANA as well as utilise all advantages of in-memory database.

ESSAY 3
This was innovative brunch in establishment of this system, which was required to be more
real as well as simple to utilise. Currently, this is a best period to explain that SAP had
applied attempt of implementation of in-memories knowledge for the longer period. Still, at a
period of development of S/4HANA, the higher memory functions became very suitable. It
can get access to information with the huge differences in speed comparing to similar
functions with information stored on a hard drive. Even though, by that period, the number of
system on the basis of similar concepts was pretend by numerous developers, for an example
Microsoft or Oracle. In 2016, approximately five thousand four hundred clients had applied
SAP S/4HANA. There were various modifications addressed in SAP S/4HANA (Hilker,
Awan and Delvat, 2018).
As discussed above, SAP ERP has various reports as well as dealings. These transactions and
reports do not have proper documentation. In addition, there were various irrelevant tables
with recurrent information, which reduced the system’s working process. At this stage, SAP
S/4HANA was established in the manner for rendering the simple way to live information.
This was attained through the explanation of the dealings. When the ERP system covered the
numerous simple dealings, SAP S/4HANA decreased them further, at that time combined
with others, making them difficult. The other simple modifications that differentiate
S/4HANA are the limited utilisation of SAP HANA database to store data. At the time when
SAP Enterprise Resource Planning system supports database from other developer, the
innovative system was adjusted to SAP product’s implementation only. The developer came
to a conclusion that an use of SAP database can keep the big cost of organisation (Umar, et.
al, 2016).
In addition, SAP S/4HANA is an upcoming commercial suite developed to operate easier in
the digital economy. Made for innovatory SAP S/4 HANA in-memory describing platform, it
describes how company software makes the values in sectors with prompt vision. SAP

ESSAY 4
S/4HANA identifies experience of users upon the devices as well as natively attaches to big
data, social networks or business networks, and internet thing in the real time. SAP
S/4HANA Finance is financial application within a SAP S/4HANA Enterprise Resource
Planning platform (Maheshwari, 2017). SAP S/4HANA Finance contains the position of
interrelated fiscal administration operations, which render actual-time information from
Enterprise Resource Planning application. The SAP S/4HANA Finance is part of S/4HANA
and is created over SAP HANA in-memory record stage (Jha and Sangle, 2018). S/4HANA
assimilates cross-corporation operations in one method that pools transactional procedures
and analytic aimed at real-time application. For a front end, it utilises SAP Fiori for the
consumer-like as well as modified UX (user’s experiences).
Furthermore, Simple Finance was considered as initial part of a business suite to be redrafted
to operate over the innovative superfast in-memory ‘HANA’ database of SAP (Solberg,
Wathne and Madslien, 2016). The simple logistics adopted, and the shared innovative
products, with current Asset Accounting as well as current GL as requirement, became
considered as S/4HANA. It presents as an S/4HANA cloud that is the consistent multi-
tenanted cloud (such as the clients share similar software instances even though the
information is personal and protective). It comes with the compulsory Fiori user’s line,
periodical publications, and modified programming is not probable as one is sharing the
systems with others. Further, the on-place S/4HANA has great suppleness, autonomy for
customizing as before and discretionary Fiori as well as per annum releases. S/4HANA is the
commercial suite made on top of in-memory platform of SAP, HANA. The S/4HANA suite
covers Enterprise Resource Planning abilities across various business fields like Sales area,
finance area, human resources, supply chain area, as well as procurement. There are certain
differences between SAP S/4HANA Finance and current SAP ERP FICO. SAP FICO is
main operational element in SAP ERP Central element, which permits an organization to

ESSAY 5
manage all of the data related to finance. The main purpose of SAP FICO is to help
organisations to make as well as handle financial statement for examination and reporting as
well as help with effectual preparation related to businesses and decisions taking (Plattner
and Leukert, 2016).
The major benefit of SAP S/4HANA Finance is that it has managing speed combined with
combined characteristics for various economic functions such as financial accounting as well
as management accounting. Due to this, SAP S/4HANA Finance permits for the more
quicker settlements of financial procedures like the periodical closes, as well as renders the
one source of financial fact for a company wholly, as per the SAP (Pedell, et. al, 2017). The
other benefit is capability to utilise the real-time data with analytics to model and forecast
influence of modifications, which the corporation can desire to create like acquisition. It may
make able the financial professional, involving Chief Financial Officers, to play the more
projecting part in the organisational decisions. SAP S/4HANA Finance may be applied on-
premise, in cloud or hybrid atmosphere. SAP S/4HANA Finance application may be applied
as product in-group and individual product. SAP S/4HANA Finance is targeted at financial
expertise and professional within the sectors, together with CFO and other persons
participated in tax, treasury, accounting, financial functions, risks, as well as acquiescence.
The user base ranges from smaller corporations to Fortune hundred organisations and
involves the corporations around the sphere (Riesner and Sauer, 2017).
Furthermore, after going live on a platform, the clients of S/4HANA realized its benefits in
relation to the different industries and the purposes of business they were observing to have.
Before arranging S/4HANA, the organisations were running in Siloed departments that
needed guide time-taking amalgamation in end of all the financial periods. Normally, the
reporting abilities executed in inbuilt ERP systems were heavily supplemented with other
person reporting device and MS Excel. It also permitted the clients to centralize the whole

ESSAY 6
functions related to accounting and finance. For an instance, the client moved from eleven
examples the inherent system to single united international general ledger example.
Therefore, the clients were also capable for democratizing the report to make able the users to
build the personal informal report in place of requiring the information technology to make
report for them (Mauro, 2018).
The other benefit is that S/4HANA also improves the planning. As per the old system, the
planning was disjointed across the sectors and shifted between inherent ERP software and
Excel. Also, for certain institutions, the manufacturing will have to end for a planning system
to operate that required numerous hours to accomplish, thus efficiency and cost time. By
adopting the SAP S/4HANA, the clients can execute the planning cycle in the case of minute
in place of hour and without requiring to end the manufacturing in a procedure. Since the data
are consolidated, the companies may end planning in silos as well as organise operational
planning through the sectors. In place of every product line carrying out the personal pricing
and accounting approach, the organisations achieved reflectiveness over the whole functions.
The institutions advanced by upgraded logistics as well as pricing because of the consolidated
inventory of the stock keeping units (Roso, Fatimah and Rifa'i, 2017).
S/4HANA is also beneficial in decreasing the IT cost. The companies, which had adopted
traditional version of ERP software, the information technology was the important cost
centre. Preserving the present customization to the resolutions and making extension required
some time and sources every year. In a case where the clients updated the systems to
S/4HANA, they reduced various customizations and often subcontracted the conservation as
well as administration of the environment, resulting in significant time saving that could be
forwarded to additional valuable tasks. Moreover, with user’s experience in relation to SAP
Fiori, in-place developer may create applications for the user, more rapidly, fast tracking the
value end-user are capable to excerpt from the additional different abilities. In this way, the

ESSAY 7
benefits from central data encompass beyond the capability for planning through feed
storage. On a manufacturing side, reflectiveness in quality control as well as production
implementation outcomes in recognising the potential problems earlier and advancing whole
performances. The itinerant abilities of a platform permit the user, whether secluded or on a
manufacturing floor, to involve information and trace the development of the work. As per
the outcome, the companies may run closer to actual-time, enhancing the promptness where
the problems are solved and decreasing inadequacies initiated by data lags (Badii, et. al,
2017).
Additionally, a decision whether to shift towards SAP S/4HANA is very difficult problem
facing most SAP clients. The promise of digital transformation is only the particular driver
supplemented by increasing investment of SAP in a stage and the looming plan to remove
continuing sustenance for ECC. Under Armour as well as SAP have encouraged in the case
studies while the studies are issued. The company does not publish bad information in the
circumstances (Singh, 2917). There are more business drivers and mechanical deliberations,
which may substantially influence the path forward of customer. The company takes
suggestions from SAP replacements such as Accenture and Deloitte as to whether to apply
the SAP product. This selection is significant while this comes to SAP solution provider who
may be helpful for getting the best from the SAP investment or for the best position of
business for developing the digital economy. In addition, when alliance between SAP and
Deloitte has the longer past and is greatly identified for superiority, there are various motives
to select to work together (Salmon and Wild, 2016).
The case study of Versum Materials is very important case study to discuss. Versum
Materials (Versum) is the electronic materials organisation, which delivers leading specific
products to semiconductor sector (Avila and Terzidis, 2017). The organisations have one
hundred thirty two facilities, thirty-four places, as well as fourteen production plants in all

ESSAY 8
over the world. In October 2016, after the separation from air products, the company
continued to rely over the information technology system of former parent company for
supporting the businesses in the TSA. On the other hand, this was the main concern for the
company for transforming the functions and support speedy development. As such, the
company required to apply the personal fully enabled SAP ERP system to get the targets and
ease the exit from transition service agreement. Accenture actually provided on the project,
bringing forward the solutions, which has rendered with the leading-edge ERP solution that
accelerated the exit from TSA and permitted to get functions on-going as the separate
corporation.
Accenture and Versum worked together to provide the first go-live of SAP S/4HANA v1610
Enterprise Management. From designing to assessing to disposition, the application went
easily with negligible interruption to the business of company. According to this program, the
company required the new solutions to help warehouse operator track, records, as well as
procedure containers. The Accenture and Apple partnership team occupied itself at Versum
before rapidly co-designing and making the tradition iOS container tracing mobile app. This
app makes able quicker workflow administration and real-time update of the SAP system of
company (Wunderlich, et.al, 2018). In this way, the consistent project deliveries as well as
the fit-for-purpose solution were substantially important. Therefore, Accenture and Versum
worked mutually to make sure standardization, harmonization, scalability, and simplification:
Keeping it simple and enhancing over time. These companies also make sure the
development through the accessible platforms (Le and Lehmann, 2016).
From the above discussion it is clear that SAP S/4HANA is successful and efficient ERP
framework rendered by SAP. However, it is clear that the most of the SMEs are not able to
identify the advantages of SAP S/4HANA for the business. In the case, when business has
other priority in place of adaptation to SAP S/4HANA, then this is fine. It can say that the

ESSAY 9
wrong facts and absence of information about SAP S/4HANA must not be the purpose.
Various businesses are not still sure for taking move towards SAP S/4HANA because they
want to know the few more examples through various businesses as per the size. Therefore, it
is accurate, but there are some issues. As per this reason, the projects of big company would
take period; still they have already lodged over the passage of SAP S/4HANA at a great
level. In order to decrease maintenance costs in upcoming period as well as to identify the
business’s process, most of the businesses wish to re-assess the client extension. The
roadmap of SAP S/4HANA covers functionality of SAP ECC including the sector-specific
norms as well as considering the different innovative implementation elements in cooperation
with the customers.
In this way, the best manner to shift to SAP commercial suite is upon SAP HANA and next
to levy the packages that have explanations. In a current period, it comes in the form of SAP
Simple. Presently, the organisations are in the process of developing values calculator in
relation to the businesses aimed at SAP S/4HANA that would drill down to compute benefits
at own solution levels. Within the SAP Businesses suite on SAP HANA, a customer already
has choice of assessing the commercial matters enable by TCO saving and optimization. The
assessments are similarly effective for SAP S/4HANA.

ESSAY 10
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ESSAY 11
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ESSAY 12
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