SAP S/4HANA Review: Historical Overview, Differences with SAP FICO, Benefits, and Companies Using It

This article provides a review of SAP S/4HANA, including its historical overview, differences with SAP FICO, benefits, and companies using it. SAP S/4HANA is a digitalized integrated business algorithm that is superior to other business platforms in terms of speed, accuracy, data integrity, efficiency, and total effectiveness. It includes universal updates on real-time analytics and data streamlining abilities, which ultimately connects financial models excellently, creating a super sense of financial perfection.

Table of Contents
SAP S/4HANA Review..................................................................................................................................1
Historical review of SAP S/4HANA...........................................................................................................1
Difference between SAP S/4HANA and SAP FICO....................................................................................2
Sap FICO framework............................................................................................................................3
SAP S/4HANA enterprise management framework.............................................................................5
Benefits of SAP S/4HANA.........................................................................................................................6
Companies using SAP S/4HANA...............................................................................................................7
List of reference...........................................................................................................................................9
SAP S/4HANA Review.
Historical review of SAP S/4HANA
The amount of information in business firms is increasing at an alarming rate
hence the vital need of sufficiently controlling and disseminating raw data in
the firm departments. In today’s business world, in order for companies to
match up to the rising competition, they need to be creative, dynamic and
researched based to survive stiff tech-based competition and to be vital and
afloat in a regularly evolving tech-based innovations in this information era,
this is basically where data processing algorithms gets into the game. Most
of the world’s most renowned fortune 500 companies are investing
tremendous sums of money in availing the much needed information
systems aiming to make their businesses more effective. This information
(IF) are made up of groups of elements and structures that is put together in
a manner that enables the running of the intended function (The institute of
Electricals and Electronic Engineering, 2010). Examples of such information
systems include the Enterprise Resource Planning (ERP) Systems, Product
Data Management (PDM) Systems, Customer Relationship Management
(CRM) Systems and Supply Chain Management (SCM) Systems. While the
value of these systems cannot be over emphasized it is important to note
that, among all these varieties of Information Management Systems, the
Enterprise Resource Planning (ERP) systems which over time has
undoubtedly be the most celebrated tech-based business management
systems, granting companies the value of real time capabilities and flawless
communication. ERP is a software solution that works by integrating
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businesses functionalities and information sourced from different systems
into one system to be accessed within a firm (Wognum and Krabbendam,
2010). (Shehab and Supramanium, 2011) mimicked an ERP System to an
integrated software package that is capable of managing, controlling and
having general administrational control on the available organizations
resources. In accounting, which is one of the most important departments of
any business firm, ERP is dominantly used as a database management
software that is facilitating and supporting all the financial processing and
operations in the business which include the manufacture sector, finance
marketing aspects, human resources management and so much more. In
simple terms, the primal target of an ERP is to have a single, fully integrated
financial algorithm for the entire company and its departments. The dynamic
change of the entire company’s information accrued from all functional
departments, processing and operations etc. demands that an ERP system
have a very high level sophistication hence, the companies through their
departments are required to set aside enough resources to plan, train its
staff for an sophisticated implementation of an ERP algorithm. The demand
and cost associated with these ERP systems gave rise to vendors such as
SAP and Oracle. This paper will discuss SAPS ERP system with particular
emphasis on SAP S/4HANA finance and shall attempt to give a brief historical
overview of SAP S/4HANA, its differences as with the current SAP ERP FICO
and the benefits of SAP S/4HANA Finance for businesses.
Difference between SAP S/4HANA and SAP FICO
SAP is an acronym of System Application Products. As I mentioned earlier,
SAP is one of the most widely used and quality accredited ERP application.
SAP uses ERP algorithms in seeking to increase the quality of the services
that are offered by the organizations’ resource planning management control
and absolute control of all operations. SAP algorithm special kind of
algorithm software that works by integrating activities across functional
departments, starting with products planning, parts purchases, inventory
controls, product sales and distribution, plant maintenance, human resource,
quality control as well as financial control. SAP software applications can
integrate many functions but SAP S/4HANA Finance is our main focus in this
study.
Considering the fact that, it is virtually next to impossible not to encounter
the confusion around SAP S/4HANA Finance, therefore, it is of paramount
importance to highlight all information about SAP S/4HANA and all its
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functionalities aimed at making distinguishable from other related financial
algorithms and thus making it understandable, and for me to be able to
generate an understanding on what SAP S/4HANA Finance is. To make this
fundamental understanding easier, it is best to begin with the history
relationship between the SAP algorithm and the SAPS/4HANA, since SAP
HANA is highly related to both SAP S/4HANA Finance and SAP. So what is SAP
S/4HANA Finance? Well, before I give an intricate solution to that crucial
query, let me start by defining what SAP S/4HANA is. SAP S/4 HANA is the
SAP ERP version 6.0 algorithm that is fully and sufficiently capable of
executing on SAP HANA database. SAP S/4HANA Finance sinks further in, as
in; important elements components of the FI/CO algorithm have been
engulfed into it to improve its performance to its maximum level thus
advantaging the SAP HANA’s potential. SAP’s, SAP (version 1.0) that was
released five years ago, in the mid of 2014 year was an add-in to SAP HANA
optimization version for the Financial Accounting algorithm in SAP Business
systems. A year later, 2015, SAP Simple Finance (version 2.0) was released
to the public and business use as part of the SAP S/4HANA product. SAP
Simple Finance version 2.0 became the designed and recorded successor of
SAP Simple Finance version 1.0. The term, SAP Simple Finance went on to
become obsolete within six months after the release of its second version, by
the month of September 2015 and was replaced with the term SAP S/4HANA.
Currently, S/4HANA is available as both cloud and on-premise versions. The
cloud version is continuously been improved with preceding release in
approximate subsequently close release dates. The 1503 release date was
preceded by 1505, 1508 and 1511 respectively having a unique naming style
technique which is based on two categories; the first one begin the number
15 which picked from the year of its release while the second begin number
based from on the month of release. For instance a 2015 November release
will be named 1511.
I would confidently proclaim that, SAP S/4HANA epitomizes what can be said
to be the power of unity. According to my view, introducing the universal
journals is taking SAP closer to been a single accounts transaction algorithm.
This means that, the posting to various individual ledgers, for example,
material ledger, Asset Accounting (FI-AA) and CO, has been swapped by
posting to one unified journal. In trying to explain this in operational terms, I
would say that every business in the SAP General Ledger or Classical Ledger,
CO has been put in a unified journal, of course with an exemption of the co-
hosting based profitability analysis. So, why is this big deal? Well, it is
definitely a big deal because, I dare say, in one fell Swoop, SAP through the
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SAP S 4/HANA accounting module has greatly reduced the numerous
instances of data redundancy and duplication across all FI modules. Yes, I
get it, this spells despair for all those of you in the coding block but I’d say,
do not despair because ACDOCA can be extended to include the coding
block. One of the deeply painful aspects of implementing FI/CO in an
organization has been the delayed and manual reconciliation of CO postings
to FI. However, since the advent of SAP’s S/4HANA Finance, this is now
instantaneous and automatic. The question hanging on everyone’s mind is,
what is FI-CO and how is it related to S/4 HANA Finance.
Well, SAP S/4HANA Finance is the latest version of SAP HANA which is an in-
memory, columns- based, key database manager produced and marketed by
SAP whereas SAP-FICO which essentially stands for Financial Accounting and
Controlling is an important module of ERP and both FI and CO modules store
the financial transactions data. I could say that, SAP S/4HANA is a product of
SAP HANA which is basically a data report tool in SAP and is a technical
module whereas SAP FICO is a functional module where one could manage
all activities related to accounting and is integrated with various modules
such as MM, SD and PP etc.
Sap FICO framework
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FI
Internal factors
CO
External factors
 Balance sheet
 Cash flows
 Statements on
incomes
 Reports on cost
center
 Profits, loss and sales
analysis
SAP FICO

In summary, this SAP FICO logical framework is divided into two major parts
diving the FICO into financial and control; the internal and the external
factors which each having balances sheets, cash flows, incomes statements
and reports on cost center, profits, loss and sales analysis respectively as
examples.
SAP S/4HANA enterprise management framework
In summary, SAP S/4HANA enterprise management framework can be seen
to have internal control on human resources, supply chain management,
manufacturing sectors and its departments, finance, asset management and
in sales.
SAP S/4HANA is a digitalized integrated business algorithm and therefore it is
a superior compared to other business platforms in terms of speed,
accuracy, data integrity, efficiency and total effectiveness since it includes
universal updates on real time analytics and in data streamlining abilities
which ultimately connects financial models excellently which creates a super
sense of financial perfection. These points are discussed below as follows:
Cost, in terms of cost, we would like to see SAP effects in two dimensions.
First, the original cost buying the soft wares and custom installation process
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SAP
S/4HANA
SAP S/4HANA human resources
SAP S/4HANA supply chain management
SAP S/4HANA manufacturing sectors and its departments
SAP S/4HANA finance
SAP S/4HANA asset management
SAP S/4HANA sales

is moderately high but SAP is a one complete business tool which would
solve financial tasks that could be completed by several other business tools.
Therefore SAP is relatively cheap than buying three financial tools to solve
problems and to provide technical assistance financially that only SAP is
capable at glance. Secondly, this system works by integrating many business
tools to one combined tool therefore, as a results business decision making
would be made easily and this saves cost. (Lim and Yap 2016)
User interface, this is the best part of using SAP as a financial tool. Its Fiori
screens are designed to produce unmatched results basing on its five
building principles which are based on simplicity, roles taking, responsibility,
experience and delighters. The SAP Fiori is further divided into three major
parts basing on their unique functionalities: Transactional apps which deals
on with processing of business requests such as leave and travels requests,
Fact sheets which deals with processing of key information and running
business transaction and lastly the analytical SAP apps, which its main duty
id to provide the business with real time information. As a result of Fiori
screens, SAP is made a superior financial tool which is advantaged by its
unmatched control and ability to run on hand held devices. (Tutorialspoint,
2016)
Simple, the SAP algorithm is simple to use, thanks again to the supreme
nature of the Fiori screen. In the previously mentioned point we were basing
Fiori advantages based on its abilities to transact and perform duties, here
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SALES HUMAN
RESOURCES
PROCUREMENT FINANCE
SAP FIORI

are focusing on its usability. The Fiori version 2.0 is made with interfaces that
allows user to easily access overviews pages, work list and projects and
business reports which propelled by its ability to connects with clients and
unlimited access to big data. It also makes managerial supervision easy by
controlling the IT landscape, memory space and the ECC structure
(Poschadel, 2019).
Benefits of SAP S/4HANA
Risk control, According to Targu-Jiu 2019, SAP algorithms, specifically the
ECC structure, compliance and entrepreneurial risk automation are capable
of successfully identifying and notifying the administration of suspicious
activities and transactions which when watched cautiously can be used
significantly reduce risks. Due to the unstable and usually fluctuating nature
of market prices, global currencies strength against dollars and inflation
rates, transacting business globally is made twice harder and fraudulent.
Therefore SAP is an important business tool to curb the potential financial
risks. It makes fraud detection easier by eliminating the excess and
unnecessary tables in transactions, leaving only required ones which ease
the task of scanning and validating tables. This is usually performed in the
powerful 4HANA platform.
Financial planning, SAP is a super financial tool which has unlimited access to
unrestricted financial data and real time data which can be used to create
excellent financial plan. For a moderately big company a complete financial
plan takes the planners up to 4 weeks or just a minimum of three weeks, but
when SAP is used the process is usually completed by about half the
standard time, that’s it takes the financial planners using SAP a maximum of
two weeks to complete the task. (Zarantech, 2019).
Efficient, SAP S/4HANA is unique kind of algorithm which is been updated has
the number of day elapses, in simple terms SAP S/4HANA is regularly
updated at least once every year and using it means that u won’t miss
technological updates run out of business. It is therefore a sufficient business
tool that is advantages since it swings with the technology. SAP since it first
ever release in the year 1972, the first tier business developed has been
modified and its dimensionality functionality fitted to fit the ever evolving
technology and has survived through all the time tests. Therefore, each
technical company or rather software industry is a mandatory requirement to
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have sound and fit financial and technical algorithms that has the ability to
leverage technical performance, refining and implementing of business
sheets, creating a friendly user interface, embedding BIs and integrating
business partners.
Companies using SAP S/4HANA
Since SAP S/4HANA came to limelight, it has attracted a lot of companies,
who are interested in applying SAP services into their platforms in a bid to
change their service provision quota. In some few years ago, very few
companies used SAP, but today according to Enlyft formerly iDatalabs 2019,
SAP S/4HANA has at least 1.3% in enterprise resource marketing market
share and that its percentage of market share is constantly and steadily
rising leading to a statistical prediction that by the year 2025 SAP S/4HANA
will be controlling at least 70% share of the market. In terms of leading
companies and industries using the SAP S/4HANA, soft-wares and
Information Technologies industries were the best users of SAP S/4HANA
each having 16% and 13% percentages of SAP S/4HANA market shares
respectively. The transition to SAP S/4HANA is usually a difficult, time taking
and also expensive procedure and most companies have a story to tell after
successfully managing to transit to SAP S/4HANA algorithms. We will be
focusing on a few companies that managed to install SAP S/4HANA in India
namely: Wipro limited, Mawai InfoTech limited and vCentric technologies
limited.
Wipro limited is a tech company based in India which provides tech services
and products. Its head office is in Bangalore India. According to Ktern 2019,
while transiting to SAP S/4HANA business is not as usual since the business
partner approach is altered. The business partner is a tool available in most
SAP application such as SAP business suite in applications including credit,
collection management and others, it serves as an important utility since it
can act in both places of business sellers and buyers and saving of all
addresses and business connections used. As a big technical firm Wipro
limited had problems dealing with business partners because it is impossible
to install this program on the new SAP S/4HANA while still using ancient
tables in financial sheets. Due to high numbers of business transactions
performed by Wipro limited on daily basis, their business during the
installation period was affected and slowed down which reduced their
earning also. To solve these types of problems, SAP developed a new
application called CVI structure which has the ability to link clients’ and
sellers’ table sheet and the SAP S/4HANA.
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Mawai info tech limited is Indian Tech Company situated at Noida India and is
an ISO 9001: 2008 certified. For a long time about 20 years the Noida based
company has been providing and using SAP products in its services and
products provision. According to the company through their website, SAP has
over 250000 clients and up to 80% of SAP clients are operating in mediocre
size business platforms. So basically, basing on their installation view, the
process is fit for business growth since it is done on three merits; on device,
on premise and on demand. However, according to Ktern 2019, installation
of SAP is challenging experience since a lot of applications might not run
simultaneously due to compatibility technicalities and possible loss of data
during the financial migration process. Therefore, as a result of such
technicalities and to prevent runtime errors it is important to run a readiness
assessment. After having complication during financial data migration,
Mawai limited is now cautious while performing this process and calls for
step by step process of installation while performing consistency tests after
each successive step to ascertain a successful installation. To avoid data
loss, it is important to cloud back up data before installation of SAP S/4HANA.
According to Enlyft formerly iDatalabs 2019, vCentric technologies limited is
the leading SAP service provider in India having been a SAP S/4HANA for
consecutive three years. The company was founded in the year 2005 and it
has its head office situated at Banjara Hills India. Before vCentric
technologies limited reached its limelight it in SAP S/4HANA it was faced by
functionality challenges during their custom installation procedure. In terms
of dimensions and functions SAP ERP and SAP S/4HANA has many differences
for instance classy cash is not readily available SAP S/4HANA and this pose
an operational risk. The entire administrational of the company has to be
creative and adoptive enough to adopt quickly how the new system work
and which functions and functionalities replaces each other.
In general SAP S/4HANA is an interesting commercial business tool has assist
transactions by making them easy, changing the user interfaces for instance
the use of the Fiori screens, controlling financial risks and importantly its
assistance in financial planning. However, like everything it also has some
disadvantages attached to its cumbersome and challenging installation
procedure marked by problems in business partner approaches, financial
data migration, functionality changes and many more other minor
challenges.(Kollár, 2015). In conclusion, SAP S/HANA is the business game
changer. It’s the best.
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Targu-Jiu. (2019). Risks in ERP SAP [online]. 10 May 2019. Available from:
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