Comprehensive Report on SAP S/4HANA Finance and its Advantages

This report provides a comprehensive overview of SAP S/4HANA Finance, exploring its historical context, benefits, and its distinction from SAP ERP FICO. The report highlights the advantages of using SAP S/4HANA Finance, such as real-time data availability, flexibility, and global coverage, which are crucial for businesses like KPMG and Ernst & Young. It also discusses the software's ability to facilitate financial planning, analysis, and reduce data duplication. The report delves into the technical aspects, including the use of cloud technology and the ability to store data efficiently. Furthermore, it touches upon the transition scenarios for organizations moving to SAP S/4HANA Finance and its role in streamlining financial processes, providing a single source of financial truth, and supporting faster reconciliation. The report also covers how the software aids in making informed business decisions through real-time financial data and analytics. The report is available on Desklib, a platform offering study resources.

Research Paper

Table of Contents
INTRODUCTION...........................................................................................................................1
Historical overview of SAP S/4HANA Finance.........................................................................1
Difference between SAP S/4HANA Finance and current SAP ERP FICO................................2
Benefits of SAP S/4HANA Finance for businesses....................................................................4
Case Studies of companies and the issues they faced migrating to SAP S/4HANA Finance....7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Finance is the department which works in order to deals with monetary aspects of
organisation. It is important that this department must perform operations in effective way
because finance is important for smooth running of business. These days, there is use of different
software which is effective and significant for working of association. SAP S/4HANA Finance is
software used by financial department. As there are many financial transactions which has to be
entered to maintain records for accounting purpose (Herićko, 2018). With the help of software it
is easy to access records and make fast decisions in organisation. In this report, KPMG, Ernst
and Young are covered. In this report, there is discussion about overview of SAP S/4HANA
Finance, its benefits, difference between SAP S/4HANA Finance and current SAP ERP FICO.
At last 2 companies using SAP S/4HANA Finance and facing issues.
Historical overview of SAP S/4HANA Finance
SAP S/4HANA Finance is a financial application used in ERP platform. This is the
application which provides real time information. Primarily, SAP S/4HANA Finance known as
SAP Simple Finance. It was launched in order to deal with problems which arise in initial days
such as transactional, analytic problems. SAP Simple Finance is important technique to manage
financial and accounting position of organisation. With SAP module, managers of organisation
are able to analyse performance of organisation in industry. This benefits in competing with
other firms and aims at improving organisational position. In order to deal with financial
problems of organisation, SAP HANA can be used as projection problems and implementing
solutions. SAP HANA S/4 is the technology works on the basis of cloud technology which helps
to store data under one roof which can access by stakeholders (Jacobs and Matiana, 2017).
This software works through online sources. It is the software which complies different
departments of organisation in one single cloud. SAP HANA is the software which provides
huge information instantly. This system supports planning related to financial department, assists
in accounting, closing books of accounts, etc. this also provides knowledge about event which
may happen in near future. This software is flexible and consumer friendly, this is effective and
significant for making changes in plans working style. With this software, if manager wants to
expand business, then they are able to perform planning with forecasting of financial needs.
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With the help of SAP S/4HANA Finance confidential informations can be transferred
from one place top another. This system launched with aim to assist financial professional. There
are some risk associated with business operations, so this can be identified with this software and
corrective actions can be taken to deal with them. This is the software which helps in
maintaining books of accounting in systematic manner (Kalaimani, 2016). There are various
budgets which has to prepared in order to give appropriate information. This is effective and
significant for framing budget aperiodically and they can accessed by stakeholders also.
There are three transition scenarios which motivates organisation to move into SAP S/4
HANA-
This is new implementation which helps to perform business operations in effective and
efficient manner. This technique is important an significant for performing business operations
who do not have HANA ERP.
System conversion can be done in order to improve working style. With use of SAP
HANA there is no need of up-gradations, but there is requirement of transformation of data.
Landscape transformation could be done with implementing SAP HANA S/4finace. This
is effective for consolidation of operations.
Difference between SAP S/4HANA Finance and current SAP ERP FICO
SAP Business Suit4 HANA or SAP S/4HANA is next generation ERP because it
works on HANA in memory computing platform. It was previously called SAP Simple finance,
is the first business application developed for SAP S/4HANA platform. SAP S/4HANA covers
all day to day process of an enterprise like plan, product, cash, request, service and other core
capabilities. This software is digital core of enterprise of the future, it allows make use of internet
of things so one can connect devices to digital core (Khatri, 2016). It simplifies data by storing
data in form of columns instead of rows. Simpler data model and improved user experience
results new business capacities and improve productivity of business. This is design to overcome
the traditional barriers between transactional, analytics and planning systems to provide better
insights. For example, a business decision maker can use this software to model data and create
forecast of potential decisions using real time financial data from various systems. The main
advantage of the software is, processing speed combined with integrated features for the various
financial functions , such as financial accounting and management accounting. Due to this, SAP
S/4 HANA allows for a much faster reconciliation of financial processes such as the quarterly
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close and provides a single source of financial truth for the organisation as whole. This software
has ability to use real time data with analytics to model and predict the impact of changes that a
company want to make.
SAP ERP FICO is a core functional component in SAP ERP central component that
allows an organisation to manage all of its financial data. The purpose of SAP FICO is to assist
companies generate and manage the financial statements for evaluation, reporting and help with
effective business planning and decision making. It consist of two models that is SAP Finance
(FI) and SAP controlling (CO), which is used for specific financial processes. SAP FI deals with
overall financial reporting and accounting while CO deals in reducing planning and monitoring
costs. SAP CO and FI released as separated model but later these were integrated (Nieslanik,
2017). SAP FI allows companies to generate financial statements such as balance sheet or profit
and loss statements for reporting and analysing. It has some sub module which handle
accounting processes, general ledger, accounts receivable, accounts payable, asset accounting,
bank ledger and consolidation. SAP CO model supports processes to plan, report on and monitor
costs from business operations. This has some sub modules which handle specific processes.
These are cost elements, cost centres, profit centres, internal orders, profitability analysis and
product costing. These helps the management evaluate the financial reports and make decisions
accordingly.
Overall in comparison of both SAP s/4 HANA and SAP FIN CO, the SAP s/4 HANA is
more famous and more advanced in compare to other one. It is an user friendly software, gives
real time experience to its user, it is fast as this uses the HANA memory and this is considered
secured also (Paulus and Zeibig, 2015).
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(Source: SAP Simple Finance, 2017)
SAP ERP Financial transaction is simulation of all profitability, finance accounting and
controlling document. There are sometimes errors of omission because there are possibilities that
they miss to enter it. While SAP Simple Finance covers all these documents. Hence it is easy for
organisation to work with SAP Simple Finance software. While in SAP HANA S/4 Finance
software have universal entries (Plattner and Leukert, 2015). This gives overview about financial
position of company in effective way and it is easy for investor to analyse financial positions.
Managers of association also able to make fast decisions and able to analyse market in effective
way.
Benefits of SAP S/4HANA Finance for businesses
SAP S/4HANA Finance is famous among corporate associations. This is because this
software has some good qualities which overcomes traditional software approach. SAP
S/4HANA Finance is not only used by big organisation. This is used by small scale business
also, because this is one of the best tool through which financial projection of data can be done.
There are many hurdles which affects business operations of organisation, so it is important to
learn from external market also. There are many benefits of SAP software which helps to
perform business operations of KPMG and Ernst and Young.
KPMG and Ernst and Young are the associations which deals in services sector, but they
have operations in different parts of world. In this case, with the use of SAP S/4HANA Finance
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Illustration 1: SAP Simple Finance

it is easy to perform business operations (Rajšp and et. al., 2018). There are different operations
performed by business organisations, so it can be entered in SAP software through which it can
be accessed at headquarter. Financial position has to be known by stakeholders, hence it is
important to store financial information in appropriate manner. Some benefits are discussed as
under-
Flexibility and efficiency is one of the biggest advantages for organisation to work with
SAP Finance software. With the use of SAP Finance there is more flexibility in business
operations because financial information of KPMG and Ernst and Young can be accessed by top
level of managers.
Availability of real time data is also possible with the help of SAP Finance software.
With the help of SAP it is easy to get real time data. While with use of other software, annual
reports are dispatched. This is important and beneficial because it provides current and
appropriate financial data (Ritter and et. al., 2016). This makes stakeholders satisfied and
increase brand image of ernst and young, KPMG. If organisations wants to acquire, merger
business then top level managers can also make prominent decisions.
Global coverage is also possible with use of SAP Finance software. This is important and
significant for creating brand image of Ernst and Young. These days globalisation is also one
source for expansion of business. When financial data can be accessed at anywhere and anytime,
then this helps to promote business at global level. There are many competitors in service
consultancy services also, so this is effective and signifiant for growth of organisation. There is
requirement of funds from external sources, so this software helps to give gist and summary of
financial data at quarter, half yearly and yearly end.
Information gathered with the help of SAP HANA Software is trustworthy and of use. In
finance department, there is requirement of different information which is authentic and relevant
for generating important information (Rouda, 2016). Financial data is essential for performing
business operations in effective and efficient manner. There is no delay in delivering information
and helps to convenience external parties. There are many departments in Ernst and Young, such
as marketing, research and development, so this helps to perform business operations in effective
and efficient manner.
Financial planning and analysis is also with use of SAP HANA Software. There is
requirement of planning in business organisations such as business expansion, purchase of
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technology, etc. managers can plan operations and future estimations can be done. According
to..... in case, there is need of alteration in business policies, then this software helps to make
changes in effective way because market analysis is done and future prospects are discussed
(Salmon and Wild, 2016).
Less possibilities of duplication in data is one of the most effective benefit for operations.
In digitalisation, there are possibilities of duplication of data, but with use of SAP HANA
software, there is no such issue arise. In order to get good returns, it is important to upgrade SAP
HANA needs up-gradation up-to 1.0 version. This helps to perform business operations with
more deliberate way. Sometimes, due to duplication of business operations managers are not able
to complete task on time and this creates hurdle in development of business.
Transactional and analytical data can be achieved with use of different tactics. This is
also benefit for organisation. There is requirement of different data in order to perform business
operations. SAP HANA is the software through which previous year data, current position and
future projection can be analysed. For instance, investor wants to known future growth of
business in financial terms, so this software helps to give appropriate projection and then
business actions gives up- to the mark performance.
Centralised financial system can also achieved with SAP S/4HANA Finance software.
Ernst and young and KPMG are the company which operates all over the world. It is not possible
for top level managers to be present at every time and everywhere, hence this software helps to
keep watch on operations of association (Sampat, 2016). This helps to portrait good image in
industry. With centralised financial system, management and cost accounting could be
understood by different departments. It is easy to set budget for marketing, advertisement,
purchasing and other financial benefits. There is requirement of data in order to operate in
effective and efficient way. KPMG is consultant firm, which provides services to clients. They
are being surfed by number of people, so this must be important and relevant for providing
appropriate information.
Good speed in business operations can achieved with help of SAP HANA software. It is
important to make alterations in business operations, because in external environment changes
are taking place very frequently. When services are speedy and good, then this is effective for
accounting purpose and relevant information can be provided by organisation. There are various
budgets which has to framed by financial department such as production, finance, sales,
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purchase, etc. Sometimes, there is difference in cash book and passbook, so with the help of SAP
HANA software, it is easy to find error and rectify it.
One advantage of SAP HANA software is that this motivates workers to work with smart
techniques at workplace (Vollmert and et. al., 2017). KPMG and Ernst and Young have numbers
of payment which has to made. This includes online payment, bill generation, etc. This is
effective for performance of business because there are less possibilities of error. In this
approach there is less use of manual hum,an resource and workers are satisfied that clients are
satisfied with the services of organisation. This increase brand image of organisation. This also
helps to provide knowledge about working style of employees and hence there are less
possibilities of duplication of actions.
Case Studies of companies and the issues they faced migrating to SAP S/4HANA Finance
There are some issues which arise with Ernst and Young which affects business
operations in negative way. SAP HANA is the software which keeps performing operations such
a management accounting, financial accounting, reconciliation of data, etc. in faster way and
data is stored at one place. This helps top level managers of organisation in gathering and
providing information. Apart from this there are some issues which arise while working with this
technique.
Ernst and Young is using this software to improve working style off overall organisation.
SAP HANA S/4 Finance is part of digital technology, so managers of Ernst and Young face
technological issue to deal with it (Zaidi, 2017). There are some technological complexity which
may arise while working through this technique. In order to work with this approach, there is
requirement of central system, SLT server, etc. there is requirement of regular updates, which
affects business operations of Ernst and Young. While employees of Ernst and Young use this
software to transfer data from one place to another, then system source is not reliable. This
affects business operations in negative way.
Apart from technical complexity, there is requirement of capabilities in order to work
with SAP HANA S/4 Finance software. This software is easy and simple to use use but there is
complexity in applying Master Data Governance (MGD). This affects working style of workers
and there is requirement of proper channel to convey information.
KPMG has big brand name in consulting services. They are also working with this
techniques, there are confidential issue. SAP HANA S/4 Finance works on cloud technology, so
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there are possibilities of hacking of data. In KPMG there are different departments through
which finance department has to deal (Herićko, 2018). There are many informations which are
confidential and has to share with particular departments, this leakage the information and gives
negative impact on perform. There is editing of information which arise risk of
miscommunication and gives negative on communication channel of organisation. Finance
department of KPMG has to perform operations in effective way which is significant for
achieving targets, but if confidential information get leaked this gives negative impact.
Sometimes, there are some stakeholders who have KPMG's internal financial information, this
gives negative impact on image of organisation.
There is one more issue of data customization. In this software, financial information of
KPMG stored gets customized accordingly. This sometimes proves to be negative for
organisation because misleading information delivers to clients. This hampers image of KPMG
in consulting industry.
CONCLUSION
From the above discussion, knowledge about SAP HANA S/4 Finance get enhanced.
This is the software which helps to perform operations of financial departments such as
reconciliation of data, sharing of information, maintaining books of accounts for management
accounting, etc.
Global coverage, information gathered, financial planning and analysis, less possibilities
of duplication, etc. are some benefits which arise with use of sap HANA S/4 Finance software.
With use of this software, it is possible to work according to change in business policies. This
keeps to financial data of company in effective way and provides appropriate informations to
stakeholders. At last, there is discussion about some issues such as technical complexity,
requirement of capabilities, etc. which arise at work place due to use of this factor. This affects
business operations in negative way.
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REFERENCES
Books and Journals
Herićko, M., 2018. Impact of an Introductory ERP Simulation Game on the Students’ Perception
of SAP Usability. In Learning Technology for Education Challenges: 7th International
Workshop, LTEC 2018, Žilina, Slovakia, August 6-10, 2018, Proceedings (Vol. 870, p.
48). Springer.
Jacobs, D. and Matiana, S., 2017. SAP S/4 HANA for Financial Accounting Associates: SAP
Certified Application Associate.
Kalaimani, J., 2016. Introduction to SAP Enterprise Software. In SAP Project Management
Pitfalls (pp. 1-23). Apress, Berkeley, CA.
Khatri, V., 2016. Managerial work in the realm of the digital universe: The role of the data triad.
Business Horizons. 59(6), pp.673-688.
Nieslanik, R., 2017. Optimization of Order and Purchase Process in SAP and Integration with
Print System (Doctoral dissertation, Masarykova univerzita, Fakulta informatiky).
Paulus, T. and Zeibig, S., 2015. Controlling & Industrie 4.0 aus Sicht eines Maschinen-und
Anlagenbauers. Controlling. 27(8-9), pp.504-509.
Plattner, H. and Leukert, B., 2015. The in-memory revolution: how SAP HANA enables business
of the future. Springer.
Rajšp, A. and et. al., 2018, August. Impact of an Introductory ERP Simulation Game on the
Students’ Perception of SAP Usability. In International Workshop on Learning
Technology for Education in Cloud (pp. 48-58). Springer, Cham.
Ritter, D. and et. al., 2016. Benchmarking integration pattern implementations.
Rouda, N., 2016. Extending the Capabilities and Value of SAP ECC in the Modern Enterprise.
Salmon, J. and Wild, C., 2016. First Steps in SAP S/4HANA Finance.
Sampat, A., 2016. Expert tips to Unleash the Full Potential of SAP Controlling. Espresso
Tutorials GmbH.
Vollmert, S. and et. al., 2017. Processing currency data between an in-memory database and a
display. U.S. Patent Application 15/139,871.
Zaidi, R., 2017. JavaScript Essentials for SAP ABAP Developers: A Guide to Mobile and
Desktop Application Development. Apress.
Online
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through:<https://www.tutorialspoint.com/sap_simple_finance/>.
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through:<https://www.sap.com/india/products/s4hana-finance-erp.html#key-benefits>.
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s4hana/>.
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