Differences between S/4HANA and ECC.
Many IT and business people are curious about the innovations and facilitation in S4/HANA and speculating about the new features and business doles of S/4 HANA implementation. In this articles I trying to acme the main differences between SAP S/4HANA and ECC.
Single data Source
The technical designs of numerous module components, such as those for FI, AA, CO, CO-PA, and ML, are combined by S4/HANA into the succinct best fit single line table ACDOCA, also known as the Universal journal. Numerous combination and index tables are eliminated. Now, data prefers to be added to one table rather than many tables, substantially reducing the data footprint.
MATDOC is likewise a brand new line item-based table for stock control and it gets rid of more than 26 database tables. Material files may be saved in MATDOC however now no longer in MKPF or MSEG tables.
Combining CO and FI
In ECC, CO primary cost elements are assigned to FI GL accounts. In S4H, the GL account and cost element are stored in the same field of the universal journal. As GL accounts, cost components (both primary and secondary) are now generated and kept (in FS00) with the appropriate cost element category. There is no requirement for reconciliation at this time (unlike with CO to FI). Additionally, period closing will be quicker.
Hana database
ECC can be deployed on Oracle, IBM DB2, and other databases, whereas S/4HANA runs exclusively on the Hana database. Underlying the layout principles is the in-memory capabilities of HANA, which forms the foundation of S4H’s design.
In-memory databases read data much more quickly compared to conventional databases since information is analyzed directly from memory, i.e., data are continually present in main RAM (even while write operations take place on hard discs) (fetching the data from hard disk)Hana’s columns-based tables offer quicker access (as the most effective affected columns want to be studied in a query), higher compression (because of few wonderful values as compared to rows), parallel processing (one-of-a-kind columns may be without problems processed parallelly)
• Real-time reporting and predictive analytic capabilities with OLTP and OLAP capabilities in the same system.
(OLTP, or online transactional processing, allows numerous users to execute numerous database transactions in real-time, usually over the internet. A database transaction is an operation that modifies, adds, removes, or queries data stored in a database.
Large company databases are organized using the OLAP (Online Analytical Processing) technology, which also facilitates complicated analysis. Complex analytical queries can be run on it without having an adverse effect on transactional systems.)
• The aggregate (total), index, and records tables in S4H might not exist. Aggregates are generated dynamically on the basis of the line item table immediately.
New GL or Parallel ledger
S4H is technically very similar to the new GL of ECC due to its data structure. Customers using classic General Ledger GL do not require a Document split or parallel ledger. However, Parallel ledger (the new GL’s functionality) is a pre-requisite for new Asset accounting.
Custom Development
By using a particular option at the database interface level (i.e. invisible to source code), read operations in custom code will be redirected to compatibility views (such V COEP for CO line item table COEP) so that the custom reports can continue to function without interruption.
CO-PA
The costing-based CO-PA solution is now an alternative to the default account-based CO-PA. One can use both choices at once.
Business partner
All vendor and customer master needs to be integrated or migrated to become a business partner. As these SCM apps will also be natively connected with the core of S4H in future editions, it is likely that SAP is attempting to match the notion of the business partner with that of other SCM applications like APO, EWM, TM, and others. Integration of customers and vendors (CVI) is a necessary step.
Material Number field length Extension
The size/length of Material number can now be change from 18 characters to 40 characters in S/4HANA. Evaluation of impact of this extension on custom codes, interfaces and SAP applications should be done before implementation of S/4HANA
Credit management
SAP ATP (Available to promise)
A crucial computation called SAP ATP (Available to promise) is employed in manufacturing, fulfilment, and supply chain management. It is also very pertinent to SAP e-commerce. In essence, you may manage the proportional distribution of your products among your clients using SAP’s ATP computations.
If the material is not accessible at sales order plant A, location substitution enables testing the material availability at plant B (as determined by master data or business rule). If the material is present at plant B, an automatic stock transfer order from plant B to A is generated. This principle is equally applicable to a network of plants.
Additionally, SAP intends to incorporate GATP (Global ATP) capability from APO into S/4HANA core. I’m unsure if the S4 core will incorporate all of GATP’s functions. Some of the distinctive features of GATP w.r.t. ATP in ECC include rule-based ATP (For substitution of location (plant) or material), Multi-level ATP check, advanced check for product allocation using ATP, advanced BOP (Backorder processing), etc.
SD pricing Table
The data model for pricing and condition approaches has undergone several changes, such as the replacement of the current table KONV with the new table PRCD_ELEMENTS with extended fields.
For more information, see SAP note # 2267308.
MRP – Material Resource Planning
In ECC, MRP is executed through batch jobs during off-peak times. However, S/4HANA does not require batch jobs and MRP is now able to execute in real-time using HANA.
Storage location level MRP cannot be done, only plant and MRP area level. The storage location can be designed individually or excluded from MRP in ECC. For those cases at the storage site level, SAP advises using MRP area with MRP type (ND in the event of exclusions or VB for re-order point planning). Subcontracting MRP has also been made simpler.
From version 1610 on premise, the production planning component of SAP APO, PP/DS, is now connected with SAP S/4HANA. Advanced Planner and Optimizer, or SAP APO. A technology for supply chain management called SAP APO assists businesses in managing their supply chains.
Future releases of S/4HANA are expected to include the functionality of APO’s PPDS (Production Planning and Detailed Scheduling), which aligns APO features like BOM selection through production versions for internal purchases and unified source of supply (no source list, only info record) for external purchases with S/4HANA core.
Foreign trade
Foreign trade functionality has been replaced by GTS (Global trade services).
Advanced features in GTS w.r.t foreign trade are:
Material ledger
The material ledger (ML) must be activated. Inventory is assessed by ML using different currencies. In SAP ERP, inventory is often primarily assessed using a single currency. The use of two extra currencies is permitted by ML. Global businesses nowadays that operate in several nations want to assess inventory in various currencies. For instance, a company in Pakistan that deals with oil must keep its records in PKR and would prefer to evaluate its inventory in USD as oil is traded on the global market in USD.
Revenue recognition
Due to a new accounting standard developed jointly by the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board, SAP Revenue Accounting and Reporting (RAR) will replace ECC SD revenue recognition (IASB). The 2014-released IFRS 15 includes a new guideline as well.
The SD revenue recognized in ECC is now based on Generally Accepted Accounting Principles (US-GAAP), Financial Reporting and International Accounting Standards (IAS). In addition to the classical technique of evaluating revenue on billing (FRS), S/4HANA provides the option of finding revenue either by process based on an event (such as the issue of goods or evidence of delivery) or over time (based on a specific set of dates). A great standard introduces the five-step idea (Identify the contract, separate performance obligations, determine the transaction price, allocate transaction price and recognize revenue). SAP has made available its new Revenue Accounting and Reporting (RAR) solution in S4H in order to meet the requirements of parallel accounting and cost recognition as well as the fundamental changes made by IFRS 15.
Rebate
Settlement management via Condition contracts has taken the place of customer rebates through the current SD rebate procedure.
Some details on condition contracts are in URL Condition Contract – Compensation Management – SAP Library
Output management
Business rule framework plus (BRF +) has taken the place of ECC message determination through table NAST, and the targeted architecture is purely based on the Adobe document server and Adobe forms.
For more information, see OSS note 2228611.
Warehouse management
The new SAP warehouse management application, EWM, will replace the previous WM module.
Native integration, that is, integration that is incorporated into S4H Side car deployment
There are many benefits to EWM over WM, including enhanced (easily customizable) RF functionality, value-added services like kitting, improved wave & restocking procedures, labour management, and complicated warehouse processing through Process oriented storage control (POSC).
Native integration of SCM applications
The digital core of S4H will be natively integrated with other SCM programmes, such as TM
for more details.
User interface
Fiori is a new user interface . Refer URL https://experience.sap.com/files/SAP_Fiori_UX_Overview.pdf for more details.
Activate implementation methodology
Blueprinting is not a concept used in S/4HANA implementation. S/4HANA has unveiled a new methodology called “Activate.” The SAP Activate Methodology is a flexible and agile framework that supports project teams with the specific actions that must be taken at each phase. For particular business processes, SAP provides pre-built demo systems with SAP best practices. Business users can now try the system in a demo environment to see if it satisfies their needs.
After the initial trial time, fit-gap analysis can be performed.
Refer URL http://www.akili.com/wp-content/uploads/2016/01/SAP-Activate_Customer_v03.pdf for more details.
Note : All the above information are based on several sources like SAP Documents , Open SAP courses , SCN blogs etc and hence subject to change. Also the features stated above are target functionalities i.e may not be available in present edition of S4H (Like tables for material ledger have not yet been merged to ACDOCA in 1511).