Finance Assignment: Overview Of SAP S/4 HANA

Question

Task:
SAP S/4HANA Finance allows an enterprise to create a consolidated view of all operational and financial data to offer flexible and easy reporting along with automation of processes. It also offers real-time analytics, simulations and forecasting with a great user experience. Benefits of SAP S/4HANA include but is not limited to ‘single source of truth, faster forecasting and planning, ‘on the fly capacities’, new reporting and analytic support, global regulatory and compliance abilities across all languages, currencies and industries, faster month closing, integrated with Fiori etc.
Discuss these statements using case study examples (from literature searches) to demonstrate the benefits of SAP S/4HANA Finance.Your paper should include the following areas :

• A brief historical overview of SAP S/4HANA Finance
• The difference between SAP S/4HANA Finance and current SAP ERP FICO
• What are the benefits of SAP S/4HANA Finance for businesses
• Case Studies of companies and the issues they faced migrating to SAP S/4HANA Finance. (Minimum 2)
• Illustrations, frameworks, figures and tables as necessary to demonstrate the understanding of the above aspects

Your task is produce a 3000 - 4000 word research paper which discusses the issues relating to the above. The paper should demonstrate a depth and breadth of reading and should be appropriately referenced. The paper should be referenced using the Harvard referencing standards and formatted according to the approved style guide.

Answer

Executive summary
This study of finance assignment mainly deals with the different components and overview of SAP S/4 HANA. The benefits which can be experienced by implementing SAP HANA is entailed. Business suite of SAP HANA platform launched the finance version which assisted many organisations in facilitating their operations. Data related to finance and business operation are stored and extracted from a central location which facilitates decision making by management. Advantages of the SAP version and the differences with the prior version are conferred in the study. Case study of two companies which implemented SAP to solve their business problems are discussed. Overall this study aims in providing clear view of SAP HANA concept especially the finance version.

Introduction
The aim of this study of finance assignment is to present a brief overview of “SAP S/4HANA”. It is the financial and accounting component of many business suits which is created by SAP. S/4HANA is a software-based application which deals and operates with finance. SAP's memory platform's main application associated with SAP HANA in any organisation is to look after finance which is allowed by SAP in business and to produce a real-time analysis. Moving ahead it also facilitates operating data and finance recordings. All the collected data is stored and processed for user which removes constraints and make it useful. All the financial and operational data were retrieved from a location which is centralised and assists in decision making management. The information gets stored in a consolidated method which enables organisations to report easily. Further, it also implements major automation in business which results in faster business activities. S/4HANA is embedded with numerous benefits which will be discussed in this study. Problems that were faced in migration procedure of SAP HANA will also be discussed. ERP FICO and S/4HANA have differences which were also stated in this report. Different companies face issues while transferring or migrating to S/4HANA from the previous software provided by SAP. Organizational problems which were faced by companies in moving towards “SAP S/4HANA” is described accordingly. This study is based on advantages and issues faced by business organizations because of SAP finance. 

Historical overview
In 2014 the SAP platform introduced new finance software named "“SAP S/4HANA” ". A lot of confusion around the market regarding its functionalities is present all kinds of people including individuals. These are those people who are already an SAP customer and had used it before, it was believed by them that SAP is just for “financial controlling and accounting” (FI/CO). It consists of a method which is used in the configuration of exertion and was required for ERP suit. SAP HANA is a platform that works cross-functionally and combines the financial procedures along with real-time analysis of an application. Personalized users of ““SAP S/4HANA””finance usually uses SAP Fiori (Elbahri et al., 2019). This feature was developed to remove all the classical barriers which come in a line of analysis, planning and debatable processes that can deliver observation to a maximum extent. Financial information on fly analytic was used at every stage. The chief person of business can apply ““SAP S/4HANA””finance in order to build modulates and forecast consisting of efficient policies by using real-time data from various systems. This software mentioned in the finance assignment also has a sharp eye on the pros and monetary experts of every organisation which includes CFOs and all other complexes associated with tax and conquering commercial operations, risk and treasury. While examining *SAP simple finance 2.0* it was found that it is also a part of “SAP S/4HANA” which gets a discharge in 2015. *SAP simple finance 2.0* is recorded and upgraded as replacement of finance. 

““SAP S/4HANA””finance is casually known as SAP simple. Different features were introduced by it, which helps in getting real-time analytics. SAP assets are based on the financial model which is used is redesigning S/4HANA in order to increase its efficiency to a lot. Around it confusion evolved with the release of this model of SAP simple finance. A rumor gets spread that this is just if financial accounting (Fatimah et al., 2019). A conception was created that it was just created to reduce the currently involved efforts. An important point alleviated as S/4HANA is its analytics and investigation based on actual time. It was previously delayed because of different factors including extraction, transformation, and loading in data connectivity. With the enhancement which was provided by S/4HANA, it becomes easy to report an extract in comparatively similar times. Presentations at an actual time can be incurred which includes transactional and historical data used for tactical decision making and strategy making, that too in real-time. Flow of data across different modules is simplified. Complexity associated with overall organisational module is simplified by S/4HANA. A simple interface is provided by S/4HANA across different an available device which provides real-time analysis in the indicators. These are beneficial factors for quality performance

Components discussed in Finance assignment
“SAP S/4HANA” is a component of “SAP S/4HANA” suit it is important to analyse what “SAP S/4HANA” consists of. “SAP S/4HANA” comprises of four different components.

• Client experience: SAP Fiori is the grounded segment of GUI which motivates an individual in collaborating with the focal segment providing convenient screens. The needs associated with "SAP NetWeaver 7.4" and adaption of 2.0 gateway. This component is a discretionary part which can be preceded via present NetWeaver business or SAP GUI users.
• Center segment: The application provides variable money capacities which can be upgraded as a major center/ component. An individual is independent to use any rare version of "SAP Net Weaver version 7.4" SAP HANA" version 1.0 provides the option to reconsider the location or up-gradation into ““SAP S/4HANA””. A moment if "ECC 6.0" or "“SAP S/4HANA”" is an up-gradation based on function which complexes relocations in value-based tables. 
• Revealing segments: this part provides constant details and also empowers the software. It analyses the implementation procedure of "pre-bundled HANA live". The 1.0 version is required for the installation purpose of SAP ERP and SAP HANA. It is a discretionary clause (Fleig et al., 2018). 
• Application segment: This section of finance assignment includes the gathering of this exploratory software which provides financial suits for budgetary venture. 

FIG 1: components
(Source: Self-Created)

Differences
"“SAP S/4HANA”" is introduced as revolutionized concept of digital base and direct evolution. It is basically evolved from its predecessor "SAP ERP FICO". SAP is influencing customers by providing an enormous discount. As it aims to nudge this implementation toward a new height and it is working to make it through. It must not be treated as a replacement for SAP ERP because of the difference in functionalities and capabilities. 

Major changes were introduced by “SAP S/4HANA” as compared to its predecessor, the changes are: 

• Invention of new database: this new version introduces an inbuilt memory platform for the database which intends to create different scopes in order to provide analytics at a much faster speed along with reduction of unnecessary tables in SAP HANA. Different architectural changes were also introduced which was providing latest ways to work with data (Fuchs et al., 2019). Architectural structure based on physical data was introduced by SAP which facilitates the elimination of separate ledgers and creates a unified journal that consists of a single table. 
• Pirated functions get eradicated: “SAP ERP FICO” which was the predecessor of “SAP S/4HANA” consists of a general ledger responsible for architectural accounting and implementation. It is automated in nature, thus acts as an integral and important part associated with ““SAP S/4HANA””. This helps in extending management procedures and functionality associated with FICO. 
• Some functions of ERP FICO do not have any direct replacement in S/4HANA: SAP stated that few functionalities associated with FICO do not have any kind of direct replacement in HANA as they provide a road map which determines the enterprise migration of S/4HANA.
• Replacement of FICO and specification exchange with cloud: A different factor of FICO was replaced by SAP. For example, the success element such as relationship interchange management of FICO gets replaced by Ariba ““SAP S/4HANA””
• Stand-alone type solutions get inculcated in A/4HANA: two major stand-alone type solutions of S/4HANA is associated with its management procedure of transportation in SAP and it's extended warehouse management (Kepczynski et al., 2019). 
• Functional abilities: huge amount of processing abilities were designed in "“SAP S/4HANA”" which functions accordingly with the "“SAP S/4HANA”". It has an expertise function regarding computing memory. Some of these additional functionalities including cash management if SAP or SAP BPC requires additional or extra permission regarding licenses. 

This above discussion provided in this finance assignment showers light on significant changes that were made in functional and structural scope of ““SAP S/4HANA””Some additional changes were also associated with SAP allows different functionalities of “SAP ERP FICO”. To run on ““SAP S/4HANA””This moderation generates best possible investment returns. All these functional differences between 

“SAP S/4HANA” and FICO can be handy in building or creating firm functionality which results in growing business.

Benefits
SAP simple finance which is further updated as ““SAP S/4HANA”” incorporates numerous benefits including constant analysis, prevalent dairy and smooth plan. The most important purpose behind adopting “SAP S/4HANA” is to setup system planning and to displace eternal flaws. Transactional analysis provides a complete moment encounter along with the reduced hectic investigation which utilizes different stages of information (Lech, 2019). “SAP S/4HANA” is simple finance which turns as a fundamental lead in a chief model of organisations regarding conjectures and information utilizing constants. Important data is utilized with the help of different frameworks. An interconnected form of enterprise application and budgetary management works together for rearranging assets. 

The main principles discussed in this finance assignment associated with the structure of ““SAP S/4HANA”” are to deal with fiscal matters and to reconstruct their implications, association and to exploit database doits. All these outcomes resulted in the creation of such a device which continuously works over application and different activities to report some parts of business. The significant building difference is introduced to improve information structure and to restrict the system to trouble every aggregate data.

Real-time forecasting and features
Regular information regarding accounting is collected that too in real-time. This provides assistance in the managing procedure if decision making. This process is been automated hence provides absolute solutions (Liao et al., 2015). Implementation procedure if SAP in any organisation Is a real-time treasury. HANA is a major factor associated with its advantages. The need which forces to move towards “S/4HANA” is fundamental. All the required necessities were embedded in SAP HANA. It processes financial closing at a rapid speed when required. 

Single source of truth
SAP implementation improves the accuracy of information by providing acceleration towards intercompany reconciliation. The finance application of SAP mentioned in this finance assignment has financial accounting and global management. It has some data from the organizations financial application. With the introduction of common journal entry regarding finances and management eliminated the requirements of reconciliation. Now information is present in a unified application.

(Source: https://www.zarantech.com/blog/transforming-financial-reporting-analytics-using-sap-s4hana-finance/)

Reporting support
With the introduction of a common journal in “SAP S/4HANA” promote SAP into a higher extent for bookkeeping transaction as hole storehouse is allowed which introduces single bound. Journals were presented on monetary records which are diverse. For bookkeeping, there were resource logs (Maedche, 2019). This segment is centered authentically towards financial decisions as it provides a base to any organisation by providing a bundle of analysis regarding associated applications and finance suits.

FIG 2: Benefits of SAP HANA
(Source: Self-Created)

Integration with SAP Fiori
After the appearance effect of “SAP S/4HANA”, the information stream is ruined by fiscal in "one Fi modules". It clearly describes different structures that must be refreshed with some tedious changes. With the invention of "“SAP S/4HANA”" finance in general, decreased its essence with the multi-faceted and accessible model on framework. 

An essential feature of “SAP S/4HANA”, simple fiscal often provides velocity integration which has a lot of commercial benefits. “SAP S/4HANA” discussed in this finance assignment introduces different fiscal records in the establishment of finance and hence strengthened by detailing choices, facts sharing, quickened shutting, and inferring investigation which is backed by frequency transaction, these are major growth reasons.

”SAP S/4HANA” represents a significant theme from an ITC by rearranging organisations. It is entitled as equipment if centralisation and provides systems assets (Pedell et al., 2017). Along with this, it is also a center with computerized developing initiated for any business system. The database storage if SAP HANA is intended. With the implementation of “SAP S/4HANA”, any individuals get benefited through the end of the table that too in less preparation time. 

Case study 1
This case study provided in this finance assignment deals with the issues which were faced modern Bakery while implementing "“SAP S/4HANA”" in its organisation. Modern Bakery is located in Dubai and operates on a comparatively large scale. Main purpose of this business is to sell goods which were baked. 25 thousands of individuals were employed by the organisation. The advantage of this organisation is that it is capable of huge production and has skilled professionals from different countries. The manufactured products in this company can be footed in six hundred different columns. Hygienic condition was preferred in the manufacturing of baked products. An international certificate is also received by this organisation which makes it a reputed business of bakery industry. 

For proper functioning and service at different outlets in UAE requires an ERP system as it is capable of automation and increase business efficiency. Modern Bakery adopted different ERPs with an increase in operational level. But because of the fact that it is outdated, it became a burden on the company. Older version of ERP is not much useful and does not contribute much in organizational development.

Organizations started facing challenges as mentioned in this finance assignment in the initial state as it does not suit their business needs. It fails in meeting current production capacity. Previously operation regarding retail and manufacturing plant was maintained at seven areas. The solution for this blunder is implementation of SAP HANA. As the problems which are faced was because lack of handling experience of this system. Organizations needed a technology partner who can impart principal and knowledge of SAP (Scheck et al., 2019). Installed software is required along with optimization. The ERP vendors who were approached for this purpose do not have knowledge regarding SAP HANA so they failed in providing a complete solution. 

Major migration issues which were faced are infrastructure size, budget, and strategies. Decision associated with budget is a major challenge which depends on different factors like infrastructure size, executed and developed strategy. A trusted partner and selection of the right team is also a leading issue. Proper planning is required for the optimisation and migration of HANA in this organisational structure. This data migration procedure faces another challenge that is selecting appropriate cloud technology. The vendors "“SAP S/4HANA”" do not have proper knowledge of this application and hence modern Bakery face this major issue.

Case study 2
EMMVEE which is a supplier of solar power is been chosen for this case study. This company is located in India. The major task performed by this organization is production and development of solar equipment which delivers rich performance. This company explored in this finance assignment acts as a pioneer in photovoltaic module development. 

Business challenges:
Aggressive management plan for the future growth needs that company processes must be agile 

1. The business does not have all the modern equipment required for faster processing
2. Quick income recognition is lacking in this business

Replacement and up-gradation to “SAP S/4HANA” is a trending event. Businesses all around the globe are migrating towards this. Decisions regarding the migration of this business into “SAP S/4HANA” requires deep insight. Different challenges were faced by EMMVEE, such as the movement that needs to be executed at the right time. Implementation of appropriate plan is necessary for “SAP S/4HANA” (Shalaby, 2017). Migration needs customisation into “SAP S/4HANA” as the company has invested in different up-gradation. These up-gradation places a vital role towards business aspect. It includes management of finances. By doing this company can avoid any trouble in the future with a clean set of data. Most important aspect that is needed to be focused in the migration is the technical aspects of “SAP S/4HANA”. To manage this aspect is really a tough and complex job. It provides a high-quality analytical solution and a transactional problem. Appropriate handling of this problem is very important, these handing issues of “SAP S/4HANA” occurred in the EMMVEE Company and hence because of this reason it is chosen for the case study. The most vital problem which can affect implementation procedure of “SAP S/4HANA” is the different financial content of company (Thomas et al., 2019). As this migration requires a lot of money from company’s end finances must be enough. Therefore financial institutions must make mind before moving towards implementation of “SAP S/4HANA”. 

Conclusion
The above discussion provided in this finance assignment states that “SAP S/4HANA” finance casually known as SAP simple finance is associated or based on the financial models which are used to redesign the SAP system. Different components were used while doing this and can be regarded as the benefits of its attitude. Basic functions were performed by this essential component by SAP which enhances its distinguished capabilities. This feature also initiates enhancement. Major changes introduced in "“SAP S/4HANA”" as compared to its predecessor (SAP FICO ERP). Introduction of a new database in the later update intends to create a substantial scope of providing analytics that too at a rapid speed. Also, some of the purposes of FICO do not have any easy or direct replacement in "“SAP S/4HANA”". On this issue, SAP clarifies that all these themes remain unchanged and are used in providing a road map for migration enterprise. SAP simple finance which was updated in "“SAP S/4HANA”" Inclocated different features including continuous and constant analysis, prevalent dairy system and most importantly smooth plans. 

The management work associated with budget was interconnected with that of enterprise assets in arranging applications. A major factor of SAP provides different advantages in monitoring sectors and also introduces different betterment scope. The live segment of HANA which is pre-stuffed provides or empowers any client with investigation and continuous-time dealing which was effectively introduced along with the other fundamental segment of SAP HANA or SAP ERP. This transmission is affecting different IT sectors. Via different sources, the relevance of ““SAP S/4HANA”” in the context of different companies is been investigated. Most of the companies facing problems associated with ““SAP S/4HANA””. More flexibility is required in organisations processes; this can provide assistance in adapting procedure of these new requirements at a rapid pace. Eighty percent of the clients who were surveyed believed that this extra cost associated with the software license is way too high. For the purpose of successful implementation of "“SAP S/4HANA”" it must be looked after separation concern and posing over benefits. Organisations and companies must analyse their environment to figure out the fact through which it can be introduced. When “SAP S/4 HANA”gets successfully implemented improves businesses.

Reference List
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