Financial Accounting Assignment On SAP S/4HANA A Prominent Accounting ERP
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.
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)
This financial accounting assignment will discuss about the process of the SAP S/4HANA which is very current model the computerized accounting in an ERP system. The research has been conducted in order to determine the impact of the implementation of SAP S/4HANA in the business organization. In the main body of this paper the importance and the advantage of the SAP S/4 HANA in the business organization is given and also adapting this new model. In the year 2014, the SAP Simple Finance was implemented which was the exclusive version of SAP HAN in the accounting model of Finance in the model of SAP. The former name for SAP S/4HANA is SAP Simple Finance. This tool is mainly used to mediate the accounts so as to make them receivable and payable that eventually helps them in the deduction of the time that is allocated for the line of payments. The difference has also been provided between the SAP FICO and SAP Finance. Finally before reaching to the conclusion for this financial accounting assignment will refer to case studies of two companies are provided so as to understand the advantages of the migration.
Brief Historical Overview of SAP S/4HANA
The former name of SAP S/4HANA was known as SAP Simple Finance that includes various current and updated traits, for example, analytic on real time basis, journal based across the globe, and the design based on the streamline. This financial accounting assignment outlines the current and update method of accounting is based on the SAP Asset Accounting which is the financial model that has been renovated in the form of S/4 HANA that is made in usage to hike the proper process all across the asset’s life cycle (Riesner and Sauer 2017). Post initiation of the SAP S/4HANA Finance in the year 2014, the perplexities and confusions were very much present about all these products those were located. Various people were present which also consists of the SAP customers, who thought that this new way of finance to be the model of the Financial Accounting and Controlling that helps in making easier to form settings with the initial moment (Nica et al. 2017). So it will be better to discuss about the SAP ERP 6.0 at the initial moment which achieves the total capacity of maintaining the HANA database. The model of finance of the SAP S/4HANA initiates furthermore stages. There are important functional elements those pertain to the ex-suite of FI/CO that have been coded again, because of the potentiality of the benefits from the SAP HANA are to be taken in full consideration (May, Bo?hm and Lehner 2017). SAP Simple Finance was introduced in the year 2014 that included the exclusive version of SAP HANA on the grounds of Financial Accounting model on the SAP version. In contrast to it, the SAP Simple Finance 2.0 is a vital element of SAP S/4HANA that is a product, as released in the year 2015. It is the new and updated version of SAP Simple Finance 1.0. on this financial accounting assignment it is understood through the four main elements those are provided below:
- The application element: This element is an accumulation and integration of different applications which are based on the financial analytical model that is a requirement for important decision makers of the organization.
- The element of reporting and analytics: This element ensures the analytics and reporting in time by using the live views of HANA. Few essential elements of some installations are there which are SAP HANA Live 1.0 and SAP HANA on the basis of the model of ERP (Pekka 2019).
- The functional or core element: SAP provides financial capabilities and developments on the grounds of the functional tools. The update is formulated on the basis of the users those are using the SAP Net Weaver 7.4, SAP ERP Central Component 6.0 Enhancement Package 7 and the old version of SAP which is SAP HANA 1.0 (Hyyryläinen 2017).
- The presentation experience or the user element: Fiori is based on one of the element of SAP of GUI which helps in the communication of the core element by the interface of the users. It assists in the requirement of the SAP Net Weaver 7.4 and SAP Gateway 2.0.
Difference between current SAP ERP FICO and SAP S/4HANA Finance
One of the most vital functional elements on the grounds of SAP ERP Central is the SAP ERP FICO that gives permission to the company to pursue all the financial data. The main aim of the SAP FICO on this financial accounting assignment is to help the company to yield and to manage the statements finance of the report and evaluation of the decisions of the effective plan management for the company and help in the formation of planning and making decisions. Usually, there are only two formats under the SAP FICO that consists of SAP Controlling and SAP Finance, and this is to be used separately for the process of finance. SAP CO is dedicated towards the costs of planning and supervising, while the SAP FI thrives in the total accounting and report of finance (Chuprunov 2018). SAP FI and SAP CO were mainly introduced as the separate model but they are now amalgamated and integrated together, as there are many people who come to know this model. It is very hard to create difference and comparison in between the two models. SAP HANA is a memory database that assists in processing and the storage of data. The updated version of the solution for SAP ERP is S/4HANA. On the basis of the element of the cost accounting, the primary and secondary cost element is to be defined as the general ledger of the initial data in the chart of accounts. This has assisted in the creation of the aggregation of the financial accounting and management accounting on the platform of the Universal Journal. The standards for the FI and CO are in the process of reconciliation of the documents of FI and CO those are legally accumulated together (Chuprunov 2018). There are several secondary elements of costs those are associated in the chart of accounting in a designed and maintained in an efficient manner.
The part of SAP is SAP S/4HANa which has been set up for the foundation of the memory in the business model which is known as HANA. S/4HANA includes the capabilities of the ERP which is famous all over the world in the management of the business organisation in the field of Finance, Sales, Human Resources, Procurement, Supply chain and many more. The concept that has been underlying the Universal Journal is in a constant reconciliation with the controlling and accounting of finance (Sampat 2016). SAP S/4HANA finance develops a platform of the S/4HANA that thrives on the solutions of the Financial Management. The model assists in:
- Rendering and securing data in a Universal Journal.
- Rendering central finance as to consolidate information from the back end sources.
- Sharing a common view of the financial data.
Benefits if SAP S/4HANA Finance for businesses
The implementation of SAP S/4HANA has caused several advantages to the system of the business, those are provided below:
- Functional element and the experience of the user: The functional and core element of SAP renders the several benefits and development of the organisation. It is a basic need for updating to SAP HANA 1.0 to SAP Net Weaver 7.4 to SAP S/4HANA. The user friendly scree which is Fiori that helps the business to interact with the main or core tools of the business via SAP Fiori based GUI element of user screen. These tools can only be updated by taking help of the Net Weaver client as a user interface or may be with the SAP GUI (Nieuwenhuis, Ehrenhard and Prause 2018). The result of SAP is that it has yielded the amount of information that has been reduced and the elements those have been copied from all over the financial models.
- Development of the element of report and updating of APP element: The Live Pre-Packed HANA view helps the business or the users of this modulated version with the analysis of the real time and reporting that needs to be implemented within the functional element of HANA or SAP ERP, whichever it is (Nieuwenhuis, Ehrenhard and Prause 2018). This tool naturally thrives on the decision maker those who are financially aware of the business, on the basis of which the aggregations of all the applications of the business models are setup.
- Removal of analytics and reporting with the single power: The integration of the Universal Journal in S/4HANA has resulted in storage of the house than that of a single accounting transaction which has hence led to the Universal Journal post which includes several and various balance sheets like asset accounting log, material log, etc. (Nieuwenhuis, Ehrenhard and Prause 2018). On the basis of the operational terms, the elements that have been determined are on the cost of the material ledger yielding a direct flow in to the table of journal. The result of SAP is that it has yielded the amount of information that has been reduced and the elements those have been copied from all over the financial models. The updated and reformulated version of SAP has resulting in providing a dynamism of the block of journal in order to code the block which has the most vital aspect of the implementation excluding the analysis of the profitability the modules those are based on cost.
- Simplifying the data with the screen of SAP Fiori Based Clear: The results of the SAP S/4HANA Finance has resulted in the oversimplifying of the data that goes into a single model of finance as those are related with the common models of SAP as they are required in the time of the consumption and hectic process (Nieuwenhuis, Ehrenhard and Prause 2018). Fiori plays a pivotal role in making the interface of the user quite viable for the new and updated version of the cloud storage. Fiori is generally used as a screen where it removes the cluster of the SAP GUI based on the user screen and the working behaviour of the same device for the services of laptop or mobiles.
- Accounting and Financial Planning Analysis: The authentic data those are being using by the financial planners is just because of the updated software which has finally been enjoying its freedom to plan the decisions those pose benefits to the business in any point of time (Nieuwenhuis, Ehrenhard and Prause 2018). SAP Simple Finance serves a model which is relied on the very common and simple model of planning that motivates the users to be with the simulations. SAP has an incredible feature identified on this financial accounting assignment that helps the users in rendering the information and data those are based on the performance of time which assists the user to deal with the case that helps in finding anyway out of the reporting and closing of the book whenever in need.
- Financial risk and treasury management: The on time access and ease in flow of the cash of the organisation is provided by SAP S/4HANA Simple Finance that give proper certification to the users in the reduction of the management cost by 58 per cent (Nieuwenhuis, Ehrenhard and Prause 2018). The dynamism and fluidity in the variety of the market is not bothered by the decisions as they are very much calibrated with the tools of SAP S/4HANA Simple Finance. The SAP Simple Finance tools ensures the business to meditate their account by making them payable and receivable those will finally assist in the deduction for the time that one needs to spend in the queue of payments.
- Development in the current usage: The interface of the user screen of the updated and new Fiori assists in the application of ECC to render the performance on the grounds of the model having an online platform. The user platform of Fiori helps in changing the perspective to the renovated design of the hugely personalized, responsive, and usual, which basically leads to the experienced of the role-based and according to the experience of the best use be it in any electronic gadgets or any online platform (Nica et al. 2017). One of the most important factors is that there are various users those who don’t know about the update and renovated product. Although it is not mandatory that the product which has launched today is a new one and even updated rather one needs to see the technology behind the services rendered by the product which should be technologically developed and provides a developed services so that it meet the requirements in the near and long future under the implementation of SAP S/4HANA (Nica et al. 2017). Various instances are there where several applications and tools of ECC, but the model her is providing the providence for the accessibility to the data services, content and speed via which many applications can’t gain. Therefore, this model is the one and only system where the users are not forced to make upgrade of the latest version where they have some vital amount of data that will assist them in presenting and storing most of the significant updates to their users.
- Cloud storage system: In today’s world, beside recording the information in the file and the organising the security there comes the proper alignment of the data in the cloud storage devices which has resulted the company and its users to gain the needs and goods in the SAP S/4HANA products (Nica et al. 2017). This has resulted in presenting the capability to change very quickly from one position to another in the cloud storage version. The cloud storage version basically does not focus on the SAP, but it is also focused in maintaining the information and data in order to reduce the overheads costs of the business organisation. The organisation is basically ready to take advantages on the premises from the cloud storages via migrating the information and data that i.e. ordered with the quality of solution of the data which could further be initiated in both the versions those are present in any manner.
- Financial Analysis and Financial Planning: This is one of the vital decisions in the planning and analysing of finance in an organisation which can titillate huge development of the cycle of planning and development of the profit making concern on the grounds of the function of finance. The problems those are related to the copying of the data can be basically prevented without facing any problems by the planners as they could have an easy access to the time of the functional data with the accruals quite effectively in SAP S/4HANA and Simple Finance (Plattner and Leukert 2015). The clients of the organisation can clearly link their plan up and use the timely operating data that could be very helpful so as to remove the shortages of time and information mainly of no use. The financial accounting assignment can be processed in a manner with the desired levels of the disintegration of using of the individual table in the memory. In the financial life cycle, the reporting, updates, and the development play a very important role in the business organisation.
The company is liable to enhance the compliance and control, minimise the loads of the work, costs, and even in the winding up of the books in a very quick manner via using the software model in the system of the closing of accounting and finance The SAP accounting integrate the management and financial accounting all together with the information of profit into a single and Universal Journal (Singh 2017). It also rejects the indices, summation, and other accumulation of the pre- defined elements of the line as strength of the truth.
Case studies of two companies and the issues they faced migrating to SAP S/4HANA Finance
Case Study 1: ROI Management Consulting
The organisation has implemented SAP S/4HANA in its managerial body. This has assisted the employees of the same company to play a very vital role in managing the employees of the company that has resulted in mediating the process of changes which involves the users of the organisation. The organisation is basically ready to take advantages on the premises from the cloud storages via migrating the information and data that i.e. ordered with the quality of solution of the data which could further be initiated in both the versions those are present in any manner. Various technological advancements and benefits like the intuitive dashboards or the gaining of the income in the relevant time, and which does not suggest any proper identification of the errors or in reducing the time that will lead to ensure the responsibility in the future as it will still remain existent within the people those are still using the new and update method. The shifting of ROI to the S/4HANA is very lucid and easy method in the operating management, IT, and the business process so as to become more integrated to what had happened earlier (Roi-international.com 2019). Besides this, it has led to the formation of the new and variables in the performances and traits of information in the successful management.
Case Study 2: Deloitte Company
In the year 1995, Deloitte migrated to SAP S/4 HANA where it is showing the ineffective and inefficient usage of the software for the requirements of the business. The company underwent almost around thirty three thousand customisations so as to move to S/4HANA those have not been provided in the article. The company has been stating that S/4HANA forms a very few amount of functionality than ECC (Deloitte Greece 2019). So now Deloitte needs to perform more on the customisation effect of the ECC. Presently, Deloitte is focused upon the reinstating but not on the updating of the system as the systems are not fit to make any kind of update to S/4HANA.
The conclusive statement can be made by saying that the action of the SAP is to install new and innovative measures in the business. At the last report in this paper, there are two companies i.e. Deloitte and ROI Management Consulting are provided as a case study. And they have the contrasting traits on the migration of the SAP S/4HANA. Deloitte is not happy with the migration and it is in the procedure for the customisations of the software but, on the other hand it is observed that ROI Management Consulting is utilising SAP as an extreme beneficiary product. From this financial accounting assignment, it can be observed that the SAP model acts as a very useful tool in the advancements of the whole technology in the organisation. Financial accounting assignments are being prepared by our accounting assignment help experts from top universities which let us to provide you a reliable assignment help online service.
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