SAP
S4 HANA Simple Logistics- Overview And Benefits
SAP
S/4HANA definition:
SAP S/4HANA is a new product built on the most innovative
In-Memory HANA platform coupled with
current design
SAP S/4HANA delivers immense simplifications
(customer adoption, data model, user experience, decision making, business
processes and models) and innovations (Internet of Things, Big Data, business
networks, and mobile-first) to aid businesses run simple in a digitized world.
What is In Memory
Database (IMDB):
An in-memory database (IMDB, also main memory database system or MMDB or memory resident
database) is a database management system that primarily
relies on main
memory for computer data storage. It is contrasted with database
management systems that employ a disk storage mechanism.
In-memory databases are faster than disk-optimized databases because disk
access is slower than memory access.
S4H can
only be run on Hana database unlike ECC which can be run on Oracle , IBM DB2 or
any other compatible data bases.
Key Benefits at a glance:
Before
we dive another level into S4, lets outline the Key benefits of S4 ecosystems.
In-memory
database means that data is read from memory i.e. data always reside in main
memory RAM (though Write happens in hard disk) and hence in-memory
database reads data much faster w.r.t traditional databases (fetching the data
from hard disk)
·
10X faster the ECC.
·
7X times through put.
(Throughput is the maximum rate at which
something can be processed)
·
1800X times faster analytics and reporting.
·
Processing time reduced by 4X. E.g., if PO creation
time in ECC is 40 sec than in S4 HANA it is 10 S.
·
Traditionally Inventory Management support two
functionalities viz. Inventory valuation and Material Ledger activation
In S/4 HANA Inventory valuation cease to exist
and it stands integrated into Material Ledger.
·
Hana’s column based tables provide faster access
(as only affected columns need to be read in a query), better compression (due
to few distinct values compared to rows), parallel processing (different
columns can be easily processed parallelly)
- OLTP and OLAP capability in same system with real time reporting and predictive analysis
- There will be no aggregate (total), index and history tables in S4H.
Principle of One:
Business Partner (BP):
Customer
and vendor master need to integrate/migrate as Business partner. Customer-vendor
integration (CVI) is a mandatory step.
Refer
Link
for more details.
SD Pricing:
There
are some changes in data model in pricing and condition techniques like
existing table KONV replaced by new table PRCD_ELEMENTS with extended fields
etc. Refer note 2267308 for more details.
Material Number:
Material
number can extend up to 40 characters from the existing 18. It’s an optional
feature. Impact of this extension on custom coding, interfaces, and any other
SAP/Non-SAP applications need to be evaluated before switching. Refer note
2267140 for more details.
Credit Management:
ECC’s
FI-AR-CR credit management is replaced by FSCM (Financial supply chain
management) credit management.
The
pivotal profit is that FSCM-CR allows interfaces with external credit rating agencies.
Traditional
FI-AR-CR credit control setting requires high degree of manual work. However,
FSCM-CR has advanced features like
- Credit rule engine for automatic risk scoring & credit limit calculations
- Automatic update to master data on approval of credit limit etc.
- Work flow for credit events etc.
ATP (Available To Promise):
S4H
uses only individual requirements (with no VBBS table) and probably the
rationale is that S4H does not have any aggregate table with its simplified
data model.
ECC
provides the option of availability check at the individual or summarized
requirements (aggregated at daily or weekly level).
Foreign trade:
ECC’s
Foreign trade functionality is replaced by GTS (Global trade services).
A
few progressive features in GTS w.r.t foreign trade are SPL (Sanctioned party
list) screening, automated embargo check (Manual in ECC), automatic &
simplified license check (manual and complex in ECC), Automatic import / export
declaration.
Material Ledger (ML):
Material
ledger (ML) activation is mandatory. ML valuates inventory in multiple
currencies.
Conventionally
in ECC, inventory is valuated in a single currency in SAP ERP. ML allows
valuation in two additional currencies. Today’s global organizations operating
in different countries desire to valuate inventory in multiple currencies. As
an example, a company in Canada dealing with oil needs to maintain their books
in Canadian currency (CAD), they will also like to evaluate their inventory in
USD as oil is traded in international market in USD.
Output Management:
ECC
message determination through table NAST is replaced by Business rule framework
plus (BRF +) and target architecture is based on Adobe document server and
Adobe forms only. Refer OSS note 2228611 for more details.
Revenue Recognition:
ECC
SD revenue recognition is replaced by SAP Revenue Accounting and Reporting
(RAR) as new accounting standard are released jointly by the Financial
Accounting Standards Board (FASB) and the International Accounting Standards
Board (IASB).
Existing
SD revenue recognition of ECC is based on Generally Accepted Accounting
Principles (US-GAAP), International Accounting Standards (IAS) / Financial
Reporting Standards (FRS) and it provides the option of recognizing the revenue
based on an event (like Goods issue, proof of delivery) or over a period of
time (based on specific set of dates) apart from standard way of realizing
revenue on billing.
S4H’s
New standard introduces 5 step model (Identify the contract, separate
performance obligations, determine transaction price, allocate transaction
price and recognize revenue).
Rebate:
Customer rebates through existing SD rebate processing has been replaced by settlement management through Condition contracts. Some details on condition contracts are in URL Condition Contract – Compensation Management – SAP Library
Activate Implementation Methodology:
There
is no concept of Blueprinting in S4H implementation. S4H has introduced new
‘Activate’ methodology. SAP offers pre-built demo system with SAP’s best
practices for specific business processes. Business users can now test in demo
system whether it meets their business requirement. Fit-gap analysis can be
done post initial trial period.
