In traditional SAP applications, all the data is stored at the database level and calculations are performed. The results are displayed at the application layer. Most of the query processing time involves calculations and aggregations. It’s recommended that all application logic should be pushed at the database level to improve the performance of query execution.

SAP HANA based applications provide best application performance by pushing the execution into the database as possible. All the data is stored in in-memory database so the reading data is much faster as compared to a conventional database.

SAP HANA supports real-time data replication and hence removes unnecessary latency and complexity of data load.

Advantages of Using SAP HANA

Subsequent are the advantages of using SAP HANA as underlying database.

Real-time data analysis
Elimination of unnecessary complexity of hardware
No latency in database due to nightly ETL jobs
In-memory database
Column store supports calculations on the run
Parallel processing
Data compression

SAP HANA Roadmap to S/4 HANA

SAP HANA developed interest by mid-2011 and various Fortune 500 organizations started considering it as an option to maintawithin their Business Warehouse needs. In 2012, SAP Business Warehouse powered by HANA was introduced to support real-time analysis and real-time reporting was introduced.

In 2013, SAP Business Suite powered by SAP HANA was introduced that supported realtime business, OLAP, and Transaction on the same system.

In 2014, SAP Simple Finance powered by SAP HANA was introduced for instant financial insight, no aggregates, and single source of data for reporting.

In 2015, SAP S/4 HANA was introduced that provided a simplified data model, new user experience, advance processing, and multitenancy.

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S/4 HANA ─ Overview

S/4 HANA Business suite is based on the native HANA platform to support simplified data models, no aggregates, no indices, etc. It has an integrated Fiori-based user interface and role-based access for different purposes.

S/4 HANA is based on advanced in-memory platform and offers a personalized Fiori-based user experience to access role-based solution. It can be deployed over cloud environment or on-premise solution. There are many customers which are moving from SAP Business Suite to S/4 HANA and for 75% customers, it takes an average 6 months for migration project.

SAP also offers SAP rapid deployment project to perform a fast migration to HANA platform and to SAP Simple Finance solution. Various SAP partners provide fixed price integration for few clients.

Customers can use the customization even after migration of the system. Migration of SAP Business Suite to S/4 HANA is done via implementation package within the form of SAP Simple Finance and Simple Logistics, and many more.

With SAP S/4 HANA, SAP is providing a new product and a next generation of business applications – simple enterprise software for big data and is designed to help you run simple within the digital economy.

With the advanced features of SAP HANA, SAP S/4 HANA is designed for real-time business operations, planning, and BI analyses. Subsequent is a SAP Fiori-based user interface of S/4 HANA solution, which provides role-based experience to its users.

You’ll also define user preferences like – Language, Theme, Default values and any personalized search. Once you make the selection, click the Save button to save the user preferences.

You’ll also customize the home page screen of SAP S/4 user experience by clicking the Edit sign at the bottom of the screen. You’ll select different home screen themes as shown within the subsequent screenshot.

SAP Simple Finance – Introduction

SAP Simple Finance provides an accounting solution powered by SAP HANA. S/4 HANA finance comes with different finance and accounting management processes and supports operations efficiently. With SAP S/4 HANA Finance, you have the subsequent releases −

SAP S/4HANA Finance 1605
SAP S/4HANA Finance, On-Premise Edition 1503
SAP Simple Finance Add-On for SAP Business Suite powered by SAP HANA

Note − SAP Simple Finance is also called SAP S/4 HANA Finance. With the release of 1605, SAP Simple Finance is only known as S/4 HANA Finance and this will be the only name of other releases of SAP Simple Finance.

During the installation of SAP S/4 HANA Finance, various front-end and back-end components get installed.

SAP Simple Finance ─ Key Features

Subsequent features are available for SAP Simple Finance −

Financial Planning and Analysis

Using SAP Simple Finance, organizations can use it to forecast, plan, and budget as an ongoing process. With the use of Predictive Analysis, you’ll forecast the impact of business decisions on the financial reports of the organization.

Accounting and Finance

With the use of advance Finance and Accounting features, organizations can meet the legal terms and complete the financial reports on time.

Financial Risk Management

Using Predictive Analysis, organizations can find the risk in financial processes at an early stage and device ways to mitigate them. It’s easy to find the best possible investment rates as per market standards.

Risk and Compliance Management

Using strong financial processes, it’s easy to prevent unauthorized access to sensitive data within the organization. It’s easy to detect fraud and abuse, and organizations can proactively balance the risk for all the financial processes.

Technical System Landscape

SAP S/4 HANA Finance is developed based on SAP NetWeaver and SAP ERP Business suite. Subsequent is the minimum system landscape for backend of S/4 HANA Finance (without SAP Fiori and Smart Business application).

SAP S/4 HANA Finance involves ERP 6.0 to be updated to SAP ep8 for SAP ERP 6.0 and it’s tightly integrated with other ERP applications like Material Management, and Sales and Distribution.

SAP S/4 HANA comes with a simplified data model. The tables and indexes are removed and replaced with HANA views within the underlying database.

SAP S/4 HANA Finance uses an in-memory computing power of HANA. To run SAP S/4 HANA, you have to use the latest features of ABAP technology that comes with NetWeaver 7.5.

Central Finance

Central Finance is used to transition to SAP S/4 HANA Finance without impacting the current system landscape. Using Central Finance, you’ll implement a common reporting structure by mapping the common entities within the local system to a common set of master data within the Central system.

For data replication from source system to Central Finance, you have to use SAP Landscape Transformation Replication Server.

You’ll use Software Update Manager (SUM) to perform the installation of SAP S/4 HANA Finance and to perform system upgrades as well as enhancement package installations.

Note − It’s not possible to install SAP S/4 HANA Finance with classical database and you have to ensure that migration happens to SAP HANA before installation. You’ll’t migrate to SAP HANA once the installation of S/4 HANA Finance is done.

So, this brings us to the end of blog. This Tecklearn ‘Overview of SAP Hana and SAP Hana Finance’ blog helps you with commonly asked questions if you are looking out for a job in SAP S4 Simple Finance and SAP Domain. If you wish to learn SAP S4 Simple Finance and build a career in SAP domain, then check out our interactive, SAP S4 HANA Simple Finance Training, that comes with 24*7 support to guide you throughout your learning period. Please find the link for course details:

https://www.tecklearn.com/course/sap-s4-hana-simple-finance-training-and-certification/

SAP S4 HANA Simple Finance Training

About the Course

This SAP S4 Simple Finance 1909 and SAP FICO training course, you will learn various aspects of financial planning, accounting management, and enterprise risk. As part of this training, you will also learn SAP Fiori to work with real-time analytics, prediction, and simulation for all financial and operational data through hands-on projects. SAP S4 HANA Central Finance allows you to establish a Central Reporting Platform for FICO with the option of creating a common reporting structure. Additionally, selected financial processes can be executed centrally in this system. To prepare common reporting structures, you can map your different accounting entities (for example, account, profit centre, or cost centre) in your source systems to one common set of master data in the central system. You can then replicate Financial Accounting and Management Accounting postings to your Central Finance system.

Why Should you take SAP S4 HANA Finance Training?

The average salary of an entry-level SAP FICO Consultant in the US is about $83,974 per annum. Based on experience, this salary might rise to $118,000 per annum.
Global demand for this role is growing, and everyone who has obtained the industry-recognized FICO certification can immediately find a great job!
Worldwide Business Intelligence and Analytics Market to grow to $22.8 billion in next 2 years – Gartner.

What you will Learn in this Course?

Overview of SAP HANA

Basic HANA introduction
SAP’s Big thing
SAP Fi, SAP CO, SAP BW, SAP APO
SAP S4 Hana next generation business suite
On Premise edition and Cloud edition
S4 HANA simplifier of enterprise software
Functional scope
Roadmap
SAP Hana History
ECC and ERP Concepts
Profitability
SAP COPA
Different types of tables
MATDOC
Green Field Implementation
Transformation of SAP to different Version of HANA

SAP Hana Implementation and Finance Concepts

Customer Program
Quota Management
FIORI
Rationalization
Profit Center
IOT
ECC
New GL Concept
SAP Vs SAP Fi
WorkCenter and RECIPE
Column Based reading
Company Code
Production Order
Cost of Activity
Cost of Production

General Ledger Accounting and Master Data

Material Document
Kinds of Data
Master data and transaction
Sub ledger
ACDOCA
FIORI App
ECC V/s HANA
Rationalization

Integrated Business Processes

General Table Display
Document number, Company Code, Fiscal Year
Asset Accounting
Cost Center
Cost element
Profitability segment
Sales and Distribution
Type of accounting
Central finance
Credit Control area

Organization Structure

Creation of new company codes
Defining business area
Functional area
IFRS
Profit Center
Product hierarchy
Profit center finalization and profit center dissension
Financial accounting organizational structure
Group Currency

CO (Controlling)

Controlling organisation structure
Current and valuation profile
Controlling area
Operating Concern
Financial accounting global setting
Ledgers
Currency Types
Legal View

Concepts of General Ledger Accounting Continued

Fiscal year
Shortened fiscal year
Purchase to pay
Order to cash
Goods receipts
Invoice

Master Data Management and Migration

Upgrade and migrate
S4 HANA component
Deployment of SAP HANA
SAP HANA Database migration
Replicate to central finance
Fiori
Simplified data model in finance
Avoid redundancy
Data footprint

Management Accounting and CO-PA

Account before simple finance
Finance implication
COPA revenue
COPA cost
Revenue
The new architecture with simple finance
Cost element
Simple IT with SAP simple finance architecture
GL account and cost element details

Material Ledger and Centralized Master Data for GL

Material ledger
Prima Nota in simple finance
Mr21 and Mr22
Multi-dimensional income statement
Merge of account
GL Account
Customer account
System work through
Header table
Transaction code and parameter
TSRC table
FI/CO document
Variant related program
Difference between Tcode and program

Financials for SAP S4 Hana

Tax in SAP
Direct and Indirect Tax
Account
Document Type in SAP Fi
Posting Key
Purchase order
Checking controlling area and company code object

SAP Product Costing

Cost objects
Cost Management & Profitability Analysis
Checking scrapping document
What is scrapping means

Materials Management

Material Vs Asset
Receipts and consumption
Material price analysis
Two type of consumption
Cost center
Material price analysis
Changing cost components splits of a material

Functionalities in New Asset Accounting

SAP Hana Implementation
G/L Account
Cost Object
Revenue collector
Asset accounting
HANA road map
Standard optimized transaction
Service order
Consignment
Fault part return
Accrual Management
What is underlined process
How finance support other modules
Positive post to order and negative post to order
Go-live and post migration activities
KPI with HANA
Monitor business performance
Accrual entry
Pricing procedure
Expense and revenue account

Finance process improvement

Over absorption and under absorption
Types of cycle
SAP treasury and risk management
Functional changes in HANA

Migration to SAP S4HANA Finance and General Ledger Accounting Continued

Project system
Data archiving
Profit center
Reconciliation issue
Migration to S4 Hana
Enablement of SAP S4 Hana
Implementing new G/L
Document Splitting
Parallel accounting

SAP Central Finance on S4 Hana

Replication to central finance
Non ECC system
Central finance mapping
Type of deployment

S4 Hana project phases

Preparation phase
Feasibility check
Check Size
Active business function
Parallel valuation
Depreciation calculation
Consistency check
Customizing
Data migration
Post migration
Testing
Preparation phase
Important SAP notes
Scope – ABAP
Active business function
FI consistency check

Reconciliation Process in SAP Hana

Reconciliation of general ledger and account payable
Reconciliation of the general ledger with materials management
Reconciliation of the ledgers
Ledger Comparison
Consistency check
Migration of general ledger settings
Defining setting for the journal entry ledger

Other Key Topics

Document types for Co
Real time reconciliation
Execute consistency check of general ledger setting
Data migration
Universal journal entry table
Management accounting
Migrate secondary cost elements to the card of accounts
Migration of cost elements to G/L account
Automatic account determination

Material Valuation in SAP Hana

Automatic determination of the account
Material valuation
Migrate default account assignments

Customizing Financials in SAP S/4HANA

Reconcile transnational data
Types of reconcile
Enrichment of data
Migration of line items into new data structure
Universal journal entry structure

Got a question for us? Please mention it in the comments section and we will get back to you.

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