Business Benefits of SAP S/4HANA Simple FinanceCategory: SAP S/4HANA Finance Posted:Mar 06, 2018 By: Ashley Morrison
SAP S/4HANA Simple Finance is an updated version of SAP Simple Finance which includes many features such as a universal journal, real-time analytics, and streamlined design. The main aim of designing SAP S/4HANA is to remove traditional barriers like transactional, analytics, and planning systems which totally aim at providing instant insights and on-the-go analysis using all levels of financial data. The use of SAP S/4HANA Simple Finance becomes critically important for all decision-makers to model data and create forecasts of important data using real-time analytics using various systems. The financial management functions that are so well connected that from enterprise resource planning applications.
The main of designing SAP S/4HANA Simple Finance was to re-engineer their business applications and take maximum advantage do its HANA database.
This results in the creation of a tool that works more in real-time applications and assimilates the operation reporting part of the business process. The main architectural difference created was resulting in too radical simplification of database structures and preventing from bothering of all aggregate data.
The user base of SAP S/4HANA Simple Finance ranges from fortune 500 companies around the world and its creation is mainly focused on financial experts and leading professionals in all the industries ranging from chief financial officials and official involved in accounting and tax department, treasury, and financial operations or even at risk and compliance department of companies. One of the important features of SAP S/4HANA Simple Finance is its processing speed integrated with various financial features that’s speed is as close to a quarter of one with performance compared to other programs.
The portability of SAP S/4HANA Simple Finance makes it successful as it can be as implemented on any premises in the cloud or even any other environments this overall gives it the freedom to be implemented and side to standalone products or even bundled products together.
SAP S/4HANA Simple Finance is revolutionizing finance industry as it enables firms with wide data sharing, accelerated closing and reporting along with decisions deriving analytics backed by faster transactions are all its success reasons.
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1. The Core Component and User Experience (UX)
SAP as a core component provides various financial benefits and enhancement. The basic requirement to upgrade to S/4HANA is to be present at least on SAP Net Weaver 7.4 or SAP HANA version 1.0.
The user- friendly Fiori screens helps one to interact with core component through its SAP Fiori-based GUI component. The SAP Fiori-based GUI component can only be also is upgraded with an optional NETWEAVER CLIENT as a user interface or even along with SAP GUI.
2. The Enhanced Reporting Component and Upgraded APP component
The pre-packed HANA Live component enables a user with real-time reporting and analytics which can be easily installed along with basic components SAP ERP or SAP HANA. This component is truly focused on chief financial decision-makers of an enterprise by providing a collection of all analytical applications of the Financials suite.
3. Power of one along with the removal of Reporting or Analytics
The initiation of a universal journal in SAP S/4HANA leads SAP to be more of a storehouse to a single accounting transaction which has resulted in posting as one single unified journal instead of posting to various different balance sheets such as a material log, asset accounting log. In operational terms, the price determination component of the material ledger generates a direct entry to the journal table. The most important factor is that SAP has resulted in reduced data and replications across all its FI modules. The updated version has also extended its journal block to coding block which was one of the most tiresome aspects of implementing except costing-based profitability analysis which is transformed to very instantaneous and automatic.
The delayed reporting and analysis resulted due to loading, transformation, and extraction to connected data warehousing systems. The system with SAP HANA with S/4HANA Finance enables clients to transact and report at the same time and eliminates the need for offloading the reports and analytics at the very same time to one’s SAP BW systems. In other instances, it overall enables clients to combine transactional and historical data and gives freedom to take both strategic and tactical decisions based on the most recent data.
4. Simplified Data with SAP Fiori Based Clear Interface
The result of the release of SAP S/4HANA Finance has oversimplified the over data flow in one FI module as those involved with FI modules would very clearly know that many tables were being updated for every single transaction which was overall time to consume and tiresome. The release of SAP S/4HANA Finance has overall reduced the complexity of the data model available over the system.
Fiori plays a far more important role as being it is the user interface for the cloud version. The Fiori as an interface removes the clutter of SAP GUI based screens and performs similarly for all devices being it might be a laptop or a mobile device. Fiori performs on both HANA live content and S/4HANA analytics. The thing that fascinates me most is the package of more than 500 role-based applications that includes all finance-related roles and along with that one of the functions also provides analytical applications with real-time visibility into key performance indicators.
5. Financial Planning and Account Analysis
The access to real-time data to financial planners is due to updated software which ultimately freedoms them to take business benefiting decisions at any time. A common planning model is provided by SAP S/4HANA Simple Finance that empowers users to be with end-to-end simulations and the go financial analysis.
An incredible feature of SAP S/4HANA Simple Finance helps users to generate real-time reports that let one go deep down and generate real-time reports that in the case helps one be with any reporting dimensions and close the book faster. The industry average of closing books ranges to 3 weeks where firms with SAP S/4HANA Simple Finance were able to bring down it to 2 weeks.
6. Treasury and Financial Risk Management
The easy and real-time flow access to firms cash flow provided by SAP S/4HANA Simple Finance enables them to reduce their cash management cost by 58 per cent.
The fluctuating market dynamics do not affect your decision as they are very calibrated by SAP S/4HANA Simple Finance tools. The pending payments can be planned very intensively SAP S/4HANA Simple Finance lets firms to automate their accounts by making them receivable and payable which ultimately helps them in reducing time spent waiting for payments.
7. Enterprise Risk and Compliance with Simplicity
The use of SAP S/4HANA Simple Finance helps one to keep an eye on any kind of fraud taking place through financial faults and dubious data by automating compliance and enterprise risks. The frauds can be detected and mitigated in real-time with SAP S/4HANA Simple Finance before it gets out of firms hand.
The ECC applications structure modified to its core is totally simple. SAP S/4HANA Simple Finance has totally revolutionized by removing most of its unwanted tables that lead to a decrease in time required unwanted tiresome functions and increased time for responding to transactions and queries. The lesser time is required on the application itself so most of the time can be spent on strategic as well as organizational efforts. The greater level of democrat-sized data access and subject awareness has given immense power to applications that are running natively on a powerful HANA platform.
8. Modern Enhanced Ease of Use
The innovative Fiori user interface enables ECC applications to be even run on the advanced web-based format. The use of Fiori has changed the view of the modern design of comprehensively redesigned user experience. The qualities that make Fiori best among all are highly responsive, personalized, and mainly simple, which ultimately leads to role-based user experience and along with best user experience irrespective of any device.
The most important factor that most of the users are unaware of is a modern product, but it’s not necessary that a product launched today’s is modern in its aspect but only that product is modern that serves the most future requirement of the user which has been tried to do in SAP S/4HANA Simple Finance. In many instances, there were many ECC applications but what SAP S/4HANA Simple Finance aims at providing is data accessibility, context, and speed which many applications failed to achieve. SAP S/4HANA Simple Finance is the only system where no one is compelled to upgrade to an upward version or instances where they might certain amount of data as it keeps most of its updates optional to its customers.
9. Preparing for Future Innovation with SAP S/4HANA Finance
One the most things that fascinate most of the users is its innovative application, this is SAP application is developed keeping perspective of future in mind and SAP S/4HANA Simple Finance ability to synchronize with latest users, technology, and demand. Today is the era where technology is changing to an unimaginable speed which most of the firms are unable to catch up with, whereas SAP S/4HANA Simple Finance provides the firm with such a technologically advanced platform that enables firms to match up with the latest technology.
SAP S/4HANA Finance follows a more of a holistic approach to developing a set of financial accounting and management solution, calculating and spanning financial analysis and planning and guiding a firms risk and compliance management. The supportive tools of SAP S/4HANA Finance even stand for collaborative finance operation, treasury management and even supporting financial close.
10. Financial Planning and Analysis (FP&A)
Financial planning and analysis are one of the efficient finance functions that can tremendously boost up planning cycles and so variably do boost the profitability of finance functions. Data replication issues can be easily countered by planners as they can access real-time master data with accruals very efficiently in SAP S/4HANA Simple Finance. Clients can easily link up their planning and utilize real-time operational data that can be helpful in removing possible time lags and un-necessary data.
Financial analysis can be done on the go with desired levels of granularity using an individual table in-memory. Updates, development, and reporting can be an inseparable part of organizations whole financial planning lifecycle.
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11. Aligning Cloud and On-Premise Application Scenarios
Users and organizations who are looking to commit to a Cloud-based future will find their needs met in the S/4HANA product which offers the capability to transition quite easily from the On-Premise version to the Cloud. And this is not just SAP-specific, with all organizations having to be ready for it, since an enterprise may decide on moving all applications, and possibly even its infrastructure to the cloud at any given time for mainly reducing cost-overheads. There is great news for businesses looking to gain from both On-Premise and Cloud scenarios through migration and coupled data quality solutions which can be implemented in either version or also applicable in a hybrid manner.
Watch SAP S/4 HANA Finance for Beginners:
Enterprises will be able to enhance control and compliance, minimize closing workloads, costs, and even close the books faster using SAP S/4HANA Finance processes for accounting and financial close.
SAP Accounting integrates management and financial accounting along with profitability data into a single universal journal. And also eliminates indices, totals and other pre-defined aggregates and depends on line items as a singular source of truth.
The universal journal architecture comes integrated with Fixed Asset Accounting for SAP S/4HANA meaning redundancy of data is eliminated. Several parallel documents for every valuation are posted in real-time to make sure values are correct right from the start. Given below are the summarized benefits of this feature of Simple Finance:
Users will be able to execute closing tasks and inter-period processes in real-time. One will be able to run real-time reporting with full drill-down according to any dimension Using a single, unified data model for simplification of processes is made possible with enhanced productivity, and minimization of risk. Easy execution of depreciation runs along with simplification of the processing logic and data structures are also made a reality. Users will be able to leverage line item postings for each individual asset, enabling detailed reporting, which makes SAP S/4HANA Simple Finance successful.
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