SAP HANA, S/4HANA, and S/4HANA Finance in a Nutshell

Category: SAP S/4HANA Finance Posted:Apr 11, 2020 By: Alvera Anto


In a traditional data warehouse, real-time data analytics is not possible. It is restricted by the design consideration or let’s state it’s not designed to be real-time.

SAP HANA is an in-memory database as well as an application platform. What makes it different is the design factor to consider, which was not in a traditional database. It uses or let’s say it stores data (all of it) in In-memory, making mix-use Columnar and also Row storage space. The data compression ratio could be as high as 1:10. It permits you to keep away from indexes, materialization as well as aggregation, which now can be done on the fly. You can run your Analytics as well as OLTP application in the same instance thereby reducing the system landscape complexity as well as do ad-hoc analysis.

Traditional Way:-

Limitation in this design

  • Redundant data in several places.
  • Reduced speed as a result of numerous data accesses from different sources and designs.
  • No single resource of fact.

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  • Single resource of reality
  • No repetitive data
  • Less complex landscape as well as the ease of maintenance  

As shown in the above diagram, With SAP HANA, the key is pushing as much of the logic execution into the database as possible. Keep all the data-intensive logic down in the database like SQL, SQLScript, and HANA Views.

So then the question occurs what is S/4 HANA?

S/4HANA is natively built on SAP HANA with the simplified data model, without indices, aggregates, and no redundancies. It leverages the multi-tenancy functionality of SAP HANA. It can be deployed on-premise, cloud or mixed/hybrid. It is natively designed with SAP Fiori offering integrated user experience.

Basically, S/4HANA is ‘just’ a new name for the same good old ERP functionality, the only distinction is that ERP can now run on an in-memory database (SAP HANA).

Are you ready to dive deeply into SAP S/4 HANA World? Understanding the Business Benefits of SAP S/4HANA in a Better Way

So currently I have a quick concept concerning SAP HANA and S/4 HANA, what is then SAP Simple Finance?

SAP Table area

SAP Simple Finance is an add-on to ERP, which implies it is a standard product developed to work with top of SAP ERP (ECC6.07 to be specific). The official name used is ‘SAP Simple Finance add-on 2.0 for SAP Business Suite’. The Finance add-on changes the classic Financials applications in your SAP ERP system. In contrast to audit in SAP enhancement package 7 for SAP ERP 6.0, Simple Finance features a simplified data model. Total tables and also application index tables have actually been removed and replaced with HANA views with the same technical names. A list can be seen in the below table. This suggests the impact needs to be analyzed on your interfaces, your data warehouse, your authorization profiles, and also possibly your monitoring tools.

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SAP S/4HANA is the much shorter kind of SAP Business Suite 4 SAP HANA, which suggests it is the fourth version of SAP Business Suite. It is designed to run just on SAP HANA. The next-generation Business Suite of SAP is SAP S/4HANA which is designed in a simplified way particularly to work with SAP HANA and to replace the SAP ECC/ERP.

I hope that by now you have had an overview of SAP S/4 HANA Finance. Before you enroll in ZaranTech’s certification course on SAP S/4 HANA Finance, do check out the S4 HANA Finance demo:

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