BAO6714-Computerised Accounting in an ERP

Introduction:

The current study has the intention to demonstrate diverse advantages of software titled “SAP S/4 HANA” funds for company. Fundamentally, this assimilates historical outline of specifically S/4 HANA and illustrating the variance between this recently established solution of SAP and present ERP FICO. Moreover, illustrations have been supported by way of elucidation of case studies of firms clearing up issues they have encountered whilst transferring to this specific generation business group. Fundamentally, S/4 HANA can be considered as the business group of next generation that is essentially SAP that delivers real time group effort and support for procedures of digitized trade. Again, this also helps in experiencing superior usage of gadgets. As such, the product SAP ERP can be reinstated by the product (SAP S/4 HANA) by the closing of the year 2025 and afterwards become a division of enterprise administration of particularly SAP. Basically, novel financial core can necessarily be formed by this specific solution since it aids in reacting to diverse challenges encountered by chief financial officer (CFO) of business concern by augmenting efficiency of the procedure, enhancing overall functionality of statement with respect to speed, suppleness along with enhancing user experience. Business concerns have the necessity to select between establishing a new one (Greenfield) and migration (namely, Brownfield) in case if they plan to put into practice digital core in business in specifically real time. Again, in segments of an incorporated ERP setting, software delivers support in particular areas for instance, accounting along with closing of period, financial evaluation and planning, concerted finance functions, financial along with management of treasury risk, conformity and management of enterprise risk.

Discussion:

Historical summary of particularly SAP S/4 HANA for the area of FINANCE

The account of SAP can be dated back at the time when the initial product was declared in the market during the period 1972. In essence, architecture of initial product of particularly SAP that is necessarily R/1 was founded on what is recognized as a method of one tier (Sampaio and Bernardino2016). In essence, this refers to the fact that a single method or else server have three different layers of a specific system of ERP. This mainly comprises of application, presentation in addition to application. Furthermore, there are two different servers that have two different versions namely R/2 product put in it. Essentially, R/3 can be considered as the most recent version in the period of SAP architecture. Ylä-Kujala et al. (2017) suggests that the most pioneering product in the account of SAP is necessarily R/3 till the period 2012. Nevertheless, this has been altered with the institution of HANA. Also, there is stated variance between software namely S/4 HANA, HANA in addition to S/4 HANA for the area of finance. In addition to this, S/4 HANA for the area of finance can be considered as an application for administration plus financial accounting.

However, together with each and every account of S/4 HANA, a simplified and novel table framework can be altered by increasing functionality. In essence, the initial application that was introduced by mainly SAP was essentially S/4 HANA for finance for novel business group. However, the functionality within the application assists business concerns in accelerating, maximizing and simplifying utilities of finance (Segal 2016). Together with several other solutions in particularly SAP, that is to say, S/4 HANA for the area of finance has its own functions on completely assimilated basis. In that way, it can be said that an transforming digital core is essentially delivered by SAP.

Figure: S/4 HANA Enterprise Management

Source: Rouhani and Mehri (2016)

Different functionalities of three diverse elements of S/4 HANA have been elucidated in detail in this specific segment. This kind of components takes in accounting of essentially SAP that is considered to be necessary.

Figure: Outline of S/4 HANA

(Source:  Rouhani and Mehri 2016)

Accounting using SAP:

As suggested by Rouhani and Mehri (2016), primary functionalities for administrative as well as financial accounting are included in accounting elements of SAP. Again, generalization along with simplification of specific logic as well as data structure can be considered as the primary focal point of SAP. In essence, the optimised codes of transaction of particularly HANA are necessarily delivered by S/4 HANA.

SAP for BPC:

Specific solutions of mainly consolidation of different business objects along with SAP planning assists in consolidation along with planning and this necessarily has extensive range of applications. There are certain applications that engage BPC 10.1 that is mainly for the NW/MS, BW – IP for assimilated planning and use of cloud for planning. Rouhani and Mehri (2016) recommends that innovation of this particular project makes it easier to obtain the source data necessary for consolidation as well as planning particularly in real time, reflection of data as well as real numerals acquired from the database of HANA.

Management of cash using SAP:

A suitable functionality for management of cash positions in real time and worldwide account balances of bank is presented by SAP solutions for management of cash (Rouhani and Mehri 2016). In essence, the procedure of handling bank account is undertaken cohesively by way of management of cash carried out by the treasury department since they are able to acquire incorporated view without shifting between diverse SAP modules. Essentially, management of liquidity process of planning, managing of cash and bank account can be considered as the core areas of particularly S/4 HANA for particularly management of cash. This kind of assimilated system of management of cash can help the business concern to correctly plan cash level at any particular time period (Sampaio and Bernardino 2016).

2.Variance between present SAP (in ERP FICO) and SAP (namely S4 HANA)

3.Advantages of SAP/S HANA for particularly businesses:

• With the institution of this product, business concerns are empowered to optimise opportunities delivered by novel emerging technologies (Nevo et al.2016). There are numerous demanding technique necessities that are established by the mechanisms of novel digital businesses as well as S/4 HANA in SAP assists by delivering real time collaboration along with support for the purpose of business procedures that are necessarily digitised.
• Enhancement of efficiency by means of automating the procedure: The real time along with mechanized procedures of business is primarily driven by the exclusive amalgamation of simplicity along with innovation delivered by applications of S/4 HANA (Leon 2014). In essence, this makes the procedure that is less inclined to different errors and aids in increasing productivity.
• Uphold procedure of decision making by way of acquiring access to different real time information (Kavanagh and Johnson 2017). All the pertinent outcomes and data can be obtained on real time basis using S/4 HANA. Essentially, this can aid business enterprises to frame timely decisions, predicting cycles and faster scheming. For instance, chief financial executives can resolve and address all the identified concerns with specifically introduction of transparency in real time and this can help in quicker closing time.
• Savings of costs incurred for information technology (IT): Setting of information technology remains simplified with the assistance of S/4 HANA. Furthermore, this specific product also aids in elimination of overlapping along with parallel data and maximization of data volume that aids in lessening ongoing infrastructure investment and operating costs (Georgantopoulos et al.2018).
• Effective collaboration: Employees operating in business concerns appoint such type of application that are user friendly and satisfied. In essence, novel methods of operating are essentially facilitated by a modernized and easy to utilize mobile user know-how (Chang et al.2014). Essentially among different information technology as well as business users, productivity of different users enhances up to approximately 30%.
• Augmented productivity: The procedure of undertaking business concerns can be streamlined by way of application of this kind of product since this assists in delivering an extensive range of different tangible advantages (Aleqab et al.2015). This includes 20% decrease in rates of particularly manufacturing specific faults, 25% enhancement in satisfaction of order, enhancement of 12% in efficiency of process of supply chain along with 15% decrease in procurement cost. In essence, business users can access and obtain requisite data utilizing advanced analytics and in that way infuse speedy reactions to alterations in business environment together with introducing transparency and presenting a simultaneous drop in manual load of work (Alamin et al.2015).
• Accelerating financial closing: The chief executive administrator of business concerns and the complete team are not necessary to spend weekend as well as nights to make certain timely pecuniary close on an annual basis, monthly close along with quarterly closing with the application of SAP S/4 HANA for the area of finance. In essence, there is considerable enhancement in financial closing procedure and speedy business decision can be made certain by the instant visibility of firm’s profit as well as loss accounts of mainly business founded on pecuniary trend together with emerging sales. Ylä-Kujala et al.(2017) stated that an appropriate along with reporting in real time can make certain simplification of database considering all the requisite pecuniary information ensuing from processing power of mainly S/4 HANA of mainly SAP. In essence, the requirement for replication of data in the specific system along with batch jobs namely business intelligence gets removed by application features.
• Business executives are able to execute the parallel asset valuation utilizing varied approaches of ledger along with accounts owing to elements of new accounting resources of SAP/4 HANA (Shalaby 2017). Also, it also makes it imperative to record different depreciation areas. Throughout different areas of valuation, there remains a posting of various systems in real time.

4.Case studies stressing on the concerns encountered by companies 

Issues for shifting to SAP/4 HANA for finance:

There are several businesses are in the course of shifting to this platform or system of S/4 HANA and this kind switching calls for a major change. Shifting to S/4 HANA might entail several difficulties to a business (Segal 2016). This is necessary for firms to be trained and become skilled at innovative ways of managing infrastructure of the system of SAP together with applications of ERP. As such, applications along with data on SAP can be considered to be vital assets that are necessary across the company and it is obligatory for companies to take into account different factors as different aspects of firms get influenced by this kind of applications (Shalaby 2017). However, in this context, it can be hereby said that the aspect that is of immense significance is associated to infrastructure.

Business concerns executing the application of particularly SAP/S 4 HANA for the area of finance have the need to select the option of starting a new or else migrating. Essentially, adoption of SAP/S 4 HANA for finance shows the way to system translation with respect to reformulating the procedure of business, novel experience of users and fresh technology based on the database (Sampaio and Bernardino 2016). Basically, in a bid to opt for the correct course of migration, also referred to as a phased approach also indicated as Brownfield approach else wise Greenfield approach, business concerns have the need to analyse various technical rudiments, analyse existing landscape along with different business case.

Different case studies presenting the functioning and performance of S/4 HANA can prove to be misleading with regard to choice of path of migration. In the course of evaluation of varied potential of implementation of S/4 HANA, businesses need to possess certain basics for application as well as installation of database of HANA. Corporation intending to switch to this kind of application is delivered with the prospect to initially migrate business suite of HANA. This is carried out in order to ensure that effect of employment such kind of database can be experienced beforehand (Rouhani and Mehri 2016). Nevertheless, in the following stage, business concerns have the need to entirely migrate to digital application of S/4 HANA whilst extending particular finance division of particularly S/4 HANA. Fundamentally, this indicates towards the fact that maximized and rational application of most recent time can be augmented by means of diverse other areas of functionality. Particularly, the capacity of projects on migration can augment whilst augmentation of supplementary enhancements that has the upshot on functions of business procedures on enterprise resource planning (Plattner and Leukert 2015).

Figure: Option of migration

(Source: Paulsson and Rosati 2017)

It can be hereby mentioned that S/4 HANA application can be implemented utilizing three different alternatives consisting of cloud, different on premise approach as well as hybrid approach by SAP. In essence, this process of employment of S/4 HANA can be carried out by means of On-premise approach of S/4 HANA by majority of business concerns. As such, the extent and degree to which different potential of application of S/4 HANA are used depends upon selection of Migration state and set up (Ociepa-Kubicka 2017).

The business case study that is reflected here is necessarily that of Bluefin. This takes into account the execution of S/4 HANA after different advantages as well as disadvantages of migration to the advanced version and initiating the process as fresh. However, it has been established that migration to the process of S/4 HANA is not entirely technical (Nieuwenhuis et al. 2017). In essence, there shall also be alteration in core architecture together with alterations in different transactions, procedures along with table. In essence, system of shifting to S/4 from discharge of R/3 shall have the need of different operational along with technical resources for re-examining different business procedures plus transactions. Certain most significant criteria that are experienced by professionals of Bluefin while switching to this specific application of S/4 HANA are options of edition, releasing, specific technical requirements. It can be hereby mentioned that there is no trouble-free way of migration in case if SAP does not necessarily deliver solutions of ERP. Nevo et al. (2016) suggests that the Unicode system of coding can be considered to be one of the most important necessities for switching to this system of SAP HANA. Essentially, conversion to Unicode is necessary in case if Unicode system does not necessarily possess most recent database. Particularly, the criteria that are taken into account by business concerns at the time they intend to migrate to S/4 HANA take in remediation of definite custom code, migration of data, handling intricacies of architecture and alterations of business models (Nieslanik 2017). In case if the business concern has developed difficulties while enhancing dependencies along with total number of business procedures, environment of operation and architectural setting, then in that case, a definite phased tactic or else hybrid approach need to be taken into account by corporations. As such, this is mainly due to switching to S/4 HANA that might perhaps not be very much realistic otherwise possible. Migration can become manageable by taking into account phased tactic. Nevertheless, there shall become a temporary state of parallel setting (Medina et al. 2014). Bluefin had the requirement of implementing the encoding system of Unicode for the purpose of switching to the database of SAP HANA. Business concerns have the necessity undertake the procedure of conversion to the system of Unicode in case if the existing database is not in conformation to system of Unicode for upholding process of migration of Brownfield. As such, the future of to S/4 HANA can be considered to be more pricey in case if the dataset is huge and the analysis of data migration stratagem are directed by the analysis of business concern. This kind of migration strategy includes growth of data as well as life cycle, different factors of compression alonf with observation of specific reports. In essence, the setting of enterprise resource planning would include a distinct system and in case of numerous systems of application, there shall be layers of integration, diverse releases along with profound customization.

Yet another business case that can be hereby mentioned is that of Capegemini. The company considered migration to S/4 HANA. Fundamentally, this was realized by enterprises that kind of switching can lead to enormous savings on ownership cost on the whole and enhanced business value (Leon 2014). Additionally, there are several applications that are generated by SAP and are obtainable by means of S/4 HANA. The company Capegemini evolved toward software development by way of providing clientele with diverse virtualized advantages associated to production background of mainly SAP HANA.

Also, it was observed by the company Capegimini that it was necessary for them to change the way of conducting business owing to adoption of the system of S/4 HANA. It was observed that there was need for clear definition of price and need for mapping of destination before initiating the process of this advanced application (Kavanagh and Johnson 2017). With regard to this, business concerns have carried out analysis for ascertaining the way the business functions could be transformed owing to implementation of S/4 HANA.  

Approach of Capgemini towards process of migration:

(Source: Georgantopoulos et al.  2018)

Various influences as well as consequences are reflected transparently by means of thorough analysis. However, it can be hereby observed that there are no firm that calls for intention to attain certain tangible worth from the procedure at the time of when flowing into the stage of technological alteration. Real value of the application of S/4 HANA of SAP is unlocked by functioning of the company Capgemini. Essentially, the services are formulated in such a manner that the overall landscape of business procedure is taken into consideration (Elbardan et al. 2016). As such, this would consequently direct towards acceleration of procedure, risk minimization and enhancement of agility.

For the purpose of designing the roadmap as well as the stratagem, it is necessary for business concerns to assess the process of transformation and influence of business. Fundamentally, adoption of S/4 HANA of SAP lessens overall information technology cost. Services related to migration can deliver benefit associated to methods of the firm Capgemini. Utilization of analytics of real time for the purpose of leveraging definite transactional data can assist in obtaining visibility in real time and enhancement in agility of the business procedures (Chang et al. 2014).

Another business case that can be taken into consideration includes that of Gartner. Gartner is an American advisory as well as research firm that deliver advisory services and insights to diverse business leaders on process of development of information technology. The company Gartner carried out a benefit analysis framework associated to acceptance of S/4 HANA. In essence, the evolution and acceptance of S/4 HANA can be tracked in the company since the period of launch of this specific product that is during 2015 (Aleqab et al.  2015). The company assessed the influence of this specific application with regard to analytics in real time, improvement of performance, and advanced functionality, alteration of business potential as well as Fiori application with basic structure. However, it was observed by firm that utilization of this kind of benefit structure can assist in focussing on important advantages in interactions with clientele. Approximately 800 enquiries with clients were carried out by analysts regarding S/4 HANA and thereafter it decided to shift to S/4 HANA after assessing several tactical adopters namely huge manufacturing organization along with different retail firms (Alamin et al. 2015).

Conclusion

The above mentioned study helps in comprehending processes of implementation or else migration to the new system of SAP. More specifically, the current study elucidates in detail about the S/4 HANA and evaluates by stressing on processes of migration to the new platform. It can be hereby determined that transferring to this specific application of SAP can be carried by business concerns by means of utilization of variants that is necessarily Greenfield together with Brownfield tactic. As such, both the mentioned approaches have their own benefits, utilizing the former tactic can help business concerns to establish themes with more suppleness and establishment of advanced system with simplification of system. On the other hand, this study also helps in understanding the Brownfield approach that lead to less disruption to the operations and require comparatively short runtime. The study at hand also presents three different business cases associated to adoption of SAP S/4 HANA and the concerns encountered whilst migration to this new platform.

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