SAP S/4 HANA Finance – An Efficient Financial Module Process for All Corporates24-Jun-2021
An enterprise having a large turnover has effectively adopted Enterprise Resource Planning or ERP. SAP S/4 HANA Finance is about simplifying your accounting, improving cash management, and eliminating data replication and data redundancy.
For businesses and corporates, the finance and accounting departments are the major constituent part of the successful running of it. For the attainment of a profitable long run, the data, processes, and key figures play an important role. This has to be analyzed in real-time such that the result and forecast from the analysis are used for making reliable decisions.
To effectively handle the flow of data and information from manual steps and error-prone work efforts need to be automated. SAP S/4 HANA Finance provides accounting process solutions with extended financial functions for accounting and finance tasks. Enable to accelerate financial processes, reduction in time and cost and simplify consequently.
Why is SAP S/4 HANA Finance an Efficient Financial Module Process for All Businesses and Corporates?
Implementing SAP S/4 HANA is a crucial investment and significant technology choice for the companies to make. It is a big deal for the Chief Finance Officer of the company to decide as to when and how to integrate the SAP S/4 HANA into an efficient financial module process.
SAP S/4 HANA is a premium brand for SAP’s financial and accounting process. Built as next-generation, in-memory computing, handles massive data, an intelligent ERP.
Traditional ERP systems can optimize transaction processing of the data store in many different tables. The SAP S/4 HANA has its Universal Journal which stores all the financial transaction details in just one table. Advantages of this access and ease of availability of the data with zero-latency.
SAP S/4 HANA Finance brings a simplified data model. You can record data once and use as many times and create a single source of information consolidation. Analysis of data and Insights from data go hand in hand because of how feasible and quick the process becomes.
SAP S/4 HANA enables better speed and better insights in every area of finance. A platform for real-time analysis and no more of a separate reporting system, long processing time, and batch jobs.
Though SAP S/4 HANA Finance is expensive with effective training required for implementation but with everything getting digitized, digital transformation is an upfront choice that will drive value for business and address cost and risk in a positive manner.
SAP S/4 HANA Is Different Than SAP ERP:
The SAP S/4 HANA Finance is different from the standard SAP ERP. As stated above the biggest difference or change is about the Universal Journal. The Universal Journal combines separate tables from the general Ledger, Controlling, Asset Accounting, Profitability Analysis, and Material Ledger all into one integrated table called Universal Journal as a single source of truth.
Instant reconciliation between financial and accounting modules and synchronization between internal accounting and external accounting in one physical table.
Leads to financial process because of a real-time single source, faster processing, and faster productivity because of better user experiences.
Benefits of SAP S/4 HANA:
- Financial closures in real-time: real-time processing of the financial data enables the quick view of year-end closings, month-end, and the end of quarter closing. Applies to Profit and loss statements by making time-consuming settlement run not necessary.
- Universal Journal is the single source of truth a database with all information needed to have flexible reporting, increase performance, and rapid drill-downs.
- Detailed Planning and precise forecasts: the consistent and reliable data from a single and central database would help to estimate developments, lead to forecast and simulation at an early stage.
- All-inclusive reporting and analysis function: comprehensive and individual evaluation in real-time options are available.
- Controlling and accounting are linked because of the software foremost to internal management and the external reporting having access to all-time consistent data leading to quick and error-free financial statement preparations.
- Workflow becomes easy, intuitive, high user acceptance, and personalized.
- SAP S/4 HANA impacts Financial and Accounting Close: improved and accelerated close time
- Improved full reconciliation process between the management and the statutory books
- Treasury: improve cash and liquidity
- Customers experience enhance invoice and receivables
- Improved audit management
- Avoids frauds, mitigate risk proactively
The services of SAP S/4 HANA Finance are:
- Bank Accounting
- General Ledger Accounting
- Asset Accounting
- Cash / Liquidity Management
- Accounts Receivable and Accounts Payable Accounting
- Investment Management
- Profitability Analysis
- Cost Element and the Cost Center Accounting
- Profit Center Accounting
- Product Cost Controlling
Why move to SAP S/4 HANA Finance: To Simplify Accounting
The question is why businesses and corporates need to use SAP S/4 HANA? Probably not every company needs it. But it is a seminal moment to make a choice.
Companies choosing to implement SAP S/4 HANA would be benefiting sooner and these benefits in long run would be substantial and play an imminent role. Competitive advantage is always superior.
The companies having SAP ERP are at risk as SAP mostly is going to end its legacy version in a few years to come.
As the degree of growth of business and the complexity with it are going to rise then SAP S/4 HANA will make all this easy. As it evolves with the new businesses acquisitions, and divestitures in the future will become an easy process.
The objective of data quality with SAP S/4 HANA would be a simplified process. Most of the companies who have multiple SAP and other ERP systems are struggling with their data and get it together. But with SAP S/4 HANA finance entire enterprise will have financial alignment and a simplified process.
SAP S/4 HANA Futuristic Automation for Accounting
For the future prospective SAP have plans to transform SAP S/4 HANA into intelligent ERP which can leverage machine learning and the application of predictive analytics for the data explosion expected.
Future releases from the SAP can include the personalization of the digital assistant driven by the NLP that is Natural language processing and the A-I artificial intelligence that will guide the users through the process of data usage to improve upon the optimization of sales, monitoring projects, improve purchasing decisions.
The Data action function would create and fill forecast models, copy the data between modules and models enabling the creation of more complex transformations.
SAP has promised for pre-written financial planning along with analysis content with deeper integration of the cash flow planning and the profitability analysis.
SAP S/4 HANA as a Great Solution:
SAP S/4 HANA is a pronounced solution to many financial and accounting challenges. Cost reduction is just not enough. SAP S/4 HANA will improve business partnering and other innovations will bring opportunities and benefits.
You need to plan ahead as SAP S/4 HANA implementation and the configuration processes are complex and even time-consuming. The CFO and top officials will be tied up for years in its implementation. Specialized integration knowledge is the answer to all problems to simplify the accounting process.
Large enterprises can choose cloud-first deployment for faster implementation. Know your options well.
Companies steadfast to SAP but grappling with SAP S/4 HANA Finance implementation decisions we can help. We provide services to help in assessing the impact of SAP S/4 HANA on your business. Work with you on the technical landscape, creating blueprinting workshops and integration/ implementation services.
Connect and Automate for Better Accounting Today and Better Forecasting
With Accely, you can get the support you need to keep your SAP S/4 HANA finance solutions up-and-running. SAP S/4 HANA helps in compliance and data security on an on-premise data center and cloud. We help you to focus on your business and customer relationship by making your financial and accounting simple and all comprehensive. Optimize your finance and accounting with all new possibilities with SAP S/4 HANA finance.