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What is the difference between SAP S/4HANA and SAP ECC ERP? (SAP S/4HANA vs SAP
ECC)
by : Akilesh
August 10 , 2018
1 Comment
in : ERP , SAP S/4HANA
3
SAP introduced SAP S/4HANA in 2015. Since then, most of us are following the innovations & simplifications in SAP
S/4HANA. We also wonder about the the functionalities & business benefits of SAP S/4HANA. However, even now,
questions do arise in SAP S/4HANA vs SAP ECC (SAP S4H vs SAP ECC) discussions as to what is different between
SAP ECC and SAP S/4HANA. So, what is the difference between SAP S 4HANA and SAP ECC?
In this blog post, I will cover some of the key differences between SAP S4H and SAP ECC. Therefore, by the end of the
blog, you will have a brief overview of the SAP ECC SAP S/4HANA difference.
The HANA in-memory database reads data faster than traditional databases which fetch data from the hard disk.
This is because data is read from memory, i.e., data resides in the main memory RAM (though Write happens in
hard disk).
HANA’s column based tables enable faster access (since only affected columns need to be read in a query), better
compression (because only distinct values are compared to rows), parallel processing (different columns can be
easily processed parallely)
OLTP and OLAP capabilities are available in the same system. They offer real time reporting and predictive
analysis.
There will be no aggregate (total), index, and history tables in SAP S4HANA. This is due to dynamic aggregate
creations on the fly based on line item tables.
In addition, the MATDOC, the new line item for inventory management, eliminates 26+ tables. Material documents are
stored in MATDOC but not in MKPF or MSEG tables.
Unison of CO and FI
In SAP ECC, we could observe FI GL accounts mapped to CO primary cost elements. However, in SAP S/4HANA, the
universal journal uses only one field to store both GL accounts and cost elements. Cost elements (both primary and
secondary) are now GL accounts. Hence, a relevant cost element category is used when they are created and maintained
(in FS00). Reconciliation (as in case of CO to FI) is not needed now. Therefore, period end closings will be faster.
Automatic risk scoring & credit limit calculations with a credit rule engine
Automatic update to master data based on the approval of credit limit
Work flow for credit events
One key point of difference between SAP S/4HANA and SAP ECC is that while MRP can be only be run on plant and
MRP area level, it cannot be run on the the storage location level in SAP S/4HANA. In SAP ECC, storage locations can
either be excluded from MRP or they can be planned separately. For SAP S/4HANA, SAP recommends usage of MRP
area with MRP type for scenarios at storage location level. In addition, MRP with subcontracting has been simplified in
SAP S/4HANA.
SAP ECC’s SD Revenue Recognition is based on Generally Accepted Accounting Principles (US-GAAP), International
Accounting Standards (IAS)/Financial Reporting Standards (FRS). Therefore, it provides the option of recognizing
revenue based on an event (like Goods issue, proof of delivery ) or over a period of time (based on specific set of dates)
apart from the standard way of realizing revenue on billing.
The new standard introduces a 5 step model.
Revenue Accounting and Reporting (RAR) in SAP S/4HANA accounts for fundamental changes with IFRS 15.
Moreover, it also meets the requirements of parallel accounting and cost recognition.
Customer Rebates
Settlement management through Condition Contracts in SAP S/4HANA replaces customer rebates through existing SD
rebate processing in SAP ECC.
Output Management
SAP S/4HANA’s Business rule framework plus (BRF +) replaces SAP ECC’s message determination with the NAST
table. In addition, the target architecture is based on Adobe Document Server and Adobe forms only. Please use OSS
note 2228611 for more details.
User interface
A key difference between S4H and ECC is that SAP Fiori is the new user interface in S4H to offer a rich and intuitive
user experience.
You can now understand that there are some significant changes in SAP S/4HANA. Therefore, IT leaders should
understand the functional and technical differences and build their best business use case on why their firm should move
to S/4HANA.
Having completed a variety of SAP and SAP S/4HANA projects across multiple industry verticals, Kaar Technologies
can help you with this process. If you want to understand our SAP customer success stories, take up an SAP S/4HANA
readiness assessment or need a consultation on the path to digitization with SAP S/4HANA, please get in touch with me
at sakilesh@kaartech.com or send us a message on our website.
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Akilesh
Aspiring digital marketer with a specialization in Content Marketing, SEO, and Social Media Marketing, working
towards the proud title of CMO while also strategizing and working with SAP architects to guide enterprises on the
optimal path towards SAP S/4HANA and digital transformation with tailor-made enterprise-specific tools and
accelerators to reduce capital expenditures and maximize business value in a risk-free manner.Ping me on LinkedIn or
mail me at sakilesh@kaartech.com if you would like talk regarding the ideal paths to SAP S/4HANA.
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Comment ( 1 )
1.
Naresh
March 8, 2019 at 1:01 pm
Reply
Could you please send me the difference BETWEEN S/4 HANA FICO and ECC SAP FICO step by step details.
Thanks,
Naresh
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