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Unit 1: Overview of Financials for SAP S/4HANA

Remember, core HR and core finance are also included in Enterprise Management, rather
than only logistics and operations applications.
For all these areas, there are additional LoB solutions that can be added to significantly
extend the functionality and provide innovation on top of the core.
SAP S/4HANA Enterprise Management is the digital core and represents the starting point on
which modern, innovative digital applications are implemented and built.
SAP ERP is an integrated computer-based system used to manage internal and external
resources, including tangible assets, financial resources, materials, and human resources. Its
purpose is to facilitate the flow of information between all business functions inside the
boundaries of the organization and manage the connections to outside stakeholders. Built on
a centralized database and normally utilizing a common computing platform, ERP systems
consolidate all business operations into a uniform and enterprise-wide system environment.

Evolution of the Finance Application

Figure 5: Evolution of the Finance Application

Beginning with ECC 5.00, SAP customers had the choice between two different forms of
financial accounting:
● Classic General Ledger Accounting
● New General Ledger Accounting

Both options were part of an SAP ERP running on a traditional database.

After introducing the SAP HANA database technology, SAP offered its customers the
opportunity to enhance and speed up FI and CO processes not only by using the new and
faster database technology but also by using a set of accelerators especially designed for
using SAP Financials on an SAP HANA technology. Still classic and new G/L were the two
options for SAP’s customers.
With SAP S/4HANA and SAP Accounting within SAP S/4HANA Finance, there is only one
possibility for general ledger accounting which bases on the functionalities of the former new
general ledger accounting.

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Lesson: Describing SAP HANA and SAP S/4HANA

Overview on the Functionality of SAP S/4HANA Finance

Figure 6: Overview on the Functionality of SAP S/4HANA Finance

SAP provides a fully integrated platform, based on the latest technology trends, to allow
finance to lead the transformation to digital business.
SAP S/4HANA Finance gives you the ability to centrally track financial accounting data within
an international framework of multiple companies, languages, currencies, and charts of
accounts.
For example, when raw materials move from inventory into manufacturing, the system
reduces the quantity in inventory and simultaneously subtracts values for inventory accounts
in the balance sheet. The Financial Accounting function complies with international
accounting standards, such as United States Generally Accepted Account Principles (US-
GAAP) and International Financial Reporting Standards (IFRS). It also fulfills local legal
requirements of many countries and fully reflects the legal and accounting changes resulting
from European market and currency unification.
Key features and functions of Financial Accounting in SAP S/4HANA Finances:
● General Ledger Accounting
● Accounts Receivable or Accounts Payable
● Fixed Assets
● Banks
● Fast-Close Functions
● Financial Statements
● Parallel Valuation

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