Key Differences Between SAP ECC

and SAP S/4HANA

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 SAP ECC and SAP S/4HANA

SAP ECC

SAP ECC stands for SAP ERP Central Component. You

can configure SAP ECC to suit your needs in all areas of
Your business, from finance to HR to logistics . SAP ECC
is Modular in design, which makes it highly
customizable . SAP ECC has many interactions between
components, which makes
It flexible but also more complicated If you change one
area, it Affects the function in other areas . You need to
carefully plan Changes like upgrades and add ons so you
don’t disrupt Important business functions . This also
applies to migrating Your systems to SAP S/4HANA.

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 SAP ECC and SAP S/4HANA

SAP S/4HANA

SAP S/4HANA is SAP’s newest generation of ERP software thatworks on

on-premise and in the cloud. With SAP S/4HANA, youcan analyze large
amounts of data in real-time. You’ll also enjoyfeatureslike:

Personalized insights
Integrated processes
Embedded cybersecurity
It uses technologies like AI, machine learning, and automation
to improve business efficiency and speed.
The main downside is that SAP S/4HANA is only compatible
with the SAP HANA database.

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 SAP ECC and SAP S/4HANA

How is SAP S/4HANADifferentFrom SAP ECC?

SAP S/4HANA streamlines features and processes from SAP ECC

to reduce costs and boost business efficiency. This means some
features have changed, while others have been replaced or
combined into new features.
Some of the key changes in SAP S/4HANA are listed below.

Default Account-Based CO-PA

In SAP ECC, costing-based CO-PA (CO-Profitability Analysis) is
the default option. But in SAP S/4HANA, the default option is
account-based CO-PA, though you can run both options
together.

Integrated Business Partners

In SAP ECC, customers and vendors are separate data objects.
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 SAP ECC and SAP S/4HANA

SAP S/4HANA integrates customers and vendors into a unified

master data object called business partners. Customer-vendor

integration has several benefits, such as:

One business partner can have multiple roles and addresses

General data is shared across roles, which reduces your
database footprint There's less redundancy since unused data
is deleted after a certain time-period

New Featuresin SAP S/4HANA

SAP S/4HANA includes a ton of new features to help you
manage your data more effectively. Key features include the
following.

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 SAP ECC and SAP S/4HANA

ACDOCA: The Universal Journal

As mentioned before, SAP S/4HANA combines several data
modules into a single table called ACDOCA (the Universal Journal).
This includes asset accounting (AA), GL, ML, management
accounting (MA), FI, and CO-PA. ACDOCA removes many
aggregate and index tables, which greatly reduces your data
footprint. It's also a much more efficient system.

The SAP HANA Database

As we discussed earlier, SAP S/4HANA can only run on the SAP
HANA database. But, thanks to the SAP HANA Cloud database,
SAP S/4HANA is faster and more efficient than SAP ECC. Why?
There are several reasons. Firstly, SAP S/4HANA reads data from
the main memory instead of the hard disk, so there are fewer
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data movements. Next, the tables in SAP S/4HANA are column-

based instead of row-based, so it only reads the relevant column
in a query. It can also process different columns in parallel. There
are no aggregate, index, or history tables since applications can
access the original data. Lastly, SAP S/4HANA combines the
online transactional processing (OLTP) and online analytical
processing (OLAP) tables. You no longer need to reconcile them.
Global Trade Services
SAP S/4HANA hasglobaltrade services (GTS), which replaces the
foreign trade functions in SAP ECC. SAP GTSusesautomationto
speedupprocessesthatwere manual in SAP ECC. This includes
embargo checking, license checks, unimportantexport declarations.

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 SAP ECC and SAP S/4HANA

RevenueAccountingand Reporting(RAR)
The SAP S/4HANARevenue Accounting and
Reporting(RAR)module replaces SAP ECC’s SD Revenue Recognition
module. Rarish an add-on that’sbasedon the new, five- step revenue
recognitionmodelfound in InternationalFinancialReporting Standard
15 (IFRS15). RARcomeswith
newoptimizedcontractmanagementcapabilitiesto complywith
IFRS15. Atte same time, it simplifies revenue recognition.

SAP Fiori User Interface

SAP S/4HANA introduces newuserinterface, SAP Fiori. SAP
Fiorigivesusers a consistent, intuitive, and integrated experience.
With SAP Fiori, youcangetworkdonefaster and more accurately. This
speeds up onboarding and training, and provides a
betteruserexperience.You canals create custom enterprise
patchwork consistently across devices.
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Benefitsof Moving to SAP S/4HANA

In 2021, 72% of businesses said the biggest benefit of SAP

S/4HANA was improved efficiency, followed by
greater satisfaction (61%). Other benefits of moving to SAP
S/4HANA include:

• Better integration with other SAP products.

• Lower costs, such as lower operational and ownership costs.
• A smaller database footprint due to simplified data models.
• Automated processes improving productivity and
• performance.
• Faster, more intelligent decision-making.
• Higher overall profits.
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 SAP ECC and SAP S/4HANA

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