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Mrinal Kanti Roy

May 16, 2016 6 minute read

S/4HANA and its di erences with ECC

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Most of us are following the innovations & simplifications in S/4 HANA and wondering about the functionalities &
business benefits of implementing S/4 HANA (S4H).Find lot of questions on differences in ECC with S/4 HANA
(S4H). Trying to highlight the major(not a full list) differences in digital core of S4H as planned by SAP w.r.t ECC

Hana database

S4H can only be run on Hana database unlike ECC which can be run on Oracle , IBM DB2 etc. Back bone of S4H’s
design is with HANA’s in memory capability and below design principles

In-memory database means that data is read from memory i.e data always reside in main memory RAM (though
Write happens in hard disk) and hence in-memory database reads data much faster w.r.t traditional databases
(fetching the data from hard disk)
Hana’s column based tables provide faster access (as only affected columns need to be read in a query), better
compression (due to few distinct values compared to rows), parallel processing (different columns can be easily
processed parallely)
OLTP and OLAP capability in same system with real time reporting and predictive analysis
There will be no aggregate (total), index and history tables in S4H. Aggregates are created dynamically based
on line item table instantaneously (on the fly).

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Single source of truth

S4H combines the data structures of different components (for FI , AA , CO , CO-PA and ML) into a single line item
table ACDOCA, called as Universal journal . It eliminates several aggregate and index tables. Now, data needs to
be inserted only a single table instead of several tables thus reducing the data foot print drastically.

MATDOC is also a new line item table for inventory management and it eliminates 26+ tables. Material documents
will be stored in MATDOC but not in MKPF or MSEG tables.

Merger of CO and FI

In ECC , FI GL accounts are mapped to CO primary cost elements . In S4H, only one field of universal journal is
used to store both GL account and cost element. Cost elements (both primary and secondary) are now GL accounts
and hence created / maintained (in FS00) with relevant Cost element category. Reconcilation (as in case of CO to
FI) is not needed now. Period end closing also will be faster.

New GL

S4H is technically very similar to new GL of ECC due to its data structure. Customers using classic GL need not use
Document split or parallel ledger. However, new GL’s functionality (Parallel ledger) is a pre-requisite for new Asset
accounting .

CO-PA

Account based CO-PA is now the default option with Costing based CO-PA as optional. Both options can be run
simultaneously. Refer URL http://scn.sap.com/docs/DOC-65828 for more details.

Custom code

Read operations in custom code will be redirected to compatibility views (like V_COEP for CO line item table COEP)
via a special setting at database interface level (i.e invisible to source code) so that the custom reports can work
without any disruption.

Business partner

All customer and vendor master need to integrated / migrated as Business partner . Probably, SAP is trying to align
the concept of business partner as in other SCM applications like APO , EWM , TM etc as these SCM applications
also will be natively integrated with core of S4H in future releases. Customer-vendor integration (CVI) is a

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mandatory step. Refer URL https://websmp201.sap-ag.de/~sapidp/012002523100007374172016E.pdf for more

details.

Extension of Material number eld : Material number can now be 40 characters from existing 18. It is a optional
feature. Impact of this extension on custom coding, interfaces, other SAP applications need to be evaluated
before switching on 40 characters. Refer note 2267140 for more details.

Credit management

ECC’s FI-AR-CR is replaced by credit management of FSCM (Financial supply chain management) . FSCM-CR is
based on a distributed architecture which allows interfaces with external credit rating agencies. Traditional FI-AR-
CR credit control setting requires high degree of manual work. However, FSCM-CR has advanced features like

Credit rule engine for automatic risk scoring & credit limit calculations
Automatic update to master data on approval of credit limit etc.
Work flow for credit events etc

ATP

ECC provides the option of availability check at the individual or summarized requirements (aggregated at daily or
weekly level) , however S4H uses only individual requirements (with no VBBS table) and probably the rationale is
that S4H does not have any aggregate table with its simplified data model.

SAP also has plans to integrate APO’s GATP (Global ATP) functionality in S4 core. Not sure whether all
functionalities of GATP will be integrated in S4 core. Rule based ATP (For substitution of location (plant) or
material), Multi-level ATP check, advanced check for product allocation with ATP, advanced BOP (Back order
processing) etc are some of the unique features of GATP w.r.t ATP in ECC.

Location substitution allows to check the material availability at plant B (as set in master data or business rule) if the
material is not available at sales order plant A. If material is available in plant B, then a stock transfer order from
plant B to A is created automatically. This rule can be extended to a network of plants also.

SD pricing

There are some changes in data model in pricing and condition techniques like existing table KONV replaced by
new table PRCD_ELEMENTS with extended fields etc. Refer note 2267308 for more details.

MRP

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MRP in ECC is run through batch jobs and during off peak hours. However, there is no need of batch job in S4H and
MRP can now be run in real time with HANA.

MRP can be run on plant and MRP area level, but not on storage location level. In ECC , Storage location can either
be excluded from MRP or planned separately . SAP recommends to use MRP area with MRP type (ND in case of
exclusion or VB for re-order point planning) for those scenarios at storage location level. MRP with subcontracting
has also been simplified.

SAP has plans to integrate the functionality of APO’s PPDS in core of S4H in future releases and hence probably
aligning the APO features like BOM to be selected through production version for in-house , unified source of
supply (no source list , only info record ) for external procurements with S4H core.

Foreign trade

Foreign trade functionality has been replaced by GTS (Global trade services). Advanced features in GTS w.r.t
foreign trade are SPL (Sanctioned party list) screening, automated embargo check (Manual in ECC), automatic &
simplified license check (manual and complex in ECC) , Automatic import / export declaration etc.

Material ledger

Activation of material ledger (ML) is mandatory. ML valuates inventory in multiple currencies. Traditionally inventory
is mainly valuated with a single currency in SAP ERP. ML allows valuation in two additional currencies. Today’s
global organizations operating in different countries desire to valuate inventory in multiple currencies. Like for
example, a company in Norway dealing with oil needs to maintain their books in Norwegian currency (NOK), they
will also like to evaluate their inventory in USD as oil is traded in international market in USD. This functionality is
available in Release 1511 of S/4 HANA.

Refer the blog in URL http://scn.sap.com/community/s4hana/blog/2016/02/22/material-ledger-embedded-in-s4-

hana–benefits-and-challenges for more details on ML and its benefits & challenges.
Revenue recognition

ECC SD revenue recognition is being replaced by SAP Revenue Accounting and Reporting (RAR) due to new
accounting standard released jointly by the Financial Accounting Standards Board (FASB) and the International
Accounting Standards Board (IASB). New guide line is also in IFRS 15 issued in 2014.

Existing SD revenue recognition of ECC is based on Generally Accepted Accounting Principles (US-GAAP),
International Accounting Standards (IAS) / Financial Reporting Standards (FRS) and it provides the option of
recognizing the 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 standard way of realizing revenue on billing. New standard introduces the 5 step
model (Identify the contract, separate performance obligations, determine transaction price, allocate transaction
price and recognize revenue). SAP’s new Revenue Accounting and Reporting (RAR) solution is in S4H. for
fundamental changes with IFRS 15 and also to meet the requirement of parallel accounting and cost recognition .

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Rebate

Customer rebates through existing SD rebate processing has been replaced by settlement management through
Condition contracts. Some details on condition contracts are in URL Condition Contract – Compensation
Management – SAP Library

Output management

ECC message determination through table NAST is replaced by Business rule framework plus (BRF +) and target
architecture is based on Adobe document server and Adobe forms only. Refer OSS note 2228611 for more details.

Warehouse management

Existing WM module will be replaced by SAP’s new application for warehouse management EWM . There will be 2
options

Native integration i.e inbuilt in S4H

Side car approach for decentralized deployment

There are several advantages in EWM w.r.t WM like complex warehouse processing through Process oriented
storage control (POSC) , improved (easily customisable) RF functionality , Value added service like kitting ,
enhanced wave & replenishment processes, labour management etc.

Native integration of SCM applications

Other SCM applications like TM etc will be natively integrated with digital core of S4H. Refer URL
https://scn.sap.com/community/s4hana/blog/2015/11/19/sap-s-road-map-for-supply-chain-solution-with-s4-hana-
and-its-expected-benefits for more details.

User interface

Fiori is a new user interface . Refer URL https://experience.sap.com/files/SAP_Fiori_UX_Overview.pdf for more

details.

Activate implementation methodology

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There is no concept of Blueprinting in S4H implementation. S4H has introduced new ‘Activate’ methodology. SAP
offers pre-built demo system with SAP’s best practices for specific business processes. Business users can now test
in demo system whether it meets their business requirement or not . Fit-gap analysis can be done after initial trial
period . Refer URL http://www.akili.com/wp-content/uploads/2016/01/SAP-Activate_Customer_v03.pdf for more
details.

Note : All the above information are based on several sources like SAP Documents , Open SAP courses , SCN
blogs etc and hence subject to change. Also the features stated above are target functionalities i.e may not be
available in present edition of S4H (Like tables for material ledger have not yet been merged to ACDOCA in 1511).

Will appreciate if you can highlight other important/fundamental differences or if anything is misinterpreted.

Alert Moderator

Assigned tags

SAP S/4HANA |

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35 Comments

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Ganesh Sadula

May 16, 2016 at 10:34 am

Mrinal Kanti Roy

Thank you for sharing informative info about S/4 hana ..

with regards,

Ganesh

Like(0)

Former Member

May 17, 2016 at 1:15 pm

good one. How woudl MRP live MD01N solve the problem of capacity generation for planned orders? Would we
have to nd a way to run MDAC after MRP to create capacity ?

Like(0)

Mrinal Kanti Roy | Post author

May 17, 2016 at 4:23 pm

SAP has plans to integrate (natively) PPDS in S4H core . I think , as of now capacity requirement needs to be
regenerated through con guration in OPU3 / OPU5 and CM21 , CM31 .

Like(0)

Former Member

May 25, 2016 at 9:05 am

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Good post, Would be great to know if Condition Contracts integrate seamlessly with Simple Finance 1503.

Like(0)

Former Member

May 25, 2016 at 7:59 pm

Hi Roy,

Very useful information. please correct the typo error "Hpwever" in new GL area.

Like(0)

Mrinal Kanti Roy | Post author

May 26, 2016 at 6:51 am

Hi Vishnu,

Thanks ,, Corrected.

Like(0)

Former Member

May 26, 2016 at 10:56 am

Hello Mrinal,

Thanks for bringing S4H in a brief, very useful !!

Best Regards,

Jay

Like(0)

Sheetal Premnath

June 10, 2016 at 6:36 am

Very well documented and informative.

Thank you

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Like(0)

Prabhakar Vemuri

June 10, 2016 at 2:41 pm

Thanks for sharing this useful information.

Like(0)

Former Member

July 8, 2016 at 9:49 am

Good Post....

Like(0)

MD NAUSHAD ANSARI

July 21, 2016 at 3:27 pm

excellent explanation.

Like(0)

Praveen Kumar G

August 3, 2016 at 6:50 am

Nice documentation

Like(0)

Former Member

August 5, 2016 at 1:34 pm

hi

Please can you explain the major di erences in Authorization point of view.

Thanks
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Like(0)

Mrinal Kanti Roy | Post author

August 7, 2016 at 6:21 am

Hi Harsh,

There will be following impacts on authorisation

New transactions with HANA Optimisation

New objects like Business partner
Merger of objects like Secondary cost elements also now GL accounts.

With regards,

Mrinal

Like(0)

Former Member

August 9, 2016 at 2:14 pm

Hi Mrinal,

Thanks for the reply.

But i have a question, i referred one document and got some understanding on GL accounts:

Customer roles (menus and authorizations) need to be adjusted for this.

Other than GL accounts, what other areas where this authorization would get impact.

Thanks

Like(0)

Former Member

June 7, 2017 at 5:10 am

Hi Harsh,

As far as I have seen till S/4HANA 1610 , there is not much change in roles and relevant objects compared to
ECC excepting places like FS00 (where GL and cost elements have been merged) .

Fiori will be a big component for any S/4HANA implementation. Fiori apps are very much linked to the roles and
the corresponding roles need to be assigned to the respective user (who will be using those apps).

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With regards,

Mrinal

Like(0)

Former Member

August 25, 2016 at 5:24 am

Hi Mrinal,

Will there be separate Authorization Matrix to be maintained in GUI and at FIORI App level.

Regards,

James

Like(0)

Scott Raines

September 14, 2016 at 7:55 pm

Thanks for the consolidated information.

Like(0)

Former Member

September 15, 2016 at 8:03 am

Thank you for the not to long overview.

Like(0)

Former Member

September 30, 2016 at 9:18 am

What about transactions code as: MM01, ME21N? will it change also even material code size to be changed or
can we use MM01 and others with the new rules/changes?and with the new database?

Like(0)

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Former Member

October 5, 2016 at 6:47 am

hello Mrinal,

Can you explain some points with respect to Authorizations what changes when compared with ECC to S/4..?

Like(0)

Deepak Bhardwaj

March 20, 2017 at 12:01 pm

Hi Mrinal,

Thank you for this excellent article.

Can you share any changes related to PS module, its base tables remain same or have been replaced?

-Pradeep

Like(1)

Former Member

June 7, 2017 at 4:52 am

Hi Pradeep,

I have not seen much changes in PS till 1610 release. All basic PS tables PROJ, PRPS, AFKO AUFK etc still exists
in 1610 release. Suggest to check the simpli cation lists as in below URL
https://help.sap.com/doc/560c6fad1b03447583e7327f64f7d964/1610%20002/en-
US/SIMPL_OP1610_FPS02.pdf and note 2267188.

SAP has plans to de-normalize the table structure like ACDOCA / MATDOC and make obsolete many PS
transactions , SAP could not do it till 1610. However, you can see their plans in simpli cation list. We need to
wait and watch .

With regards,

Mrinal

Like(0)

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Former Member

May 2, 2017 at 12:26 pm

Hi Mrinal,

would like to Thanks you for the awesome e orts to share the wonderful post. Thanks so much Dear.

Regards,

Deepak

Like(0)

Former Member

July 11, 2017 at 2:14 pm

Hi,

Thank you for the above information. Could you please explain di erence/comparison between ECC IS AUTO
and S4 HANA IS AUTO module.

Like(0)

Daniel De Souza

August 21, 2017 at 11:12 am

HI, the website

https://experience.sap.com/ les/SAP_Fiori_UX_Overview.pdf

is not working currently. Is there an updated version for this?

Thanks

Like(0)

Former Member

November 24, 2017 at 10:36 am

Simple and Quite interesting. Thanks for the blog.

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Regards,

G.V.Shivakkumar

Like(1)

Racherla Vyomakesh Bharadwaj

December 24, 2017 at 3:15 am

Thank you it was informative

BR

Vyomakesh Racherla

Like(1)

Nilesh Panpaliya

February 28, 2018 at 6:07 am

Hi

There is no information about the new asset accounting functionality and its bene ts?

Regards

Venkat

Like(0)

Mrinal Kanti Roy | Post author

March 3, 2018 at 10:28 am

Hi,

New Asset accounting is also available in EHP 7 in ECC as described in note 1776828.

Regards,

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Mrinal

Like(0)

Former Member

April 11, 2018 at 4:58 pm

What about SD and speci cally Order Entry - tables VBAK, VBAP etc...?

Like(0)

Muhammad Ali Awan

August 31, 2018 at 6:02 pm

good knowledge base

regards,

Muhammad Ali Awan

Like(1)

Varin V

September 25, 2018 at 5:31 am

Mrinal Kanti Roy

Very Clear and Good Document , Thanks for Sharing knowledge

Like(1)

BALINA SRIKANTH

November 20, 2019 at 6:56 am

Hello Mrinal Roy. Thanks for the information provided. It is very useful. I would like to know that SAP GTS was a
seperate Box earlier. so Now in S/4 HANA is it within S/4 HANA or still is it separate Box?

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Like(0)

Dhanalakshmi M Kumar

January 21, 2020 at 3:31 pm

Very useful info

Like(1)

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