HANA database
S/4HANA can only be run on HANA, database unlike ECC which can be run on Oracle, IBM DB2, SQL Server.
- Backbone 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 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 column 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 parallel)
Analytics in picture
- There will be no aggregate (total), index and history tables in S/4HANA. Aggregates are created dynamically based on line item table instantly.
- 2. OLTP and OLAP capability in same system with real time reporting and predictive analysis.
SAP Components in S/4HANA
- S/4HANA including 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.
- In ECC, FI GL accounts are mapped to CO primary cost elements. In S/4HANA, 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. Reconciliation (as in case of CO to FI) is not needed now. Period end closing also will be faster.
- S/4HANA 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 prerequisite for new Asset Accounting.
- 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 S/4HANA in future releases.
- 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 as below:
- 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 and extension of Material number field : 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.
- 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.