• Sealinfotech
• April 06, 2022

Financing and Accounting

In SAP S/4HANA, there are a few sub-topics like Simple Finance, Simple Logistics, and IBP. The SAP S/4HANA application is novel in many ways. There has been great work done in this especially redesign of the process flows, with inputs from clients and partners, that resulted in the improvisation in procurement, inventory management, material valuation, capacity planning, OM, etc. Also, the creation of the journal and central finance has increased in a big way approach that increased the flexibility of SAP S/4HANA Finance. This can deliver even more value to organizations than just accelerating the financial closing process. We will introduce the sub-topics below. Know more about Sap Consulting Services SAP S/4HANA Finance SAP S/4HANA Finance is also named as sFin, is the financial and accounting component of the SAP S/4HANA Business Suite. SAP introduced this component keeping because of future integration with the SAP Analytics Cloud. For simple understanding, we will call this component as sFin or Simple Finance. sFin or Simple Finance application is an ERP of SAP that runs on S/4HANA’s in-memory platform. It allows users to run real-time reports on operational and financial data. In this application, the data is stored and processed in memory which makes you easily analyze them quickly with lesser constraints. It allows you to run balance sheets, P & L statements, cash flows, and analysis reports using real-time data. You no need to wait for the end of the day or month or quarter and you can access your data with ease at any time for planning purposes. Know more about SAP Support Services In this Financial ERP application, the financial and operational data are extracted from a single centralized location. This allows the decision-makers easy to analyze the problems from an enterprise perspective rather than a department perspective. This ERP can be hosted in the cloud or on-premise but SAP emphasizes being S/4HANA Cloud. The SAP has removed all the index and aggregate tables as part of simplification between ECC and S/4HANA with an in-memory database. This made to combine the FICO data from the distributed ERP with SAP or a third-party database. With S/4HANA, the result is a single LIVE data source with an excellent degree of granularity. SAP S/4HANA Finance Architecture SAP Simple Finance or sFin employs a single repository, Universal Journal to register the journal entries across multiple ERP applications. This eliminates the redundancies and gives us clean data for management accounting, asset accounting, and materials ledgers. Here, once the data is stored once, there is no need to reconcile. All the transactions and data are available for immediate decision-making within your organization and generate reports instantly. SAP Simple Finance – Key Functionalities Financial Accounting (FI) – This package includes all that anyone would expect in the finance tool of ERP like General Ledger, Accounts Receivable and Payable, Bank Management, Travel Management, Asset Management, and consolidation tools. You can also utilize a special purpose ledger for non-standard data, parallel accounting, etc. It receives the data but cannot send it to other SAP applications. There is a difference primarily between Simple Finance and conventional finance apps are the capability to instantly access and analyze the data. Real-time KPIs get refreshed instantly and automatically. Management Accounting (CO) – This package consists of modules like cost element accounting, profit center, internal orders, product cost, etc. sFin supports both profitability analysis and profit analysis. The SAP S/4HANA account-based approach uses the Universal Journal to calculate the real-time cost of goods sold, which gives us to study P/L as per various contribution margins. Cash Management – This package is completely integrated and gives the user to execute bank management processes without switching between their modules. It has a single point of entry to access the settings of bank management and provides user privileges. Manager approvals are required to change any master settings. Everyday cash transactions are automated and simplified. You can complete details of all kinds of payments done in AR and AP. You can get to see the complete picture of the organization’s bank statement and can initiate bank transfers from the reporting interface. Liquidity Planning – This package is a cash management solution. We can pull information from internal sales and POs to see the potential deficits and surpluses. SAP is extensively working to transform S/4HANA Finance into an intelligent ERP tool that can use machine learning (ML) and apply predictive BI Analytics from the Internet of Things (IoT). Conclusion SEAL Infotech being an SAP Certified Gold Partner offers customized SAP S/4HANA services and support to organizations. If you want to actively engage and implement SAP products in your organization, call us immediately at the below contacts. Get more information about SEAL Infotech’s SAP S/4HANA Services either by calling us at +971-4-3670377 or by mail to info@sealinfotech.ae.