Major differences between SAP ECC and SAP S4HANA Finance

Following are the major differences mentioned below

1-Indexes tables and total tables are Converted to CDS views

What are the indexes tables

The tables which are used to record the primary values in

➢ BSIK BSAK (Vendors),

➢ BSID BSAD (Customers) and
➢ BSIS BSAS (G/Ledgers)

What are the total tables

➢ FAGLFLEXA
➢ FAGLFLEXT

Now all these functionalities are part of ACDOCA Table

2-Foreign Currency revaluation

Old t-code as FAGL_FC_VAL Has been obsoleted and new T-code FAGL_FCV has been added for the
above-mentioned functionality apart from new T-code new screen with Extension ledger and Simulation
Accounting functionality have also been added

3-Currency Settings
In SAP ECC there are just 3 Currencies can be customized/Configured
Old T-Code: OB22
➢ Company Code Currency/Local Currency
➢ Global /Group currency
➢ Hard /Index currency

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But now in SAP S4Hana, there are total 10 Currencies can be maintained/Configured
➢ Company Code Currency/Local Currency
➢ Global /Group currency
➢ Freely defined Currency 1 to Free defined Currency 8
New T-Code: FINSC_LEDGER

4-Changes in Master Data

➢ G/L Accounts

There are number of pre-defined G/L Account Types from there you select its type
No need to separately make Cost elements via KA01 and KA06 just need to execute FS00 for
both requirements.

➢ Customer and Vendor Master data

In SAP S4HANA ,you don’t need to run after separates t-codes for Customer and Vendors
Masters instead a single Function can be used called as BP (business Partner) function can be
used.
Apart from these new t-code, A very demanding Business Process Customer is a vendor and
vendor is a customer can be achieved with a single code for both of the customer and vendor.

5-Credit management

In SAP S4HANA credit management is mandatory and comes under the domain of FSCM instead
of SAP SD domain

6-Material Ledger
In SAP S4HANA material ledger has been made mandatory for every enterprise but Actual
costing is still under the optional umbrella for the business needs.

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7-Universal Journal.
A new table called as universal journal has been added in S4HANA system What the ate
characteristics.
➢ ACDOCA has fields from CO, CO-PA, ML, AA that are not in BSEG. BSEG has dedicated
fields for open item management / payment that are not in ACDOCA. Due to 999 line
items limitation, BSEG is usually aggregated. This limitation is not applicable for
ACDOCA(DOCLN field length is 6)
➢ Apparently BSEG is used for the “entry view” of documents, as well as open item
management. The Note points out that some postings do not require the “entry view”
so they are only contained in ACDOCA (which is the “G/L view”). So ACDOCA has all
documents, but not so BSEG.

8-Real time Integration between SAP FI and SAP CO

In SAP S4HANA system, There is real time integration Between FI and CO as you will see there is
no separate document for Co domain but with a encrypted type way a one document is posted
for CO domain. This is possible because of Universal Journal added in the S4HANA system.

9-Technical clearing Accounts/asset Accounting

New Functionality named as technical clearing Account has been added in S4HANA

➢ The Technical clearing account is a reconciliation account

It works in the same way for both account and ledger approaches. Furthermore, you can
also have more than one technical clearing account. You define it in the configuration by
the chart of accounts and account determination.
➢ The Technical Clearing Account is a new account that you introduce for accounts and
cannot post to a single ledger only.

➢ If you are using Accounts Payable, you can take advantage of the following benefits of
integration: For an asset acquisition (without reference to a purchase order), you can
post the asset acquisition and the corresponding payable due from a vendor in the same
transaction. This reduces data entry.

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Major Differences found in Material
Management Module (MM ECC Vs MM S4)

1. Material number Length.

In S4Hana material number Length has been increased to 40 digits

2. Multiple units of Measure.

In SAP S/4 HANA, such as the ability to manage multiple units of measure for a single material
has been made possible.

3. New Screen/Advance Planning view in material Master.

Advanced planning view. This is for Production Planning and Detailed Scheduling
(PP-DS). PP-DS is the production planning part of SAP APO, which is integrated into
S/4HANA. SAP APO is an additional module from SAP.

4. New warehouse management related views

These are due to the integration of the basic version of Extended Warehouse
Management (EWM) into S/4HANA. The basic version is capable of managing an
average warehouse. The latest version of S/4HANA even has a full Fiori dashboard
that makes it easy to manage your warehouse. It’s a good idea to start thinking
about this, because SAP WM will stop in 2027.

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 5. Changes to the Import and Export view

The name of the view has changed, and the commodity code field is no longer
visible. You must now assign the commodity code to a material with a start and end
date. In addition, these data are no longer stored in MARC, which means that the
data are no longer site dependent.

6. MRP areas are more important.

This has to do with MRP subcontracting. In S/4HANA you must use an MRP area for
subcontracting. Also, the MRP area is now an active part of SAP: you cannot
deactivate it.

7. Change in MRP planning.

In S/4HANA the MRP planning can only be done on plant level and on MRP area
level. So, it can no longer be done on the basis of storage locations.

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

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through production version for in-house, unified source of supply (no source list , only
info record ) for external procurements with S4H core.

8. New Material type SERV introduced.

In addition to the above changes, SAP introduces a new material type, SERV. This is
an alternative to – or actually the improved version of – the DIEN material type. You
can use both material types for the same purpose. The main difference is that you
can only use SERV based on Fiori.

Some of Technical Changes in S4 MM

9. Restructuring of back-end tables and transactions

Few transactions are made obsolete such as MB01, MB02...MB05, MB0A, MB11,
1A....MBSU.

They have been replaced by Fiori apps for the better user experience and improved
performance and less load on data bases.

10. Technical tables Replacements.

Inventory Management is reduced is reduced from 26 tables to a single table

MTDOC

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Major tables including MKPF, MSEG, MARD, MARC, MBEW have been made obsolete
and stored in the table MATDOC (Simple table). Here are few transactions which are
replaced with the Fiori apps

11. Post Goods Receipt against the Inbound Delivery

An additional feature of the SAP Fiori app is the ability to search by Inbound
Delivery and other attributes. Serial numbers and batch managed material
cannot be used to do goods receipt in Fiori at the moment. A bespoke
development would be needed to support the batch management
functionality.

12. Stock Transfer between Storage Locations (One step transfer)

In ECC while doing the one step transfer the transaction code used is MIGO
with movement type 311. In Fiori it is the "Transfer Stock- In Plant". This app
will pull in information such as material details and shows the material stock
overview.

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Major Differences found in Sales &
Distribution Module (ECC S&D Vs S4 S&D)
Functional changes occurred in S4hana.

1. Credit management with FSCM

SAP had two system solutions for credit management – one is credit management
(FI-AR-CR) with Sales & Distribution and another with financial supply chain
management (FIN-FSCM-CR) which has more advanced functionalities. In S/4HANA,
FIN-FSCM-CR is mandatory to be used for credit management as stated in note
2270544.

Sales order blocked for credit cannot be approved with ECC transaction code like
VKM3. A case with ‘Documented credit decision’ DCD is created in S/4HANA which
needs to be reviewed and approved by a Credit analyst. Refer my below blog for
more details on DCD in S/4HANA 1909 release.

URL Reference
https://blogs.sap.com/2020/05/23/new-documented-credit-decision-dcd-solution-with-workflow-for-
financial-supply-credit-management-fscm-in-s-4hana-1909-release/

2. S&D Rebates.

Customer rebates through existing SD rebate processing in ECC have been replaced
by settlement management-rebate condition contract through condition contracts
in S/4HANA

URL Reference
https://blogs.sap.com/2020/05/16/simplifications-in-rebate-processing-with-condition-contract-in-s-
4hana/

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 3. Revenue recognition is being replaced by SAP Revenue Accounting and Reporting
(RAR)

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 guideline 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.

Some of Technical Changes in S4HANA

4. Elimination of Index tables

• Document index tables VAKPA, VAPMA, VLKPA, VLPMA, VRKPA,

VRPMA
• Rebate index table VBOX
• LIS tables S066, S067

5. Elimination of status tables (VBUK, VBUP)

• Status information moved from VBUK to VBAK , VBUP to VBAP for

Sales order, to LIKP & LIPS for delivery, to VBRK for billing documents
• Selection of document header data and document header status
requires one SELECT statement (VBAK) instead of two SELECT
statements (VBAK and VBUK). Similarly for the item tables.

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 6. Simplified document flow
• Extension of Sales document category (Data element VBTYP) from Char1 to
Char4
• Only direct relationships are stored, not indirect relationship (STUFE) in initial
release of S/4HANA
• Indirect relationship with STUFE (Level of the document flow record)
restored for the purpose of Archiving in later release of /4HANA

7. Extension of data elements and fields allow.

• More flexible pricing procedure determination
• possible number of customer condition table has been roughly doubled
• Possible accesses in access sequence table has been enhanced from 99 to
999
• The key of condition table (A Tables) can now be 255 characters long
(previously 100)
There is a new database table PRCD_ELEMENTS for pricing conditions to
replace earlier cluster table KONV of SAP ECC. New table is a transparent
table, hence can be accessed directly and has several extensions in its data
elements and fields as shown in below image (copied from SAP note
2220005).

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 8. Business partner

Business partner (BP) is the single point of entry for creation, change and display of
customer (as well as vendor) in S/4HANA. BP is a strategic object model in S/4HANA
as shown in below image. Conversion of customer (and vendor) to BP is mandatory
for conversion from ECC to S/4HANA. Refer SAP note 2265093 for more details on
BP, its benefits and the recommended approach for conversion through Customer
vendor integration (CVI).

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Below image shows the data model for BP in S/4HANA. When a BP is created for a
customer (or vendor) for General data, Sales organization and company code in
S/4HANA , then those data also get stored in those old tables like KNA1 , KNVV and
KNB1 respectively along with BP tables like BUT000 etc.

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Major Differences found in 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.

Major Differences found in Warehouse

Management System
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 customizable) RF functionality , Value
added service like kitting , enhanced wave & replenishment processes, labor management etc.

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