Revealing the Differences Between SAP ECC and SAP ERP S/4 HANA !

SAP, a German multinational corporation, has been developing enterprise software since 1972. It helps customers and businesses manage their business operations. It is well-known for its Enterprise Resource Planning software, which has been trusted worldwide. SAP has made several SAP ERP software available over the years. These include R/1, R/2 and R/3. SAP ECC ERP is currently the most popular SAP ERP software.

This is changing. SAP has made it clear that SAP S/4HANA is its primary ERP offering. Additionally, SAP ECC will cease to be maintained by 2027. As a result, the SAP ecosystem is asking many questions. Do you know what SAP ECC is?  If you don’t know, then no need to worry. In this blog, you will understand what SAP ECC is and the difference between SAP ECC and SAP S4 HANA.

What does SAP ECC stand for?

SAP ECC is a critical technology in all industries, including business. SAP ECC was first introduced in the 1970s as a financial program. It was initially called RF. SAP ECC stands for SAP ERP, the first suite for business applications. The software suite has grown to include RM/1 over the years. Within a few years, the suite was renamed R/1.

R/2 was first introduced in 1979. It combined several enterprise functions. For example, it covered logistics, supply chain management, human resources, manufacturing, and accounting. In 1992, the next version R/3 was released. This was the first client/server technology not to require mainframes. As a result,R/3 could support a wide range of databases and computer systems. In 2004, the latest version of this software suite was released. SAP ECC stands today for SAP ERP Central Component. Organizations can use the new package interchangeably with ECC.

Now, let’s learn the difference between SAP ECC and SAP S4 HANA.

Difference between SAP ECC and S/4HANA

It might not seem very clear if you’re not a tech person. There are many contradictory answers on the internet. SAP ECC, the ERP Central component of SAP Business Suite, is the ERP Central component. This core component integrates business operations functions.

SAP ECC system is the most critical system element in the Business Suite. ERP is the central SAP business suit application. This software is specialized in resource planning. It has many modules that allow organizations to control critical business processes.

Modules can be customized to meet the needs of customers and industries.

ERP stands for Enterprise Resource Planning. ERP software can include any software that manages the organization’s planning of resources. ERP ECC refers to an ERP Solution offered by SAP. ECC stands for ERP Central Component, and ECC is only available for SAP customers. ECC is an element of SAP’s ERP software.

ERP Suite provides overall management and control over the functions

ECC refers to the set of functions that businesses can perform. One function supports another. A business suit makes it easier to manage finances, human resources, sales, marketing, and logistics.

What software products can benefit businesses?

Businesses use ECC to access a powerful software suite that will help them improve their ability to complete tasks such as

• tracking financial performance
• tracking sales volumes
• Supervise the distribution of products.

What is sap HANA?

HANA is the database for SAP’s business software suite. HANA is a database that collects data, performs analytics, and monitors transactional information. HANA started as a tool to manage warehousing data. However, HANA has evolved into an all-in-one data management and analytics platform.

HANA is similar to ERP. HANA can be used in a variety of modules:

• Supply chain management
• material-management
• Application of human capital.

HANA assists businesses in efficient management across all operations systems.

2017 saw the release of the S/4 HANA cloud by SAP. This software is ideal for more than 1.500 employees. Mobile app development company often use a two-tiered approach. Corporations can now manage a complete business suite with the cloud-based HANA version. It includes SAP ERP Central Component and S/4 HANA.

S/4 HANA has many trending tech functions. For example,  CoPilot is a digital assistant that you can use. SAP continuously updates and improves software. SAP HANA is an integral part of SAP. It helps to align business data and artificial intelligence.

SAP S/4HANA offers a variety of new features that will help you manage your data better. These are the key features.

ACDOCA: The Universal Journal

SAP S/4HANA, as mentioned above, combines multiple data modules into one table called ACDOCA (the Universal Journal). This includes asset accounting, GL, MS, ML, CO-PA, and management accounting (MA). It is also more efficient.

MATDOC Inventory Management

SAP S/4HANA introduces MATDOC. This new inventory management system eliminates 26 tables from SAP ECC. In addition, material documents now reside in MATDOC instead of MKPF and MSEG tables. This eliminates redundancy and increases stock reporting efficiency.

SAP HANA Database

As we have already discussed, SAP S/4HANA is only compatible with the SAP HANA database. SAP S/4HANA runs faster than SAP ECC, thanks to the SAP HANA Cloud database. Why? There are many reasons. SAP S/4HANA first reads data from the primary storage instead of the hard drive, meaning fewer data moves. The tables in SAP S/4HANA have a column-based rather than a row-based structure. This means that it only reads the query’s relevant column. It can process multiple columns simultaneously. Because applications have access to the original data, there are no history, index, or aggregate tables. SAP S/4HANA combines online transactional processing and online analytical processing tables. They can be reconciled automatically.

Advanced ATP

SAP ECC allows you to check product availability, allocation, and backorders using available-to-promise. SAP S/4HANA enables you to do all this and more using advanced ATP (ATP). ATP uses automation for functions like:

• Delivery of items that are being leased

• Verify stock availability in other plants

• Mass availability checks

Global Trade Services

SAP S/4HANA offers global trade services (GTS), which replace the foreign trade functions of SAP ECC. SAP GTS automates manual processes in SAP ECC. This includes license checks, embargo checking, and import and export declarations.

FSCM Credit Management

SAP ECC’s credit management system was FI-ARCR.  Automated workflows in FSCM CR-CR eliminate manual processes such as credit limit approval or risk scoring. In addition, its distributed architecture allows it to interface directly with external credit agencies.

Extended Warehouse Management

Warehouse management is done in SAP ECC’s Warehouse Management (WM).  SAP EWM allows you to easily manage complex warehouse processes like labor management and goods distribution.

Revenue Accounting and Reporting (RAR)

RAR is an add-on that uses the five-step revenue recognition model in International Financial Reporting Standard 15(IFRS 15).  It simplifies revenue recognition.

SAP Fiori User Interface

SAP Fiori provides users with an integrated, consistent, and intuitive experience. SAP Fiori makes it easier to get work done quicker and more accurately. This improves onboarding and training and gives users a better experience. In addition, it is possible to create enterprise apps consistent across all devices.

What are the main business benefits of SAP S/4HANA migration?

SAP S/4HANA, a revolutionary new ERP, is powered by the SAP HANA database’s in-memory computing power and simplified data models and offers a unique user experience. The key business benefits include:

1. The simplicity of business processes to drive them in real-time by eliminating background jobs, aggregate tables, and other job responsibilities

2. Performance planning, execution, reporting generation, and analytics are improved based on real-time business data.

3. Improved business predictions and closing of a trigger period

4. Simplifying the IT landscape

5. The lower total cost of ownership

6. Data footprint reduced

7. Large data sets can be handled in one system, thereby reducing hardware and operational costs as well as time.

8. Innovative innovation with an open platform that allows you to develop advanced applications that can predict, simulate and recommend business operations while protecting existing investments

9. Rethinking, redesigning, and reinventing business processes

10. With real-time insight into business data, faster decision making

11. Customers can be reached via any channel to deliver value.

12. Profitable and faster business operations that are more efficient and profitable, with better context and data accessibility.

Why do SAP ECC users need to migrate to SAP S/4HANA? Let’s now see the first steps to moving from SAP ECC into SAP S/4HANA.

The next-generation SAP ERP

There are deltas and vertices to the Venn diagram for S/4HANA/ECC. To ensure their success, successful leaders must look ahead like great chess players.

SAP S/4HANA gives you access to the SAP intelligent enterprise infrastructure. The ERP differences are not the real power of S/4HANA; it is tomorrow’s business differences.

Wrapping Up!

There are many differences between SAP ECC and SAP S/4HANA. Migrating from one can be difficult because of these differences. Nevertheless, there is a compelling business case for moving to SAP S/4HANA, not to mention the SAP ECC 2027 maintenance deadline.

SAP S/4HANA automates many business processes thanks to AI and automation. This increases efficiency, reduces redundancy, and improves customer experience. This can reduce business costs and increase revenue. Connect with Techugo, a leading FinTech app development company for more insights.