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S/4HANA and its differences with ECC

Mrinal_K_Roy
Active Contributor

‎05-16-2016 9:44 AM

 68 Kudos

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

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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).

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.

https://community.sap.com/t5/enterprise-resource-planning-blogs-by-members/s-4hana-and-its-differences-with-ecc/ba-p/13206708 2/30
3/5/24, 9:11 PM S/4HANA and its differences with ECC - SAP Community

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

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. Refer
note 2267140 for more details.

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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.

https://community.sap.com/t5/enterprise-resource-planning-blogs-by-members/s-4hana-and-its-differences-with-ecc/ba-p/13206708 4/30
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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

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

https://community.sap.com/t5/enterprise-resource-planning-blogs-by-members/s-4hana-and-its-differences-with-ecc/ba-p/13206708 5/30
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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-an... 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 .

https://community.sap.com/t5/enterprise-resource-planning-blogs-by-members/s-4hana-and-its-differences-with-ecc/ba-p/13206708 6/30
3/5/24, 9:11 PM S/4HANA and its differences with ECC - SAP Community

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.

https://community.sap.com/t5/enterprise-resource-planning-blogs-by-members/s-4hana-and-its-differences-with-ecc/ba-p/13206708 7/30
3/5/24, 9:11 PM S/4HANA and its differences with ECC - SAP Community

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-s... 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

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.

https://community.sap.com/t5/enterprise-resource-planning-blogs-by-members/s-4hana-and-its-differences-with-ecc/ba-p/13206708 8/30
3/5/24, 9:11 PM S/4HANA and its differences with ECC - SAP Community

SAP Managed Tags:

SAP S/4HANA

38 Comments

former_member183294
Active Participant

‎05-16-2016 11:34 AM

 0 Kudos

mrinalkanti.roy

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

with regards,

Ganesh

Former Member


‎05-17-2016 2:15 PM

 0 Kudos

https://community.sap.com/t5/enterprise-resource-planning-blogs-by-members/s-4hana-and-its-differences-with-ecc/ba-p/13206708 9/30
3/5/24, 9:11 PM S/4HANA and its differences with ECC - SAP Community

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

Mrinal_K_Roy
Active Contributor

‎05-17-2016 5:23 PM

 0 Kudos

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

Former Member


‎05-25-2016 10:05 AM

 0 Kudos

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

https://community.sap.com/t5/enterprise-resource-planning-blogs-by-members/s-4hana-and-its-differences-with-ecc/ba-p/13206708 10/30
3/5/24, 9:11 PM S/4HANA and its differences with ECC - SAP Community

Former Member


‎05-25-2016 8:59 PM

 0 Kudos

Hi Roy,

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

Mrinal_K_Roy
Active Contributor

‎05-26-2016 7:51 AM

 0 Kudos

Hi Vishnu,

Thanks ,, Corrected.

Former Member


‎05-26-2016 11:56 AM

https://community.sap.com/t5/enterprise-resource-planning-blogs-by-members/s-4hana-and-its-differences-with-ecc/ba-p/13206708 11/30
3/5/24, 9:11 PM S/4HANA and its differences with ECC - SAP Community

 0 Kudos

Hello Mrinal,

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

Best Regards,

Jay

former_member198470
Explorer

‎06-10-2016 7:36 AM

 0 Kudos

Very well documented and informative.

Thank you

prabhakar_vemuri
Explorer

‎06-10-2016 3:41 PM

 0 Kudos

https://community.sap.com/t5/enterprise-resource-planning-blogs-by-members/s-4hana-and-its-differences-with-ecc/ba-p/13206708 12/30
3/5/24, 9:11 PM S/4HANA and its differences with ECC - SAP Community

Thanks for sharing this useful information.

Sasi2005
Contributor

‎07-08-2016 10:49 AM

 0 Kudos

Good Post....

former_member198758
Explorer

‎07-21-2016 4:27 PM

 0 Kudos

excellent explanation. :smile:

former_member198457
Explorer

‎08-03-2016 7:50 AM

https://community.sap.com/t5/enterprise-resource-planning-blogs-by-members/s-4hana-and-its-differences-with-ecc/ba-p/13206708 13/30
3/5/24, 9:11 PM S/4HANA and its differences with ECC - SAP Community

 0 Kudos

Nice documentation :smile:

Former Member


‎08-05-2016 2:34 PM

 0 Kudos

hi

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

Thanks

Mrinal_K_Roy
Active Contributor

‎08-07-2016 7:21 AM

 0 Kudos

Hi Harsh,

https://community.sap.com/t5/enterprise-resource-planning-blogs-by-members/s-4hana-and-its-differences-with-ecc/ba-p/13206708 14/30
3/5/24, 9:11 PM S/4HANA and its differences with ECC - SAP Community

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

Former Member


‎08-09-2016 3:14 PM

 0 Kudos

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

https://community.sap.com/t5/enterprise-resource-planning-blogs-by-members/s-4hana-and-its-differences-with-ecc/ba-p/13206708 15/30
3/5/24, 9:11 PM S/4HANA and its differences with ECC - SAP Community

Former Member


‎08-25-2016 6:24 AM

 0 Kudos

Hi Mrinal,

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

Regards,

James

S0016143308
Participant

‎09-14-2016 8:55 PM

 0 Kudos

Thanks for the consolidated information.

Former Member

https://community.sap.com/t5/enterprise-resource-planning-blogs-by-members/s-4hana-and-its-differences-with-ecc/ba-p/13206708 16/30
3/5/24, 9:11 PM S/4HANA and its differences with ECC - SAP Community


‎09-15-2016 9:03 AM

 0 Kudos

Thank you for the not to long overview.

Former Member


‎09-30-2016 10:18 AM

 0 Kudos

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?

Former Member


‎10-05-2016 7:47 AM

 0 Kudos

hello Mrinal,

https://community.sap.com/t5/enterprise-resource-planning-blogs-by-members/s-4hana-and-its-differences-with-ecc/ba-p/13206708 17/30
3/5/24, 9:11 PM S/4HANA and its differences with ECC - SAP Community

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

Deipac
Explorer

‎03-20-2017 12:01 PM

 1 Kudo

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

Former Member


‎05-02-2017 1:26 PM

 0 Kudos

Hi Mrinal,

would like to Thanks you for the awesome efforts to share the wonderful post. Thanks so

https://community.sap.com/t5/enterprise-resource-planning-blogs-by-members/s-4hana-and-its-differences-with-ecc/ba-p/13206708 18/30
3/5/24, 9:11 PM S/4HANA and its differences with ECC - SAP Community

much Dear.

Regards,

Deepak

Former Member


‎06-07-2017 5:52 AM

 0 Kudos

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 simplification 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 simplification list. We need to wait and watch .

With regards,

Mrinal

Former Member


‎06-07-2017 6:10 AM
https://community.sap.com/t5/enterprise-resource-planning-blogs-by-members/s-4hana-and-its-differences-with-ecc/ba-p/13206708 19/30
3/5/24, 9:11 PM S/4HANA and its differences with ECC - SAP Community

 0 Kudos

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).

With regards,

Mrinal

Former Member


‎07-11-2017 3:14 PM

 0 Kudos

Hi,

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

DanielSouza
Advisor

‎08-21-2017 12:12 PM
https://community.sap.com/t5/enterprise-resource-planning-blogs-by-members/s-4hana-and-its-differences-with-ecc/ba-p/13206708 20/30
3/5/24, 9:11 PM S/4HANA and its differences with ECC - SAP Community

 0 Kudos

HI, the website

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

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

Thanks

Former Member


‎11-24-2017 10:36 AM

 1 Kudo

Simple and Quite interesting. Thanks for the blog.

Regards,

G.V.Shivakkumar

former_member191777
Explorer

‎12-24-2017 3:15 AM

https://community.sap.com/t5/enterprise-resource-planning-blogs-by-members/s-4hana-and-its-differences-with-ecc/ba-p/13206708 21/30
3/5/24, 9:11 PM S/4HANA and its differences with ECC - SAP Community

 1 Kudo

Thank you it was informative

BR

Vyomakesh Racherla

former_member371682
Explorer

‎02-28-2018 6:07 AM

 0 Kudos

Hi

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

Regards

Venkat

Mrinal_K_Roy
Active Contributor

https://community.sap.com/t5/enterprise-resource-planning-blogs-by-members/s-4hana-and-its-differences-with-ecc/ba-p/13206708 22/30
3/5/24, 9:11 PM S/4HANA and its differences with ECC - SAP Community


‎03-03-2018 10:28 AM

 0 Kudos

Hi,

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

Regards,

Mrinal

Former Member


‎04-11-2018 5:58 PM

 0 Kudos

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

Former Member


‎08-31-2018 7:02 PM

 1 Kudo

https://community.sap.com/t5/enterprise-resource-planning-blogs-by-members/s-4hana-and-its-differences-with-ecc/ba-p/13206708 23/30
3/5/24, 9:11 PM S/4HANA and its differences with ECC - SAP Community

good knowledge base

regards,

Muhammad Ali Awan

former_member302859
Active Participant

‎09-25-2018 6:31 AM

 1 Kudo

mrinalkanti.roy

Very Clear and Good Document , Thanks for Sharing knowledge

former_member643661
Discoverer

‎11-20-2019 6:56 AM

 0 Kudos

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?

https://community.sap.com/t5/enterprise-resource-planning-blogs-by-members/s-4hana-and-its-differences-with-ecc/ba-p/13206708 24/30
3/5/24, 9:11 PM S/4HANA and its differences with ECC - SAP Community

former_member655372
Discoverer

‎01-21-2020 3:31 PM

 1 Kudo

Very useful info

S0020217959
Newcomer

‎04-12-2022 7:14 AM

 0 Kudos

Very helpful document, Is there further update due to latest releases ?

davidhyokikim
Discoverer

‎04-15-2022 9:04 AM

 1 Kudo

Many thanks for sharing on ECC S4HANA comparison. It's hard to find any good
documentations with updated version. It would be very helpful if there is updated
presentation for customer using ECC6.0

https://community.sap.com/t5/enterprise-resource-planning-blogs-by-members/s-4hana-and-its-differences-with-ecc/ba-p/13206708 25/30
3/5/24, 9:11 PM S/4HANA and its differences with ECC - SAP Community

former_member807106
Discoverer

‎06-03-2022 10:05 AM

 0 Kudos

i am going to planning for SAP FICO certification so my question is right now which one is
best ECC or S/4 HANA?

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