Main differences between ECC and S / 4 Hana (Finance)

1. Database Factor of SAP S/4HANA and SAP ECC

SAP S/4HANA can run only on the HANA database. This is completely different from SAP ECC.

SAP ECC can run on Oracle, IBM DB2 etc.

The HANA in-memory database reads data faster than traditional databases

Better compression (because only distinct values are compared to rows), parallel processing

(different columns can be easily processed parallel). Real time reporting and predictive analysis.

2. Single Source of Truth and SAP S/4HANA Universal Journal

SAP S/4HANA combines data structures of different components such as FI, AA, CO, CO-PA and ML into a single line
item table.

This table is ACDOCA, also known as the Universal Journal. The presence of the universal journal eliminates several
aggregate and index tables. Now, data insertions occur into a single table instead of several tables. Hence reducing
the data foot print by a huge margin.

In addition, the MATDOC, the new line item for inventory management, eliminates 26+ tables.

Material documents are stored in MATDOC but not in MKPF or MSEG tables.

3. New Functional Capabilities

New functional capabilities are available to work with SAP S4H and the HANA in-memory computing.

A few examples are Central Finance, SAP Cash Management, and SAP BPC Optimized for SAP S/4HANA.

4. Addition of standalone solutions to SAP S/4HANA Core

Some standalone SAP Solutions are now available as a part of the SAP S/4HANA core.

Two common examples are SAP Transportation Management and SAP Extended Warehouse management.

5. Unison of CO and FI

In SAP ECC, we could observe FI GL accounts mapped to CO primary cost elements.

However, in SAP S/4HANA, the universal journal uses only one field to store both GL accounts and cost elements.

Cost elements (both primary and secondary) are now GL accounts. Hence, a relevant cost element category is used
when they are created and maintained (in FS00). Reconciliation (as in case of CO to FI) is not needed now.

Therefore, period end closings will be faster.

6. Introduction of a New GL in SAP S 4HANA

SAP S/4HANA is technically similar to the new GL of SAP ECC. This is beacuase of it’s data structure.

Customers using the classic GL need not use the document split or the parallel ledger. However, the new GL’s
functionality

(Parallel ledger) is a prerequisite for new Asset accounting.

7. Account based CO-PA vs Costing based CO-PA

Account based CO-PA is now the default option. The costing based CO-PA is now available as an option.

However, both options can also be run simultaneously. Please use http://scn.sap.com/docs/DOC-65828 for more
details.

8. Custom reports work without any disruptions.

9. Business Partners and Material Number Extensions

In SAP S/4HANA, Customer and vendor master data need to be integrated/migrated as Business Partner.

Customer-vendor integration (CVI) is a mandatory step to run business with SAP S/4HANA.

10. New Credit Management System

There is a new credit management system in SAP S/4HANA by the name of FSCM-CR. It is the credit management of
Financial supply chain management. It replaces SAP ECC’s FI-AR-CR. FSCM-CR is built on a distributed architecture.
This allows interfaces with external credit rating agencies. Traditional SAP ECC’s FI-AR-CR credit control setting
requires high degree of manual work.

In addition, FSCM-CR has valuable advanced features like Automatic risk scoring & credit limit calculations with a
credit rule engine Automatic update to master data based on the approval of credit limit Work flow for credit events

11. Material Ledger Mandate

In SAP S/4HANA, activation of the material ledger (ML) is mandatory.

12. User interface (FIORI)

A key difference between S4H and ECC is that SAP Fiori is the new user interface in S4H to offer a rich and intuitive
user experience.

13. Bank accounts must be maintained in NWBC or FIORI APPs, not anymore in FI12.