7rsro1g SAP e-book Unt: Overview of SAP S/AHANA Canta Finance ‘SAP S/4HANA Central Finance Fragmented customer system landscape 1 single system landscape Figure 3 How to Getto SAPSVANANA athe Future Landeeape ‘The benefits of SAP S/4HANA are clear, but customers face an adoption dlemma, Many companies have a legacy of both SAP, and non-SAP, ERP systems. These systems have different release levels, different custornizing specications, and some even have different charts of accounts, For such companies it would seem like an enormous level of effort to adopt SAP's latest Innovations. The idea may seem too big and expensive to even get through their budget committees The following paragraph displays options avallable to customers: Seat Ar + BOY 497rsro1g SAP e-book Lesson Understanding SAP S/AHANA Cetra France Option Option 2 Upgrade and Migrate Upgrade, Migrate and Consolidate ‘(hoop mltvinstance architecture) (teduce numberof instances) =-5 =- Option 3: Replicate to Central Finance (and optional reduce number of instances overtime) SAP ERP —_ ‘or Replicate > SAP RIS — Source system(s): Reabtime ental Finance ‘SAP(anyrelease) Reconciled instance: non-SAP systoms Figure SAP S/@HANA novatons: Three Opions ‘SAP S/4HANA Central Finance isa replication-based path (also named "side-car" approach). It carves out specific capabilities, together with thelr posting and master data, from the ‘existing ERP landscape, while keeping the rest running unchanged for the time being. This allows for a more gradual move. Itis important to remember that the term ‘central finance” comes in two contexts: + Inthe context of deployment options: Central finance is @ deployment approach that enables the replication of posting data. As a result it shortens the path to innovations provided by S/4HANA and S/4HANA Finance, + Inthe context of SAP instances in @ system landscape diagram: ‘The central finance system s the target instance, running S/4HANA or S/4HANA Finance, lon which selected finance, accounting, and business planning scenarios are operated. ‘The crucial factor for selecting a central finance approach, over other deployment options. is highlighted in the previous graph. While essential restrictions exist in CFO functions, that strongly cal for centralizing and harmonizing a specific scope of capabilities on an S/4HANA Finance instance. the client has reasons to keep the existing ERP landscape running for the remaining scope. Customers with a distributed system landscape, who want to adopt S/4HANA innovations, have three choices: + Migrate all systems to S/4HANA, The number of systems would remain the same. + Merge the systems into one (or afew) and upgrade the mergad systems to S/4HANA. Unlike the first option, all data would be consolidated, which would allow financial reporting across the entire group. Tennaweemes 8 287rsro1g SAP e-book a9