S/4Hana Episode 3: SAP SIMPLE FINANCE, where to start?
Simple Finance prerequisites?
The first question to ask yourself before embarking on the implementation and delivery of a Simple Finance project (based on an existing system or from scratch) is what the prerequisites are in terms of technical architecture.
Put simply, any customer currently using SAP ECC6 and SAP NetWeaver 7.40 can consider moving to Simple Finance, regardless of their EHP version and database type (Oracle, SQL Server, IBM DB2, etc.). If the criteria are met, it will then be necessary to migrate to an in-memory HANA database and upgrade to at least EHP7. From there, the Simple Finance add-on can be activated!
Also, and contrary to popular belief, it is not necessary to activate NewGL features to move to Simple Finance. It is entirely possible to move from classic GL to Simple Finance. However, you will have to do without splitting features as well as multi-GAAP accounting (SAP has announced that it will offer ad-hoc activation of these features in the near future). MeltOne strongly recommends activating NewGL to avoid closing doors on the evolution of your solution.
Please note, however, that you must clearly separate the technical aspect of this operation—i.e., activating Simple Finance once the HANA database and EHP7 are installed—from the functional aspect of this operation, i.e., the actual migration of all data to the new Simple Finance table (the famous ACDOCA) and post-migration data reconciliation.
While the first step may seem straightforward and can be completed in a relatively short timeframe—SAP has made available to its customers a whole set of dedicated tools and programs for migration—the second, on the other hand, requires a greater investment (allow around 4 to 6 months for the project).
It should also be noted that, before considering moving to Simple Finance, it is necessary to carry out a pre-project analysis aimed at:
- Analyzing OSS notes (changes to the solution are still frequent).
- Checking the compatibility of business functions and Industry solutions to ensure they are compatible with Simple Finance and your context.
Depending on the type of implementation envisaged, the level of complexity of the migration project will therefore differ. A “from scratch” project will require only minimal technical effort. The main issue will then be redefining processes. On the other hand, moving from an existing installed base to an SAP HANA Simple Finance system is a full migration project that must be managed in different stages.
Key project stages?
The preparation stage is essential and aims to gather functional requirements, analyze impacts on existing processes, and redefine the company’s reporting. During this phase, it is also recommended to review all SAP SIMPLE FINANCE functionalities in order to carry out an opportunity study to improve existing processes and take advantage of the new features offered by the solution. Training end users on the new Simple Finance transactions (FAGLL03H, ABAWL, etc.) will also take place during this phase. Finally, it will be necessary to launch the closing and data extraction steps from the system before installing and activating Simple Finance.
The installation stage, as its name suggests, corresponds to installing Simple Finance on the HANA database. When this stage is completed, the system automatically backs up all existing tables so that it is possible to roll back if issues are detected post-migration.
The delivery stage is the technical stage consisting of configuring the solution for general ledger accounting, the new asset accounting, and COPA.
The migration stage is carried out by running standard programs that take over and transcribe the data into the new ACDOCA table. As indicated, custom developments will not require rework, as the system is able to “remap” the fields present in the old tables to the new ones.
The functional verification stage consists of ensuring data consistency before and after migration (i.e., data reconciliation). It will mainly involve business resources.
Are you ready to move to Simple Finance?
Whether it is a scoping study, project management, or simply functional expertise on the execution of a move to or a data migration to Simple Finance, MeltOne, with its trained consulting teams, is ready to support you in making your project a success.
Our areas of expertise can meet your needs, including:
- An IT audit in preparation for moving to Simple Finance
- Defining a master plan to help you transform your functional and technical landscape
- Producing an IT architecture document
- Data model modeling
- Project management support for a Simple Finance project
- Functional delivery of each project stage
- Training end users on new Simple Finance features
Would you like to know more? Please do not hesitate to contact us: jsaccona@meltone.com
Let’s discuss your challenges and our solutions
Let’s talk about your project and discover how MeltOne can turn your challenges into concrete, high-performing solutions.
