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Business Partner HANA Cloud Over ECC

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36 views6 pages

Business Partner HANA Cloud Over ECC

Uploaded by

maazsz111
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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GALVINUS

FUNCTIONAL
DIFFERENCESS BETWEEN
SAP ECC OVER S/4 HANA
CLOUD IN SOURCING AND
PROCUREMENT
BY MAAZ AHMED M
 SAP S/4 HANA Cloud for sourcing and procurement offers several functional
enhancements and improvements over SAP ECC in the areas of sourcing,
procurement, and supplier relationship management.

Figure: Overview SAP ECC over SAP S/4 HANA Cloud [1]

 SAP ECC and SAP S/4HANA Cloud are two leading ERP systems that offer
comprehensive solutions for sourcing and procurement.

 While both systems share the same core functionalities, there are distinct functional
and fundamental differences that set them apart.

 SAP S/4HANA Cloud for Sourcing and Procurement introduces several advancements
over SAP ECC, bringing about a paradigm shift in how organizations manage their
procurement activities.

Figure: Integration of SAP ECC over S/4 HANA Cloud [2]


Strategic sourcing and operational procurement

Features SAP ECC SAP S/4 HANA Cloud

Centralized  Decentralized approach  Centralized platform for


Management can lead to data silos and managing relationships.
inconsistencies  Maintain a single source
Collaboration  Limited collaboration  Collaboration through
tools hinder effective secure portals, enabling
communication with suppliers to submit
suppliers. proposals
 Access real-time
information on purchase
orders and requisitions.
Risk Management  Reactive approach to  proactive approach
risk management often enables organizations to
results in delayed assess and manage risk by
identification and incorporating risk ratings
mitigation of potential
risks.
Procurement Process  Paper-based  Simplifies procurement
procurement processes processes by automatic
can be inefficient and creation, approval
prone to errors. workflows, purchase
order and invoice
processing
Real-Time visibility  Limited visibility into  Provides real-time
spend can make it visibility into spend
challenging to track across the organization
procurement costs
Recommendations  Lacks built-in  Utilizes recommendations
recommendation to suggest suppliers,
capabilities, limiting materials, and pricing
procurement efficiency. based on historical data,
market trends.

 SAP S/4HANA Cloud for Sourcing and Procurement represents a significant step
forward in ERP technology, offering a range of functional enhancements and
advantages over SAP ECC.
Advantages of SAP S/4HANA Cloud
 SAP S/4HANA Cloud for Sourcing and Procurement offers several advantages over
SAP ECC, making it a compelling choice for organizations seeking to streamline their
procurement operations, enhance supplier collaboration, improve spend visibility, and
achieve their sustainability goals.

1. Real-time insights and decision-making


2. Streamlined and automated procurement processes
3. Enhanced supplier collaboration and risk management
4. Integrated analytics and carbon footprint tracking
5.Cloud-based deployment for scalability and flexibility

Functional Difference of Business Partner (BP) between SAP ECC and


SAP S/4 HANA Cloud
 SAP S/4HANA Cloud introduced a unified business partner (BP) concept,
consolidating customer and vendor data into a single master data object.
 Where ECC explains about different master data for different partners like vendor
master data as one partner and customer master data as one partner where lot of
confusions and configurations into it.

ECC S/4 HANA Cloud

 The evolution of business partners in SAP S/4HANA Cloud brings significant


improvements to sourcing and procurement processes.

 Enabling organizations to streamline collaboration, optimize spend, and manage


supplier relationships more effectively.

Example with respect to ECC and S/4 HANA for Business partner (BP):

SAP ECC
 A company has a customer named WEG Corporation, which also supplies goods to the
company.

 The company would have to create two separate business partner records for WEG
Corporation: one as a customer and one as a vendor.

 This would lead to duplicate data entry and a higher risk of inconsistencies.

S/4 HANA Cloud

 The company would only need to create one business partner record for WEG
Corporation.

 This record would include information about WEG Corporation as both a customer
and a vendor.

 This would eliminate data redundancy and make it easier to manage the relationship
between the two companies.

Figure: Business partner benefits [3]

Functional Differences Summary:


Feature SAP ECC SAP S/4 HANA Cloud
Business partner concept Separate customer and Unified business partner
vendor master data (BP) master data
Partner relationship Limited capabilities Enhanced capabilities,
management including parent-child
relationships and partner
hierarchies
Data integrity Prone to data redundancy Eliminates data
and inconsistencies redundancy and provides
a holistic view of
business relationships
Real-time visibility Limited visibility into Real-time visibility into
partner data partner data
Integration with other Limited integration Extensive integration
SAP modules

Conclusion:
 SAP S/4HANA Cloud offers a significant improvement over SAP ECC in
terms of business partner management. The unified BP concept, enhanced
partner relationship management capabilities, real-time visibility, and
extensive integration with other SAP modules make SAP S/4HANA Cloud a
more powerful and efficient solution for managing business relationships.

References:
[1]https://news.sap.com/2022/11/sap-ecc-to-sap-s4hana-cloud-align-business-
people-technology/
[2]https://answers.sap.com/questions/13627571/integration-decision-and-
analysis-in-ecc-to-s4-han.html
[3] https://blogs.sap.com/2023/07/16/business-partner-concept-in-sap-s-4hana/

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