Difference Between SAP FICO And SAP S/4HANA Finance

SAP FICO is one of the essential functional modules in SAP ERP components that helps organizations to manage all of their financial data. The primary purpose of SAP FICO is to support the organization to produce and handle all the financial statements for analysis and reporting and also assist with effective business planning and decision-making. SAP FICO comprises two modules, i.e., SAP Finance (FI) and SAP Controlling CO, and each of these modules is used to carry out specific financial processes. SAP FI Module focuses on complete financial reporting and accounting while SAP CO emphasizes planning and monitoring costs. SAP FI and SAP CO were originally released as separate modules, but now these modules are integrated so strongly that most people are referring to them as a single module. Unravel the Difference between SAP FICO and SAP S/4HANA Finance with our insightful comparison

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On the Other side SAP S/4HANA Finance

SAP S4 HANA FINANCE which was known earlier as SAP Simple Finance. The term ‘SAP Simple Finance’ is no longer an official brand, yet there are still many people who utilize this term interchangeably due to the fact that it was highly marketed by SAP for a while.

• One usual view of financial data which is consistent company-wide reduces reconciliation initiatives.
• A Universal Journal for financial/controlling data.
• Central Finance to consolidate multiple back-end data sources.

The main distinction is SAP S/4HANA comes under the technical module while SAP FICO comes under the functional Module to handle all financial and costing aspects of an organization while SAP S4 HANAis a Reporting tool. SAP FICO helps us to deal with all activities regarding accounts and it is integrated with various modules for example MM, PP, and SD.

SAP FICO is an important module of ERP and both SAP FI and CO modules store the financial transactions data. while SAP S4 HANA is the area of the S/4HANA suite dealing specifically with Financial Management solutions. It enables a Universal Journal for financial/controlling data, and Central Finance to consolidate multiple back-end data sources.

The S/4HANA Finance system could be executed and immediately replace all existing transactional or FICO systems at once. Nevertheless, as we understand the implementation of a system this essential is a time-consuming and sensitive project.

Central Finance is an intermediate way of implementing a S/4HANA Finance system that reduces any disruption by allowing the existing Finance and Controlling applications to remain in place and active, while still integrating those same transactions into the new S/4HANA Finance system by utilizing SLT data replication. This can reduce the risk of attempting to replace several transactional systems all at the same time.

Conclusion

S/4HANA is a company suite built on top of SAP’s in-memory platform, HANA. The S/4HANA suite includes ERP capabilities across many different business areas such as Human Resources, Sales, Finance, Procurement, Supply Chain, and more.

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Author:-

Priyanka Jubre

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