A Detailed Comparison: Key Differences Between SAP ECC and SAP S/4HANA

SAP, established in Germany in 1972, is a leading provider of enterprise resource planning (ERP) software, with over €28 billion in global revenue and more than 240 million cloud subscribers.

ERP Software Specialization:

SAP's ERP solutions enhance efficiency and customer experience across finance, inventory, asset management, sales, HR, marketing, and product development.

Introduction of SAP S/4HANA:

In 2015, SAP launched SAP S/4HANA, its advanced ERP software. Many businesses still use its predecessor, SAP ECC, but SAP will stop maintaining SAP ECC by 2027, necessitating migration to SAP S/4HANA.

SAP ECC Overview:

SAP ECC (ERP Central Component) is modular and highly customizable, supporting various business needs from finance to logistics. It integrates with third-party applications but requires careful planning for upgrades due to its interconnected components.

SAP S/4HANA :

SAP S/4HANA, available on-premise and in the cloud, utilizes AI, machine learning, and automation for enhanced efficiency. It supports real-time data analysis but only runs on the SAP HANA database, complicating migration for those using third-party databases like Oracle.

Key Differences

Default Account-Based CO-PA:

SAP ECC: Uses costing-based CO-PA by default.
SAP S/4HANA: Uses account-based CO-PA as default but supports both.

FI and CO Merger:

SAP ECC: FI and CO are separate.
SAP S/4HANA: Merges FI and CO in the Universal Journal (ACDOCA) for real-time reconciliation.

Material Number Extension:

SAP ECC: Material number limited to 18 characters.
SAP S/4HANA: Extends material number to 40 characters, requiring custom code adjustments.

Integrated Business Partners:

SAP ECC: Separate customer and vendor data.
SAP S/4HANA: Unifies them into a single business partner data object.

Real-time MRP:

SAP ECC: Batch processing during non-peak hours.
SAP S/4HANA: Real-time MRP processing, though limited to plant and area levels.

Mandatory Material Ledger:

SAP ECC: Optional.
SAP S/4HANA: Mandatory, integrated into ACDOCA, reducing data footprint.

New Features in SAP S/4HANA

ACDOCA: Combines multiple data modules, reducing redundancy and improving efficiency.
MATDOC: New inventory management system replacing multiple ECC tables.
SAP HANA Database: Enhances speed and efficiency with in-memory data processing and column-based tables.
Advanced ATP (aATP): Automates availability checks and delivery processes.
Global Trade Services (GTS): Automates trade processes previously manual in ECC.
FSCM Credit Management: Modernizes and automates credit management processes.
Extended Warehouse Management (EWM): Replaces ECC's Warehouse Management module for better process management.
Revenue Accounting and Reporting (RAR): Complies with IFRS 15, optimizing contract management.
SAP Fiori User Interface: Offers a consistent, intuitive user experience across devices.

Benefits of Moving to SAP S/4HANA

Improved efficiency and customer satisfaction
Better integration with other SAP products
Lower operational costs
Reduced data footprint
Enhanced decision-making capabilities
Higher profits

With the 2027 maintenance deadline for SAP ECC, migrating to SAP S/4HANA is crucial for maintaining operational efficiency and leveraging modern technology to drive business growth.