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    SAP ECC vs. S/4HANA Data Model Differences

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    SAP ECC vs. S/4HANA Data Model Differences

    SAP ECC vs. S/4HANA Data Model Differences

    Business Logic Changes

    Account-Based CO-PA as the Default Option

    In SAP ECC, Costing-based CO-PA was the most widely used option, where profitability analysis was performed based on "value fields" and did not always reconcile with the General Ledger (GL).

    In SAP S/4HANA, Account-based CO-PA is the default and preferred option. It provides full integration and reconciliation with the Universal Journal (ACDOCA) in the General Ledger.

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    Key Advantages of Account-Based CO-PA:
    • Real-time reconciliation: It directly pulls data from the GL, ensuring there are no differences between FI (Financial Accounting) and CO (Controlling).
    • Enhanced reporting: Profitability reports can now be created using the same accounts as the GL, making reporting simpler and consistent.
    • Universal Journal integration: All profitability analysis data flows directly into ACDOCA, reducing data redundancy and improving performance.

    → How Profitability Reporting (CO-PA) works in SAP S/4HANA

    Finance (FI) and Controlling (CO) Merger

    In SAP ECC, businesses users manage their financial data with both FI (Finance) and CO (Controlling) while using separate tables (e.g., BKPF/BSEG for FI and COEP/COSP for CO). In S/4HANA, these tables are merged into a single table called ACDOCA, also known as the Universal Journal. This ensures that all financial and controlling data are stored together at the line-item level.

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    Elimination of Reconciliation and Real-Time Integration:

    In SAP ECC, there was a need for periodic reconciliation between FI and CO to ensure consistency between financial and controlling data. With ACDOCA in S/4HANA, reconciliation is no longer needed because all the data is recorded in a single table in real time, ensuring automatic consistency.

    All postings to FI and CO happen in real time. Any change or transaction in one area immediately reflects in the other. This eliminates delays and simplifies processes, particularly at period-end closings.

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    Enhanced Reporting Capabilities:

    The Universal Journal allows unified reporting across financial and controlling dimensions. ACDOCA contains additional fields (e.g., Profit Center, Cost Center, Segment) that enable detailed and multidimensional reporting without requiring complex data extraction or reconciliation.

    → ACDOCA Use-Cases In SAP S/4HANA

    → See Finance Tables in ECC vs. ACDOCA

    Integrated Business Partners

    In SAP ECC, customers and vendors are separate data objects. SAP S/4HANA integrates customers and vendors into a unified master data object called business partners. Customer-vendor integration has several benefits, such as:

    • One business partner can have multiple roles and addresses
    • General data is shared across roles, which reduces your database footprint
    • There's less redundancy since unused data is deleted after a certain time-period

    → Business Partners in SAP S/4HANA

    Mandatory Material Ledger

    In SAP ECC, the Material Ledger was optional. Many companies avoided activating it due to its complexity, reliance on numerous aggregate/index tables, and the performance overhead associated with them. In SAP S/4HANA, the Material Ledger is mandatory. It's tightly integrated into the Universal Journal (ACDOCA) architecture, eliminating the need for many aggregate and index tables.

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    Key benefits of this integration:
    • No separate tables for Material Ledger like in ECC (e.g., MLHD, MLIT, MLCR, etc.).
    • No need to reconcile data between Material Ledger and Financial Accounting.
    • The Material Ledger in S/4HANA supports parallel valuations (legal valuation, group valuation, and profit center valuation). This allows companies to comply with multiple accounting standards (e.g., IFRS, local GAAP) seamlessly.
    • Actual Costing (a key feature of the Material Ledger) is easier to manage due to the simplified architecture. It allows you to calculate actual costs for materials at period-end or determine variances between standard costs and actual costs in real-time.
    • The Material Ledger in S/4HANA supports multiple currencies (up to 10 currencies in ACDOCA).
    • ACDOCA replaces the old Material Ledger tables (like MLHD, MLIT, MLCR).

    MATDOC Inventory Management

    SAP S/4HANA introduces MATDOC, a new inventory management system that eliminates over 26 tables present in SAP ECC. Now, material documents are stored in MATDOC instead of MKPF or MSEG tables. This removes redundancy and improves stock reporting efficiency.

    → Inventory Management Tables in SAP S/4HANA

    Billing: New Tables for Pricing

    In SAP S/4HANA, the data model for pricing conditions has been simplified compared to SAP ECC. Key ECC tables such as KONV (Condition Values), KONP (Condition Records), and KOND (Condition Master Data) have been replaced or consolidated. The new PRCD_ELEMENTS table is introduced in S/4HANA to store pricing condition records, reducing redundancy and improving efficiency.

    → Pricing Elements Tables in SAP S/4HANA

    Data Extraction Changes

    Introduction of CDS Views

    Core Data Services (CDS) Views in SAP S/4HANA are advanced data modeling tools that enable efficient and flexible data access. Built on SQL-like syntax, CDS Views allow developers to create virtual data models and data extracts quickly.

    → CDS Views vs. Extractors vs. RAW SAP Tables

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    Profitability Reporting (CO-PA) in SAP S/4HANABusiness Partners in SAP S/4HANAACDOCA Use-Cases In SAP S/4HANAFinance Tables in SAP S/4HANAInventory Management Tables in SAP S/4HANAPricing Elements Tables in SAP S/4HANAExtracting data from CDS Views vs. Extractors vs. RAW SAP Tables