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Beschreibung

Learn every aspect of SAP S/4HANA and develop the skills needed to migrate from SAP ECC


Key Features Gain insight into the implementation and configuration of SAP S/4HANA Design business processes with SAP Central Finance Learn the available SAP S/4HANA deployment options in depthBook Description


SAP S/4HANA implementation, migration, and Central Finance are the key projects being employed across the globe, with millions of consultants working day and night to implement them. Mastering SAP S/4HANA 1709 - Strategies for Implementation and Migration will allow you to gain a virtual implementation experience, and you can follow the steps to configure the learning system as per your requirements. This book focuses on several topics; each topic is covered in detail to make you a successful SAP S/4HANA professional.


You will begin by understanding SAP HANA and then move toward S/4HANA and the deployment options available to customers, including what suits various customer needs. You will then understand the impact of S/4HANA on General Ledger, Asset Accounting, and Profitability Analysis; SAP notes will also be listed when needed. As you progress through the book, you explore premigration, migration, and post-migration steps including the Near Zero Downtime strategy and learn how to implement Central Finance with and without MDG using SLT. In the concluding chapters, greenfield implementations using SAP Activate methodology will also be covered.


By the end of this book, you will have learned to successfully implement SAP S/4HANA projects that are customized for your business needs.


What you will learnUnderstand SAP HANA and SAP S/4HANAImplement SAP S/4HANA as a greenfield implementation with SAP Activate methodologyDiscover the hidden challenges in SAP Central Finance Migrate from ECC to S/4HANA successfully in a non-disrupted roadmapExplore the change from Classic Asset Accounting to New Asset AccountingLearn to configure General Ledger, Profitability Analysis, and ControllingApply the Near Zero Downtime strategy to migration projectsWalk through Customer Vendor Integration (CVI)Who this book is for


Mastering SAP S/4HANA 1709: Strategies for Implementation and Migration is for project managers, solution architects, and consultants who are planning to implement SAP S/4HANA for ERP solutions and are in the process of implementing it or are currently upgrading/migrating to it.


Nitin Gupta is an IT professional with expertise in SAP solution architecture, business process transformation, and project management and over 11 years of experience in managing and delivering complex SAP and transformation projects resulting in efficiency and productivity. He has successfully led and managed full lifecycle SAP implementation projects across the globe. He holds a master's in business administration and is presently based in Auckland.

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Mastering SAP S/4HANA 1709 – Strategies for Implementation and Migration

 

 

 

 

 

 

 

 

 

 

 

Transition to S/4HANA with tried and tested deployment scenarios

 

 

 

 

 

 

 

 

 

 

 

Nitin Gupta

 

 

 

 

 

 

 

 

 

BIRMINGHAM - MUMBAI

Mastering SAP S/4HANA 1709 – Strategies for Implementation and Migration

Copyright © 2018 Packt Publishing

All rights reserved. No part of this book may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, without the prior written permission of the publisher, except in the case of brief quotations embedded in critical articles or reviews.

Every effort has been made in the preparation of this book to ensure the accuracy of the information presented. However, the information contained in this book is sold without warranty, either express or implied. Neither the author, nor Packt Publishing or its dealers and distributors, will be held liable for any damages caused or alleged to have been caused directly or indirectly by this book.

Packt Publishing has endeavored to provide trademark information about all of the companies and products mentioned in this book by the appropriate use of capitals. However, Packt Publishing cannot guarantee the accuracy of this information.

Commissioning Editor: Merint MathewAcquisition Editor: Sandeep MishraContent Development Editor: Akshada IyerTechnical Editors: Abhishek Sharma, Adhithya HaridasCopy Editor: Safis EditingProject Coordinator: Prajakta NaikProofreader: Safis EditingIndexer: Rekha NairGraphics: Jisha ChirayilProduction Coordinator: Deepika Naik

First published: June 2018

Production reference: 1290618

Published by Packt Publishing Ltd. Livery Place 35 Livery Street Birmingham B3 2PB, UK.

ISBN 978-1-78883-933-4

www.packtpub.com

 

To my father, for everything I am and will be.....I owe it to you. To my wife, for her inspiration, and to my kids, Nilay and Nivi, for their love.
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Contributors

About the author

Nitin Gupta is an IT professional with expertise in SAP solution architecture, business process transformation, and project management and over 11 years of experience in managing and delivering complex SAP and transformation projects resulting in efficiency and productivity. He has successfully led and managed full lifecycle SAP implementation projects across the globe. He holds a master's in business administration and is presently based in Auckland.

About the reviewer

Pallavi Gupta is a finance expert with vast experience in SAP. Her expertise includes SAP Financials and SAP S/4HANA. She is presently working as an independent consultant on several projects under her own company. She has excellent interpersonal skills and is involved in several client-facing roles. She is presently based in Auckland.

 

 

 

 

 

 

 

 

Packt is searching for authors like you

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Table of Contents

Title Page

Copyright and Credits

Mastering SAP S/4HANA 1709 – Strategies for Implementation and Migration

Dedication

Packt Upsell

Why subscribe?

PacktPub.com

Contributors

About the author

About the reviewer

Packt is searching for authors like you

Preface

Who this book is for

What this book covers

To get the most out of this book

Download the color images

Conventions used

Get in touch

Reviews

An Overview of SAP HANA, S/4HANA, and Migration

Technical requirements

In-memory data – a core to SAP HANA

Optimization of in-memory data

Data storage model

Data compression

Delta storage

Data aging

SAP HANA Live

Introduction to SAP S/4HANA

Understanding SAP S/4HANA

The Universal Journal

Compatibility views for historic data

Merging G/L accounts and cost elements

Logistics changes

Changes to material master data

Sales activity

SD rebate processing

Data model changes

Credit management

Introduction to SAP Fiori

What is SAP Fiori?

Key pillars of the Fiori experience

Type of Fiori apps

SAP Fiori Launchpad

SAP Fiori architecture

SAP Fiori business benefits

S/4HANA migration overview

Introduction to migration

Concept of business partners

Customer vendor integration

What is CVI?

Business impact of CVI

CVI conversion scenarios

Summary

Questions

Migration to SAP HANA – Tools and the Project

Technical requirements

System migration

SAP homogeneous system copy

Reasons for a homogeneous system copy

SAP heterogeneous system copy

System copy consequences and decision table

Migration check service

Benefits of migration check service

System copy method

Database-specific copy method for Java

SAP migration tools

ABAP OS/DB migration

DB object size calculation with R3SZCHK

JAVA OS/DB migration

System copies – import and export

Software logistics toolset

Software provisioning manager

Target database size

Migration project overview

A sample schedule

SAP OS/DB migration check analysis

SAP OS/DB check verification

Required source system information

Required source system – technical information

Performing a migration test run

Final migration planning

Installing and upgrading

Software update manager

Summary

Questions

SAP S/4HANA – Deployment Options

What is deployment?

SAP S/4HANA deployment options

SAP S/4HANA On Premise

SAP S/4HANA on Cloud

Comparing S/4HANA On Premise and On Cloud

Types of cloud

An overview of implementation scenarios

Hybrid model of deployment

Summary

Questions

Impact of S/4HANA on the SAP General Ledger

Technical requirements

The history of the General Ledger

An overview of the Classic General Ledger

An overview of the New General Ledger

Features of the New GL

General Ledger in SAP S/4HANA

Data structure of GL in SAP S/4HANA

Universal Journal

Ledgers and currencies

GL account and cost elements

Changes to transactions and search options

Customizing the SAP General Ledger

Activating SAP Reference IMG

Checking and adopting Fiscal year variants

Migrating General Ledger customizations

Defining settings for the Journal Entry Ledger

Defining ledger groups

Assigning the accounting principle to the ledger group

Defining a ledger for Controlling

Defining document types for posting to Controlling

Defining the document type mapping variant

Defining default values for posting in Controlling

Defining the offsetting account determination type

Defining the source ledger for migration of balances

Executing the consistency check for the General Ledger

Activating business functions

Summary

Questions

Impact of S/4HANA on SAP Controlling and Profitability Analysis

Technical requirements

An introduction to SAP Profitability Analysis (CO-PA)

Usage of COPA

Methods of profitability management

Methods of Profitability Analysis in SAP

Aspects in SAP profitability management and organization units involved

Comparative analysis of various methods

Types of CO-PA

Account-based COPA

Costing-based COPA

Differences between account-based and cost-based COPA

COPA in SAP S/4HANA

Integration of Account-based CO-PA to Universal Journal

Attributed profitability segments

Realignment in CO-PA with SAP S/4HANA

Characteristics that cannot be changed

Characteristics that can be changed freely

Characteristics that can be changed only if the account assignment is not true

Characteristics that are changeable if the field is initial at the time for execution of realignment

Reporting options in CO-PA with SAP S/4HANA

The Fiori app

Analysis for Office

HANA Live

COGS split in S/4HANA-based CO-PA

Defining accounts for splitting COGS

Defining additional quantity fields

Defining accounts for Splitting Price Differences

Material Ledger in SAP S/4HANA

Significant changes in Controlling in SAP S/4HANA

Changes in transactions

Changes in tables

Changes in configuration

Configuration of the document type for CO

Maintaining document-type mapping for CO transactions

Checking and defining default values for posting in Controlling

Maintaining version for the ledgers

Summary

Questions

Impact of S/4HANA on SAP Asset Accounting

Technical requirements

An overview of SAP Asset Accounting

Features of SAP Asset Accounting

Organizational units in Asset Accounting

Charts of depreciation

Integration components

Integrating with Controlling

Integrating with General Ledger (FI)

Integrating with Material Management (MM)

Asset classes and their components

An introduction to New Asset Accounting

Key changes in New Asset Accounting

Changes to transaction codes

An introduction to the Technical Clearing Account (TCA)

Changes to AuC and Transaction Types

Posting to the Universal Journal

New depreciation-calculation engine

Depreciation areas and ledgers

Data migration in New Asset Accounting

Summary

Questions

S/4HANA New Functionalities – Cash Management, BPC, and Fiori UX

Technical requirements

Introduction to Bank Account Management (BAM)

Solution overview

Redesigned approach in SAP S/4HANA

Configuration

Maintaining number ranges for bank account technical IDs

Maintaining bank account types

Configuring enable payment approval process

Configuring payment signatories

Configuring cash pool for cash concentration

Existing options for extensibility

ICF services

BAM and BAM Lite

Introduction to Cash Management

Prerequisite check

Master Data set up

Bank statement processing

Manage cash operations

One Exposure from Operations

Introduction to BPC

What's new in this area?

Before and after S/4HANA comparison

Applications used

Components supported

How data flows

Authorizations

Planning modeler

Introduction to Fiori

Summary

Questions

Overview of Implementation Scenarios

Technical requirements

Available implementation scenarios

New implementation

Duration of the new implementation

Approach in new implementation

Data migration

System conversion

How to plan a migration project?

Key performance indicators (KPIs) in migration

Landscape transformation

Benefits of landscape transformation

Characteristics of SAP S/4HANA landscape transformation projects

System landscape transformation (SLT)

Preconfigured solutions

Available consolidation scenarios

Migration of business units

Migration of selected applications (central finance)

Elements of central finance

Central finance replication model

Solution methodology – central finance

Summary

Questions

Period End Closing in SAP S/4HANA

Technical requirements

Closing activities

Month-end closing

Year-end closing

Reporting with SAP S/4HANA

Financial statement versions

Reporting options in SAP S/4HANA

Closing Cockpit in SAP S/4HANA

Closing Cockpit usage scenarios

Closing Cockpit configuration

Creating a template

Creating tasks

 Defining the Dependencies and Create Task Lists

Releasing the Task List

Checking dependencies

Executing dependencies

Process control

Summary

Questions

Premigration Activities

Technical requirements

Preparation for migration

Prechecks in migration

Preparation and migration of customizing for General Ledger

Activating SAP Reference IMG

Checking and adopting Fiscal year variants

Migrating General Ledger customization

Defining settings for the Journal Entry Ledger

Defining ledger groups

Assigning accounting principles to the ledger group

Defining the ledger for controlling

Defining document types for posting to controlling

Defining document type mapping variant

Defining default values for posting in controlling

Defining the offsetting account-determination type

Defining the source ledger for the migration of balances

Executing consistency checks for General Ledger

Activating the business functions

Preparing and migrating customization of Asset Accounting

Preparing and migrating customization of controlling

Preparing and migrating the Material Ledger customization

Preparing and migrating the House Bank accounts customization

Preparing and migrating the Credit Management customization

Summary

Questions

Migration Activities

Technical requirements

Data migration

Partition of Universal JE Line Items

Regenerating CDS views and field mapping

Analyzing transaction data and status display

Starting and monitoring data migration

Overview tab

Migration runs

Status of migration run

Control tab

Tables tab

Migration of cost elements

Technical check of transactional data

Material Ledger migration

Enrichment of data

Migration of line items

Migration of balances

Calculation of depreciation and total values

Migrating General Ledger allocations

How to do it?

Migrating house bank accounts

Migrating Credit Management

Migrating Credit Management Master Data and status display

Migrating Credit Management exposure and status display

Initializing Documented Credit Decisions (DCD) and status display

Reconciling Documented Credit Decisions (DCD)

Completing migration

Reconciling and comparing migrated data

Setting migration to complete

Summary

Questions

Post-Migration Activities

Technical requirements

Activities after migration

Running reconciliation reports

Business process validation

Transferring application indexes and displaying the status

Filling due dates in FI documents and the display status

Filling offsetting accounts in FI documents

Enrichment of balance carryforward

Settings for enrichment of balance carryforward

Reconciling the balance with line items and displaying reconciliation status

Specifications for Balance Sheet and P&L accounts

Enriching balance carryforward based on line items

Manual activities for credit management

Completing a credit management migration for unmigrated customers

Deactivating the reconciliation ledger

After migration testing

Testing HANA-optimized reports

Testing reporting

Testing database usage

Testing intercompany reconciliation

Testing Universal Journal and the closing process

Summary

Questions

Central Finance – a No-Disruption Approach

Technical requirements

An overview of SAP Central Finance

Understanding Central Finance

Key business benefits and use cases

Central Finance process use cases

Key limitations

Short-life master data

Fixed assets

Inventory

Logistics documents

Costing-based COPA

Document-splitting

Profit-center-only postings

Central Finance architecture

Source system

System Landscape Transformation

SAP Master Data Governance (MDG)

S/4HANA system  

Application Interface Framework (AIF)

Central Finance interfaces

Central Finance mapping 

Initial load and real-time replication

System configuration 

Source system 

System Landscape Transformation (SLT) 

Defining objects

Defining the initial load object

Defining the replication object

Activating the Initial Load and Replication Objects

Control Load/Replication using the SAP LT Replication Server

S/4HANA system

Configuring the SAP Application Interface Framework (AIF)

Clearing Functionality

Central Payments

Business benefits of Central Payment

Configuring Central Payment

Managing cost-based COPA in SAP Central Finance

Summary

Questions

Greenfield Implementation

Technical requirements

Greenfield implementation

ASAP methodology

The key benefits of the ASAP methodology

Phases of the ASAP methodology

Agile ASAP 8 methodology

SAP Activate

Pillars of SAP Activate

SAP Best Practices

Guided configuration

Methodology

SAP Activate methodology's features

Activate methodology key characteristics

The Activate methodology structure

Governance, roles, and responsibilities

Activate journey – new implementation (cloud)

Activate journey – new implementation (premise)

Activate journey – system conversion

Differences between SAP Launch, ASAP, and SAP Activate

Summary

Questions

The Near Zero Downtime (NZDT) Strategy

Technical requirements

The Near Zero Downtime strategy

Summary

Questions

Other Books You May Enjoy

Leave a review - let other readers know what you think

Preface

If you look on the internet, you will find that SAP is one of the blooming areas in technology, and with the introduction of SAP S/4HANA, the processes and organizations are going through major changes. Millions of jobs are available; however, the skill set is limited as the product is new and is still evolving. The content is scattered across areas such as logistics, Central Finance, changes with S/4HANA, Closing Cockpit, and migration steps. You can find these areas in several books covered in several ways, so what is it that this book offers that's different?

This book is the one-stop shop for all these areas. You will find an end-to-end overview of the processes, changes, simplifications, deployment options, and configuration of all the relevant areas, including, but not limited to, SLT, Central Finance, New Asset Accounting, and Fiori tiles.

Who this book is for

This book will work as a guide to those who have SAP project experience and are looking to learn more about SAP S/4HANA, such as functional consultants, integration experts, project managers, design leads, and solution architects. Also, people who are new to SAP S/4HANA can start with this book.

What this book covers

This books is purely focused on SAP S/4HANA innovations, and also gives a background of how the process was handled before SAP S/4HANA within SAP itself. It covers the following areas:

Chapter 1, AnOverview of SAP HANA, S/4HANA, and Migration, helps you get into the topic. You will understand the journey and path of innovation, starting from HANA and then moving to S/4HANA. This will set the stage for the rest of the chapters.

Chapter 2, Migration to SAP HANA – Tools and the Project, is a purely technical chapter in which the focus will be on understanding the migration to SAP HANA, the tools available, the steps, and the effort required in terms of resources and time. Also, we will talk about a sample project to impart practical understanding.

Chapter 3, SAP S/4HANA – Deployment Options, takes you through the available deployment options—cloud, on premise, and the hybrid model, along with their key features, benefits, and challenges.

Chapter 4, Impact of S/4HANA on the SAP General Ledger, purely focuses on changes to General Ledger areas with the introduction of SAP S/4HANA. We will see the necessary functionality changes as well as the configuration changes.

Chapter 5, Impact of S/4HANA on SAP Controlling and Profitability Analysis, purely looks at changes to Controlling as well as COPA with the introduction of SAP S/4HANA. SAP recommends that users use Account-based COPA with S/4HANA, and also covers the benefits. We will also take a look at the necessary functionality changes as well as the configuration changes.

Chapter 6, Impact of S/4HANA on SAP Asset Accounting, gives you a view of all the changes done in the Asset accounting area with the introduction of new asset accounting. It will involve the configuration as well as the functionality changes.

Chapter 7, S/4HANA New Functionalities – Cash Management, BPC, and Fiori UX, runs you though the new functionalities introduced in S/4HANA, such as BAM, Credit Management, and changes to BPC, and we will also learn what Fiori is all about and see how to create a simple Fiori tile.

Chapter 8, Overview of Implementation Scenarios, discusses the available implementation scenarios, which may be different for each customer, and also we will learn how to move ahead based on the present customer situation.

Chapter 9, Period End Closing in SAP S/4HANA, is mainly dedicated to the closing features as well as the closing cockpit. We will see how the closing cockpit introduced in SAP S/4HANA 1709 is different from the cockpit of SAP ECC.

Chapter 10, Premigration Activities, helps you learn about the preparatory activities involved in migration.

Chapter 11, Migration Activities, covers an end-to-end view of migration activities, including configuration, which we have to do when we move from SAP ECC to SAP S/4HANA.

Chapter 12, Post-Migration Activities, is all about the wind up activities necessary to complete the migration. It involves some sanity checks as well as some reconciliations.

Chapter 13, Central Finance – a No-Disruption Approach,  is a chapter dedicated to Central Finance, one of the key areas in which organizations are investing and looking toward for the future. All configurations, processes, and relevant aspects of central finance are covered in this chapter.

Chapter 14, Greenfield Implementation, is the best way to learn about SAP activate in detail. This chapter will guide through the methodology and how it differs from the previous SAP implementation methodologies.

Chapter 15, The Near Zero Downtime (NZDT) Strategy, is a small chapter that guides the readers through the core features of NZDT and explains how it can be used to reduce the downtime during migration.

To get the most out of this book

In order to use this as the best method for learning, ensure that you understand the key SAP terms, processes, and organization structure in SAP. Although it is not expected that you should be aware of all SAP ECC configurations in advance, if you know them and have previously used them in your projects, that's excellent.

When you are learning the configuration chapters, have the system ready (maybe DEMO system) so that you can follow the instructions and get the correct results.

Download the color images

We also provide a PDF file that has color images of the screenshots/diagrams used in this book. You can download it here: https://www.packtpub.com/sites/default/files/downloads/MasteringSAPS4HANA1709StrategiesforImplementationandMigration_ColorImages.pdf.

Conventions used

There are a number of text conventions used throughout this book.

CodeInText: Indicates code words in text, database table names, folder names, filenames, file extensions, pathnames, dummy URLs, user input, and Twitter handles. Here is an example: "The tables are merged to the ACDOCA table with the header table BKPF. FAGLFLEXA and some other New GL tables are now obsolete."

Bold: Indicates a new term, an important word, or words that you see onscreen. For example, words in menus or dialog boxes appear in the text like this. Here is an example: "SPRO | Financial Supply Chain Management | Cash and Liquidity Management | Bank Account Management | Basic Settings."

Warnings or important notes appear like this.
Tips and tricks appear like this.

Get in touch

Feedback from our readers is always welcome.

General feedback: Email [email protected] and mention the book title in the subject of your message. If you have questions about any aspect of this book, please email us at [email protected].

Errata: Although we have taken every care to ensure the accuracy of our content, mistakes do happen. If you have found a mistake in this book, we would be grateful if you would report this to us. Please visit www.packtpub.com/submit-errata, selecting your book, clicking on the Errata Submission Form link, and entering the details.

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An Overview of SAP HANA, S/4HANA, and Migration

The purpose of this chapter is to understand SAP HANA, which forms the base of learning for SAP S/4HANA and will be discussed in subsequent chapters. SAP HANA is a database management system (DBMS) based on in-memory technology. In SAP HANA, memory is available to such an extent that storing data is not a constraint. This makes it different from other available databases that have memory constraints, even though they have potential in terms of hardware. SAP HANA optimizes memory access between cache and the primary/main memory. In the present age, the volume of data is a big challenge for all organizations, specifically finance organizations, as they have to store the data for longer time due to audit requirements and, of course, for planning and forecasting purposes.

The basic concept of SAP HANA includes the following areas:

In-memory data

Optimization of in-memory data

Delta storage:

Technical requirements

For this chapter, the following are required:

SAP HANA Database 2.0

SAP ECC system with non-SAP database

SAP SLT system

Running RFC connections between systems

In-memory data – a core to SAP HANA

If you have noticed the trend of computers and their core configuration, it should be evident that there has been a drastic change over a period of time, let's say, in the last decade. Prices have been moving around with a slight dip, and memory capacity has increased drastically. From an enterprise server perspective, the capacity today is in terabytes with a single enterprise-class server.

The hard disks are cheap and affordable and are at the lowest space in the consequential structure, but the key to this entire process of in-memory data modeling is performance. In the following figure, if we move from top to bottom, it shows a higher latency with lower price, and if we move vice versa, it depicts a higher performance:

The main memory is normally directly accessible, and if we compare its access to that of the hard disk, the speed is 100,000 times faster.

All traditional database management systems use the disk as a primary storage and the main memory is used as just a buffer.

Optimization of in-memory data

SAP HANA stores data in a columnar format, which results in effective compression and reduction in overall data size. Also, this resolves the problem of data flow between the main memory and cache.

Data storage model

Normally, the data storage in databases is in a table format. A table is a data structure in which the information is organized. It can store data in rows and columns and can be used to display data in a structured format. Databases normally comprise several tables, and each table has a specific purpose.

The options available are as follows:

Row-based layout

: Stores data elements in a row

Columnar layout

: Stores data elements in a columnar format

Let's take a look at a very simple example to understand this concept:

The preceding table is a simple example of data. Now, we will check out what it looks like in a row-based layout:

Also, this is what it looks like in a columnar data format:

Both methods of storage have their own pros and cons, and SAP HANA supports both the models. However, performance is enhanced when the columnar model is used, as it enables an effective projection by accessing only relevant columns, which reduces the number of accesses to memory. Also, it allows for an effective compression, especially when column sorting is done.

Data compression

The technique that is used to reduce the count of bits for data in memory is known as data compression. In this technique, the overall memory is reduced and, hence, the cost is reduced, and all of the data reading is done on the compressed set. Many compression methods, such as run-length encoding, cannot be applied in the row-based layout. This is a very technical topic, so we will not go into too much detail here, but, for now, it is important that we understand the storage scenarios and the meaning of compression.

Delta storage

Normally, data insertion to compressed data is really slow. This problem is solved with SAP HANA, as it brings the concept of delta storage with it. In this structure, the storage of a columnar table includes the main storage and delta storage. Any write operation, such as insert, update, or delete, is done in delta storage, which is, again, a columnar storage, and any addition is appended to the end of the structure:

This is what the architecture looks like; it simplifies the database structure and results in faster processing:

Data aging

In today's world, we are just playing with data. Businesses' data volumes are immense, and their data is confidential and important in terms of business continuity as well as growth and compliances. For example, companies have to detail their financial data for 7 years to 10 years due to IRS audits.

The size of the data is growing day by day, and much effort, as well as money, is spent on the maintenance of that data.

This is what the data view looks like:

For sure, we need the actual and latest data to run the business, which is about 10%, and, from time to time, we might need access to 30% of the data. However, what about the remaining 60% data? Have you accessed the documents of the projects that you worked on 7 years ago? Do you frequently see photos of your holidays that you had taken around 8-10 years ago? The typical answer is no.

The same applies to organizations; they don't really access that 60% of data. So, what are we doing with that data? What is our strategy? In rare cases, we will need to access the old data as and when we are showing the order history to a customer or when we are running comparisons over decades, or during an audit.

In the new concept of data aging, the data that we access regularly, that is, the latest actual data, is known as hot and the rest, the 60%, is known as cold. The temperature of the data decides the strategy to store the data. The goal of aging is to reduce the main memory footprint and to speed up database queries by only keeping operationally relevant (hot) data in the main memory. In SAP HANA, aging is different from archiving in the sense that cold data is still kept within the SAP HANA database and remains accessible via SQL in the very same table as the hot data.

Regular daily queries are on hot data, and the cold data is generally partitioned, as shown in the following figure:

The configuration has to be defined once in the setup phase, and, using this solution, data can be restructured by a background task and automatically pushed out of memory if needed.

As an example of partitioning, all entries in the following table with entries 00000000 are in hot memory:

Table name

Partition ID

Range

FAGLFLEXT

1

00000000

FAGLFLEXT

2

00010101 - 20120101

FAGLFLEXT

3

20120101 - 20130101

FAGLFLEXT

4

20130101 - 20140101

FAGLFLEXT

5

20140101 - 20150101

SAP HANA Live

To gain the market and advantage in any competition, it is important for the organization to have analytics of their own data. Every decision is driven based on data, but that decision can be more efficient if the analytics of the data is as accurate as possible. With the emergence of technology, there has been a shift in the data models for decision making. Old data with multiple accesses has been replaced by new real-time data with access to a single source of truth. Complex systems and data can have a multilayered structure, including OLAP and OTLP systems. Before we move ahead, let's understand the following concepts:

OLAP

: Online analytic processing

OLTP

: Online transactional processing

In traditional databases, transaction processing is completely separate from analytics processing. The key factor to this is the database design of both these systems. However, it results in a complex and redundant data processing. You process the transaction now and, for analytics, the same will be available after a day, which results in a lag for the finance department, especially at the time of closing.

SAP S/4HANA is powered by SAP HANA, which combines both OLTP and OLAP processing. Now, the transactional data does not need to be moved to another system for analytics, and they run in the same tables, which results in efficiency and avoids redundancy.

SAP HANA Live is an out-of-the-box, preconfigured, and extensible data model. It is an architectural framework that can be used for analytical reporting on the SAP HANA database. It enables businesses to create analytics suites based on a semantic data model that enriches the underlying SAP ERP structures.

This data model has the following attributes:

Optimized for operational reporting

Eliminates data duplication

Ready to be consumed

Extensible

Easy to consume, with true business-like semantics

This is what it looks like with and without SAP HANA Live:

The SAP HANA Live architecture is shown in the following figure:

Introduction to SAP S/4HANA

The focus of this chapter will be to understand the overview of SAP S/4HANA—what is S/4HANA, what is so interesting in S/4HANA that customers are investing, what benefits does it provide, and how has SAP planned to make it different from its own ERP? Let's begin deep diving to understand the concept.

Understanding SAP S/4HANA