Enhancing Financial Efficiency – Upgrading SAP ECC System to SAP S/4HANA With AutoCash Feature
Introduction
Our client, a billion-dollar company renowned for its audit and finance consulting services to the world’s famous brands, faced significant transactions daily. The client wants a solution that automates the cash application process and reduces errors such as payment mismatches and even delayed payments.
The client was using SAP ECC systems for their Account Receivable/Treasury Management (AR/TM) transactions which lacked features to achieve the client’s requirements.
Our SAP ABAP experts assisted the client by upgrading their existing SAP systems and achieving the desired output.
The Objective
The current SAP ECC system needs to have the necessary functionality to automate the payment posting process, leading to frequent manual errors. LMTEQ’s SAP ABAP experts aim to upgrade the system to SAP S/4HANA to address this issue. This upgrade is essential because SAP S/4HANA offers advanced matching algorithms and leverages in-memory computing, making it ideal for automating payment posting. Our team begins by thoroughly analyzing the existing system architecture to ensure a seamless transition. During the upgrade process, we prioritize minimizing downtime and ensuring the new features, such as AutoCash match (ACM), function as intended. This meticulous approach guarantees the successful implementation of SAP S/4HANA, enhancing efficiency and reducing errors in payment posting.
Challenges Involved in Upgrading SAP ECC Systems
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Existing Architecture SAP ECC Monolithic Architecture
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AutoCash Match for Customer Names in Finance Modules
- Characteristics – The existing SAP ECC operates on a monolithic architecture,
where all components (modules like FI, CO, SD, MM, etc.) are tightly integrated into a single application. - Database –The client uses traditional databases such as Oracle, Microsoft SQL Server, and IBM DB2
for different areas of operations. - Deployment – The systems are deployed on-premises with extensive customization and integration with other enterprise systems.
The team faced significant challenges in scaling the existing system to accommodate large transaction volumes or user bases without bottlenecking the performance.
On top of that, it was not easier to maintain extensive custom modules due to the longer downtime.
- Complex Matching Criteria – Customer names can vary in formatting, spelling,
and abbreviations, making it difficult to achieve accurate autocash matching. - Large Volume of Transactions – Managing and matching a high volume of transactions daily.
- Inconsistencies in Data – Handling inconsistencies and errors in customer name data that can affect the matching process.
The next pain point for the team involves managing complex matching patterns. The sheer volume of transactions is immense,
and the varying formats of each customer’s name further complicate accurate payment processing.
Overcoming Challenges
Retrofit Approach With N+1 Architecture Ideology
Since the existing system is still in operation, our team decided to utilize the retrofit approach that enables us to apply the necessary updates without completely overhauling them. With this approach, we were able to incrementally perform updates and ensure the continuity and stability of the systems. Our SAP experts then update the architecture using the N+1 approach. In this strategy, the current architecture, labeled as the “N” version, coexists seamlessly with the new “N+1” version. This setup allows for smoother transitions and thorough testing before fully switching to the new version. By operating both versions in parallel, we identify and address any issues early on and make sure the upgrade is efficient.
How We Implement SAP S/4HANA Upgrade
Our team focuses on three aspects of the implementation, which are as follows:
Phased Rollout
Implementing SAP S/4HANA in phases across different business units and geographical locations ranging from Asia-Pacific to the Middle East.
Parallel Operation
Operating both SAP ECC and SAP S/4HANA concurrently for a period, to make sure the critical business functions can continue without interruption.
Data Synchronization
Ensuring that data remains consistent and synchronized between the legacy and new systems during the transition and the post-migration phase.
Integration with AutoCash Matching and AR/TM Functions
Our team handled the integration with AutoCash matching by leveraging SAP ABAP for custom codes, user interfaces, and APIs for different systems and modules.
The Outcome
With the new upgrade system with AutoCash match, the client saw a higher success rate with over 90% accuracy in matching payments to invoices, significantly reducing errors. Also, since our team leveraged ABAP language for the upgrade, we integrated ABAP programs with the S/4HANA systems for real-time analytics and faster report generation. This enables proactive decision-making.
Our team assisted our client in improving their user experience during the upgrade process by utilizing ABAP and SAP Fiori/UI5.
Now, the team has successfully deployed the upgrade for 70% of all client companies globally.
Why Choose LMTEQ for SAP ABAP Services
- Official SAP Partners.
- Certified SAP Experts.
- Talent Pool.
- In-depth knowledge of the latest SAP advancement.
- AI-based custom solutions.
- Process Automation.
- Round-the-clock support (based on time zone)