SAP system is the system used by a lot of enterprises in the current business process. In the process of using the SAP system, it is indispensable for the modules and the SAP S/4HANA migration process to serve the business process. So what is the SAP Module, how do the modules take part in the SAP S/4HANA migration? To clarify this problem, BAP will introduce the SAP module and related aspects through the article below!
1. What is SAP module?
There are different groups of modules in the SAP system. Source: https://outvio.com/
SAP modules are understood as functional groups in SAP for each business area, such as accounting or logistics. Here are some specific SAP modules:
- Financial Accounting (FI)
- Management Accounting (CO)
- Sales Manager (SD)
- Purchasing Management and Inventory Management MM
- Production planning and control (PP)
- Human resource management
Beside the above SAP modules, when doing business, groups of financial institutions are responsible for important business activities in the enterprise such as financial accounting and are divided into the following small modules:
- Ledger FI – GL
- Manage Receivables FI -AR
- Debt Management FI – AP
- Fixed Asset Accounting FI – AA
SAP modules are closely related and work together. For instance:
Purchased vouchers in the MM module are processed and connected to the FI – AP module debit note, and the sales voucher is recorded as sales in the SD module and linked simultaneously to the FI – AR module debit note.
SAP ERP is an integrated system of business systems in the enterprise, so that it is extremely reasonable for SAP modules to link together, which helps enterprises manage business activities and make accounting better
2. What is SAP Migration?
In a SAP environment, SAP S/4HANA migration refers to migrating SAP modules used in the SAP environment. On the other hand, SAP migration also involves module migration if you are using the third party system.
The types of data to be migrated will be classified into 3 main categories as follows:
- Custom data: Parameter setting data in SAP system and contains many other setting information.
- Master Data: Basic data such as basic information about suppliers, customers, and item names.
- Transaction data: Data collected in daily activities such as invoices, accounting documents.
3. SAP S/4HANA migration types
There are 3 main types of SAP migrations, each with its own pros and cons. Source: https://erproof.com/
SAP migrations fall into three main kinds:
- System switching.
- New implementation.
- Selective SAP migration (a combination of both types of migration above).
3.1. SAP 4/HANA migration type system transformation
Advantage:
- To be input data for the new functions of S/4HANA, all data after the introduction can be used.
- Additional add-ons can be added and used continuously if adjusted after the system transition.
- Availability of operating mechanisms, business processes, and how operations are being carried out. Thus, this type of SAP migration saves sales costs, time as well as burden for the user department.
- Most features can be used without affecting the current environment. However, the use of the new features is quite limited.
- You can continue to use the existing SAP GUI or use the new GUI adopted by S/4HANA.
Disadvantage:
- New utilities can be added but must be adapted to S/4HANA.
- Most features of SAP S/4HANA can be migrated, but all of them are not allowed.
- Be able to run the data according to the actual situation and there is no standardization.
- Limited opportunity to take advantage of new SAP S/4HANA features because it is based on real data.
- ECC-like business processes and functions.
3.2. SAP S/4HANA migration new deployment type
Advantage:
- Easily implement a new field approach with SAP S/4HANA.
- Enable re-engineering and simplification and improvement of the migration execution process.
- Implement new pre-installed business processes on a best practice-based platform.
- Easily implement smart technology digital transformations.
Disadvantage:
- All features need to be reinstalled on the system.
- Pause operations and rebuild business processes.
- Need to create experiments and create reports from scratch.
- Implementation costs are high, time consuming and contain many risks.
3.3. Selective SAP S/4HANA Migration
Selective SAP S/4HANA migration goes through many different processes. Source: https://www.pasona.co.jp/
Advantage:
- All transaction data, selected data, master data and directories in use can be migrated.
- Full data migration or partial migration is possible.
- Be able to transfer data from many other systems or transfer data to third-party systems based on S/4HANA.
- Create SAP S/4HANA migration system quickly, save time.
- Easily extend functionality, migrate data, convert to S/4HANA in another project.
- Easily optimize or replace S/4HANA with new functions based on old business processes.
- Save time on testing and project execution.
- Save production downtime with Selective + Downtime Reduction.
Disadvantage:
- Many enterprises and employees use this type of migration. Only four businesses in Germany conduct selective data migrations and only five provide the service worldwide.
4. Relationship with modules during SAP S/4HANA migration
The modules in the SAP migration have a close relationship with each other. Source: https://infoasia.com.vn/
The process of migrating SAP from a third system is done by 5 steps as follows:
Step 1: Develop a migration plan
Step 2: List the data
Step 3: Clean up data
Step 4: Conduct data forwarding
Step 5: Migrate the data to the new system.
The relationship between the module and the SAP S/4HANA migration process is considered through the following aspects:
- In terms of data:
During SAP data implementation, not all modules are used, but usually only certain SAP modules are used. This is due to time, cost and other factors.
- SAP migration time affects the FI module:
Aside from this, the reason can also come from FI financial accounting, with the data being moved either at the beginning or during the accounting period. Module FI is also related to SAP migration time as it is important data in tax payment in the current or previous financial year. Therefore, SAP migration time is also an important factor.
As each module is linked within SAP, the module migration process is usually a whole system migration rather than a specific module migration. So the SAP migration process often takes a lot of time and it is necessary to migrate the entire module to the new system to avoid negatively affecting the operation of the SAP module.
5. Conclude
Through the above article, you must also understand the process of modules involved in SAP migration and the complexity of SAP S/4HANA migration technology.
Nowadays, BAP Software is one of the few SAP service providers. If you are considering applying SAP technology to your business, please contact BAP immediately via email service@bap.jp for advice and support.
BAP not only has a team of highly – specialized IT engineers but also has many years of experience in the field of SAP services with office systems spanning many countries and regions around the world. We are always ready to advise and support you anytime, anywhere.
