SAP S/4HANA is an intelligent ERP software used in manufacturing and logistics industries to run real-time mission-critical operations from anywhere. It has a comprehensive suite of functionalities to address supply chain, human resources, procurement, and finance requirements.

SAP S/4HANA was introduced in 2015 and has gained more than 20,000 subscribers as of 2023.

Who It’s For

SAP S/4HANA is ideal for midsize (50-500 employees) and enterprise-level (500-50,000 employees) organizations that need scaling and advanced data processing and analytics capabilities.

The system can be deployed in the cloud or on-premise, depending on the objectives of a business.

Key Features

1. Subscription- and consumption-based invoicing

The system allows you to combine rated events and invoices from many vendors into one unified invoice, helping to improve cash flow reporting and reducing the possibility of disputes. In addition, you can instantly settle any posted receivables with real-time payments.

2. Contract accounts receivable and payable

Automating these processes and using a unified sub-ledger speeds up AR and AP while managing secure payment services more efficiently. In addition, compliance, reconciliation, accounting, and periodic closing processes can all be improved using the integrated SAP S/4HANA Finance cloud module.

3. Real-time integration

SAP S/4HANA facilitates unprecedented integration with other SAP components to access key KPIs and cards. This allows users to monitor and analyze financial data on the fly accurately. The SAP Fiori apps allow businesses to make timely and data-driven decisions, giving them the flexibility to adapt to prevailing market conditions.

4. Multicurrency support

For businesses that operate across borders and in different currencies, SAP S/4HANA's General Ledger accounting system helps to manage and report financial accounts accurately in different currencies. Real-time currency conversion also assists businesses in making the most of global markets and protecting themselves from currency-related shocks.

Pros

• Gives managers a comprehensive view of all departments and processes from a central hub
• The ERP system automatically updates its database as processes and transactions are completed, saving time and increasing data accuracy.
• SAP S/4HANA’s cloud infrastructure saves money in the short-to-medium term since it doesn’t need costly on-premise data warehouses or dedicated IT personnel to maintain the servers.
• The platform is easy to operate and has an intuitive user interface. 

Cons

• There are plenty of costs for integrations like Salesforce and other systems
• Unlike most ERPs like Oracle E-Business Suite and Salesforce, which are standalone, this system heavily relies on custom integrations created by implementation partners. 
• Reviewers have also complained about the quality of support, claiming that it takes a long to receive help on certain issues. 

Pricing Plans

SAP S/4HANA lacks a standardized public costing model. Many factors go into determining the total cost of ownership, including the company size, modules needed, the number of users, and the deployment method. Once again, remember that the ERP software requires the assistance of paid SAP implementation partners or experienced consultants to help with customization, user training, data migration, and testing. 

Conclusion

We believe that SAP S/4HANA’s real-time data analytics, industry-specific features, and AI capabilities are really useful. We found the ERP a great fit for multinationals needing supply chain optimization and compliance. However, this advanced ERP software is not ideal for smaller companies because it is too cost-prohibitive and technical for their requirements.