Finance leaders are engaging in next-generation technology to deliver insights to their organizations, boost communication, and automate fundamental procedures. This increases their impact on strategic decisions much beyond their financial job. This is where SAP Simple Finance or S/4 Finance comes into effect. It is a unique platform for meeting the demands of today’s business environment. Therefore, to know more about this platform, you can refer to this article till the conclusion or enroll in the SAP Simple Finance Online Certification Training for a more advanced approach.
SAP Simple Finance: Meaning
SAP Simple or S/4HANA Finance is the company’s key financial solution and the replacement for SAP ERP Financials. However, it was first introduced in 2014 and features various financial process enhancements, such as establishing a single source of finance truth, real-time financial closure, and predictive accounting. Moreover, this solution helps operate on the SAP HANA platform and uses the SAP Fiori user interface.
Benefits of SAP Simple Finance
List down below are the benefits of SAP Simple Finance:
Customer Lead Time
SAP S/4HANA Finance reduces client lead time through speedier payment processes, accruals posting, and loan appraisals. However, a shorter interaction duration with clients helps to improve customer relations. Finally, SAP S/4 HANA Finance provides a scalable framework for large amounts of data.
SAP S/4HANA Finance supports a high-volume billing procedure in order to fulfill promotional and peak season requirements.
Days Sales Outstanding
Companies that use SAP Simple Finance can help to reduce their days’ sales outstanding (DSO).
Invoice Processing Time
Due to the design of SAP S/4HANA, you may reduce the time spent on invoice processing.
Because of the speed and ease of use of SAP S/4HANA, businesses may minimize the time it takes to bring new goods and services to market.
It is easier to establish a forecast that leads to production matching sales demand since SAP S/4HANA links processes straight from the sales plan through subcontracting execution via material needs planning.
Reduced Revenue Leakage
Compared to the industry norms, SAP Simple finance reduces revenue loss by more than 50%.
Processing of Transactions
As previously stated, SAP S/4HANA can be scaled to handle millions of orders. It can do it with high precision, lowering the expenses associated with errors.
In accordance with the best practices, you can simplify the accounting, budget planning, reporting, and execution procedures using the SAP Simple Finance platform. However, employees no longer need to spend as much time on manual efforts in accounting, finance, and indirect procurement because of task automation.
Live reporting with enhanced audits and controls implies that there is a significant decrease in business risk and fraud-prone regions. However, consistent business procedures and financial standards across all sites globally decrease risk and operational complexity.
Efficiency in Reporting
Because SAP S/4HANA is a unified landscape, leadership can access correct information and consolidated reports in real-time regardless of where subsidiaries are situated.
Bad Credit Written Off
SAP S/4HANA results in a significant reduction in uncollectible accounts receivable.
Reduced number of days to close monthly books
SAP S/4HANA Finance reduces the number of procedures necessary to reach a monthly financial closure, allowing for faster report generation.
Direct Material Spend
SAP S/4HANA gives improved visibility into procurement processes, allowing for lower rates and more efficient spending.
Total Cost of Ownership is lower
S/4HANA (SAP) decreases the complexity of the technological environment by reducing hardware, maintenance, and software licenses.
User Satisfaction in Business
Happy employees are more productive. However, SAP S/4HANA’s primary selling point is its simplified procedures and better user experience with SAP Fiori in all functional areas.
Data Processing Performance
SAP S/4HANA helps to reduce the backup time from hours to minutes.
SAP S/4HANA runs on SAP HANA and decreases data size by 90% for quicker reporting and process efficiency.
Days to Finish Books
When it comes to financial closure, SAP S/4HANA Finance speeds up the process by three to four times.
Hopefully, you find this article informative. We have compiled the benefits of SAP Simple Finance, which simplifies business requirements. By looking at these benefits, if you want to become an expert in this domain and start working as a professional, we suggest you enroll in the SAP Finance Training.