S4 HANA vs HANA. Simple Finance vs S/4HANA Finance. – What’s the Difference?

Last Updated on March 17, 2022 by Pradeep

S4 HANA Vs HANA – The Debate of Terms

There is much confusion among SAP beginners about the difference between SAP S4 HANA and SAP HANA. If you too are part of this S4 HANA vs HANA disputation, then read on. This article tells you the exact difference between the two.

The key difference between SAP S4 HANA vs HANA

SAP HANA is an In-Memory Database that stores and provides data on the fly. It is designed from the idea that memory is available in large quantities to keep all business data.

Whereas the SAP S4 HANA is a business suit that includes complete Finance and Logistics business functions. A Business suit is the 4th Generation ERP Package rendered by SAP.

Why People use them as synonyms?

Although there is this difference, people usually use these two terms HANA and S4 HANA as synonyms as there have similar words.

What other terms are in the Battle of correct usage?

Its SAP S/4HANA Finance Vs. SAP Simple Finance!

Similarly, like the SAP S4 HANA vs HANA debate, many of the beginners are unclear about what’s the difference between Simple Finance and SAP S4 HANA Finance.

Here are a few more terms that people use for the same subject SAP S/4HANA Finance. These are:-

• SAP HANA Finance
• S4 HANA Finance
• SAP Simple Finance
• SAP S4hana Finance
• FICO on S4 HANA
• SAP S4 hana simple finance
• SAP S4 HANA Finance

At present, all these above terms represent only one subject i.e., of which the correct form is SAP S/4HANA Finance.

Even today, there are many people who are writing the term ‘SAP Simple Finance’ and seeing results on ‘SAP S/4HANA Finance‘.

Though you can use any of them for your searches, there is a difference between SAP S4 HANA and Simple finance. For that reason, SAP updated its Financial accounting name from Simple Finance to S4 HANA Finance.

Lets us understand this in detail.

SAP S4 HANA Finance Vs. Simple Finance

SAP S/4HANA Finance covers all the business solutions related to finance which includes Financial Accounting, Receivable Management, Management Accounting, Cash Management, and Treasury.

On the other hand, Simple Finance is the first term that people started to use for SAP Finance. It achieved great success. So much so that people started using it as a generic trademark for all further SAP Finance versions.

The key difference between SAP Simple Finance and SAP S4HANA Finance

The answer to this question is, SAP Simple Finance carries some add-on features on EHP 7 whereas SAP S4 HANA is a complete Finance Business solution.

Why do People still use the term Simple Finance while they are looking for SAP S4HANA Finance only?

SAP Simple Finance is part of SAP ERP Financials which was highly marketed by SAP for a while, for which it gained much popularity among its industry and users. Though SAP S/4HANA Finance has already replaced Simple Finance, However, due to its popularity, people still use this term.

Also Read: SAP FICO vs S4 HANA Finance

What is SAP S4 HANA Finance?

After the successful execution of SAP Simple Finance, SAP introduced S4 HANA Business Suit, which not only includes Finance functions but also the Logistics functions on the HANA platform. SAP S4 HANA Finance is one Business application for Finance. As I mentioned above, it includes SAP Accounting, SAP Treasury & Cash Management, and also SAP BPC.

Key Features of SAP S4 HANA Finance

1. New GL concept
2. Extension Ledger
3. Cost Element included in Ledger Account
4. Secondary Cost Element
5. Business Partner Concept
6. Receivable Management (Credit Management, Collection & Dispute Management)
7. Cash Management

Related: SAP S/4HANA Finance Architecture

What is SAP Simple Finance?

Simple Finance is the first Business application that SAP company developed for financial functions on the HANA Platform. This was the pilot product from SAP on the HANA platform for Finance Business solutions. We also know it as Add On function on EHP 7. It includes multiple functions both for Finance & Management Accounting.

Key Features

1. SAP Simple Finance was designed to remove issues like transactional (OLTP) and analytical (OLAP) and planning system to provide instant insights and calculation on- the -fly.
2. Then we have Universal Journal that SAP introduced as the ‘Principle of One’ with ACDOCA table. It can remove multiple Index, Aggregate, Total Tables related to Finance & Controlling Module.
3. Finance Risk Management ID is again an important feature.
4. Another, the Risk and Compliance Management – A key feature of Simple Finance.
5. The earlier SAP releases like 1503, 1506 support SAP Simple Finance Module.

Different versions of SAP Finance

Since the launch of the HANA technology, we have had many versions till date. The first three versions were observed under Simple Finance while the later three launched under S/4.

1. 1503- SAP Simple Finance 1503
2. 1506- SAP Simple Finance 1506
3. 1511- SAP Simple Finance 1511
4. 1610- SAP S/4HANA Finance 1610
5. 1709- SAP S/4HANA Finance 1709
6. 1809- SAP S/4HANA Finance 1809
7. 1909- SAP S4 HANA Finance 1909
8. 2020- SAP S/4HANA Finance 2020

Learn more about: Journey of SAP and & its History of updates

I hope you are clear now on:-

SAP S4 HANA vs HANA

and

SAP S4 HANA Finance vs Simple Finance

You should also understand that why you should use the correct term i.e. SAP S/4HANA Finance while you talk about it. Try using the other terms less.

Do you aspire to become an SAP S/4HANA Finance Consultant?

If you want to become a S/4HANA Finance consultant then you should learn the latest SAP HANA Finance sub-modules and applications because most companies like to hire consultants who have updated with the latest applications and launches.

Get the training from an industry expert who can help you with the configuration and implementation process.

SAP S/4HANA Finance is one of the most famous SAP S/4HANA Functional series applications. If you are from a Finance or accounting background, making SAP FI your career goal is a good decision.