According to global research analysts in the likes of Gartner and Forbes, though capital markets aren’t fully integrated with the cloud, this situation is set to change in the coming years. There is an unprecedented change sweeping across the entire financial industry. Competition is just a mouse click away and margins have diminished. Companies are increasingly looking for streamlined financial processes to meet the demands of complex regulations and obtain real time financial insights. This marks the entry of SAP Simple Finance.
Migration from the existing system to Simple finance can be done in two ways, namely:
1. Using Simple Finance as central ledger.
2. Moving from business suite to financial add on.
Simple Finance as Central Ledger
Large organizations usually maintain more than a single ERP. This system could be the result of multiple geographical locations, history of mergers and acquisitions or even for legal requirements. Though business operations are performed and maintained locally, the inferences and relevant data, specific to each function, are collated and maintained in a central location on the SAP HANA platform. Central transaction execution, shared use of data between transactions, planning & consolidation, reporting and process optimization with the central journal are functionalities leveraged in this system.
However, this is a much decelerated process and does not include a provision for real time insights. In this system, there is also a chance that the centralised and decentralised data don’t correlate.
From business suite to financial add on
This system requires the organization to have an already existing single ERP ecosystem or at least an instance of an ERP. This traditional SAP ERP suite can be migrated to simple finance once the underlying database is transferred to the HANA platform, and subsequently the financial add on will be installed.
Migration of the existing database to SAP HANA can be done through sundry paths. While new installations and classic migrations require employing multiple steps which include transforming the existing solution, system upgradation followed by migration from traditional database to SAP HANA, the ONE STEP upgrade and migrate with DMO (Database Migration Option) of SUM ensures upgrade and migration in one step, one process, one tool, one documentation and one down time.
Once a stand is taken on the database migration, the financial add on will be installed. This ensures the reconfiguration of the operating concern of the customer by the functional team. Training the users for new transaction codes marks the culmination of the entire process.