Key Considerations for Moving General Ledger to SAP S/4HANA with ERPfixers

⇨ SAP users running classic General Ledger are asking if their system is configured in a way that allows them to upgrade to SAP S/4HANA.

⇨ Companies must decide whether to use a greenfield or brownfield approach.

⇨ Additionally, companies should review their current data and determine what needs to be archived.

As organizations that use SAP migrate from ECC to SAP S/4HANA, many SAP users are concerned about any changes or interruptions in their day-to-day working life. This is especially important for those financial professionals who often work with the General Ledger within their SAP systems.

General Ledger is one of the most significant aspects of finance in SAP S/4HANA. In the SAP S/4HANA Finance and Central Finance: State of the Market 2023 research report, 23% of respondents listed core accounting (general ledger) as a significant pain point across finance. Further, 33% of respondents listed GL as an area of planned future investment.

Transitioning to the New General Ledger

With all this attention on General Ledger, many SAP users running classic General Ledger are asking if their system is configured in a way that allows them to upgrade to SAP S/4HANA, and what changes they need to make ahead of that conversion. To help answer some of these critical questions, finance expert Dr. Ravi Surya at ERPfixers shared some key insights on this topic in a recent blog post.

Essentially, Dr. Surya indicates that SAP ECC Customers running the classic version of General Ledger have two options: they can either convert their existing SAP ECC systems directly into SAP S/4HANA or they can migrate from classic to the new General Ledger before converting their entire system to SAP S/4HANA.

Dr. Surya says that organizations with an ECC system that is in good condition often opt for a brownfield approach. Those who need to build out the system with relevant processes and code tend to select a greenfield approach, even though it tends to take longer and costs more.

Key Points

Throughout the process of moving classic GL to SAP S/4HANA, companies should remember that this is more than a technical migration – it is a system conversion.

“If we don’t prepare the system perfectly before conversion, then errors cannot be adjusted after system conversion. Customers may have to live with errors or fixing may be very costly,” wrote Dr. Surya.

That being said, companies should be prepared for changes that come with a transition. Additionally, companies should review their current data and determine what needs to be archived. Companies can save significant time and financial investment by archiving data ahead of any conversions.

Partnership

It is important to note that no conversion to SAP S/4HANA is a one-size-fits-all proposition. Each business will have its own unique challenges and requirements that must be addressed throughout the conversion process. These may be due to industry requirements and regulations, company-specific opportunities, and geographic realities.

Successful organizations tend to rely on experienced partners like ERPfixers. Working with SAP experts can help companies lay out a transition roadmap that will help anticipate any unforeseen issues and address concerns throughout the move to SAP S/4HANA.