SAP S/4HANA 1705 – Above & beyond

10 August 2017

Julien Delvat

Julien Delvat

SAP S/4HANA Consultant

If you missed SAPPHIRE NOW earlier this year, let me summarize it for you. Cloud is the future of ERP.  In this domain, SAP S/4HANA Cloud 1705 is way ahead of the game. Above and beyond!

The cloud above the clouds

Let’s face it, there’s more than one cloud in the IT sky. The SAP S/4HANA team has now enabled bridges between the cloud with native integration to Concur (Travel Expenses), SuccessFactors (Human Capital Management), Hybris (Commerce), Ariba (Procurement), and Fieldglass (Contingent Workforce Management). In addition, the Public Cloud can now also extend to SAP Analytics Cloud (SAC - Planning & Reporting), SAP Integrated Business Planning (IBP - Planning), SAP Extended Warehouse Management (EWM), Central Finance [1], SAP Business Planning and Consolidation (BPC) and SAP Leonardo (more below).


More cloud flavors

One of the key announcements was also a simplification of the licensing. No more “Cloud Edition for Professional Services” or “Cloud Edition for Enterprise Management”. When organizations subscribe to the SaaS application, they will get access to the full S/4HANA Cloud, including new innovations. 

Some of the key features of this new edition release include:

  • SAP CoPilot

A digital assistant for the enterprise, CoPilot enables users to get their job done faster [2].

  • Predictive Analytics

Embedded in applications like purchasing, algorithms analyze historical data to make recommendations to improve purchasing contract renegotiations.

  • Credit Management

This extension helps prevent risks of losses on receivables by enabling users to make credit decisions based on internal and external credit risk information.

  • Statutory Financial Consolidation

No need to use external applications for financial consolidation. Organizations with a legal financial group structure will be able to integrate data from S/4HANA Cloud and non-SAP S/4HANA subsidiaries into an IFRS compliant process to reduce audit costs and shorten the financial close cycle.

  • Manufacturing

After participating in design thinking workshops for S/4HANA Cloud for Manufacturing, it’s nice to see this long-awaited set of capabilities finally come to life. Stock transfers, warehouse monitoring, RFQ integration, distributed manufacturing, output management, and mass maintenance for produces are now available for manufacturing organizations.

  • Procurement

Unplanned services and purchase requisition notifications are now available for the procurement specialists.

  • Analytics

Better analytics are now available thanks to improved report designers, more CDS views in the virtual data model, enablement of Custom CDS Views, Smart Business applications, or the Analysis Path Framework.

Beyond with SAP Leonardo

Also announced at SAPPHIRE NOW, SAP Leonardo is the new umbrella for advanced capabilities like predictive analytics, machine learning, Internet of things (IoT) or blockchain. The first scenarios were showcased with SAP S/4HANA Cloud 1705. Notice below how effortless these new features will appear to the user.

  • Invoice Matching

Incomplete information, grouping of payments, incorrect amounts, etc. All these factors contribute to making bank reconciliation a tedious task, requiring analysts to line up payments from customers to corresponding invoices. Over the years, software has automated this process with up to 50% success. However, with machine learning, this ratio has demonstrated up to 95% reconciliation.

  • Contract Consumption

The Fiori application “Quantity Contract Consumption” leverages customer data and embedded Predictive algorithms to better estimate the consumption of a contract in the upcoming days or weeks.

  • Delays for Stock in Transfer

The Fiori application “Materials Overdue – Stock in Transit” helps logistics specialists focus on the few shipments that are likely to incur delays.

  • Implausible Meter Readings in Utilities

Meter readings are now mostly automated. Previous rules-based formulas were still identifying too many false positives. The new application shows a plausibility score to make the validation process more efficient.

In Short

With S/4HANA Cloud 1705, SAP has released a new level of cloud applications. Customers of this SaaS suite will benefit from more native integrations, enhancement features in all lines of business, and next-generation features supported by SAP Leonardo. Overall, this new edition goes above and beyond!  

[1] Your organisation is unique, but is your cloud ERP strategy?
[2] SAP CoPilot - Hello Computer

About the author

Julien Delvat

SAP S/4HANA Consultant

With over 15 years’ experience of developing cost management applications at SAP Labs France, coupled with significant experience of architecting, designing and implementing these systems for clients across the globe and industries, Julien is perfectly placed to offer Bluefin’s customers unrivalled expertise in the colliding worlds of finance and technology. It’s not with good reason he’s known as a ‘Costing Geek’!

When it comes to collaborating with clients, Julien likes to get under an organisation’s skin. He wants to know what makes a company tick, what their priorities are and what the reality is on the ground. Doing this assists him to build information systems that reflect their true business needs.

Julien’s contributions to the SAP Financials community have been recognized through publications in professional blogs and journals like and SAP Expert, as well as multiple speaking and panel opportunities at conferences like SAP Financials, SAP Controlling, Sapphire / ASUG, and SAP TechEd. He is most passionate about his roles as an ASUG volunteer for the Financials community and as an SAP Mentor, working as a trusted advisor to build new communication channels between SAP and its customers.

Bluefin and SAP S/4HANA - welcome to the one horse race

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