Convert customer and supplier master data for S/4

The "S" in S/4 Hana, the software suite for enterprise management with real-time ERP based on the in-memory platform Hana, stands for "simple". On the one hand, this refers to the simplified data model of the technology and, on the other, to the improved usability of the applications.

Simple" does not refer to the introduction! But this introduction is imminent. As of 2025, SAP will no longer maintain and further develop its current ERP system.

So there is no question that the switch to S/4 must take place. There are different opinions about when and how. But one thing can be taken for granted: the changeover will not be "easy", and it will take no small amount of time.

S/4 Hana is much more than an upgrade or database migration. It involves the entire IT system landscape.

It is nothing new that there are different paths to S/4. These are referred to as the greenfield and brownfield approach (furthermore, there is also the path of transformation of the IT landscape).

In the greenfield approach, a system is planned from scratch - on a greenfield site - all business processes are redefined in S/4 and only the data is transferred.

The brownfield approach is the conversion of an existing ERP system to the new S/4. Processes and data are transferred to S/4 Hana and adapted and improved in an evolutionary manner.

Whether greenfield or brownfield:

"A high quality of the master data used (is) important. Ideally, the standardization and harmonization of master data objects already begins in parallel with process design".

writes Computerwoche.

With the conversion of an existing ERP system, the setup of the new S/4 environment is faster because the existing processes are largely adopted.

At the same time, brownfield migration continues "presupposes a high master data quality and holds various pitfalls, for example, with regard to customer-vendor integration or the analysis of in-house developments"as Alexander Haas, Consultant SAP Logistics at Gisa, emphasizes.

Indeed, the integration of customer and supplier master data is an important point. In the previous ERP system, customers and suppliers are created as "customer" and "vendor" - twice.

In S/4, it is mandatory to map both as "business partners". Therefore, a conversion must be made in the data model. So it is not just a matter of migrating the data, but also of changing the way data is managed.

The issue is easy to understand if, for example, company X has both a customer relationship and a supplier relationship with company Y. This means that company Y is created twice in the previous ERP system. Company Y is therefore created twice in the previous ERP system.

All changes must be made twice. In the new S/4, Company Y is created as a "Business Partner", but with two roles: "Customer" and "Vendor".

A company can thus be used in different roles, but maintenance of the common master data is only required once. Technically, the conversion from SAP old (customer, vendor) to SAP new (business partner) means that the data created twice in the old system must be merged.

This is an effort that should not be underestimated. This can be significantly reduced with the help of a software solution (such as ZetVision's SPoT) that connects the old and new worlds.

The advantage: The solution can already use the new data model, but at the same time it can also map the old one. Companies with which business relationships exist can be created as "business partners" (with the respective roles); at the same time, "debtor" and "creditor" data can continue to be transferred to the old ERP system.

Companies can therefore create data in the new way and continue to operate their familiar ERP world. In this way, the necessary adaptation step can be brought forward before the actual S/4 migration, during which the operational posting data is then also converted.

On the one hand, companies have already improved their master data processes and data quality; on the other hand, the transition to S/4 Hana is much easier, faster and more cost-effective.

The early use of the new data model also delivers immediate added value, as the central master data maintenance is significantly relieved. So no matter when you decide to use S/4 - the benefits are immediate.