SAP S4/HANA - AI, Cloud and SAP

AI, cloud and SAP - the trio of buzzwords makes you sit up and take notice and is synonymous with the current significance of the underlying technologies in the world of process automation.

Cloud solutions are on the rise, offering user-oriented access via a web browser while the actual application is operated in the service provider's infrastructure. This saves costs for in-house operations and creates flexibility.

Artificial intelligence is the building block of the future for software that is designed to deliver real value to its users in automating business processes.

Merely digitizing documents without AI-based technology is only a small component that alone does not take the process of automation to a higher level.

The goal must be the efficient extraction of information from incoming business documents, such as purchase orders, as these are crucial for companies that are confronted with countless documents on a daily basis.

These documents contain valuable information that companies need for use and further processing in their SAP system. Despite increasingly advanced technologies, comprehensive semantic correctness of data extraction is still a challenge.

The documents often have complex and ambiguous structures, as illustrated by the example of analyzing table contents to identify ordered or invoiced items.

SAP is Esker's central anchor point in process automation. As an SAP Silver Partner, Esker's integrated cloud platform provides flexible ways to automate complex business processes and organize actions across departments. The automation solutions feature SAP-certified integration that ensures seamless automation of data and document flow in the companies' SAP system.

Off to the cloud - certified, of course

Since last October, the integration of Esker's order processing and accounts payable solutions with SAP S4/HANA Cloud has been certified by SAP. With the certification, users can be sure that the Esker Cloud is a future-proof solution in the SAP environment.

SAP S4/HANA is making its way into more and more companies as the "successor" to the classic SAP/R3. With SAP's announcement that support for the old system would end in 2025, the movement towards the new system, which is available in three variants (on-premise, cloud and enterprise cloud), began.

In the USA, there is a clear trend towards the use of cloud variants and already a lot of movement away from the old systems. In Germany, where many companies have traditionally taken a rather conservative approach, the trend has not yet fully arrived. However, it is also to be expected in this country that companies will gradually use the migration to SAP S4/HANA to switch to the cloud.

For the "legacy" SAP platforms, Esker has delivered implementations to a wide range of customers worldwide, building on proven integration methodologies such as BAPIs and RFCs.

For integration with SAP S4/HANA, it should go one step further: Here, integration takes place with the help of web services that allow direct synchronization with the SAP environment.

Esker also wants to follow SAP's strategy of equipping the cloud variant of SAP S/4HANA in particular with forward-looking technologies such as artificial intelligence and pushing it in the market accordingly.

Fast order processing in SAP S4/HANA

The Esker order processing solution automates repetitive and low-value-added order entry activities. Artificial intelligence (AI) and robotic process automation (RPA) innovatively complement the solution on a centralized and secure cloud platform.

As an SAP Silver Partner, the solution is ready with the most advanced integration capabilities for all versions of SAP S/4HANA and is certified by the SAP Integration and Certification Centre for integration with SAP S/4HANA Cloud.

The comprehensive cloud solution automates every stage of order processing - from the receipt of a customer document to the creation of the corresponding order in SAP S/4HANA. Time-consuming manual steps are eliminated, freeing up employees for more important, value-adding tasks.

How automated order processing works in 4 steps:

1. Incoming orders: All incoming orders, regardless of type and format (e.g. e-mail, fax, EDI, portal, etc.), are routed to the appropriate queue for electronic processing.
   
2. Data extraction and interpretation: Various levels of AI-based technologies extract relevant data from orders - regardless of whether they are text or image documents. Deep-learning techniques are used to recognize data from orders received for the first time. Machine learning then ensures that the system automatically learns and evolves from user corrections.
   
3. ERP integration: As soon as the order data is matched with the master data, the corresponding order is automatically created in SAP S/4HANA.
   
4. E-archiving: Orders are archived electronically and linked to SAP S4/HANA, including a complete audit trail that includes all processing steps.

Transparent accounts payable in SAP S4/HANA

Esker's Accounts Payable solution integrates seamlessly with SAP ERP systems, enabling companies to automate manual activities from traditional invoice processing. The end result? With AI-driven data capture, direct ERP routing, and electronic workflow capabilities, processing is streamlined and cash flow is effectively managed.

Every step in the invoicing process is automated, from receipt of the original document to creation of the document in the ERP system. This minimizes manual intervention and helps employees work more efficiently and with greater focus.

Achieving the three overarching goals of efficient accounts payable - cost reduction, invoice transparency, improved cash flow management - can be achieved with far less effort thanks to automation.

How automated accounts payable works in 5 steps:

1. Reception and data delivery: Invoices are automatically captured by the solution, regardless of the channel in which they are received.
   
2. Data extraction and interpretation: using machine learning, invoice data is accurately extracted and made available for validation (or automatically approved if no exception is detected).
   
3. Verification and management: Invoice data is linked to the corresponding purchase orders and goods receipts - allowing staff to quickly verify and resolve special cases from a single, consolidated view.
   
4. Approval: Invoices that require review and payment approval are automatically routed to the correct person or group.
   
5. Integration and validation: The validated invoice is transferred to accounting, archived in an audit-proof manner and made accessible for as long as necessary.

Fit for the future

Accounts payable automation and order processing solutions are now certified for integration with the SAP S/4HANA cloud. This gives companies the assurance that Esker's intelligent automation solutions can work with their SAP S/4HANA cloud software and are compatible with future upgrades.

"No matter how the replacement of SAP R/3 develops: We are equally well positioned for integration in the on-premise variant as in the two cloud variants of SAP S/4HANA."

says Dr. Rafael Arto-Haumacher, Country Manager at Esker Germany.

"The certification vouches for the fact that the integration scenario has been tested by SAP and that a standard set of functions is available out of the box in this scenario. It also ensures that the basic integration will continue to work even if the SAP landscape is upgraded."

Companies already running SAP solutions on SAP S/4HANA or planning to migrate can take advantage of Esker's cloud-based solutions to achieve greater efficiency, accuracy, transparency and cost savings in their procure-to-pay (P2P) and order-to-cash (O2C) processes with their existing ERP system.

"Esker has been investing in the SAP ecosystem for over 15 years. Providing new integration capabilities offers customers more value in terms of their digital transformation"

explains Jean-Michel Bérard, CEO of Esker.

"This new level of integration empowers companies to make informed, intelligent decisions quickly. Together, we're preparing companies for growth and success."