SAP HCM for S/4HANA is here – what now?
Which analyses and preparations should you conduct and make before migrating to SAP HCM for S/4HANA…
The maintenance period for SAP Business Suite 7 (ECC) and the existing SAP ERP HCM system as an on-premise solution is scheduled to end on December 31, 2027 (with extended maintenance available until December 31, 2030, as per SAP Note 288178). If you are already operating the SAP HCM solution in the Compatibility Pack (CP) with SAP S/4HANA, your usage rights will end on December 31, 2025.
Under SAP’s ‘Cloud-First’ motto, SAP SuccessFactors is clearly designated as the future solution for human resources management. For companies not yet ready to transition to the cloud, SAP has announced an on-premise version of the HCM system on an SAP S/4HANA instance, which has been available since Q4 2022 – SAP HCM for S/4HANA (hereafter, we’ll use the unofficial abbreviation ‘H4S4’).
Due to the complex requirements in the area of workforce time management and especially payroll, which cannot yet be fully replicated in SAP SuccessFactors (as of February 2023), the migration from SAP HCM to SAP HCM for S/4HANA is generally unavoidable.
Facts about ‘SAP HCM for S/4HANA, on-premise’:
- Listed on the price list / available since Q4 2022
- Maintenance available until at least December 31, 2040
- Must be operated on an SAP HANA database
- Can be operated as an integrated SAP landscape with S/4HANA or as a stand-alone ‘H4S4’ system
- Migration tools and services (ALE interface to SAP S/4HANA) are provided by SAP
- Functions from SAP ERP HCM are largely retained (see below)
- License and contract conversion with SAP is necessary
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Options for your SAP HXM landscape
Currently, most customers find themselves in one of the four scenarios depicted in the links below. Looking beyond January 1, 2028, the system landscape will consist of an S/4HANA system (for the ERP domain), SAP HCM for S/4HANA (integrated/stand-alone), and potentially SAP SuccessFactors as a supplement, for example, for a Talent Hybrid or even a Core Hybrid approach.
Over the course of time leading up to December 31, 2027, you will need to migrate to ‘H4S4.’ As part of the transition to ‘H4S4,’ there are some preparatory measures to be taken. We will address these in the following.
In our opinion, there are two fundamental aspects to consider and contemplate:
General thoughts on SAP HR-IT strategy
Specific roadmap for the ‘H4S4’ migration
General thoughts on SAP HR-IT strategy:
- What are the dependencies on the ERP system and its S/4HANA plans?
- Talk to your SAP ERP colleagues. S/4HANA adoption is often driven by Finance (FI). There are also dependencies on the HCM system (new general ledger, conversion of company codes/cost centers/cost objects/accounting plans, new Business Partner model, etc.)
- What could be future hosting options for your SAP (HCM) system?
- In addition to the ‘classic’ on-premise operation, consider operating in the Private Cloud Edition (PCE) via SAP with a hyperscaler (mention ‘SAP RISE’). This also needs to be considered in the overall context with the S/4HANA system.
- How do I use this for digitization and optimization of my HR world?
- The transition from Business Suite 7 to ‘H4S4’ offers opportunities for digital HR transformation in several aspects:
- On one hand, SAP is developing and providing some new SAP Fiori self-service applications for ‘H4S4.’
- Some existing functionalities will be discontinued in ‘H4S4’ and need to be replaced with SAP Fiori applications or SAP SuccessFactors applications (see ‘Simplification Items’).
- The new licensing model for ‘H4S4’ no longer uses the traditional Named User metrics for Employee and Manager Self-Service Users. This provides new opportunities for companies that have previously hesitated to invest in self-service licenses.
- The transition from Business Suite 7 to ‘H4S4’ offers opportunities for digital HR transformation in several aspects:
- What functionalities does SAP SuccessFactors offer?
- Evaluate your requirements for future (global) HR software: What requirements do you have in Talent Management that are not adequately met today? SAP SuccessFactors is strong in these modules (Recruiting, Onboarding, Performance & Goal Management, Succession Planning, Learning Management), and should always be considered when selecting a software solution.
- Do you need a global employee master data solution? Then validate the use of Employee Central (PA & OM in the Cloud) in conjunction with a Core-Hybrid approach.
We are happy to serve as a strategic partner in developing an SAP HR-IT strategy for you. In our strategy workshops, we work with you to create the right strategy based on your requirements and current situation. Please feel free to contact us!
Have you already planned your move?
Create a concrete roadmap for the migration to ‘H4S4.’ We recommend treating the migration from SAP HCM to SAP HCM for S/4HANA like a real-life move.
- How are my conditions in the new house? Does my existing furniture fit accordingly?
- What do I want to take with me?
- Keyword: Cleaning & Decluttering – Thin out structures, lock & delete data
- GDPR!
- Review of the required HR corporate and personnel structure
- Critical review of all modifications in SAP HCM
- Review of all custom Z-programming and interfaces
- Keyword: Cleaning & Decluttering – Thin out structures, lock & delete data
- What are the neighbors doing – in the old house and in the new house?
- Coordination with the SAP ERP or SAP S/4HANA project team is essential!
- Lease/purchase agreement
- Contact SAP Account Management early for license conversion
Which SAP HCM functions are discontinued in “H4S4”?
Check SAP Note 3091160 and the individual “Simplification Items” early on. Our experience shows that some companies are affected by the following aspects:
- Manager’s Desktop (PA-MA)
- The entire functionality of the Manager’s Desktop (MDT) is no longer supported.
- Alternative: Transition to the used functionality using Manager Self-Services (MSS) based on SAP Fiori and/or Web Dynpro ABAP (WDA).
- Recommendation by scdsoft: Utilize the capabilities of the SAP Fiori Launchpad with SAP MSS functionality. For easy report output via SAP Fiori, you have access to a standard SAP app called “My Reporting.” Reports can be rolled out quickly and easily into the SAP Fiori Launchpad using the scdsoft “Reporting Cockpit” app.
- Employee and Manager Self-Services
- The following SAP ESS and MSS technologies will no longer be supported in the future:
- ESS based on ITS
- ESS based on Web Dynpro for Java
- ESS based on BSP ESS / MSS UI5 from HR Renewal)
- Recommendation by scdsoft: The mentioned technologies above need to be replaced with SAP Fiori or Web Dynpro ABAP (WDA) applications.
- The following SAP ESS and MSS technologies will no longer be supported in the future:
- Parts of SAP HCM Time Management will no longer be supported!
- The “old” Infotype 0005 “Vacation Entitlement” must now be FINAL migrated. Those who still use this infotype should initiate the migration promptly.
- Recommendation by scdsoft: Migrate to IT 2006 “Absence Quotas”
- The same applies to Infotype 0083 “Settlement of Vacation Entitlements”
- Recommendation by scdsoft: Migrate to IT 0416 “Time Quota Settlement”
- Infotype 2005 “Overtime” will no longer be supported!
- Recommendation by scdsoft: Migrate to IT 2002 “Attendances”
- Integration of time recording terminals: Interface KK1 will no longer be supported.
- Recommendation by scdsoft: Migrate to HR-PDC
- Do you operate SAP Travel Management (“FI-TV”) on the SAP HCM system (rather than on the SAP ERP system)?
- According to the solution scope diagram for SAP HCM for S/4HANA (H4S4), “FI-TV” is considered a part of SAP S/4HANA. Therefore, it cannot and should not be operated on the HCM system, i.e., “H4S4,” in the future.
- You have the following options:
- Operate “FI-TV” on the SAP S/4HANA system.
- IMPORTANT: This is only possible in the SAP S/4HANA On-Premise operating model. It is not intended to be operated in one of the S/4HANA Cloud Editions (e.g., Private Cloud Edition).
- Consider using SAP Concur as a cloud solution.
We support you with our experienced experts in the planning and entire transformation process:
- We actively assist you with the “H4S4” Readiness Check and the necessary Simplification analysis of your current SAP HCM installation.
- We support you in planning and executing all necessary preparations for an optimized SAP HCM for SAP S/4HANA migration.
- We assist you in data cleansing with regards to GDPR compliance.
- We offer SAP Fiori add-on solutions to proactively drive HR digitization and replace unsupported functions with Fiori scenarios (MDT).
- With our migration tool, we optionally support you in transformations related to System Landscape Optimization (SLO), system separation, system consolidation, and system mergers.
