What is SAP HCM for S/4HANA On-Premise (H4S4)?

SAP HCM for SAP S/4HANA On-Premise (more familiarly known as ‘H4S4’) is another variation, similar to the SAP S/4HANA Private Cloud Edition (PCE) offering, for customers who wish to extend their current investment in SAP ERP HCM. As opposed to the PCE offering, H4S4 allows continued use of the on-premise SAP^® talent solutions, including learning and recruiting (subject to licensing). It will be available in Q4/2022, synced with the SAP S/4HANA^® release, and can be deployed either within the SAP S/4HANA environment or run standalone. More information can be found in this blog by SAP’s Ralf Wagner. More details will become available in 2022 as the delivery date approaches. Commercial details are not yet available.

There are existing SAP customers who have made large investments in the SAP on-premise talent capabilities, including Learning Solution (LSO) and/or e-Recruiting. While it is highly recommended to move to the SAP SuccessFactors solutions, given that innovation is focused there, those who wish to extend their support for those talent modules in addition to their core HR (Personnel Administration and Organizational Management) will have a choice with this offering. As you may know, the SAP S/4HANA Private Cloud Edition offering allows customers to extend their on-premise investment through calendar year-end 2040 for the core SAP HR Payroll and Time solutions. This variation will allow for that, as well as offer support for the on-premise talent components.

H4S4: The basics

• Based on SAP ERP HCM with comparable functional scope and business processes

• Running on SAP HANA DB with performance benefits

• UX, legal changes, continuous enhancements

This is not a new code line in on-premise SAP HCM; it is simply the existing code line that SAP is putting into the S/4HANA environment for those customers moving to S/4HANA and wanting to continue to run the ERP HCM code line in the same instance as S/4HANA. It is a technical upgrade that will take customers to the latest version. It will also have performance optimizations, as well as other usability enhancements. However, customers will still need to implement and deploy the new innovations, the same as any other normal system upgrade.

H4S4: Transition notes

• Upgrade with existing migration tools and services
• Customers can run HCM embedded in, or in a separate, SAP S/4HANA instance
• Any customer Enhancement Pack level is supported; however, they will end up on EhP8 (technical upgrade).

2022 Payroll options

Starting in 2022, SAP customers will have four options for world-class SAP Payroll as detailed in the table below.