Two-Tier ERP With SAP S/4HANA Public Cloud And Acumatica Cloud ERP
S4 Consulting designs two-tier ERP architectures that run SAP S/4HANA Public Cloud at headquarters and Acumatica Cloud ERP across your subsidiaries in Vietnam and the region. You get two world-leading cloud ERP platforms and two licensing models that complement each other: per-user licensing for your core finance and management team, and unlimited user licensing for large operational workforces.
- Group-wide financial consolidation on SAP S/4HANA Public Cloud
- Industry editions of Acumatica with no cap on subsidiary users
- Two-way data sync through the S4 Integration Platform
SAP S/4HANA Public Cloud + Acumatica:
The Right License At Each Tier
Each system sits at the tier where its pricing model works best. That is how the group keeps a global governance standard while holding total cost of ownership in check.
SAP S/4HANA Public Cloud
Per-User License (FUE)- Role
- Financial single source of truth and group-wide consolidated reporting
- Strengths
- SAP Best Practices processes, multi-tenant SaaS, new functionality delivered by SAP twice a year
- Users
- Group finance and consolidation, internal control, executive management, central procurement
- Cost
- Priced per user and converted into FUEs by user type. Most efficient when the core user count stays controlled
Acumatica Cloud ERP
Unlimited User License- Role
- Day-to-day, industry-specific operations at each subsidiary
- Strengths
- Industry editions (Construction, Manufacturing, Distribution, Retail…), low-code customization, fast deployment
- Users
- Job sites, plants, warehouses, stores and sales teams – large headcounts that change often
- Cost
- Priced on resources consumed instead of headcount. Adding people never adds license fees
An ERP architecture that is both specialized and cost-efficient. The group pays SAP user licenses only for the people who truly need SAP S/4HANA Public Cloud. Hundreds of operational staff at subsidiaries work in Acumatica, and their numbers still roll up to Tier 1 on the group standard.
Three Success Factors For
An Enterprise Two-Tier ERP
Picking the right two platforms is only the starting point. A two-tier ERP delivers when all three layers below work together.
A Standardized Tier 1 On SAP S/4HANA Public Cloud
SAP S/4HANA Public Cloud acts as the single source of truth for the whole group: one chart of accounts, consolidated financial statements and central control built on SAP Best Practices.
A Flexible, Industry-Specific Tier 2 With Acumatica
Subsidiaries in construction, manufacturing, logistics, F&B chains and distribution need a system that fits real operations and scales to large user counts. Acumatica delivers with industry editions and an unlimited user license, while numbers keep flowing up to Tier 1 for consolidation.
A Two-Way Integration Backbone
Master data flows down from SAP. Trial balances, journal entries and intercompany transactions flow up from Acumatica. Near real-time sync removes manual reconciliation and keeps figures consistent across every level of the group.
How S4 Consulting Brings This Model To Life
Deep Knowledge Of SAP S/4HANA Public Cloud
We know the data structures, chart of accounts and consolidation logic of SAP S/4HANA Public Cloud, along with the standard OData and SOAP APIs that SAP publishes. Tier 2 data is designed to land on the group standard from day one.
Acumatica – The Natural Fit For Tier 2
As an Acumatica Gold Partner, S4 deploys industry editions localized for Vietnamese Accounting Standards (VAS) and e-invoicing. With the unlimited user license, every operational employee gets their own login at no extra license cost.
S4 Integration Platform
Our no-code/low-code integration middleware connects SAP S/4HANA Public Cloud and Acumatica in both directions, syncing master data, trial balances, journal entries and intercompany transactions in near real time.
Acumatica Industry Editions For Your Subsidiaries
Each subsidiary runs the Acumatica edition built for its industry, and all of them connect back to SAP S/4HANA Public Cloud at headquarters through the S4 Integration Platform.
Construction Edition
Measure and control project costs in real time, connecting job sites, the back office and subcontractors in one system.
ExploreManufacturing Edition
See actual product costs the moment a production order closes, without waiting for month-end figures.
ExploreF&B Edition
Control recipe standards, cut ingredient waste and track profitability for every outlet in real time.
ExploreProfessional Services Edition
Track profit and loss by project and task every week, so cost overruns are caught early.
ExploreDistribution Edition
Mobile apps and barcode WMS reduce warehouse labor and keep inventory data current in real time.
ExploreRetail Edition
Run omnichannel retail with e-commerce integration, and win and keep customers for life.
ExploreSubsidiary in another industry (electronics assembly, marketing and events, logistics…)? S4 will help you configure Acumatica within the same two-tier architecture.
TH Milk: SAP And Acumatica Working Together In A Two-Tier Model
TH Milk, part of TH Group, needed to digitize sales across 180 distributors and more than 1,000 mobile sales reps nationwide, while its existing SAP system remained the core. The company chose Acumatica Cloud ERP for the distribution layer and connected it to SAP through Acumatica’s open API.
- Unlimited user license: scale to thousands of users without per-user fees
- Open API: direct integration with the company’s existing SAP system
- One central database: orders processed in real time instead of manual end-of-day entry
- Flexible web interface: users adapt screens to the company’s own terminology
“We have many reporting requirements. Now we’re able to easily give management the latest information – daily, weekly, monthly.”
Hien Huynh, IT Manager, TH Milk
TH Milk · TH Group
Project delivered in 2013-2014. Figures and quote from the Acumatica Customer Success Story – TH Milk (PDF).
S4 Consulting’s Perspective On Two-Tier ERP
Hybrid Two-Tier ERP – The New Direction For Mid-Sized And Large Enterprises
As user license costs grow with scale and the need for flexible customization rises, the ERP no longer has to carry every process. This article looks at the hybrid two-tier model: a cloud ERP serves as the financial single source of truth, while purchase-to-pay, warehousing and POS move to specialized platforms connected in both directions through real-time APIs.
Read The Full Article →Frequently Asked Questions About SAP S/4HANA Public Cloud And Two-Tier ERP
What is SAP S/4HANA Public Cloud?
SAP S/4HANA Public Cloud (officially SAP S/4HANA Cloud Public Edition) is the multi-tenant SaaS edition of SAP S/4HANA. It runs on standard SAP Best Practices processes, receives new functionality from SAP twice a year and is offered through the GROW with SAP program.
How does a two-tier ERP with SAP S/4HANA Public Cloud and Acumatica work?
Headquarters runs SAP S/4HANA Public Cloud (Tier 1) for the chart of accounts, master data and consolidated financial reporting. Subsidiaries run Acumatica Cloud ERP (Tier 2) for industry-specific operations. The two tiers exchange data in both directions through the S4 Integration Platform: master data flows down, and trial balances, journal entries and intercompany transactions flow up.
Why not roll out SAP S/4HANA Public Cloud to every subsidiary?
There are two main reasons. First, SAP S/4HANA Public Cloud is licensed per user, so costs climb quickly at subsidiaries with hundreds of operational staff on job sites, in plants, warehouses or stores. Second, the standardized processes of the public cloud edition limit deep customization, while many subsidiaries have industry-specific requirements. Placing Acumatica at Tier 2 addresses both.
How is SAP S/4HANA Public Cloud licensed?
SAP S/4HANA Public Cloud uses a subscription model based on FUE (Full Use Equivalent). Each user type (Advanced, Core, Self-Service) converts into FUEs at a different ratio, and customers buy a minimum number of FUEs. Actual pricing and conversion ratios depend on your contract with SAP or an SAP partner.
What does Acumatica’s unlimited user license mean?
Acumatica does not charge by the number of users. Subscriptions are based on the application package and the level of resources used, such as transaction volume and data storage. A subsidiary can give every employee a login, from accountants to site workers and warehouse staff, without adding license fees.
How is data integrated between SAP S/4HANA Public Cloud and Acumatica?
The S4 Integration Platform connects the standard SAP S/4HANA Public Cloud APIs (OData, SOAP) with Acumatica’s REST API. The chart of accounts, customers, vendors and items sync down from Tier 1. Trial balances, summary journal entries and intercompany transactions are pushed up from Tier 2 on a schedule or in near real time.
Where does group financial consolidation happen?
Consolidation happens in SAP S/4HANA Public Cloud at Tier 1. Acumatica figures are mapped to the group chart of accounts before they are pushed up, so headquarters works from one set of numbers for every subsidiary.
Can Acumatica at Tier 2 meet Vietnamese accounting and e-invoicing requirements?
Yes. S4 Consulting localizes Acumatica for Vietnamese Accounting Standards (VAS), statutory reporting and e-invoice integration. Your Vietnam subsidiary stays compliant locally and still reports to Tier 1 on the group standard.
Has any Vietnamese company combined SAP and Acumatica?
Yes. TH Milk (TH Group) runs Acumatica Cloud ERP for its distribution layer, connecting 180 distributors and more than 1,000 mobile sales reps, and integrates it with its existing SAP system through Acumatica’s open API. It shows the principle in practice: SAP holds the core, while Acumatica carries the large operational user base.
What is S4 Consulting’s role in the project?
S4 designs the overall two-tier architecture, implements Acumatica at Tier 2 subsidiaries and builds the integration with SAP S/4HANA Public Cloud through the S4 Integration Platform. At Tier 1, S4 works with the group’s SAP team to align the chart of accounts, master data and consolidation process.
How long does a two-tier ERP rollout take?
It depends on the number of subsidiaries and how specialized their processes are. S4 usually recommends a phased rollout: pilot one subsidiary, finalize the integration flows with SAP S/4HANA Public Cloud, then replicate the template across the remaining subsidiaries.
Ready To Pair SAP S/4HANA Public Cloud With Acumatica Across Your Group?
Book a free consultation. S4 will review your operating model, define the right users for each tier and estimate the license economics for headquarters and every subsidiary.
Need a trusted ERP partner in Vietnam? Let’s discuss your project!