An upgrade is inevitable given the licensing and the limited support that SAP will provide for older versions....
The SCM 5.0 version functionally will be able to cover every functionality that was available in SCM 4.0. If you want to use the additional functionality that is available in SCM 5.0 and scope some work based on that you can take a look at the release notes that is available on help.sap.com in the SCM 5.0 area.
The technical assessment will be available in the "system requirements" that can be located in the service marketplace.
The upgrade master guide will have the technical as well as some of the typical functional steps to be carried out during the upgrade. In addition please check notes OSS "832393 - Release Restrictions for SCM 5.0", "853797 - Actions to perform in DP after you upgrade to SCM 5.0" and "865334 - Upgrade SCM 5.0 Macros in DP and SNP."
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