Browse the BookThis chapter explores sourcing and procurement with SAP S/4HANA. You’ll walk through key functionality: operational purchasing, invoice management, intelligent procurement, new central procurement, and more. Plus, you’ll get insight into SAP S/4HANA Cloud features and a look at the road ahead.
Devraj Bardhan, Axel Baumgartl, Nga-Sze Choi, Mark Dudgeon, Piotr Górecki, Asidhara Lahiri, Bert Meijerink, Andrew Worsley-Tonks
SAP S/4HANA: An Introduction648 Pages, 2021, $79.95 ISBN 978-1-4932-2055-7
www.sap-press.com/5232
First-hand knowledge.
“Sourcing and Procurement”
Contents
Index
The Authors
225
6
Chapter 6
Sourcing and Procurement
In this chapter, we’ll address C-level pain points specifically in the
sourcing and procurement area and see how SAP S/4HANA can help
C-level executives resolve these challenges.
This chapter focuses on sourcing and procurement by discussing the challenges in this
area and how SAP S/4HANA can help address them. We’ll then provide details about
SAP S/4HANA innovations and the future innovations and direction for the sourcing
and procurement line of business (LoB). We’ll discuss these key functionalities in the
different areas of sourcing and procurement, including operational purchasing, invoice
and payables management, sourcing and contract management, and supplier evalua-
tion and analytics. We'll see how new machine learning capabilities are being added to
the sourcing and procurement LoB, enabling intelligent procurement for enterprises.
Additionally, access is provided to voice interfaces (digital assistant) to execute select
procurement processes and to further machine learning capabilities to automate pro-
cesses.
There are also robotic process automation (RPA) scenarios available; for example, for
purchase order confirmation, RPA enables automated entry of the purchase order con-
firmation details from a supplier’s email, and for simple purchase requisition creation
from Microsoft Excel, RPA enables automated creation of a purchase requisition in SAP
S/4HANA from a source input file.
We’ll explore SAP S/4HANA sourcing and procurement functionalities in a more de-
tailed way in the following sections.
6.1 Industry Pain Points and SAP S/4HANA Benefits
One of the key challenges within sourcing and procurement today is the technical com-
plexity of the landscape related to the previous solutions introduced for procurement,
such as SAP Ariba, SAP Supplier Relationship Management (SAP SRM), and SAP Supplier
Lifecycle Management. Different systems are providing operational, tactical, and stra-
tegic activities, resulting in many challenges in aligning data across systems and sup-
porting the data.
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226
In addition, challenges in today’s enterprise resource planning (ERP) systems are
related to the following:
� Lack of visibility to view the entire purchasing flow and lack of real-time data to pro-
vide accurate inventory levels
� Insufficient capabilities in the system to enable users to search for and view pur-
chasing information efficiently
� Inability to use advanced analytics to better understand and react to changes in the
environment
� Lack of integration between systems, forcing users to go in different systems via dif-
ferent user interfaces (UIs)
With the introduction of SAP S/4HANA, some of the traditional challenges are being
addressed in the following ways:
� Leveraging the Ariba Network to overcome the complexity of supply chains and to
provide a system that functions as a single point of interaction
� Enabling self-service purchasing using SAP Ariba
� Integrating SAP Supplier Lifecycle Management functions with collaboration tools
for a more efficient and tighter collaboration with business partners to reduce time
to market, increase flexibility in the context of volatile demands, and increase sup-
ply chain visibility
� Introducing a simplified process using one data object for purchasing requirements,
which helps to shorten process cycle times
� Enabling centralization of sourcing and procurement functions in multiple-backend
system environments using SAP S/4HANA for central procurement
� Using built-in transactional or strategic analytics, for example, through improved
contract monitoring or supplier evaluation reporting
SAP S/4HANA provides a streamlined view of all procure-to-pay processes and gives
you the visibility and insights you need to make strategic decisions or to optimize the
procure-to-pay processes. With the new system capabilities combining online analyti-
cal processing (OLAP) with online transaction processing (OLTP) on the same SAP
Fiori screen, drilling down into the lowest level of detail with real-time exposure
gives performance providers a compelling value proposition to exploit. In the follow-
ing subsections, we’ll discuss the most important new functionalities introduced
with SAP S/4HANA for the sourcing and procurement space.
Table 6.1 lists the key challenges for the chief supply chain officer (CSCO) for the sourc-
ing and procurement area and how SAP S/4HANA functionalities can address today’s
challenges.
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6.1 Industry Pain Points and SAP S/4HANA Benefits
6
Challenge for the CSCO How SAP S/4HANA Can Help
Lack of visibility:
� No single view of the entire pur-
chase order flow.
� Lack of real-time data to provide
accurate inventory levels.
� Limited search capabilities; users
go through different screens (or
even different systems) to view
data related across contract work-
lists and contract and supplier
data.
� Users access different systems to
view different data across the
entire flow.
Improved visibility and transparency with the follow-
ing:
� Ability to track purchase order flow.
� Visibility of accurate inventory position across
multiple plants.
� Dynamic and flexible search feature across con-
tract worklists with capability to navigate directly
to contract and supplier fact sheets.
� One system for purchasing of all direct materials,
indirect materials, and services with a harmonized
UI.
Increasing volatility in demand and
supply:
� Lack of an integrated view of the
process doesn’t provide sufficient
support to enterprises to be more
prepared for volatility in demand
and supply.
� Lack of analytics.
For sourcing and procurement, SAP S/4HANA helps
reduce the impact of volatility in supply with the fol-
lowing:
� Standard integration for SAP Ariba for a more effi-
cient procurement process.
� Advanced analytics to identify discounts and pric-
ing opportunities for better supply planning.
Increased complexity:
� Technical complexity of the land-
scape due to different solutions
for different parts of the pro-
cesses.
� Challenges aligning data across
different systems.
Complexity is reduced by the following:
� One-step management of contracts and use of
self-service requisitioning for procurement.
� One central master data object (business partner)
for vendors, customers, and business partners.
� Standard integration with SAP Ariba for more opti-
mized processes and a single source of truth.
� Machine learning capabilities to improve effi-
ciency and complexity of processes for users, for
example, automatic proposal of material group
and reduction of free text items due to auto pro-
posal for creation of a new catalog item.
� Smart buying capabilities using natural language.
� Central procurement for system landscapes with
multiple ERP systems.
Table 6.1 Sourcing and Procurement Challenges and SAP S/4HANA Advances
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228
6.2 Key Sourcing and Procurement Functionality
In this section, we’ll walk through the key SAP S/4HANA innovations in sourcing and
procurement. We’ll start with innovations in operational purchasing and provide some
examples of SAP Fiori apps that enable companies to perform operational procure-
ment processes more efficiently. Then, we’ll discuss the key functionalities for invoic-
ing, sourcing, and contract management, before taking a look at innovations in
supplier evaluation and analytics. Finally, we’ll examine the impact of machine learn-
ing and intelligent procurement.
6.2.1 Operational Purchasing
Several key changes to the operational procurement processes will be employed within
the SAP S/4HANA core in the following areas: self-service procurement, collaboration,
UI, and purchase order output.
In the traditional SAP ERP system, there are no real-time insights for the operational
purchaser to perform daily tasks. Decisions are made based on outdated data, and there
is no real-time key performance indicator (KPI) reporting, which makes improving the
service level challenging.
With SAP S/4HANA, users can get real-time insights and KPIs immediately. The opera-
tional purchaser can do his job based on the most up-to-date information, and, at any
point in time, users can run real-time KPI reports to get insights on their performance.
SAP S/4HANA offers several real-time KPI reports, including the following:
� Purchasing and invoicing spend
� Contracts
� Purchase order average delivery time
� Supplier information
Lack of collaboration:
� Lack of integration between dif-
ferent systems to provide a single
source of truth.
� Inability to view an entire mate-
rial flow for in-house production
and procurement production.
Collaboration is enhanced with the following:
� Ability to secure many-to-many networked collab-
oration with trading partners.
� Seamless collaboration between production and
procurement departments via the MRP cockpit.
� Standard integration with SAP S/4HANA solutions,
such as SAP Ariba, to improve collaboration.
� Central single source of truth enabled by SAP
S/4HANA central procurement.
Challenge for the CSCO How SAP S/4HANA Can Help
Table 6.1 Sourcing and Procurement Challenges and SAP S/4HANA Advances (Cont.)
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6.2 Key Sourcing and Procurement Functionality
6
SAP S/4HANA provides the operational purchaser a holistic view of activities within
operational procurement. Real-time analytics facilitates the purchasers being able to
react directly to spend exceptions or overdue purchase order items.
In addition to this, the central procurement hub functionality has been added to enable
enterprises with multi-backend system environments to centrally manage all their key
activities around purchasing, contract management, and sources of supply manage-
ment. We’ll describe this functionality in detail in Section 6.3.
The Procurement Overview Page (Figure 6.1) provides all companies with all their rele-
vant KPI information in one screen, enabling them to immediately see their current
performance without running multiple reports as in the traditional SAP ERP system.
They can immediately see exceptions and act on them as well.
Figure 6.1 Procurement Overview Page with All Procurement KPIs on One Screen
Figure 6.2 shows an example of one of the standard KPIs for overdue purchase order
items. This app enables the strategic buyer to monitor performance and follow up with
the supplier proactively based on available statistics. Like other analytical SAP Fiori
apps, it offers users several views for display, such as the following:
� By Supplier
� By Plant
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230
� By Purchasing Group
� By Purchasing Category
� By Material Group
� By Document
Self-service requisitioning is a relatively new capability in SAP S/4HANA. The self-service
procurement processes have been simplified by consolidating the shopping cart and
purchase requisition objects into a single structure based on the purchase requisition.
The basic processes of requisition, approval, purchase order creation, and goods receipt
are facilitated by the UI changes, described in the next section.
Figure 6.2 Overdue Purchase Order Items App
With SAP S/4HANA, customers have integrated catalog functionality within the pur-
chasing requisition SAP Fiori apps based on the Enterprise Search functionality. The
SAP ERP self-service procurement business function is made obsolete with the SAP
S/4HANA core deployment.
In the traditional system, a user must go through multiple screens to find and assign
sources to purchase requisitions. The creation of purchase orders is often performed
through a batch input report. In SAP S/4HANA, all tasks to search, find, and assign a
source of supply, as well as create a purchase order, can be handled from one screen.
The system automatically proposes the available sources of supply to the purchaser.
This significantly increases the efficiency and the speed of the purchaser when assign-
ing supplies to the purchase requisitions. In addition, a new SAP Fiori interface has
been introduced to convert purchase requisitions to purchase orders.
The creation of manual purchase orders in SAP S/4HANA is supported by several capa-
bilities to improve efficiency, for example:
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6.2 Key Sourcing and Procurement Functionality
6
� Users can select previous purchase orders or sources, such as a template, thus mini-
mizing errors and improving efficiency.
� Several fields are prefilled based on the selected supplier or material type.
� Natural language processing (NLP) can be used to search catalog items in a specific
material group, filter the catalog items by price or supplier, and order catalog items.
� A draft purchase order is created automatically when sessions are lost, and it’s
retrieved automatically when logged on again.
Several additional SAP Fiori apps are delivered to manage this streamlined procure-
ment process, including the following:
� Create Purchase Requisition app
The Create Purchase Requisition app enables users to select products from different
catalogs and create a purchase requisition. It offers the ability to create free text
descriptions for items in the purchase requisitions. Improved search capabilities let
users easily and efficiently find relevant catalog items. As of SAP S/4HANA 1909, it’s
also possible to search for catalog items by image, as part of the image-based buying
machine learning service scenario.
� My Purchase Requisitions app
The My Purchase Requisitions app offers users a single app to check the status of
purchase requisitions and all other information relevant to purchase requisitions.
You can filter based on predefined criteria and go to display or change mode to make
changes to purchase requisitions directly from this SAP Fiori app. It offers procure-
ment in a single app as a go-to point for all purchase requisition-related information
and follow-up activities, such as adding items to existing purchase requisitions.
� Manage Purchase Orders app
The Manage Purchase Orders app (Figure 6.3) is the central point for procurement
users who are working with purchase orders. Apart from typical maintenance and
display activities, this app also serves as a go-to point for all purchase order-related
information and follow-up activities, such as using subcontracting processes, dis-
playing purchase order commitments, entering or displaying supplier contact data,
displaying supplier confirmations, and selecting account assignment objects of a
purchase order items.
� Manage Purchasing Document Items – Professional app
The Manage Purchasing Document Items – Professional app enables procurement
professionals to gain an overview of items in their purchasing documents for each
supplier and keep track of their purchasing documents. There are separate tables
available for purchase requisitions, purchase orders, good receipts, and supplier
invoices.
Note that the preceding list contains just a key few apps from dozens of SAP Fiori apps
that are available to support the procurement process in SAP S/4HANA.
6 Sourcing and Procurement
232
Figure 6.3 Manage Purchase Orders App
6.2.2 Invoice Management
Organizations face several challenges within accounts payable processes that should
be addressed with systemized solutions in the future:
� Slow invoice processing, leading to late payments and endangering supplier rela-
tions
� Lack of visibility into invoice and payment data
� Slow invoice/payment approvals
� High percentage of exceptions that require manual handling
There’s a change of authorization concept for the supplier invoice. In the past, when
posting invoices for a specific company code, the user was checked to ensure he was
authorized for any plant. Now, the system checks the authorization for the company
code in general. If an item is changed with a purchase order reference, the specific plant
is checked.
In line with the change in the data model, the business partner is now the primary busi-
ness object, meaning the business partner transactions are now used to complete the
creation or maintenance of the business partner. This allows a holistic view of the busi-
ness partner for all applications. However, in terms of managing the configuration, cer-
tain constraints exist when dealing with the business partner object; for example, the
customer-vendor integration (CVI) mapping and business partner number ranges
must be considered across multiple application areas.
The traditional SAP ERP system has redundant object models for master data. With SAP
S/4HANA, the business partner approach is now capable of centrally managing master
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6.2 Key Sourcing and Procurement Functionality
6
data for business partners, customers, and vendors. In a business relationship, the
business partner can assume other business partner roles and—in this case, with SAP
S/4HANA—the general data, which is independent of a business partner’s function or
application-specific extensions, need not be created again. This prevents data from
being created and stored redundantly.
The invoice and payables management capabilities of SAP S/4HANA are fully enabled
in the new UI. As an example, with the Manage Supplier Invoices app in SAP Fiori, you
can create and display supplier invoices. After specifying the purchase order and items
to which the supplier invoice relates in the simulated or posted functions, you can
compare the quantity and amount values of each invoice item with the corresponding
data of the purchase order. With the Park Supplier Invoices app, you enter and hold or
park supplier invoices or credit memos. You can edit a parked document, for example,
by adding or adjusting certain header or line-item level data. As soon as changes are
done and the document is verified, you can post the parked document. One of the final
steps in the supplier invoice management process is the reconciliation of open items
on the goods receipt/invoice receipt (GR/IR) account. There is a new solution for this
called SAP S/4HANA for goods and invoice receipt reconciliation, which automates the
process by leveraging machine learning capabilities.
With the Manage Accounts Payable Overview app, shown in Figure 6.4, you can get an
overview of key supplier invoice and payment data, including the most important
KPIs.
Figure 6.4 Accounts Payable Overview App
You can enhance SAP S/4HANA core capabilities with SAP Invoice Management by
OpenText, which enables digitalization and automation of accounts payable processes
6 Sourcing and Procurement
234
that can help to manage and streamline vendor invoice processing and workflows, as
well as support compliance requirements.
6.2.3 Sourcing and Contract Management
SAP S/4HANA delivers a wide range of functionalities that support processes in the
sourcing and contract management area. These include processes and transactions
related to sourcing processes, including requests for quotation (RFQs) and quotation
transactions, as well as purchasing contract and scheduling agreement management
functions.
There are many SAP Fiori apps that enable operational contract management. Here,
we’ll briefly describe selected examples of such apps:
� Manage Purchasing Info Records app
You can maintain the prices and conditions at which you purchase a material from
a specific supplier. Information can be stored at the purchasing organization or plant
level. As of SAP S/4HANA 1909, you can create and display purchasing info records
for different types of procurement transactions, including consignment, pipeline,
standard, and subcontracting.
� Manage Requests for Quotation app
You can create RFQs and maintain related information and attributes such as the
purchasing organization, delivery terms, and delivery addresses. You can also gener-
ate a list of possible suppliers for the required materials. This process can be inte-
grated with SAP Ariba; you can send the request for quotation (RFQ) to SAP Ariba
Sourcing to invite suppliers to place bids. After receiving the bids and selecting the
winner, you can decide to create a contract or a purchase order for the selected quo-
tation.
� Manage Supplier Quotations app
Supplier quotations can be created manually in SAP S/4HANA or generated from
awards from SAP Ariba Sourcing that are transferred to SAP S/4HANA. You can also
define approval rules for supplier quotations, and after supplier quotation compari-
son (in a separate Compare Supplier Quotations app), you can award the best quota-
tion or award several quotations partially.
� Manage Sources of Supply app
You can create and maintain sources of supply, such as source list, contract, or pur-
chasing info record. You can also search for and display all existing sources of supply
filtered by different criteria, for example, material, supplier, material group, plant, or
purchasing organization.
� Manage Purchase Contracts app
You can create new contracts with a validity time frame, value, and/or quantity tar-
get, or you can renew existing ones for which any of the predefined limits have been
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6.2 Key Sourcing and Procurement Functionality
6
reached. You can also create contract templates. The app provides an analytical over-
view of all your purchase contracts, including information such as usage, status, and
validity. The app enables you to search and display all contract-related information
and verify the status of contracts immediately through a single screen. You can also
display notifications about predicted contract consumption quantities and values.
From this SAP Fiori app, you can navigate to other transactions; for example, you
can create purchase orders directly from a local purchase contract.
� Manage Scheduling Agreements app
A scheduling agreement is a form of procurement agreement that enables you to
purchase materials on predetermined dates within a certain time period. You can
also create notes for scheduling agreements and save a new scheduling agreement
as a draft with the In Preparation status.
For complex source-to-contract functions, we recommend SAP Ariba. Sourcing and
procurement functionalities in SAP S/4HANA can be enhanced by SAP Ariba function-
alities, including SAP Ariba Buying with the guided buying capability, SAP Ariba Sourc-
ing, SAP Ariba Contracts, SAP Ariba Supplier Lifecycle and Performance, SAP Ariba
Supplier Risk, and supplier collaboration capabilities enabled by Ariba Network.
Integration between SAP S/4HANA and SAP Ariba solutions (Ariba Network, SAP Ariba
Sourcing, and SAP Ariba Procurement) can be enabled with SAP Ariba Cloud Integra-
tion Gateway. Other possible integration options include SAP Process Integration/SAP
Process Orchestration, or direct integration without middleware.
6.2.4 Supplier Evaluation and Analytics
Supplier evaluation and analytics capabilities of SAP S/4HANA incorporate the follow-
ing two core business functions:
� Supplier classification and segmentation
This capability enables assessment and classification of suppliers at regular inter-
vals, as well as allocation of suppliers to segments with different level of importance.
Specifically, strategic buyers can classify and manage their supply base within pur-
chasing categories. The integration components for Dun & Bradstreet integration
also are included in the SAP S/4HANA core delivery. You can also create a scorecard
for each supplier that enables you to monitor the supplier’s corporate social respon-
sibility compliance.
With SAP S/4HANA, suppliers can be classified based on various criteria, such as
spend, strategic importance (ABC classification), risk, and so on. Companies can
define internal activities to track supplier performance, as well as view and analyze
supplier information. This gives companies transparency in their supplier portfo-
lios based on these classifications and reduces risks by identifying low-performing
suppliers.
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� Supplier evaluation
Supplier evaluation and performance management processes can be initiated and
managed across the supplier base by strategic buyers.
In the traditional system, no real-time data was available due to the volume of the
data, causing a lack of transparency and decision support. In SAP S/4HANA, the full
question library and survey management functionality is available for use, so busi-
ness user input on supplier performance can be evaluated and included as input for
supplier management activities, with the following additional improvements in SAP
S/4HANA:
– Questionnaires definable directly in SAP S/4HANA
– Monitor and search flexibility for evaluation responses and ability to navigate to
response details
– Ability to create evaluation requests and distribute to appraisers
– Ability to display overall result of a supplier evaluation in evaluation scorecards
As of SAP S/4HANA 2020, new SAP Fiori apps enable users to define their own crite-
ria to rate suppliers. After activation of the user-defined criteria feature, you can use
the following SAP Fiori apps:
– Manage User-Defined Criteria for Supplier Evaluation
Manage user-defined criteria, and add a count for the suppliers.
– Supplier Evaluation Weighting and Scoring
Define weighting and scoring to the user-defined evaluation criteria.
– Supplier Evaluation by User-Defined Criteria
Determine supplier evaluation scores based on the previously defined user criteria.
6.2.5 Intelligent Procurement with Machine Learning
Since release 1709, the first machine learning capabilities have been added to the sourc-
ing and procurement processes, and the first steps have been made to the intelligent
enterprise. These initial processes selected for machine learning capabilities are mainly
focused on automation and exception handling processes, such as the following:
� Increased invoice automation processes and efficient invoice monitoring processes
are provided for exception handling with machine learning capabilities (e.g., to iden-
tify issues immediately).
� Usage of free text is reduced because the system using machine learning capabilities
will automatically propose new catalog items.
� SAP S/4HANA automatically proposes material groups to use when free-text items
are used in purchase requisitions.
� When materials are used without a source of supply, SAP S/4HANA automatically
proposes the available options using machine learning.
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6.3 SAP S/4HANA for Central Procurement
6
The innovations listed are just the selected capabilities from the initial release of SAP
S/4HANA, which enabled machine learning in the procurement and sourcing area.
These have been further enhanced by additional capabilities:
� New predictive scenarios that enable predictions of the future state based on past
data patterns. These scenarios include contract consumption, prediction of delivery
date for purchase order items, and intelligent approval workflow.
� Automatic execution of process steps in procurement and sourcing processes based
on machine learning and data prediction capabilities.
� Procurement data is also used as an input for the predictive accounting scenario,
described in Chapter 2, Section 2.3.7, as well as for the new accruals management
solution (purchase order accruals automation and prediction), which enables calcu-
lation and posting of automatic accruals for purchase orders driven by the confi-
dence level. The solution powered by machine learning recommends whether
proposed accruals seem to be reliable or not, based on similar accrual decisions from
the past.
� Image-based buying has been introduced with SAP S/4HANA 1909.
� Conversational UIs and intelligent assistance capabilities have been provided to
support several procurement activities.
SAP will continue to build these capabilities by helping enterprises become intelligent
enterprises through uniting human expertise with machine insights. The machine
learning capabilities are complemented with conversational voice interfaces, which
enable using the digital assistant to execute procurement processes.
6.3 SAP S/4HANA for Central Procurement
In the central procurement scenario, SAP S/4HANA plays the role of central procure-
ment hub, which is driving procurement processes in backend systems. These backend
systems can be either SAP (on-premise SAP S/4HANA, SAP S/4HANA Cloud, or SAP ERP)
or non-SAP (at the time of writing this chapter, limited functionality only with develop-
ment in progress). The solution enables central management of procurement pro-
cesses in all these connected systems from the single interface of the SAP S/4HANA
for central procurement system. The solution provides an opportunity for harmoniza-
tion and centralization of procurement processes without a massive master data har-
monization/standardization effort in connected backend systems.
Figure 6.5 shows the general concept of SAP S/4HANA for central procurement, which
we’ll describe in more detail in the following sections.
The new central procurement solution is available in both on-premise SAP S/4HANA
and SAP S/4HANA Cloud. The aim is to provide the same functionality in both options;
however, in the public cloud version, you can expect more frequent innovations
6 Sourcing and Procurement
238
following the quarterly release cycle of SAP S/4HANA Cloud. The first limited release of
new functionality was in SAP S/4HANA Cloud 1708 and on-premise 1709, and this ini-
tial release has been limited to central requisitioning only.
Figure 6.5 SAP S/4HANA for Central Procurement
SAP Best Practices scenarios are available that cover all the key functionalities de-
scribed in this chapter. Most central procurement activities are performed in two SAP
Fiori apps: Manage Purchase Requisitions Centrally and Manage Purchase Orders Cen-
trally.
All the connected backend systems can be monitored using the following dedicated
SAP Fiori apps:
� Central Procurement Operations Monitor
Provides information on the connected systems’ status and compatibility of busi-
ness operations. As presented in Figure 6.6, there are separate views for Central Req-
uisitioning, Central Purchasing, and Central Contract Management scenarios, and
each provides an overview of eventual issues and their causes.
� Central Procurement Interface Monitor
Provides information on why certain activities in central procurement processes
have failed and at what stage of the process. You can also directly navigate to rele-
vant applications or transactions in the central procurement system or in backend
systems to analyze and fix the identified issues.
SAPS/4HANA
SAP ERP SAP S/4HANA Cloud,
extended edition
SAP S/4HANACloud
SAP S/4HANAfor central procurement
SAP Ariba
Requisitioning Sourcing PurchasingContract
ManagementAnalytics
Non-SAP
239
6.3 SAP S/4HANA for Central Procurement
6
� Central Procurement Job Monitor
Provides information on why certain jobs have failed and at what stage of the pro-
cess. You can also directly navigate to relevant applications or transactions in the
central procurement system or in backend systems to analyze and fix the identified
issues.
Figure 6.6 Central Procurement Operations Monitor App
In the next sections, we’ll look at SAP S/4HANA for central procurement in the context
of other selected SAP solutions, before we look into the details of functional capabilities
available in SAP S/4HANA for central procurement.
6.3.1 Central Procurement and Other SAP Solutions
In this section, we’ll analyze the SAP S/4HANA for central procurement fundamental
concepts and offered capabilities in the context of two of the most popular general pro-
curement solutions: SAP SRM and SAP Ariba. We’ll discuss the key differences, similar-
ities, and potential synergies from the integration of these solutions. We’ll also discuss
potential synergies with Central Finance, which, to a certain extent, might be an inter-
esting option for the same type of customers who are running their businesses in
multi-ERP backend systems.
SAP Supplier Relationship Management
The SAP SRM solution will be supported by SAP until the end of 2027 in mainstream
maintenance mode, which will be followed by an additional three years of extended
maintenance until the end of 2030. SAP S/4HANA for central procurement in some
6 Sourcing and Procurement
240
areas can play the role of SAP SRM’s successor, but there are some key differences in the
concepts of both procurement solutions.
The most fundamental difference is that SAP S/4HANA for central procurement works
like a purchasing control center or a remote-control unit for procurement processes
that take place in integrated backend systems. In contrast, SAP SRM is the central trans-
actional engine where all procurement transactions are both initiated and executed.
For SAP S/4HANA for central procurement, only a limited scope of configuration must
be synchronized with connected SAP backend systems. Most of the data objects are val-
idated online in backend SAP systems via synchronous OData calls.
Note
SAP S/4HANA can be integrated with SAP SRM, but only when SAP SRM is deployed on
a separate server. The co-deployment of SAP SRM as an add-on to an ERP system is sup-
ported with SAP ERP, but it isn’t supported with SAP S/4HANA. For more details, refer
to SAP Note 2611066.
SAP Ariba
SAP S/4HANA for central procurement should not be considered as an alternative solu-
tion to SAP Ariba, as both solutions are complementary to each other.
As an example, central requisitioning in SAP S/4HANA for central procurement can be
integrated with guided buying in SAP Ariba, which can act as the central user frontend
for shopping cards/purchase requisition management for casual users. In this scenario,
you can flexibly define where approvals will take place: maintained in guided buying,
moved to central procurement, or left in backend systems.
In addition, more SAP Ariba integration scenarios are available, such as SAP Ariba Con-
tracts integration.
Apart from functional and business process benefits, there are further advantages in
the system integration and architecture area. You don’t need to connect SAP Ariba to
each and every backend system, but only to a single SAP S/4HANA for central procure-
ment system (this capability is still partially a roadmap item).
Central Finance
Central procurement and Central Finance create an interesting combination of innova-
tive SAP products that can provide substantial benefits for clients who are running
their businesses in complex multi-backend system environments. Both solutions can
run in a single SAP S/4HANA instance, and process centralization opportunities can
create further synergies between the two LoBs. We’ve described Central Finance in more
detail in Chapter 2, Section 2.3.13.
241
6.3 SAP S/4HANA for Central Procurement
6
6.3.2 Key Central Procurement Functionality
In this section, we’ll walk through key features provided by SAP S/4HANA for central
procurement. The following functionalities are available:
� Central requisitioning
The functional scope of central requisitioning in SAP S/4HANA for central procure-
ment covers creation and maintenance of purchase requisitions, which, once cre-
ated, can be further processed and approved using workflows. After purchase
requisitions are approved, the follow-on steps take place in the source system; for
example, as a follow-up action, you can assign the source of supply and convert your
purchase requisition into a purchase order. All these actions, such as assignment,
change, or removal of the source of supply are triggered centrally from the Manage
Purchase Requisitions Centrally (MPRC) app in SAP Fiori and are executed in back-
end systems online.
� Central purchasing
The central purchasing functionality enables centralized access to purchasing docu-
ments from all connected backend systems. You have direct access to purchase
orders from all backend systems, and you can perform centrally typical actions such
as purchase order release or purchase order approval. You can also create purchase
orders directly from central procurement. Just as in central requisitioning, all
actions are triggered from central procurement (Manage Purchase Orders Centrally
[MPOC] app), while actual execution takes place in the backend system.
� Central sourcing
The central sourcing functionality in SAP S/4HANA for central procurement pro-
vides a centralized overview of all purchasing needs across the entire group, based
on the information from all the connected backend systems. It also enables you to
source for all plants centrally from a single SAP S/4HANA for central procurement
interface. Based on purchase requisitions from all the connected backend systems,
you can create central requests for quotations, and then after the bidding process,
you can enter central supplier quotations. In the final step, based on the awarded
supplier quotations, you can create purchase orders or central purchase contracts.
� Central purchase contract management
The central purchase contract management functionality in SAP S/4HANA for cen-
tral procurement enables you to create central purchase contracts and distribute
them to connected backend systems. By defining distribution criteria, you can cen-
trally define how these central contracts should be consumed by entities within
your organization. After distribution to connected backend systems, contracts or
scheduling agreements are created locally in these connected systems. As of SAP
S/4HANA 2020, there’s an additional feature linking contracts in SAP S/4HANA for
central procurement and SAP S/4HANA for enterprise contract management, which
will enable you to collect all legal obligations related to a contract centrally in a sin-
gle application.
6 Sourcing and Procurement
242
� Central purchasing analytics
The final element—central purchasing analytics—provides centralized reporting
and analytics capabilities aggregating procurement data from all connected back-
end systems. SAP S/4HANA for central procurement enables you to have not only
central and holistic views of all the purchasing activities in the entire organization
but also a more detailed and granular view focused on the purchasing situation in
each of the connected backend systems separately.
6.4 Sourcing and Procurement in SAP S/4HANA Cloud
SAP S/4HANA Cloud offers all the key processes for companies to execute their sourc-
ing and procurement activities. In this section, we’ll divide the features into different
areas and explain for each area what processes and functionalities are included, as fol-
lows:
� Supplier management
For the supplier management process, SAP S/4HANA Cloud offers two key features:
(1) classification and segmentation of suppliers to enable companies to assess and
classify their suppliers at regular intervals, and (2) the supplier evaluation and perfor-
mance monitoring, where a questionnaire can be sent out to appraisers to evaluate
suppliers. Questionnaire-based results can be combined with a real-time performance
overview across operational procurement transactions and defined criteria, such as
on-time delivery, to provide a complete view of your supplier’s performance.
� Sourcing and contract management
SAP S/4HANA Cloud offers companies all the required functionalities to execute
their sourcing and contract management activities. They can manage the source
lists to specify the allowed sources for a material plant and manage the info records
to specify certain information about the material/supplier, such as pricing informa-
tion. Other features include quota arrangements, RFQs to a supplier, and supplier
quotations comparisons. From a contract management perspective, standard func-
tionalities are available to manage purchasing contracts as scheduling agreements.
Sourcing processes also can be extended by integrating with SAP Ariba capabilities
to collaborate with suppliers.
� Operational procurement
The following key features are included for operational procurement:
– Self-service requisitioning: SAP S/4HANA Cloud enables you to copy purchase
requisitions, select products from catalog or by free text, use the shopping on
behalf functionality, process purchase orders, and process confirmations.
– Requirements processing: The functionalities provided here are apps to manage
purchase requisitions and the workflow for either automatic, one-step, or two-step
243
6.4 Sourcing and Procurement in SAP S/4HANA Cloud
6
approvals. SAP S/4HANA Cloud offers a mass-change capability to enable users to
trigger mass changes for specific values.
– Purchase order processing: Similar to purchase requisitions, SAP S/4HANA pro-
vides standard apps to allow users to manage purchase orders through a single
app, making mass changes to purchase orders and monitoring the follow-on pro-
cesses.
– Service purchasing and recording: The features that are available here are service
purchasing, for example, for consulting services, managing service entry sheets
to record the services that have been performed (manually or automatically via
time sheets) and finally the approval process of all the entry sheets.
– Purchase order collaboration: Features are included for collaboration with your
suppliers via the Ariba Network or an external supplier system. The supported
processes are sending purchase orders (including attachments), receiving confir-
mation and advanced shipping notifications (ASNs), sending goods receipts, and
monitoring capabilities, such as troubleshooting errors in outbound messages.
� Invoice management
The Managing Supplier Invoice app (with reference to purchase order items) is a sin-
gle app that gives you all the relevant information to monitor statuses and determine
follow-up actions. It offers functionalities to upload invoice documents, manage sup-
plier invoice lists, and support the invoicing processes from consignment stock and
the down payment processes for purchase orders. Processing of incoming supplier
invoices can be enhanced by integration with SAP Ariba, optical character recogni-
tion (OCR) scanning, and electronic data interchange (EDI).
� Central procurement
Central procurement gives companies the capability to integrate SAP S/4HANA
Cloud with backend ERP systems in the client’s system landscape to offer centralized
procurement processes over the entire system.
� Procurement analytics
The procurement overview provides you with all the operational and analytical pro-
curement information on a single page. It offers users a set of actionable operational
and analytical cards that can be easily rearranged as needed, and filters are provided
as required to drill down to the needed information. In addition, monitoring capa-
bilities enable users to quickly identify and navigate to the related apps to resolve
issues, such as overdue purchase orders, scheduling agreement items, and missing
supplier confirmations.
Finally, the procurement analytics functionality has been enhanced with the option to
use embedded analytics in SAP S/4HANA Cloud, powered by SAP Analytics Cloud. SAP
delivers predefined content for procurement (the Purchasing Spend Dashboard app),
which enables multilevel analyses of the purchasing spend details. This dashboard
6 Sourcing and Procurement
244
presents analyzed spend data in different formats, including graphs and tables, at dif-
ferent levels of granularity and organizational structures.
With every quarterly release, SAP S/4HANA Cloud incorporates more functionality.
Therefore, it’s always valuable to check back in to see what’s available.
6.5 Outlook
SAP S/4HANA will continue strengthening the capabilities of intelligent and auto-
mated procurement. The target is to drive the evolution toward the autonomous oper-
ational procurement processes powered by robotic process automation (RPA) and
machine learning. More and more sourcing and procurement decisions will be made
by intelligent assistants operating in autonomous mode.
Table 6.2 lists selected key innovations scheduled for sourcing and procurement in the
next SAP S/4HANA releases for 2021 and beyond.
Area Current Planned Innovation
Invoice and payables management � Improved machine learning capabilities to opti-
mize invoice process
� Improved transparency of intercompany trans-
actions within one group with an automatic
customer and supplier invoice process
Operational purchasing � Use of the digital assistant to execute procure-
ment processes
� Enhanced offering of automated processes and
machine learning across the procure-to-pay pro-
cess for supplier confirmation, purchase requisi-
tions, and purchase orders
Central procurement � Integration of non-SAP transactional systems as
backend systems in central procurement
Spend visibility � Embedded dashboards for purchasing and off-
contract spend in SAP S/4HANA
� Monitoring of missing exchange rates between
document and display currency
Conversational voice interfaces and
machine learning
� Use of the digital assistant to execute
procurement processes
� Automation of processes and resolve issues via
machine learning algorithms and prediction tech-
niques
� Provides a confidence level for purchase
requisitions
Table 6.2 Outlook for Sourcing and Procurement with SAP S/4HANA
245
6.6 Summary
6
6.6 Summary
SAP S/4HANA resolves some of today’s C-level key challenges by helping you improve
your supply chain visibility and transparency through better monitoring tools and
real-time data. With embedded advanced analytics, companies now can run advanced
analytics at any point in time to react quickly to changes in their environment and
have better insights for negotiation.
In this chapter, we discussed how simplified processes and data, reduced complexity,
and standard integration with SAP Ariba allow more optimized processes, a single source
of truth, and improved collaboration capabilities, such as many-to-many secured
network collaboration with trading partners. We also looked at the machine learning
capabilities that will continuously be added to SAP S/4HANA core capabilities as a step
toward an intelligent enterprise, and how to centralize procurement processes with
SAP S/4HANA for central procurement.
In the next chapter, we’ll take a look at the final major functional areas of interest:
research and development and asset management.
7
Contents
Foreword from Matt Schwartz ......................................................................................................... 19
Preface ....................................................................................................................................................... 21
1 Introduction: From Digital Transformation to the Intelligent Enterprise 27
1.1 Cornerstones of the Intelligent Enterprise ................................................................ 28
1.1.1 Operational Automation and Real-Time Steering ...................................... 29
1.1.2 Intelligent Technologies ....................................................................................... 32
1.2 Integrated Intelligent Enterprise .................................................................................... 36
1.2.1 Layers of the Intelligent Enterprise .................................................................. 36
1.2.2 Next-Generation End-to-End Processes ......................................................... 38
1.2.3 SAP Business Technology Platform .................................................................. 50
1.2.4 Integration as an Enabler .................................................................................... 52
1.3 Editions and Deployment Options ................................................................................. 56
1.3.1 Deployment Overview .......................................................................................... 56
1.3.2 SAP S/4HANA ........................................................................................................... 60
1.3.3 Private Cloud ............................................................................................................ 61
1.3.4 SAP S/4HANA Cloud, Extended Edition .......................................................... 62
1.3.5 SAP S/4HANA Cloud .............................................................................................. 63
1.3.6 Deployment Considerations ............................................................................... 64
1.4 Summary ................................................................................................................................... 66
2 Finance 67
2.1 The CFO Agenda ..................................................................................................................... 67
2.2 Industry Pain Points and SAP S/4HANA Benefits .................................................... 70
2.2.1 Driving Integration of Information .................................................................. 70
2.2.2 Driving Enterprise Cost Reductions .................................................................. 72
2.2.3 Measuring Business Performance .................................................................... 72
2.2.4 Optimizing Planning, Budgeting, and Forecasting ..................................... 73
2.2.5 Executing Continuous Finance Improvements ............................................ 74
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2.2.6 Providing Inputs to Enterprise Strategy .......................................................... 75
2.2.7 Developing Talent in the Finance Organization .......................................... 76
2.3 Key Finance Functionality .................................................................................................. 77
2.3.1 Universal Journal .................................................................................................... 77
2.3.2 Material Ledger and Transfer Pricing .............................................................. 81
2.3.3 New Asset Accounting .......................................................................................... 84
2.3.4 Cash and Liquidity Management ...................................................................... 86
2.3.5 Revenue Accounting and Reporting ................................................................. 91
2.3.6 Profitability Analysis .............................................................................................. 92
2.3.7 Predictive Accounting ........................................................................................... 96
2.3.8 Advanced Financial Closing ................................................................................ 98
2.3.9 Financial Planning .................................................................................................. 100
2.3.10 Consolidation and Group Reporting ................................................................ 103
2.3.11 Advanced Intercompany Matching and Reconciliation ............................ 112
2.3.12 Tax and Compliance Management .................................................................. 116
2.3.13 Central Finance ....................................................................................................... 121
2.4 Finance in SAP S/4HANA Cloud ....................................................................................... 147
2.5 Outlook ...................................................................................................................................... 149
2.6 Summary ................................................................................................................................... 149
3 Manufacturing 151
3.1 Industry Pain Points and SAP S/4HANA Benefits .................................................... 151
3.2 Key Manufacturing Functionality .................................................................................. 155
3.2.1 Product Master Optimization ............................................................................ 155
3.2.2 Production Planning and Detailed Scheduling ............................................. 155
3.2.3 Material Requirements Planning ...................................................................... 156
3.2.4 Production Operations and Engineering ........................................................ 161
3.2.5 Complex, Discrete, and Component Assembly Manufacturing ............. 163
3.2.6 Process Manufacturing ........................................................................................ 165
3.2.7 Supply Chain Analytics ......................................................................................... 167
3.3 Manufacturing in SAP S/4HANA Cloud ....................................................................... 167
3.4 Outlook ...................................................................................................................................... 170
3.5 Summary ................................................................................................................................... 171
9
Contents
4 Supply Chain 173
4.1 Industry Pain Points and SAP S/4HANA Benefits .................................................... 173
4.2 Key Supply Chain Functionality ...................................................................................... 176
4.2.1 Data Model Simplification .................................................................................. 176
4.2.2 Inventory Valuation and Advanced Available-to-Promise ....................... 177
4.2.3 Extended Warehouse Management ................................................................ 185
4.2.4 Transportation Management ............................................................................ 194
4.2.5 Catch Weight Management ............................................................................... 197
4.2.6 Quality Management ............................................................................................ 198
4.2.7 Commodity Management ................................................................................... 199
4.2.8 Stockroom Management ..................................................................................... 200
4.3 Supply Chain in SAP S/4HANA Cloud ........................................................................... 201
4.4 Outlook ...................................................................................................................................... 202
4.5 Summary ................................................................................................................................... 204
5 Sales, Marketing, Commerce, and Service Management 205
5.1 Industry Pain Points and SAP S/4HANA Benefits .................................................... 205
5.2 Key Sales Functionality ....................................................................................................... 208
5.2.1 Data Model Simplification .................................................................................. 208
5.2.2 Sales Order Fulfillment and Monitoring ......................................................... 209
5.2.3 Condition Contract Settlement ......................................................................... 214
5.2.4 Foreign Trade ........................................................................................................... 215
5.2.5 Credit Management and Revenue Accounting ............................................ 215
5.3 Key Marketing and Commerce Functionality ........................................................... 216
5.3.1 Customer Relationship Management ............................................................. 216
5.3.2 Billing and Revenue Management ................................................................... 217
5.4 Key Service Management Functionality ..................................................................... 218
5.4.1 Optimized Service and Service Master Data Management ..................... 218
5.4.2 Service Parts and Service Agreement Management .................................. 219
5.5 Sales, Marketing, Commerce, and Service Management in
SAP S/4HANA Cloud ............................................................................................................. 220
5.6 Outlook ...................................................................................................................................... 222
5.7 Summary ................................................................................................................................... 223
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6 Sourcing and Procurement 225
6.1 Industry Pain Points and SAP S/4HANA Benefits .................................................... 225
6.2 Key Sourcing and Procurement Functionality .......................................................... 228
6.2.1 Operational Purchasing ........................................................................................ 228
6.2.2 Invoice Management ............................................................................................ 232
6.2.3 Sourcing and Contract Management .............................................................. 234
6.2.4 Supplier Evaluation and Analytics .................................................................... 235
6.2.5 Intelligent Procurement with Machine Learning ........................................ 236
6.3 SAP S/4HANA for Central Procurement ...................................................................... 237
6.3.1 Central Procurement and Other SAP Solutions ............................................ 239
6.3.2 Key Central Procurement Functionality .......................................................... 241
6.4 Sourcing and Procurement in SAP S/4HANA Cloud ............................................... 242
6.5 Outlook ...................................................................................................................................... 244
6.6 Summary ................................................................................................................................... 245
7 R&D and Asset Management 247
7.1 Industry Pain Points and SAP S/4HANA Benefits .................................................... 248
7.2 Key Research and Development Functionality ........................................................ 250
7.2.1 SAP Innovation Management ............................................................................ 250
7.2.2 SAP Enterprise Portfolio and Project Management .................................... 251
7.2.3 SAP Product Lifecycle Management ................................................................. 253
7.2.4 Product Compliance .............................................................................................. 254
7.3 Key Asset Management Functionality ......................................................................... 256
7.3.1 Maintenance Planning and Scheduling .......................................................... 256
7.3.2 Maintenance Operation and Execution .......................................................... 258
7.3.3 SAP Asset Intelligence Network ......................................................................... 259
7.3.4 Mobile Asset Maintenance ................................................................................. 260
7.4 R&D and Asset Management in SAP S/4HANA Cloud .......................................... 260
7.5 Outlook ...................................................................................................................................... 261
7.6 Summary ................................................................................................................................... 264
11
Contents
8 Analytics and Reporting 267
8.1 Evolution of Analytics .......................................................................................................... 268
8.2 Operational Reporting ........................................................................................................ 270
8.2.1 ABAP-Based Reports .............................................................................................. 271
8.2.2 Embedded Analytics .............................................................................................. 271
8.2.3 Native SAP HANA Applications .......................................................................... 277
8.2.4 Embedded SAP Business Warehouse and SAP Business
Planning and Consolidation ............................................................................... 278
8.2.5 SAP Analysis for Microsoft Office ...................................................................... 279
8.3 Enterprise-Wide Reporting ............................................................................................... 280
8.3.1 SAP HANA Enterprise Analytics ......................................................................... 281
8.3.2 SAP Business Warehouse on SAP HANA ......................................................... 282
8.3.3 SAP BW/4HANA ...................................................................................................... 283
8.3.4 SAP Data Warehouse Cloud ................................................................................ 284
8.3.5 SAP Analytics Cloud ............................................................................................... 285
8.3.6 SAP Digital Boardroom ......................................................................................... 286
8.3.7 SAP Profitability and Performance Management ....................................... 288
8.4 Reporting in a Hybrid Landscape .................................................................................... 289
8.5 Cognitive Analytics ............................................................................................................... 291
8.6 Big Data Analytics and Data Lakes ................................................................................ 292
8.7 SAP Data Intelligence .......................................................................................................... 295
8.8 Summary ................................................................................................................................... 299
9 Industry Solutions 301
9.1 The SAP Strategy for Industry Solutions ..................................................................... 301
9.1.1 SAP Industry Solutions in the Core ................................................................... 302
9.1.2 SAP Model Company ............................................................................................. 303
9.1.3 Industry 4.0 Solutions ........................................................................................... 304
9.1.4 SAP’s Industry Cloud .............................................................................................. 304
9.2 SAP S/4HANA Industry Sectors ....................................................................................... 305
9.2.1 Energy and Natural Resources ........................................................................... 306
9.2.2 Service Industries ................................................................................................... 307
9.2.3 Consumer Industries ............................................................................................. 307
9.2.4 Discrete Industries ................................................................................................. 310
Contents
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9.2.5 Financial Services .................................................................................................... 311
9.2.6 Public Services ......................................................................................................... 313
9.3 Adapting to Global Change ............................................................................................... 314
9.4 Summary ................................................................................................................................... 315
10 SAP S/4HANA Cloud 317
10.1 Considerations and Value Proposition ........................................................................ 317
10.2 Core Functional Capabilities ............................................................................................. 320
10.3 Deployment ............................................................................................................................. 325
10.3.1 Fit-to-Standard ........................................................................................................ 326
10.3.2 Deployment Resources ......................................................................................... 327
10.3.3 SAP Best Practices Explorer ................................................................................. 331
10.3.4 Self-Service Configuration User Interface ...................................................... 331
10.4 SAP S/4HANA Cloud, Extended Edition ....................................................................... 332
10.4.1 Criteria for Choosing SAP S/4HANA Cloud, Extended Edition ................ 333
10.4.2 Migration from SAP S/4HANA Cloud, Extended Edition to
SAP S/4HANA Cloud .............................................................................................. 335
10.5 Content Lifecycle Management ...................................................................................... 337
10.6 Summary ................................................................................................................................... 339
11 SAP S/4HANA and the SAP Landscape 341
11.1 Sourcing and Procurement: SAP Ariba ......................................................................... 342
11.1.1 Sourcing and Contracts ........................................................................................ 343
11.1.2 Requests and Purchases ....................................................................................... 344
11.1.3 Invoices and Payments ......................................................................................... 346
11.1.4 Intelligent Spend Management and SAP S/4HANA ................................... 348
11.2 Contingent Workforce Management: SAP Fieldglass ........................................... 350
11.2.1 Vendor Management System ............................................................................ 351
11.2.2 SAP Fieldglass and SAP S/4HANA ..................................................................... 352
11.3 Travel and Expense Management: SAP Concur ....................................................... 353
11.3.1 Travel Spend Management ................................................................................. 353
11.3.2 SAP Concur and SAP S/4HANA ........................................................................... 356
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Contents
11.4 Human Resources: SAP SuccessFactors ....................................................................... 356
11.4.1 Employee Data ........................................................................................................ 356
11.4.2 Talent Management .............................................................................................. 357
11.4.3 SAP SuccessFactors and SAP S/4HANA ........................................................... 359
11.4.4 SAP Human Capital Management for SAP S/4HANA ................................. 361
11.5 Customer Experience: SAP Customer Experience ................................................... 362
11.5.1 Marketing .................................................................................................................. 364
11.5.2 Commerce ................................................................................................................. 366
11.5.3 Sales ............................................................................................................................ 367
11.5.4 Services ...................................................................................................................... 368
11.5.5 Customer Data ........................................................................................................ 370
11.5.6 SAP Customer Experience and SAP S/4HANA ............................................... 371
11.6 Master Data Management: SAP Master Data Governance ................................ 372
11.7 Supply Chain Planning: SAP Integrated Business Planning for
Supply Chain ............................................................................................................................ 376
11.7.1 Sales and Operations Planning .......................................................................... 376
11.7.2 Demand Planning ................................................................................................... 377
11.7.3 Inventory Planning ................................................................................................. 378
11.7.4 Response and Supply Planning .......................................................................... 378
11.7.5 Control Tower .......................................................................................................... 380
11.7.6 SAP IBP and SAP S/4HANA ................................................................................... 381
11.8 Billing: SAP Billing and Revenue Innovation Management ............................... 381
11.8.1 Subscription Order Management ..................................................................... 382
11.8.2 Convergent Mediation .......................................................................................... 383
11.8.3 Charging .................................................................................................................... 383
11.8.4 Invoicing .................................................................................................................... 383
11.8.5 Customer Financial Management .................................................................... 384
11.8.6 SAP Billing and Revenue Innovation Management and
SAP S/4HANA ........................................................................................................... 384
11.9 Summary ................................................................................................................................... 384
12 SAP S/4HANA Architecture 387
12.1 The Journey from SAP ERP to SAP S/4HANA ............................................................. 387
12.1.1 The Evolution of SAP S/4HANA .......................................................................... 387
12.1.2 SAP S/4HANA as the Digital Core ..................................................................... 393
12.1.3 Integration of SAP Products in SAP S/4HANA ............................................... 394
12.1.4 The Roadmap to SAP S/4HANA and Innovations ........................................ 398
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12.2 SAP HANA Platform .............................................................................................................. 402
12.2.1 SAP HANA Database .............................................................................................. 403
12.2.2 Virtualization ........................................................................................................... 406
12.2.3 Scalability .................................................................................................................. 409
12.2.4 Recoverability .......................................................................................................... 410
12.2.5 SAP HANA Operations ........................................................................................... 417
12.2.6 SAP HANA Logical Deployment Options ......................................................... 423
12.2.7 SAP HANA Platform Services .............................................................................. 427
12.3 Hyperscaler Architecture .................................................................................................... 430
12.4 SAP S/4HANA Security ........................................................................................................ 431
12.5 SAP S/4HANA Core Data Models .................................................................................... 435
12.6 User Interface and User Experience .............................................................................. 436
12.7 Data Lifecycle Management ............................................................................................. 439
12.8 Development and Operations ......................................................................................... 441
12.9 Summary ................................................................................................................................... 448
13 Extensions 449
13.1 Business-Driven Development ........................................................................................ 449
13.1.1 Connecting People and Data .............................................................................. 451
13.1.2 Building Differentiating Cloud Applications ................................................. 451
13.1.3 Integrate Applications and Data ....................................................................... 452
13.1.4 Extending Core and Software-as-a-Service Solutions ............................... 453
13.2 SAP Business Technology Platform ............................................................................... 454
13.3 Extensibility Options for the Intelligent Enterprise Suite ................................... 457
13.3.1 Overview and Considerations ............................................................................ 457
13.3.2 In-App Extensibility ................................................................................................ 460
13.3.3 Classic Extensibility ............................................................................................... 463
13.3.4 Side-by-Side Extensibility .................................................................................... 464
13.4 SAP API Business Hub .......................................................................................................... 466
13.5 Summary ................................................................................................................................... 467
15
Contents
14 Intelligent Technologies 469
14.1 The Intelligent Enterprise and SAP Business Technology Platform ................ 469
14.2 Internet of Things .................................................................................................................. 472
14.3 Artificial Intelligence ............................................................................................................ 477
14.3.1 SAP AI Business Services Powered by Data Intelligence ............................ 478
14.3.2 SAP Conversational AI ........................................................................................... 478
14.3.3 SAP Intelligent Robotic Process Automation ................................................ 479
14.3.4 Artificial Intelligence in SAP S/4HANA ............................................................ 482
14.4 Blockchain ................................................................................................................................. 483
14.5 Data Intelligence .................................................................................................................... 484
14.6 Intelligent Technologies Use Cases ............................................................................... 488
14.6.1 Use Case 1: Consumer-Packaged Goods Industry ....................................... 488
14.6.2 Use Case 2: Oil and Gas Asset Maintenance for Upstream Plants ........ 491
14.7 Summary ................................................................................................................................... 493
15 Adoption Paths 495
15.1 Assessing Your Adoption Options .................................................................................. 497
15.1.1 SAP Readiness Check ............................................................................................. 497
15.1.2 Innovation Discovery for SAP Products ........................................................... 499
15.1.3 Process Discovery ................................................................................................... 500
15.1.4 SAP S/4HANA Business Value Advisor ............................................................ 501
15.1.5 SAP Transformation Navigator .......................................................................... 502
15.1.6 SAP HANA Sizing Requirements ........................................................................ 503
15.2 New Implementation .......................................................................................................... 504
15.2.1 Adoption Approach ................................................................................................ 504
15.2.2 Considerations ........................................................................................................ 505
15.2.3 SAP S/4HANA Migration Cockpit ...................................................................... 507
15.3 System Conversion ............................................................................................................... 511
15.3.1 Adoption Approach ................................................................................................ 512
15.3.2 Considerations ........................................................................................................ 513
15.3.3 SAP Conversion Software, Tools, and Accelerators ..................................... 515
15.3.4 SAP S/4HANA Conversion Prerequisites ......................................................... 525
15.3.5 Minimizing Downtime ......................................................................................... 532
Contents
16
15.4 Selective Data Transition ................................................................................................... 536
15.4.1 Adoption Approach ................................................................................................ 537
15.4.2 Considerations ........................................................................................................ 538
15.5 Housekeeping Activities ..................................................................................................... 540
15.6 Summary ................................................................................................................................... 541
16 Implementation Method and Accelerators 543
16.1 What Is SAP Activate? ......................................................................................................... 543
16.2 SAP Activate Methodology ............................................................................................... 547
16.2.1 Prepare ....................................................................................................................... 548
16.2.2 Explore ....................................................................................................................... 549
16.2.3 Realize ........................................................................................................................ 550
16.2.4 Deploy ........................................................................................................................ 551
16.2.5 Quality Gates ........................................................................................................... 551
16.3 SAP Best Practices .................................................................................................................. 553
16.4 SAP Activate Tools ................................................................................................................. 556
16.4.1 Self-Service Configuration ................................................................................... 557
16.4.2 Expert Configuration ............................................................................................. 557
16.4.3 SAP Central Business Configuration ................................................................ 558
16.4.4 SAP Solution Builder Tool .................................................................................... 558
16.4.5 SAP Solution Manager .......................................................................................... 558
16.5 SAP Model Company ............................................................................................................ 559
16.6 Summary ................................................................................................................................... 564
17 Building the Business Case 565
17.1 Common SAP S/4HANA Business Case Challenges ................................................ 566
17.2 Value Dimensions .................................................................................................................. 568
17.2.1 SAP S/4HANA Core ................................................................................................. 570
17.2.2 The Intelligent Enterprise .................................................................................... 572
17.3 Alignment to Stakeholders and Business Outcomes ............................................ 573
17.4 Proven Process for Building a Case for Change ........................................................ 575
17.4.1 Recognize the Need ............................................................................................... 576
17.4.2 Frame the Opportunity ......................................................................................... 578
17
Contents
17.4.3 Conduct Discovery ................................................................................................. 579
17.4.4 Assess the Value ..................................................................................................... 581
17.4.5 Validate Proposal .................................................................................................... 589
17.5 Develop Your IT Roadmap ................................................................................................. 591
17.5.1 Engage Phase: Analyzing the Current Mode of Operations ..................... 594
17.5.2 Envision Phase: Exploring the Target Operational Model ........................ 594
17.5.3 Evaluate Phase: A Deep Dive into the Transformation Approach ......... 595
17.5.4 Enable Phase: Building Your Roadmap ........................................................... 596
17.6 Valuable Lessons Learned .................................................................................................. 596
17.7 Summary ................................................................................................................................... 597
18 Customer Case Studies 599
18.1 Multinational Industrial Company ................................................................................ 599
18.1.1 Vision .......................................................................................................................... 601
18.1.2 IT Project .................................................................................................................... 601
18.1.3 Benefits ...................................................................................................................... 602
18.1.4 Path Forward ............................................................................................................ 602
18.2 Multinational Service Company ..................................................................................... 604
18.2.1 Vision .......................................................................................................................... 604
18.2.2 IT Project .................................................................................................................... 604
18.2.3 Benefits ...................................................................................................................... 605
18.2.4 Path Forward ............................................................................................................ 607
18.3 Manufacturing Company ................................................................................................... 608
18.3.1 Vision .......................................................................................................................... 608
18.3.2 IT Project .................................................................................................................... 608
18.3.3 Benefits ...................................................................................................................... 609
18.3.4 Path Forward ............................................................................................................ 610
18.4 Food Industry Group ............................................................................................................ 610
18.4.1 Vision .......................................................................................................................... 610
18.4.2 IT Project .................................................................................................................... 611
18.4.3 Benefits ...................................................................................................................... 612
18.4.4 Path Forward ............................................................................................................ 612
18.5 Automotive Company ......................................................................................................... 612
18.5.1 Vision .......................................................................................................................... 612
18.5.2 IT Project .................................................................................................................... 613
18.5.3 Benefits ...................................................................................................................... 613
18.5.4 Path Forward ............................................................................................................ 613
Contents
18
18.6 Life Sciences ............................................................................................................................. 614
18.6.1 Vision .......................................................................................................................... 614
18.6.2 IT Project .................................................................................................................... 614
18.6.3 Benefits ...................................................................................................................... 614
18.6.4 Path Forward ............................................................................................................ 615
18.7 Global Telecom Provider .................................................................................................... 615
18.7.1 Vision .......................................................................................................................... 615
18.7.2 IT Project .................................................................................................................... 616
18.7.3 Benefits ...................................................................................................................... 616
18.7.4 Path Forward ............................................................................................................ 617
18.8 Global Automobile Maker ................................................................................................. 617
18.8.1 Vision .......................................................................................................................... 617
18.8.2 IT Project .................................................................................................................... 617
18.8.3 Benefits ...................................................................................................................... 618
18.8.4 Path Forward ............................................................................................................ 618
18.9 Summary ................................................................................................................................... 619
The Authors ............................................................................................................................................. 621
Index .......................................................................................................................................................... 625
625
Index
A
ABAP ............................................................................. 77
ABAP Database Connectivity (ADBC) ........... 521
ABAP layer ............................................................... 388
ABAP Test Cockpit ................................................ 519
ABAP Web Dynpro ................................................ 272
ABAP Workbench .................................................. 458
ABAP-based reports ............................................. 271
ABC analysis report .............................................. 193
Accelerate innovation approach .................... 122
Accelerators ..................... 327, 506, 543, 546–547
SAP Model Company ...................................... 562
Account-based CO-PA .................................... 92–93
Accounts payable ........................................ 232, 606
Accounts receivable ............................................. 606
Accruals management ........................................ 237
Acquisition and production cost (APC) .......... 85
Acting ........................................................................... 31
Actionable insights .............................................. 269
Actual allocations ................................................. 103
Actual cash flow analysis ...................................... 90
Add-ons ........................................................... 530–531
Adjust Assigned Liquidity Items – Anomaly
Detection app ....................................................... 90
Adobe LiveCycle Designer ................................. 462
Adoption .................................................................. 495
Central Finance ................................................. 122
new implementation ...................................... 504
options ................................................................. 497
roadmap .............................................................. 398
selective data transition ................................ 536
strategy ................................................................ 401
system conversion ........................................... 511
Advanced analytics .............................................. 206
Advanced available-to-promise (aATP) ....... 175,
177–178, 202, 207
ABC ......................................................................... 184
back order processing .................................... 179
outlook ................................................................. 204
product allocation ........................................... 183
release for delivery .......................................... 184
supply protection ............................................. 184
Advanced DataStore object .............................. 283
Advanced financial closing .................................. 98
monitor ................................................................... 98
Advanced intercompany matching and
reconciliation (ICMR) ............................ 107, 112
concepts .............................................................. 112
process ................................................................. 114
selecting your option ..................................... 115
workflows and email inquiries ................... 115
Advanced shipping .............................................. 195
Aggregate tables .......................................... 177, 435
Agile implementation method ....................... 546
Agility ........................................................................ 570
Agribusiness ........................................................... 308
ALE technologies .................................................. 374
Allocation Flow app ............................................. 103
Allocations ....................................................... 79, 103
Alternative-based confirmation (ABC) ........ 184
report .................................................................... 193
Amazon Web Services (AWS) ........................... 295
Amount Field Length Extension (AFLE) ...... 312
Analysis Path Framework ................................. 274
Analytical apps ....... 174, 269, 273, 275, 434, 436
Analytical list pages ............................................. 276
Analytics ............................ 267, 393, 456, 471, 566
big data ............................................................... 292
central purchasing .......................................... 242
cognitive .............................................................. 291
embedded ........................................................... 271
evolution ............................................................. 268
hybrid landscape ............................................. 289
landscape ............................................................ 269
model .................................................................... 588
procurement ...................................................... 243
service monitoring .......................................... 220
supplier ................................................................ 235
supply chain ...................................................... 167
workforce ............................................................ 359
API Explorer ............................................................ 467
Application development ................................. 470
Application layer .................................................. 433
Application lifecycle management
(ALM) ........................................................... 387, 533
Application prerequisites ................................. 527
Application programming interfaces
(APIs) .................................. 52, 360, 398, 450, 466
Watson ........................................................ 270, 291
Application rationalization .............................. 293
Application services ............................................ 427
Index
626
Architecture ......................................... 387, 504, 526
data models ........................................................ 435
hyperscalers ....................................................... 430
SAP HANA ........................................................... 402
technical .............................................................. 389
UX and UI ............................................................ 436
Archiving .................................................................. 540
Ariba Network .................. 226, 343, 345, 349, 397
Artificial intelligence (AI) ........ 34, 291, 456, 477,
482
integration ............................................................. 53
ASAP methodology .............................................. 544
Aspirational organization .................................... 68
Assessment scope ................................................. 586
Asset accounting ...................................................... 84
improvements ...................................................... 85
Asset information system ................................. 261
Asset maintenance ............................................... 491
Asset management ........................... 247–248, 607
benefits ................................................................. 248
challenges ........................................................... 249
key functionality .............................................. 256
mobile ................................................................... 260
outlook ................................................................. 262
SAP S/4HANA Cloud ............................. 260–261
Asset networks ....................................................... 264
Asset resource scheduling ................................ 256
Asset strategy ......................................................... 263
Assign Maintenance Order Operations
app ......................................................................... 258
Assign Product to Product Allocation
app ......................................................................... 183
Assign Sold-To Party app ................................... 213
Asynchronous replication ................................ 415
Audit logging .......................................................... 433
Authentication ...................................................... 432
Automated alerts .................................................. 378
Automated Test Tool app .................................. 330
Automated Upload of General Ledger
Entries bot ........................................................... 481
Automatic Creation of Sales Orders from
Excel bot .............................................................. 482
AutoML ..................................................................... 297
Automobile maker ............................................... 617
Automotive company ......................................... 612
Automotive industry .......................................... 310
Availability .............................................................. 410
Available-to-promise (ATP) .................... 154, 157,
178, 202
check ...................................................................... 178
Average daily balance (ADB) ............................ 313
Azure IoT Edge ....................................................... 473
B
Back order processing (BOP) ............................. 179
global filters ........................................................ 180
Backup and recovery ............................................ 411
Bank accounting ...................................................... 87
Bank accounts ........................................................... 88
hierarchies ............................................................. 88
Bank automation .................................................. 348
Bank communication management ............... 86
Bank fee data ............................................................. 88
Bank reconciliation accounts ............................. 88
Bank relationship management ....................... 87
Bank risk analysis .................................................... 89
Bank statements ...................................................... 88
Basic shipping ......................................................... 195
deploy .................................................................... 195
Batch data communication (BDC) .................. 520
Batch jobs ......................................................... 74, 271
Batch master ........................................................... 187
Benchmarking ........................................................ 578
tool ......................................................................... 533
Big data ............................................................ 270, 292
Bill of material (BOM) ................................ 167, 566
Billing and revenue management ................. 213,
217, 221
Blockchain ................................................................ 483
application enablement ................................ 483
Bluefield approach ................................................ 615
Blueprints ................................................................... 37
Bots ............................................................................. 480
capabilities .......................................................... 481
Bottom-up prediction ........................................... 96
Brownfield approach ........................................... 511
Budgeting ......................................................... 73, 354
Buffer levels ............................................................. 160
demand-driven .................................................. 169
Build SAP like a factory ....................................... 418
Builder organization .............................................. 68
Building block ............................................... 555, 558
Business add-ins (BAdIs) .......................... 128, 463
Business case ................................................. 500, 565
alignment to stakeholders ............................ 573
assess the value ................................................. 581
capabilities and value drivers ...................... 586
challenges ............................................................ 566
conduct discovery ............................................ 579
core principles .................................................... 576
enterprise value streams ............................... 586
examples .............................................................. 596
frame the opportunity .................................... 578
627
Index
Business case (Cont.)
hypothesis examples ...................................... 585
model IT architecture ..................................... 587
process .................................................................. 575
recognize the need ........................................... 576
risks ........................................................................ 596
roadmap and change management ........ 588
SG&A value trap ............................................... 584
sponsership ......................................................... 577
validate proposal ............................................. 589
value dimensions ............................................. 568
Business Function Library (BFL) ..................... 435
Business model ............................................... 28, 579
component ......................................................... 581
Business outcomes .............................................. 573
Business partner ................................ 196, 227, 232
approach .......................................... 186, 525, 530
Business performance ........................................... 75
Business Process Model and Notation
(BPMN) ................................................................. 559
Business process monitoring .......................... 422
Business rules ......................................................... 128
Business Rules Framework plus (BRFplus) .... 91
Business transformation ......................... 574–575
Business-driven development ........................ 449
Business-to-business (B2B) ............................... 364
payments ............................................................. 347
Business-to-consumer (B2C) ............................ 364
C
Calculation views .................................................. 281
Callidus Cloud .............................................. 362, 367
Campaign management .................................... 365
Capacity planning ....................................... 152, 158
Capacity requirements .......................................... 72
Career development planning ........................ 358
Cargo transportation and logistics ................ 307
Case studies ............................................................. 599
automotive company ..................................... 612
food industry group ........................................ 610
global automobile maker ............................. 617
life sciences ......................................................... 614
manufacturing .................................................. 608
multinational industrial company ........... 599
multinational service company ................. 604
Cash and liquidity management ....................... 86
CDS views ............................................................... 90
versions ................................................................... 87
Cash flow analysis ................................................... 73
Cash Flow Analyzer app ........................................ 89
Cash management ............................. 73, 87–88, 90
Central Finance ................................................ 135
Cash operations ....................................................... 88
Cash pooling .............................................................. 89
Cash positioning ............................................ 90, 602
Catalog ............................................................. 218, 345
management ..................................................... 345
Catch weight management ..................... 197, 308
Central budgeting ................................................ 145
Central Finance ............... 121, 375, 539, 601, 603
activation and preparation ......................... 136
adoption scenarios ......................................... 121
advanced compliance reporting ............... 117
architecture ........................................................ 124
benefits ................................................................ 130
central payments ............................................. 133
central procurement ...................................... 240
data governance .............................................. 128
data persistence ............................................... 138
data replication ....................................... 125–126
defining your architecture ........................... 137
initial load .......................................................... 140
innovations ........................................................ 144
interface customizing and
monitoring .................................................... 126
non-SAP system ............................. 125, 143, 146
predictive accounting ....................................... 98
processes ............................................................. 132
real-time replication ...................................... 141
reconciliation reports .................................... 142
reporting ............................................................. 130
scope ..................................................................... 131
sidecar .................................................................. 602
source system preparation .......................... 137
tax management and reporting ............... 120
third-party tools ............................................... 143
versus SAP BW reporting .............................. 130
Central procurement .... 226, 237, 244, 604, 618
functionality ...................................................... 241
hub ......................................................................... 229
other SAP solutions ......................................... 239
SAP Fiori apps ................................................... 238
SAP S/4HANA Cloud ....................................... 243
Central Procurement Interface Monitor
app ......................................................................... 238
Central Procurement Job Monitor app ........ 239
Central Procurement Operations Monitor
app ......................................................................... 238
Central purchasing .............................................. 241
analytics .............................................................. 242
Central requisitioning ............................... 240–241
Index
628
Central sourcing .................................................... 241
Change Inbound Delivery app ......................... 192
Change management .......................................... 588
Change quotation ................................................. 220
Change Request Management (ChaRM) ...... 445
Change Transport System (CTS) ...................... 463
Chart of accounts .................................................. 148
Chemicals ................................................................. 306
Chief financial officer (CFO) ......................... 67, 76
Claims, returns, and refund
management ..................................................... 221
Classic extensibility ................................... 459, 463
Classification .......................................................... 254
Cleansing .................................................................. 540
Cloud applications ............................................... 451
Cloud factory .......................................................... 480
Cloud Foundry .................................... 372, 466, 476
Cloud vendors ........................................................ 472
Cluster manager .................................................... 415
Code adaption ........................................................ 506
Code Inspector .................................... 519, 521, 523
Code optimization ..................................... 511, 520
Code pushdown .................................. 208, 271, 284
Code remediation ................................................. 519
Code-page configuration ................................... 532
Coding block ...................................................... 78, 80
Central Finance ................................................. 138
dimension .............................................................. 79
measure .................................................................. 79
Cognitive analytics ............................ 270, 291–292
Cognitive computing .......................................... 268
Collaboration .......................................................... 206
Collaborative development .............................. 444
Collaborative requisitioning ............................ 345
Collection and dispute management ........... 133
Columnar storage ....................................... 403–404
Columnar structure ............................................. 406
Commerce ..................................................... 205, 366
benefits ................................................................. 205
key functionality .............................................. 216
marketing ............................................................ 365
outlook ................................................................. 222
SAP S/4HANA Cloud ....................................... 220
Commodity management ................................ 199
Commodity pricing ............................................. 200
Common Object Layer Framework ............... 218
Compare Supplier Quotations app ................ 234
Compatibility packs ................................... 402, 514
Compatibility views ........................................ 82, 84
Compensation management ........................... 358
Complex assembly manufacturing ............... 163
Compliance .................................................... 119, 353
Component business models .......................... 581
Component manufacturing ............................. 164
Composite CDS view ............................................ 390
CompositeProviders ............................................ 283
Compressed data ................................................... 404
Concur Detect ......................................................... 354
Concur Drive ........................................................... 354
Concur Expense ........................................... 353, 355
Concur Invoice ............................................. 353–355
Concur Request ...................................................... 354
Concur Travel ................................................ 353–354
Concur TripLink ..................................................... 354
Condition contract management (CCM) ..... 308
Condition contract settlement ........................ 214
benefits ................................................................. 215
Configure BOP Segment app ............................ 179
Configure BOP Variant app ............................... 179
Configure Product Allocation app .................. 183
Configure, price, and quotation (CPQ) .......... 367
Connection management .................................. 296
Consolidation ............................ 103, 105, 375, 600
capabilities .......................................................... 106
Central Finance ................................................. 135
ledger ........................................................... 108, 600
monitoring .......................................................... 109
selecting your option ...................................... 111
types ....................................................................... 106
versions ................................................................. 108
Consolidation Monitor ....................................... 109
Consolidation of investments ......................... 107
Constrained forecast ............................................ 380
Consumer industries ........................................... 307
Consumer products ............................................. 308
Consumer-packaged goods (CPG) .................. 488
Consumption CDS view ...................................... 390
Contact-to-lead ......................................................... 40
Content lifecycle management ....................... 337
timelines ............................................................... 338
Contextual marketing ......................................... 364
Contingent workforce management ............ 350
Continuous accounting ...................................... 105
Continuous business planning ....................... 443
Continuous release and deployment ............ 445
Continuous testing ............................................... 445
Contract accounts receivable and
payable .................................................................. 217
Contracts ........................................ 91, 234, 308, 343
changes ................................................................. 383
management ......................... 234, 242, 344, 368
repository ............................................................ 344
worklists ............................................................... 227
629
Index
Control tower ......................................................... 380
Conversational AI .......................................... 34, 478
Core data services (CDS) views ...... 90, 177, 187,
271–272, 278, 388, 393, 435, 462, 467, 504
ABAP-based ........................................................ 388
look up .................................................................. 390
Query Browser ................................................... 274
types ...................................................................... 390
Cost component ....................................................... 95
structure ................................................................. 95
Cost objects ............................................................. 141
mappings ............................................................ 129
Cost of goods manufactured (COGM) ............. 84
Cost of goods sold (COGS) .................................... 78
posting ..................................................................... 94
split ........................................................................... 95
Costing-based CO-PA ...................................... 92–94
restrictions ............................................................. 95
CPU utilization ....................................................... 426
Create Consolidation app .................................. 373
Create Mass Time Confirmations app .......... 258
Create Optimal Orders for Shipment app ... 155
Create Purchase Requisition app .................... 231
Create Supplier Invoices from Spreadsheets
bot .......................................................................... 481
Credit management ................................... 215, 221
Central Finance ................................................. 134
Cross-system process control (CSPC) ............ 146
Currencies ................................................................... 80
Currency translation ........................................... 107
Current mode of operations (CMO) .... 592–593
Custom analytical query .................................... 462
Custom business logic ........................................ 462
Custom business object ..................................... 462
Custom code ..................... 459, 506, 513, 523, 526
lifecycle management .................................... 444
migration worklist ........................................... 519
Custom fields .......................................................... 461
Custom Fields and Logic app ........................... 194
Customer attribution .......................................... 365
Customer centricity ............................................. 362
Customer contact center ................................... 369
Customer data ........................................................ 370
Customer engagement executive (CEE) ...... 338
Customer experience ................................ 342, 362
requirements ...................................................... 362
Customer management ..................................... 307
Customer order ..................................................... 206
Customer profiling ............................................... 365
Customer relationship management
(CRM) .......................................................... 207, 216
Customer success manager (CSM) ................ 338
Customer ticketing system .............................. 366
Customer-to-business (C2B) ............................ 364
Customer-vendor integration (CVI) .............. 232
Customs ................................................................... 215
Cutover ..................................................................... 551
Cyber threats .......................................................... 292
Cycle counting ....................................................... 178
D
Damage analysis ................................................... 257
Dangerous goods .................................................. 188
Dashboards ................................................................ 75
Data acquisition ............................................. 31, 268
Data aging ...................................................... 428, 439
Data analytics ........................................................ 268
Data archiving ....................................................... 540
Data cleansing ....................................................... 514
Data collection ...................................................... 106
Data Dictionary ..................................................... 520
Data discovery ....................................................... 296
Data distribution .................................................. 382
Data exploration ................................................... 268
Data flow .................................................................. 612
Data foundation ................................................... 268
Data governance ................................................... 296
Data harmonization ......................... 130, 142, 539
Data import API .................................................... 114
Data integration services .................................. 427
Data intelligence ................................................... 484
Data lakes ....................................................... 292–293
Central Finance ................................................ 138
users ...................................................................... 294
Data lifecycle management ............................. 439
Data management ...................................... 456, 470
Data Management and Landscape
Transformation (DMLT) ................................... 61
Data migration ................................... 507, 540, 545
strategy ................................................................ 505
Data model ..... 176, 178, 208, 377, 387, 435, 588
simplification .................................................... 391
Data modeling ....................................................... 297
Data Monitor .......................................................... 109
Data pipeline .......................................................... 296
Data protection ............................................ 255, 362
Data redundancy ......................................... 188, 608
Data release ............................................................ 107
Data replication ........................................... 186, 601
Data Replication Framework (DRF) ............... 374
Data selection ........................................................ 403
Index
630
Data synchronization ......................................... 366
Data temperature ................................................. 284
Data tiering ............................................................. 284
Data volume ........................................................... 290
Data volume management (DVM) ................ 533
work center ......................................................... 533
Data warehouse ..................................................... 600
Database hints ....................................................... 522
Database layer ........................................................ 434
Database Migration Option (DMO) .... 512, 516,
533
Database services .................................................. 428
Database Shared Library (DBSL) ...................... 415
Days payable outstanding (DPO) ......... 347, 606
Days sales outstanding (DSO) .......................... 347
Dead Stock Analysis app .................................... 194
Debt and investment management ................. 86
Decision factors ..................................................... 400
Decision makers .................................................... 573
Decision wizard ..................................................... 351
Defect Monitoring app ....................................... 199
Defense and security ........................................... 313
Deferred taxes ........................................................ 120
Define Consolidation Unit app ....................... 109
Deliverables ............................................................ 546
Delivery request (notification) ........................ 189
Delivery schedules ............................................... 161
Delta design workshops ..................................... 550
Delta shipping ........................................................ 415
Demand planning ....................................... 377, 610
Demand prioritization ....................................... 380
Demand sensing ................................................... 378
Demand-driven MRP ................................. 159, 310
Deploy phase ................................................ 329, 551
Deployment ..................................................... 56, 545
considerations ............................................ 64, 334
on-premise ............................................................. 60
paths ..................................................................... 495
private cloud ......................................................... 61
resources .............................................................. 327
SAP S/4HANA Cloud ................................ 63, 325
SAP S/4HANA Cloud, extended edition ...... 62
solutions ................................................................. 58
two-tier landscape .............................................. 66
Depooling/declustering ........................... 522–523
Deprecation ................................................................ 86
Descriptive analytics .............................................. 31
Descriptive reporting .......................................... 268
Design ........................................................................... 48
Design-to-operate .................................................... 47
solutions ................................................................. 49
Desktop agent ......................................................... 480
Desktop studio ....................................................... 480
Development studio ............................................ 480
DevOps .................................................. 441, 447, 456
extensions ............................................................ 447
Diagnostic analytics ............................................... 31
Digital assistants ........................................... 34, 479
Digital core ........................................... 342, 393, 575
Digital logistics hub .............................................. 615
Digital manufacturing .................... 155, 161, 612
Digital process automation ............................... 457
Digital transformation .................... 27–28, 32–33
manufacturing .................................................. 152
Digital twins ................................. 48, 473, 477, 492
Digital workers ......................................................... 35
Dimensions ............................................................... 79
Direct Store Delivery (LE-DSD) ......................... 197
Disaster recovery (DR) ......................................... 410
Discontinuation ..................................................... 158
Discount management ....................................... 347
Discover phase ....................................................... 327
Discovery .................................................................. 579
Discrete industries ................................................ 310
Discrete manufacturing ........................... 163, 168
Dispute case ............................................................... 73
Distributed manufacturing ............................... 170
DMO of SUM ........................................................... 516
Docker ........................................................................ 488
Document management .................................... 254
Document Relationship Browser .................... 141
Document splitting .............................................. 145
Domain models ....................................................... 37
Domain Names Service (DNS) .......................... 415
Dual-stack deployments .................................... 532
Dun & Bradstreet .................................................. 235
Duplication .............................................................. 212
Dynamic pricing ...................................................... 42
Dynamic tiering ........................................... 430, 440
E
Eclipse IDE ................................................................ 455
Edge computing ..................................................... 476
Editions ....................................................................... 56
eDocument Framework ...................................... 453
eDocuments ............................................................ 119
Electronic data interchange (EDI) ......... 164, 530
Elimination .............................................................. 107
Email inquiries ....................................................... 115
Embedded analytics ......................... 271, 279, 611
architecture ......................................................... 271
631
Index
Embedded BW ........................................................ 278
Embedded CRM ........................................... 207, 216
benefits ................................................................. 217
Embedded EWM ................................. 175, 185, 200
data redundancy .............................................. 189
inspection .................................................. 190, 198
objects ................................................................... 186
optimization and monitoring ..................... 192
outlook ................................................................. 203
simplification .................................................... 191
single system ...................................................... 186
tables ..................................................................... 188
Embedded PP-DS ................................................... 156
Embedded TM .............................................. 194–195
basic versus advanced ................................... 194
benefits ................................................................. 196
innovations ........................................................ 196
Employee data ....................................................... 356
Empowered people .............................................. 304
Enable phase ................................................. 593, 596
Encryption ............................................................... 433
End of life (EOL) ..................................................... 399
End-to-end processes ............................................. 38
design-to-operate ................................................ 47
example .................................................................. 38
lead-to-cash ........................................................... 40
recruit-to-retire .................................................... 45
source-to-pay ........................................................ 42
End-user training .................................................. 551
Energy and natural resources .......................... 306
Engage phase ................................................ 593–594
Engineered service ............................................... 562
Enterprise analytics ............................................. 289
Enterprise Controlling Consolidation
System (EC-CS) .................................................. 103
Enterprise Search .................................................. 230
Enterprise-wide reporting ....................... 267, 280
Environment, health, and safety .................... 264
Envision phase ............................................. 593–594
Evaluate phase ............................................. 593, 595
Event processing ................................................... 453
Exception handling .............................................. 232
Exception reporting ............................................. 271
Execute phase ........................................................ 593
Expected goods receipt (EGR) .......................... 188
Expense reimbursement ................................... 348
ExpenseIt ................................................................. 354
Experience workshops ........................................ 583
Expert configuration ................................. 556–557
Explore phase ............................................... 328, 549
Extended production operations ................... 162
Extended warehouse management
(EWM) ................................................ 185, 200, 396
data redundancy ............................................. 189
inspection ........................................................... 190
objects .................................................................. 186
optimization and monitoring .................... 192
simplification .................................................... 191
tables .................................................................... 188
Extension ledger ...................................................... 96
Extension versions .............................................. 107
Extensions ...................................................... 449, 453
options ........................................................ 457, 459
SAP Fiori apps ................................................... 438
External Machine Learning (EML)
Library .................................................................. 429
F
Fact sheet apps ................................... 174, 434, 436
Farm-to-consumer ............................................... 484
Fashion ..................................................................... 309
Feature Pack Stacks (FPS) ......................... 401, 517
Feedback management ...................................... 369
Field service management ............................... 369
Finance .............................................. 67, 96, 147, 395
AI ............................................................................ 482
business performance ....................................... 72
enterprise cost reductions ............................... 72
enterprise strategy ............................................. 75
functionality ......................................................... 77
fundamentals ....................................................... 69
improvements ...................................................... 74
integration of information ............................. 70
organization archetypes ................................. 68
outlook ................................................................. 149
planning, budgeting, and forecasting ........ 73
productivity ....................................................... 585
SAP S/4HANA Cloud ....................................... 147
talent ....................................................................... 76
Financial Accounting Standards Board
(FASB) ...................................................................... 91
Financial close ......................................... 74, 98, 605
intelligent .............................................................. 99
SAP S/4HANA Cloud ....................................... 147
Financial Plan Data – Write API ...................... 102
Financial planning ............................................... 100
classic ................................................................... 100
importing financial plan data .................... 101
SAP Analytics Cloud ....................................... 102
SAP BPC for SAP S/4HANA ........................... 101
selecting your option ..................................... 103
Index
632
Financial products subledger ........................... 312
Financial reporting ............................................... 605
Financial risk management ................................. 86
Financial services .................................................. 311
Financial statement ................................................ 73
Fit-gap workshop ........................................ 550, 554
Fit-to-standard ............................................. 326, 335
Flexible upload ...................................................... 106
Focused Build for SAP Solution
Manager ..................................................... 442–443
Focused Insights for SAP Solution
Manager ............................................................... 419
Food industry group ............................................ 610
Forecasting ....................................................... 73, 252
Foreign trade ................................................ 207, 215
Free text .................................................................... 236
Freight order management (FOM) ................. 191
Functional conversion ........................................ 515
tools ....................................................................... 517
Functional move ................................................... 537
Functional restrictions ....................................... 527
Future mode of operations (FMO) ....... 592–593
Future-proofing ..................................................... 399
G
General Data Protection Regulation
(GDPR) ........................................................ 370, 434
General ledger ........................................................... 85
accounts ................................................................. 88
classic .................................................................... 524
predictive accounting ....................................... 96
Generally Accepted Accounting Principles
(GAAP) ........................................................... 91, 178
Gigya .......................................................................... 362
GitHub repository ................................................ 447
Global accounting hierarchies ........................... 88
Global available-to-promise (GATP) .............. 184
Global benefits ....................................................... 357
Global change ......................................................... 314
Global filter ............................................................. 180
Global master data ............................................... 599
Goal management ................................................ 357
Governance, risk, and compliance (GRC) ... 396,
599
Gradual transition ................................................ 537
Greenfield implementation ......... 123, 332, 335,
399, 504
Grocery ..................................................................... 308
Group Data Analysis – With Reporting Rules
(New) app ............................................................ 106
Group Data Analysis (New) app ....................... 106
Group report ........................................................... 110
Group reporting ..................................................... 103
benefits ................................................................. 105
Central Finance ................................................. 135
concepts ............................................................... 104
master data ........................................................ 108
selecting your option ...................................... 111
Group structure ..................................................... 108
Grouping, pegging, and distribution
(GPD) ...................................................................... 163
Growth enablement ............................................. 568
Guided buying .................................... 240, 345, 397
Guided configuration ............. 509, 543, 545, 556
Guided sourcing .................................................... 344
H
Hadoop ............................... 270, 294, 428, 484, 488
HANAtization ..................................... 511, 519–520
requirements ...................................................... 521
Hard close ................................................................. 602
Hard freeze ............................................................... 536
Hardware .................................................................. 399
sizing ........................................................... 400, 426
High availability (HA) .......................................... 410
Historic cash position ........................................... 90
History tables .......................................................... 177
Host auto-failover ................................................. 413
Housekeeping ......................................................... 540
Hub model ............................................................... 375
Human capital management (HCM) .... 45, 356,
359
AI ............................................................................. 482
Hybrid approach .......................................... 122, 615
Hybrid cloud ...................................................... 64–65
Hybrid landscape .................................................. 289
analytics strategy ............................................. 290
on-premise vs. cloud ........................................ 290
Hyperautomation ................................................. 480
Hypercare ................................................................. 551
Hyperledger Fabric on SAP BTP ....................... 483
Hyperledger Project ............................................. 483
Hyperscalers ............ 295, 318, 430, 472, 574, 589
architecture ......................................................... 430
I
IBM Ascend .............................................................. 593
IBM Rapid Discovery ............................................ 498
IBM Rapid Move for SAP S/4HANA ...... 615–616
633
Index
Idea generation ...................................................... 250
Identity Authentication ..................................... 330
Identity management ............................................ 37
Identity store .......................................................... 432
Image-based buying .................................. 231, 237
Impact of Monitoring Lists app ...................... 255
Implementation .................................................... 543
Import Financial Plan Data app ...................... 101
Import Statistical Key Figures Plan Data
app ......................................................................... 102
In-app extensibility ................................... 458, 460
Inbound delivery .................................................. 191
processing ........................................................... 201
Indirect tax engine ............................................... 116
Industrial IoT (IIoT) .............................................. 473
Industry 4.0 .......................................... 304, 473, 488
Industry 4.Now ............................................... 47, 304
Industry cloud ........................................................ 304
Industry innovation kits .................................... 472
Industry limitations ............................................ 528
Industry solutions ................... 301, 305, 394, 514
adapting to global change ........................... 314
consumer ............................................................. 307
discrete ................................................................. 310
energy and natural resources ..................... 306
financial services .............................................. 311
Industry 4.0 ........................................................ 304
public services ................................................... 313
service ................................................................... 307
Industry Solutions (IS) .............................. 302, 394
Industry templates ............................................... 563
Industry-to-core .................................................... 302
InfoCubes ................................................................. 283
InfoObjects .............................................................. 283
InfoProvider .................................................. 278, 283
Infrastructure as a service (IaaS) ..................... 360
In-house repair management .......................... 219
In-memory analytics ........................................... 615
In-memory storage .............................................. 403
Innovations ............................................................. 568
discovery .............................................................. 499
Insert-update .......................................................... 403
Inspection ................................................................ 190
Instance number ................................................... 415
Insurance ................................................................. 312
Integrated financial planning for SAP
S/4HANA ............................................................. 102
Integrated intelligent enterprise ............... 36, 52
Integration ........................... 52, 206, 394, 470, 570
apps and data .................................................... 452
prepackaged ....................................................... 360
Integration (Cont.)
principles ................................................................ 53
SAP Ariba ......................................... 235, 348–349
SAP Concur ......................................................... 356
SAP Customer Experience ............................ 371
SAP Fieldglass ................................................... 352
SAP IBP ................................................................. 381
SAP SuccessFactors ......................................... 359
scenarios ................................................................ 54
strategy ................................................................... 54
Intelligent assets ................................................... 304
Intelligent close ........................................................ 99
Intelligent enterprise ........... 27–28, 32, 395, 454,
469, 572
capabilities ............................................................ 31
end-to-end processes ......................................... 38
extensions ........................................................... 457
integrated ....................................................... 36, 52
layers ....................................................................... 36
phases ..................................................................... 29
qualities .................................................................. 37
SAP Business Technology Platform ............. 51
technologies ......................................................... 32
value dimensions ............................................. 569
Intelligent factories ............................................. 304
Intelligent process automation (IPA) .............. 28
Intelligent procurement .................................... 236
Intelligent products ............................................ 304
Intelligent robotic process automation
(iRPA) ............................................................. 34, 479
Intelligent spend management ...... 42, 342, 348
Intelligent suite ..................................................... 342
Intelligent technologies ...... 27–28, 32, 469, 471
consume .............................................................. 472
industry solutions ........................................... 304
use cases .............................................................. 488
Intercompany matching and reconciliation
(ICMR) .......................................................... 107, 112
Central Finance ................................................ 132
process ................................................................. 114
selecting your option ..................................... 115
Intercompany reconciliation .................. 74, 132,
599–600, 602, 605
Interim modes of operation (IMO) ............... 594
International Financial Reporting
Standard 15 (IFRS 15) ..................................... 215
International Financial Reporting Standards
(IFRS) .............................................................. 91, 311
Internet of Things (IoT) ..... 31, 33, 270, 452, 472
asset management ......................................... 263
Interunit elimination ...................... 107, 112, 115
Index
634
Intrastat reporting ................................................ 215
Inventory analysis ................................................ 193
Inventory Analysis Overview app .................. 194
Inventory Counting, Enabling Activation,
Printing, and Counting of Physical
Inventory Documents app ........................... 193
Inventory data ....................................................... 608
Inventory level ....................................................... 175
Inventory management ........................... 174, 201
outlook ................................................................. 203
Inventory planning .................................... 173, 378
Inventory posting ................................................. 174
Inventory reporting ............................................. 609
Inventory valuation ................................... 175, 177
table ................................................................ 82, 177
Invoicing ..................................... 213, 217, 232, 244
automation .............................................. 236, 347
processing ........................................................... 346
reconciliation ..................................................... 347
SAP S/4HANA Cloud ....................................... 243
IoT Bridge .............................................. 473, 476, 490
IoT Edge .................................................................... 476
IoT Foundation ...................................................... 476
IS-Beverage .............................................................. 308
IS-CWM ..................................................................... 197
IS-Health ................................................................... 314
IT model .................................................................... 581
IT roadmap .............................................................. 591
J
JavaScript ................................................................. 480
Job requisition .......................................................... 45
Job Scheduling app ............................................... 195
Joint venture accounting (JVA) ....................... 306
Jupyter Notebook ....................................... 485, 487
Just-in-time (JIT) calls ................................ 164, 223
Just-in-time (JIT) supply to customers ......... 163
Just-in-time (JIT) supply to production ........ 194
K
Kanban ................................................... 166, 168, 178
automotive industry ....................................... 310
Key mappings ......................................................... 128
Key performance indicator (KPI) ............ 75, 174,
211, 228–229, 268, 272, 275, 343, 410
cycle ....................................................................... 274
Kitting ........................................................................ 164
KPI Modeler ............................................................. 272
Kubernetes ........................................... 295, 298, 486
L
Landscape ................................................................. 341
Last mile distribution
(LMD) ........................................ 197, 223, 308, 394
Layered scalable architecture (LSA) ............... 282
Lead-to-cash .............................................................. 40
solutions ................................................................. 42
Lead-to-opportunity .............................................. 40
Learning management ....................................... 368
Ledgers ............................................................... 70, 605
Legacy code .............................................................. 609
Legacy system ......................................................... 551
Legal consolidation .............................................. 106
Legal reports ............................................................ 117
Leonardo ................................................................... 472
LE-TRA ........................................................................ 195
LE-WM ........................................................................ 201
Life sciences ................................................... 309, 614
Lifecycle management .......................................... 37
Lift-and-shift approach ....................................... 122
Lightweight Directory Access Protocol
(LDAP) group ...................................................... 434
Line of business (LoB) ................................ 301, 564
solutions ............................................................... 395
Liquidity forecast .................................................... 73
analysis ................................................................... 89
Liquidity item hierarchies ................................... 89
Liquidity management ......................................... 89
Liquidity Management app ................................. 89
Liquidity planning .................................................. 90
Live replication mode .......................................... 414
Load planning ......................................................... 197
Local ledger .............................................................. 600
Local report .............................................................. 110
Log replay ................................................................. 415
Logistics .................................................................... 395
data conversion ................................................ 525
execution ................................................... 201, 203
limitations ........................................................... 529
Logistics service providers (LSPs) ......... 185, 307
Loyalty management .......................................... 365
LSA++ ................................................................ 282–283
M
Machine learning ............... 29, 34, 236, 244, 291,
456, 487, 490
liquidity management ...................................... 90
sales orders ......................................................... 211
scenario manager ............................................ 297
635
Index
Machine learning (Cont.)
sourcing and procurement .......................... 231
supply chain ....................................................... 178
Magnitude SourceConnect ..................... 137, 143
Maintenance ........................................................... 401
Maintenance operation and execution ...... 258,
261, 263
Maintenance optimizer ..................................... 516
Maintenance Order Costs app ......................... 258
Maintenance orders ................................... 257–258
Maintenance planner .......................................... 516
Maintenance planning .......... 256, 258, 261, 263
Maintenance Planning Overview app .......... 256
Maintenance Scheduling Board app .. 257–258,
261
Maintenance, repair, and overhaul
(MRO) .................................................................... 311
Make-to-order (MTO) ................................ 164–165
Make-to-stock (MTS) ............................................ 160
based on process order .................................. 165
with co- and by-products .............................. 166
with silo material ............................................. 165
Manage Accounts Payable Overview app ... 233
Manage All Quality-Related Tasks app ......... 199
Manage Assignments app ....................... 113, 115
Manage Billing Document Request app ...... 213
Manage Billing Documents app ...................... 213
Manage Characteristics Catalog app ............. 183
Manage Consolidation Group Structure
Group View app ................................................ 108
Manage Consolidation Group Structure
Unit View app .................................................... 108
Manage Customer Returns app ...................... 212
Manage Customers Expected Price app ...... 213
Manage Delivery Scheduling Process
app ......................................................................... 213
Manage Direct Activity Allocation app ........ 261
Manage Duplicate Sales Document app ...... 212
Manage Global Accounting Hierarchies
app ......................................................................... 106
Manage Material Coverage app ....................... 157
Manage Payment Advice bot ........................... 481
Manage Product Allocation Planning
Data app ............................................................... 183
Manage Product Allocation Sequences app 183
Manage Purchase Contracts app .................... 234
Manage Purchase Orders app .......................... 231
Manage Purchase Orders Centrally
(MPOC) app ......................................................... 241
Manage Purchase Requisitions Centrally
(MPRC) app ......................................................... 241
Manage Purchasing Document Items –
Professional app .............................................. 231
Manage Purchasing Info Records app ......... 234
Manage Quality Level app ................................ 199
Manage Reconciliation Close app ......... 113, 115
Manage Requests for Quotation app ............ 234
Manage Sales Orders app .................................. 212
Manage Scheduling Agreement app ............ 212
Manage Scheduling Agreements app .......... 235
Manage Sources of Supply app ....................... 234
Manage Supplier Invoices app ........................ 233
Manage Supplier Quotations app .................. 234
Manage User-Defined Criteria for Supplier
Evaluation app .................................................. 236
Manage Your Solution app ............................... 331
Managerial consolidation ................................. 106
Managing Supplier Invoice app ...................... 243
Manual entries ...................................................... 107
Manual purchase order ...................................... 230
Manufacturing ...................................... 48, 151, 342
benefits ................................................................ 151
case study ........................................................... 608
challenges ........................................................... 153
key functionality .............................................. 155
outlook ................................................................. 170
productivity ....................................................... 585
SAP S/4HANA Cloud ....................................... 167
Mapping concept .................................................. 375
Margin analysis .......................................... 80, 92–93
benefits ................................................................... 94
improvements ...................................................... 95
restrictions ............................................................ 95
split COGS .............................................................. 95
Marketing ....................................................... 205, 364
benefits ................................................................ 205
key functionality .............................................. 216
outlook ................................................................. 222
SAP S/4HANA Cloud ....................................... 220
Mass Schedule Maintenance Plans – Service
app ......................................................................... 257
Mass Schedule Maintenance Plans app ...... 257
Master data ............................................................. 108
AI ............................................................................ 483
maintenance ..................................................... 218
service ................................................................... 218
Master filter ............................................................ 182
Matching .................................................................. 112
engine ................................................................... 112
methods ............................................................... 112
process ................................................................. 114
run ......................................................................... 114
Index
636
Matching Run app ...................................... 113–114
Material document .............................................. 176
Material Field Length Extension (MFLE) ..... 310
Material flow ................................................. 153, 159
Material Ledger ..................................... 81, 175, 178
disadvantages ...................................................... 82
features ................................................................... 82
tables ........................................................................ 82
Material master ........................................... 160, 196
Material number ................................ 155, 525, 529
Material packaging ............................................... 530
Material replenishment ..................................... 166
Material requirements planning (MRP) ..... 151,
156, 608–609
area level ............................................................. 154
areas ...................................................................... 160
cockpit ............................................... 153–154, 157
demand-driven .................................................. 159
dispatcher ........................................................... 158
run ............................................. 153, 158–159, 165
SAP S/4HANA Cloud ....................................... 168
view ........................................................................ 155
Matrix consolidation .......................................... 106
Matrix reconciliation .......................................... 113
Measurement document ................................... 258
Measures ..................................................................... 79
Media ......................................................................... 307
Memo records ........................................................... 89
Message Management Service (MMS) .......... 476
Metadata Explorer ................................................ 296
Metadata framework (MDF) ............................. 356
Metadata management ...................................... 293
Microsoft Excel ...................................................... 280
Microsoft Silverlight UI ...................................... 192
Migration timelines ............................................. 526
Minimum viable product (MVP) .................... 551
Mixed pallet ............................................................ 197
Mobile asset maintenance ................................ 260
Mobile services ...................................................... 457
Monitor BOP Run app ......................................... 179
Monitoring .................................................... 256, 298
continuous .......................................................... 446
Month-end close ................................................... 605
MRP Live ............................ 156–157, 159, 396, 490
benefits ................................................................. 159
MultiChain .............................................................. 483
Multidimensional reports ................................. 272
Multi-ERP system landscape ............................ 599
Multinational industrial companies ............. 599
Multinational service company ..................... 604
Multiple components in one database
(MCOD) ....................................................... 423–424
Multiple components in one system
(MCOS) ........................................................ 424–425
Multiple valuation .................................................. 80
Multitarget application archive ...................... 447
Multitenant database container
(MDC) .......................................................... 424–426
Multivaluation ledger ........................................... 81
My Purchase Requisitions app ......................... 231
My Recipe Overview app .................................... 165
N
Native SAP HANA applications .............. 277, 281
Native SQL ................................................................ 521
Natural language interaction (NLI) ................ 479
Natural language processing (NLP) ....... 34, 231,
291
Near-zero downtime (NZDT) .................. 534, 536
Neo .............................................................................. 466
Network and spend management .................. 342
New implementation ............... 61, 495, 504, 545
adoption approach .......................................... 504
considerations ................................................... 505
data impact ........................................................ 506
Nonuniform memory access (NUMA) .......... 428
Notices ....................................................................... 345
O
Object pages ............................................................ 256
OData services ........................... 102, 275, 437, 462
Oil and gas ...................................................... 306, 491
Onboarding ............................................................. 357
Online analytical processing (OLAP) ............ 152,
226, 277–278, 387, 393, 428
Online transaction processing
(OLTP) ............................. 152, 226, 387, 393, 428
On-premise .......................................... 318, 508, 556
Open hub services ................................................. 284
Open items ............................................................... 133
Open ODS views ..................................................... 283
OpenSQL ................................................................... 285
Operating concern .................................................. 93
Operational automation ...................................... 29
Operational delta queue (ODQ) ....................... 284
Operational procurement ................................. 242
Operational purchasing ............................ 228, 244
Operational reporting .................... 267, 270, 602,
608, 611
SAP S/4HANA Cloud ........................................ 148
Operations ............................................................... 290
637
Index
Opportunity-to-quote ............................................ 41
Orchestration ......................................................... 452
Order capture ......................................................... 382
Order cockpit .......................................................... 609
Order fulfillment ................................................... 209
Order routing ......................................................... 345
Order-to-cash ................................................... 41, 609
Organizational data ............................................. 357
Original equipment manufacturer
(OEM) .................................................................... 474
Out-of-the-box integration ................................. 53
Outsourced manufacturing .............................. 169
Overdue materials ................................................ 193
Overdue Materials – GR Blocked Stock
app ......................................................................... 194
Overdue Materials – Stock in Transit
app ......................................................................... 193
Overview pages ...................................................... 276
P
Pack Outbound Deliveries app ........................ 192
Parallel currencies ........................................... 80–82
Parallel processing ............................................... 405
Parallel valuation ............................................. 81, 84
Parallelization ........................................................ 158
Park Supplier Invoices app ................................ 233
Parked documents ............................................... 233
Partitioning ................................................... 403, 405
Partner app .............................................................. 454
Partner relationship management ................ 368
Partner solutions .................................................. 118
Payables processing ............................................. 606
Payment advice files ............................................ 481
Payment processing ............................................ 347
Pay-per-use service model ................................ 492
Payroll ................................................................ 46, 357
People management ........................................... 342
PEPPOL ...................................................................... 119
Performance management ............................... 357
Period-end valuation .......................................... 200
Periodic actual cost ......................................... 81, 84
Persistent memory (PMEM) ............................. 408
Pipeline management ........................................ 368
Pipeline modeler ................................................... 486
Plan allocations ..................................................... 103
Planning ........................................... 48, 73, 100, 376
activities .............................................................. 101
classic scenarios ............................................... 103
consolidation ..................................................... 108
plan data ...................................................... 74, 101
Planning (Cont.)
SAP Analytics Cloud ....................................... 102
table ...................................................................... 168
Pool and cluster tables ....................................... 522
Position management ........................................ 356
Posting change requests ................................... 189
Preassembly ........................................................... 549
Preconfigured solution ...................................... 562
Predicted Delivery Delay app .......................... 211
Predictive accounting .................................. 96, 237
benefits ................................................................... 98
capabilities ............................................................ 97
integration with group reporting ............. 106
Predictive Analysis Library
(PAL) ................................................... 278, 427, 477
Predictive analytics ...................................... 31, 269
sales orders ........................................................ 211
supply chain ...................................................... 167
Predictive consolidation ................................... 106
Predictive material and resource planning
(pMRP) ................................................................. 167
Predictive modeling ............................................ 268
Predictive postings ................................................. 96
Prepackaged integrations ................................. 360
Prepare phase ............................................... 328, 548
Prescriptive analytics ............................................ 31
Prescriptive modeling ........................................ 268
Pricing management .......................................... 213
Principle of one ..................................................... 178
Private cloud ................................... 61, 64, 318, 332
Process Discovery ................................................ 500
Process Maintenance Plan app ....................... 258
Process manufacturing ............................. 165, 169
execution ............................................................ 169
Process model ............................................... 442, 580
Process optimization .......................................... 574
Process planning .................................................. 167
Process Receivables app ....................................... 73
Processing services .............................................. 427
Procurement ....................................... 225, 342, 348
AI ............................................................................ 482
automation .................................................... 29, 48
central ......................................................... 229, 237
intelligent ........................................................... 236
project control .................................................. 260
SAP Fiori apps ................................................... 231
SAP S/4HANA Cloud ....................................... 242
source-to-pay ....................................................... 43
Procure-to-pay .............................................. 226, 609
Product allocation ................................................ 183
Product Allocation Overview app .................. 183
Index
638
Product compliance .......................... 254–255, 262
Product engineering ............................................ 253
Product Maintenance app ................................. 192
Product master ...................................................... 155
Product modeling ................................................. 382
Product valuation data ....................................... 188
Production capacity leveling ........................... 165
Production Cost Analysis app .......................... 101
Production engineering ........................... 162, 167
Production operations ....................................... 161
Production planning ........................ 151, 168, 395
Production planning and detailed
scheduling (PP-DS) ................................ 155, 310
Production version .............................................. 161
Professional services ........................................... 307
Profit and loss (P&L) ..................................... 74, 130
Profitability analysis .................................... 92, 605
SAP S/4HANA Cloud ....................................... 147
types ......................................................................... 93
Profitability planning ......................................... 101
Program lifecycle .................................................. 578
Project control ....................................................... 260
Project Cost Report – Line Items app ............ 252
Project Cost Report – Overview app .............. 252
Project preview ...................................................... 552
Project stock ............................................................ 188
Promise to pay .......................................................... 73
Public cloud ............................................... 63–64, 318
Public services ........................................................ 313
Punch-out catalog ................................................ 345
Purchase order ................... 96, 227, 230, 241–242
overdue ................................................................ 229
Purchasing ..................................................... 199, 344
contract ................................................................ 161
info record ........................................................... 161
Q
Quality check .......................................................... 419
Quality gates ........................................................... 551
Quality Inspection Engine ...................... 190, 198
Quality management .......................................... 198
outlook ................................................................. 203
Quality Results Recording app ........................ 198
Quality services ..................................................... 427
Quality system (Q-system) ............................... 330
Query Browser ............................................. 274, 394
Query Designer ...................................................... 394
Quick Sizer tool ...................................................... 503
Quota arrangement ............................................. 161
Quote-to-order .......................................................... 41
R
Radio-frequency identification (RFID) .......... 260
Readiness dashboard ........................................... 443
Realize phase ................................................. 329, 550
Real-time alerts ...................................................... 157
Real-time analytics ............................................... 229
Real-Time Consolidation (RTC) ........................ 103
Real-time data ......................................................... 206
Real-time steering ................................................... 29
Real-time visibility ................................................ 159
Rebates .................................................. 208, 214, 308
settlement ............................................................ 214
Recast.AI .................................................................... 478
Receivables ....................................................... 72, 606
Recipe development ............................................ 165
Reconciliation .......................... 72, 85, 95, 112, 607
advanced ICMR ................................................. 112
cases ....................................................................... 113
Central Finance ................................................. 140
close ....................................................................... 115
GR/IR accounts .................................................. 233
group ..................................................................... 113
invoices ................................................................. 347
process .................................................................. 114
reports ................................................................... 142
Recoverability ......................................................... 410
Recovery point objective (RPO) ............. 410, 415
Recovery time objective (RTO) ............... 411, 415
Recruiting management .................................... 357
Recruiting marketing .......................................... 357
Recruit-to-onboard ................................................. 45
Recruit-to-retire ....................................................... 45
solutions ................................................................. 47
subprocesses ......................................................... 45
Redundant data ...................................................... 191
Reinventor organization ...................................... 68
Release cycle ............................................................ 401
Release for delivery .............................................. 184
Release for Delivery app ..................................... 184
Remote Device Management Service
(RDMS) .................................................................. 476
Remote function calls (RFCs) .................. 188, 251
Repetitive manufacturing ................................. 310
Replenishment ....................................................... 156
Reporting .............................................. 110, 267, 269
Central Finance ................................................. 130
enterprise-wide .................................................. 280
hybrid landscape .............................................. 289
operational ......................................................... 270
Representational State Transfer (REST) ........ 437
639
Index
Requests ................................................................... 344
Requests for information (RFI) .............. 343–344
Requests for proposal (RFP) .................... 343–344
Requests for quotation (RFQ) ........ 234, 343–344
Requirement classification ............................... 180
Requirements management ............................ 443
Requisition .............................................................. 351
Research and development (R&D) ................. 247
benefits ................................................................. 248
challenges ........................................................... 249
key functionality .............................................. 250
outlook ................................................................. 261
SAP S/4HANA Cloud ....................................... 260
Resource schedule ................................................ 156
Response planning ..................................... 379–380
Responsibility management ............................ 211
Retail .......................................................................... 309
Returns ...................................................................... 212
Revaluation ................................................................ 82
Revenue accounting and reporting ........ 91, 215
components ........................................................... 91
release restrictions .............................................. 92
Revenue accounting engine ................................ 91
Revenue sharing .................................................... 382
RISE with SAP .......................................................... 318
Risk and compliance ............................................ 568
Risk management ................................................. 200
Roadmap Viewer ................................................... 547
Roadmaps ...................................................... 398, 593
build ....................................................................... 596
Robotic desktop automation (RDA) ................. 34
Robotic process automation
(RPA) .............................................. 29, 34, 244, 479
sourcing and procurement .......................... 225
Role management ................................................ 432
Row storage ............................................................. 403
Run Advanced Compliance Reports app ..... 117
Run Allocation app ............................................... 103
Run Outbound Process app .............................. 192
Run SAP like a factory ......................................... 418
S
Sales ................... 170, 200, 205, 214, 367, 395, 435
AI ............................................................................. 482
APIs ........................................................................ 398
benefits ................................................................. 205
billing .................................................................... 221
content ................................................................. 368
key functionality .............................................. 208
monitoring ............................................... 210, 222
Sales (Cont.)
outlook ................................................................. 222
performance management ......................... 368
productivity ....................................................... 585
SAP S/4HANA Cloud ....................................... 220
simplification .................................................... 208
Sales and operations planning ....................... 376
Sales and performance management
(SPM) ..................................................................... 367
Sales contract management ............................ 220
Sales documents and billing ............................ 211
Sales kits ................................................................... 164
Sales order fulfillment cockpit ..... 206, 209, 211
Sales orders ...................................................... 96, 206
duplicate messages ......................................... 212
fulfillment ........................................................... 209
management ..................................................... 220
monitoring ......................................................... 210
SAP Activate ..................... 418, 506, 543–546, 593
accelerators .............................................. 546–547
deploy phase ...................................................... 551
explore phase .................................................... 549
methodology ............................................ 543, 547
prepare phase ................................................... 548
realize phase ...................................................... 550
Roadmap Viewer ............................................. 325
SAP S/4HANA Cloud ....................................... 325
SAP S/4HANA Cloud, extended edition .. 332
templates ............................................................ 547
tools ...................................................................... 556
SAP Advanced Planning and Optimization
(SAP APO) ......................................... 178, 378, 394
SAP Advanced Track and Trace for
Pharmaceuticals ..................................... 310, 484
SAP Agile Data Preparation .............................. 486
SAP Agricultural Contract Management .... 308
SAP AI Business Services ....... 477–478, 482, 487
SAP Analysis for Microsoft Office ........ 110, 130,
278–279
SAP Analytics Cloud .......... 74–75, 139, 147, 243,
269, 279, 285, 355
data source ........................................................ 280
embedded experience .................................... 102
financial planning ........................................... 102
liquidity planning ............................................... 90
reporting ............................................................. 110
sales orders ........................................................ 211
SAP S/4HANA Cloud ....................................... 149
SAP Analytics Hub ...................................... 285, 290
SAP API Business Hub .......................... 38, 62, 466
SAP API Management ......................................... 452
Index
640
SAP App Center ................................... 118, 304, 355
SAP Application Interface Framework ........ 126,
140, 142
Central Finance interfaces ............................ 127
SAP Ariba ....... 225, 227, 234–235, 243, 342, 352,
397, 544, 604, 609
central procurement ....................................... 240
guided buying .................................................... 345
integration ................................................ 235, 397
invoicing and payments ............................... 346
requests and purchases ................................. 345
sourcing and contracts .................................. 343
Spot Buy Catalog .............................................. 345
SAP Ariba Catalog ................................................. 348
SAP Ariba Cloud Integration Gateway ........ 235,
349, 397
SAP Ariba Contracts .......................... 235, 240, 344
SAP Ariba invoice conversion service
add-on .................................................................. 348
SAP Ariba Invoice Management ..................... 347
SAP Ariba open invoice conversion service
add-on .................................................................. 348
SAP Ariba Sourcing ........................... 234, 344, 349
SAP Ariba Spend Analysis .................................. 343
SAP Ariba Supplier Lifecycle and
Performance ...................................................... 343
SAP Ariba Supply Chain Collaboration for
Buyers ................................................................... 345
SAP Asset Intelligence Network ........... 249, 259,
473–474, 491, 493
SAP Asset Manager ............................................... 260
SAP Best Practices ............ 62, 148, 238, 336, 506,
543, 545, 548, 553–554, 558
SAP Notes ............................................................ 554
SAP Best Practices Explorer ................... 325, 331,
336, 352
SAP Biller Direct .................................................... 217
SAP Billing and Revenue Innovation
Management ........................... 91, 217, 307, 381
integration .......................................................... 384
SAP BPC for SAP BW/4HANA ................. 101, 103
SAP BPC optimized for
SAP S/4HANA ................................. 100–101, 103
SAP Business Application Studio ................... 457
SAP Business ByDesign ...................................... 122
SAP Business Explorer (SAP BEx) ......... 278, 284
SAP Business Network ..................... 344–345, 348
SAP Business One ................................................. 122
SAP Business Planning and Consolidation
(SAP BPC) ............................ 74–75, 101, 103, 278
embedded ............................................................ 278
end of maintenance ........................................ 101
SAP Business Suite ............................ 387, 511, 544
solution maintenance .................................... 402
SAP Business Suite powered by SAP
HANA .......... 387, 399–400, 440, 512–513, 533,
604
SAP Business Technology Platform
(SAP BTP) ........ 27, 50, 395, 444, 454, 469–470,
472, 476, 607
capabilities .......................................................... 456
cockpit ................................................................... 455
extensions ............................................................ 449
features ................................................................. 470
principles ................................................................ 50
use cases ..................................................... 450, 488
SAP Business Warehouse (SAP BW) ......... 65, 72,
130, 271, 278, 280, 387, 600, 605
on SAP HANA ..................................................... 282
SAP BusinessObjects Business Intelligence
(SAP BusinessObjects BI) ............................... 269
SAP BW/4HANA ..... 101, 269, 279, 283, 289, 592
SAP Cash Application ................................. 481–482
SAP Central Business Configuration ... 332, 558
SAP Cloud Application Programming
Model .................................................................... 393
SAP Cloud Transport Management ............... 457
SAP Commerce Cloud ............. 363, 365–366, 489
integration .......................................................... 366
SAP Commercial Project Management ....... 250,
252, 396
SAP Concur ................................. 348, 353, 356, 397
mobile app .......................................................... 355
SAP Convergent Charging ............. 217, 382–383
SAP Convergent Invoicing ................................. 383
SAP Convergent Mediation by
DigitalRoute .............................................. 382–383
SAP Conversational AI .............. 34, 436, 478, 490
SAP CoPilot .................................................... 111, 211
SAP Credit Management .................................... 215
SAP Crystal Reports ................................................ 75
SAP Customer Activity Repository ................ 366
SAP Customer Consent ....................................... 370
SAP Customer Data Cloud ....................... 364, 370
SAP Customer Experience ..... 42, 208, 216, 219,
362, 364, 371, 396, 489
integration .......................................................... 371
SAP Customer Financial Management ......... 384
SAP Customer Identity ........................................ 370
SAP Customer Order Sourcing ......................... 197
SAP Customer Profile .......................................... 371
SAP Customer Relationship Management
(SAP CRM) ................................. 91, 208, 216, 544
641
Index
SAP Data Hub ......................................................... 295
SAP Data Intelligence ............ 270, 291, 293–295,
484, 486–487
architecture ........................................................ 298
key features ........................................................ 296
modeler ................................................................ 297
pipeline modeler ............................................... 486
SAP Vora .............................................................. 488
SAP Data Services ........................ 55, 277, 294, 372
SAP Data Warehouse Cloud .................... 284, 612
SAP Digital Boardroom ............................. 285–286
SAP Digital Manufacturing Cloud ........ 473, 490
SAP Direct Distribution ............................ 197, 308
SAP Direct Store Delivery .................................. 308
SAP Disclosure Management ........................... 106
SAP Discovery Center .......................................... 456
SAP Distribution for Hadoop ........................... 485
SAP Document Compliance ............................. 119
SAP EarlyWatch Alert .......................................... 419
SAP EarlyWatch Report ....................................... 419
SAP Edge Services .............................. 473, 490, 492
SAP Enterprise Architecture Designer ......... 428
SAP Enterprise Asset Management ............... 396
SAP Enterprise Portfolio and Project
Management ..................................................... 251
packaged solutions ......................................... 252
SAP Enterprise Support ...................................... 338
SAP ERP .................................................... 64, 387, 512
business case ...................................................... 566
cash management .............................................. 87
Central Finance ................................................. 122
consolidation ..................................................... 103
data model ................................................ 176, 232
finance ............................................. 70, 73, 81, 356
financial planning ........................................... 100
housekeeping ..................................................... 540
human capital management ............ 356, 360
industry solutions ............................................ 302
inspection ............................................................ 190
intercompany reconciliation ...................... 112
inventory valuation ........................................ 177
maintenance ...................................................... 258
Material Ledger .................................................... 82
MRP ....................................................................... 160
operational purchasing ................................. 228
operational reporting .................................... 270
planning .............................................................. 103
PP-DS ..................................................................... 156
profitability analysis ......................................... 94
sales orders ......................................................... 210
source of supply ................................................ 161
SAP ERP (Cont.)
transportation management ..................... 195
Warehouse Management (WM) ................. 185
SAP Experience Maker ....................................... 453
SAP Extended Warehouse Management (SAP
EWM) ................................................. 185, 191, 202
data redundancy ............................................. 188
decentralized ..................................................... 185
objects .................................................................. 186
Quality Inspection Engine ............................ 190
tables .................................................................... 188
SAP Extension Suite ...... 447, 449–450, 455–457
SAP Field Service Management ...................... 219
SAP Fieldglass ..................................... 350–352, 397
licensing .............................................................. 352
SAP Financial Closing cockpit for SAP
S/4HANA ................................................................ 75
SAP Financial Consolidation ............................ 103
SAP Financial Services Network ..................... 397
SAP Financial Supply Chain Management
(SAP FSCM) ............................................................ 87
SAP Fiori ................... 37, 57, 72, 87, 156, 174, 374,
436, 451, 464, 557, 602, 611
3.0 .......................................................................... 438
custom UIs ......................................................... 463
SAP Fiori apps ................. 100, 174, 252, 269, 272,
433, 436, 504
analytical ............................................................ 275
drilldown capability ....................................... 110
extensions ........................................................... 438
reporting ............................................................. 110
SAP Fiori apps reference library ..................... 436
SAP Fiori launchpad ................. 89, 102, 186, 273,
275–276, 290, 393, 436–437
SAP Focused Run .................................................. 446
SAP for Mill Products .......................................... 309
SAP Gateway .................................................. 393, 464
Service Builder .................................................. 464
SAP Global Trade Services (SAP GTS) ............ 186,
207, 215
SAP Graph ................................................................ 467
SAP Group Reporting Data Collection ......... 105,
107, 111
SAP HANA ................. 65, 158, 288, 387–389, 402,
433, 435, 439, 488
2.0 ....................................................... 277, 281, 416
authorization .................................................... 432
data management .......................................... 450
database .............................................................. 404
database migration ........................................ 513
dynamic tiering ................................................ 440
Index
642
SAP HANA (Cont.)
E5 systems ........................................................... 408
enterprise analytics ......................................... 281
host auto-failover ............................................ 413
logical deployment options ......................... 423
native applications ................................ 277, 281
on IBM Power .................................................... 408
operations ........................................................... 417
platform ............................................................... 427
reporting .............................................................. 271
SAP BW ................................................................. 282
SAP MDG ............................................................. 375
security ................................................................. 432
sizing ..................................................................... 503
storage .................................................................. 293
storage replication .......................................... 411
system replication ........................................... 414
triggers ................................................................. 398
views ...................................................................... 281
SAP HANA Blockchain service ......................... 483
SAP HANA Cloud ................................................... 284
SAP HANA cockpit ............................. 411, 417, 445
SAP HANA database layer .................................. 389
SAP HANA Enterprise Cloud .............. 56, 62, 319
SAP HANA extended application services, ad-
vanced model .................................................... 277
SAP HANA Live ..................................... 75, 277, 388
views ...................................................................... 388
SAP HANA query ................................................... 208
SAP HANA smart data access ................. 277, 439
SAP HANA smart data integration ...... 277, 372,
375, 381
SAP HANA smart data quality ............... 372, 375
features ................................................................ 372
SAP HANA studio .................................................. 417
SAP HANA Web-Based Development
Workbench ......................................................... 455
SAP HANA, spatial edition ................................ 429
SAP Human Capital Management for SAP
S/4HANA ................................................... 360–361
SAP IBP for demand ............................................. 377
SAP IBP for inventory .......................................... 378
SAP IBP for response and supply .................... 378
SAP IBP for sales and operations .................... 376
SAP Information Lifecycle Management (SAP
ILM) ........................................................................ 541
SAP Information Steward .................................. 372
SAP Innovation Management ............... 248, 250
features ................................................................ 250
SAP Integrated Business Planning for Supply
Chain (SAP IBP) .................... 154, 263, 376, 394
integration .......................................................... 381
SAP Integration Solution Advisory
Methodology ........................................................ 54
SAP Integration Suite ...... 54, 117, 119, 360, 372,
381, 397, 453, 455, 470, 489
SAP Intelligent Enterprise Framework ......... 561
SAP Intelligent Robotic Process Automation
(SAP Intelligent RPA) ............................... 32, 479
bots ......................................................................... 481
components ........................................................ 480
SAP Internet of Things (SAP IoT) ........... 472, 476
architecture ......................................................... 476
service cockpit .................................................... 476
use case ....................................................... 488, 491
SAP Inventory Manager ...................................... 260
SAP Invoice Management by OpenText ...... 233
SAP Jam ..................................................................... 552
SAP Landscape Management ........................... 423
SAP Landscape Transformation Replication
Server .................... 114, 122, 124, 140, 277, 538
deployment options ........................................ 126
nonfinancial data ............................................. 135
SAP Localization Hub, advanced compliance
reporting service ............................................... 117
SAP Localization Hub, tax service ........ 118, 120
SAP Logistics Business Network ...................... 197
SAP Logistics Business Network, global
track and trace option ....... 473, 475, 484, 491
SAP Lumira, designer edition ........................... 130
SAP Manufacturing Execution .............. 397, 490
SAP Manufacturing Integration and
Intelligence ......................................................... 397
SAP Manufacturing Suite ......................... 475, 490
SAP Marketing Cloud .............. 363–364, 371, 452
integration .......................................................... 365
SAP Master Data Governance (SAP MDG) .... 124,
128, 249, 309, 372, 540, 601, 604
deployment ............................................... 129, 375
features ................................................................. 374
SAP Master Data Integration ............................ 397
SAP Mobile Asset Management ...................... 249
SAP Mobile Platform ............................................ 504
SAP Mobile Services ................................... 489, 493
SAP Model Company .............. 303, 549, 556, 559
benefits ................................................................. 560
building blocks ........................................ 560, 563
SAP Multiresource Scheduling .... 251, 256, 492
SAP NetWeaver ............................................. 506, 532
7.4 ............................................................................ 388
SAP NetWeaver AS for ABAP ................... 390, 433
SAP One Domain Model ..................................... 467
643
Index
SAP Overall Equipment Effectiveness
Management (SAP OEE Management) .... 490
SAP Partners ........................................................... 303
SAP Pay ..................................................................... 347
SAP Plant Connectivity ............................ 397, 490
SAP Predictive Analytics ................... 75, 477, 489
SAP Predictive Asset Insights ....... 249, 264, 473,
475, 482, 492
SAP Process Orchestration ......................... 55, 397
SAP Product Lifecycle Costing ......................... 253
SAP Product Lifecycle Management (SAP
PLM) ............................................................ 253, 262
SAP Profitability and Performance
Management ..................................................... 288
SAP Project Manufacturing Management
and Optimization ............................................ 310
SAP Public Sector Collection and
Disbursement (SAP PSCD) ............................ 314
SAP Rapid Deployment solution ......... 349, 549,
556, 562
SAP Readiness Check ........................................... 497
SAP Revenue Accounting and Reporting ...... 91,
207, 215
SAP S/4HANA ........ 29, 42, 57–58, 152, 156, 159,
226, 393–394, 399–400, 544, 556, 608, 611
adoption .................................................... 122, 495
analytics and reporting ................................. 267
architecture ........................................................ 387
benefits ................ 151, 173, 205, 225, 248, 602,
605, 609, 612–614, 616, 618
business value advisor ......................... 500–501
Central Finance ................................................. 122
challenges ........................................................... 567
cloud versus on-premise ............................... 452
core .............................................................. 387, 570
data model ................................................ 176, 232
deployment ........................................................... 56
evolution ............................................................. 387
finance ..................................................................... 70
industry solutions .................................. 302, 305
inhibitors ............................................................. 399
iRPA .......................................................................... 34
on-premise ................................................... 60, 318
security ................................................................. 431
single system ...................................................... 186
source .................................................................... 160
value dimensions ............................................. 569
SAP S/4HANA Cloud ............ 57–59, 63, 317–318,
320, 400, 544, 546, 556–557, 574
accelerators ........................................................ 327
advantages ............................................................ 63
SAP S/4HANA Cloud (Cont.)
asset management ......................................... 260
configuration ....................................................... 57
customer integration ........................................ 56
deployment ........................................................ 325
deployment resources .................................... 327
finance ................................................................. 147
functional capabilities .......................... 320, 322
in-app extensibility ......................................... 458
industry solutions .................................. 303, 320
maintenance schedule ................................... 339
manufacturing ................................................. 167
migration cockpit ............................................ 509
multitenant migration ......................... 334–335
R&D ....................................................................... 260
release cycle ....................................................... 337
sales, marketing, commerce, and service
management ................................................ 220
SAP SuccessFactors ......................................... 360
side-by-side extensibility .............................. 465
sourcing and procurement .......................... 242
supply chain ...................................................... 201
value proposition ................................... 317, 320
versions and starter packs ........................... 322
SAP S/4HANA Cloud Content Library .......... 331
SAP S/4HANA Cloud for advanced
compliance reporting .................................... 117
SAP S/4HANA Cloud for customer
payments ............................................................ 217
SAP S/4HANA Cloud for group reporting ... 104
SAP S/4HANA Cloud for patient
accounting ......................................................... 314
SAP S/4HANA Cloud, extended edition ... 58–59,
62, 318, 321, 332–333, 335–336
SAP S/4HANA Defense & Security ................. 313
SAP S/4HANA Finance ....... 67, 70, 74, 77, 84, 86,
92, 96, 121, 435, 512, 603–604
architectural changes ....................................... 94
data conversion ............................................... 524
Material Ledger ................................................... 82
prechecks ............................................................ 534
workforce challenges ........................................ 76
SAP S/4HANA Finance for group
reporting ....................... 103–104, 106, 111, 601
capabilities ......................................................... 106
tasks ...................................................................... 109
SAP S/4HANA for advanced compliance
reporting ............................................................. 117
SAP S/4HANA for advanced financial
closing ........................................................... 98, 110
versions ................................................................... 99
Index
644
SAP S/4HANA for billing and revenue
innovation management ................... 306, 384
SAP S/4HANA for central procurement ..... 226,
237, 240
SAP S/4HANA for convergent invoicing ..... 306
SAP S/4HANA for fashion and vertical
business ............................................................... 309
SAP S/4HANA for financial products
subledger ............................................................. 312
SAP S/4HANA for product
compliance ............................................... 254, 262
SAP S/4HANA for rights and royalty
management by Vistex ................................. 307
SAP S/4HANA Insurance .................................... 312
SAP S/4HANA migration cockpit ........... 86, 505,
507
cloud ...................................................................... 509
on-premise .......................................................... 508
standard objects ............................................... 508
SAP S/4HANA migration object modeler ... 508
SAP S/4HANA Oil & Gas ..................................... 306
SAP S/4HANA Retail for merchandise
management ..................................................... 309
SAP S/4HANA Supply Chain for extended
service parts planning .................................... 311
SAP S/4HANA Supply Chain for secondary
distribution ........................................................ 306
SAP S/4HANA Utilities ........................................ 306
SAP S/4HANA, private cloud
edition ................................... 58–59, 61, 318, 574
SAP Sales Cloud .................................. 363, 367–368
SAP SDK for iOS ..................................................... 451
SAP Service Cloud ....................................... 363, 368
SAP Smart Business applications ................... 272
SAP Smart Business cockpit ............................. 394
SAP solution builder tool ............... 555–556, 558
SAP Solution Manager .......... 418, 421, 442–443,
550, 556, 558
SAP Strategic Enterprise Management –
Business Consolidation System (SAP
SEM-BCS) ............................................................. 103
SAP SuccessFactors 286, 314, 356, 397, 454, 544
integration .......................................................... 360
SAP SuccessFactors Compensation ............... 358
SAP SuccessFactors Employee Central ......... 356
SAP SuccessFactors Learning ........................... 357
SAP SuccessFactors Onboarding .................... 357
SAP SuccessFactors People Analytics ........... 358
SAP SuccessFactors Performance &
Goals ...................................................................... 357
SAP SuccessFactors Recruiting ........................ 357
SAP SuccessFactors Succession &
Development ..................................................... 358
SAP SuccessFactors Workforce Analytics .... 359
SAP SuccessFactors Workforce Planning ..... 359
SAP Supplier Lifecycle Management ............. 225
SAP Supplier Relationship Management (SAP
SRM) ................................................... 225, 239, 604
SAP Supply Chain Control Tower .................... 380
SAP Supply Chain Management (SAP
SCM) ....................................................................... 544
SAP System Transformation, Assessment,
and Realignment .............................................. 498
SAP Tax and Revenue Management for Public
Sector ..................................................................... 314
SAP Tax Compliance ............................................ 119
SAP Tax Compliance for SAP
S/4HANA .................................................... 117, 119
SAP Transactional Banking for
SAP S/4HANA ..................................................... 311
SAP Transformation Navigator ............. 500, 502
SAP Transportation Management
(SAP TM) .................................. 194, 196, 307, 396
blockchain ........................................................... 484
SAP Vora .......................................................... 486–487
embedded ............................................................ 488
SAP Web IDE ........................................ 277, 429, 438
SAP Work Manager ............................................... 260
SAP Workflow Management ................... 467, 479
SAPUI5 .......................................... 192, 269, 436, 464
Savepoint .................................................................. 410
Scalability ................................................................. 409
Scale-out ................................................................... 409
hardware configurations .............................. 409
Scale-up ..................................................................... 409
Schedule BOP Run app ........................................ 179
Schedule Delivery Creation app ...................... 195
Scheduler Workplace ........................................... 256
Scheduling agreements ...................................... 212
Scope items .................................................... 555, 558
Security .................................................... 37, 431, 457
Segment definition .............................................. 180
Segmentation ......................................................... 365
supplier ................................................................. 235
Selective data transition .................... 61, 536, 545
considerations ................................................... 538
Self-service analytics ............................................ 290
Self-service configuration ........................ 556–557
Self-service configuration user interface
(SSCUI) ............................... 57, 148, 330–331, 557
Self-service portals ................................................ 369
Self-service procurement ................................... 230
645
Index
Self-service requisitioning ...................... 230, 242
Sequence planning ............................................... 395
Series data ................................................................... 96
Service agreement management ......... 220, 222
Service contract and revenue
recognition ......................................................... 220
Service industries ................................................. 307
Service maintenance plan and event
scheduling .......................................................... 219
Service management .............. 205, 207, 219, 368
AI ............................................................................. 482
benefits ................................................................. 205
key functionality .............................................. 218
outlook ................................................................. 222
SAP S/4HANA Cloud ....................................... 220
Service master data management ................. 218
Service monitoring analytics ........................... 220
Service operations and management .......... 222
Service parts ............................................................ 219
management ..................................................... 530
warehousing ...................................................... 220
Service task list ...................................................... 218
Services procurement ............................... 350, 352
Settlement management .................................. 207
Settlement rule ......................................................... 94
Shared enterprise networking ......................... 408
Shared enterprise storage ................................. 408
Shell conversion .................................................... 538
Shipping ................................................................... 195
SI-Checks .................................................................. 534
Side-by-side extensibility ............... 458–459, 464
business logic ..................................................... 465
frontend ............................................................... 464
persistence .......................................................... 466
Sidecar scenario ..................................................... 602
Silos ............................................................................ 165
Simplification ...................................... 191, 207, 602
data model ................... 176, 208, 391–392, 435
database .............................................................. 519
item check report ............................................. 517
list ................................................................. 515, 517
Simplification Item-Check (SI-Check) ........... 518
Single sign-on (SSO) ............................................. 432
Single source of truth .... 69–70, 78, 82, 130, 570
Situation handling .............................. 35, 178, 212
Sizing ............................................................... 400, 426
requirements ...................................................... 503
Slow or Nonmoving Materials app ................ 194
SmartOps ................................................................. 378
SOAP services ......................................................... 398
Soft close ................................... 72, 85, 99, 602, 606
Software as a service (SaaS) ..... 317, 342, 400, 566
extending ............................................................ 453
Software components ........................................ 531
Software Logistics Toolset (SL Toolset) ........ 527
Software Provisioning Manager (SWPM) ... 527
Software Update Manager
(SUM) ................................................. 512, 516–517
prerequisites ...................................................... 527
Sold-to party ........................................................... 213
Solution validation workshop ........................ 549
Source list ................................................................ 161
Source of supply ................................................... 241
Source-to-pay ..................................................... 42–43
Sourcing and procurement .......... 154, 160, 225,
234, 342–343
analytics .............................................................. 243
benefits ................................................................ 225
central .................................................................. 241
challenges ........................................................... 226
key functionality .............................................. 228
logic ....................................................................... 161
outlook ................................................................. 244
SAP Ariba ............................................................ 235
SAP Fiori apps ................................................... 234
SAP S/4HANA Cloud ....................................... 242
Spaces ........................................................................ 285
Special purpose ledger table ............................... 77
Spend analysis ....................................................... 343
Spend management ............................................ 353
Sprint ......................................................................... 546
Stack XML ................................................................ 516
Stakeholders .................................................. 573, 583
Standard SAP code ............................................... 520
Standby host .......................................................... 413
Standby node ......................................................... 413
Starter system (S-system) ................................. 330
Static partition pruning ..................................... 405
Statistical conditions ............................................. 95
Stock ................................................................. 153, 175
dead ...................................................................... 194
insights ................................................................ 178
levels .................................................. 159, 490, 608
Stockroom management ......................... 200, 310
Storage bin change logs ..................................... 193
Storage location MRP ......................................... 160
Storage replication .............................................. 411
Storage tank management ............................... 166
Stories ....................................................................... 102
Strategic sourcing ................................................ 344
Subcontracting ................................... 154, 160, 169
Subledger approach ............................................. 312
Index
646
Subscription order management ................... 382
Succession planning ............................................ 358
Supplier classification ......................................... 235
Supplier discovery ................................................ 343
Supplier evaluation .............................................. 235
Supplier Evaluation by User-Defined
Criteria app ......................................................... 236
Supplier Evaluation Weighting and
Scoring app ......................................................... 236
Supplier lifecycle performance ....................... 343
Supplier management ........................................ 242
Supply alternatives .............................................. 154
Supply chain ........................................ 151, 173, 342
analytics .................................................... 167, 170
benefits ................................................................. 173
challenges ........................................................... 175
collaboration ..................................................... 345
design-to-operate ................................................ 48
key functionality .............................................. 176
outlook ................................................................. 202
routing .................................................................. 191
SAP S/4HANA Cloud ....................................... 201
Supply planning .......................................... 379–380
Supply protection ................................................. 184
Support Pack Stacks (SPS) .................................. 401
Synchronous in-memory replication ........... 415
Synchronous replication ................................... 415
Synchronous storage replication ................... 412
Syniti ................................................................ 137, 143
System conversion ..................... 61, 495, 511, 545
adoption approach ............................... 512, 537
considerations ................................................... 513
data impact ........................................................ 514
one-step approach ........................................... 513
prerequisites ....................................................... 525
tools ....................................................................... 515
two-step approach .......................................... 512
System downtime ................... 507, 513, 532, 539
activities .............................................................. 534
options ................................................................. 534
System identifier (SID) ........................................ 415
System replication ............................................... 414
modes ................................................................... 415
T
Table
/SCWM/ERP_PSP .............................................. 188
/SCWM/THUTYPE ............................................ 188
ACDOCA ................. 70, 74, 77, 94, 97, 125, 135,
139, 178, 391, 435, 524, 612
Table (Cont.)
ACDOCC ................................................................ 104
ACDOCP .............................. 71, 73, 100–103, 108
ACDOCU ................................................................. 71
ANLC ...................................................................... 391
BKPF ....................................................................... 435
BSAD ...................................................................... 391
BSAK ...................................................................... 391
BSEG ....................................................................... 435
COSP ...................................................................... 391
COSS ....................................................................... 391
FAGLBSIS .............................................................. 391
FAGLSBSAS .......................................................... 391
FINSSKF ................................................................. 102
GLT0 ...................................................................... 391
GLT3 ....................................................................... 391
ICADOCM ............................................................. 113
MATDOC .................................................... 176, 435
MBEW .................................................................... 188
MKPF ..................................................................... 176
MLCD ..................................................................... 391
MSEG ..................................................................... 176
PRPS ....................................................................... 188
THUTYPE .............................................................. 188
VBOF ...................................................................... 214
Tailored data center integration (TDI) .......... 407
phases ................................................................... 408
Talent management ................................... 357, 360
Tank trailer filling ................................................. 166
Target operational model (TMO) .................... 594
Tax and compliance management ................ 116
Central Finance ................................................. 120
selecting your option ...................................... 120
Tax codes .................................................................. 116
Tax management .................................................. 314
Technical asset management ........................... 261
Technical assets and structure history ......... 218
Technical conversion ........................................... 515
tools ....................................................................... 515
Technical limitations ........................................... 530
Technical monitoring .......................................... 420
Technical move ...................................................... 537
Technology drivers ............................................... 399
Technology renovation ............................ 573–574
Telecom ..................................................................... 302
provider ................................................................ 615
Tenant database ..................................................... 425
Time management ................................................. 46
Time-dependent taxes ........................................ 116
Time-off management ........................................ 356
Time-to-value ......................................................... 567
647
Index
Top-down distribution .......................................... 95
Top-down prediction ............................................. 96
Torchbearer ................................................................ 68
Total cost of ownership (TCO) ..... 317, 333, 399,
570, 574, 600, 604, 609
Tour tracking .......................................................... 197
Track Sales Order app .......................................... 211
Track Sales Order Details app ........................... 211
Trade promotion management (TPM) ......... 214
Trader’s & Scheduler’s Workbench
(TSW) ..................................................................... 398
Transaction
AJAB ....................................................................... 536
AJRW ...................................................................... 536
AS91 ....................................................................... 536
EDOC_COCKPIT ................................................ 119
FAGLGVTR .............................................................. 85
KEDR ......................................................................... 94
KEPM ..................................................................... 101
LTMC ........................................................................ 86
MD01N .................................................................. 396
SE80 ....................................................................... 458
SM_WORKCENTER .......................................... 419
SOLAR_PROJECT_ADMIN ............................. 558
SPAU ...................................................................... 520
SPDD ...................................................................... 520
SPRO ............................................................ 331, 557
VBOF ...................................................................... 214
Transactional apps ..................................... 174, 436
Transfer pricing ................................................ 80–81
Transformation strategy ................................... 568
Transport scheduling .......................................... 196
Transportation management (TM) ................ 194
basic versus advanced ................................... 194
innovations ........................................................ 196
outlook ................................................................. 203
Travel and expense management ........ 348, 353
Treasury Executive Dashboard story ............... 90
Treasury management .......................................... 86
Two-tier model ...................................................... 318
Two-tier system replication ............................. 440
U
UI adaptation .......................................................... 460
Unicode .................................................. 512, 532, 616
conversion ........................................................... 513
Units of measure (UoMs) ................................... 198
Universal allocations ........................................... 103
Universal Journal .... 70, 72, 75, 77, 80, 105, 121,
130, 178, 391, 524, 602, 605, 607
Usage processing .................................................. 383
Use cases .................................................................. 599
consumer-packaged goods (CPG) ............. 488
global telecom provider ................................ 615
intelligent technologies ................................ 488
oil and gas asset maintenance .................. 491
User experience (UX) ........ 37, 57, 153, 174, 353,
436, 451, 495, 602
User interface (UI) ................................................ 436
User management ............................................... 432
User provisioning ................................................ 433
Utilities ..................................................................... 306
V
Validation ................................................................ 108
Valuation methods .............................................. 175
Value dimension ............................... 568, 572, 581
Value helps .............................................................. 583
Value management ............................................. 591
Value mappings .................................................... 129
Value model ........................................................... 579
Value proposition ....................................... 565, 590
Value realization ................................................... 565
Value trap ................................................................ 584
Variances .................................................................... 95
Variant configuration ...................... 164, 254, 310
Vendor approval ................................................... 351
Vendor collaboration ......................................... 154
Vendor management system (VMS) ... 350–351
Verify Usage Measurement app ..................... 257
Vertex ........................................................................ 397
View Maintenance Schedule for Assets
app ......................................................................... 257
Virtual data mart .................................................. 283
Virtual data model (VDM) ..... 271, 275, 388, 393
Virtual machine .................................................... 406
Virtualization ......................................................... 406
Visibility ....................................... 153, 175, 206, 226
Visualization ................................................. 272, 286
Volatility ......................................................... 153, 175
VPRS condition ........................................................ 95
W
Warehouse monitor ............................................ 193
Warehousing ................................................. 185, 202
Waterfall implementation method .............. 546
Watson APIs ............................................................ 291
What’s New Viewer .............................................. 324
What-if analysis ........................................... 252, 288
Index
648
Wholesale distribution ....................................... 310
Workflows ................................................................ 296
management ..................................................... 212
scenarios .............................................................. 115
Workflows, reports, interfaces, conversions,
enhancements, and forms (WRICEF) ....... 329
Workforce ................................................................... 46
Working capital management ......................... 347
Workload-driven sizing ...................................... 408
Write performance ............................................... 403
First-hand knowledge.
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Devraj Bardhan is an accomplished global leader for SAP Inno-vations at IBM.
Axel Baumgartl is leading the transformation office for the Glo-bal Partner Organization of SAP.
Nga-Sze Choi is the SAP S/4HANA sales and logistics expert working for SAP Business Transformation Services.
Mark Dudgeon is the Global SAP CTO of IBM Global Business Services, SAP Service Line.
Piotr Górecki is a program manager and enterprise architect working at IBM Global SAP Center of Competence.
Asidhara Lahiri is an SAP Enterprise Architect in IBM India, wor-king on complex SAP implementations for global clients in indust-ries such as consumer products, oil & gas, airlines, and utility.
Devraj Bardhan, Axel Baumgartl, Nga-Sze Choi, Mark Dudgeon, Piotr Górecki, Asidhara Lahiri, Bert Meijerink, Andrew Worsley-Tonks
SAP S/4HANA: An Introduction648 Pages, 2021, $79.95 ISBN 978-1-4932-2055-7
www.sap-press.com/5232
Bert Meijerink is the SAP S/4HANA Finance lead in the IBM SAP Global Cen-ter of Competence.
Andrew Worsley-Tonks is an IBM distinguished engineer and the global SAP S/4HANA leader for IBM Services.