“Sourcing and Procurement” Contents Index The Authors

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

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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.

6 Sourcing and Procurement

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.

227

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


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

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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� 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

� 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.


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

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


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

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.


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


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

� 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


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

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.


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


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

Contents

8

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


3.2 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


4.2 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


5.2 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

Contents

10

6 Sourcing and Procurement 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


7.2 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

12

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

13

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

Contents

14

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


15.3.2 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


15.4.2 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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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.

We hope you have enjoyed this reading sample. You may recommend or pass it on to others, but only in its entirety, including all pages. This reading sample and all its parts are protected by copyright law. All usa-ge and exploitation rights are reserved by the author and the publisher.

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.

https://www.sap-press.com/sap-s4hana_5232/#utm_source=AWS&utm_medium=readingsample&utm_campaign=Browse%20the%20Book&utm_content=2055