“Sourcing and Procurement” Table of Contents Index The Authors · 3 Sourcing and Procurement 98...

Browse the BookExplore functionality for sourcing and procurement with SAP S/4HANA, from operational purchasing to supplier management and beyond. Discover key SAP Fiori applications that will stream-line users’ day-to-day work, and check out reporting and analytics functionality that will help improve your S&P processes.

Deb Bhattacharjee, Vadhi Narasimhamurti, Chaitanaya Desai, Guillermo B. Vazquez, Tom Walsh

Logistics with SAP S/4HANA: An Introduction589 Pages, 2019, $79.95 ISBN 978-1-4932-1781-6

www.sap-press.com/4785

First-hand knowledge.

“Sourcing and Procurement”

Table of Contents

Index

The Authors

https://www.sap-press.com/logistics-with-sap-s4hana_4785/?utm_source=AWS&utm_medium=readingsample&utm_campaign=Browse%20the%20Book&utm_content=1781

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Chapter 3

Sourcing and Procurement

This chapter continues to discuss the functional coverage of SAP S/4HANA

by exploring the sourcing and procurement functionality. Recall from the

previous chapter that the planning and scheduling exercise creates require-

ments for materials and services along with procurement proposals. These

purchase requisitions are then leveraged for the external procurement

process, as we’ll examine in this chapter.

The role of sourcing and procurement has evolved significantly over the years from

a cost-driven, transaction-based step into a more collaborative innovation with busi-

ness partners. Technology has been instrumental in enabling organizations to

exploit global synergies and achieve economies of scale. The technology enablement

has also increased the contribution of sourcing and procurement to the overall orga-

nizational value chain.

The objective of this chapter is to highlight the business processes enabled by SAP

S/4HANA’s sourcing and procurement functionality. It begins with an overview of

the sourcing and procurement process as envisioned with SAP S/4HANA and ex-

plains important master data simplifications for business partners, sourcing logic,

and the material master. The chapter then explores the sourcing and procurement

functionality as follows: operational purchasing (Section 3.3), supplier management

(Section 3.4), invoicing and payables management (Section 3.5), and collaborative

sourcing and contract management (Section 3.6). In each of these sections, we’ll in-

troduce key SAP S/4HANA functionalities and showcase relevant SAP Fiori applica-

tions. We’ll close with a discussion on sourcing and procurement reporting and

analytics opportunities (Section 3.7).

3.1 Sourcing and Procurement Basics

Planning and scheduling for customer demand results in requirements for products

and services. An organization can fulfill these requirements by manufacturing the

3 Sourcing and Procurement

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products using its core competencies. However, in some cases, materials or services

will need to be procured from external sources to fulfill customer demand. The

sourcing and procurement business function caters to this need within the organiza-

tion. Sourcing and procurement are often used in association with the overall supply

chain processes due to their close interrelation.

Sourcing, as the name suggests, is the process of identifying and selecting the correct

sources of supply (suppliers) that can provide the required services and products for

the organization. There are several subprocesses within the sourcing process, includ-

ing the following key activities:

� Evaluation of the company’s current purchasing cycles and what is currently avail-

able in the supply market

� Analysis of benefits and cost saving of using other suppliers

� Evaluation of potential suppliers after the RFx process

� Selection and implementation of new supplier relationships

Too often, sourcing has been thought of as a tactical exercise of choosing the suppli-

ers with the lowest price quote. However, this can come with many negative trade-

offs, such as lower product quality, longer lead times, and so on. As a result, many

companies have started to realize the true values sourcing can bring, including better

product/service quality and shorter fulfillment lead times.

Procurement, on the other hand, is a broader term. It encapsulates the entire source-

to-pay process, which includes sourcing, purchasing, and eventual acquisition of ser-

vices and products. Typically, companies aim to cultivate diverse product portfolios

to maximize their market share and expand their footprint across a gamut of prod-

ucts and services. At the same time, IT is also required to standardize the materials

and services required for these products and services. These two goals seem to be

conflicting each other. However, procurement—if strategically used—can play a crit-

ical role in creating key competitive advantages and achieving the standardization of

acquired services and materials.

3.2 Master Data Simplifications

One key distinction that SAP S/4HANA makes relative to SAP Business Suite is in its

organization of master data. Let’s walk through the business partner concept for ven-

dors, simplified sourcing logic, and changes related to the material master.

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3.2.1 Business Partners

Current users of SAP Supplier Relationship Management (SRM), SAP Customer Rela-

tionship Management (CRM), and the old SAP Financial Supply Chain Management

(FSCM) modules may already be familiar with the concept of the business partner,

but it might be new to SAP ERP users. In SAP S/4HANA, both vendors and customers

are categorized as business partners; but considering our current focus on the sourc-

ing and procurement line of business, data for vendors is most relevant. Business

partner general data contains information such as their name and address. The

account group concept of vendors and customers remains the same in SAP S/4HANA.

For system upgrades from SAP ERP to SAP S/4HANA, existing customers and vendors

in the SAP ERP system must be migrated as business partners. Table 3.1 compares

business partners in SAP ERP versus SAP S/4HANA.

Topic SAP ERP SAP S/4HANA

Vendor master

general data

General data Business partner general data.

Vendor master

company code data

Company code view Access company code view

through business partner role FI

Vendor.

Vendor master

purchase organiza-

tion data

Purchase organization view Access purchase organization

view through business partner

role Supplier.

Vendor master

transactions

Transactions XK01, XK02, and

XK03 (Create, Change, and DIS-

PLAY Vendor Centrally, respec-

tively)

Transactions MK01, MK02, and

MK03 (Create, Change, and Dis-

play Vendor Purchasing, respec-

tively)

Transactions FK01, FK02, and

FK03 – (Create, Change, and

Display Vendor Accounting,

respectively)

The SAP Fiori app Maintain

Business Partner is used to

maintain vendors. Transac-

tions related to vendor master

transactions are obsolete in

SAP S/4HANA.

Table 3.1 Vendor Master Data in SAP ERP versus SAP S/4HANA


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Now that you understand the business partner concept in SAP S/4HANA, let’s take a

closer look at how the vendor master is created through the business partner in SAP

S/4HANA. In the next subsection, you’ll learn how to create a business partner for

vendors with the business partner grouping and business partner roles.

In SAP S/4HANA, an SAP Fiori app called Maintain Business Partner is used to create,

edit, and display business partners, vendors, and customers. Business partner cate-

gory type Organization is always used for creation of vendors and customers.

Business Partner Grouping

The business partner Grouping needs to be selected first after launching the Maintain

Business Partner app in SAP Fiori. Each business partner must be allocated to a busi-

ness partner grouping before creating the business partner with general data. The

business partner grouping is linked to the business partner number range. The busi-

ness partner is created with the name and address information and the business part-

ner general role. Figure 3.1 shows the business partner general data creation with a

business partner grouping.

Figure 3.1 Business Partner General Data Creation with Business Partner Grouping

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Business Partner Role

The business partner is extended to applicable business partner roles. Business part-

ner with business role Supplier (Defined) enables the Purchasing view (see Figure 3.2)

and allows the maintenance of purchasing information, such as order currency and

payment terms. Business partners with business partner role Supplier allow purchase

orders to be created, and business partner role FI Vendor allows invoices to be

received from suppliers.

Figure 3.2 Purchasing View from the Supplier Business Partner Role

Business partner role FI Vendor (New) enables the Company Code view (see Figure 3.3)

and allows the maintenance of company code information, such as the payment

method.

Although not required, it’s recommended to have the same number range for the

business partner and vendors.


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Figure 3.3 Company Code View from the FI Vendor Business Partner Role

3.2.2 Sourcing Logic

Another key master data simplification in SAP S/4HANA is the sourcing logic for

direct procurement.

In SAP ERP, material requirements planning (MRP) proposes a source of supply from

the master data object source list. Hence, for materials with only one source of supply

(the supplier), the source list must be maintained even though the info record is

available. Moving forward in SAP S/4HANA, for materials with a single source of sup-

ply, the arrival of the Automatic Sourcing checkbox means that source list mainte-

nance is no longer necessary; users simply need to activate this checkbox in the

purchase info record (PIR). The MRP run generates purchase requisitions and assigns

the source of supply based on the Automatic Sourcing checkbox in the PIR. However,

to allow a source of supply for materials with more than one source of supply and

allow a supplier to be blocked for a specific period, the source list can still be used in

SAP S/4HANA.

Users can enable the Automatic Sourcing checkbox through either the Manage Pur-

chasing Info Records app shown in Figure 3.4 or the Create Purchasing Info Record

app.

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3.3 Operational Purchasing

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Figure 3.4 Automatic Sourcing Checkbox in the PIR

3.2.3 Material Master

From a procurement point of view, there aren’t many changes in the material master.

The most significant one is the field length for the material number (MATNR). In SAP

ERP, the Material Number field length was set to 18 characters by default. In SAP

S/4HANA, though, the Material Number field can support a material number with 40

characters. This provides flexibility to the organizations with material master

nomenclature requirements that could not previously be met due to character limits.

Now that we’ve outlined the key master data simplifications that impact sourcing

and procurement processes in SAP S/4HANA, let’s turn our attention to the features

and tools that enable sourcing and procurement in the new system.


Operational purchasing caters to the goods and services demands that arise due to

ongoing operations in an organization. Because these requirements are repetitive,

master data setup and material planning functionalities can be leveraged to effi-

ciently plan and execute procurement activities.

Operational purchasing can be divided into two different practices:

� Direct procurement

With direct procurement, purchase requisitions are generated from the MRP run.

The procurement department converts the purchase requisitions to purchase

orders manually or automatically based on the purchase requisition release date


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(the date on which the purchase order should be initiated from the purchase req-

uisition).

� Indirect procurement

The employee creates purchase requisitions in SAP S/4HANA. All indirect pur-

chase requisitions are approved by required approvers and converted to purchase

orders.

In this section, we’ll describe how SAP S/4HANA helps employees, buyers, and

approvers process purchase orders manually and automatically.

3.3.1 Self-Service Requisitions

Self-service requisitioning allows employees to procure goods and services through

purchase requisitions. Employees can create purchase requisitions with free text

items, or they can select items from an external catalog and submit the purchase req-

uisitions. Figure 3.5 shows the three SAP Fiori apps available for employees to procure

goods and services, monitor the status, and perform goods receipt:

� Create Purchase Requisition

Employee creates purchase requisitions to procure goods and services.

� My Purchase Requisitions

Employee monitors the status of purchase requisitions. Figure 3.6 shows a pur-

chase requisition with status and options.

� Confirm Receipt of Goods

Employee confirms receipt of goods and performs return delivery of goods.

Figure 3.5 SAP Fiori Apps for Self-Service Requisitioning

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Figure 3.6 Purchase Requisition Status from the My Purchase Requisitions App

3.3.2 Centralized Procurement Hub

In the previous section, we discussed how a user can leverage SAP S/4HANA to create

purchase requisitions and track their status for a business unit. This section explores

the possibility of managing requisitions for multiple business units (headquarter

and subsidiaries), which would allow large organizations to leverage the global econ-

omies of scale.

The central procurement hub, released in SAP S/4HANA 1809, allows buyers to man-

age procurement for multiple business units. These business units may be operating

on different SAP instances, including SAP ERP, SAP S/4HANA, and SAP S/4HANA

Cloud. Application programming interfaces (APIs) are available to ensure seamless

communication of these purchase requisitions into the central procurement system.

Purchase requisitions can be collectively processed in the central system, and the

corresponding purchase orders can be communicated to the respective subsidiaries.

The responsibility management feature of SAP S/4HANA enables these requisitions

to be allocated to responsible buyers. The subsequent activities, such as goods receipt

and invoice processing, can be completed at the subsidiaries.

The central procurement hub also helps to standardize business processes and to

achieve a cleaner enterprise architecture. Instead of multiple subsidiary systems con-

necting with other procurement applications, such as the Ariba Network, only a cen-

tral procurement system can be used for this integration and correspondence with

suppliers (see Figure 3.7).


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Figure 3.7 Central Procurement Hub Model

Next, let’s discuss the purchase order processing capabilities in SAP S/4HANA.

3.3.3 Managing Purchase Requisitions

Managing purchase requisitions is one of the important operational procurement

activities of the buyer. In SAP ERP, buyers use Transaction ME57 to convert a purchase

requisition to a purchase order. Buyers must go back and forth to change selection

parameters, requiring additional effort.

SAP S/4HANA offers the Manage Purchase Requisition app to manage purchase req-

uisitions in an effective manner. Using this app, buyers can convert purchase requi-

sitions to purchase orders and even create a request for quotation (RFQ) for

unsourced items. RFQs can be sent to the SAP Ariba Sourcing module to trigger the

sourcing event.

Note

Because the focus of this book is supply chain management with SAP S/4HANA, we’ll

limit our discussion of SAP Ariba here. However, if you’re looking for more informa-

tion about that suite of cloud procurement applications, we recommend SAP Ariba:

Business Processes, Functionality, and Implementation (www.sap-press.com/4769,

SAP PRESS 2019).

SAP S/4HANA forcentral procurement

SAP S/4HANA(1709 and

above)

SAP S/4HANACloud

SAP ERP(EHP 6.0 and

above)

Hub system

SAP Aribaapplications

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As shown in Figure 3.8, buyers can also use the filtering option in the header section

to filter the data by Purchasing Group and Plant and download the purchase requisi-

tion data for analysis.

Figure 3.8 The Manage Purchase Requisitions App

3.3.4 Purchase Order Processing

In most scenarios, purchase orders will be created automatically from the MRP run or

from converting the purchase requisition.

SAP S/4HANA provides the Create Purchase Order app, allowing you to quickly create

purchase orders based on search and filter options available in the header section. As

shown in Figure 3.9, you can also create purchase orders from info records or con-

tracts.

3.3.5 Purchasing Document Approval

SAP S/4HANA offers the transactional My Inbox app, which allows approvers to

approve purchase requisitions, purchase orders, contracts, and invoices from a single

SAP Fiori app. Figure 3.10 shows a purchase order that is in the approval process and

is waiting for the approver to take the next action. Users can select from several

options: Approve to approve the purchase order, Reject to deny the purchase order,

or even Forward to send this approval to another authorized user.


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Figure 3.9 The Create Purchase Order App

Figure 3.10 The My Inbox App

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In addition, SAP S/4HANA also provides three SAP Fiori apps to manage approval for

purchasing document workflows. These apps allow the users to manage workflows

for purchase contracts (Figure 3.11), purchase requisitions (Figure 3.12), and purchase

orders (Figure 3.13).

Figure 3.11 The Manage Workflow for Purchase Contracts App


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Figure 3.12 The Manage Workflow for Purchase Requisitions App

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Figure 3.13 The Manage Workflow for Purchase Orders App

3.3.6 Purchase Order Collaboration

Purchase order collaboration helps buyers and suppliers track purchase orders effec-

tively and provides visibility into purchase orders. SAP S/4HANA natively integrates

with the Ariba Network for purchase order collaboration, meaning that no additional

add-on or IT setup is required. With this native integration, users can seamlessly

communicate purchase orders, confirmations, advanced shipping notifications,

goods receipt information, and so on with suppliers on the Ariba Network.


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3.4 Supplier Management

In this section, we’ll review the key concepts of supplier management and how it

helps business users classify suppliers and generate analytical reports on supplier

performance. We’ll also describe supplier classification, purchasing categories, and

supplier evaluation in SAP S/4HANA.

3.4.1 Classification and Segmentation

In SAP ERP, there is no option to classify suppliers by means of strategic importance.

In SAP S/4HANA, however, you can classify suppliers by spend, strategic importance,

and supply risk. This supplier classification and segmentation is an ongoing process

that helps you classify suppliers at periodic intervals and allocate suppliers to seg-

ments. SAP S/4HANA offers the following features to support classification and seg-

mentation:

� Purchasing category

The purchasing category allows you to manage suppliers according to specific cat-

egories of goods and services. It plays an important role in the supplier evaluation

process and helps you compare evaluations of all suppliers in the same purchasing

category. One or more suppliers and one or more material groups can be managed

under a purchasing category. Figure 3.14 shows the creation of a purchasing cate-

gory with Suppliers and Materials Groups.

� Supplier classification

Suppliers can be classified as A, B, and C to identify strategic importance. You can

also maintain information about a relationship, such as whether the supplier is

designated to be a “preferred supplier.”

� Procurement activities and tasks

Supplier-related activities and tasks can be managed under the purchasing cate-

gory in SAP S/4HANA, as shown in Figure 3.15. In comparison, in SAP ERP, supplier-

related tasks and supplier activities are managed outside the system, and no

options are available to track supplier activities.

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Figure 3.14 Purchasing Category Creation

Figure 3.15 SAP Fiori Apps for Supplier Development Activities and Task Management


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3.4.2 Supplier Evaluation

In SAP ERP, supplier analytics requires data warehousing and doesn’t provide any

real-time visibility. No option is available in SAP ERP to perform supplier evaluation

from internal stakeholders.

On the other hand, SAP S/4HANA provides real-time insights into supplier evalua-

tion by quantity, price, and delivery date based on transactional documents through

analytical SAP Fiori apps. Supplier evaluation in SAP S/4HANA offers drilldown

options By Supplier, By Purchasing Group, By Purchasing Organization, By Purchasing

Category, By Material Group, By Plant, Document, Trend by Supplier, and Trend by

Purchasing Category. Let’s explore these further.

The Supplier Evaluation by Price app shown in Figure 3.16 provides a score for suppli-

ers based on variance in price. The score is calculated based on the variance between

the purchase order amount and the invoice amount over the period of one year.

Figure 3.16 The Supplier Evaluation by Price App

The Supplier Evaluation by Quantity app provides a score for suppliers based on vari-

ance in quantity between the ordered quantity in the purchase order and the deliv-

ered quantity recorded in goods receipt over a period of one year. Excess and less

delivered quantities are considered as variance. As shown in Figure 3.17, users can

navigate from this app to other related SAP Fiori apps by clicking on those tiles (here

on Operational Supplier Evaluation, Overall Supplier Evaluation, Supplier Evaluation

by Questionnaire, etc.).

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Figure 3.17 The Supplier Evaluation By Quantity App

The Supplier Evaluation by Time app scores suppliers based on the variance between

the delivery date in the purchase order and the delivered date of the item goods

received date. Late and early deliveries of items are considered as variance.

SAP S/4HANA also provides options to generate a supplier evaluation scorecard

based on evaluation questionnaires. Evaluation questionnaires are sent to internal

stakeholders within the company to collect information about suppliers. An evalua-

tion response includes answers and scoring from internal stakeholders, which helps

you generate the questionnaire score (soft score).

Figure 3.18 Overall Supplier Evaluation Score


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The overall supplier evaluation score can be seen holistically by combining the oper-

ational score (hard facts, e.g., supplier evaluation by price and quantity) with the

questionnaire score (soft score). Figure 3.18 shows the Overall Score by combining the

Operational Score and Questionnaire Score.

3.5 Invoicing and Payables Management

The invoicing and payables management process deals with receiving invoices, pro-

cessing invoices, viewing invoice open items, and processing vendor payments.

In this section, we’ll go through how SAP S/4HANA simplifies the process for ac-

counts payable clerks for managing supplier invoices and provides analytical in-

sights to the accounts payable process.

3.5.1 Invoice Processing and Collaboration

As shown in Figure 3.19, SAP S/4HANA’s Supplier Invoices List app serves as a dash-

board for accounts payable clerks to manage supplier invoices. With this SAP Fiori

app, you can use filter options such as Status, Reference, and Invoicing Party and view

invoice statuses in a single page. You can drill down to another SAP Fiori app, Supplier

Invoices, to create invoices, display invoice details, and reverse invoices. You can also

view draft invoices received from the Ariba Network and create supplier invoices

directly.

Figure 3.19 Supplier Invoice with Status

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3.5 Invoicing and Payables Management

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There is no invoice collaboration functionality in SAP S/4HANA. Instead, SAP recom-

mends that customers implement the Ariba Network, which natively integrates with

SAP S/4HANA, for receiving invoices and sending invoice status updates and pay-

ment-related information to suppliers.

3.5.2 Accounts Payable

Analytical SAP Fiori apps in SAP S/4HANA provide visibility to accounts payable key

performance indicators (KPIs) such as days payables outstanding (DPO). With the

Days Payables Outstanding app shown in Figure 3.20, you can analyze the top 10 sup-

pliers with the highest DPO.

Figure 3.20 Days Payables Outstanding for Top 10 Suppliers

SAP S/4HANA also provides the Overdue Payables app shown in Figure 3.21 for view-

ing to view overdue payable amounts by supplier and by company code. This app

provides a status for the overdue payable amounts and can be leveraged to identify

upcoming payments and potential risks so that the responsible personnel can

address them.


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Figure 3.21 The Overdue Payables App

3.6 Collaborative Sourcing and Contract Management

Sourcing plays an important role in identifying new sources of supply (suppliers) for

purchase requisitions without a current source of supply, creating contracts with

suppliers, and maintaining valid sources of supply per business requirements.

3.6.1 Source Assignment

Many different sources of supply are available to fulfill procurement needs. In SAP

ERP, the buyer needs to navigate to multiple transactions (Create, Change, and Dis-

play) to maintain contracts, quota arrangements, source lists, and PIRs. It’s also diffi-

cult for buyers to view source of supply validity because they have to navigate

through multiple transactions.

SAP S/4HANA offers the Manage Sources of Supply app, which provides a holistic

view of the sources of supply in a single dashboard with the source of supply validity.

Buyers can also create and edit source lists and contracts from this SAP Fiori app.

Individual SAP Fiori apps that are one level more granular, such as Manage Info

Record, Manage Contract, and Manage Source List, are also available. Figure 3.22

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3.6 Collaborative Sourcing and Contract Management

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shows the Manage Sources of Supply app displaying a material 100050 from the sup-

plier Foreign US Supplier 31.

Figure 3.22 Source of Supply with Validity

For unsourced demand (i.e., for purchase requisitions without a source of supply) and

for new sourcing needs (from RFQs), buyers can initiate sourcing events from SAP

S/4HANA to SAP Ariba Sourcing.

SAP S/4HANA offers native (built-in) integration to the Ariba Network for sending

RFQs to create sourcing requests in SAP Ariba Sourcing. In this workflow shown in

Figure 3.23, the sourcing manager is notified to review sourcing requests.

Figure 3.23 Sourcing Request from SAP S/4HANA to SAP Ariba

SAP AribaStrategic Sourcing

SAPS/4HANA

Ariba Network

Purchaserequisition

Request forquotation

Sourcingrequest

Sourcingproject

RFX/auction Award

Supplierresponse

Managequotation

Purchaseorder

Manage purchaserequisition without source of supply (SAP Fiori app)

Manage request for quotation(SAP Fiori app)

SupplierLegend: Buyer Standard integration


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Based on a relevant template, the sourcing project allows sourcing managers to man-

age supplier collaboration, monitoring, and execution; scoring of supplier response;

and awarding the supplier. After awarding a sourcing event, the awarded supplier

quotation is sent to SAP S/4HANA. The purchase order is created in SAP S/4HANA

based on the approved supplier quotation.

3.6.2 Operational Contract Management

Contract management involves the process of creating contracts with suppliers and

monitoring contracts to ensure contract compliance. For this, SAP S/4HANA offers

the Manage Purchase Contracts app. As shown in Figure 3.24, this SAP Fiori app helps

you monitor important information such as contract target value, consumed value,

valid from, valid to, and validity status in a single dashboard. Buyers can sort, filter,

and drill down to individual contracts and supplier master data. Buyers can also

renew the contracts from this screen.

Figure 3.24 List of Contracts and Statuses

SAP S/4HANA offers analytical SAP Fiori apps for contract management. More de-

tailed information about contracts is covered next.

3.7 Reporting and Analytics

In SAP ERP, there is no easy way to track supplier spend, classification of purchase

order spends, nonpurchase order invoice spends, and supplier evaluation. Procure-

ment-related analytics are dependent on the data warehousing system, and it can be

difficult to view operational and strategic procurement activities. The following pain

points are common in procurement analytics:

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� Spend visibility

No easy way to track procurement spend by supplier, material, or cost center.

� Insights to procurement activities

Lack of procurement insights (e.g., purchase orders running late, amount spent on

nonpurchase order invoices, and contracts expiring soon).

� Multiple data sources

Procurement data extracted from multiple sources and multiple transactions.

� Supplier evaluation

No efficient way to generate metrics around evaluating suppliers.

SAP S/4HANA offers role-based SAP Fiori apps that allow you to make decisions

quickly and efficiently. Analytical SAP Fiori apps bring visibility by enabling you to

track KPIs and analyze data graphically or in tabulated format. You can get real-time

KPI-driven analytics in purchasing spend, invoice spend, contract compliance, and

supplier evaluation.

In this section, we’ll show you the importance of the procurement overview page and

how buyers can get all required procurement data in a single dashboard. We’ll also

show you how SAP Fiori apps for sourcing and procurement provide you with real-

time insights and analytical reporting capabilities in spend visibility, contract analyt-

ics, and supplier evaluation.

3.7.1 Procurement Overview Page

SAP S/4HANA offers the Procurement Overview Page app, which serves as a single

dashboard for buyers to monitor daily tasks easily and effectively—without navigat-

ing to multiple SAP Fiori apps. At the same time, this app gives the procurement

manager a high-level picture the procurement activity. Thanks to this, the manager

can proactively identify key areas that need improvements and address them prop-

erly.

The Procurement Overview app (see Figure 3.25) contains the following components:

� Filtering option

Options to filter the content by supplier, plant, material group, and purchasing

group.

� Operational cards

Information about contracts expiring soon and purchase requisitions without a

source of supply to support operational procurement activities.


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� Analytical cards

Information such as purchasing spend by supplier, supplier evaluation trend, and

overall supplier evaluation score to support strategic procurement activities.

Figure 3.25 The Procurement Overview App

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3.7.2 Spend Visibility

SAP S/4HANA offers key analytical SAP Fiori apps to track purchase order spend,

spend variance, and nonmanaged spend (amount of spend to suppliers without pur-

chase orders). This section introduces some key analytical SAP Fiori apps in sourcing

and procurement functions that add value to business by providing spend visibility.

The Purchase Order Value app calculates the total purchase order value in the system

and offers drilldown capabilities by purchase category, material group, supplier, and

trend comparison (see Figure 3.26). By using this app, users can perform various anal-

yses to track purchase order spend and get a clear picture of the company’s total

spend.

Figure 3.26 The Purchase Order Value App

The Spend Variance app calculates the percentage variance between purchase order,

goods receipt, and invoice receipt (see Figure 3.27). This app not only helps buyers

identify the variance but also offers drilldown functionality so that the root cause can

be addressed and resolved.

The Non-Managed Spend app shown in Figure 3.28 calculates the total amount paid

to the supplier without a purchase order reference in relation to the total spend for


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that supplier. As a best practice, this spend should be minimized and controlled to

avoid maverick spending.

Figure 3.27 The Spend Variance App

Figure 3.28 The Non-Managed Spend App

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The Overdue Purchase Order Items app (see Figure 3.29) provides the total number of

purchase order items that have delivery dates in the past but haven’t been delivered

by the supplier. With both the net values of the purchase order and the number of

overdue items, users can understand the impact of this late delivery. This informa-

tion can be leveraged by the procurement department to identify the source of mate-

rial unavailability and take appropriate actions.

Figure 3.29 The Overdue Purchase Order Items App

These SAP Fiori apps can be customized based on users’ needs. Procurement users

can create user-specific thresholds and monitor the KPIs per business requirements.

Figure 3.30 provides an example of the threshold definition that can be customized

with the Overdue Purchase Order Items app. In this example, we’ve set 300 overdue

items as the Critical High threshold, 250 overdue items as the Warning High thresh-

old, and 225 as the Target.


122

Figure 3.30 Threshold Definition in the Overdue Purchase Order Items App

Additionally, SAP S/4HANA enables users to quickly navigate from the analytical

apps to other factsheet and/or transactional apps. Thanks to this, users can navigate

to transactional object pages from any SAP Fiori app to view details related to master

data and transactional data information. As shown in Figure 3.31, from the Purchase

Order Value app, you can use the Open In button to learn more information, such as

the supplier and the purchasing category, about the specific purchase order.

Figure 3.31 Object Navigation Options in the Purchase Order Value App

123


3

3.7.3 Contract Analytics

Another key area for sourcing and procurement analytics is around contract compli-

ance. Contract analytics in SAP S/4HANA provides visibility to contracts and ensures

you achieve contract compliance. We recommend several SAP Fiori apps in SAP

S/4HANA related to contract analytics for getting insight into contract compliance.

The Off-Contract Spend app shown in Figure 3.32 measures the amount and the calcu-

lated percentage of the purchase orders created without any contract reference. By

using this app, buyers can ensure contract compliance and identify vendors with

high off-contract spends. This information then can be leveraged to negotiate a new

contract with the vendor to create saving opportunities.

Figure 3.32 The Off-Contract Spend App

The Contract Expiry app in Figure 3.33 displays the number of purchase contracts that

are nearing expiry within a predefined time frame. It’s essential for buyers to know

the contract expiration dates so that they can act on them, either by renewing the

contract or by beginning to identity a different vendor for a new contract.

Finally, the Contract Leakage app in Figure 3.34 helps to measure the total spend of

purchase orders created in the system without reference to existing contracts. This


124

data is useful to identify contract incompliance instances so that buyers can take the

next step appropriately based on this.

Figure 3.33 The Contract Expiry App

Figure 3.34 The Contract Leakage App

125

3.8 Summary

3

3.7.4 Procurement Activities Monitoring

SAP S/4HANA also offers several SAP Fiori apps, such as Purchase Requisition Aver-

age Approval Time and Purchasing Group Activities (Buyers), to track and monitor

purchasing processes effectively and optimize procurement processes. For example,

the Purchasing Group Activities app shown in Figure 3.35 shows the number of pur-

chase orders, number of receipts, purchase order amount, and invoice amount to

help you monitor procurement-related activities.

Figure 3.35 Monitoring Procurement Activities in the Purchasing Group Activities App

3.8 Summary

This chapter outlined how SAP S/4HANA handles sourcing and procurement busi-

ness requirements. We also discussed the business partner concept for vendor mas-

ter maintenance and new sourcing logic in SAP S/4HANA. Most of the chapter

explained how SAP S/4HANA helps you run core sourcing and procurement pro-

cesses: operational purchasing, collaborative sourcing and contract management,

supplier management, and invoicing and payables management. We looked at pro-

curement analytics and how SAP Fiori apps provide visibility to procurement spend,

operational procurement, and contract management.


126

Additional Resources

For more information on sourcing and procurement in the new suite, we recommend

Sourcing and Procurement in SAP S/4HANA by Justin Ashlock (www.sap-press.com/

4551, SAP PRESS 2018).

The next chapter will discuss manufacturing—the next step toward fulfilling cus-

tomer demands.

7

Contents

Foreword ................................................................................................................................................ 21

Preface ..................................................................................................................................................... 23

1 SAP S/4HANA for the Supply Chain 29

1.1 Architecture ............................................................................................................................ 37

1.1.1 In-Memory Processing ........................................................................................ 38

1.1.2 Real-Time Analytics ............................................................................................. 38

1.1.3 Improved Data Quality ....................................................................................... 39

1.2 Solution .................................................................................................................................... 40

1.2.1 Streamlined Procure-to-Pay .............................................................................. 41

1.2.2 Accelerated Plan-to-Product ............................................................................. 42

1.2.3 Optimized Order-to-Cash .................................................................................. 44

1.2.4 Enhanced Request-to-Service ........................................................................... 45

1.3 Deployment Options .......................................................................................................... 46

1.3.1 On-Premise ............................................................................................................. 46

1.3.2 Cloud ......................................................................................................................... 47

1.4 Summary ................................................................................................................................. 48

2 Planning and Scheduling 51

2.1 Planning and Scheduling Basics .................................................................................... 52

2.2 Master Data Simplifications ........................................................................................... 53

2.3 Simplified Sourcing ............................................................................................................. 57

2.4 Materials Requirements Planning ............................................................................... 57

2.4.1 MRP Live ................................................................................................................... 58

2.4.2 MRP Cockpit ........................................................................................................... 61

2.4.3 Demand-Driven Replenishment ...................................................................... 72

Contents

8

2.5 Production Planning and Detailed Scheduling ...................................................... 75

2.5.1 Production Planning ........................................................................................... 77

2.5.2 Detailed Scheduling ............................................................................................ 77

2.5.3 SAP Fiori Applications for Production Planning

and Detailed Scheduling ................................................................................... 80

2.5.4 Combined Production Planning Approach with PP/DS

and MRP Live .......................................................................................................... 85

2.6 Reporting and Analytics ................................................................................................... 86

2.6.1 Resource Planning Table .................................................................................... 86

2.6.2 Product Planning Table ...................................................................................... 87

2.6.3 Alert Monitor ......................................................................................................... 88

2.6.4 Production Planning and Detailed Scheduling Standard Reports ....... 88

2.7 Summary ................................................................................................................................. 91

3 Sourcing and Procurement 93

3.1 Sourcing and Procurement Basics ............................................................................... 93


3.2.1 Business Partners ................................................................................................. 95

3.2.2 Sourcing Logic ....................................................................................................... 98

3.2.3 Material Master .................................................................................................... 99

3.3 Operational Purchasing .................................................................................................... 99

3.3.1 Self-Service Requisitions .................................................................................... 100

3.3.2 Centralized Procurement Hub ......................................................................... 101

3.3.3 Managing Purchase Requisitions ................................................................... 102

3.3.4 Purchase Order Processing ............................................................................... 103

3.3.5 Purchasing Document Approval ..................................................................... 103

3.3.6 Purchase Order Collaboration ......................................................................... 107

3.4 Supplier Management ...................................................................................................... 108

3.4.1 Classification and Segmentation ................................................................... 108

3.4.2 Supplier Evaluation ............................................................................................. 110

3.5 Invoicing and Payables Management ....................................................................... 112

3.5.1 Invoice Processing and Collaboration ........................................................... 112

3.5.2 Accounts Payable ................................................................................................. 113

9

Contents

3.6 Collaborative Sourcing and Contract Management ............................................ 114

3.6.1 Source Assignment .............................................................................................. 114

3.6.2 Operational Contract Management .............................................................. 116


3.7.1 Procurement Overview Page ............................................................................ 117

3.7.2 Spend Visibility ...................................................................................................... 119

3.7.3 Contract Analytics ................................................................................................ 123

3.7.4 Procurement Activities Monitoring ................................................................ 125

3.8 Summary ................................................................................................................................. 125

4 Manufacturing 127

4.1 Manufacturing Basics ........................................................................................................ 127


4.2.1 Material Master .................................................................................................... 128

4.2.2 Bill of Materials/Production Version .............................................................. 132

4.2.3 Work Centers ......................................................................................................... 135

4.3 Production Execution ......................................................................................................... 138

4.3.1 Production and Process Order Processing .................................................... 138

4.3.2 Shop Floor Control ................................................................................................ 146

4.3.3 Scrap Management ............................................................................................. 148

4.4 Manufacturing Execution ................................................................................................ 153

4.5 Manufacturing Integration and Intelligence .......................................................... 153


4.6.1 Production and Process Order Reporting ..................................................... 156

4.6.2 Overall Equipment Effectiveness Management ........................................ 158

4.7 Summary ................................................................................................................................. 161

Contents

10

5 Quality Management 163

5.1 Quality Management Basics .......................................................................................... 164


5.3 Quality Engineering ........................................................................................................... 166

5.3.1 Quality Information Management ................................................................ 166

5.3.2 Quality Systems Monitoring ............................................................................ 167

5.4 Quality Inspection ............................................................................................................... 169

5.4.1 Inspection Planning ............................................................................................. 169

5.4.2 Sampling ................................................................................................................. 178

5.4.3 Usage Decision ...................................................................................................... 180

5.5 Quality Improvement ........................................................................................................ 182

5.5.1 Defect Recording .................................................................................................. 182

5.5.2 Quality Notification ............................................................................................ 185

5.6 Integration with Supply Chain Processes ................................................................. 187

5.6.1 Materials Management ..................................................................................... 187

5.6.2 Production Planning ........................................................................................... 189

5.6.3 Sales and Distribution ........................................................................................ 190


5.7.1 Manage Quality Levels ....................................................................................... 191

5.7.2 Quality Engineer Overview ............................................................................... 192

5.7.3 Quality Technician Overview ........................................................................... 193

5.7.4 Inspection lot Analytics ...................................................................................... 194

5.7.5 Inspection Lot Detailed Analytics ................................................................... 195

5.7.6 Characteristic Analytics ..................................................................................... 196

5.7.7 Characteristic Detailed Analytics .................................................................... 196

5.7.8 Results History ...................................................................................................... 197

5.8 Summary ................................................................................................................................. 198

11

Contents

6 Plant Maintenance and Asset Management 199

6.1 Plant Maintenance and Asset Management Basics ............................................. 199


6.2.1 Managing Technical Objects ............................................................................ 201

6.2.2 Reporting and Identifying Technical Objects .............................................. 203

6.2.3 Managing Task List Master Data ..................................................................... 207

6.3 Maintenance Processing .................................................................................................. 209

6.3.1 Schedule Material Availability Check ............................................................ 209

6.3.2 Maintenance Planning ....................................................................................... 210

6.3.3 Mobile Device Processing .................................................................................. 214

6.3.4 Maintenance Work Orders ................................................................................ 221

6.4 Preventative Maintenance .............................................................................................. 225

6.4.1 Maintenance Plan Scheduling ......................................................................... 226

6.4.2 Maintenance Plans with Item Lists ................................................................ 229

6.4.3 Measurement Documents ................................................................................ 230

6.5 Predictive Maintenance .................................................................................................... 232


6.6.1 Enterprise Asset Management Information Center ................................. 235

6.6.2 Malfunctions .......................................................................................................... 236

6.6.3 Overview Pages ..................................................................................................... 236

6.7 Summary ................................................................................................................................. 237

7 Sales Order Management 239

7.1 Sales Order Management Basics .................................................................................. 239


7.2.1 Business Partner Grouping ................................................................................ 240

7.2.2 Business Partner Roles ........................................................................................ 241

7.3 Sales Contract Management .......................................................................................... 245

7.3.1 Create, Change, and Display Contracts ......................................................... 245

7.3.2 List Incomplete Sales Contracts ....................................................................... 247

Contents

12

7.3.3 Sales Contract Fulfillment Rates ..................................................................... 249

7.3.4 Manage Subscription Contracts ..................................................................... 249

7.4 Sales Order Management and Processing ............................................................... 251

7.4.1 Sales Order Processing ....................................................................................... 252

7.4.2 Sales Process Analysis ......................................................................................... 255

7.5 Available to Promise .......................................................................................................... 259

7.5.1 Product Availability Check ................................................................................ 259

7.5.2 Product Allocation ............................................................................................... 260

7.5.3 Backorder Processing .......................................................................................... 262

7.5.4 Release for Delivery ............................................................................................. 264

7.5.5 Alternative-Based Confirmation ..................................................................... 265

7.6 Variant Configuration ....................................................................................................... 266

7.6.1 Classic Variant Configuration .......................................................................... 267

7.6.2 Advanced Variant Configuration .................................................................... 270

7.7 Sales Billing ............................................................................................................................ 271

7.7.1 Billing and Invoicing for Goods and Services .............................................. 272

7.7.2 Subscription Billing and Invoicing .................................................................. 275

7.7.3 Contract Accounts Receivable and Payable ................................................ 276

7.7.4 Credit Management ............................................................................................ 278

7.7.5 Revenue Accounting and Recognition .......................................................... 282

7.8 Output Management ........................................................................................................ 284

7.9 Delivery and Shipping Processing ................................................................................ 285

7.10 Claims, Returns, and Refunds Management .......................................................... 288

7.10.1 Rebates and Settlement Management ........................................................ 288

7.10.2 Complaint Management ................................................................................... 292

7.11 International Trade ............................................................................................................ 295


7.12.1 Sales Operations Artifacts ................................................................................. 298

7.12.2 Sales Analytics ....................................................................................................... 299

7.12.3 Sales Information Display ................................................................................. 302

7.12.4 Sales Performance ............................................................................................... 303

7.12.5 Sales Order Processing ....................................................................................... 303

7.13 Summary ................................................................................................................................. 307

13

Contents

8 Transportation Management 309

8.1 Transportation Management Basics ........................................................................... 309


8.2.1 General Master Data and Organizational Structure ................................ 312

8.2.2 Product Master Data ........................................................................................... 312

8.2.3 Business Partner ................................................................................................... 312

8.2.4 Dangerous Goods ................................................................................................. 313

8.2.5 Transportation Network .................................................................................... 313

8.2.6 Transportation Schedules .................................................................................. 314

8.2.7 Transportation Resources .................................................................................. 315

8.3 Transportation Requirements ....................................................................................... 315

8.3.1 Order and Delivery Management ................................................................... 315

8.3.2 Forwarding Order Management ..................................................................... 317

8.4 Capacity Management ...................................................................................................... 318

8.4.1 Strategic Freight Procurement ......................................................................... 318

8.4.2 Strategic Freight Selling ..................................................................................... 321

8.4.3 Tactical Capacity Planning ................................................................................ 321

8.4.4 Operational Capacity Planning ........................................................................ 322

8.5 Transportation Planning .................................................................................................. 324

8.5.1 Freight Units ........................................................................................................... 324

8.5.2 Freight Orders ........................................................................................................ 325

8.5.3 Freight Booking ..................................................................................................... 326

8.5.4 Transportation Units ........................................................................................... 327

8.5.5 Transportation Cockpit ....................................................................................... 328

8.5.6 Manual Planning .................................................................................................. 332

8.5.7 Automated Planning ........................................................................................... 333

8.5.8 Distance and Duration Determination ......................................................... 336

8.5.9 Service Order .......................................................................................................... 336

8.5.10 Direct Shipments .................................................................................................. 337

8.6 Carrier Selection and Subcontracting ......................................................................... 337

8.6.1 Carrier Selection Constraints ............................................................................ 338

8.6.2 Freight Tendering ................................................................................................. 339

8.7 Transportation Monitoring and Execution .............................................................. 341

8.7.1 Documentation and Output Management ................................................. 342

Contents

14

8.7.2 Event Management ............................................................................................. 343

8.8 Freight Charge Management and Settlement ....................................................... 344

8.8.1 Charge Calculation .............................................................................................. 344

8.8.2 Charge Settlement .............................................................................................. 347

8.8.3 Cost Distribution and Internal Settlement ................................................. 349


8.9.1 Freight Order Execution ..................................................................................... 350

8.9.2 Freight Tendering ................................................................................................. 353

8.9.3 Freight Booking Execution ................................................................................ 354

8.10 Summary ................................................................................................................................. 356

9 Inventory Management 357

9.1 Inventory Management Basics ..................................................................................... 358


9.2.1 Batch Management ............................................................................................ 359

9.2.2 Material Numbers ................................................................................................ 360

9.2.3 Aggregate Tables ................................................................................................. 360

9.2.4 Blocking Customer and/or Supplier Records .............................................. 361

9.2.5 Locking versus Logistics Information System ............................................. 361

9.2.6 Transaction MIGO ................................................................................................ 361

9.3 Material Movements ......................................................................................................... 362

9.3.1 Goods Receipt from Vendor ............................................................................. 362

9.3.2 Stock Transfer between Storage Locations ................................................. 364

9.3.3 Stock Transfer between Plants ........................................................................ 370

9.3.4 Post Goods Movement ....................................................................................... 375

9.4 Handling Unit Management .......................................................................................... 376

9.5 Physical Inventory Management ................................................................................. 378

9.6 Inventory Valuation ........................................................................................................... 381

9.6.1 Goods Movement Valuation ............................................................................ 381

9.6.2 Statistical Moving Average Price .................................................................... 381


9.7.1 Inventory Turnover Analysis ............................................................................. 383

15

Contents

9.7.2 Material Document Overview .......................................................................... 385

9.7.3 Material Document List ...................................................................................... 385

9.7.4 Material Inventory Values ................................................................................. 387

9.7.5 Stock Overview ...................................................................................................... 388

9.8 Summary ................................................................................................................................. 389

10 Warehouse Management 391

10.1 Warehouse Management Basics .................................................................................. 392

10.1.1 Traditional versus Extended Warehouse Management ......................... 393

10.1.2 Basic versus Advanced Warehouse Management .................................... 394


10.2.1 Business Partners ................................................................................................. 399

10.2.2 Material Master .................................................................................................... 400

10.2.3 Batch Master .......................................................................................................... 401

10.2.4 Dangerous Goods and Hazardous Data ........................................................ 402

10.2.5 Handling Unit Type .............................................................................................. 402

10.2.6 Remote Function Call Communication ......................................................... 402

10.2.7 Freight Order Management .............................................................................. 403

10.2.8 Route Determination .......................................................................................... 403

10.3 Inbound Processing ............................................................................................................. 403

10.3.1 Receiving from Vendor ....................................................................................... 404

10.3.2 Receiving from Production ................................................................................ 405

10.3.3 Receiving for Plant-to-Plant Transfers .......................................................... 407

10.3.4 Quality Management Integration ................................................................... 407

10.3.5 Inbound Documents ............................................................................................ 408

10.4 Outbound Processing ......................................................................................................... 412

10.4.1 Issuing for Customers ......................................................................................... 413

10.4.2 Staging and Consumption for Production ................................................... 415

10.4.3 Unplanned Goods Issues .................................................................................... 416

10.5 Internal Warehouse Processing .................................................................................... 417

10.5.1 Posting Change ..................................................................................................... 418

10.5.2 Replenishment ...................................................................................................... 419

10.5.3 Kitting ....................................................................................................................... 420

Contents

16

10.5.4 Slotting .................................................................................................................... 421

10.5.5 Ad Hoc Movements ............................................................................................. 422


10.6.1 The Warehouse Monitor ................................................................................... 423

10.6.2 The Warehouse Cockpit ..................................................................................... 424

10.6.3 Stock Comparison ................................................................................................ 424

10.7 Summary ................................................................................................................................. 425

11 Reporting and Analytics 427

11.1 Business Intelligence Maturity ..................................................................................... 427

11.1.1 Reporting ................................................................................................................ 428

11.1.2 Analytics .................................................................................................................. 429

11.2 Tactical Reporting in SAP S/4HANA ............................................................................ 431

11.3 SAP S/4HANA Embedded Analytics ............................................................................ 437

11.3.1 Architecture ........................................................................................................... 437

11.3.2 Benefits ................................................................................................................... 439

11.3.3 Business Intelligence Tools ............................................................................... 440

11.4 Summary ................................................................................................................................. 443

12 Innovation with SAP Leonardo 445

12.1 What Is SAP Leonardo? ..................................................................................................... 446

12.2 Machine Learning ............................................................................................................... 449

12.3 Internet of Things ............................................................................................................... 450

12.4 Virtual Reality and Augmented Reality .................................................................... 452

12.5 Natural Language Processing ........................................................................................ 455

12.6 Robotics ................................................................................................................................... 457

12.7 Blockchain .............................................................................................................................. 459

12.8 Summary ................................................................................................................................. 463

17

Contents

13 Industry 465

13.1 What Is Industry 4.0? ......................................................................................................... 465

13.2 Digital Supply Networks ................................................................................................... 468

13.3 Consumer and Industrial Products .............................................................................. 473

13.3.1 Faster Customer Delivery Times ...................................................................... 473

13.3.2 Material Requirements Planning and Integrated Business

Planning ................................................................................................................... 475

13.3.3 Accelerated Product Development ................................................................. 476

13.3.4 Responsive Supplier Collaboration ................................................................. 477

13.3.5 Manufacturing Asset Efficiency and Cost Optimization ......................... 478

13.4 Life Sciences ........................................................................................................................... 479

13.4.1 Unique Device Identifier .................................................................................... 479

13.4.2 Tax-Advantaged Supply Chain ......................................................................... 480

13.4.3 Track and Trace ..................................................................................................... 482

13.5 Oil and Gas .............................................................................................................................. 484

13.5.1 Inventory Planning and Execution .................................................................. 484

13.5.2 Commodity Management ................................................................................. 485

13.6 Summary ................................................................................................................................. 487

14 SAP S/4HANA and the Cloud 489

14.1 Cloud Computing with SAP ............................................................................................. 489

14.1.1 Cloud Architecture ............................................................................................... 491

14.1.2 SAP S/4HANA Cloud ............................................................................................ 492

14.1.3 Choosing the Cloud ............................................................................................. 495

14.1.4 Operating in the Cloud ....................................................................................... 496

14.2 SAP Ariba ................................................................................................................................. 497

14.2.1 Spend Analysis ....................................................................................................... 498

14.2.2 Supplier Management ........................................................................................ 498

14.2.3 Sourcing and Contracts ...................................................................................... 498

14.2.4 Procurement and Invoice Management ....................................................... 500

14.2.5 Other Capabilities ................................................................................................ 500

14.2.6 Integration with SAP S/4HANA ....................................................................... 500

Contents

18

14.3 SAP Integrated Business Planning ............................................................................... 502

14.3.1 Sales and Operations Planning ....................................................................... 503

14.3.2 Demand Planning ................................................................................................ 503

14.3.3 Response and Supply Planning ....................................................................... 504

14.3.4 Inventory Planning .............................................................................................. 505

14.3.5 SAP Supply Chain Control Tower .................................................................... 506

14.3.6 User Experience .................................................................................................... 507

14.3.7 Integration with SAP S/4HANA ....................................................................... 508

14.4 Summary ................................................................................................................................. 509

15 First Steps to SAP S/4HANA 511

15.1 Business Transformation Goals .................................................................................... 512

15.1.1 Confirming Your Business Priorities .............................................................. 512

15.1.2 Evaluating Business Processes in SAP S/4HANA ....................................... 513

15.2 Defining a Digital Transformation Roadmap ......................................................... 517

15.2.1 Designing Your Roadmap .................................................................................. 517

15.2.2 Sharing Your Roadmap ...................................................................................... 520

15.2.3 Planning and Implementing Your Roadmap .............................................. 520

15.3 Selecting an SAP S/4HANA Implementation Approach .................................... 525

15.3.1 New Implementation (Greenfield) ................................................................. 526

15.3.2 System Conversion (Brownfield) .................................................................... 527

15.3.3 Landscape Transformation ............................................................................... 528

15.3.4 SAP Activate Methodology ............................................................................... 530

15.4 Summary ................................................................................................................................. 533

Appendices 535

A SAP Fiori Applications for Logistics with SAP S/4HANA .................................... 535

A.1 Planning and Scheduling ................................................................................... 535

A.2 Sourcing and Procurement ............................................................................... 539

A.3 Manufacturing ...................................................................................................... 541

A.4 Quality Management ......................................................................................... 546

19

Contents

A.5 Plant Maintenance and Asset Management .............................................. 547

A.6 Sales Order Management .................................................................................. 549

A.7 Transportation Management ........................................................................... 557

A.8 Inventory Management ..................................................................................... 559

A.9 Warehouse Management .................................................................................. 560

B The Authors ............................................................................................................................ 563

Index ........................................................................................................................................................ 573

573

Index

A

ABAP ................................................................ 428, 431

ABAP for Eclipse .................................................... 437

ABC Analysis for Cycle Counting app ........... 378

Accelerated plan-to-product ............................... 42

Accounts payable (AP) .............................. 113, 276

Accounts receivable (AR) ................................... 276

Actual sales .............................................................. 256

Actual scrap ................................................... 149, 151

Additive manufacturing .................................... 458

Advanced Planning view ...................................... 56

Advanced shipping notification (ASN) ........ 404

Aggregate tables .................................................... 360

Alert Monitor tool ................................................... 88

Allocation .............................................. 318, 320, 339

Allocation quantities ........................................... 261

Alternative-based confirmation (ABC) 252, 266

Analysis Path Framework (APF) ...................... 435

Analytics ......................................................... 427, 471

Application programming interfaces

(APIs) .................................................. 101, 463, 491

Whitelisted APIs ................................................ 495

Ariba Network ........ 101, 107, 112, 467, 500, 506

Artificial intelligence (AI) ................ 254, 448, 466

Assign Product to Product Allocation

app ......................................................................... 261

Auction ..................................................................... 499

Augmented reality (AR) ...................................... 452

Authority-to-load (ATL) ...................................... 487

Automatic sourcing ...................................... 98, 135

Autonomous IoT ................................................... 451

Autonomous vehicles ......................................... 458

Availability check .................................................. 262

Available-to-promise (ATP) ..................... 259, 474

Advanced ATP (AATP) ......................... 252, 259

Global ATP (gATP) ............................................ 259

Average moving price ......................................... 381

B

Back order ................................................................ 262

Backorder processing (BOP) .................... 262, 474

Advanced ............................................................ 262

Basic ............................................................. 259, 262

BOP cockpit ........................................................ 263

BOP segment ..................................................... 263

Barcode ............................................................ 219, 404

Batch .......................................................................... 418

Batch assignment ................................................. 408

Batch management .................................... 358, 359

Tables .................................................................... 359

Batch master ........................................................... 401

Benefit potential map ......................................... 523

Bias ............................................................................. 504

Big Data .................................................................... 447

Bill of lading ............................................................ 342

Bill of materials (BOM) ..... 52, 77, 131, 132, 152,

156, 200, 220, 266

Components .......................................................... 85

Explosion ............................................................. 133

Migrate ................................................................ 133

Multilevel BOM .................................................... 74

Biller Direct ............................................................. 292

Biller Direct app ..................................................... 292

Billing ............................................................... 271, 284

Billing document ............ 271, 272, 276, 284, 300

Manage ................................................................ 272

Schedule ............................................................... 274

Billing document request (BDR) ..................... 274

Manage ................................................................ 274

Billing output ......................................................... 274

Bin location .................................................... 405, 410

Blockchain ............................................ 446, 451, 459

Blockchain-as-a-service ...................................... 463

Broadcast tendering ............................................ 339

Brownfield implementation ............................ 527

Buffer level ................................................................. 73

Buffer level management .................................... 74

Business case ................................................. 524, 531

Index

574

Business intelligence maturity ....................... 427

Analytics .............................................................. 429

Reporting ............................................................ 428

Business partner ................ 95, 240, 312, 399, 514

Change ................................................................. 242

Create ................................................................... 242

Delete .................................................................... 242

Business partner grouping ........................ 96, 240

Business partner number range ..................... 241

Business partner role ................................... 97, 241

Business priorities ............................................... 512

Business Process Improvement (BPI) ... 514, 515

Business processes ................... 513, 526, 527, 532

Business role ................................................. 242, 299

Business Rules Framework (BRF) ................... 284

Business share .............................................. 318, 338

Business Share app .............................................. 323

Business transformation ................................... 525

Business-to-business (B2B) ............................... 473

Business-to-consumer (B2C) ............................ 473

C

Calendar resource ................................................ 315

Capability application map .............................. 523

Capability map ...................................................... 520

Capability scope .................................................... 522

Capability segmentation ................................... 522

Capacity leveling ..................................................... 52

Capacity management .............................. 310, 318

Carrier selection and subcontracting ... 310, 337

Carrier selection constraints ........................... 338

Carriers ............................................................ 318, 321

Catch weight tolerance groups ....................... 402

Central procurement hub ................................. 101

Centralized procurement .................................. 101

Certification requirement ................................. 514

Change Billing Documents app ...................... 272

Change Complaint – Settlement

Management app ............................................ 295

Change Contract app ........................................... 246

Change Maintenance Order app .................... 223

Change management ................................ 168, 523

Change Sales Order app ............................ 254, 288

Change Technical Object app ................. 202, 203

Characteristic Analytics app ............................ 196

Characteristic Detailed Analytics app ........... 196

Characteristics ........................................................ 268

Characteristics valuation ................................... 174

Characteristics values ................................ 261, 269

Charge calculation ................................................ 344

Charge settlement ................................................ 347

Chatbot ...................................................................... 456

Claims management ............................................ 288

Cloud computing .................................................. 489

Benefits ................................................................. 490

Considerations .................................................. 495

Deployment ........................................................ 496

Operations .......................................................... 496

Cloud connectors .................................................. 491

Cloud deployment .................................................. 47

Cloud first ................................................................. 492

Cognitive computing ................................. 448, 466

Collaborative robot .............................................. 458

Collaborative sourcing and contract

management ............................................... 41, 114

Commercial project management (CPM) ... 476

Commodity management ................................. 485

Commodity Pricing Engine (CPE) ................... 486

Complaint management .................................... 292

Complaints Workbench ...................................... 293

Completed contracts ........................................... 248

Compliance management ................................. 296

Component scrap ........................................ 152, 156

Condition contracts ................................... 289, 291

Condition technique ............................................ 284

Configurable characteristics ............................. 268

Configurable classes ............................................. 268

Configuration simulation .................................. 270

Configure Alternative Control app ................ 266

Configure BOP Segment app ............................ 263

Configure BOP Variant app ............................... 263

Configure Custom BOP Sorting app .............. 264

Configure Order Fulfillment

Responsibilities app ........................................ 265

Configure Product Allocation app .................. 260

Configure Substitution Strategy app ............ 266

Configure Your Solution app ............................ 493

Confirm Receipt of Goods app ......................... 100

Confirm Warehouse Task app .......................... 409

Connected customer ................................. 470, 473

Connected products ............................................. 456

575

Index

Consumer and industrial products

industry ............................................................... 473

Consumption for production .......................... 415

Content lifecycle management (CLM) .......... 495

Continuous inventory ........................................ 378

Contract .................................................................... 252

Contract accounts receivable and

payable ................................................................. 276

Contract compliance ........................................... 123

Contract details ..................................................... 246

Contract Expiry app ............................................. 123

Contract Leakage app .......................................... 123

Contract lifecycle .................................................. 499

Contract management ................................ 41, 114

Contract repository .............................................. 499

Contract template ................................................ 499

Control tower ......................................................... 466

Core Data Services (CDS) ................. 303, 311, 381

Views ........................................ 350, 354, 437, 442

Core Interface Framework (CIF) ... 311, 399, 401

Corrective and preventive actions

(CAPA) ......................................................... 168, 169

Cost distribution ................................................... 349

Counting .................................................................. 404

Country roll-out .................................................... 524

Crate part replenishment .................................. 420

Create Billing Document app ................. 272, 275

Create Maintenance Notification app .......... 215

Create Maintenance Order app ....................... 221

Create Maintenance Plan app .......................... 226

Create Malfunction Report app ...................... 219

Create Measurement Document app ........... 231

Create Multiple Billing Documents app ...... 272

Create Optimal Orders for Shipments app .... 70

Create Outbound Delivery from Sales

Order app ............................................................ 286

Create Physical Inventory Documents

app ............................................................... 378, 379

Create Purchase Order app ............................... 103

Create Purchase Requisition app .................... 100

Create Purchasing Info Record app .................. 98

Create Quality Notification app ...................... 185

Create Sales Order app ........................................ 288

Create Sales Orders app ............................ 253, 254

Create Single Payment app ............................... 277

Create Task List app ............................................. 207

Create Technical Object app .................... 201, 202

Create Warehouse Task app ............................. 409

Create/Change/Display Sales Order app ..... 270

Credit block ............................................................. 255

Credit checks .......................................................... 279

Credit control ......................................................... 278

Credit limit .............................................................. 279

Credit Limit Utilization app ............................. 281

Credit management ............................................ 278

Credit memo .......................................................... 271

Credit memo requests ........................................ 256

Cross-docking ............................................... 397, 454

Custom Fields and Logic app ........................... 302

Customer ........................................................ 240, 312

Customer complaint ........................................... 185

Customer consignment ..................................... 378

Customer record block ....................................... 361

Customer return ................................................... 256

Create ................................................................... 293

Search ................................................................... 293

Customer Return app ......................................... 292

Customer vendor integration (CVI) .............. 240

Customs management ....................................... 297

Cycle counting ....................................................... 378

D

Dangerous goods ............................... 311, 313, 402

Dangerous goods check ..................................... 313

Data Migration Cockpit app ............................. 493

Data model simplification ................................... 39

Data quality ............................................................... 39

Data volume ........................................................... 529

Days Payables Outstanding app ..................... 113

Days sales outstanding (DSO) .......................... 278

Debit memo ............................................................ 271

Decentralized SAP EWM ................. 391, 398, 404

Master data ........................................................ 398

Deconsolidation ................................. 396, 403, 405

Defect ........................................................................ 182

Process ................................................................. 183

Record .......................................................... 182, 183

Delivery and shipping processing ...... 258–260,

262, 265, 285, 317

Schedule ............................................................... 286

Delivery blocks ...................................................... 305

Index

576

Delivery document ..................................... 315, 412

Delivery order ........................................................ 325

Delivery performance ........................................... 76

Delivery times ....................................................... 473

Demand forecasting ............................................ 449

Demand history ....................................................... 72

Demand planning ............................. 469, 503, 508

Demand sensing ................................................... 504

Demand-driven replenishment ........................ 72

Demand-Driven Replenishment Overview

Page app ................................................................. 74

Dependency Diagram tool ................................ 516

Deploy phase .......................................................... 533

Deployment options ....................................... 29, 30

Descriptive analytics ........................................... 429

Descriptive foresight ........................................... 430

Descriptive hindsight ......................................... 430

Descriptive insight ............................................... 430

Design simulations .............................................. 458

Design thinking ..................................................... 512

Detailed scheduling (DS) ............................... 75, 77

Detailed Scheduling Planning Board app ...... 82

Digital core .................................. 391, 447, 471, 472

Digital development ........................................... 469

Digital supply network ....................................... 468

Digital transformation ....................................... 511

Digital transformation roadmap ......... 511, 517,

520, 523

Direct procurement ................................................ 99

Direct shipments .................................................. 337

Discover phase ...................................................... 531

Discrete manufacturing .................................... 138

Display Billing Documents app ...................... 272

Display Billing Split Analysis app .................. 275

Display Complaint – Settlement

Management app ............................................ 295

Display Contract app .................................. 246, 289

Display Credit Data app ..................................... 281

Display Credit Exposure app ........................... 281

Display Customer Balances app ..................... 277

Display Detailed Statement – Condition

Contracts app .................................................... 291

Display Maintenance Item app ....................... 229

Display Maintenance Plan app ....................... 227

Display Master Data Information Center

app ......................................................................... 204

Display Measurement Document app ......... 231

Display MRP Master Data Issues app .............. 69

Display MRP Material Issues app ...................... 69

Display Physical Inventory Progress app .... 378

Display PI Document Items for Materials

app .......................................................................... 378

Display Quality Info Record for

Procurement app ............................................. 187

Display Sales Order app ............................ 254, 288

Display Sample app .............................................. 179

Display Sampling Procedure app .................... 178

Dock appointment scheduling ........................ 396

Documented credit decision ............................ 280

Down payment ...................................................... 250

Dynamic fulfillment .................................. 470, 473

E

e-Commerce ............................................................ 396

Ecosystem ................................................................ 513

Electronic compliance reporting .................... 297

Electronic data interchange

(EDI) ................................................... 321, 461, 483

Embedded analytics ............................ 39, 437, 440

Analytical layer ................................................. 437

Architecture .............................................. 437–439

Benefits ................................................................. 439

Integration .......................................................... 441

Presentation layer ............................................ 438

Embedded EWM ................................ 252, 391, 404

Advanced ................................................... 394, 398

Basic ............................................................. 394, 398

Embedded TM ............................................... 310, 403

Basic shipping license ..................................... 310

Master data ........................................................ 312

Organizational structure .............................. 312

Professional license ......................................... 310

Enhanced request-to-service .............................. 45

Enter and Post PI Count w/o Document

app .......................................................................... 378

Enter Inventory Count app ..................... 378, 379

Enterprise asset management (EAM) ............ 200

Equipment ..................................................... 200, 330

Ethereum .................................................................. 483

Event management .............................................. 343

Exception management ..................................... 506

577

Index

Excess Component Consumption

app ............................................................... 152, 156

Expected goods receipt (EGR) .......................... 405

Expired contract .................................................... 248

Explore phase ......................................................... 532

Export process ....................................................... 296

Extended warehouse management

Business partners ............................................. 399

Dangerous goods ............................................. 402

Hazardous data ................................................ 402

Inbound processing ......................................... 403

Master data ........................................................ 398

Material master ................................................ 400

Outbound processing ..................................... 412

Product master ................................................. 400

External requirement ............................................ 67

Extract, transform, and load (ETL) ................. 529

F

Facilities .................................................................... 200

Factory shop floor ................................................... 51

Fill orders ................................................................. 262

Financial Accounting Standards Board

(FASB) .................................................................... 282

Financial risk ........................................................... 278

Financial supply chain

management ........................................... 271, 278

Find Maintenance Notification app .............. 216

Find Maintenance Order and Operation

app ......................................................................... 235

Find Maintenance Order Confirmation

app ............................................................... 224, 235

Find Task List app ................................................. 235

Find Technical Object app ....................... 205, 235

Finished product ............................................ 52, 164

Forecast ..................................................................... 508

Foreign trade .......................................................... 295

Formula analytics ................................................. 476

Formula and average (F&A) pricing .............. 486

Forward scheduling ............................................. 259

Forwarding agreement quotation ................. 321

Forwarding order ........................................ 317, 325

Freight agreement ................................................ 344

Freight agreement document ......................... 319

Freight booking .................................. 322, 326, 354

Freight Booking Execution app ...................... 326

Freight Booking Quantity-Driven

Operational Business app ............................ 356

Freight charge calculation ................................ 311

Freight charge management and

settlement ................................................. 310, 344

Freight cost ............................................................. 449

Freight order .................................................. 316, 325

Freight Order Execution app ........ 341, 350, 351

Freight order management .............................. 403

Freight Order Quantity-Driven

Operational Business app ............................ 351

Freight service ........................................................ 318

Freight settlement document ......................... 347

Freight tendering ......................................... 339, 353

Freight unit .......................................... 315, 324, 328

Functional silos ..................................................... 468

G

Gain orders .............................................................. 262

Gantt chart ..................................................... 331, 333

Gateway .................................................................... 491

Generally accepted accounting

principles (GAAP) ............................................. 381

Geographic information system (GIS) ......... 336

Global roll-out ........................................................ 523

Global template ..................................................... 523

Go-live ....................................................................... 533

Goods issue (GI) ......................... 164, 358, 376, 416

Goods movement ................................................. 375

Goods movement valuation ............................ 381

Goods receipt (GR) ........ 164, 168, 169, 358, 362,

376, 403

Governance framework ..................................... 519

Greenfield implementation ............................. 526

Grouping business partners ............................ 241

Guided configuration ......................................... 531

H

Handling unit ................................................ 393, 418

Manage ................................................................ 376

Requirements .................................................... 409

Type ....................................................................... 402

Hazardous substances ........................................ 402

Index

578

Heuristics ...................................................... 52, 77, 83

Hyperledger ................................................... 463, 483

I

Implementation approach ...................... 511, 525

Implementation costs ........................................ 527

Implementation risks ......................................... 527

Import processes .................................................. 296

Inbound delivery document ........ 317, 403, 404,

407, 409, 411

Structure .............................................................. 411

Inbound delivery number ................................ 363

Inbound document ............................................. 408

Inbound processing ............................................ 395

From production .............................................. 405

From vendor ...................................................... 404

Incoming Sales Order – Flexible Analysis

app ......................................................................... 300

Incompatibilities .................................................. 338

Incomplete contract ............................................ 247

Incompletion list .................................................. 248

Indirect procurement ......................................... 100

Industry 4.0 ................................... 51, 445, 465, 471

Information cards ................................................ 210

Infrastructure-as-a-service (IaaS) ................... 490

In-memory processing .......................................... 38

Inquiry ...................................................................... 252

Inspection lot ...................................... 164, 170, 173

Change ................................................................. 173

Create ................................................................... 169

Manage ................................................................ 173

Inspection Lot Analytics app .................. 171, 194

Inspection Lot app ............................................... 170

Inspection Lot Detailed Analytics

app ................................................................ 171, 195

Inspection Lot Worklist app ............................. 168

Inspection method .............................................. 171

Inspection Method app ...................................... 171

Inspection operation .......................................... 171

Inspection Operation app ................................. 171

Inspection planning ............................................ 169

Inspection plans ................................................... 171

Inspection point ....................... 166, 175, 176, 178

Record results .................................................... 175

Inspection procedure ......................................... 171

Inspection results ....................................... 165, 174

Record ................................................................... 174

Integration layer .................................................... 439

Intelligent IoT ......................................................... 450

Intelligent purchasing ......................................... 449

Intelligent supply .................................................. 469

Intercompany drop shipment ......................... 480

Internal movements ............................................ 358

Internal problem notification .......................... 185

Internal requirement ............................................. 67

Internal resources ................................................. 513

Internal settlement .............................................. 349

Internal technologies .......................................... 513

Internal warehouse processing ............. 395, 417

Ad hoc movements .......................................... 422

International Accounting Standards

Board (IASB) ........................................................ 282

International trade ............................................... 295

Internet of Things (IoT) ................... 446, 450, 466

IoT sensors ................................................. 466, 478

Trustless IoT ........................................................ 451

Inventory .................................................................. 474

Inventory balance ................................................. 382

Inventory control .................................................. 477

Inventory cost ........................................................ 504

Inventory count ..................................................... 379

Inventory cycle counting ................................... 454

Inventory management .................... 41, 357, 395

Aggregate tables ............................................... 360

Handling unit management ........................ 376

Inventory valuation ........................................ 381

Master data simplification ........................... 359

Material movements ....................................... 362

Optimization ...................................................... 395

Physical inventory management ............... 378

Table MATDOC .................................................. 360

Inventory planning .......................... 469, 484, 505

Inventory Planning Workbench (IPW) ......... 484

Inventory position ................................................. 62

Inventory sampling ............................................. 378

Inventory turnover analysis ............................. 383

Inventory Turnover Analysis app .................. 383

Inventory valuation ................................... 358, 381

Invoice ................................................... 271, 284, 289

Block ...................................................................... 189

Create .................................................................... 112

579

Index

Invoice (Cont.)

Reverse ................................................................. 112

Invoice list ............................................................... 271

Invoice management ......................... 42, 112, 500

Invoice processing ............................................... 112

Item characteristic ............................................... 164

K

Key capabilities requirements matrix ......... 523

Key performance indicators (KPIs) ................ 515

KPI catalog ......................................................... 515

Kitting ..................................................... 393, 397, 420

Kit-to-order ............................................................. 420

Kit-to-stock .............................................................. 420

L

Labor management .................................... 396, 424

Landscape consolidation ................................... 529

Landscape transformation ................................ 528

Legal control ........................................................... 297

Letter of credit ........................................................ 296

Life Cycle Status Analysis tile ................. 351, 354

Life sciences industry .......................................... 479

LIMS ............................................................................ 156

List Contracts app ................................................. 248

List Incomplete Sales Contract app ............... 247

List of Sales Orders app ...................................... 306

Load planning ........................................................ 336

Loading ........................................................... 412, 414

Locations .................................................................. 313

Locking ...................................................................... 361

Logistics Information System (LIS) ................ 361

Logistics service provider (LSP) ............ 312, 317,

318, 321

Lose orders .............................................................. 262

Lot size ............................................................... 52, 130

M

Machine learning ........... 233, 447, 449, 450, 466,

467, 503

Maintain Business Partner app 95, 96, 240, 242

Maintain Contracts app ..................................... 289

Maintenance costs ............................................... 527

Maintenance item ................................................ 229

Display ................................................................. 229

Maintenance management ................................. 44

Maintenance notification .............. 209, 215, 466

Create ................................................................... 215

Find ........................................................................ 216

Maintenance operations ................................... 466

Maintenance Order Confirmations app ...... 224

Maintenance plan ............................. 226, 227, 229

Create .......................................................... 226, 227

Display ................................................................. 227

Schedule ...................................................... 226, 228

Maintenance Plan app ........................................ 226

Maintenance planning ....................................... 210

Maintenance processing .......................... 200, 209

Maintenance Scheduling Board ..................... 213

Maintenance Scheduling Board app ............. 213

Maintenance work order .......................... 221, 224

Change ................................................................. 221

Confirm ................................................................ 224

Create ................................................................... 221

Make-to-order (MTO) ................................. 270, 272

Make-to-stock (MTS) .................................. 270, 272

Malfunction ......................................... 218, 219, 236

Repair ................................................................... 218

Report ................................................................... 218

Manage Billing Document Requests app .... 274

Manage Billing Documents app ............ 272, 275

Manage Buffer Levels app .................................... 72

Manage Business Partner app ......................... 242

Manage Change Requests app ............................ 71

Manage Characteristics app ............................. 268

Manage Classes ...................................................... 268

Manage Configuration Profile app ................ 268

Manage Contract app .......................................... 114

Manage Credit Cases app ................................... 281

Manage Customer Down Payment

Requests app ...................................................... 250

Manage Customer Master app ........................ 243

Manage Customer Returns–Create app ....... 293

Manage Customer Returns–Refund app ..... 293

Manage Info Record app .................................... 114

Manage Inspection Lots app ............................ 173

Manage Maintenance Plan and Item List

app ......................................................................... 229

Manage Malfunction Reports app ................. 236

Index

580

Manage Material Coverage app .................. 62, 66

Manage Notification List app .......................... 216

Manage Order List app ....................................... 223

Manage Outbound Deliveries app ................. 286

Manage Product Allocation Planning Data

app ......................................................................... 261

Manage Product Allocation Sequences

app ......................................................................... 261

Manage Production Operations app ............ 144

Manage Production Orders app ..................... 143

Manage Production/Planned Orders app .... 142

Manage Purchase Contracts app .................... 116

Manage Purchase Requisition app ................ 102

Manage Purchasing Info Records app ............. 98

Manage Quality Levels app .............................. 191

Manage Quality Tasks app ................................ 176

Manage Sales Contract app ........... 245, 246, 250

Manage Sales Orders app ......................... 303, 307

Manage Sales Plans app ..................................... 304

Manage Source List app ..................................... 114

Manage Sources of Supply app ....................... 114

Manage Stock app ................................................ 365

Manage Usage Decision app ............................ 180

Manage Usage Decisions app .......................... 168

Manage Workflow for Purchase Contracts

app ......................................................................... 105

Manage Workflow for Purchase Orders

app ......................................................................... 107

Manage Workflow for Purchase

Requisitions app .............................................. 106

Manage Your Solution app ............................... 492

Manage Your Test Processes app ................... 495

Manufacturing .......................... 127, 158, 358, 469

Manufacturing execution ............................ 153

Manufacturing integration and

intelligence .................................................... 153

Master data simplifications ........................ 128

Production execution .................................... 138

Manufacturing execution systems

(MES) ............................................................ 128, 156

Manufacturing intelligence integration

(MII) ....................................................................... 128

Manufacturing line .............................................. 415

Manufacturing order ................................... 77, 406

Master data ................................................................ 53

Models .................................................................. 514

Master data (Cont.)

Records ................................................................. 253

Master Data Governance app ........................... 244

Master Data Information Center app ............ 205

Master inspection characteristics

(MIC) ............................................................ 169, 171

Material availability check ...................... 209, 220

Schedule ............................................................... 209

Material Configuration Overview app .......... 269

Material document ............................................... 385

Material document list ....................................... 385

Material Document List app ............................. 385

Material flow control ........................................... 396

Material inventory values ................................. 387

Material Inventory Values app ........................ 387

Material Ledger (ML) ............................................ 381

Material master ........... 57, 99, 128, 165, 400, 501

Field length .............................. 99, 129, 165, 360

Material movement ................................... 362, 417

Material numbers ................................................. 360

Material requirements planning (MRP) ........ 51,

57, 98, 472, 475

Classic MRP .................................................... 58, 72

Material Scrap app ................................................ 151

Materials management ............................ 187, 358

Mean absolute percentage error (MAPE) ..... 504

Mean percentage error (MPE) .......................... 504

Measurement document ................................... 230

Create .................................................................... 230

Middleware .............................................................. 500

Migration ........................................................ 529, 532

Design phase input checklist ....................... 520

Mixed reality (MR) ................................................ 452

Mobile device .......................................................... 214

Processing ............................................................ 214

Mobility ..................................................................... 214

Monitor Batches and Payments app ............. 276

Monitor BOP Run app ......................................... 264

Monitor Capacity Utilization app .............. 80, 85

Monitor External Requirements app .............. 67

Monitor Internal Requirements app ............... 67

Monitor Maintenance Request app ............... 218

Monitor Material Coverage app ........................ 61

Monitor Order Progress app ............................. 141

Monitor Production Orders app ....................... 66

Monitor Production/Planned Orders app .... 142

581

Index

Movement type ..................................................... 375

MRP area ...................................................................... 53

MRP cockpit .............................................. 57, 61, 475

MRP Live ........................... 58, 60, 85, 472, 475, 477

MRP stock requirements ...................................... 62

MultiChain .............................................................. 463

Multi-echelon inventory ................................... 505

Multistep dispatching ......................................... 393

Multistep receiving .............................................. 393

My Inbox app ......................................................... 103

My Inbox Maintenance Management

app ......................................................................... 225

My Purchase Requisitions app ........................ 100

My Sales Overview app ....................................... 256

N

Natural language processing (NLP) .............. 446,

455, 466

Near-term forecast ............................................... 504

Negative credit check .......................................... 247

New implementation .......................................... 526

Nonmanaged spend ............................................ 119

Non-Managed Spend app .................................. 119

Notification processing ...................................... 214

Notification type ................................................... 215

O

OData service ................................................ 246, 485

Off-Contract Spend app ...................................... 123

Oil and gas industry ............................................. 484

One-step transfer ........................................ 364, 370

Online analytical processing

(OLAP) ................................................ 427, 440, 471

Online transactional processing

(OLTP) ................................................ 427, 431, 471

On-premise deployment ...................................... 46

Open sales quotations ........................................ 256

Operating model ......................................... 512, 518

Operation Scrap app ............................................ 151

Operational capacity management ............... 322

Operational capacity planning ........................ 318

Operational contract management .............. 116

Operational purchasing ................................. 41, 99

Operational reporting ............................... 428, 431

Optimized order-to-cash ...................................... 44

Optimizer-based planning ................................ 324

Order and contract management ..................... 44

Order and delivery management ......... 289, 315

Order to Cash Management app .................... 434

Order-based integration .................................... 310

Order-based planning ......................................... 310

Order-based replenishment ............................. 420

Order-level data model ...................................... 505

Outbound delivery .............................................. 412

Outbound Delivery app ..................................... 286

Outbound delivery document .............. 317, 412,

413, 415

Outbound delivery order .................................. 412

Outbound delivery request .............................. 412

Outbound packing ............................................... 414

Outbound processing ................................ 395, 412

For customers .................................................... 413

For production .................................................. 415

Output control ....................................................... 284

Output management ....................... 284, 311, 342

Overdue Payables app ........................................ 113

Overdue Purchase Order Items app .............. 121

Overview Page for Planner app ....................... 236

Overview pages ..................................................... 236

P

Package ..................................................................... 325

Unit ........................................................................ 376

Packaging ................................................................. 376

Materials ......................................................... 52, 57

Packing .................................................. 376, 409, 412

Pallet .......................................................................... 376

Parts serialization ................................................. 480

Payment cards ....................................................... 288

Payment service provider (PSP) ............ 254, 288

Peer-to-peer tendering .............................. 339, 353

Pegged requirements .......................................... 142

Period-based data model ................................... 505

Periodic physical inventory ............................. 378

Personal object worklist (POWL) .................... 347

Physical asset tracking ....................................... 449

Physical inventory ............................ 378, 380, 395

Physical Inventory Analysis app ........... 378, 379

Physical inventory document ................ 379, 416

Index

582

Physical inventory document number ....... 379

Physical inventory results ................................ 379

Picking ............................................................. 393, 412

Plan inspection ............................................. 166, 169

Planned order ................................. 52, 77, 135, 141

Planned replenishment ..................................... 420

Planned sales .......................................................... 256

Planning ...................................................................... 52

Planning and scheduling ...................................... 51

Planning priority ..................................................... 73

Planning profile .................................................... 331

Plant ..................................... 103, 149, 200, 358, 370

Plant maintenance ...................................... 199, 466

Maintenance processing ............................... 209


Predictive maintenance ................................ 232

Preventive maintenance ............................... 225

Platform-as-a-service (PaaS) ...................... 47, 490

Portfolio and project management

(PPM) .................................................................... 476

Post goods issue (PGI) ...................... 287, 407, 414

Post Goods Movement app .............................. 375

Post Goods Receipt for Purchase Order

app ................................................................ 362, 363

Posting change ...................................................... 418

Post-processing algorithms ............................. 503

Predictive analytics .......................... 257, 287, 430

Predictive maintenance ......... 200, 232, 450, 471

Prepare phase ......................................................... 531

Prescriptive analytics .......................................... 430

Prevent Delivery Delay app .............................. 287

Preventive maintenance ................ 200, 225, 453

Pricing ....................................................................... 251

Pricing condition .................................................. 251

Principal model ..................................................... 480

Process Complaints – Settlement

Management app ............................................ 294

Process manufacturing ...................................... 138

Process order .......................................... 67, 138, 156

Procurement ................................................. 466, 469

Procurement analytics .......................................... 42

Procurement Overview Page app .................. 117

Product allocation ................................................ 260

Create ................................................................... 260

Display ................................................................. 260

Edit ......................................................................... 260

Product Allocation Overview app .................. 262

Product availability check (PAC) ..................... 259

Product classification .......................................... 296

Product configuration models ........................ 269

Product development ............................... 453, 476

Product master ...................................................... 400

Product master data ............................................. 312

Product Planning Table tool ............................... 87

Product quality monitoring ............................. 168

Product Version Migration for BOM

report .................................................................... 133

Production cost ...................................................... 504

Production engineering ....................................... 43

Production execution ......................................... 138

Production Execution Duration app ............. 156

Production lead time ............................................. 76

Production line ........................................................ 78

Production material request (PMR) ..... 406, 415

Production notification ...................................... 406

Production operations ................................. 43, 144

Production order ..... 67, 138, 141, 156, 166, 169

Change .................................................................. 140

Component withdrawal ................................. 139

Confirm ....................................................... 139, 146

Cost settlement ................................................. 139

Create .......................................................... 138, 140

Display .................................................................. 140

Goods receipt ..................................................... 139

Process .................................................................. 138

Release ........................................................ 139, 140

Status .................................................................... 139

Production Order Confirmation app ............ 146

Production plan ..................................................... 508

Production planning (PP) ............ 43, 75, 77, 169,

189, 449

Production Planning and Detailed Scheduling

(PP/DS) ....... 51, 52, 75, 77, 80, 85, 88, 466, 469

Production Scheduling Board app ................... 84

Production staging area (PSA) ......................... 415

Production throughput ........................................ 77

Production version ................ 52, 57, 69, 132, 135

Assign .................................................................... 135

Progress Management Board ........................... 515

Project control and product development ... 42

Project governance ............................................... 531

Project kick-off ............................................. 524, 531

583

Index

Purchase contract ................................................. 105

Purchase info record (PIR) .......................... 98, 502

Purchase order ................ 105, 253, 315, 317, 325,

362, 363

Collaboration .................................................... 107

Create .................................................................... 103

Process .................................................................. 103

Spend ..................................................................... 119

Purchase order document ................................ 404

Purchase order number ........................... 362, 363

Purchase Order Value app ....................... 119, 122

Purchase requisition .......................... 52, 101, 105

Manage ................................................................ 102

Self-service requisitioning ............................ 100

Purchase Requisition Average Approval

Time app .............................................................. 125

Purchasing ............................................................... 358

Purchasing category ............................................ 108

Purchasing document

Approval .............................................................. 103

Purchasing group ................................................. 103

Purchasing Group Activities (Buyers) app ... 125

Purchasing Group Activities app .................... 125

Putaway .............................. 393, 403, 405, 409, 454

Q

Quality control compliance .............................. 168

Quality Engineer Overview app ... 168, 192, 193

Quality Info Record in Procurement app .... 188

Quality Inspection Engine (QIE) ..................... 407

Quality management ......................... 44, 158, 163

Integration .......................................................... 187


Quality engineering ........................................ 166

Quality improvement ..................................... 182

Quality inspection ..... 164, 169, 403, 449, 454

Quality management information

system (QMIS) ................................................... 166

Quality notification .......................... 167, 182, 185

Create .................................................................... 185

Types ..................................................................... 169

Quality Notifications app .................................. 168

Quality parameter ................................................ 164

Quality policy ......................................................... 167

Quality systems monitoring ............................ 167

Quality task ............................................................. 176

Manage ................................................................ 176

Quality Technician Overview app ................. 193

Quantity contract ................................................. 245

Query designer ...................................................... 437

Quota arrangement ............................... 54, 57, 130

Quotation ....................................................... 252, 258

Open ...................................................................... 256

Quotation conversion rate ............................... 258

Quotation Conversion Rates app ................... 257

R

R&D ............................................................................ 476

Radio frequency (RF) .................................. 393, 462

Rate tables ............................................................... 346

Raw material ............................................. 52, 57, 164

Raw material cost ................................................. 504

Realize phase .......................................................... 532

Real-time analytics ................................................. 38

Rebates ................................................... 251, 288, 289

Recast.AI .......................................................... 456, 457

Receivables processing .......................................... 45

Recipe development ............................................ 476

Record and Process Defects app ............ 168, 183

Record Inspection Results app ............... 168, 174

Record Results for Inspection Points app ... 175

Recurring inspection ........................................... 166

Redistribute orders .............................................. 262

Refunds management ............................... 288, 292

Release for delivery .............................................. 264

Release for Delivery app ........................... 264, 265

Remote function call (RFC) ...................... 399, 402

Repacking ................................................................ 405

Repetitive manufacturing ................................. 138

Replenishment ...................................................... 419

Replenishment Execution by On-Hand

Status app .............................................................. 73

Replenishment planning ..................................... 74

Replenishment Planning by Planning

Priority app ........................................................... 73

Report Quality Notifications app ................... 168

Reporting and analytics ............................ 427, 471

Quality management ..................................... 191

Sales order management .............................. 298

Sourcing and procurement .......................... 116

Index

584

Reporting and analytics (Cont.)

Transportation management ..................... 349

Warehouse management ............................. 423

Reporting layer ...................................................... 439

Request for information (RFI) ......................... 498

Request for proposals (RFP) ............................. 498

Request for quotation (RFQ) ........ 102, 115, 320,

321, 502

Request Maintenance app ................................ 218

Request Physical Inventory Recount app ... 378

Resource management ...................................... 394

Resource Planning Table tool ............................. 86

Resource scheduling ........................................... 210

Resource Scheduling for Maintenance

Planner app ............................................... 210, 211

Response and supply planning ....................... 504

Response management ..................................... 505

Results History app .................................... 169, 197

Return on investment (ROI) ............................. 511

Returns processing ........................... 288, 292, 396

Revenue recognition .................................. 271, 282

Event-based ........................................................ 284

RICEFW ...................................................................... 532

Risk management ................................................ 297

Robotic process automation (RPA) ............... 458

Robotics ........................................................... 457, 466

Role-based performance metrics ................... 430

Root cause analysis .............................................. 167

Route determination .......................................... 403

Route guide engine .............................................. 403

Routing ..................................................... 57, 137, 314

Rule-based heuristic ............................................ 503

Run phase ................................................................ 533

S

Safety stock ............................................................. 505

Safety stock settings ............................................... 52

Sales and operations planning ........................ 503

Sales billing ............................................................. 271

Sales contract ................................................ 245, 247

Change ........................................................ 245, 289

Create .......................................................... 245, 289

Delete .................................................................... 247

Display ................................................................. 245

Sales contract fulfillment rates ....................... 249

Sales Contract Fulfillment Rates app ............ 249

Sales contract management ............................. 245

Sales delivery .......................................................... 272

Sales monitoring ................................................... 255

Sales operations artifacts ................................... 298

Sales order ........ 67, 141, 190, 245, 251, 252, 259,

272, 278, 289, 316, 325

Change .................................................................. 252

Create ................................................ 190, 252, 254

Display ........................................................ 252, 254

Fulfill ...................................................................... 305

Locked ................................................................... 267

Open ............................................................ 256, 300

Prioritize ............................................................... 264

Reference .............................................................. 254

Update .................................................................. 254

With reference .................................................... 253

Without reference ............................................. 253

Sales order conversion ........................................ 257

Sales order document ......................................... 413

Sales Order Fulfillment app .................... 256, 300

Sales Order Fulfillment Issues app ................ 255,

281, 305

Sales order lifecycle .................................... 251, 271

Sales order management ...... 239, 245, 251, 255

Available to promise ....................................... 259

Claims, returns, and refunds

management ................................................. 288

Delivery and shipping processing .............. 285

International trade .......................................... 295

Master data simplification ........................... 240

Output management ...................................... 284

Sales billing ......................................................... 271

Sales contract management ........................ 245

Sales order management and

processing ................................... 251, 252, 271

Variant configuration .................................... 266

Sales Performance – Plan/Actual app .......... 256,

303, 304

Sales Process Analysis ......................................... 255

Sales Volume – Check Open Sales app .......... 300

Sales Volume – Flexible Analysis app ........... 300

Sales Volume – Profit Margin app .................. 301

Sample ....................................................................... 179

Display .................................................................. 179

585

Index

Sampling ........................................................ 178, 416

Procedure ............................................................ 178

Type ....................................................................... 178

Sanctioned party list ........................................... 296

SAP Activate .................................................. 511, 531

SAP Advanced Planning and

Optimization (APO) .............. 75, 259, 484, 502

SAP Analysis for Microsoft Office ........ 437, 440

SAP Analytics Cloud .......................... 438, 441, 496

Story ...................................................................... 441

SAP AR Warehouse Picker ................................. 454

SAP Ariba ........................................................ 496, 497

Integration with SAP S/4HANA .................. 500

SAP Ariba Buying and Invoicing ........... 500, 502

SAP Ariba Contracts ................................... 499, 501

SAP Ariba Sourcing ................. 102, 115, 498, 501

SAP Ariba Spend Analysis .................................. 498

SAP Ariba Supplier Lifecycle and

Performance ............................................ 498, 501

SAP Ariba Supply Chain ..................................... 500

SAP Asset Intelligence Network ...................... 451

SAP Asset Strategy and Performance

Management (ASPM) ..................................... 233

SAP Best Practices ....................................... 492, 530

SAP Billing and Revenue Innovation

Management (BRIM) ....................................... 275

SAP Business Suite .................................................. 34

SAP Business Warehouse (BW) ........................ 435

SAP BusinessObjects ............................................ 435

SAP BW/4HANA ..................................................... 438

SAP C/4HANA ............................................... 457, 473

SAP Cloud Platform ...... 296, 446, 454, 457, 472,

491, 496, 500, 518

SAP Cloud Platform Integration for

data services ....................................................... 508

SAP Concur .............................................................. 496

SAP CoPilot ........................................... 254, 302, 457

SAP Customer Relationship Management

(CRM) ................................................... 95, 240, 289

SAP ERP ..................................................................... 431

SAP Extended Warehouse Management

(EWM) ................................................................... 391

SAP Fiori ........................................... 30, 31, 437, 507

Apps ............................................... 30, 38, 437, 471

Cards .................................................. 117, 192, 193

Tiles ........................................................................ 474

SAP Fiori (Cont.)

User interface .................................................... 432

SAP Fiori launchpad ............................................ 507

SAP Global Batch Traceability (GBT) ............. 480

SAP Global Track and Trace .............................. 483

SAP Global Trade Services (GTS) ............ 296, 482

SAP HANA ....... 29, 31, 38, 58, 427, 466, 475, 503

SAP HANA Enterprise Cloud ........................ 47, 48

SAP HANA smart data integration ................ 509

SAP IBP for demand .......................... 485, 502, 503

SAP IBP for inventory ................................ 502, 505

SAP IBP for response and supply .......... 502, 504

SAP IBP for sales and operations

planning .............................................................. 502

SAP Integrated Business Planning (IBP) ..... 475,

482, 502

Add-on for Excel ............................................... 507

Integration with SAP S/4HANA .................. 508

SAP Jam ..................................................................... 507

SAP Landscape Transformation ..................... 529

SAP Leonardo ......... 232, 445, 446, 451, 457, 463,

472, 483

SAP Leonardo Blockchain service .................. 463

SAP Lumira .............................................................. 438

SAP Manufacturing Execution (ME) .... 153, 483

SAP Manufacturing Integration and

Intelligence (MII) .............................................. 153

Integration ................................................ 154, 155

SAP OEE Management report .......................... 158

SAP Predictive Engineering Insights ............ 455

SAP Predictive Maintenance and

Service (PdMS) ......................................... 232, 455

SAP Process Integration ............................ 155, 311

SAP Process Orchestration ............................... 500

SAP Revenue Accounting and Reporting

(RAR) ..................................................................... 283

SAP S/4HANA .................................................. 29, 427

Additional products ........................................... 35

Architecture .......................................................... 37

Cloud .............................................................. 47, 492

Deployment .......................................................... 46

Digital core .............................................. 30, 31, 35

Embedded analytics ........................ 39, 437, 440

External suite ....................................................... 35

Line of business (LoB) ................................. 35, 40

Index

586

SAP S/4HANA (Cont.)

Master data ........................................................... 53

On-premise ............................................................ 46

Platform .............................................................. 519

Value map ............................................................. 40

SAP S/4HANA Cloud ..................................... 48, 492

Public option ..................................... 48, 492, 493

Single-tenant edition (private

option) ...................................................... 48, 492

SAP Smart Business cockpit .................... 437, 474

SAP Solution Manager ............................... 514, 515

SAP SuccessFactors .............................................. 496

SAP Supplier Relationship Management

(SRM) .............................................................. 95, 240

SAP Supply Chain Control Tower .......... 502, 506

SAP System Landscape Optimization .......... 529

SAP Trade Promotion Management ............. 289

SAP Trader’s and Scheduler’s Workbench ... 484

SAP Watch List Screening .................................. 296

SCADA ....................................................................... 156

Scalability ................................................................ 472

Schedule Billing Creation app ......................... 274

Schedule Billing Output app ................... 276, 284

Schedule Billing Release app ............................ 274

Schedule Delivery app ........................................ 286

Schedule Goods Issue for Deliveries app .... 287

Schedule Maintenance Plan app .................... 228

Schedule Material Availability Check app ... 209

Scheduling ........................................................ 52, 336

Scrap management ..................................... 138, 148

Metrics ................................................................. 149

Scrap Reason app .................................................. 149

Scrapping ................................................................. 416

Selection profile .................................................... 331

Self-service procurement .................................. 477

Self-service requisitioning ................................ 100

Sell from stock ....................................................... 272

Serial number profiles ........................................ 402

Service agreement management ...................... 46

Service entry sheet (SES) .................................... 347

Service level agreement (SLA) ......................... 490

Service management ................................... 45, 456

Service master data management .................... 45

Service order ........................................................... 336

Service parts management .................................. 46

Settlement agreement ....................................... 289

Settlement calendar ............................................. 289

Settlement Calendar for Condition

Contracts app ..................................................... 291

Settlement document ......................................... 347

Settlement management ............... 251, 288, 294

Shared database ..................................................... 459

Shop floor ............................................. 153, 155, 158

Shop floor control ....................................... 138, 146

Shortage quantity ................................................... 61

Simplifications .................................................. 29, 34

Simulate Configuration Models app ... 269, 270

Simulation parameters ....................................... 271

Slotting ............................................................ 395, 421

Smart factories ....................................................... 470

Smart Forms ............................................................ 284

SmartOps .................................................................. 505

Software-as-a-service (SaaS) ....................... 48, 489

Source assignment ............................................... 114

Source determination ........................................... 57

Source evaluation ................................................. 477

Source inspection ....................................... 164, 189

Source list ............................................................ 57, 98

Sourcing and procurement ................. 57, 93, 469

Collaborative sourcing and contract

management ................................................. 114

Invoicing and payables management ..... 112

Master data simplifications ........................... 94

Operational purchasing .................................. 99

Supplier management .................................... 108

Sourcing event ............................................. 115, 116

Sourcing logic ........................................................... 98

Sourcing rule ........................................................... 505

Spare parts control ............................................... 358

Specifications management ............................. 476

Speed of innovation ............................................. 446

Spend analysis ........................................................ 498

Spend control ......................................................... 477

Spend variance ....................................................... 119

Spend Variance app .............................................. 119

Spend visibility ............................................ 117, 119

Sprint execution .................................................... 532

Sprint planning ...................................................... 531

Staging ................................................... 412, 414, 415

Staging layer ............................................................ 439

Statistical forecasting .......................................... 503

Statistical moving average price ..................... 381

587

Index

Stock ........................................................................... 378

Stock availability ................................................... 142

Stock buffer zone ..................................................... 72

Stock change ........................................................... 385

Stock checking ....................................................... 454

Stock comparison ................................................. 424

Stock localizations ................................................ 263

Stock overview ....................................................... 388

Stock quantity ........................................................ 358

Stock removal ........................................................ 414

Stock transfer ...................................... 166, 364, 370

Stock type ....................................................... 363, 393

level ........................................................................ 358

Storage bin ..................................................... 396, 409

Storage location .............. 358, 363, 364, 366, 370

Storage unit ............................................................. 393

Strategic capacity planning .............................. 318

Strategic design direction charts .................... 523

Strategic direction ................................................ 520

Strategic freight procurement ............... 318, 319

Strategic freight selling ...................................... 321

Strategic intent ...................................................... 517

Streamlined procure-to-pay ................................ 41

Subscription ............................................................ 275

Subscription contract ......................................... 249

Supplier classification ......................................... 108

Supplier collaboration ........................................ 477

Supplier evaluation ........................... 110, 117, 477

Supplier Evaluation by Price app ................... 110

Supplier Evaluation by Quantity app ........... 110

Supplier Evaluation by Time app ................... 111

Supplier evaluation scorecard ......................... 111

Supplier Invoices app .......................................... 112

Supplier Invoices List app ................................. 112

Supplier management .............. 42, 108, 449, 498

Supplier performance ......................................... 449

Supplier record block .......................................... 361

Supplier risk .................................................. 449, 498

Supplier segmentation ....................................... 108

Supplier selection ................................................. 477

Supply chain control tower .............................. 456

Supply chain network ............................................ 51

Supply Chain Operational Reference

(SCOR) ................................................................... 506

Supply chain planning .............................. 502, 503

Supply network ..................................................... 505

Supply planning ........................................... 469, 508

Supporting processes .......................................... 518

Synchronized planning ............................. 469, 473

System conversion .............................................. 527

T

Tabular Dashboard tool ..................................... 516

Tactical capacity planning ....................... 318, 321

Tactical reporting ........................................ 428, 431

Target service level .............................................. 505

Target state .............................................................. 523

Task list master data ............................................ 207

Manage ................................................................ 207

Task management ................................................ 394

Technical debt ........................................................ 526

Technical object .................................................... 201

Identify ................................................................. 203

Manage ................................................................ 201

Report ................................................................... 203

Technical Object Breakdown Analysis

app ......................................................................... 206

Template architecture chart ............................ 523

Template blueprint .............................................. 524

Tendering Analysis app ............................ 340, 353

Tendering profile .................................................. 340

Testing ...................................................................... 532

Tolerance limit ...................................................... 164

Track and trace ...................................................... 482

Track Sales Order app .......................................... 307

Track Sales Order Details app ....... 302, 303, 307

Trade lanes .............................................................. 314

Transactional system .......................................... 428

Transfer – Stock Cross-Plant app .................... 370

Transfer orders ............................................. 315, 394

Transfer Stock – Cross-Plant app ........... 370, 372

Transfer Stock – In Plant app .................. 365, 367

Transport order ........................................................ 67

Transportation charge calculation sheet

(TCCS) .................................................................... 345

Transportation charge management ........... 344

Transportation Cockpit .......... 324, 328, 331, 335

Capacity quadrant .......................................... 330

Freight Order Detail quadrant .................... 330

Freight Orders/Freight Bookings

quadrant ......................................................... 328

Index

588

Transportation Cockpit (Cont.)

Freight Unit Stages quadrant ..................... 328

Transportation cost ............................................. 504

Transportation lane ............................................. 313

Transportation management .......................... 309

Capacity management .................................. 318

Carrier selection and subcontracting ...... 337

Freight charge management and

settlement ...................................................... 344

Master data simplification .......................... 311

Transportation monitoring and

execution ............................................... 310, 341

Transportation planning .............................. 324

Transportation requirements ..................... 315

Transportation mode ......................................... 318

Transportation network .................................... 313

Transportation planning ................ 310, 324, 325

Automated planning ...................................... 333

Manual planning ............................................. 332

Transportation requirements ................ 309, 315

Transportation resource .................................... 315

Transportation schedule ................................... 314

Transportation unit ............................................. 327

Handling ............................................................. 396

Resources ............................................................ 315

Transportation zone ........................................... 313

Transshipment location .................................... 313

Two-step transfers ............................ 364, 367, 370

U

Unique device identifiers (UDI) ...................... 479

Unloading ................................................................ 404

Unpacking ............................................................... 376

Unplanned goods issues .................................... 416

Unplanned returns .............................................. 396

Unsourced demand ............................................. 115

Usage decision .............................................. 165, 180

Manage ................................................................ 180

User experience (UX) ................................... 30, 507

V

Valuation mode .................................................... 178

Value contract ........................................................ 245

Value drivers ............................................................. 30

Value map .................................................................. 29

Value proposition ................................................. 519

Value-added services ........................................... 397

Variable cost elements ........................................ 504

Variant configuration ................................ 266, 272

Advanced ................................................... 267, 270

Classic ......................................................... 267, 270

LO-VC ..................................................................... 267

Variant Configuration Modeling

Environment app ................................... 269, 271

Variant Configuration Overview app ... 267, 268

Vehicle resource .......................................... 315, 330

Vehicle Scheduling and Routing (VSR)

optimizer ............................................................. 334

Vendor ............................................................. 240, 312

Vendor complaint ................................................. 185

Vendor consignment ........................................... 378

Vendor evaluation ................................................ 182

Vendor master .......................................................... 95

Virtual data model (VDM) ................ 39, 437, 440

Virtual reality (VR) ................................................ 452

Visualize and Support Buffer Positioning in

Demand-Driven Replenishment app ......... 74

W

Warehouse billing ................................................. 397

Warehouse Cockpit .............................................. 424

Warehouse execution ......................................... 397

Warehouse management .............. 327, 391, 392

Inbound processing ............................... 395, 403

Internal warehouse processing ................... 417

Master data simplifications ......................... 398

Outbound processing ........................... 395, 412

Warehouse Monitor ............................................. 423

Warehouse task ............................................ 394, 409

Create .................................................................... 409

Wave management .................................... 396, 413

Waybill ....................................................................... 342

Weighings ................................................................. 414

Win orders ................................................................ 262

Work center ......................................... 135, 149, 210

Scheduling ........................................................... 136

Work Center app .................................................... 136

Work in process (WIP) .................................. 57, 153

Work order ........................................... 169, 209, 217

589

Index

Work order list ....................................................... 223

Manage ................................................................ 223

Work scheduling ................................................... 397

Workforce collaboration .................................... 453

Work-in-process (WIP) ........................................... 52

Y

Yard management ............................................... 396

First-hand knowledge.

Deb Bhattacharjee, Vadhi Narasimhamurti, Chaitanaya Desai, Guillermo B. Vazquez, Tom Walsh

Logistics with SAP S/4HANA: An Introduction589 Pages, 2019, $79.95 ISBN 978-1-4932-1781-6

www.sap-press.com/4785

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 usage and exploitation rights are reserved by the author and the publisher.

Deloitte principal and partner Deb Bhattacharjee is a thought leader in supply chain strategy, supply chain plan-ning, and inventory planning and management. He has published papers on supply chain segmentation, inventory management, and transportation.

Guillermo B. Vazquez is a senior technology executive, lea-ding multimillion-dollar SAP global programs with Fortune 500 companies. He has been implementing supply chain ma-nagement solutions for more than twenty years. Guillermo led the fourth live SAP HANA implementation in the world.

Vadhi Narasimhamurti is a principal in Deloitte’s SAP consulting practice. He helps consumer products companies reduce their operating costs and improve their supply chain efficiencies through SAP-enabled business transformations. Vadhi has over 18 years of SAP and supply chain experience;

during this time, he has helped design and implement SAP solutions, including SAP S/4HANA, SAP IBP, SAP EWM, SAP MII, and SAP TM.

Tom Walsh brings over 18 years of consulting experience in industrial and automotive industries. For the past decade, Tom has served on the board of National Association of Ma-nufacturers with the Manufacturing Institute.

Chaitanaya Desai is a senior technology leader on the fore-front of developing supply chain solutions on SAP S/4HANA. He has deep expertise in implementing complex transforma-tions in areas of supply chain management and order-to-cash for medium- and large-scale clients. His clients include some

of the top companies in A&D, C&IP, telecommunications, and the high-tech industries.

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