Table of Contents

Dear Reader

Notes on Usage

Table of Contents

Preface

Foreword

Introduction

1   SAP S/4HANA for the Supply Chain

1.1   Architecture and SAP S/4HANA

1.1.1   In-Memory Processing and Performance Improvements

1.1.2   Real-Time Analytics

1.1.3   Improved Data Quality

1.2   SAP S/4HANA Enterprise Management

1.2.1   Streamlined Procure-to-Pay

1.2.2   Accelerated Plan-to-Product

1.2.3   Optimized Order-to-Cash

1.2.4   Enhanced Request-to-Service

1.3   Deployment Options

1.3.1   On-Premise

1.3.2   Cloud

1.4   Summary

2   Inventory Management

2.1   Inventory Management Basics

2.2   SAP S/4HANA Changes

2.2.1   Transaction Code Changes

2.2.2   Configuration Changes

2.2.3   SAP Fiori Applications

2.2.4   SAP Catch Weight Management

2.2.5   Master Data Simplifications—Material Master

2.3   Warehouse Processing

2.3.1   Post Goods Receipt to Purchase Order

2.3.2   Transfer Stock in Plant

2.3.3   Transfer Stock Cross Plant

2.3.4   Post Goods Movements

2.3.5   Output Material Documents

2.3.6   Transaction MIGO and Transaction Obsolescence

2.4   Physical Inventory Management

2.4.1   ABC Analysis for Cycle Counting

2.4.2   Creating Physical Inventory Documents

2.4.3   Display Physical Inventory Documents per Material

2.4.4   Process Physical Inventory Count Results

2.4.5   Request Physical Inventory Recount

2.5   Valuation

2.5.1   Multiple Currencies

2.5.2   Locking Optimization

2.6   Data Model Simplification

2.7   Reporting on Inventory

2.7.1   Inventory Turnover Analysis

2.7.2   Material Documents Overview

2.7.3   Material Document List

2.7.4   Material Inventory Values

2.7.5   Stock Overviews

2.8   Summary

3   Manufacturing

3.1   Manufacturing Basics

3.2   Master Data Simplifications

3.2.1   Material Master

3.2.2   Bill of Materials and Production Version

3.2.3   Work Centers

3.2.4   Removed and Interim Solution Manufacturing Functionality

3.3   Material Requirements Planning

3.3.1   Performance Improvements

3.3.2   Simplified Sourcing

3.3.3   Material Requirements Planning Cockpit

3.3.4   Management of Change Requests

3.3.5   Integrated Production Planning and Demand Scheduling

3.3.6   Demand-Driven Replenishment

3.4   Production Execution

3.4.1   Shop Floor Control

3.4.2   Scrap Management

3.5   Reporting in Manufacturing

3.5.1   SAP Overall Equipment Effectiveness Management

3.5.2   Demand-Driven Material Requirements Planning

3.6   Summary

4   SAP Extended Warehouse Management

4.1   Traditional Warehouse Management in SAP S/4HANA

4.1.1   Inbound Processing in SAP S/4HANA Warehouse Management

4.1.2   Outbound Processing in SAP S/4HANA Warehouse Management

4.1.3   Internal Processing in SAP S/4HANA Warehouse Management

4.2   SAP Extended Warehouse Management Basics

4.2.1   SAP Extended Warehouse Management Deployment Options

4.2.2   Basic Warehouse Management

4.2.3   Advanced Warehouse Management

4.3   Master Data Simplifications

4.3.1   Business Partners in Extended Warehouse Management

4.3.2   Material Master in Extended Warehouse Management

4.3.3   Batch Master in Extended Warehouse Management

4.3.4   Product Data Valuation in Extended Warehouse Management

4.3.5   Dangerous Goods and Hazardous Data

4.3.6   Elimination of Redundant Tables

4.4   Delivery Processing in Extended Warehouse Management

4.4.1   Inbound Processing

4.4.2   Outbound Processing

4.5   Summary

5   Sourcing and Procurement

5.1   Sourcing and Procurement Basics

5.2   Master Data Simplifications

5.2.1   Business Partner Concept in SAP S/4HANA

5.2.2   Sourcing Logic in SAP S/4HANA

5.2.3   Material Master Field Length

5.2.4   Business Partner

5.3   Materials Requirements Planning

5.3.1   Material Shortage Situation in SAP S/4HANA

5.3.2   Manage Change Requests Application

5.4   Operational Purchasing

5.4.1   Self-Service Requisitions

5.4.2   Managing Purchase Requisitions

5.4.3   Purchase Order Processing

5.4.4   Purchasing Document Approval

5.4.5   Purchase Order Collaboration

5.5   Collaborative Sourcing and Contract Management

5.5.1   Source Assignment

5.5.2   Operational Contract Management

5.6   Supplier Management

5.6.1   Classification and Segmentation

5.6.2   Supplier Evaluation

5.7   Invoicing and Payables Management

5.7.1   Invoice Processing

5.7.2   Invoice Collaboration

5.7.3   Accounts Payable

5.8   SAP Ariba

5.8.1   Ariba Network

5.8.2   SAP Ariba Strategic Sourcing (Upstream)

5.8.3   SAP Ariba Procurement Content (Downstream)

5.8.4   SAP S/4HANA Native Integration with Ariba Network

5.9   Procurement Analytics

5.9.1   Spend Visibility

5.9.2   Procurement Overview Page

5.9.3   Real-Time Reporting and Monitoring

5.10   Summary

6   Sales Order Management

6.1   Sales Order Management Basics

6.2   Master Data Simplification

6.2.1   Business Partner Concept in SAP S/4HANA

6.2.2   Business Partner Grouping

6.2.3   Business Partner Role

6.2.4   SAP ERP System Upgrade to SAP S/4HANA

6.3   Sales Contract Management

6.3.1   SAP ERP System Upgrade to SAP S/4HANA

6.3.2   Subscription Contract Management

6.4   Sales Order Management and Processing

6.4.1   Sales Order Processing

6.4.2   Sales Monitoring

6.4.3   Delivery and Shipping Processing

6.4.4   Integration with Warehouse Processing

6.5   Billing and Invoicing

6.5.1   Billing and Invoicing of Goods and Services

6.5.2   Subscription Billing and Invoicing

6.5.3   Contract Accounts Receivable and Payable

6.5.4   SAP Credit Management

6.5.5   Revenue Recognition

6.5.6   Advanced Order Processing and Billing

6.6   Output Management

6.6.1   SAP ERP System Upgrade to SAP S/4HANA

6.7   Claims, Returns, and Refund Management

6.7.1   Rebates Process

6.7.2   Settlement Management

6.7.3   Complaint Management

6.8   Foreign Trade

6.8.1   SAP Global Trade Services

6.8.2   Conversion Process

6.9   SAP Hybris

6.9.1   SAP Hybris Architecture

6.9.2   SAP Hybris Sales Cloud

6.9.3   SAP Hybris Billing

6.9.4   SAP Hybris Marketing Cloud

6.10   SAP Transportation Management

6.10.1   Transportation Management Principles

6.10.2   SAP S/4HANA Supply Chain for Transportation Management

6.10.3   Embedded SAP Transportation Management Functionality

6.10.4   Transportation Management Product Road Map

6.11   Data Model Simplification

6.11.1   Sales and Distribution Pricing

6.11.2   Sales and Distribution Data Flow

6.11.3   Simplification of Redundancies

6.12   Reporting Sales Order Management

6.12.1   SAP Fiori Artifacts in Sales Operations

6.12.2   Sales Analytics

6.13   Summary

7   Quality Management

7.1   Quality Management Basics

7.2   Quality Inspection

7.3   Quality Notification

7.4   Quality Planning

7.4.1   Master Data

7.4.2   Inspection Methods

7.4.3   Master Inspection Characteristics

7.4.4   Qualitative Master Inspection Characteristics

7.4.5   Catalog

7.4.6   Code Group

7.4.7   Selected Sets

7.4.8   Sampling Scheme

7.4.9   Sampling Procedure

7.5   Material Master Quality Management View

7.5.1   Inspection Plan

7.5.2   Inspection Plan Header

7.5.3   Material Task List Assignments

7.5.4   Inspection Operation

7.5.5   Quality Info Records—Procurement

7.5.6   Quality Info Records—Sales and Distribution

7.6   Quality Inspections

7.6.1   Inspection Lot Creation

7.6.2   Create Inspection Lot Manually

7.6.3   Resetting the Inspection Lot

7.6.4   Results Recording/Defect Recording

7.7   Quality Notifications

7.8   Quality Management Reports

7.8.1   Inspection Lot Selection

7.8.2   SAP Fiori Applications

7.8.3   Quality Management Notifications

7.8.4   Material Analysis

7.9   Summary

8   Plant Maintenance and Enterprise Asset Management

8.1   SAP ERP Plant Maintenance and Enterprise Asset Management Basics

8.2   Master Data Simplifications

8.2.1   Management of Technical Objects

8.2.2   Managing Enterprise Asset Management Technical Objects with SAP Fiori Apps

8.2.3   Reporting and Identifying Technical Objects

8.2.4   Plant Maintenance and Enterprise Asset Management Task List Master Data

8.3   Maintenance Processing

8.3.1   Mobile Device Processing

8.3.2   Maintenance Work Orders

8.4   Preventative Maintenance

8.4.1   Scheduling of Maintenance Plans

8.4.2   Maintenance Plans with Item Lists

8.5   Summary

9   Reporting and Analytics

9.1   Business Intelligence Maturity Level

9.1.1   What Is the Business Intelligence Maturity Level?

9.1.2   Descriptive Analytics

9.1.3   Predictive Analytics

9.1.4   Tactical Reporting

9.1.5   SAP S/4HANA Embedded Analytics and SAP Fiori

9.1.6   SAP S/4HANA Embedded Analytics Architecture

9.1.7   SAP Fiori App Example

9.2   Integration with SAP BusinessObjects Business Intelligence

9.2.1   SAP BusinessObjects Analysis for Microsoft Office

9.2.2   Connecting with SAP S/4HANA Using SAP BusinessObjects Analysis for Microsoft Office

9.2.3   Integration of SAP S/4HANA Analytics and SAP Lumira

9.3   SAP S/4HANA and SAP Leonardo

9.3.1   Machine Learning

9.3.2   Supervised Learning

9.3.3   Unsupervised Learning

9.3.4   SAP Leonardo Integration

9.3.5   SAP Leonardo Architecture

9.3.6   Integrating a Big Data Platform and SAP S/4HANA

9.4   Summary

10   Migration to SAP S/4HANA

10.1   Migration Strategy

10.1.1   Migration Strategy Challenges

10.1.2   Defining Your Road Map

10.1.3   The Road Map Design Phase

10.1.4   Road Map Design Phase Input Checklist

10.2   Evaluate Architectures and System Conversion

10.2.1   SAP S/4HANA Migration Paths

10.2.2   Integration of SAP S/4HANA to Cloud Solutions

10.2.3   SAP S/4HANA Integration Capabilities

10.3   Technical Conversion

10.3.1   Technical Considerations

10.3.2   The Technical Conversion Preparation Phase

10.3.3   Risks and Lessons Learned

10.4   Conversion Tools

10.4.1   Maintenance Planner

10.4.2   Custom Code Migration Worklist

10.4.3   SAP HANA Sizing

10.4.4   Technical Conversion Realization

10.5   Functional Conversion

10.5.1   Preparation

10.5.2   Synchronization

10.5.3   Post Activities

10.6   Summary

A   SAP Fiori Applications

A.1   Inventory Management

A.2   Manufacturing

A.3   Extended Warehouse Management

A.4   Sourcing and Procurement

A.5   Sales Order Management

A.6   Quality Management

A.7   Plant Maintenance

A.8   Transportation Management

B   The Authors

Index

Service Pages

Legal Notes