Introduction to HANA

INTRODUCTION TO HANA

INTRODUCTION TO SAP HANA

HANA is High Performance analytic appliance.
HANA is the underlying in-memory database to power the applications, and S/4 is the
latest package of these applications, in replacement of the traditional ECC in favor for a
cloud-based IT environment.
We already know that HANA is an –
1.In Memory Database
2. Column Oriented database.
3. Massive Parallel processing of data.
The high performance of the database is because RAM is much faster than the disk.
Column oriented database scans only the required columns and skips the unwanted
columns. In one way it takes the shortcut to scan the data.
Massive parallel processing the more the resources the less time it takes to process the
data and hence high performance.
SAP HANA is the underlying platform on which SAP S/4 HANA is built.
OVERVIEW OF S4 HANA
OVERVIEW OF S4 HANA

OVERVIEW OF S/4 HANA

S/4 HANA not only creates unique opportunities to run your day to day business but also to reinvent and re-
imagine business models.
Reinvent and re-imagine the business processes and business decisions.
Re imagined business models-
Connecting to people through devices, business networks like mobile apps, product verifications through bar
codes etc.
Re imagined business Decisions-
Simplicity to get any insight on any data from anywhere.
OVERVIEW OF S4 HANA
OVERVIEW OF S4 HANA

OVERVIEW OF S/4 HANA

From an IT business prospective SAP S/4 HANA simplifies the landscape and can reduce the total cost of
ownership.
Enterprises can reduce their data foot print, which saves the hardware cost and operational cost.
OVERVIEW OF S4 HANA
OVERVIEW OF S4 HANA
OVERVIEW OF S4 HANA

WHAT IS A SIMPLIFIED DATA MODEL

Traditional applications were built on ever increasing complex data models with huge numbers of individual
database tables for huge amount of data which were necessary to provide the data at all levels for the details required for
the business users. So there were tables for the line level, tables to store the totals and aggregates.
OVERVIEW OF S4 HANA

Now with S/4 HANA we need less tables to get the same job done. We can reduce the data foot print.
Summary – The Value Levers Are Huge

S/4HANA Enablement Business Outcome

§ Reduced footprint x10 § Complexity reduction
HANA § Increased throughput x 7 § TCO reduction
Data Models § Analytics speed > x1000 § Service quality increase

§ Efficient access to information § Margin protection

Productivity § Proactive issue notification § Service quality increase
Predictability § Pre-evaluation of solution alternatives § User productivity
Exception driven § Simulation before application of solution § Higher asset utilization
Signal to action
User Experience and Decisions
Frequency § Significantly higher process frequency § Inventory cost reduction
Granularity § Real-time inventory updates § Service quality increase
De-layer processes § Lot size 1 handling capability § Revenue growth
Raise process intelligence § Participate in Industry 4.0 § Business Agility
Business Processes Effectiveness
Connectivity
S/4 Organizational agility § Leverage Internet of Things § Stock price appreciation
HANA
Granular data processing capability § Products become services § Market share growth
Subscription economy § No ownership of things § Customer success/loyalty
Business Models
Organizational Agility
Business Value
SAP S/4HANA – Next-generation Business Suite

S/4HANA is a new product line; new code base

• Innovative HANA Database
• New architecture and data models
• New UI technology – SAP Fiori
• Different deployment models
• Cloud edition
• On-premise edition
SAP S/4HANA
Next-generation Business Suite
 What does a project look like?

Existing Landscape Retire Non-HANA Landscape

Development QA Production
SAP ERP SAP ERP SAP ERP

1 2 3 4 5

To-Be S4/HANA
Landscape S/4HANA S/4HANA
Development
S/4HANA S4/HANA
S/4HANA
Sandbox QA Dry
Production
Run

Step 1: Step 2: Step 3: Step 4:

5: Practice
Perform
Upgrade/Migrate Upgrade/Migrate Dev Upgrade/Migrate QA to Production Cutover in
production copy to a to S/4HANA S/4HANA QA – Perform Dry Run – Execute
S/4HANA Sandbox Development User Acceptance Tests Performance Tuning
Why compatibility Pack ?
INTRODUCTION TO S4 HANA
Agenda for FICO
Introduction to ECC 6.EHPx
Introduction to HANA
Provide an overview of S/4 HANA
Explain the benefits of S/4 HANA.
Introduction To Simple Finance-Universal Journal
Agenda for SD
Introduction
Module Integration
Sales and distribution Cycle
SAP S/4 Hana Fiori Launch Pads for sales cycle
Agenda for SD
Data migration option.
Classical SAP Vs SAP S/4 HANA
INTRODUCTION TO ECC 6.EHPx

There are number of changes in SAP functionality in ECC6.0 in comparison to SAP R/3 Enterprise (4.7). We
have tried to snap only the major changes relevant for the FI/CO. This will give an idea about how ECC6.0 has
been well developed and designed incorporating all the features of R/3 Enterprise. The major changes
relevant for FI/CO are appended below:

In my ECC 6.0 we can implement new General Ledger Accounting in place of classic General Ledger
Accounting. To implement new General Ledger Accounting , it has to be activated in IMG activity. After
activation of it , a new menu for financial accounting appears in SAP Reference IMG. Under Financial
Accounting (New) and General Ledger (New) , Customizing setting can be found for configuring new General
Ledger Accounting. It contains all the functions delivered with classic General Ledger Accounting.

In addition to existing functions, new General Ledger Accounting has the following other features :
INTRODUCTION TO ECC 6.EHPx

q The new General Ledger accounting allows us to perform parallel accounting. We can render multiple
ledgers in parallel. It means we can have data posted to all ledgers, to a specified selection of ledgers, or
to a single ledger.
q The new General Accounting fulfills the requirement of both legal as well as management reporting.
For the purpose of management reporting, the range of functions delivered with profit center
accounting is integrated into new General Ledger Accounting ( except transfer pricing).
q The new General ledger Accounting contains the new Segment dimensions. It means we can generate
the segment reports required for IAS and/or US GAAP.
q Document splitting procedure can be used to split up line items for selected dimensions ( such as
receivable by Business area) or to effect a zero balance setting in the document for selected dimensions
(such as segment). For this purpose, additional clearing lines are generated when a document is entered.
This procedure ensure to draw up complete financial statements for the selected dimensions at any
time.
q Real-Time Integration with CO: The allocations that are relevant for General Ledger Accounting can be
transferred from Controlling to General Ledger Accounting in real time. In this way there is no need to
keep reconciliation ledger. General Ledger Accounting is then constantly reconciled with Controlling.
INTRODUCTION TO ECC 6.EHPx

Legal and
Management Std Enhancement
Segment reporting & Extensibility
reporting
(With custom fields)

Real – Time Financial reporting

Features of using any
Integration
CO => FI New GL characteristic
(Document splitting)

Simple
Transparency and Accelerated Representation
Consistency Period End Closing of Parallel
accounting
New General Ledger Accounting: One Component –Lots of Functions

General Ledger in R/3 Enterprise 4.7 General Ledger in ECC 6.0

Classic GL COS
Legal Ledger

er
requirements

dg
Le
EC - PCA
Management and

g l
tin r a
segment reporting

un ne
co G e
Special Ledger
Multi-dimensional,

Ac ew
customer-defined

N
Reconciliation
Ledger
New General Ledger Accounting: One Component –Lots of Functions

General Ledger in R/3 Enterprise 4.7 General Ledger in ECC 6.0

Classic GL COS
Legal Ledger
General Ledger supports
requirements
qLegal requirements
EC - PCA qMgmt. and Segment reporting
Management and qExtensibility by industries
segment reporting qExtensibility by customers
qBalanced books for any dimension
Special Ledger qParallel sets of books
Multi-dimensional, qFast close
customer-defined qIntl. accounting standards
qCompliance & transparency
Reconciliation
Ledger
Key features of the new G/L

Parallel Valuation
qLedger approach (ledger groups)
qNew transactions to post in
particular ledgers
qNew financial statement reports

FAGLFLEXT
qAdditional Fields Improved Integration
Segment, PC, FA ,Cost qReal-time CO/FI Interface
New qAsset Accounting (incl. AuC)
Center, etc.
qCustomer Fields G/L qInventory Management
qConsolidation
WBS element, Order

Document Splitting
q Set of splitting methods and rules
q Online split of follow up costs
q Zero-Balancing functionality
Totals Table FAGLFLEXT New General Ledger in ECC 6.0
One look at the database table makes the primary standard extension of the data structure visible immediately:

New General Ledger

Classic Ledger Total table FAGLFLEXT
Total table GLTO Selection of Available Fields:
Selection of Available Fields:
Field Short text
Field Short text … …
… … RYEAR … Fiscal Year
BUKRS … Company Code RACCT … Account Number
RYEAR … Fiscal Year COST_ELEM … Cost Element
BUKRS Company Code
RACCT … Account Number
RBUSA … Business Area RCNTR … Cost Center

… … PRCTR … Profit Center

… … RFAREA … Functional Area

… … RBUSA … Business Area

… … SEGMENT … Segment
… …
Benefits of New General Ledger Accounting –Overview
New General Ledger Accounting in ECC 6.0 has the following
advantages compared to classic General Ledger Accounting (such as in
R/3 Enterprise):
New General Ledger Accounting has an extended data structure in the standard delivery. Customer fields can
also be added to the general ledger.
With (real-time) document splitting, balance sheets can be created for entities , such as "Segment".
You can run a real-time reconciliation of Management Accounting (CO) and
Financial Accounting (FI) - there is the real-time integration with Controlling.
This renders time-consuming reconciliation tasks obsolete!
New General Ledger Accounting makes it possible to manage multiple ledgers within General Ledger
Accounting. This is one of the possible ways of portraying parallel accounting in the SAP system.
Ledger Definition

Leading Ledger

qIn New G/L, there is One leading ledger for each client that is valid
for all company codes. An important decision to make is which
Accounting Standard to use in the leading ledger.
qThis assignment cannot be deactivated once it has been defined.
qYou can define only one ledger as the leading ledger .
qSAP provides the leading ledger 0L as standard.

The IAS ledger in client 800 as an example

of a leading ledger for company codes 1000, 2000, 3000, and 4000.

Client Leading Ledger

100 IAS

Company Company
Company Code 3000
Code 1000
Code 2000
Integration with Sub modules

Client CO
100
FI

MM AP AR SD
Leading
Ledger IAS

BL AA
FAGLFLEXT - Single Source of Information in New General Ledger

Business Requirement FAGLFLEXT

Parallel
Ledger Group
Accounting

Cost of Sales
Functional Area
Accounting

Segment
Balance
Reporting Profit Center

Business Area

Consolidation Trading Partner

Scenarios – Definition and Assignment
What is scenario definition?
A scenario defines which fields are updated in the ledgers (in the general
ledger view) during a posting (from other application components).
Scenarios – Definition and Assignment
Entry view and General Ledger view

When New General Ledger Accounting is active, a financial accounting

document always has two views: Aside from the Leading Ledger you may
also see the document in other, Non leading Ledgers with in General
Ledger View.

q Entry view –
It is a view of how a document also appears in the sub-ledger views
/ sub-ledgers (AR/AP/AA/Taxes)

q General Ledger view –

It is a view of how a document appears (only) in the general ledger.
Entry view (Scenarios – Assignment and Functions I)
Modeled situation: Entry view of an FI document (=> the view when posting the
document), without assignment of scenarios to a ledger.
General Ledger view (Scenarios – Assignment and Functions II)
Modeled situation: General ledger view of an FI document, without
assignment of scenarios to the leading ledger 0L!
General Ledger view (Scenarios – Assignment and Functions III)
Modeled situation: General ledger view of an FI document, with previous assignment of
scenarios “Business area" and "Cost Center Update" to the leading ledger.
 Entry view and General Ledger view

Account Balances Financial Statement

S_PLO_86000028 (a/a) (new)
FGI3 (own reports)

GL Vender Customer Asset

FK10N
AW01N (Individual) Drill-Down
S_PLO_86000030 FD10N S_ALR_87011963
FAGLB03 (new)

S_ALR_87011970

Line Item Display

GL Vender Customer Asset

FAGLL03 (new) FBL1N FBL5N AB03

FBL3N FB03 FB03
FB03
Document Splitting — Overview

Let’s look at the purchases more closely — the Profit Center

ratios for purchases. The total purchases were in the ratio of 80%-20%

80%
PC – 1

Total
PC – 2
20%

80% 80% PC – 1
PC – 1
$8800 $800
Vendor A/C Input Tax
$11,000 $1,000
PC – 2
PC – 2
$200
$2200
20%
20%
Document Splitting — Overview
Alternative ways to post Vendor Invoice
Document 2 – Balanced for Profit
Comparison of Vendor Invoice Documents
Center
Both documents are financially balanced — total net zero
Account Amoun Profit
Document #1 is not balanced for Profit Center
Description t Center
Document #2 is balanced for Profit Center
Vendor A/C -8,800 PC-1
Document 1 – Not Balanced for Profit Purchases 1 8,000 PC-1
Center Input Tax 800 PC-1
Account Description Amount Profit
Account Amoun Profit
Center
Description t Center
Vendor A/C -11,000
Vendor A/C -2,200 PC-2
Purchases 1 8,000 PC-1
Purchases 2 2,000 PC-2
Purchases 2 2,000 PC-2
Input Tax 200 PC-2
Input Tax 1,000

qDocument splitting in the new G/L

q New G/L offers AUTOMATIC document splitting
q Instead of analysts manually splitting the accounting items,
qsystem automatically splits the document
qYou can configure the rules for document splitting
Document Splitting – Active Split
Modeled business transaction:
Vendor invoice with multiple expense line items and different account assignments
(with input tax of 10%)
Entry view:

General ledger view / Ledger 0L:

Real-Time Integration CO -> FI – Example Figures
UNIVERSAL JOURNAL
INTRODUCTION TO SIMPLE FINANCE –UNIVERSAL JOURNAL

Universal Journal which reflects the concept that all of the data is unified within a
single source-of-truth.
It is the single source of truth for all accounting components.
Reconciliation is a topic of the past.
A simple but holistic model – HANA can be leveraged in the best possible manner
bringing unprecedented insight in both the speed and the content.
The universal journal combines and harmonizes the good qualities of all the
accounting components.
Non disruptive innovation and simplification.
INTRODUCTION TO SIMPLE FINANCE –UNIVERSAL JOURNAL

•TRADITIONAL ARCHITECTURE – MULTIPLE DATA SOURCES

Balance Sheet P/L

Material
CO
Ledger Rec on
o n c il c il i at i
i at i o on
n Rec

GL
Rec
ti on o n c il
c ilia i at i o
Re co n n
Asset A/c CO-PA
INTRODUCTION TO SIMPLE FINANCE- UNIVERSAL JOURNAL

The traditional architecture has a number of challenges –

The combined content of several tables represents the truth which is based on multiple sources.
Reconciliation was by design.
Need to duplicate data to the appropriate table for reporting.
Components are structured differently in terms of the fields and the entities.
Multiple BW extractors are needed to cover the complete information in BW.
Traditional non-SAP HANA reporting performed via Business Warehouse tools involve the
movement of data from ERP system to BW. When creating detailed management accounting reports
within SAP BW, there are various data sources and layers of data that need to be transformed to
provide the data the end user requires.
If a job or process within SAP BW failed, the figures within the SAP BW reports would be wrong. This
would lead to additional support work to track the offending item, and then the schedules would
need to be re-run to ensure the values were correct.
INTRODUCTION TO SIMPLE FINANCE- UNIVERSAL JOURNAL

Report preparation
All of these tasks will be removed by the simplified data model within the Universal Journal and
it is worth noting that within SAP S/4HANA you have the ability to run most Financial Analysis
reporting direct from SAP S/4HANA.
The simplified data model within SAP Universal Journal provides a single source of data that has
all of the required data in a single view which reduces the complexity in the report design
INTRODUCTION TO SIMPLE FINANCE- UNIVERSAL JOURNAL

CORE BENEFITS OF UNIVERSAL JOURNAL-

Month-end tasks
SAP Universal Journal allows the Finance team to re-design the month-end
process and break away from performing all of the tasks within a short window.
INTRODUCTION TO SIMPLE FINANCE- UNIVERSAL JOURNAL

CORE BENEFITS OF UNIVERSAL JOURNAL-

Data reconciliations
Data reconciliations normally done during the month. It is time consuming
process and are normally performed to mitigate risk rather than add insight or
challenge into the Financial performance of a Company.
INTRODUCTION TO SIMPLE FINANCE- UNIVERSAL JOURNAL

CORE BENEFITS OF UNIVERSAL JOURNAL-

Data reconciliations
By removing all of the tables and creating a single table to hold all of the information, the
requirement to reconcile is no longer required as the source for Statutory and Management
reporting is the same.
Further to this the need to wait for Month End to perform Inter-Company reconciliations is
removed as this can be run real-time any time during the accounting period
INTRODUCTION TO SIMPLE FINANCE- UNIVERSAL JOURNAL

CORE BENEFITS OF UNIVERSAL JOURNAL-

Data reconciliations
Reconciling financial data with Management accounting data is a common task that verifies all of
the transactions have been recorded correctly. The reason for this check is due to the way SAP
recorded the different types of data (various tables for Statutory and Management Accounting).
INTRODUCTION TO SIMPLE FINANCE – UNIVERSAL JOURNAL
INTRODUCTION TO SIMPLE FINANCE – UNIVERSAL JOURNAL

One line item table with full detail for all components. Data stored only once, so no
reconciliation needed by architecture.
Fast multi-dimensional reporting on the Universal Journal possible without replicating data to
BW.
If BW is in place, one single BW extractor is needed.
Reduction of memory footprint through elimination of redundancy.
Technical preparation done to enhance important structural capabilities of the Financials solution
(e.g. multi-GAAP, additional currencies)
Agenda

• Introduction
• Module Integration
• Sales and distribution Cycle
• SAP S/4 Hana Fiori Launch Pads for sales cycle
SAP S/4 HANA: Simplification in Order to Cash Transactions

• The transaction code for customer master/Vendor master creation is BP

• XD01/XD02/XD03 not available in in SAP S/4 Hana on premise edition 1511
• With S/4 HANA, the foreign trade functionality will not be available because SAP GTS
(Globe trade services) is the successor for business req
• Maintenance of credit master data is not done through FD32 anymore, but through
transaction UKM_BP
• SD Rebate management is replaced by the settlement management
SAP S/4 HANA: Simplification
SAP S/4 HANA: Simplification
SAP S/4 Hana Fiori Launch Pads For Sales Order Creation…..
SAP S/4 Hana Fiori Launch Pads For Sales Order Creation…..
SAP S/4 Hana Fiori Launch Pads For Sales Order Creation…..
SAP S/4 Hana Fiori Launch Pad For Delivery Creation…..
SAP S/4 Hana Fiori Launch Pad For Delivery Creation…..
Agenda
qData migration option.
qClassical SAP Vs SAP S/4 HANA.
qOverview and Org. Structure
qData model Simplification.
qMaterial Master
qPurchasing Master Data(Vendor master, PIR, Source list)
qProcurement(Through various purchasing documents)
qInventory Management/Valuation
qSAP S/4HANA System Conversion
qSAP S/4HANA Landscape Transformation
qSAP S/4HANA New Implementation
Data Migration Option (DMO)

q You can also

use DMO to go
directly to SAP
S/4HANA from a
non-HANA source.
Database.
 Organizational structures in R/3
Organizational units SAP No
Change
S/4 HANA
Company

Controlling areas

Sales organizations Purchasing organizations

Company codes

Valuation areas

Plants

Storage locations/batches/special stocks

 Enterprise management : R/3 Vs S/4

BEFORE

AFTER
 Resource Management in Logistics
Capital Investment Expense/costs Cash
long-term short-term

Capital resources
Logistics chain
Procurement Production Sales
Purchase orders Ware- Distributions Ware- Sales orders
n materials house house n products
n services n services

Vendor
Material resources Customer

Capacity resources
SAP Fiori (4th component in S/4 HANA)
Today Target
Functional-based applications Role-based applications

from: One transaction for multiple roles with too much and to: Decomposed apps for each role with simple functions
complex functionality

from: Multiple entry points for the user and inconsistent user to: One entry point for the User and UX following
experience common design directions

This is the current state of planning and may be changed by SAP at any time.
SAP S/4HANA

Data Model Simplification

 Principle of One Data Model Simplifications
Sales and Distribution Inventory Mgmt. Inventory Mgmt. Material Ledger Finance *
(Quantities) (Valuation via „MBEW) (multi GAAP, multi currency)

Primary Totals Totals CE4*

MARD MBEW QBEW
Document tables CKMLPP CKMLCR COSP FAGLFLEXT
VBAK LIKP VBRK Totals tables COSS
MARC OBEW OBEW GLFUNCT GLPCT
COFIT
Business Suite

MSPR
MSTQ
VBAP LIPS VBRP VBFA MSLB CKMI1
MSTE
BSIS BSET BSIK BSID BSIM
MSTB Totals Index Indices
MSLBH MSKU
Export/import Index MSTQH BSAS BSAD BSAK
LIS MSSQ
MSKA
tables tables tables Status tables MSTEH MSKUH
MSSA MKOL MBEWH QBEWH
EIKP VBUK S066 VAPMA MSTBH MSKAH Document
VAKPA MCHB BKPF Documents
EIPO VBUP S067 MSSQH MKOLH OBEWH OBEWH MLHD MLIT
VLPMA BSEG
VLKPA MSSAH MCHBH MKPF MLPP MLCR
Document FAGLFLEXA
VRPMA MLPPF GLPCA
Rebate index Output mgmt MSPRH MARDH MLCRF COBK GLFUNCA
VRKPA MSEG ANEK
VBOX NAST MARCH COEP
ANEP COFIS
History tables

Sales and Distribution Master Data Inventory Mgmt Material Ledger Finance *
(Quantities) (multi GAAP, multi currency)
VBAK LIKB VBRK
BKPF COBK
MATDOC Material ACDOCA
VBAP LIPS VBRP VBFA Material
Prices
BSEG BSET

SIMPLE DATA MODEL PRINCIPLE OF ONE THROUGHPUT INCREASE

» Only main tables remaining, no redundancies » Only one valuation method (Material Ledger)
instead of 2 (IM + ML)
» Clear separation of master data from transactional data
» Reduction of memory footprint » Flexible rebate management instead of cumbersome
and expensive redundancies
» INSERT only on database level (MM-IM),
no locks for standard price valuation
* Actual Data only
Not displayed in lower part: Profit Center Accounting,
Cost based CO-PA, Reconciliation Ledger

© 2015 SAP SE or an SAP affiliate company. All rights reserved.

Innovations: Inventory Management Simplification
Business Suite

Aggregates History

MSTQ MSLB MSTQH MSLBH

On the fly
aggregation
MSTE MSKU MSTEH MSKUH
Document

MSTB MSKA MSTBH MSKAH

MKPF MSEG
Inventory movements
MSSQ MKOL MSSQH MKOLH MATDOC
MSSA MCHB MSSAH MCHBH Material
Document
MSPR MSPRH MARDH

MARCH
Material Master
Master data without
Master data with Stock aggregates Stock aggregates
Master data MARC MARD MARC MARD
Transactional Data
MARCH MARDH
26 aggregate tables
 SAP S/4HANA real-time analytics architecture
Foundation for new class of applications

Applications
(incl. insight-to-
SAP S/4HANA Operational action)
Reporting Query
applications
Tools

Zero latency!

SAP NetWeaver PLATFORM

SAP HANA Views (Virtual Data Model)

ABAP Layer Core Data Services (CDS)

Physical Tables
SAP HANA Database Layer

Granular Instantaneous Pre-defined

© 2015 SAP SE or an SAP affiliate company. All rights reserved.
 SAP S/4HANA Enterprise Management

• SAP S/4HANA Enterprise

Enterprise Management Management Logistics

comprises generally the
Logistics functionality covered by ECC
Financials Logistics General (LO) Product Lifecycle Management (PLM)
6.0x logistics
• Major Simplifications in the
Digital Core

Digital Core
Sales and Distribution (SD) Materials Management (MM)
areas of:
Logistics Execution (LE) Quality Management (QM) • Inventory Management
• Material Requirements Planning
Plant Maintenance (PM) Customer Service (CS)
HCM • Capacity Planning
Production Planning & Control (PP) Project Management (PS) • Sales and Distribution
Others: Global Trade Management, Compensation • Procurement
Environment, Health & Safety (EHS) Management, Agency Business, …

Industry specific Functions:

Discrete Industries – Automotive, High Tech, IM&C, A&D, Mill Products,
Chemicals
 SAP S/4HANA 1511 – Key Logistics Innovations

Material Inventory Management Material Available To Promise & Capacity

Requirements Planning
Fast MRP run, and new working
model for MRP controllers based
on decision support.
Valuation Backorder processing Planning
Elimination of locking, increased
Simplified data model resulting New ATP Algorithm based on PP/DS Side by Side with S/4
throughput for standard price
in increased through-put, flexible HANA embedded in mass
utilizing Material Ledger, that
analytics at the most granular component check in production
way customers can use multi-
level.
currencies, valuation methods
per different accounting laws like
GAAP.

Order Management & Billing Procurement

Enable monitoring of end-to-end order-to-cash process & take Increased efficiency in the
actions for any exceptions, information on the exceptions to Procure-to-Pay processes, new
resolve the issues, lower TCO due to data model simplification, Analytical Apps & Spend KPI’s,
support for the most recent versions of business features such Ariba Network Integration for PO
as FSCM Credit Management, GTS Foreign Trade, SFIN Revenue Order and IV.
Accounting, new analytical capabilities.

© 2015 SAP SE or an SAP affiliate company. All rights reserved. This is the current state of planning and may be changed by SAP at any time.
 Traditional Material master record Vs S/4 HANA
General data General data
SAP Material number extended to 40 characters.
Material number (18)
S/4 HANA Description
Description
Units of measure Units of measure
Technical data Technical data

Plant-specific data Warehouse Manage- Sales-specific data

Valuation ment system data
MRP/type Valuation price Unit of measure Delivering plant
Planned delivery time Valuation procedure Palletting instruction Sales texts
Purchasing group Valuated quantity
Batch indicator

Storage location-
Forecast data
specific data
Storage time
Consumption data
Stockfields
 SAP
S/4 HANA
: Materials management & operations.
 SAP
S/4 HANA
: Natively Extended Material number.

In SAP S/4HANA the material number will be natively extended to 40 characters

Customers are flexible to use their own

systematic Harmonized master data model across
whole SAP portfolio
 SAP
S/4 HANA
: Materials management & operations.
 Traditional Vendor master record
General data Valid
for the whole group
Address
Communication

Purchasing data Valid

for one purchasing
Order currency organization
Incoterms
Minimum order value

Accounting data Valid

for the whole group or
Bank data for one company code
Payment transactions
Account management
 Purchasing info records
Piece
%
Conditions
Material
USD
Info record

Vendor A Info record Stock material M1

Info record
Consumable
material M2
Info record

Vendor B Info record Service S1

 Data in the purchasing info record

General data Texts

Vendor data
Origin data
Order unit

Control data Prices and

conditions
Delivery time Gross price
Minimum quantity Discounts
Tolerances Freight

Price history
Purchasing statistics
Changes
 Source list

1.1.16 - 30.6.16 1.7.16 - 31.12.16

Source list
Vendor 1 allowed Vendor 1 fixed
Vendor 2 allowed
Material M1
Plant 0001
Vendor 3 allowed
 Traditional Procurement Process
Order Invoice
MRP

?
7 Invoice verification 1 Requirement determination

MM
Materials
Goods receipt and management
6 Source
inventory management 2
determination

Order

Order follow-up 3 Vendor selection

5
4 Order processing
 External procurement environment
Source list Requirements RFQs
determination

Purchase
requisition Quotations
Quota
arrangement

Source Piece
Outline determination %
agreement Conditions
Vendor
selection USD

Info record
Purchase order
history
Purchase
Invoice
order
receipt

Goods receipt
 Purchase requisition
Department

MRP

Requisition Requisition

Purchasing
 Purchase requisition processing
MRP Direct entry

Purchase requisition

Determine source of supply Release

Vendor
o.k.

Allocate and process

RFQ Purchase
order Release
order
?
 Request for quotation/ quotation
RFQ 1 RFQ 2
Requirements known.
Procure from which ?
source?

Vendor 1 Vendor 2

Quotation 1 Quotation 2

Price comparison list

Purchase Rejection
order
 Processing Purchase Orders
Purchase RFQ Reference Contract
requisition document

Order history Pcs

Vendor
Purchase %
order
Conditions

One-time vendor $
Info record
 Contract
Contract Reference Reference Purchase
request RFQ contract requisition

Contract Release order

1 2

Vendor
 Scheduling Agreements
Purchase Reference Purchase
RFQ scheduling
requisition agreement requisition

Scheduling Einstellungen
Einstellungen
agreement Schedule lines

1 2
Vendor
 SAP
S/4 HANA
: Introduction of SAP Fiori Apps in S/4 HANA.

The Fiori Apps are of 3 categories in S/4 HANA….

Data creation/Transactional
Analytical
Factsheets.
 SAP
S/4 HANA : Sourcing and Procurement _ Spend Analysis_ Procurement Analytics

You can open detailed graphical or interactive representations of analytical data by using a variety of
predefined reports and key performance indicators. Reports and analyses available for purchasing and invoice
spend, contract management, and supplier evaluation provide detailed information in real time, enabling you
to make strategic decisions and take subsequent action.
Sourcing and Procurement _ Spend Analysis_ Procurement Analytics

Key Feature Use

You can determine the sum (without taxes) paid to suppliers without a
Non-managed
spend purchase order reference in relation to the total spend for suppliers. The
calculation is based on accounting documents.
Purchase order
You can check the average delivery time of purchase orders from your
average delivery
time suppliers.
You can determine the sum of the purchase order value, goods receipt value,

Spend variance and invoice value per supplier or material. The relation between the purchase

orders, good receipts, and invoice value can be determined depending on your
filter criteria.
Sourcing and Procurement _ Spend Analysis_ Procurement Analytics

Key Feature Use

You can identify contracts for which a release has not taken place within aspecific time
frame.
Unused contracts
You can find the released amount of the unused contracts
in the display currency and the IDs of all unused contracts.
You can retrieve the order value for all the purchase orders over time.
Purchase order value
You can also determine all current values of all purchase orders in the system.
You can identify purchase contracts that will expire within a specific time frame.

Contract expiry You can find the number of expiring contracts and the released amount in the

display currency of the expired contracts.

You can identify purchase contracts that will expire within a specific time frame.
 SAP
S/4 HANA
: Supplier Evaluation

You can evaluate your company's suppliers to obtain a basis for your business
relationship with them and for optimizing your supply base. Based on the feedback you
gather through questionnaires, you obtain a scorecard for each supplier evaluated. The
scorecard helps you to assess a supplier's strengths and shortcomings and to initiate
measures for improvement. Evaluation scorecards also enable you to easily compare
suppliers within a peer group.
 SAP
S/4 HANA
: Supplier Evaluation
Key Feature Use
You can create questionnaires that you then send out to internal stakeholders within your company to
collect information about your suppliers.
Evaluation The questionnaires can contain different types of questions, depending on your requirements.
If required, you can translate the questionnaires into further languages.
Questionnaire

Supplier You can use evaluation templates to repeatedly generate evaluation requests
that share the same properties. As an example, requests generated from the
Evaluation
same template use the same questionnaires.
Template
Evaluation scorecards show the overall result of a supplier evaluation for one
supplier, aggregating the evaluation results from all appraisers. If you
Evaluation evaluate a supplier in yearly intervals, you have an evaluation scorecard for
Scorecard this supplier reflecting the scores for the entire year.
Benefits
Product road map* structure
Streamlined Procure to Pay – P2P
SAP S/4 HANA Modules
WHY Went FOR SIMPLE LOGISTICS
MATERIAL VALUATION
Inventory Valuation

Without Material
Ledger MAP
Single Currency
Local Local currency Standard
currency

Local
SAP FI currency 2 Material Ledger Transactional

Local currency
Local Multi Currency
Optional Optional
currency 3 currency 1 currency 2
Multi Level

Optional
Actual Costing
Overview of changes in Inventory Management & Procurement

Simplified Data model in SAP Inventory Management.

Inventory Management Transactions Changes.
Material Ledger Obligatory.
Pricing Simplification(KONV table -> PRCD_ELEMENTS).
Simplified Data Model.

The SAP ERP 6.0 stock inventory management data model consists of the two document
tables MKPF for document header information and MSEG for document item data.
Additionally there were aggregated actual stock Qty data stored in several tables – Aggregated
Tables.
Some of these tables do also material master data attributes like the tables MARC,MARD and
MCHB – Hybrid Tables.
The new de-normalized table MATDOC has been introduced which contains the former header
and item data of a material document as well as a lot of further attributes.
So, Now Everything is available at one place.
Inventory Transactions Changes.

Below MB transactions are not available with S/4.

MB01, MB02, MB03, MB04, MB05, MB0A, MB11, MB1A, MB1B, MB1C, MB31, MBNL,
MBRL, MBSF, MBSL, MBST and MBSU.
MMBE_OLD: Fiori application Stock- Single Material, VDM view C_MaterialStockActual.
MMBE: Fiori application Stock- single Material, VDM view C_MaterialStockActual.
MB51:Fiori application Material Documents Overview
MB52:Fiori application Stock- Multiple Materials, VDM view C_MaterialStockActual
MB5B:Fiori application Stock- Multiple Materials, VDM view C_MaterialStockByKeyDate
So, Now Everything is available at one place.
Other - Logistics

OUTPUT CHANGES IN
MANAGEMENT MRP - MRP Removal of
Live Foreign Trade
OUTPUT MANAGEMENT

With SAP S/4 HANA a new Output Management Approach is in place.

Complete configuration differs from the configuration that is used when output
management is based on NACE.
The configuration is based on BRF+.
Target architecture is based on Adobe document server and Adobe forms only.
Output management based on NACE is not available for new documents.
Billing documents that are migrated from legacy systems
MRP Live

MRP has been optimized to improve the overall performance using a HANA database.
Business function LOG_PPH_MDPSX_READ needs to be activated.
Benefits :
qMore up-to-date supply and demand information.
qFaster reaction to demand changes reduces the risk of stock-outs.
qIdentify and react to issues faster.
MRP Types

MRP Live (Transaction MD01N) calls MRP on HANA.

MRP Live (Transaction MD01N) calls classic MRP.
Which planning run is used depends on the MRP parameters defined for the materials
in the material master record and in customizing.
Fiori Launch Pad _ Home screen of the MRP User
On the Fly Simulation and decision Support.
Decision Support & Solution Proposals
Questions and Answers