SAP Best Practices for SAP S/4HANA Scope 1511 – On-premise edition Business Priority view last update: 2015-11-11
Enterprise Management Product Map Streamlined Procure to Pay
Accelerated Plan to Product
Optimized Order to Cash
Enhanced Request to Service
Supplier Management
Production Engineering and Planning
Order and Contract Management
Service Master Data Management
Sourcing and Contract Management
Production Operations and Execution
Inventory and Basic Warehouse Management
Service Management
Operational Procurement
Inventory and Basic Warehouse Management
Receivables Processing
Service Parts Management
Inventory and Basic Warehouse Management
Product Development and Project Control
Invoice and Payables Management
Maintenance Management
Service Agreement Management
Quality Management and Compliance
Core Human Resources
Cross Application Time Management
Core Finance
Accounting and Financial Close
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
Cost Management and Profitability Analysis
Customer
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SAP Best Practices for On-premise edition 2015/11 Value Proposition •
Business Benefits
The SAP Best Practices for SAP S/4HANA are tailored specifically to accelerate and simplify the adoption of SAP S/4HANA, on-premise edition for faster time to value, by providing pre-configured content for core business processes with role specific, responsive and simple UX.
•
Reduce cost of operations with using standardizing processes delivered by SAP Best Practices
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Manage multiple geographies, divisions, subsidiaries, ledgers with global and country specific content
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The Guided Configuration allows a simplier configuration, automated testing and life-cycle management to support agile adoption of continuous innovation even after go-live.
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Drive operational efficiencies and comply with regulations
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Analytical content like operational reporting is now included as well as UX Fiori content providing the infrastructure for the deployment, testing and extension of S/4 HANA user interface components.
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Empower business and IT users with guided configuration allow a first-hand experience of SAP S/4HANA with instant guided trials
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SAP Best Practices for Migration, complements the foundation and offers customers a non-disruptive, simplified transition to SAP S/4HANA.
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Update and change customer specific configuration using S/4 HANA life cycle management tools
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SAP Best Practices offers integration to SAP cloud solutions like SuccessFactors Employee Central and Ariba.
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
Customer
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SAP Best Practices for Scope Coverage in 1511: On-premise edition SAP BEST PRACTICES FOR SAP S/4HANA ON PREMISE EDITION Streamlined Procure to Pay
Supplier Information and Master Data
Sourcing and Contract Management
Operational Procurement
Inventory & Basic Warehouse Management
Invoice and Payables Management
Accelerated Plan to Product
Production Engineering and Planning
Manufacturing Operations
Inventory & Basic Warehouse Management
Product Development and Project Control
Maintenance Management Quality Management and Compliance
Optimized Order to Cash
Order and Contract Management
Inventory & Basic Warehouse Management
Enhanced Request to Service *)
Service Master Data Management
Service Management
Core Human Resources *)
Cross Application Time Management
Employee Central Connectivity
Core Finance
Accounting and Financial Close
Cost Management and Profitability Analysis
Receivables Processing Service Parts Management
Service Agreement Management
CORE INDUSTRY PRIORITIES CROSS ENTERPRISE PRIORITIES
ANALYTICAL CONTENT
Analytics
*) SAP Best Practices not in 1511 on-premise scope
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
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Business Priority
E2E Solution
Integration
Solution Capability • SAP Best Practices
Customer
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SAP Best Practices for Scope Coverage in 2015: On-premise edition, Streamlined Procure to Pay SAP BEST PRACTICES FOR SAP S/4HANA ON PREMISE EDITION Streamlined Procure to Pay
Supplier Information and Master Data
Accelerated Plan to Product
Sourcing and Contract Management
Operational Procurement
Inventory & Basic Warehouse Management
Invoice and Payables Management
Operational Contract Management (S/4HANA)
Purchase Order Processing (S/4HANA)
Basic Warehouse Management (S/4HANA)
Accounts Payable (S/4HANA)
• Procurement Contract
Optimized Order to Cash Enhanced Request to Service *) Core Human Resources *) Core Finance
• Procurement & Consumption of Consigned Inventory
• Stock Handling - Rework, Scrap, Blocked Stock
• Procurement of Direct Materials
• Return to Vendor
• Accounts Payable
• Physical Inventory - Inventory Count and Adjustment
Invoice Collaboration (S/4HANA) • Integration Ariba – Business Network Integration
Service Purchasing (S/4HANA) • External Procurement of Third-party Resources
Purchase Order Collaboration (S/4HANA) • Integration Ariba – Business Network Integration
Analytics
*) SAP Best Practices not in 1511 on-premise scope
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Business Priority
E2E Solution
Integration
Solution Capability • SAP Best Practices
Customer
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SAP Best Practices for Scope Coverage in 2015: On-premise edition, Accelerated Plan to Product SAP BEST PRACTICES FOR SAP S/4HANA ON PREMISE EDITION Streamlined Procure to Pay Accelerated Plan to Product
Production Engineering and Planning
Production Operations and Execution
Inventory & Basic Warehouse Management
Material Requirements Planning (S/4HANA)
Production Processing (S/4HANA)
Basic Warehouse Management (S/4HANA)
Optimized Order to Cash Enhanced Request to Service *) Core Human Resources *) Core Finance
• Make-to-Stock Production Discrete Industry
• Stock Handling - Rework, Scrap, Blocked Stock
• Make-to-Stock Production Process Industry
• Return to Vendor
• Rework Processing (StockManufactured Material)
Product Development and Project Control
Maintenance Management Quality Management and Compliance
• Physical Inventory - Inventory Count and Adjustment
• Rework Processing (Work-inProcess) • Material Requirements Planning
Basic Subcontracting (S/4HANA) • Production Subcontracting External Processing
Analytics
*) SAP Best Practices not in 1511 on-premise scope
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
Repetitive Manufacturing (S/4HANA) • Repetitive Manufacturing
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Business Priority
E2E Solution
Integration
Solution Capability • SAP Best Practices
Customer
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SAP Best Practices for Scope Coverage in 2015: On-premise edition, Optimized Order to Cash SAP BEST PRACTICES FOR SAP S/4HANA ON PREMISE EDITION Streamlined Procure to Pay Accelerated Plan to Product
Optimized Order to Cash Enhanced Request to Service *) Core Human Resources *) Core Finance
Analytics
Order and Contract Management
Sales Order Management and Processing (S/4HANA) • Sales Processing using ThirdParty with Shipping Notification • Sell from Stock • Free of Charge Delivery • Sales Quotation • Sales Order Processing for Prospect • Sales Processing using ThirdParty without Shipping Notification • Sales of Nonstock Item with Order specific Procurement
*) SAP Best Practices not in 1511 on-premise scope
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
• Returnables Processing • Free Goods Processing • Sales Order Processing with Customer Down Payment • Sales Period End Closing Operations • Credit Memo Processing • SEPA Direct Debit handling in SD • Sales Order Processing with Collective Billing
Billing and Invoicing (S/4HANA) • Debit Memo Processing
Claims, Returns, and Refund Management • Customer Returns
Legend:
Inventory & Basic Warehouse Management
Receivables Processing
Basic Warehouse Management (S/4HANA)
Accounts Receivable (S/4HANA)
• Stock Handling - Rework, Scrap, Blocked Stock
• Accounts Receivable
• Return to Vendor • Physical Inventory - Inventory Count and Adjustment
Business Priority
E2E Solution
Integration
Solution Capability • SAP Best Practices
Customer
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SAP Best Practices for Scope Coverage in 2015: On-premise edition, Core Finance SAP BEST PRACTICES FOR SAP S/4HANA ON PREMISE EDITION Streamlined Procure to Pay Accelerated Plan to Product
Entity Close (S/4HANA)
Accounts Payable (S/4HANA) • Accounts Payable
Optimized Order to Cash Enhanced Request to Service *) Core Human Resources *) Core Finance
Accounts Receivable (S/4HANA)
General Ledger (S/4HANA) • Accounting and Financial Close
Inventory Accounting (S/4HANA)
• Credit Management • Accounts Receivable
• Inventory Valuation for Year End Closing
Asset Accounting (S/4HANA)
Revenue and Cost Accounting (S/4HANA)
• Asset Accounting
• Overhead Cost Accounting
Accounting and Financial Close
Cost Management (S/4HANA) • Internal Order Actual
Product Cost Management (S/4HANA) • Standard Cost Calculation
CORE INDUSTRY PRIORITIES
Profitability and Cost Analysis (S/4HANA)
CROSS ENTERPRISE PRIORITIES
• Plant - Period End Closing • Profitability & Cost Analysis
Cost Management and Profitability Analysis
Analytics
*) SAP Best Practices not in 1511 on-premise scope
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Business Priority
E2E Solution
Integration
Solution Capability • SAP Best Practices
Customer
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SAP Best Practices for Scope Coverage in 2015: On-premise edition, Analytics SAP BEST PRACTICES FOR SAP S/4HANA ON PREMISE EDITION Streamlined Procure to Pay Accelerated Plan to Product
Optimized Order to Cash Enhanced Request to Service *) Core Human Resources *) Core Finance
Analytics
ANALYTICAL CONTENT
• Analytical content for S/4HANA
*) SAP Best Practices not in 1511 on-premise scope
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SAP Best Practices for SAP S/4HANA Scope 1511 – On-premise edition SAP Best Practices Process Descriptions
SAP Best Practices for Scope Coverage in 2015: On-premise edition, Streamlined Procure to Pay SAP BEST PRACTICES FOR SAP S/4HANA ON PREMISE EDITION Streamlined Procure to Pay
Supplier Information and Master Data
Accelerated Plan to Product
Sourcing and Contract Management
Operational Procurement
Inventory & Basic Warehouse Management
Invoice and Payables Management
Operational Contract Management (S/4HANA)
Purchase Order Processing (S/4HANA)
Basic Warehouse Management (S/4HANA)
Accounts Payable (S/4HANA)
• Procurement Contract
Optimized Order to Cash Enhanced Request to Service *) Core Human Resources *) Core Finance
• Procurement & Consumption of Consigned Inventory
• Stock Handling - Rework, Scrap, Blocked Stock
• Procurement of Direct Materials
• Return to Vendor
• Accounts Payable
• Physical Inventory - Inventory Count and Adjustment
Invoice Collaboration (S/4HANA) • Integration Ariba – Business Network Integration
Service Purchasing (S/4HANA) • External Procurement of Third-party Resources
Purchase Order Collaboration (S/4HANA) • Integration Ariba – Business Network Integration
Analytics
*) SAP Best Practices not in 1511 on-premise scope
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
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Solution Capability • SAP Best Practices
Customer
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Sourcing and Contract Management Procurement Contract Contracts are differentiated as follows: Quantity contracts are an agreement for a company to order a certain quantity of a product during a specified period. In source determination, contracts replace the purchasing info records and can be assigned in the source list as the fixed source for MRP. Target groups are purchasing managers as well as buyers. Purchase requisitions and purchase orders are created after the contract if they do not exist yet.
Key process steps Create a basic agreement (quantity contract) Create a purchase requisition Assign requisition and creating purchase order Approve purchase orders Monitor contract Goods receipt Invoice receipt by line item
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
Business benefits Reduction of procurement costs Securing of supplies Transparency of supplier agreements
Customer
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Operational Procurement Procurement & Consumption of Consigned Inventory In consignment processing, the vendor provides material and stores it on the customer site. The vendor remains the legal owner of the material until material is withdrawn from the consignment stores. Once withdrawn, the vendor requires payment. The invoice is due at predefined periods, such as monthly. In addition, customers can also arrange with the vendor that they take over ownership of the remaining consignment material after a certain period.
The daily MRP run creates purchase requisitions for parts that are to be procured on a consignment basis. Key process steps
Business benefits
Goods receipt to vendor consignment stock
Automatic posting of goods into vendor consignment stock
Transfer posting of vendor consigned stock to own stock Invoice verification Outgoing payment
Fewer manual FI postings required: Upon goods issue from consignment storage, the relevant invoice data is transferred to FI. Periodic invoicing generates and releases the vendor invoices.
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
Customer
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Operational Procurement Procurement of Direct Materials This purchasing process uses purchase requisitions that are generated either via the Material Requirements Planning (MRP) process or manually by a requester. A purchasing administrator validates the accuracy of the purchase requisition and converts the purchase requisition into a purchase order. Alternatively, the purchase orders can be generated manually. The purchase order is subject to approval based on a predefined amount before being issued to a vendor. Goods are shipped from the vendor and the goods receipt is prepared with reference to the purchase order. The invoice is received from the vendor. Invoices are entered with reference to a purchase order. Key process steps Manage sources of supply Display and assign purchase requisitions Convert assigned requisitions to purchase orders Purchase order management Receive goods from supplier Stock management Invoice receipt and management Outgoing payments Purchasing and inventory analytics
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
Business benefits Operate more efficiently and cost-effectively with streamlined procurement that brings more spend under management Ensure highly automated procurement processes for direct materials
Customer
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Operational Procurement External Procurement of Third-party Resources The business process starts with a purchase order. You can create a purchase order with or without a reference to a purchase requisition. The goods receipt is booked with the incoming delivery. The invoice is booked with reference to the purchase order.
Key process steps
Business benefits
Create a purchase order
Leverage of purchase order management for the third-party resource procurement
Confirm the goods receipt Enter the invoice for external maintenance
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
Customer
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Operational Procurement Business Network Integration Purchase Order & Invoice Automation on the Ariba Network enables you to seamlessly connect from SAP S/4HANA to your suppliers on the Ariba Network. You can send electronic purchase orders to your suppliers using the Ariba Network, and receive electronic supplier invoices from the Ariba Network in SAP S/4HANA. You can use Business Network Integration in the procurement of direct materials and in the procurement for project-based services processes.
Collaboration with your suppliers in the Ariba Network supports you in speeding up the procurement processes and in reducing manual process steps during invoice verification, reducing the costs involved in the transactions with your suppliers. Key process steps
Business benefits
Purchase order processing
Reduce transaction costs
Invoicing
Increase visibility Speed up procurement processes
Reduce manual process steps during invoice verification
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
Customer
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Inventory & Basic Warehouse Management Stock Handling - Rework, Scrap, Blocked Stock This scope item covers the returns from customer, rework from production, and other logistic business processes. The target group is warehouse clerks.
Key process steps
Business benefits
Support of process-related transfer postings
Customer returns scrapping: goods issue to CO-PA General stock scrapping: goods issue to cost center Block material - stock transfer unrestricted to blocked Unblock material - stock transfer blocked to unrestricted Unblock material - stock transfer blocked to quality inspection stock
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
Support of legally required transfer postings
Customer
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Inventory & Basic Warehouse Management Return to Vendor The return to vendor process begins with a requirement to return an item to a vendor. You first request a Returns Material Authorization (RMA) from the vendor, which is entered into a text field in the return purchase order. The buyer creates a return purchase order in the system. The return purchase order is similar to a standard purchase order except the return flag that sets up the return delivery to enable shipment of the items back to the vendor.
The return purchase order confirmation goes to the vendor and the return delivery is sent to the shipping department where the items are picked and shipped back along with a delivery note. When the shipping department creates the delivery the items are withdrawn from stock. A credit memo is generated which transfers the liability to the vendor.
Key process steps
Business benefits
Goods can be returned with a return reason captured in the document
Return purchase order creation Delivery due list for purchase orders Confirmation of picking Goods issue Manual review of pending credits
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
All information for follow-on FI functions is provided – invoice reduction, rejection, cancellation, and so on
Customer
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Inventory & Basic Warehouse Management Physical Inventory - Inventory Count and Adjustment The process begins with the generation of the required inventory count sheets. Materials can be blocked here for posting during the physical inventory. Once the inventory sheets are printed out, the actual physical inventory count is realized for the given materials. Afterwards, the count result is entered in the system and any discrepancies against the system quantities are reviewed. The inventory may be recounted until final counts are accepted and inventory differences are posted.
Key process steps
Business benefits
Ÿ Create physical inventory documents Print physical inventory documents
T Ÿransparent view on the stocks currently available
Execute physical count or recount
Efficient processing of inventory adjustments
Enter physical count List and post physical count differences
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
Customer
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Invoice and Payables Management Accounts Payable With Accounts Payables, you can manage your open payables invoices that are automatically created from purchasing processes. You can manage and control open items with various analytical tools to optimize accounts payable handling. You can process payments automatically, ensure approval of all payments before payment, and monitor payment progress.
Key process steps
Business benefits
Accounts payable are an integral part of the purchasing system
Manage and complete supplier master data Create invoice from logistics Pay invoice Approve payment Optionally forward payment via Financial Services Network (FSN)
Accounts payable postings are recorded directly in the general ledger Payment program can automatically perform bank transfers and down payments Simplified and secure connectivity for transacting with multiple financial institutes
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
Customer
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Invoice and Payables Management Business Network Integration Purchase Order & Invoice Automation on the Ariba Network enables you to seamlessly connect from SAP S/4HANA to your suppliers on the Ariba Network. You can send electronic purchase orders to your suppliers using the Ariba Network, and receive electronic supplier invoices from the Ariba Network in SAP S/4HANA. You can use Business Network Integration in the procurement of direct materials and in the procurement for project-based services processes.
Collaboration with your suppliers in the Ariba Network supports you in speeding up the procurement processes and in reducing manual process steps during invoice verification, reducing the costs involved in the transactions with your suppliers. Key process steps
Business benefits
Purchase order processing
Reduce transaction costs
Invoicing
Increase visibility Speed up procurement processes
Reduce manual process steps during invoice verification
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
Customer
21
SAP Best Practices for Scope Coverage in 2015: On-premise edition, Accelerated Plan to Product SAP BEST PRACTICES FOR SAP S/4HANA ON PREMISE EDITION Streamlined Procure to Pay Accelerated Plan to Product
Production Engineering and Planning
Production Operations and Execution
Inventory & Basic Warehouse Management
Material Requirements Planning (S/4HANA)
Production Processing (S/4HANA)
Basic Warehouse Management (S/4HANA)
Optimized Order to Cash Enhanced Request to Service *) Core Human Resources *) Core Finance
• Make-to-Stock Production Discrete Industry
• Stock Handling - Rework, Scrap, Blocked Stock
• Make-to-Stock Production Process Industry
• Return to Vendor
• Rework Processing (StockManufactured Material)
Product Development and Project Control
Maintenance Management Quality Management and Compliance
• Physical Inventory - Inventory Count and Adjustment
• Rework Processing (Work-inProcess) • Material Requirements Planning
Basic Subcontracting (S/4HANA) • Production Subcontracting External Processing
Analytics
*) SAP Best Practices not in 1511 on-premise scope
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
Repetitive Manufacturing (S/4HANA) • Repetitive Manufacturing
Legend:
Business Priority
E2E Solution
Integration
Solution Capability • SAP Best Practices
Customer
22
Production Engineering and Planning Material Requirements Planning This process enables your material requirements planning department to automate the procurement planning. The main function of material requirements planning is to guarantee material availability and to avoid delays in order fulfillment. The system checks the availability of each material in the planning run and creates purchase requisitions in case of shortages. Remaining shortages are displayed in the appropriate apps where the material planner can analyze the situation.
In many cases, the procurement lead time is longer than the time available to fulfill a customer demand. In this case, you must procure the material in advance and cover your customer demand from stock. You start this process by creating forecast demands that are interpreted by the planning run as expected customer demands and are used to replenish stock levels. You then schedule the MRP run. The system creates purchase requisitions that trigger external procurement on completion of MRP. You can evaluate the results and make manual adjustments. Key process steps Manage forecast demand Schedule MRP run Monitor MRP run (material issues and key figures) Follow up on change requests Monitor and manage material shortages Monitor and manage external requirements
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
Business benefits Accelerated creation of purchase requisitions Automatic detection of shortages Higher accuracy of purchased quantities Cost savings through process automation
Customer
23
Production Engineering and Planning Make-to-Stock Production – Discrete Industry The typical planning process starts with sales quantity planning. The previous period`s actual sales figures can be used as a basis for future planning. Demand Management generates independent requirements that are used in the subsequent Material Requirements Planning (MRP) run. In MRP, the bill of materials (BOM) for the top-level material demand is exploded and production is planned down to the procured component level. MRP results in planned orders being generated for the material to be produced. If insufficient warehouse stock is available, purchase requisitions are created for the raw materials required. When the order is created, target costs are calculated for the order lot size (preliminary costing). Key process steps
Business benefits
Production execution triggered by a production plan
Create planned independent requirements Plan material requirements at plant level Produce in-house (subassembly) Final assembly in-house (finished good) Confirm assembly activities
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
Automatic explosion of the bill of material when running the material requirements planning Target costs are calculated while the order is created
Customer
24
Production Engineering and Planning Make-to-Stock Production – Process Industry Independent requirements are used in material requirements planning (MRP). Planned orders are converted to process orders for manufacturing execution. Material provisioning to the shop floor follows a similar process to that of repetitive manufacturing, leveraging automatic goods issues and goods receipts at time of order confirmation. Customer orders decrease the planned independent requirements at time of order entry and cost of sales is recognized in profitability at time of invoicing.
Key process steps
Business benefits
Planned independent requirements creation
Recipe-oriented production
Material requirements planning (MRP)
Materials handled in batches according to a recipe specified for the appropriate production quantity
Make-to-stock production using process orders for semi-finished and finished products
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
Cost object controlling
Customer
25
Production Engineering and Planning Repetitive Manufacturing Repetitive Manufacturing is commonly used when a production process meets the following criteria: The same or similar products are produced over a lengthy period. The products produced are not manufactured in individually defined lots. Instead, a total quantity is produced over a certain period at a certain rate. The products produced always follow the same sequence through the machines and work centers in production. Routings tend to be simple and do not vary much.
Key process steps
Business benefits
Creation of planned independent requirements
Make-to-stock production based on run schedules without reference to sales orders
Material requirements planning at plant level
Simplified handling of the production process with full cost control
In-house production Confirmation of assembly activities
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
Confirmation of assembly activities without using production or process orders
Customer
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Production Operations and Execution Make-to-Stock Production – Discrete Industry The typical planning process starts with sales quantity planning. The previous period`s actual sales figures can be used as a basis for future planning. Demand Management generates independent requirements that are used in the subsequent Material Requirements Planning (MRP) run. In MRP, the bill of materials (BOM) for the top-level material demand is exploded and production is planned down to the procured component level. MRP results in planned orders being generated for the material to be produced. If insufficient warehouse stock is available, purchase requisitions are created for the raw materials required. When the order is created, target costs are calculated for the order lot size (preliminary costing). Key process steps
Business benefits
Production execution triggered by a production plan
Create planned independent requirements Plan material requirements at plant level Produce in-house (subassembly) Final assembly in-house (finished good) Confirm assembly activities
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
Automatic explosion of the bill of material when running the material requirements planning Target costs are calculated while the order is created
Customer
27
Production Operations and Execution Make-to-Stock Production – Process Industry Independent requirements are used in material requirements planning (MRP). Planned orders are converted to process orders for manufacturing execution. Material provisioning to the shop floor follows a similar process to that of repetitive manufacturing, leveraging automatic goods issues and goods receipts at time of order confirmation. Customer orders decrease the planned independent requirements at time of order entry and cost of sales is recognized in profitability at time of invoicing.
Key process steps
Business benefits
Planned independent requirements creation
Recipe-oriented production
Material requirements planning (MRP)
Materials handled in batches according to a recipe specified for the appropriate production quantity
Make-to-stock production using process orders for semi-finished and finished products
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
Cost object controlling
Customer
28
Production Operations and Execution Rework Processing (Stock-Manufactured Material) This scope item focuses on rework activities and material postings after production execution for the original material (including goods receipt of the product) with an additional rework production order. Issues with the produced material are observed after it has been posted into inventory. In this scope item, the rework process of stock manufactured material is realized in creating a new production order, using the material to be reworked as input, and the same material as output. Costs are collected within the new production order, and are settled into controlling as production variances. The input component and product have the same material number. Key process steps
Business benefits
Creation of rework production order
Transparent costs for rework activities
Goods issue for defective material
Use of all standard shop-floor control functionalities is possible
Confirmation of rework production activities Posting goods receipt for rework production order
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
Customer
29
Production Operations and Execution Rework Processing (Work-in-Process) This scope item focuses on a rework process within production. All required rework activities are related to the parent production order. For this reason, errors are recognized and corrections initiated such as insertion of a rework operation within the same production order. The additional rework operation is confirmed and settled within the original production order, causing production variances within controlling and price differences for the dedicated product.
Key process steps
Business benefits
Confirm production activities
Scraps at defined operation automatically trigger rework process
Confirm scrap defective material Confirm parent order at rework operation Continue shop-floor activities
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
After rework, additional activity and material consumption can be confirmed Scope is fully integrated in the production process
Customer
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Production Operations and Execution Material Requirements Planning This process enables your material requirements planning department to automate the procurement planning. The main function of material requirements planning is to guarantee material availability and to avoid delays in order fulfillment. The system checks the availability of each material in the planning run and creates purchase requisitions in case of shortages. Remaining shortages are displayed in the appropriate apps where the material planner can analyze the situation.
In many cases, the procurement lead time is longer than the time available to fulfill a customer demand. In this case, you must procure the material in advance and cover your customer demand from stock. You start this process by creating forecast demands that are interpreted by the planning run as expected customer demands and are used to replenish stock levels. You then schedule the MRP run. The system creates purchase requisitions that trigger external procurement on completion of MRP. You can evaluate the results and make manual adjustments. Key process steps Manage forecast demand Schedule MRP run Monitor MRP run (material issues and key figures) Follow up on change requests Monitor and manage material shortages Monitor and manage external requirements
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
Business benefits Accelerated creation of purchase requisitions Automatic detection of shortages Higher accuracy of purchased quantities Cost savings through process automation
Customer
31
Production Operations and Execution Production Subcontracting - External Processing During the manufacturing process, when a planned order for production is converted to a production order, the system checks if any routing or work center operations require external processing. This type of processing is particularly important for subcontracting, as it provides a company with a feasible alternative to in-house processing if capacity bottlenecks occur. When a production order is scheduled, external operations must be taken into account. The duration of an external operation is calculated by either using the planned delivery time or using the standard values. The system automatically creates a purchase requisition for the operation or sub-operation that requires external processing. The production scheduler should inform the buyer to check the workload for requisitions that require external processing. Key process steps
Business benefits
C Ÿ reation of purchase order for external processing
An outline agreement can specify that a certain operation of the production order is executed by an external subcontractor on a regular basis
Goods receipt for subcontracting purchase order Entry of invoice Periodic payment
In the case of capacity bottlenecks, the assembly procedure of the finished product can be assigned to a subcontractor
Benefits • An outline agreement can specify that a certain operation of the production order is executed by an external subcontractor on a regular basis • In the case of capacity bottlenecks, the assembly procedure of the finished product can be assigned to a subcontractor © 2015 SAP SE or an SAP affiliate company. All rights reserved.
Customer
32
Production Operations and Execution Repetitive Manufacturing Repetitive Manufacturing is commonly used when a production process meets the following criteria: The same or similar products are produced over a lengthy period. The products produced are not manufactured in individually defined lots. Instead, a total quantity is produced over a certain period at a certain rate. The products produced always follow the same sequence through the machines and work centers in production. Routings tend to be simple and do not vary much.
Key process steps
Business benefits
Creation of planned independent requirements
Make-to-stock production based on run schedules without reference to sales orders
Material requirements planning at plant level
Simplified handling of the production process with full cost control
In-house production Confirmation of assembly activities
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
Confirmation of assembly activities without using production or process orders
Customer
33
Inventory & Basic Warehouse Management Stock Handling - Rework, Scrap, Blocked Stock This scope item covers the returns from customer, rework from production, and other logistic business processes. The target group is warehouse clerks.
Key process steps
Business benefits
Customer returns scrapping: goods issue to CO-PA General stock scrapping: goods issue to cost center Block material - stock transfer unrestricted to blocked Unblock material - stock transfer blocked to unrestricted Unblock material - stock transfer blocked to quality inspection stock
Support of process-related transfer postings
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
Support of legally required transfer postings
Customer
34
Inventory & Basic Warehouse Management Return to Vendor The return to vendor process begins with a requirement to return an item to a vendor. You first request a Returns Material Authorization (RMA) from the vendor, which is entered into a text field in the return purchase order. The buyer creates a return purchase order in the system. The return purchase order is similar to a standard purchase order except the return flag that sets up the return delivery to enable shipment of the items back to the vendor.
The return purchase order confirmation goes to the vendor and the return delivery is sent to the shipping department where the items are picked and shipped back along with a delivery note. When the shipping department creates the delivery the items are withdrawn from stock. A credit memo is generated which transfers the liability to the vendor.
Key process steps
Business benefits
Goods can be returned with a return reason captured in the document
Return purchase order creation Delivery due list for purchase orders Confirmation of picking Goods issue Manual review of pending credits
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
All information for follow-on FI functions is provided – invoice reduction, rejection, cancellation, and so on
Customer
35
Inventory & Basic Warehouse Management Physical Inventory - Inventory Count and Adjustment The process begins with the generation of the required inventory count sheets. Materials can be blocked here for posting during the physical inventory. Once the inventory sheets are printed out, the actual physical inventory count is realized for the given materials. Afterwards, the count result is entered in the system and any discrepancies against the system quantities are reviewed. The inventory may be recounted until final counts are accepted and inventory differences are posted.
Key process steps
Business benefits
Ÿ Create physical inventory documents Print physical inventory documents
T Ÿransparent view on the stocks currently available
Execute physical count or recount
Efficient processing of inventory adjustments
Enter physical count List and post physical count differences
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
Customer
36
SAP Best Practices for Scope Coverage in 2015: On-premise edition, Optimized Order to Cash SAP BEST PRACTICES FOR SAP S/4HANA ON PREMISE EDITION Streamlined Procure to Pay Accelerated Plan to Product
Optimized Order to Cash Enhanced Request to Service *) Core Human Resources *) Core Finance
Analytics
Order and Contract Management
Sales Order Management and Processing (S/4HANA) • Sales Processing using ThirdParty with Shipping Notification • Sell from Stock • Free of Charge Delivery • Sales Quotation • Sales Order Processing for Prospect • Sales Processing using ThirdParty without Shipping Notification • Sales of Nonstock Item with Order specific Procurement
*) SAP Best Practices not in 1511 on-premise scope
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
• Returnables Processing • Free Goods Processing • Sales Order Processing with Customer Down Payment • Sales Period End Closing Operations • Credit Memo Processing • SEPA Direct Debit handling in SD • Sales Order Processing with Collective Billing
Billing and Invoicing (S/4HANA) • Debit Memo Processing
Claims, Returns, and Refund Management • Customer Returns
Legend:
Inventory & Basic Warehouse Management
Receivables Processing
Basic Warehouse Management (S/4HANA)
Accounts Receivable (S/4HANA)
• Stock Handling - Rework, Scrap, Blocked Stock
• Accounts Receivable
• Return to Vendor • Physical Inventory - Inventory Count and Adjustment
Business Priority
E2E Solution
Integration
Solution Capability • SAP Best Practices
Customer
37
Order and Contract Management Sales processing using third-Party with Shipping Notification In third-party order processing, your company does not deliver the items requested by a customer. Instead, you pass the order along to a third-party vendor who then ships the goods directly to the customer and bills you. The standard sales order automatically creates a purchase requisition for the materials to be delivered by the third-party vendor. The vendor sends a shipping notification. After that a statistical goods receipt is posted. The incoming invoice from the vendor updates the billing quantity, so that a customer billing document can only be created once the vendor has entered the invoice.
Key process steps Create third-party sales order Convert purchase requisitions to purchase order Approve purchase orders Post statistical goods receipt Enter vendor invoice Create billing document Convert purchase requisitions to purchase order Approve purchase orders Post statistical goods receipt Enter vendor invoice Create billing document © 2015 SAP SE or an SAP affiliate company. All rights reserved.
Business benefits Reduces stock and cost, increases efficiency Hands over the customer’s requirements directly to external supplier Invoices from trader to customer bases on quantities from supplier invoice Fulfills customer’s requirements despite material shortage
Customer
38
Order and Contract Management Sell from Stock The process starts with the creation of a customer and standard sales order. Depending on the customer and the material, various special events take place during order entry, such as customer or material pricing. If enough material exists in the required storage location, the process proceeds normally. If not, a stock movement takes place. Picking slips are generated to stage the product for shipment to the customer. Once picked, the physically shipped quantity must be registered in the system to ensure that there are no differences between the sales order and the delivery document. After the completion of picking, the shipping specialist relieves the inventory. This inventory relief is the actual recording of the physical quantity that is being shipped to the customer. The cost of goods sold is recorded in financial accounting. Once the inventory is relieved, the delivery can be invoiced. The revenue and the cost of goods sold is recorded in management accounting. Key process steps Create sales order Print order confirmation Create delivery Execute picking Post goods issue Create billing document
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
Business benefits When an order is entered, an availability check is performed and a shipping point is determined automatically A billing document is created and postings to FI and CO are made
Customer
39
Order and Contract Management Free of Charge Delivery A unique sales order type is created that is non-billing relevant. The order is confirmed based on the availability of goods. A delivery is created. The goods are then picked, confirmed, and delivered to the customer.
Key process steps
Business benefits
Create sales order with free of charge items
System integrated Free of Charge sales order processing
Execute picking post goods issue Execute picking Post goods issue
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
Customer
40
Order and Contract Management Sales Quotation The process starts when a request for quotation (RFQ) is received from a customer. A quotation is then created in the SAP system. After that, the customer can either accept or reject the quotation.
Key process steps
Business benefits
Create quotation
You can assure your business partners that you will deliver a certain product configuration and quantity at a specific time and price
Send quotation to customer
During sales order processing, the sales employee can use a variety of sales functions and special quotation functions
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
Customer
41
Order and Contract Management Sales Order Processing for Prospect In this scope item, you process sales order documents without having a customer master record for the prospect available at the beginning of the order process. A dummy customer is used when your sales order processors need to investigate an order for a prospect. The sales order is saved, but remains incomplete until a valid customer account number is entered in the sales order. This function is particularly useful for companies that take phone orders. For example, a prospect calls and requests pricing and information on a catalog item. The internal sales representative can build the entire order without needing an account number until the end. Your external sales representative can ask the prospect for the data needed to create the customer master record (such as asking for name and address). The customer account number - part of the customer master record - is assigned to the sales order, replacing the dummy customer entry. Key process steps Create sales order without having the customer’s account number Create customer master record Assign customer number to sales order Create delivery Execute picking Post goods issue Create billing document
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
Business benefits Sales order processing without the customer’s account number Sales order entry with material determination
Customer
42
Order and Contract Management Sales Processing using Third-Party without Shipping Notification In third-party order processing, your company does not deliver the items requested by a customer. Instead, you pass the order along to a third-party vendor who then ships the goods directly to the customer and bills you. The standard sales order automatically creates a purchase requisition for the materials to be delivered by the third-party vendor. The incoming invoice from the vendor updates the billing quantity, so that the customer billing document can only be created after entering the invoice from the vendor.
Key process steps
Business benefits
Create third-party sales order Convert purchase requisition to purchase order Approval of purchase order Enter vendor invoice Create billing document
Reducing stock and cost, increasing efficiency
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
Handover of customer’s requirements directly to external supplier Invoice from trader to customer bases on quantities from supplier invoice Fulfillment of customer’s requirements despite material shortage
Customer
43
Order and Contract Management Sales of Non-stock Item with Order specific Procurement In this scope item, a customer orders a material that is currently not in stock. The material is therefore procured from an external supplier. During sales order creation, a purchase requisition is generated. In the next step, the purchase requisition is converted into a purchase order for the supplier. The goods receipt is created on customer and special stock. The delivery and the customer invoice follow from here. Finally, the vendor invoice for the goods receipt is created.
Key process steps Create sales order Convert purchase requisitions to purchase order Approve of purchase orders Post goods receipt Enter vendor invoice Process outbound delivery Post goods issue Create billing document
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
Business benefits Hands over customer’s requirements directly to external supplier Sends material from external supplier to trader. The trader stays in charge for the complete delivery process. Fulfills customer’s requirements despite material shortage
Customer
44
Order and Contract Management Returnables Processing When you create a standard sales order, the delivery is automatically created based on this sales order. During the pick and ship steps of this process, a pallet (returnable packaging) is added to the delivery during the pick and ship steps of the process. During the billing step, pallets can be returned using a pallet return order with pallet return delivery and goods receipt, or a pallet return delivery without reference and goods receipt.
If a customer does not return the pallets, a debit memo request can be issued. Triggered by billing, the system issues the debit memo based on the debit memo request. Once done, you synchronize the consignment stock quantity and value, then post a manual goods issue for the unreturned pallet. Key process steps Create sales order Create delivery Execute picking Add returnable packaging to deliveries Create returnable packaging return order Post goods receipt for returnable packaging Debit unreturned packaging Post goods issue for unreturned packaging
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
Business benefits The process comprises the management of returnables using the ERP returnable packaging logistics function Tracking of returnables
Customer
45
Order and Contract Management Free Goods Processing The process starts with the creation of a customer's standard sales order. A free goods condition record is created for the used material. The customer receives a certain amount of free goods depending on the ordered quantity. If enough material does not exist in the required storage location, a stock movement takes place. Picking slips are generated and sent to the shipping specialist to stage the product for shipment to the customer. Once picked, the physically shipped quantity is registered in the system to ensure that there are no differences between the sales order and the delivery document. If there are differences, this can be documented to ensure correct postings. After the completion of picking, the shipping specialist systematically relieves the inventory. This relief of inventory is the actual recording of the physical quantity that is being shipped to the customer. This results in the recording of the cost of goods sold in financial accounting. Once the inventory has been relieved, the delivery can be invoiced and the revenue, together with the cost of goods sold, is recorded in management accounting. This step signifies the end of the business transaction in Sales and Distribution. As a final step, invoices are posted, customer statements are prepared and printed, and the incoming payments are recorded, and then cleared to ensure that the open customer account balance is reconciled. Key process steps Create sales order Print order confirmation Create delivery Execute picking Post goods issue Create billing document
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
Business benefits Upon order entry, an availability check is performed and a shipping point is determined automatically Inclusive free goods are determined automatically A billing document is created and postings to FI and CO are made
Customer
46
Order and Contract Management Sales Order Processing with Customer Down Payment In this process, you create requests for down payment, record the receipt of the down payment, and create a final invoice after the deduction of the down payment received and a receipt of the final amount due on the invoice. The process uses the billing plan functionality in Sales and Distribution. The integrated process allows maintenance of proper document flow between the sales and financial transactions.
Key process steps Create sales order Remove billing block Create billing document Post down payment Create delivery Execute picking Post goods issue Create billing document and down payment clearing
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
Business benefits
System integrated sales order processing with customer down payment
Customer
47
Order and Contract Management Sales Period End Closing Operations Several periodic activities can be reviewed including (but not limited to): Review Blocked Sales Orders: For sales orders that fail the credit check, you review these blocked sales orders and resolve any credit issues. Review Incomplete Sales Orders: This activity displays a list of all incomplete documents based on the specified selection criteria. Review Sales Documents Blocked for Delivery: This activity shows sales orders that are on credit hold that require release by the credit department.
Key process steps Review blocked sales orders Review incomplete sales orders Review sales documents blocked for delivery Review sales documents due for delivery Review log of collective delivery creation Review incomplete SD documents (deliveries) Review outbound deliveries for goods issue Review sales documents blocked for billing Review billing due list Review log of collective invoice creation Review list blocked (for accounting) billing documents
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
Business benefits Provides a SD periodic activities overview. Supports appropriate processing of due documents as part of month end closing.
Customer
48
Order and Contract Management Credit Memo Processing A credit memo request is created with the amount to be credited, and placed on a billing block for review. It must then be released to become billing relevant, and appear on the billing due list. The periodic billing process creates a credit memo to be sent to the customer, and posts an accounting document.
Key process steps
Business benefits
Create credit memo request
System integrated credit memo processing
Remove billing block (review credit memo request) Create credit memo
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
Customer
49
Order and Contract Management SEPA Direct Debit handling in SD This scope item describes the SD standard process as regards SEPA payment terms. The business process encompasses the check of the SEPA mandate during sales order processing, including exception handling if the SEPA mandate does not exist. During the SEPA implementation phase, the internal sales representative regularly checks sales orders with missing SEPA mandates and coordinates the exception handling: If the SEPA mandate is received before billing creation, the account receivable accountant maintains the relevant SEPA mandate. Alternatively, payment terms that are not SEPA relevant can be agreed with the customer for this particular order. In this case, the internal sales representative changes the sales order accordingly. After performance of exception handling, billing documents can be created. This step signifies the end of the business transaction in SD. The incoming customer payment is handled within accounts receivables.
Key process steps Create sales order including check, if SEPAmandate exists Create delivery Execute picking Post goods issue Handle exceptions for missing SEPAmandate Create billing document
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
Business benefits If a SEPA relevant customer sales order is created, this special order type forces to define a SEPA mandate, whenever the SEPA payment term is used.
Customer
50
Order and Contract Management Sales Order Processing with Collective Billing This scope item describes how to use the standard sales processing (sell-from-stock) for mass processing. The process starts with the creation of several standard sales orders. In periodic intervals, all sales orders due to deliver and with availability of the material are selected and deliveries are created. For optimization of shipping costs, all sales orders that are delivered to the same customer are packed into one delivery document. For Lean Warehouse Management storage locations, Warehouse Management transport orders and picking documents for picking are automatically created. The materials are picked and the actual amount of picking is noticed in the delivery. In the next step, goods issues are posted and the materials can leave the warehouse. In periodic intervals, all deliveries are selected for billing. For cost optimization, all deliveries due to invoice to the same customer are packed into one invoice document. The revenue is posted to accounting. Key process steps
Business benefits
Cost optimization in collecting customer orders due to deliver to the same customer in one delivery via a collective run
Create sales orders Create deliveries via collective run Execute picking Post goods issue Create billing documents via collective run
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
Cost optimization in collecting deliveries to the same customer for one invoice via a collective run
Customer
51
Order and Contract Management Debit Memo Processing A debit memo request is created with the amount to be debited, and placed on a billing block for review. It is then released to become billing relevant, and appear on the billing due list. Periodic billing process creates a debit memo to be sent to the customer, and posts an accounting document.
Key process steps
Business benefits
Create debit memo request
System integrated debit memo processing
Remove billing block (review debit memo request) Create debit memo
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
Customer
52
Order and Contract Management Customer Returns The process starts with a customer request for authorization to return materials to the plant for credit, referred to as a Return Material Authorization (RMA). The request is approved, and a return sales order is created with reference to the original invoice for the goods. An RMA document is printed, and forwarded to the customer to be attached to the incoming goods. The goods are shipped back, a return delivery is created with reference to the RMA, and the material is received into return stock.
The return stock location is set to be non-MRP relevant. The goods are inspected, resulting in a disposition to either return them to stock, or scrap. A credit memo is created from the billing run and posted to the customer's account. Key process steps
Business benefits
Create sales order
System integrated processing of customers returns and complaints
Create return delivery Create billing document
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
Customer
53
Inventory & Basic Warehouse Management Stock Handling - Rework, Scrap, Blocked Stock This scope item covers the returns from customer, rework from production, and other logistic business processes. The target group is warehouse clerks.
Key process steps
Business benefits
Customer returns scrapping: goods issue to CO-PA General stock scrapping: goods issue to cost center Block material - stock transfer unrestricted to blocked Unblock material - stock transfer blocked to unrestricted Unblock material - stock transfer blocked to quality inspection stock
Support of process-related transfer postings
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
Support of legally required transfer postings
Customer
54
Inventory & Basic Warehouse Management Return to Vendor The return to vendor process begins with a requirement to return an item to a vendor. You first request a Returns Material Authorization (RMA) from the vendor, which is entered into a text field in the return purchase order. The buyer creates a return purchase order in the system. The return purchase order is similar to a standard purchase order except the return flag that sets up the return delivery to enable shipment of the items back to the vendor.
The return purchase order confirmation goes to the vendor and the return delivery is sent to the shipping department where the items are picked and shipped back along with a delivery note. When the shipping department creates the delivery the items are withdrawn from stock. A credit memo is generated which transfers the liability to the vendor.
Key process steps
Business benefits
Goods can be returned with a return reason captured in the document
Return purchase order creation Delivery due list for purchase orders Confirmation of picking Goods issue Manual review of pending credits
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
All information for follow-on FI functions is provided – invoice reduction, rejection, cancellation, and so on
Customer
55
Inventory & Basic Warehouse Management Physical Inventory / Inventory Count & Adjustment The process begins with the generation of the required inventory count sheets. Materials can be blocked here for posting during the physical inventory. Once the inventory sheets are printed out, the actual physical inventory count is realized for the given materials. Afterwards, the count result is entered in the system and any discrepancies against the system quantities are reviewed. The inventory may be recounted until final counts are accepted and inventory differences are posted.
Key process steps
Business benefits
Ÿ Create physical inventory documents Print physical inventory documents
T Ÿransparent view on the stocks currently available
Execute physical count or recount
Efficient processing of inventory adjustments
Enter physical count List and post physical count differences
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
Customer
56
Receivables Processing Accounts Receivable With Accounts Receivables, you can manage your open receivables invoices that are automatically created from sales processes. You can manage and control open items with various analytical tools to optimize accounts receivables handling.
Key process steps
Business benefits
Manage and complete customer master data
Accounts Receivable is an integral part of sales management
Create invoices from logistics
Accounts Receivable postings are recorded directly in the General Ledger
Automatically reconcile open invoices with incoming payments
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
Customer
57
SAP Best Practices for Scope Coverage in 2015: On-premise edition, Core Finance SAP BEST PRACTICES FOR SAP S/4HANA ON PREMISE EDITION Streamlined Procure to Pay Accelerated Plan to Product
Entity Close (S/4HANA)
Accounts Payable (S/4HANA) • Accounts Payable
Optimized Order to Cash Enhanced Request to Service *) Core Human Resources *) Core Finance
Accounts Receivable (S/4HANA)
General Ledger (S/4HANA) • Accounting and Financial Close
Inventory Accounting (S/4HANA)
• Credit Management • Accounts Receivable
• Inventory Valuation for Year End Closing
Asset Accounting (S/4HANA)
Revenue and Cost Accounting (S/4HANA)
• Asset Accounting
• Overhead Cost Accounting
Accounting and Financial Close
Cost Management (S/4HANA) • Internal Order Actual
Product Cost Management (S/4HANA) • Standard Cost Calculation
CORE INDUSTRY PRIORITIES
Profitability and Cost Analysis (S/4HANA)
CROSS ENTERPRISE PRIORITIES
• Plant - Period End Closing • Profitability & Cost Analysis
Cost Management and Profitability Analysis
Analytics
*) SAP Best Practices not in 1511 on-premise scope
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
Legend:
Business Priority
E2E Solution
Integration
Solution Capability • SAP Best Practices
Customer
58
Accounting and Financial Close Accounting and Financial Close The central task of General Ledger accounting is to provide a comprehensive picture of external accounting and accounts. By recording all business transactions - primary postings and settlements from internal accounting - in a software system that is fully integrated with all the other operational areas of a company, you ensure that the accounting data is always complete and accurate. General Ledger Accounting serves as a complete record of all business transactions providing a centralized, up-to-date reference for the rendering of accounts. Actual individual transactions can be checked at any time in real-time processing by displaying the original documents, line items, and transaction figures at various levels such as account information, journals, totals, transaction figures, and balance sheet. Key process steps Posting general ledger account documents Displaying the document journal Displaying G/L balances (list) Carrying out recurring entries Account maintenance: Automatic and manual clearing Day-end closing Month-end closing Year-end closing
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
Business benefits Recording all business transaction ensures complete and accurate accounting data
Customer
59
Accounting and Financial Close Asset Accounting Asset accounting is a subsidiary ledger of the general ledger and is used to manage and document fixed asset transactions in detail. In general ledger accounting, you can update depreciation and changes to asset balance sheet values in asset accounting. You can also make various account assignments to cost accounting for these transactions. Because of the integration in SAP ERP, Asset Accounting (FI-AA) transfers data directly to and from other SAP ERP components. For example, you can post from the Material Management (MM) component directly to FI-AA. When you purchase an asset or produce an asset in-house, you can directly post the invoice receipt or goods receipt, or the withdrawal from the warehouse to assets in the FI-AA component. At the same time, you can pass on depreciation and interest directly to the Financial Accounting (FI) and Cost Accounting (CO) components. From the Plant Maintenance (PM) component, you can settle maintenance activities that require capitalization to assets.
Key process steps Creation of asset master Asset acquisition Asset retirement Asset valuation Month-end closing Year-end closing
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
Business benefits Management of the entire lifetime of an asset, from purchase order or initial acquisition through to retirement Transparent view of asset acquisition Automated, efficient processing Calculation of values for depreciation and interest Depreciation forecast
Customer
60
Accounting and Financial Close Inventory Valuation for Year End Closing This scope item provides users with an example process description that they can use as a template for their own valuation processes. Inventory valuation is performed in accordance with local legislation (such as the German Commercial Code), including settings for the overhead structure, valuation variant, and stock valuation with devaluation based on movement rate.
Key process steps
Business benefits
Stock valuation, using lowest value principle for raw materials, packaging materials, and trading goods Additional devaluation by movement rate Inventory costing for finished and semi-finished products, in accordance with the lowest possible value principle Stock value reporting in the form of a comparison analysis Manual stock value adjustment posting in the financial accounting component
Stock valuation for raw materials, packaging materials, and trading goods based on the lowest possible value
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
Inventory valuation for semi-finished and finished materials based on local requirements for valuation Stock value adjustment
Customer
61
Accounting and Financial Close Accounts Payable With Accounts Payables, you can manage your open payables invoices that are automatically created from purchasing processes. You can manage and control open items with various analytical tools to optimize accounts payable handling. You can process payments automatically, ensure approval of all payments before payment, and monitor payment progress.
Key process steps
Business benefits
Accounts payable are an integral part of the purchasing system
Manage and complete supplier master data Create invoice from logistics Pay invoice Approve payment Optionally forward payment via Financial Services Network (FSN)
Accounts payable postings are recorded directly in the general ledger Payment program can automatically perform bank transfers and down payments Simplified and secure connectivity for transacting with multiple financial institutes
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
Customer
62
Accounting and Financial Close Credit Management The credit worthiness and payment behavior of your business partners has an immediate effect on the business results of your company. Efficient receivables and credit management reduces the risk of financial losses and helps you to optimize business relationships with your business partners. SAP Credit Management supports your company in making early determination of the risk of losses on receivables from your business partners and in efficiently making credit decisions (sometimes automated). SAP Credit Management checks the exposure against the current credit limit for the business partner. In addition to the credit limit check, you can also perform other checks, such as oldest open item, maximum dunning level, or last payment. If the new order is blocked and a workflow starts, the blocked order can be released or rejected. Key process steps
Business benefits
Enter credit limit for new customers
Reduce risk of bad debt Focus on reliable and profitable customers
Edit credit limit for existing customers Enter sales order
Check credit limit Manage blocked orders
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
Faster credit-worthiness check Accelerate the process of checking a customer credit limit Workflow for blocked orders
Customer
63
Accounting and Financial Close Accounts Receivable With Accounts Receivables, you can manage your open receivables invoices that are automatically created from sales processes. You can manage and control open items with various analytical tools to optimize accounts receivables handling.
Key process steps
Business benefits
Manage and complete customer master data
Accounts Receivable is an integral part of sales management
Create invoices from logistics
Accounts Receivable postings are recorded directly in the General Ledger
Automatically reconcile open invoices with incoming payments
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
Customer
64
Accounting and Financial Close Overhead Cost Accounting This scope item covers transaction-based actual postings that are normally used in overhead cost controlling. It describes entering and posting a G/L document with reference to a cost center. Cost center accounting takes the costs incurred in a company and allocates them to the actual subareas that caused them. During period-end closing, these costs are distributed to the cost centers through automatic allocation. By allocating the cost elements to cost centers in overhead cost controlling, you can control your costs and compare plan and actual costs. The plan/actual comparison at the end of the period helps you to plan, control, and monitor cost behavior. It also supports various analyses of variances, such as volume variance, price variance, input variance, and quantity variance. Overhead cost controlling is also a prerequisite for further allocating overhead costs to cost objects (CO-PC), which enables you to conduct a period-specific profitability analysis.
Key process steps For primary costs, the related cost center is posted Cost center update with the correct values Posting of statistical key figures Allocation of primary and secondary costs using an assessment cost element Maintaining the controlling version would need a self-config UI Comparison between actual and planned costs for the cost center Perform cost planning for various cost elements for cost centers Assess shared expenses Record statistical key figures Analyze planned and actual figures
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
Business benefits Transparent view for an account of a cost center Processing of a G/L document for various purposes Availability of steps required for preparing periodic and year end activities Necessary steps for preparation of periodic and year end activities
Customer
65
Cost & Profitability Management Internal Order - Actual Various internal projects consume resources and incur costs or expenses, usually when developing future products. The product lines are generally determinable for such projects. The costs of these projects must be tracked for various purposes such as cost control, return on investment calculations, tax reporting, and so on. This process uses SAP's internal order functionality to track costs and status. For every R&D project undertaken, an internal order is created using the R&D order type. Cost planning is performed on this order. When the project is approved, the order is released. Costs incurred for the project are posted on the order. Periodically, the costs collected on the order are settled to the assigned R&D cost center or to CO-PA (if CO-PA is activated). When the project is complete, and fully settled, the order is closed by setting the appropriate status. For marketing projects, an internal order is created using the marketing order type. Marketing orders are created as statistical orders. Costs are posted to the assigned cost center and as statistical costs to the internal order. The order does not need settlement since the real costs are assigned to the cost center. For other overhead projects, you can create internal orders by using the overhead order type. In this case, a responsible cost center is assigned and internal orders are settled to this cost center. Key process steps
Business benefits
Tracking of planned and actual costs of these projects for cost control, return on investment calculations, tax reporting, and so on
Create internal orders Consumable purchasing Post goods issues to R&D internal order Post general ledger account documents Settle internal orders (actual costs)
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
Transparent view of outstanding orders, cost plan, and actual
Customer
66
Cost & Profitability Management Standard Cost Calculation The standard costs for products are updated as part of the annual operations planning. The costs are entered manually (as the plan costs are not part of the scope at this time). The costing run is created and executed.
Key process steps
Business benefits
Rates are entered manually
The standard costs are calculated annually to reflect the changes in the prices of purchased parts, labor and overhead costs, and bills of materials and operations needed to manufacture the semi-finished and finished goods.
Costing run in created and executed
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
Customer
67
Cost & Profitability Management Plant - Period End Closing Period-end closing in a plant ensures that all costs incurred in production of company activities (such as materials manufactured in-house) are assigned to those activities. The costs are allocated to the respective products in profitability analysis.
Key process steps Run assessment cycles for quality costs Ensure completion of goods movements and production transactions Open new Materials Management periods Execute period-end closing for production orders (overheads, work-in-process calculations, variances calculations, and settlements of production orders) Close completed production orders Data collection for summarization hierarchy (reporting) Run actual assessments of all cost center costs to profitability analysis (CO-PA) Run profitability reports
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
Business benefits Transparent view of production costs for materials manufactured in-house Automated efficient processing
Customer
68
Cost & Profitability Management Profitability and Cost Analysis Profitability Analysis enables you to evaluate market segments. This action can be classified according to products, customers, orders, or any combination of these, or strategic business units, such as sales organizations or profitability segments with respect to your company's profit or contribution margin. After running assessments, the application includes several reports to analyze the data including Market Segment Report and Profit Center analysis.
Key process steps
Business benefits
Generation of settlement rules
Fast period-end closing process
Calculation of work in process (WIP)
Automated efficient processing
Actual settlement project to profitability analysis (CO-PA) Actual assessment to CO-PA
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
Customer
69
SAP Best Practices for Scope Coverage in 2015: On-premise edition, Analytics SAP BEST PRACTICES FOR SAP S/4HANA ON PREMISE EDITION Streamlined Procure to Pay Accelerated Plan to Product
Optimized Order to Cash Enhanced Request to Service *) Core Human Resources *) Core Finance
Analytics
ANALYTICAL CONTENT
• Analytical content for S/4HANA
*) SAP Best Practices not in 1511 on-premise scope
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
Legend:
Business Priority
E2E Solution
Integration
Solution Capability • SAP Best Practices
Customer
70
Analytics Analytical Content for S/4 HANA Deploy SAP S/4HANA operational reporting content embedded in the context of the respective business processes. Jump-start your operational reporting with SAP Best Practices that are tailored specifically to simplify the adoption of SAP S/4HANA.
Key process steps
Business benefits
Design Studio Dashboard for Accounts Payable Manager: AP by aging range / Cash discount usage by company code / Vendor open items by company code
Help business users to get an instant insight into the running business by monitoring business performance in real time
Design Studio Dashboard for Accounts Receivable Manager: AR by aging range / Dispute cases by amount and country or region / Dispute cases by company code* (* prerequisite: SAP Collections and Dispute Management is configured)
Enable users to make better-informed decisions and improve their ability to respond to changing conditions
Design Studio Dashboard for Internal Controller: Cost Center - Plan/Actual Analysis Design Studio Dashboard for Internal Controller: Profit Center - Plan/Actual Analysis
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