SAP S/4HANA: A New ERP Platform

21

About This Book

22

Acknowledgments

23

1 Architecture Challenges of a Modern ERP Solution

27

1.1 Characteristics of a Modern ERP System

28

1.1.1 Even Higher Performance and Scalability

28

1.1.2 Consumer-Grade User Experience

30

1.1.3 Extensible Architecture

31

1.1.4 Intelligent ERP Processes

32

1.1.5 Simplified and Standardized Implementation

32

1.1.6 Cloud and On-Premise Deployment Models

33

1.1.7 Security, Privacy, Compliance, and Data Isolation

35

1.2 SAP S/4HANA Architecture Principles

35

1.2.1 Stable but Flexible Digital Core

36

1.2.2 Simplification with the Principle of One

36

1.2.3 Open for Innovations through Service Orientation

37

1.2.4 Modularization into (Hybrid) Integration Scenarios

38

1.2.5 Cloud First, but Not Cloud Only

39

1.2.6 Semantic Compatibility to Support Evolution with the Least Possible Disruption

40

1.3 Evolving a Cloud ERP System from the Best Possible Origins

40

1.4 Summary

41

2 Technical Architecture Foundation

43

2.1 Virtual Data Model

43

2.1.1 Core Data Services

44

2.1.2 Naming Conventions

44

2.1.3 Structure of the Virtual Data Model

45

2.1.4 Consumption Scenarios

47

2.2 ABAP RESTful Application Programming Model

49

2.2.1 Defining and Developing Business Objects

49

2.2.2 Defining Business Services

56

2.2.3 Runtime Architecture

59

2.3 Summary

66

3 Simplified Experience

67

3.1 User Experience

67

3.1.1 SAP Fiori

67

3.1.2 User Experience Adoption Strategy

68

3.1.3 SAP Fiori Launchpad

69

3.1.4 SAP Fiori Apps

73

3.1.5 SAP Fiori Elements Apps

74

3.2 Search

77

3.2.1 Search Architecture

78

3.2.2 SAP HANA Search Functionality

79

3.2.3 Enterprise Search Extensibility

80

3.3 Summary

82

4 Intelligence and Analytics

83

4.1 Analytics

83

4.1.1 Embedded Analytics Architecture

85

4.1.2 Embedded Analytical Applications

87

4.1.3 Modeling Analytical Artifacts

88

4.1.4 Analytics Extensibility

89

4.1.5 Enterprise Analytics Applications

91

4.2 Machine Learning

92

4.2.1 Machine Learning Architecture

93

4.2.2 Embedded Machine Learning

94

4.2.3 Side-by-Side Machine Learning Architecture

95

4.2.4 Machine Learning in SAP S/4HANA Applications

97

4.3 Intelligent Situation Handling

100

4.3.1 Example: Contract Is Ready as Source of Supply

100

4.3.2 Technical Background

102

4.3.3 Custom Use Cases

104

4.3.4 Message-Based Situation Handling

105

4.3.5 Intelligent Situation Automation

105

4.3.6 User Experience

108

4.3.7 Use Cases

111

4.4 Summary

112

5 Extensibility

113

5.1 Key User Extensibility

113

5.1.1 Stability Criteria for Extensibility

114

5.1.2 Use Cases across the Software Stack

116

5.1.3 Lifecycle Management

122

5.2 In-Stack Developer Extensibility

123

5.3 Side-by-Side Extensions

126

5.3.1 Introduction to Cloud-Native Applications

126

5.3.2 SAP BTP and Programming Models

130

5.3.3 Integrating with SAP S/4HANA Using the SAP Cloud SDK

131

5.3.4 API Consumption with the SAP Cloud SDK

132

5.3.5 Business Event Consumption in Extensions

136

5.4 Summary

136

6 Integration

139

6.1 SAP S/4HANA Integration Interface Technologies

139

6.1.1 Interface Technologies Overview

139

6.1.2 SAP S/4HANA API Strategy

141

6.2 SAP API Business Hub

141

6.3 Interface Monitoring and Error Handling

142

6.4 Communication Management in SAP S/4HANA Cloud

145

6.4.1 Communication Scenario

147

6.4.2 Communication User

147

6.4.3 Communication System

148

6.4.4 Communication Arrangement

148

6.4.5 Calling Inbound Services with User Propagation

148

6.5 Cloud Connector

149

6.5.1 Cloud Connector Principles

149

6.5.2 RFC Communication with SAP S/4HANA Cloud

151

6.6 Process Integration Technology

151

6.7 Event-Based Integration

154

6.7.1 SAP Event Mesh

154

6.7.2 Business Events Architecture

155

6.7.3 Business Events in SAP S/4HANA

156

6.7.4 Event Channels and Topic Filters

157

6.8 Data Integration

158

6.8.1 CDS-Based Data Extraction

158

6.8.2 Data Replication Framework

161

6.8.3 SAP Master Data Integration

162

6.9 Summary

163

7 Data Protection and Privacy

165

7.1 Compliance Baseline

166

7.2 Definitions and Principles

166

7.2.1 Basics in SAP S/4HANA

168

7.2.2 Data Subject Rights

169

7.2.3 Technical and Organizational Measures

171

7.3 Summary

173

8 Master Data

177

8.1 Product Master

177

8.1.1 Product Master Data Model

178

8.1.2 Product Hierarchy

182

8.1.3 Data Migration

184

8.1.4 Product SOAP Service API

185

8.1.5 Product Master Extensibility

186

8.1.6 Self-Service Configuration

187

8.2 Bill of Materials, Characteristics, and Configurations

187

8.2.1 Bill of Materials

188

8.2.2 Classification System

189

8.2.3 Variant Configuration

190

8.2.4 Variant Classes

192

8.2.5 Super BOM

192

8.2.6 BOM with Class Items

193

8.2.7 Variant Configuration Profiles

193

8.2.8 Object Dependencies in Variant Configuration

193

8.2.9 User Interface and Grouping

194

8.2.10 Extensibility

194

8.2.11 High-Level and Low-Level Configuration

194

8.2.12 Embedded Analytics for Classification and Configuration Data

195

8.3 Business Partners

197

8.3.1 Architecture of Business Partner Master Data

198

8.3.2 SAP S/4HANA System Conversion Scenarios

203

8.3.3 Data Protection and Policy

205

8.3.4 Extensibility

205

8.3.5 Business Partner APIs

206

8.4 Summary

207

9 Sales

209

9.1 Architecture Overview

209

9.2 Sales Documents Structure

211

9.3 Authorizations

212

9.4 Sales Inquiries and Sales Quotations

213

9.5 Sales Order Processing

214

9.6 Sales Contracts

215

9.7 Sales Scheduling Agreements

216

9.8 Claims, Returns, and Refund Management

217

9.9 Billing

217

9.10 Sales Monitoring and Analytics

219

9.11 Pricing

221

9.12 Integration

223

9.13 Summary

224

10 Service Operations

225

10.1 Architecture Overview

225

10.2 Business Objects and Processes in Service Operations

226

10.2.1 Field Service

227

10.2.2 In-House Repair

228

10.2.3 Service Contracts

228

10.2.4 Solution Business

229

10.2.5 Interaction Center

229

10.3 Master Data and Organizational Model

229

10.4 Data Model and Business Transactions Framework

231

10.4.1 Business Transactions Framework

231

10.4.2 Data Model

231

10.4.3 Transaction Type and Item Category

233

10.4.4 Common Functions for Service Transactions

233

10.4.5 Virtual Data Model

234

10.4.6 Public APIs

234

10.5 Integration

235

10.5.1 Data Exchange Manager

235

10.5.2 Backward Integration

236

10.5.3 Integration with SAP Field Service Management

237

10.5.4 User Interface Technology

237

10.6 Summary

238

11 Sourcing and Procurement

239

11.1 Architecture Overview

240

11.2 Procurement Processes

242

11.2.1 Direct Procurement

243

11.2.2 Indirect Procurement

244

11.3 Business Objects in Procurement

244

11.4 Central Procurement

246

11.5 Product Sourcing

249

11.6 Enterprise Contract Management

250

11.7 APIs and Integration

252

11.8 Analytics

257

11.9 Innovation and Intelligent Procurement

258

11.10 Summary

259

12 Logistics and Manufacturing

261

12.1 Architecture Overview

262

12.2 Organizational Units

264

12.3 Master Data Objects

265

12.4 Transactional Business Objects

266

12.5 Calculated Business Objects, Engines, and Process Controls

269

12.5.1 Inventory

269

12.5.2 Available-to-Promise

271

12.5.3 Material Requirements Planning

276

12.5.4 Demand-Driven Material Requirements Planning

278

12.5.5 Kanban

279

12.5.6 Just-in-Time Processing

280

12.5.7 Predictive Material and Resource Planning

283

12.5.8 Capacity Planning

285

12.5.9 Production Planning and Detailed Scheduling

286

12.6 Cross-Functions in Logistics and Manufacturing

286

12.6.1 Batch Management

287

12.6.2 Quality Management

287

12.6.3 Handling Unit Management

290

12.6.4 Serial Number Management

291

12.6.5 Inter-/Intracompany Stock Transport

292

12.6.6 Value Chain Monitoring Framework

292

12.7 Logistics Integration Scenarios

292

12.7.1 Warehouse Management

293

12.7.2 Manufacturing Execution Systems

293

12.8 Summary

293

13 Extended Warehouse Management

295

13.1 Architecture Overview

295

13.2 Organizational Structure

297

13.3 Master Data

298

13.4 Stock Management

299

13.5 Application Components

301

13.6 Monitoring and Reporting

303

13.7 Process Automation

304

13.8 User Interface

305

13.9 Technical Frameworks

305

13.10 Warehouse Automation

306

13.11 Summary

307

14 Finance, Governance, Risk, and Compliance

309

14.1 Finance Architecture Overview

311

14.2 Accounting

313

14.2.1 General Ledger

316

14.2.2 Fixed Asset Accounting

316

14.2.3 Inventory Accounting

318

14.2.4 Lease Accounting

320

14.2.5 Service and Sales Accounting

321

14.2.6 Group Reporting

325

14.2.7 Financial Closing

331

14.3 Tax and Legal Management

333

14.4 Financial Planning and Analysis

335

14.4.1 Budgetary Accounting

335

14.4.2 Predictive Accounting

337

14.4.3 Financial Planning

341

14.4.4 Margin Analysis

346

14.4.5 Overhead Cost

349

14.4.6 Production Cost

351

14.5 Payables Management

354

14.5.1 Supplier Invoicing

354

14.5.2 Open Payables Management

354

14.5.3 Automatic Payment Processing

354

14.6 Receivables Management

356

14.6.1 Open Receivables Management

357

14.6.2 Credit Evaluation and Management

361

14.6.3 Customer Invoicing

363

14.6.4 Dispute Resolution

365

14.6.5 Collections Management

366

14.6.6 Convergent Invoicing

367

14.6.7 Contract Accounting

372

14.7 Treasury Management

376

14.7.1 Advanced Payment Management

376

14.7.2 Bank Integration Using SAP Multi-Bank Connectivity

380

14.7.3 Connectivity to Payment Service Providers and Payment Gateways

381

14.7.4 Cash Management

382

14.7.5 Treasury and Risk Management

386

14.8 Central Finance

390

14.8.1 Replication

392

14.8.2 Mapping

395

14.8.3 Accounting Views of Logistics Information

396

14.8.4 Temporary Postings

398

14.8.5 Centralized Capabilities

401

14.8.6 Cross-System Process Control

401

14.9 Finance Extensibility

405

14.10 Governance, Risk, and Compliance

405

14.10.1 Overview of SAP GRC Solutions

406

14.10.2 SAP GRC Solutions and SAP S/4HANA Integration

408

14.11 Summary

413

15 Localization in SAP S/4HANA

415

15.1 Document and Reporting Compliance

415

15.1.1 Architecture

416

15.1.2 Outlook

420

15.2 Localization as a Self-Service for SAP S/4HANA Cloud

421

15.2.1 Components of Localization as a Self-Service

421

15.2.2 Extensibility Scenario Guides and the Community

422

15.3 Summary

423

16 Scoping and Configuration

427

16.1 Reference Content

427

16.2 SAP Central Business Configuration

429

16.2.1 Organizational Setup

430

16.2.2 Business Processes

431

16.2.3 Business Adaptation Catalog

432

16.2.4 Constraints

435

16.2.5 From Scoping to Deployment

436

16.2.6 Reference Configuration Content Updates

438

16.2.7 Localization of Business Configuration

439

16.2.8 Scope-Dependent Technical Objects

440

16.3 Summary

440

17 Identity and Access Management

441

17.1 Architecture Overview

441

17.1.1 Identity Management

442

17.1.2 Authentication

443

17.1.3 ABAP Authorization Concept

444

17.1.4 Identity and Access Entities and Their Relationships

445

17.1.5 Developer Extensibility

448

17.1.6 Identity and Access Management Tools

449

17.1.7 SAP Fiori Pages and Spaces

451

17.2 Managing Users, Roles, and Catalogs

452

17.2.1 Communication Arrangements

453

17.2.2 PFCG Roles and Business Catalogs

453

17.2.3 Management of Users, Roles, and Catalogs by Customers

454

17.2.4 Lifecycle Changes of SAP-Delivered Roles and Catalogs

455

17.2.5 Auditors

456

17.3 Summary

458

18 Output Management

459

18.1 Architecture Overview

459

18.2 Printing

460

18.3 Email

462

18.4 Electronic Data Interchange

463

18.5 Form Templates

463

18.6 Output Control

464

18.7 Summary

467

19 Cloud Operations

469

19.1 SAP S/4HANA Cloud Landscape

469

19.2 Data Centers

472

19.3 Multitenancy

474

19.3.1 System Architecture of SAP S/4HANA

475

19.3.2 Sharing the SAP HANA Database System

476

19.3.3 Sharing of ABAP System Resources

477

19.3.4 Table Sharing Architecture in Detail

478

19.4 Software Maintenance

480

19.4.1 Maintenance Events

481

19.4.2 Blue-Green Deployment

481

19.5 Built-In Support

483

19.5.1 Support Journey without Built-In Support

483

19.5.2 Built-In Support Architecture

484

19.5.3 Comparison of Support Interactions

486

19.6 Summary

488

20 Sizing and Performance in the Cloud

489

20.1 Performance-Optimized Programming

489

20.1.1 Minimal Number of Network Round Trips and Transferred Data Volume

490

20.1.2 Content Delivery Networks

492

20.1.3 Buffers and Caches

492

20.1.4 Nonerratic Performance

493

20.2 Sizing

493

20.2.1 Sizing SAP S/4HANA Cloud, Public Edition

494

20.2.2 Sizing for SAP S/4HANA Cloud, Private Edition

496

20.3 Elasticity and Fair Resource Sharing for SAP S/4HANA Cloud, Public Edition

497

20.3.1 Elastic Scalability

497

20.3.2 Dynamic Capacity Management

498

20.4 Sustainability

500

20.5 Summary

501

21 Cloud Security and Compliance

503

21.1 Network and Data Security Architecture

503

21.1.1 Access Levels

504

21.1.2 Resource and Data Separation

505

21.1.3 Resource Sharing

506

21.1.4 Data Security and Data Residency

506

21.1.5 Business Continuity and Disaster Recovery

506

21.2 Security Processes

506

21.3 ABAP Application Server Security

508

21.4 Certification and Compliance

508

21.4.1 SAP Operations

509

21.4.2 SAP Software Development

509

21.5 Summary

510

The Authors

513

Editors

513

Authors

514