S4H 1511

(1)

SAP Best Practices for SAP S/4HANA

Scope 1511 –

On-premise edition

(2)

Enterprise Management Product Map

Streamlined Procure to Pay Accelerated Plan to Product Enhanced Request to Service Optimized Order to Cash Core Finance Supplier Management Sourcing and Contract Management

Operational Procurement Inventory and Basic Warehouse Management Invoice and Payables Management

Production Engineering and Planning

Production Operations and Execution

Inventory and Basic Warehouse Management Product Development and Project Control

Maintenance Management

Order and Contract Management Inventory and Basic Warehouse Management Receivables Processing

Service Master Data Management

Service Management Service Parts Management

Core Human Resources

Accounting and Financial Close

Cross Application Time Management

Service Agreement Management

Cost Management and Profitability Analysis Quality Management and

(3)

SAP Best Practices for

On-premise edition 2015/11

Value Proposition

• 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.

• The Guided Configuration allows a simplier configuration, automated testing and life-cycle management to support agile adoption of continuous innovation even after go-live.

• 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.

• SAP Best Practices for Migration, complements the foundation and offers customers a non-disruptive, simplified transition to SAP S/4HANA.

• SAP Best Practices offers integration to SAP cloud solutions like SuccessFactors Employee Central and Ariba.

Business Benefits

• Reduce cost of operations with using standardizing processes delivered by SAP Best Practices

• Manage multiple geographies, divisions, subsidiaries, ledgers with global and country specific content

• Drive operational efficiencies and comply with regulations

• Empower business and IT users with guided

configuration allow a first-hand experience of SAP S/4HANA with instant guided trials

• Update and change customer specific configuration using S/4 HANA life cycle management tools

(4)

SAP Best Practices for

Scope Coverage in 1511: On-premise edition

SAP BEST PRACTICES FOR SAP S/4HANA ON PREMISE EDITION

Optimized Order to Cash Streamlined Procure to Pay Accelerated Plan to Product Enhanced Request to Service *) Accounting and Financial Close

Cost Management and Profitability Analysis Cross Application Time

Management Core Finance Core Human Resources *) COREINDUSTRY PRIORITIES CROSSENTERPRISE PRIORITIES Supplier Information and

Master Data

Sourcing and Contract Management

Inventory & Basic

Warehouse Management

Order and Contract Management

Inventory & Basic

Warehouse Management Receivables Processing Manufacturing

Operations

Inventory & Basic

Product Development and Project Control Production Engineering

and Planning

Service Master Data Management

Operational Procurement

Invoice and Payables Management

Service Management Service Parts Management

Service Agreement Management

Employee Central Connectivity

*) SAP Best Practices not in 1511 on-premise scope Legend: Business Priority E2E Solution Integration Solution Capability • SAP Best Practices Analytics

ANALYTICAL CONTENT Maintenance Management

Quality Management and Compliance

(5)

SAP Best Practices for

Scope Coverage in 2015: On-premise edition, Streamlined Procure to Pay

Optimized Order to Cash Streamlined Procure to Pay Accelerated Plan to Product Enhanced Request to Service *) Core Finance Core Human Resources *)

Supplier Information and Master Data

Inventory & Basic

Warehouse Management Operational

Procurement

• Procurement & Consumption of Consigned Inventory • Procurement of Direct

Materials

• Procurement Contract • Accounts Payable

Operational Contract Management (S/4HANA) Purchase Order Processing (S/4HANA) Service Purchasing (S/4HANA) Purchase Order Collaboration (S/4HANA)

• Integration Ariba – Business • External Procurement of Third-party Resources Invoice Collaboration (S/4HANA) Accounts Payable (S/4HANA)

• Integration Ariba – Business Network Integration

• Stock Handling - Rework, Scrap, Blocked Stock • Return to Vendor

• Physical Inventory - Inventory Count and Adjustment

Basic Warehouse

(6)

SAP Best Practices for

Scope Coverage in 2015: On-premise edition, Accelerated Plan to Product

*) SAP Best Practices not in 1511 on-premise scope Legend: Business Priority E2E Solution Integration Solution Capability • SAP Best Practices

Analytics

Maintenance Management Inventory & Basic

Product Development and Project Control

• MaketoStock Production -Discrete Industry

• MaketoStock Production -Process Industry

• Rework Processing (Stock-Manufactured Material) • Rework Processing

(Work-in-Process)

• Material Requirements Planning

Material Requirements Planning (S/4HANA) Production Processing (S/4HANA) Basic Subcontracting (S/4HANA) • Production Subcontracting -External Processing Basic Warehouse Management (S/4HANA) Production Operations and Execution Production Engineering and Planning Repetitive Manufacturing (S/4HANA) • Repetitive Manufacturing

(7)

SAP Best Practices for

Scope Coverage in 2015: On-premise edition, Optimized Order to Cash

Optimized Order to Cash Streamlined Procure to Pay Accelerated Plan to Product Enhanced Request to Service *) Core Finance Core Human Resources *) • Returnables Processing • Free Goods Processing • Sales Order Processing with

Customer Down Payment • Sales Period End Closing • Sales Processing using

Third-Party with Shipping Notification • Sell from Stock

• Free of Charge Delivery • Sales Quotation

Billing and Invoicing (S/4HANA)

• Debit Memo Processing

Claims, Returns, and Refund Management

• Customer Returns

Sales Order Management and Processing (S/4HANA)

Order and Contract Management Inventory & Basic

Warehouse Management Receivables Processing

Basic Warehouse

Management (S/4HANA)

Accounts Receivable (S/4HANA)

(8)

SAP Best Practices for

Scope Coverage in 2015: On-premise edition, Core Finance

COREINDUSTRY

PRIORITIES

CROSSENTERPRISE

PRIORITIES

Analytics

Accounting and Financial Close Cost Management and _{Profitability Analysis}

• Overhead Cost Accounting

General Ledger (S/4HANA) Accounts Payable

(S/4HANA)

Entity Close (S/4HANA)

Asset Accounting (S/4HANA) Accounts Receivable (S/4HANA) • Accounts Payable • Credit Management • Accounts Receivable • Asset Accounting

• Accounting and Financial Close

Inventory Accounting (S/4HANA)

Revenue and Cost Accounting (S/4HANA)

• Inventory Valuation for Year End Closing

• Internal Order Actual

Profitability and Cost Analysis (S/4HANA) Product Cost

Management (S/4HANA) Cost Management (S/4HANA)

• Plant - Period End Closing • Profitability & Cost Analysis • Standard Cost Calculation

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SAP Best Practices for

Scope Coverage in 2015: On-premise edition, Analytics

(10)

SAP Best Practices for SAP S/4HANA

Scope 1511 –

On-premise edition

(11)

SAP Best Practices for

Scope Coverage in 2015: On-premise edition, Streamlined Procure to Pay

Supplier Information and Master Data

Inventory & Basic

Warehouse Management Operational

Procurement

• Procurement & Consumption of Consigned Inventory • Procurement of Direct

Materials

• Procurement Contract • Accounts Payable

Operational Contract Management (S/4HANA) Purchase Order Processing (S/4HANA) Service Purchasing (S/4HANA) Purchase Order Collaboration (S/4HANA)

• Integration Ariba – Business • External Procurement of Third-party Resources Invoice Collaboration (S/4HANA) Accounts Payable (S/4HANA)

• Integration Ariba – Business Network Integration

Basic Warehouse

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Sourcing and Contract Management

Procurement Contract

Key process steps Business benefits

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.

 Reduction of procurement costs

 Securing of supplies

 Transparency of supplier agreements

 Create a basic agreement (quantity contract)

 Create a purchase requisition

 Assign requisition and creating purchase order

 Approve purchase orders

 Monitor contract

 Goods receipt

(13)

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.

 Automatic posting of goods into vendor consignment stock

 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

 Goods receipt to vendor consignment stock

 Transfer posting of vendor consigned stock to own stock

 Invoice verification

(14)

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.

 Operate more efficiently and cost-effectively with streamlined procurement that brings more spend under management

 Ensure highly automated procurement processes for direct materials

 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

(15)

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.

 Leverage of purchase order management for the third-party resource procurement

 Create a purchase order

 Confirm the goods receipt

(16)

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.

 Reduce transaction costs

 Increase visibility

 Speed up procurement processes

 Reduce manual process steps during invoice verification

 Purchase order processing

(17)

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.

 Support of process-related transfer postings

 Support of legally required 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

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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.

 Goods can be returned with a return reason captured in the document

 All information for follow-on FI functions is provided – invoice reduction, rejection, cancellation, and so on

 Return purchase order creation

 Delivery due list for purchase orders

 Confirmation of picking

 Goods issue

(19)

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.

 ŸTransparent view on the stocks currently available

 Efficient processing of inventory adjustments

 ŸCreate physical inventory documents

 Print physical inventory documents

 Execute physical count or recount

 Enter physical count

(20)

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.

 Accounts payable are an integral part of the purchasing system

 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

 Manage and complete supplier master data

 Create invoice from logistics

 Pay invoice

 Approve payment

 Optionally forward payment via Financial Services Network (FSN)

(21)

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.

 Reduce transaction costs

 Increase visibility

 Speed up procurement processes

 Reduce manual process steps during invoice verification

 Purchase order processing

(22)

SAP Best Practices for

Scope Coverage in 2015: On-premise edition, Accelerated Plan to Product

Analytics

Maintenance Management Inventory & Basic

Product Development and Project Control

• MaketoStock Production -Discrete Industry

• MaketoStock Production -Process Industry

• Rework Processing (Stock-Manufactured Material) • Rework Processing

(Work-in-Process)

• Material Requirements Planning

Material Requirements Planning (S/4HANA) Production Processing (S/4HANA) Basic Subcontracting (S/4HANA) • Production Subcontracting -External Processing Basic Warehouse Management (S/4HANA) Production Operations and Execution Production Engineering and Planning Repetitive Manufacturing (S/4HANA) • Repetitive Manufacturing

(23)

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.

 Accelerated creation of purchase requisitions

 Automatic detection of shortages

 Higher accuracy of purchased quantities

 Manage forecast demand

 Schedule MRP run

(24)

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).

 Production execution triggered by a production plan

 Automatic explosion of the bill of material when running the material requirements planning

 Target costs are calculated while the order is created

 Create planned independent requirements

 Plan material requirements at plant level

 Produce in-house (subassembly)

 Final assembly in-house (finished good)

(25)

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.

 Recipe-oriented production

 Materials handled in batches according to a recipe specified for the appropriate production quantity

 Cost object controlling

 Planned independent requirements creation

 Material requirements planning (MRP)

 Make-to-stock production using process orders for semi-finished and finished products

(26)

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.

 Make-to-stock production based on run schedules without reference to sales orders

 Simplified handling of the production process with full cost control

 Confirmation of assembly activities without using production or process orders

 Creation of planned independent requirements

 Material requirements planning at plant level

 In-house production

(27)

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).

 Production execution triggered by a production plan

 Automatic explosion of the bill of material when running the material requirements planning

 Create planned independent requirements

 Plan material requirements at plant level

 Produce in-house (subassembly)

 Final assembly in-house (finished good)

(28)

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.

 Recipe-oriented production

 Materials handled in batches according to a recipe specified for the appropriate production quantity

 Cost object controlling

 Planned independent requirements creation

 Material requirements planning (MRP)

 Make-to-stock production using process orders for semi-finished and finished products

(29)

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.

 Transparent costs for rework activities

 Use of all standard shop-floor control functionalities is possible

 Creation of rework production order

 Goods issue for defective material

 Confirmation of rework production activities

 Posting goods receipt for rework production order

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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.

 Scraps at defined operation automatically trigger rework process

 After rework, additional activity and material consumption can be confirmed

 Scope is fully integrated in the production process

 Confirm production activities

 Confirm scrap defective material

 Confirm parent order at rework operation

(31)

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.

 Accelerated creation of purchase requisitions

 Automatic detection of shortages

 Higher accuracy of purchased quantities

 Manage forecast demand

 Schedule MRP run

(32)

Production Operations and Execution

Production Subcontracting - External Processing

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

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.

 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

 ŸCreation of purchase order for external processing

 Goods receipt for subcontracting purchase order

 Entry of invoice

(33)

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.

 Make-to-stock production based on run schedules without reference to sales orders

 Simplified handling of the production process with full cost control

 Confirmation of assembly activities without using production or process orders

 Creation of planned independent requirements

 Material requirements planning at plant level

 In-house production

(34)

Inventory & Basic Warehouse Management

Stock Handling - Rework, Scrap, Blocked Stock

(35)

Inventory & Basic Warehouse Management

Return to Vendor

 All information for follow-on FI functions is provided – invoice reduction, rejection,

(36)

Inventory & Basic Warehouse Management

Physical Inventory - Inventory Count and Adjustment

(37)

SAP Best Practices for

Scope Coverage in 2015: On-premise edition, Optimized Order to Cash

Optimized Order to Cash Streamlined Procure to Pay Accelerated Plan to Product Enhanced Request to Service *) Core Finance Core Human Resources *) • Returnables Processing • Free Goods Processing • Sales Order Processing with

Customer Down Payment • Sales Period End Closing • Sales Processing using

Third-Party with Shipping Notification • Sell from Stock

• Free of Charge Delivery • Sales Quotation

Billing and Invoicing (S/4HANA)

• Debit Memo Processing

Claims, Returns, and Refund Management

• Customer Returns

Sales Order Management and Processing (S/4HANA)

Order and Contract Management Inventory & Basic

Warehouse Management Receivables Processing

Basic Warehouse

Management (S/4HANA)

Accounts Receivable (S/4HANA)

(38)

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.

 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

 Create third-party sales order

 Convert purchase requisitions to purchase order

 Post statistical goods receipt

 Enter vendor invoice

 Create billing document

 Post statistical goods receipt

(39)

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.

 When an order is entered, an availability check is performed and a shipping point is determined automatically

 Create sales order

 Print order confirmation

(40)

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.

 System integrated Free of Charge sales order processing

 Create sales order with free of charge items

 Execute picking post goods issue

 Execute picking

(41)

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.

 You can assure your business partners that you will deliver a certain product configuration and quantity at a specific time and price

 During sales order processing, the sales employee can use a variety of sales functions and special quotation functions

 Create quotation

(42)

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.

 Sales order processing without the customer’s account number

 Sales order entry with material determination

 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

(43)

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.

 Reducing stock and cost, increasing efficiency

 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

 Create third-party sales order

 Convert purchase requisition to purchase order

 Approval of purchase order

(44)

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.

 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

 Approve of purchase orders

 Post goods receipt

 Process outbound delivery

(45)

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.

 The process comprises the management of returnables using the ERP returnable packaging logistics function

 Tracking of returnables

 Create delivery

 Execute picking

 Add returnable packaging to deliveries

 Create returnable packaging return order

 Post goods receipt for returnable packaging

(46)

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.

 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

 Print order confirmation

 Create delivery

 Execute picking

(47)

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.

 System integrated sales order processing with customer down payment

 Remove billing block

 Create billing document

 Post down payment

 Create delivery

 Execute picking

(48)

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.

 Provides a SD periodic activities overview.

 Supports appropriate processing of due documents as part of month end closing.

 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

(49)

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.

 System integrated credit memo processing

 Create credit memo request

 Remove billing block (review credit memo request)

(50)

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.

 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.

 Create sales order including check, if SEPA-mandate exists

 Create delivery

 Execute picking

 Handle exceptions for missing SEPA-mandate

(51)

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.

 Cost optimization in collecting customer orders due to deliver to the same customer in one delivery via a collective run

 Cost optimization in collecting deliveries to the

 Create sales orders

 Create deliveries via collective run

 Execute picking

(52)

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.

 System integrated debit memo processing

 Create debit memo request

 Remove billing block (review debit memo request)

(53)

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.

 System integrated processing of customers returns and complaints

 Create return delivery

(54)

Inventory & Basic Warehouse Management

Stock Handling - Rework, Scrap, Blocked Stock

(55)

Inventory & Basic Warehouse Management

Return to Vendor

 All information for follow-on FI functions is provided – invoice reduction, rejection,

(56)

Inventory & Basic Warehouse Management

Physical Inventory / Inventory Count & Adjustment

(57)

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.

 Accounts Receivable is an integral part of sales management

 Accounts Receivable postings are recorded directly in the General Ledger

 Manage and complete customer master data

 Create invoices from logistics

 Automatically reconcile open invoices with incoming payments

(58)

SAP Best Practices for

Scope Coverage in 2015: On-premise edition, Core Finance

COREINDUSTRY

PRIORITIES

CROSSENTERPRISE

PRIORITIES

Analytics

Accounting and Financial Close Cost Management and _{Profitability Analysis}

• Overhead Cost Accounting

General Ledger (S/4HANA) Accounts Payable

(S/4HANA)

Entity Close (S/4HANA)

Asset Accounting (S/4HANA) Accounts Receivable (S/4HANA) • Accounts Payable • Credit Management • Accounts Receivable • Asset Accounting

• Accounting and Financial Close

Inventory Accounting (S/4HANA)

Revenue and Cost Accounting (S/4HANA)

• Inventory Valuation for Year End Closing

• Internal Order Actual

Profitability and Cost Analysis (S/4HANA) Product Cost

Management (S/4HANA) Cost Management (S/4HANA)

• Plant - Period End Closing • Profitability & Cost Analysis • Standard Cost Calculation

(59)

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.

 Recording all business transaction ensures complete and accurate accounting data

 Posting general ledger account documents

 Displaying the document journal

 Displaying G/L balances (list)

 Carrying out recurring entries

(60)

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.

 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

 Creation of asset master

 Asset acquisition

 Asset retirement

 Asset valuation

 Month-end closing

(61)

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.

 Stock valuation for raw materials, packaging materials, and trading goods based on the lowest possible value

 Inventory valuation for semi-finished and finished materials based on local

requirements for valuation

 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

(62)

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.

 Accounts payable are an integral part of the purchasing system

 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

 Manage and complete supplier master data

 Create invoice from logistics

 Pay invoice

 Approve payment

 Optionally forward payment via Financial Services Network (FSN)

(63)

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.

 Reduce risk of bad debt

 Focus on reliable and profitable customers

 Enter credit limit for new customers

(64)

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.

 Accounts Receivable is an integral part of sales management

 Accounts Receivable postings are recorded directly in the General Ledger

 Manage and complete customer master data

 Create invoices from logistics

 Automatically reconcile open invoices with incoming payments