SAP S/4HANA Configuration

Phase II - Procurement
Teaching material - Information

i Teaching material - Version

▪ 4.1 (March 2022)

▪ Software used
• SAP S/4HANA 2020
• GUI 7.70

▪ Model
• Global Bike

▪ Prerequisites
• None

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Module Information

Authors

▪ Simha Magal
▪ Stefan Weidner

Target Audience

▪ Advanced

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Module Information

Learning Objectives

You are able to:

▪ Understand the structure of the ERP configuration curriculum, especially phase II.
▪ Define the central organizational structures for material management.
▪ Analyze scenarios.
▪ Do the necessary steps for materials management configuration.
▪ Explain common processes in materials management.

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Agenda

▪ Introduction

▪ Scenario

▪ Enterprise structure

▪ Process configuration

▪ Master data

▪ Process execution

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ERP Configuration Case Using Global Bike

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ERP Configuration Case Using Global Bike

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ERP Configuration Case – Phase II

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Agenda

▪ Introduction

▪ Scenario

▪ Enterprise structure

▪ Process configuration

▪ Master data

▪ Process execution

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Scenario

▪ In 2008, Global Bike Inc. starts implementing SAP S/4HANA.

▪ In a preparation project (phase 0), the scope of the implementation project was defined.

▪ In project phase I, Bianca Cavarini (Chief Information Officer) and her team successfully configured basic
Financial Accounting processes in the S/4HANA system.

▪ In phase II, before starting to configure the procurement process, they are observing the work of the following
GBI employees:
• Silvia Cassano (Accountant Payable Specialist GBI US)
• Stephanie Bernard (Billing Clerk Accounts Receivable GBI US)
• Shuyuan Chen (Chief Accountant GBI US)

▪ Task Read the scenario and highlight the most important and relevant information.

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Problem Analysis and Solution Finding

▪ Task Revisit the reference symptoms/issues and condense them into problems specific to this case.

▪ Short Description You (in the role Mona Falco) need to come to a clear understanding of the most relevant
symptoms in Purchasing in order to identify the causes and underlying problems including the issue of invoice
discrepancy.

▪ Task Revisit the reference problems and identify possible solutions for Global Bike.

▪ Short Description In the role of Mona Falco (System Design and Dev Manager) and Sarah Garcia (Business
Analyst 2), analyze all relevant problems in Purchasing and Accounting and find possible solutions.

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 Enterprise Process Master Process
Agenda Structure Configuration Data Execution

▪ Introduction

▪ Scenario

▪ Enterprise structure

▪ Process configuration

▪ Master data

▪ Process execution

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Enterprise Structure – Materials Management

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Client

▪ In commercial, organizational, and technical terms, a self-contained unit in an

SAP system with separate master records and its own set of tables.

▪ Represents the largest organizational unit implemented within an SAP system

Client Global Bike Group

e.g.
• Global enterprises
• Consolidated concern
• Corporation
• Holding

▪ In this context: Global Bike Group

▪ Identified by a three-digit number, e.g. 200

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Company Code

▪ The smallest organizational unit of Financial Accounting for which a

CC US## CC DE##

complete self-contained set of accounts can be drawn up for

purposes of external reporting.
Client Global Bike Group

▪ This includes recording of all relevant transactions and generating all

supporting documents required for financial statements.

▪ Key organizational level for Financial Accounting

• Books are maintained at company code level
• Financial statements (Balance sheet, profit and loss statement) are
generated for company codes

▪ In this context: Global Bike Inc. (US), Global Bike Germany GmbH
(DE)

▪ Identified by a four-digit alphanumeric ID, e.g. US00

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Plant

▪ Many definitions or uses. A location

• That holds valuated stock (for distribution) Dallas Miami S. Diego Heidelb. Hamburg
DL## MI## SD## HD## HH##

• Where production planning is carried out CC US##

Client Global Bike Group

CC DE##

• Where products and services are created

• That contains service or maintenance facilities

▪ Where work is performed

• Office, store, factory, warehouse, distribution center

▪ Can be assigned to one company code only

▪ A company can have many plants

▪ In this context: five plants at Global Bike

▪ Identified by a four-digit alphanumeric ID, e.g. DL00

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Storage Location
RM## TG## TG## RM## TG##

SF## FG## FG## SF## FG##

FG## MI## MI## FG## MI##

▪ A place in a plant where materials are stored

MI## MI##

• Areas designated for different types of material (raw material, work-in-process, finished Dallas Miami S. Diego Heidelb. Hamburg
DL## MI## SD## HD## HH##

goods) CC US## CC DE##

Client Global Bike Group

• Does not have to be physical, can be logical

• More sophisticated divisions including storage bins, cabinets, trays is part of warehouse
management

▪ A plant must have at least one storage location

▪ A storage location is assigned to a single plant

• Storage locations in different plants can have the same name
− Finished Goods FG00 in MI00, FG00 in DL00

▪ In this context: various storage location types at Global Bike

▪ Identified by a four-digit alphanumeric ID, e.g. FG00

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Purchasing Organization
RM## TG## TG## RM## TG##

SF## FG## FG## SF## FG##

FG## MI## MI## FG## MI##

▪ Identify and select vendors

MI## MI##

Central Purchasing Organization (global) GL##

Purchasing Org. US## P.Org. DE##

Dallas Miami S. Diego Heidelb. Hamburg

▪ Negotiate general conditions of purchase and contracts for one or more plants or
DL## MI## SD## HD## HH##

CC US## CC DE##

Client Global Bike Group

companies.

▪ Determine pricing conditions

▪ Typically three models for Purchasing Organization

• Enterprise-Level (assigned to plant)
• Company-Level (assigned to plant and one company code)  used in Global Bike
• Plant-Level (assigned to plant and its company code)
• Hybrid

▪ In this context: three purchasing organizations at Global Bike

▪ Identified by a four-digit alphanumeric ID, e.g. US00

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Purchasing Group
RM## TG## TG## RM## TG##

SF## FG## FG## SF## FG##

FG## MI## MI## FG## MI##

▪ A buyer or group of buyers responsible for certain materials or groups of materials

MI## MI##

Central Purchasing Organization (global) GL##

Purchasing Org. US## P.Org. DE##

P. Group N. America N## P.Gr. Europe E##

Dallas Miami S. Diego Heidelb. Hamburg

▪ Can be internal to the company or external

DL## MI## SD## HD## HH##

CC US## CC DE##

Client Global Bike Group

• Decide to purchase land, but use a realtor (external purchasing group) to execute the
purchase

▪ Not assigned to or related to purchasing organization

▪ In this context: two groups: North America and Europe

▪ Identified by a three-digit alphanumeric ID, e.g. N00

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Enterprise Structure SAP S/4HANA

RM## TG## TG## RM## TG##

Storage SF## FG## FG## SF## FG##
Location
FG## MI## MI## FG## MI##

MI## MI##

Central Purchasing Organization (global) GL##

Purchasing Org. US## Purch. Org. DE##

Purchasing Group North America Purch. Group Europe

N## E##

Dallas Miami San Diego Heidelberg Hamburg Plant

DL## MI## SD## HD## HH##
CC US## CC DE## Company Code

Client Global Bike Group

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[OPTIONAL] Handbook Tasks

▪ Maintain Purchasing organization (US: US##)

▪ Define Plants
• Dallas: DL##
• Miami: MI##
• San Diego: SD##

▪ Maintain Storage Locations

• Finished Goods: FG##
• Miscellaneous Goods: MI##
• Raw Materials: RM##
• Semi-Finished Goods: SF##
• Trading Goods: TG##

▪ Create Purchasing Group (North America: N##)

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[OPTIONAL] Handbook Tasks

▪ Maintain Purchasing Organization

▪ Define Plants

▪ Maintain Storage Location

▪ Create Purchasing Group

▪ Assign Purchasing Organization to Company Code

▪ Assign Plants to Company Code

▪ Assign Purchasing Organization to Plants

▪ Group Together Valuation Areas

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 Enterprise Process Master Process
Agenda Structure Configuration Data Execution

▪ Introduction

▪ Scenario

▪ Enterprise structure

▪ Process configuration

▪ Master data

▪ Process execution

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[OPTIONAL] Handbook Tasks

▪ Assign Material Ledger Types to Valuation Area ▪ Set Tolerance Limits for Purchase Orders

▪ Activate Material Ledger Types for Valuation Areas ▪ Set Tolerance Limits for Goods Receipts

▪ Set Valuation Areas as Productive ▪ Set Tolerance Limits for Invoices

▪ Determine Tax Version ▪ Set Tolerance Limits for Outgoing Payments

▪ Define Tax Accounts ▪ Define Default Values for Inventory

▪ Configure Automatic Postings ▪ Define Default Values for Plants

▪ Maintain Default Values for Tax Codes ▪ Define Attributes of Material Types

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 Enterprise Process Master Process
Agenda Structure Configuration Data Execution

▪ Introduction

▪ Scenario

▪ Enterprise structure

▪ Process configuration

▪ Master data

▪ Process execution

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Material Master Data

▪ Data needed to execute transactions related to materials

▪ Data are grouped by different user / functional areas (views)

• Basic data • Plant / Storage

• Purchasing • Work Scheduling
• Accounting • MRP
• Forecasting • Classification
• Sales • Warehouse Management

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Material Master Data

▪ Material master data are defined for specific organizational levels

▪ Can have different data for different combinations of Org data

• Purchasing: Plant, storage location
• Sales: Sales Area (Sales Org, Distribution Channel)
• Warehouse: Warehouse #, storage type

▪ Example:
• SHRT1000 + MI00+ TG00
• SHRT1000 + SD00+ TG00
• SHRT1000 + US00 + Wholesale channel
• SHRT1000 + US00 + Internet channel

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Vendor Master Data

▪ Data needed to do business with vendors

▪ Data needed to execute transactions related to vendors

▪ Data are specific to (defined for) different organizational levels.

▪ The three segments are:

• Client level data (General)
• Company code level data (Accounting)
• Purchasing organization level data (Purchasing)

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Purchasing Info Records

▪ Relates vendors and materials

▪ One info record per combination of vendor and material (or material group)
• General data
• Conditions: pricing, discounts, free goods (current and future)
• Vendor data
• Texts (notes)

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Purchasing Info Records

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Conditions

▪ Pricing conditions
• Gross price
• Discounts and surcharges
• Freight / shipping

▪ Pricing data in a purchase order is obtained from

• Condition records
• Purchasing info records
• Contracts and agreements
• Other sources

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[OPTIONAL] Handbook Tasks

▪ Create Trading Goods

• Material master records from Appendix D

▪ Create Vendor
• Vendor – Olympic Protective Gear

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 Enterprise Process Master Process
Agenda Structure Configuration Data Execution

▪ Introduction

▪ Scenario

▪ Enterprise structure

▪ Process configuration

▪ Master data

▪ Process execution

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Process

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Process: Purchase Requisition

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Process: Purchase Order

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Process: Goods Receipt

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Process: Goods Receipt

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Process: Invoice Receipt / Verification

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Process: Invoice Receipt / Verification

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Process: Vendor Payment

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Process: Vendor Payment

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