This Blog is mainly on SAP Exam Questions and Selected "How-to" SAP processes

Monday, July 28, 2025

Q&A in Class (2025-08-01) TS410 Part 1

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Question: Why is there a choice to migrate from ECC On-Premise to S/4 On-Premise then only to S/4 Cloud, instead of direct migration from ECC On-Premise to S/4 Cloud ?

Answer: Migrating from SAP ECC on-premise to either S/4HANA on-premise or S/4HANA Cloud involves a strategic decision based on business needs and technical capabilities. Both options offer advantages over ECC, including a simplified data model, real-time analytics, and improved user experience through SAP Fiori. The choice between on-premise and cloud S/4HANA depends on a company's specific needs, resources, and risk appetite.

S/4HANA On-Premise: SAP S/4HANA on-premise offers several advantages, primarily centered around control, customization, and integration. It allows businesses to maintain their own infrastructure, customize the system extensively, and integrate it with existing systems and third-party applications. This model is particularly appealing for organizations with complex requirements, strict compliance needs, or a desire for complete control over their IT environment. 

Pros: Retains control over infrastructure and data, potentially lower total cost of ownership (TCO) in the long run, and full control over customization. According to SAP, on-premise deployments are suitable for businesses that value control.
Cons: Requires significant upfront investment in infrastructure and resources, potential for longer implementation timelines, and ongoing maintenance responsibilities.

Specific Considerations for On-Premise S/4HANA:
Hardware and Infrastructure: Ensure sufficient hardware and infrastructure are available to support the S/4HANA environment.
System Administration and Maintenance: On-premise requires dedicated resources for system administration, maintenance, and troubleshooting.
Customization Control: On-premise provides greater control over customization and system configuration.

S/4HANA Cloud: SAP S/4HANA Cloud offers numerous advantages, including faster implementation times, lower total cost of ownership, increased business agility, and improved real-time insights. It streamlines operations through automation, enhances decision-making with AI-driven analytics, and ensures governance and compliance. 

Pros: Reduced infrastructure costs, faster implementation times, and access to the latest innovations and features offered by SAP.
Cons: Limited control over infrastructure and data, potential for higher subscription costs, and dependency on SAP's cloud roadmap.
  
Specific Considerations for Cloud S/4HANA (e.g., RISE with SAP):
Accessibility and Scalability: Cloud offers increased accessibility and scalability, allowing users to access data from anywhere with an internet connection.
Reduced Infrastructure Management: Cloud providers handle infrastructure management, reducing the burden on internal IT teams.
Subscription-based Model: Cloud solutions often utilize a subscription-based pricing model, which can impact long-term costs.
Standardization and Simplification: Cloud solutions often prioritize standardization and simplification, potentially requiring adjustments to existing customizations.

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Question: Review some of the FIORI Navigations and Settings.

Answer: SAP Fiori is a user experience (UX) and design system that SAP uses to build business applications. It's designed to create a more intuitive and user-friendly interface for SAP software, especially for mobile devices and web applications. Fiori provides a simplified, role-based experience with role-based tiles that encapsulate common processes, such as viewing sales orders or approving timesheets. It's used across various SAP products, including S/4HANA and C/4HANA suites, SAP Analytics Cloud, and others. 

Here's a more detailed breakdown:
• Simplicity and Usability: SAP Fiori is a web-based user experience platform. It provides a modern and user-friendly interface for SAP applications that can be accessed through a web browser. The new interface to SAP prioritises a clean, easy-to-use interface, making it easier for users to navigate and interact with SAP applications. 
• Role-Based Access: The system is designed to provide users with access to the specific information and functionalities they need for their role, streamlining their workflow. 
• Mobile-First Design: Fiori (some of it) is built with mobile devices in mind, ensuring a responsive and user-friendly experience on various devices. SAP Fiori can be used on both Android and iOS devices. SAP provides native applications for both platforms, allowing users to experience Fiori applications on their mobile devices with features optimized for each operating system. 
• Design System: Fiori provides a design language, templates, tools, and guidelines for developers to create visually appealing and consistent applications. 
• Integration: Fiori integrates well with existing SAP systems and applications, including S/4HANA, C/4HANA, and other products TechTarget (eg: IBP or Integrated Business Planning, SuccessFactors, SAP Concur, SAP FieldGlass, Ariba etc) 
• Development Framework: Fiori includes a framework and tools for developers to create and deploy new applications, such as the ABAP Programming Model for SAP Fiori. 

Here are some Blog Posts that illustration the Navigations and Settings for FIORI Usage: 

Here are some SAP Official Resources for FIORI: 

Here are FIORI Blog post from Froggy: 
https://froggysap.blogspot.com/2025/04/Space&Pages/

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Question: Review of FIORI Library.


Answer: The SAP Fiori apps reference library is a web-based tool that serves as a comprehensive guide to SAP Fiori applications. It provides detailed information for planning, implementing, and exploring both standard SAP Fiori apps and classic applications integrated with the SAP Fiori launchpad. Essentially, it's a central repository for all things related to SAP Fiori user experience. 
Also see the following Blog Posts on some aspects of Fiori Library:

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Question: Review SD (Sales & Distribution) Enterprise Structure Relationships in SAP.


Answer: In SAP, the enterprise structure defines how a company's organization is represented within the system. It's a hierarchical framework that reflects the real-world company's structure, encompassing legal, organizational, and operational aspects. This structure is crucial for setting up master data and configuring business processes.

Key Components of SAP Enterprise Structure:
• Client: The highest level, representing a self-contained system with its own data. 
• (CO) Operating Concern: is a key organizational unit within Profitability Analysis (CO-PA) and usually recommend to have one Operating Concern for a Controlling Area.
• (CO) Controlling Area: is an organizational unit used for managing costs and profits within a company or a group of companies. Each Controlling Area can be assigned with Multiple Company Codes. 
• (FI) Company Code: Represents a legal entity, a separate legal and accounting unit. 
• (SD) Sales Organization: Responsible for the overall sales strategy and processes and usually mapped to the way the Company manage sales via Georgrahical definitions like North Region Sales Organization, South Region Sales Organizations. The Sales Organization is assigned to the Company Code. 
• (SD) Distribution Channel: Defines how goods or services are sold (e.g., Online, Retail, Wholesale etc). Distribution Channels(s) are assigned to the Sales Organization. 
• (LO&SD) Division: A logical grouping of products or services. Assigning Division(s) to Sales Organization(s) is a fundamental configuration step in SAP SD. It facilitates product categorization, sales focus, reporting, and the development of efficient sales strategies. The Division is also assigned to the Material Master (Products or Services Material) to declare Products or Services "belong" to which Division of the Company. 
• (SD) Sales Area: is a combination of three key elements: Sales Organization, Distribution Channel, and Division. This combination defines how a company conducts its sales activities, influencing pricing, order types, and other aspects of the sales process. Sales Area is Mandatory when creating a Sales Document. 
• (SD) Sales Group: a Sales Group is a grouping of salespeople or organizational units within a sales office, responsible for a specific set of products or customer segments. Sales Group(s) are assigned to Sales Office(s). 
• (SD) Sales Office: represents a specific physical location or geographical region within a company that manages sales activities. It's essentially a local hub for sales operations, often representing a branch office or a dedicated sales team within a larger organization. Sales Office(s) are assigned to the Sales Area.
• (MM) Purchasing Organization: Responsible for procurement and supplier relationships. The Purchasing Organization is assigned to the Company Code and Plant. Purchasing Organization is Mandatory when creating a Purchasing Document. 
• (MM) Purchasing Group: a unit within an organization responsible for procuring specific materials or services. It represents a buyer or group of buyers who handle the procurement process for a particular material or class of materials. The Purchasing Group is NOT assigned to any Enterprise Structure in the Configuration BUT it is assigned in the Material Master Purchasing view AND assigned in the Business Partner Vendor. Purchasing Group is mandatory in the Purchase Requisition Line Item AND in the Header of the Purchase Order. 
• (LO) Plant: A physical location where goods are produced or stored, this is where all logistics activities takes place and that is why it is mandatory when creating a PP Production Order, MM Puchase Order, SD Sales Order, PS Network Order, PM Maintenance Order, CS Service Order, and QM Inspection Lot. The Plant is assigned to the Company Code. 
• (MM) Storage Location: A specific location within a plant where materials are stored. But this is considered a Rough Storage where detail storage up to Rack, Bin levels must then consider implementation of LE-WM or LE-EWM functionality. 
• (SD) Shipping Point: a designated location from which goods are shipped to customers. The Shipping Point(s) are assigned to the Plant. Shipping Point is mandatory when creating an Outbound Delivery in LE-Delivery. 
• (LE) Transportation Planning Point: An organizational unit in Logistics, responsible for planning and processing transportation activities. The Transportation Planning Point (TPP) is assigned to a Company Code. TPP is mandatory when creating a Shipping Document in Transportation. 
• (LE) Classic Warehouse: Provides warehouse management functionality for smaller warehouses. LE-WM module is now revamped as Stock Room Management (StRM) in S/4HANA. The Classic Warehouse number is assigned to Plant + Storage Location combination. 
• (LE) EWM Warehouse: Provides warehouse management functionality for complex or larger warehouses. EWM or Extended Warehouse Management is now the recommended solution for complex Warehouse Structuring and Activities. The EWM Warehouse is assigned to the LE-Warehouse. 
• (HR) Personnel Area: key element in SAP's Human Capital Management (HCM) module, used for personnel administration, time management, and payroll processing. The Personnel Area is assigned to a Company Code. 
• (HR) Personnel Subarea: is a subdivision of a personnel area, used for more granular control and organization of employee data, particularly regarding pay, work schedules, and payroll.

Answer: See the Blog Posts for illustration of MM, SD, and EWM Enterprise Structure explanations in more details: 

You can also review about SAP Enterprise Structure using the following SAP official Resources:
https://learning.sap.com/learning-journeys/explore-integrated-business-processes-in-sap-s-4hana-/explain-the-organizational-structures/

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Question: A structural presentation of an example SAP Enterprise Structure for the above Question



Answer: The above "lines" linking between Enterprise objects are necessary for FI, CO, HR, MM, PP, SD, PS, QM, PM, CS, E&HS, TM, LE, and PDM except there is no direct assignment (dotted lines) from Purchasing Group to the Purchasing Organisation in the Enterprise Structure IMG configuration.

As for the PP (Production for Discrete and Process), QM (Quality Management), PM (Plant Maintenance), CS (Customer Service), PS (Project System) module, the Logistics Plant (Apple Green above) is used. In PM and CS, the Plant is used as the Maintenance Plant and the Maintenance Planning Plant. AND in PP-DI or PP-PI, the Plant is referred to as either a Planning Plant or Production Plant. BUT regardless of how the individuals give names to the Plant for its declared usages (this case Planning or Execution), it is the same Plant object. 

PLANT is part of LO (Logistics) Enterprise Structure and not specifically for MM, PP or SD, use of Plant is necessary in the following:
Materials Management (MM-PUR): for creating Purchasing Documents 
Materials Management (MM-IM): for managing Material with Stock scenario 
Sales & Distribution (SD-DLV): as Delivery Plant for creating Outbound Delivery for Stock scenario 
Production Planning & Execution (PP): as Planning Plant and Production Plant
Project System (PS): for Network Activities and Component Assignment 
Plant Maintenance (PM): for Maintenance Order Processing 
Customer Service (CS): for Service Order Processing
Quality Management (QM): for Inspection Lot Processing

When attempting the TS410 certification, it is important to have some understanding of the Enterprise Structure Relationships like below:
Operating Concern: Each Client must have at least ONE Operating Concern, SAP do not recommend to have more than ONE Operation Concern for each installed Client. Reason is for for simplicity and efficient data management, particularly when all controlling areas within the client share the same fiscal calendar. This approach reduces complexity and simplifies reporting, especially when dealing with a single, global business structure. 
Controlling Area: An Operating Concern can be assigned with ONE or MORE Controlling Areas, a Controlling Area can only be assigned to ONE Operating Concern because the Operating Concern is the highest level in the Profitability Analysis (CO-PA) organizational structure, and it defines the scope for analyzing profitability. The assignment links the cost accounting information from controlling areas (which manage cost and revenue) to the profitability analysis performed within the operating concern. 
Company Code: A Controlling Area can be assigned with ONE or MORE Company Code where the Company Codes need not necessarily be in the same Country. It is Mandatory to assign a Company Code to only ONE Company Code. This assignment is crucial for transferring financial data from FI (Financial Accounting) to CO (Controlling) for internal reporting and management decision-making. Without this assignment, cost and revenue information cannot be tracked and analyzed within the controlling module.  
Plant: A Company Code can be assigned with ONE or MORE Plants BUT each Plant can be assigned to only ONE Company Code, because a plant represents an operational unit within a company, and the company code is the smallest organizational unit for financial accounting. This assignment ensures that all operational activities within a plant are properly reflected in the company's financial records. Specifically, it allows for accurate valuation of materials, inventory, and other operational aspects within the plant's context, which are then rolled up into the company code's financial statements. 
Purchasing Organization: In order to be able to create Procurement Orders (like PR or PO), the Purchasing Organization must be assigned to a PLANT. However the SAME Purchasing Organization can be assigned to MORE than ONE Plant. However, assigning a purchasing organization to a company code in SAP is optional because it allows for different purchasing strategies. A purchasing organization can be configured to be company-specific (procuring only for one company code) or cross-company (procuring for multiple company codes). If a purchasing organization is not assigned to a specific company code, it can procure for any plant within the enterprise, regardless of its assigned company code. 
Sales Organization: Assigning a Sales Organization to a company code is mandatory in SAP's Sales and Distribution (SD) module. Each Sales Organization must be assigned to exactly ONE Company Code, though a company code can have multiple Sales Organizations. However, one DO NOT assign the Sales Organization to the Plant. 

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