Q&A in Class (2025-08-21) S4500

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Question: Review the Business Partner.

Answer: Classic transaction code in ECC for Vendor Master Creation/Change/Display (XK01, XK02, XK03, MK01, MK02, MK03, FK01, FK02, FK03 etc) are now Obsolete in S/4HANA which is replaced by a Single transaction code "BP". In SAP S/4HANA, the Business Partner (BP) is the central and leading object used to maintain master data for both customers and suppliers. It serves as a single point of entry for managing various types of business relationships. 

•  The Business Partner is used to create the following: 

• BP for Vendor or Customer via "Organization" (to create Vendor or Customer)

• BP for Individuals via "Persons"
• BP for Groups of People via "Groups"

•  The BP approach aims to harmonize master data across different SAP modules and applications, improving data consistency and simplifying data management. 

Advantages:

•  Reduced Redundancy: Basic data like name, address, and bank details are stored centrally at the BP level, avoiding duplication. 

•  Improved Data Consolidation: Centralized data management makes it easier to consolidate and analyze information related to business partners. 

•  Flexibility: The BP model allows for multiple addresses, address usages, and relationships to be managed for a single BP. 

 

Here are 2 Blog Posts using S/4 Backend and Fiori App to create the Business Partner for Vendor: 

https://froggysap.blogspot.com/2018/06/hana-for-logistics-business-partner-for.html

https://froggysap.blogspot.com/2023/06/s4-mm-part-2-create-business-partner.html

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Question: Review the Product Master Data (or Material Master)

Answer: First thing first, that the ECC "Material Master" is also referred to as "Product Master Data" in SAP S/4HANA. While the "Material Master" can still use Classic GUI via transaction codes like MM01, MM02, MM03 to manage it in S/4HANA Backend System, The "Product Master" is a FIORI "UX" App that acts is a centralized repository of all information related to a product or material. It acts as the single source of truth, containing details like product number, description, attributes, pricing, and more, ensuring consistency across various business processes like sales, procurement, and supply chain. 

It is important to note that "Material Master" = "Product Master Data". 

Here are Fiori Apps for Material Master and Product Master Data in S/4HANA system: 

https://froggysap.blogspot.com/2025/08/sales-and-distribution-manage-product.html

https://froggysap.blogspot.com/2023/02/s4-mm-master-data-create-product-master.html

https://froggysap.blogspot.com/2021/11/material-master-mm01-mm17-mmsc-manage.html

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Question: Review on Purchase-to-Pay or Materials Management (MM) Process.

Answer: SAP Material Management (MM) is a crucial module within SAP's Enterprise Resource Planning (ERP) system, designed to manage the procurement, storage, consumption of materials, and invoice verification of supplier invocie. It plays a key role in an organization's supply chain by automating and streamlining processes related to materials, inventory, and vendor management.

SAP MM Components: 

• MM-PUR (Purchasing) - PR, RFQ, Quotation, PO, Contract, Scheduling Agreement

• MM-IM (Inventory Management) - Goods Receipt, Stock Transfers, Goods Issues

• MM-IV-LIV (Logistics Invoice Verification) - 3-way Matching of Supplier Invoice to GR Material Document and PO Price

• MM-MRP-CBP (Consumption Based Planning) - ReOrder Point Planning, Forecasting, Consumption Based Planning

SAP introduced the Material Management (MM) Module in 1972 at the time of the Release of R2, the MM module initially was introduced with the above MM components from PUR, IM, LIV to CBP. It is not until sometime before mid 2000s coincide with transition to ECC that SAP change the MM name to Procurement. 

SAP's Procure-To-Pay (P2P) or Purchase-To-Pay (P2P) process is not a specific product or release date but rather a comprehensive approach to integrating purchasing and accounts payable systems. It's a business process framework within SAP, not a single product launch date. This framework encompasses the entire cycle from identifying needs to making payments. SAP's focus on P2P has been a gradual evolution, with different aspects being addressed through various solutions and modules over time.

The latest buzz word is now Source-to-Pay (S2P)! While P2P is more operational, dealing with ordering, receiving, invoicing, and paying for goods and services, S2P extends even further to include involves strategic activities like market analysis, supplier evaluation, and contract negotiation. The new Source-to-Pay (S2P) name likely coincides with SAP introduction of Central Procurement with the release of SAP S/4HANA 1809 (2018) or maybe around 2000. This release included the Central Procurement hub and features like central contracts, purchase orders, requisitioning, and source of supply assignment. It also provided centralized analytics for procurement processes. 

See the following Presentations for a Basic flow of MM Purchase Requisition to Invoice Verification:

https://docs.google.com/presentation/Vendor/

https://docs.google.com/presentation/MaterialMaster/

https://docs.google.com/presentation/PR-PO-GR-LIV/

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Question: Source Determination for Contract and Info Record to PR, Auto PO and GR

Click below to check the step:

https://froggysap.blogspot.com/2025/08/sap-mm-source-determination-for-pr-auto.html

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Question: SAP Course Recommendations for Plant Maintenance Planner.

Answer: See the following Recommendation:

(1) PM Certification requirements:
C_S43 SAP Certified Associate in SAP S/4HANA Asset Management

• S43000 - Business Processes in SAP S/4HANA Asset Management (formerly S4130) (3 Days)
• S43400 - Exploring Advanced Functions in Maintenance Processing (1 Day)
• S43410 - Refurbishment of Spare Parts (1 Day)
• S43100 - Managing Technical Objects in SAP S/4HANA (formerly S4131) (3 Days)

• S43200 - Preventive Maintenance in SAP S/4HANA (formerly S4132) (3 Days)

• S43300 - Customizing in SAP S/4HANA Asset Management (formerly S4133) (3 Days)

(2) Customized MRP for Spare Parts planning (4+4):

Duration: as Discussed (sequence and topics may adjusted at time of actual design preparation)

• SAP CBP 4-steps logic Mechanics in MRP 1, 2 view (Material Master)

• Re-Order Point Principles, Formula and Practice

• Safety Stock Calculation

• Scheduling principles in ROP in SAP

• Understanding Planned and Unplanned Goods Issue

• Forecasting Principles, Formula and Practice

• SAP Forecasting settings in Forecasting view (Material Master)

• Re-Order Point SAP Calculation methods and concerns

• Lead time determination via Supplier Delivery History

• Stock Days Supply Calculations

• Use of Plant Parameter for CBP

• Use of MRP Group Parameter for CBP

• Other IMG Parameters for CBP

• Ensuring PM Spare Parts MRP planning accuracy

• Classic MRP and MRP Live for ROP

• Fiori App for CBP Planning Run

• Re-Order Point with Maintenance Order Reservations

• Using MRP Controller for MRP Evaluations

• Using Product Group for MRP Evaluations

• Controlling MRP run using MD02 via Product Group

• Evaluation tools in MD04 and MD05

• Evaluation tools in MD06 and MD07

• Evaluation tools for MRP Results via FIORI App

• Understanding Exception Messages

(3) Material Management (SAP-MM) Course Recommendations 

• S4500 - Business Processes in SAP S/4HANA Sourcing and Procurement (4 Days)

• S4510 - Inventory Management and Physical Inventory in SAP S/4HANA (5 Days)

• S4520 - Purchasing in SAP S/4HANA (5 Days)

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Question: During Goods Receipt of PO, there is a WARNING message of MAP Tolerance, what are the calculations, setting and effects of that message?

Answer: In SAP MM, the tolerance key VP is used to manage variances related to the moving average price (MAP) during goods receipt (GR). When a goods receipt is posted, the system checks if the new MAP, calculated after the receipt, exceeds the defined tolerance limits.

The results of the Posting changes the MAP in the Material Master and therefore revaluate the Stocks of the the Material, and this applies to Price Control "V".
See the following Blog Posts for the Simulation:

https://froggysap.blogspot.com/2025/08/blog-post_21.html

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