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

▼

Tuesday, October 14, 2025

Q&A in Class (2025-10-17) TS410

--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Question: Is PI/PO obsolete in S/4HANA?

Answer: In SAP, PI/PO stands for Process Integration/Process Orchestration, which refers to an on-premise middleware platform used for integrating different applications and orchestrating business processes. It acts as a central hub to connect various systems, both SAP and non-SAP, ensuring seamless communication and data exchange within an organization. 

SAP's integration platform, first introduced as SAP Exchange Infrastructure (XI) in 2002, was rebranded as SAP Process Integration (PI) in 2004. The current version, SAP Process Orchestration (PO), which combines PI with business process management and business rules management, was introduced in 2012. 

SAP PI/PO is not technically obsolete in an S/4HANA environment yet, but its support ends in December 2027, making it non-compliant and requiring migration to the strategic successor, SAP Integration Suite. While a PI/PO landscape can still connect to S/4HANA for now, its end of support is mandatory for security and future updates. 

Key points:
• End of support: Mainstream maintenance for SAP PI/PO ends in December 2027, with an optional extension to 2030 for an additional cost.
• Strategic replacement: The designated successor is the SAP Integration Suite, which is part of SAP Business Technology Platform (BTP).
• Migration urgency: Businesses must begin planning their migration to avoid security risks and to ensure business continuity.

SAP introduced the Integration Suite in 2020. Previously known as SAP Cloud Platform Integration (CPI), the new suite integrated CPI with other tools like API Management and Open Connectors to create a more comprehensive integration solution.  

The latest information is that SAP is replacing its on-premises SAP Process Integration/Process Orchestration (PI/PO) solution with SAP Integration Suite, a cloud-native offering on the SAP Business Technology Platform (BTP). This is a strategic shift to a modern, cloud-based integration platform that requires a strategic realignment for customers. Support for PI/PO ends in 2027, with an optional extension until 2030, making migration to Integration Suite essential for future compliance and innovation. 

SAP recommend not continue using PI/PO in the long term for S/4HANA; you should begin planning a migration to SAP Integration Suite due to the end of support for PI/PO in 2027. While PI/PO can still function with S/4HANA for now, it will become a security risk and will no longer receive updates or new innovations, leading to potential vulnerabilities, compliance issues, and high maintenance costs. 

Official SAP information on PI/PO and SAP Integration Suite:
https://www.sap.com/integration-suite/what-is-sap-integration-suite.html

-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 

Question: Review the basic Apps for S/4HANA Material Planning.


Answer: SAP S/4HANA MRP Live is the next-generation, in-memory Material Requirements Planning tool that leverages the SAP HANA database for faster, real-time planning. It runs planning calculations in parallel (via parallel processing), rather than sequentially, to drastically reduce processing time and can be executed interactively during working hours. Key features include a new transaction code (MD01N) or Fiori UX App ID F1339), a flexible planning scope (without a need for User Exit like that required in the Classic MD01 or MDBT), and a new user experience. The downside is perhaps SAP decided to removes some functionalities like the traditional MRP list (MD05 or MD06) and simulation mode (MD02).
MPR Live in a nut-shell:
In-memory database: MRP Live uses the in-memory computing power of SAP HANA for significant performance gains over classic MRP.
Parallel processing and Flexible planning scope: It can plan multiple materials simultaneously with selection criteria Material, Product Group, Plant, MRP Controller, and Scope (MPS &/or MRP), which dramatically speeds up the planning run compared to the sequential nature of classic MRP.
Real-time planning: Empower planners to run material requirements analysis during business hours using MRP Live Fiori-UX App without significant system impact due to the capabilities of the HANA engine.
See the Blog post below:

Official SAP references for MRP Live:
https://learning.sap.com/outlining-mrp-live/
https://blog.sap-press.com/what-are-the-differences-between-mrp-live-and-classic-mrp
https://fioriappslibrary.hana.ondemand.com/AppsF1339

-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 

Question: Review of Production Order Settlement steps.


Answer: Production process and completion:
• Perform production steps: Issue raw materials, confirm activities, and perform the goods receipt for the finished product. 
• Technologically Complete (TECO): Once production is finished, set the order to TECO status to indicate that the logistical activities are complete. 
Settlement
• Absorb the ABC/Template Allocation (if available) - CPTA (Individual) and CPTD (Collective)
• Revaluation of Actual Prices (if necessary) - MFN1 (Individual) and CON2 (Collective)
• Calculate Overhead Costs - KGI2 (Individual) and CO43 (Collective)
• Calculate Variance - KKS2 (Individual) and KKS1 (Collective)
• Settlement - KO88 (Individual) or CO88 (Collective)
See the following Blog Post.

-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 

Questions: Review Shipping Point Determination. 


Answer: IMG - Logistics Execution - Shipping - Basic Shipping Functions - Shipping Points and Goods Receiving Point Determination - Assign Shipping Point. 
There are 3 influencing factor to determine the Shipping Point: 
• Shipping Condition (from Ship-to Party at the Sales Area in the Shipping Tab)
• Loading Group in the Material Master Sales/Plant data view
• Delivery Plant
See the following Blog Post.

-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 

Questions: Review Route Determination. 


Answer: IMG - Logistics Execution - Shipping - Basic Shipping Functions - Route - Maintain Route Determination.
See the following Blog Post.

-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 

Question: Review of Account Determination for Sales Order Outbound Delivery Post Goods Issue (PGI).


Answer: Account Determination for Post Goods Issue for an Outbound Delivery of a Make-to-Stock Material uses Transaction Event Key BSX and GBB.
• Trx Event Key BSX is for Credit of the Stock G/L Account 
• Trx Event Key GBB is for the Debit of the COGS G/L Account
Click below for the detail of the Account Determination logic: 

-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 

Question: Review of Account Determination for Delivery-based Billing.


Answer: Account Determination for Billing based on Delivery Order of a Make-to-Stock Material are:
• Debit Reconciliation Account from the Business Partner
• Credit Revenue
• Credit Tax
Click below for the detail of the Account Determination logic:   

-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 

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:

--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Question: Review on Design-to-Operate or Production Planning & Execution (PP) Process.


Answer: SAP PP or Production Planning and Execution which was likely introduced some time around 1979 when SAP R2 was Released (remember that R1 was mostly Financial functionality which was released in 1972)! Early versions of SAP, like SAP R/2, included capabilities for manufacturing, sales, and distribution, which formed the foundation for what later became the PP module. 
Some Milestone of major PP module development timeline: 
• 1998: SAP's Advanced Planning and Optimization (APO) module was launched, which included Demand Planning (DP), Supply Network Planning (SNP), PP/DS (Production Planning and Detailed Scheduling) functionality, and Global ATP (GATP) etc.
• 2015: SAP Integrated Business Planning (IBP) was introduced, and in later years, PP/DS was integrated into S/4HANA. SAP Integrated Business Planning (IBP) is a cloud-based solution that helps companies streamline and optimize their supply chain planning processes. It provides a unified platform for demand planning, supply planning, sales and operations planning (S&OP), and inventory management, enabling better decision-making and improved supply chain performance. 
• 2018: PP/DS was launched as an embedded version within SAP S/4HANA. 
The remaining PP component in S/4HANA 2023 are:
Planning: Sales.& Operations Planning (SOP)
Planning: Long Term Planning (LTP) - Simulations
Planning: Master Production Scheduling (MPS) - Planning for Finished Goods
Planning: Material Requirement Planning (MRP) - Planning for Raw Materials
Planning: Embedded Production Planning & Detailed Scheduling (PPDS) - Advanced Planning
Execution: PPDI Discrete Manufacturing Execution using Production Orders 
Execution: PPDI Discrete Manufacturing Execution using Repetitive Manufacturing 
Execution: PPPI Process Manufacturing Execution using Processn Orders 
Execution: PPDI or PI using Kanban
Here are 2 Blog Post of using FIORI App to perform PP Planning and PP Execution: 
https://docs.google.com/Production Planning/
https://docs.google.com/Production Execution/

--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Question: Review on Order-to-Cash or Sales & Distribution (SD) Process.


Answer: The Sales & Distribution (SD) Module was introduced alongside the MM Module in 1978 when SAP R2 was Released, it is now called Order-to-Cash (O2C). 
The Operation Components of SD are:
• SD-SLS refers to Sales Order Processing
• SD-DLV refers to the Delivery within the SD module
• SD-BIL refers to the Billing step within the SD module 

--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Question: Review S/4HANA TM (Transportation Management) process steps.


Answer: SAP TM, or SAP Transportation Management, is a comprehensive software solution for managing all aspects of a company's transportation processes, from planning and execution to monitoring and optimization. It helps businesses streamline logistics operations, reduce costs, and improve delivery times by providing tools for route planning, cargo management, and collaboration. It integrates with other SAP products to create a unified system for end-to-end logistics and can be used as part of SAP S/4HANA or as a standalone solution.
Key functions of SAP TM
• Planning: Handles route and cargo space planning to optimize the movement of goods.
• Execution: Manages the day-to-day activities involved in transportation, such as freight booking and execution.
• Optimization: Uses data and analytics to improve shipping efficiency, fuel consumption, and on-time delivery rates.
• Monitoring and Visibility: Provides comprehensive views of logistics processes, allowing for better decision-making and risk management.
• Integration: Connects seamlessly with other SAP modules like SAP S/4HANA, SAP Extended Warehouse Management (EWM), and SAP Event Management for a complete view of the supply chain.
• Invoicing: Includes functions for freight cost and invoicing to ensure accurate billing.
 
Click below to see the Process steps of Basic TM (Transportation Management) step 1 and step 2:

--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Question: Review SAP Project System (PS) Logistics process steps.


Answer: SAP Project Logistics refers to the combination of SAP's project management tools (like SAP Project System) and its logistics functionalities to manage the physical and administrative movement of resources, materials, and goods within a project. It involves using SAP to plan, execute, and monitor all project-related logistics, including transportation, warehousing, and inventory management, ensuring projects are completed on time and within budget.
SAP PS Components: 
Project Definition: 
• A Project Definition is the highest-level object that represents a specific project.
• It serves as the main identifier and contains all other project elements which include the Project Edit-Mask and Project Profile (which contains a set of profiles to manage project accounting and project logistics).
Work Breakdown Structure (WBS):
• A WBS is a hierarchical, multi-level structure that breaks down the project into smaller, more manageable tasks and sub-tasks.
• The WBS is the basis for all project-related data, including cost planning, sales and revenue planning, project budgeting, and material management processes. 
• Each WBS element is a cost object and can be used to track financial transactions from the lowest level up to the project definition. Cost from lower level WBS can be settled to the higher then highest level WBS AND from the highest level WBS element then can be settled to Cost Center etc. or in AUC to the Asset. 
Networks:
• A Network is used to represent the actual sequence and dependencies of project activities.
• It is a process-oriented structure that contains Activities, Milestones, Materials, PS Text, and Relationships that define the project's workflow.
• Networks are essential for time-based planning (scheduling), resource planning, capacity planning, and cost analysis of the project flow.
• The Network Activity Control key is a use-defined 4-alphanumeric key that contains parameters that determines how an activity is processed by specifying whether it is an internal, external, external service activity or cost activity.
• Not all projects require a Network; the decision depends on the project's specific needs to create SAP Project without Network. 
Click below to view selected PS Project Logistics steps:

--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Question: Review SAP Project System (PS) Accounting overview process steps.


Answer: SAP Project System settlement is the process of allocating actual costs and revenues from a project (the sender) to one or more receiving objects, such as a general ledger account, an asset under construction, or a profitability segment. This is typically done as part of period-end closing activities, using a pre-defined settlement rule that specifies how and to where the costs should be transferred. The settlement process helps to correctly capitalize project costs, gather detailed financial data, and account for project expenses in the overall controlling structure.
Basic components of SAP project settlement: 
• Settlement rule: Before settlement, a settlement rule must be defined for the project or its components (like WBS elements). This rule determines the receiver (where the costs go), the percentage of costs to be transferred, and other parameters.
• Sender: The project or a WBS element that has incurred costs is the sender.
• Receiver: The costs are moved to one or more receivers, such as a general ledger (G/L) account, an asset under construction (AUC), a cost center, or a profitability segment (PSG).
• Process: The settlement is executed, often at the end of a period or at the project's completion. The system then transfers the costs from the sender to the specified receiver(s) based on the settlement rule.
Click below to view an example of Project with Network Settlement process steps:

--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

at

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.