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

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Monday, August 25, 2025

Q&A in Class (2025-08-28) S4500

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Question: Review Fiori Navigations in Classic Fiori Group/Tile AND "Space and Pages".


Answer: Fiori Navigation basics as below Blog Posts.
Click the following to check the Navigation basics for Classic Fiori Group AND "Space and Pages":

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Question: Exploring FIORI in S/4HANA. 

Answer: The first generation of SAP Fiori, version 1.0, was released in 2013. The main interface are Fiori Groups which contain a logical grouping of Fiori Tiles. It introduced a mobile-first design approach with a focus on simplifying business tasks and providing a responsive user experience across different devices. Initially, focused on a mobile-first approach, providing a simplified, user-friendly interface for common business tasks within the existing SAP ECC environment. It initially offered a limited set of 25 transactional apps, like those for approving requests or viewing sales orders, specifically designed to improve the user experience for frequently used functions.

SAP introduced the next generation Fiori interface called Spaces and Pages in the SAP Fiori Launchpad which was release in S/4HANA 2020 to improve user experience by enhancing organization, personalization, and flexibility in accessing and managing applications. Spaces and pages offer a more structured and intuitive way to navigate the Fiori Launchpad, making it easier for users to find the apps they need for their specific roles and tasks. 

To help you to understand SAP Fiori, here are some official links:

To help you to understand SAP Fiori, here are Blog Posts to show the step by steps guides:

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Question: Review Fiori "Save as a New Tile" feature steps


Answer: In SAP Fiori, "Save as a New Tile" allows you to create a persistent shortcut to a currently running Fiori app or a filtered view of a worklist, saving your specific selections, filters, or the app's current state. Clicking this tile later will launch the app or worklist directly in that saved, pre-configured state, saving you time by eliminating the need to re-enter the same filters or settings each time. 
This feature is much easier compare to the Transaction Variant in the ECC system or S/4 Backend Transaction Code. AND the Fiori feature is available for both the Classic Fiori Group as well the new "Spaces and Pages".
See the following Blog Posts on how to "Save as a New Tile" with new Filter and new Columns Display:

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Question: MM Enterprise Structure 


Answer: Enterprise Structure assignment rules in MM:
• Cross-Company Scenario - A Purchasing Organization assignment to Company Code is OPTIONAL (note Purchasing Organization 1 is NOT assigned to any Company Code), in this case Purchasing Organization 1 can issue Purchase Order for Plants which are assigned to different Plants. Example, the Purchasing Organization 1 is assigned to Plant 1, Plant 2 and Plant 3 which are respectively assigned to Company Code 1 and Company Code 2. SAP refer to this as Cross-Company Scenario.
• Cross-Plant Scenario within a Company - A Purchasing can only assigned to ONE Company Code (not more than 1) and note Purchasing Organization 2 is assigned to the Company Code 2. AND do note that Plant 2 and Plant 3 are both assigned to the same Company Code 2 as well as Purchasing Organization. In this case, the Purchasing Organizaiton 2 can issue PO for Plant 2 and Plant 3 only. 
• Plant Specific Scenario - The relationship of 1:1 between Purchasing Organization and Company Code. AND also with a 1:1 relationship between Purchasing Organization and a Plant. 

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Question: MM Fiori App to Create PO, Goods Receipt with reference to PO, and Invoice Verification 


Answer: SAP Material Management (MM) is a one of the Logistics module within SAP's Enterprise Resource Planning (ERP) system (or the current S/4HANA system), designed to manage the procurement or materials and services, storage of material, consumption of materials, and invoice verification of supplier invoice to the accounting component. The MM module plays a key role in an organization's supply chain by automating and streamlining processes related to materials, inventory, and vendor Accounts management via FI-Accounts Payable.
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 Purchase Order 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 (Purchasing), IM (Inventory Management), LIV (Logistics Invoice Verification) to MRP via CBP (Consumption Based Planning).  
SAP new name for MM is Procure-To-Pay (P2P) or Purchase-To-Pay (P2P) process, these are 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:

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Question: Review of Enterprise Structure, Primary Master Data, Secondary Master Data, and Process.

 
Answer: The following are the details of understanding the process design principles.
Enterprise Structure:
Company Code is the FI Enterprise Structure for MM-FI integraiton.
Purchasing Organization is MM Enterprise Structure unit for Purchasing Management.
Plant is where Logistics activity takes place for MM process.
Storage Location is for Stock scenario. 
Purchasing Group is strictly not part of the MM Enterprise Structure as it is not assigned directly to any Enterprise Structure in the SPRO (IMG). The Purchasing Group is assigned to the BP Vendor (at the Pur.Org level) as well as the Material Master (at the Plant level). 
Primary Master Data: 
Business Partner vendor is created for the Company Code (Accounting Parameters eg: Reconciliation Account and non-PO based Payment Term).
Material Master is created for the Plant for the Procurement and Storage Activity.
Secondary Master Data: 
Purchasing Info Record specifies the negotiated price and purchasing terms by the Purchasing Organization to the Business Partner Vendor for the Materials receiving into a Plant.
Process: (Stock Procurement Scenario): 
Header PO: 
Business Partner Vendor is the Vendor for the PO issued.
Company Code is legally responsible for the Purchasing Document.
Purchasing Organization is responsible for the PO (Logistics arrangement). 
Purchasing Group is to manage the Life-Cycle of the PO.
PO item level:
Material is the Purchasing Item of intent to the BP Vendor.
Plant is where Vendor will send the Material to.
Storage Location is for MM Inventory Management for Goods Receipt of the Material for Storage.
Purchasing Info Record provides the Price and Purchasing Terms (when the BP Vendor, Material, Plant, Purchasing Organization matches the PIR).

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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: 

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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 GR indicator and GR non-valuated indicator in the PO item detail.

Answer: In SAP, a "GR Non-Valuated" indicator is a setting in a Purchase Order (PO) that prevents financial accounting postings from being made at the time of Goods Receipt (GR). Instead, the financial posting, which includes the value of the goods, occurs only when the supplier's Invoice Receipt (IR) is processed. This indicator is used for items where the physical receipt of goods does not correspond to a financial transaction at that moment, such as for fixed assets to comply with regulations or for items with multiple account assignments.
How it works:
1. GR is posted without financial impact: When the GR non-valuated indicator is active, receiving the material updates the quantity in inventory, but no financial entry is created in the general ledger. 
2. Financial Posting at Invoice Receipt: The actual valuation and financial posting are deferred to the invoice verification stage (MIRO transaction). 
3. GR/IR Clearing Account: If GR non-valuated indicator is active, no GR/IR Clearing Account is posted at Goods Receipt step and therefore, there will not be any posting the the G/IR Clearing Account in time of  invoice verification stage (MIRO transaction). The Expenses Account is directly posted at time of invoice stage. 
When to use it:
• Fixed Assets: To comply with legal requirements in some countries, which state that an asset acquisition cannot be recorded until a valid invoice is received. 
• Multiple Account Assignment: When a single purchase order line item is assigned to several cost centers, plants, or other accounts. 
• Cost Centers: To track the receipt of items for direct consumption to a cost center without creating a value entry at the GR stage. 
• Internal Orders: For procurement related to an internal order with budget allocation, where the financial impact is tied to the order's budget rather than the goods receipt. 
• Service Materials: For certain items like services (DIEN material type), where a valuated GR is not relevant. 
See the following Blog Posts on the detail SAP demonstration of the above case:

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Question: Review Source Determination and Automatic PR to PO creation.


Answer: SAP Source Determination is a process that allows the SAP system to automatically suggest or assign suitable suppliers (sources of supply) for a material when creating a purchase requisition or during a material requirements planning (MRP) run. It uses pre-defined criteria and master data like source lists and quota arrangements to identify the most appropriate vendor or internal source. This streamlines procurement by finding the best source based on factors such as price, quality, and delivery history, assigning it directly or providing it as a suggestion in the source of supply tab.
To create an SAP Automatic Purchase Order (PO) from a Purchase Requisition (PR), first enable the "Automatic PO" checkbox in both the material master and vendor master records. Next, maintain the source list and the purchase info record for the relevant material and vendor. Then, create a purchase requisition, ensuring you assign a source of supply. Finally, run the ME59N transaction to convert the PR into an automatic PO. 
Prerequisites:
1. Material Master: In the material master (transaction MM02), go to the purchasing view and select the "Automatic PO" indicator at the plant level of the material master
2. Vendor Master: In the vendor master (transaction XK02 for ECC or BP for S/4 HANA), go to the purchasing data for the purchase organization and select the "Automatic PO" checkbox. 
Steps to Create the Automatic PO: 
1. Create Purchase Requisition (PR): Create a purchase requisition using transaction ME51N. 
2. Assign Source of Supply: In the PR, ensure you assign the source of supply (the vendor and material from the info record) either directly in ME51N, ME52N, ME56 or ME57.
3. Execute Automatic Conversion: Run the ME59N transaction. 
4. Provide Details: To filter the PRs can enter combination of Purchasing Group, Vendor, Purchasing Organization, and Plant. Then, select the Combine or Split criterion of Purchasing Group, Plant, Item Category etc. Recommended also to set "Detailed Log = 2 for All Messages", the use "TEST Run" mode to determine results. 
5. Generate PO: Execute the transaction using "ACTUAL Run", and the system will automatically create the purchase order from the PR automatically.
See the following Blog Posts:

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