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Friday, October 31, 2025
Wednesday, October 29, 2025
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Tuesday, October 28, 2025
Q&A in Class (2025-10-30) S46800
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Question: Does the Delivery Plant assignment to Sales Ord + DC combination in the Enterprise Structure combination determine the priority of Delivery Plant assignment in the Sales Order?
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Answer: NO, the configuration transaction "OVX6" of the above in the Enterprise Structure is the pre-requisite ALLOWED delivery Plant(s) to be selected in the following Master Data:
1. Customer-Material Info Record (VD51, VD52)2. Ship-to Party (BP3. Material Master Sales Area (MM01, MM02)
If the Delivery Plant is not defined as the ALLOWED plant for the Sales Org + DC combination, then it is not available as selection in the 3 Master Data above.
Note: SAP can select a different Delivery Plant via Global ATP (GATP) in the APO system (released since 2000) or the Advanced ATP (aATP) (released for S/4HANA in 2015). Both features uses Rules and Alternative Plant determination to find a more suitable location when the requested plant has insufficient stock. This function, in GATP is referred to as "Location Substitution" or "Alternative-Based Confirmation", allows the system to automatically propose a different plant and/or substitute material to fulfill a Sales Order, based on pre-configured rules.
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Question: What are the new functionalities related to Cross-Application SD-MM processes?
Answer: There are no documented full list of functionalities found but the following are known functinalites as at S/4HANA 2023 (probably the following in not a conclusive list).
- Advanced Intercompany Sales for 2-or-more Subsidiaries (External Customer) with integrated + automated intercompany sales order, purchase order, goods movement across the different subsidiaries.
- The Advanced Intercompany Sales process in SAP S/4HANA is an enhanced solution that includes and directly supports Advanced Intercompany Stock Transfer (STO) as part of the same integrated offering. These processes are built on the same framework to automate intercompany transactions between affiliated companies.
- SAP S/4HANA "Value Chain Management (VCM)" (available since 1511) is an integrated solution that provides end-to-end visibility and control over supply chain processes, from procurement to delivery. The visibility is only offered via a Fiori VCM Cockpit Fiori App.
- Collaboration via a business network for cross-application MM (Materials Management) and SD (Sales and Distribution) involves using a platform like SAP Business Network to connect buyers and suppliers, allowing for real-time, integrated data flow between the two modules. This process improves inventory management, streamlines order fulfillment, and ensures greater accuracy by providing visibility into supply chain processes like material availability, production status, and fulfillment status across multiple parties.
- The Advanced Subcontracting functionality in S/4HANA including simplified planning with subcontracting MRP areas, real-time integration with planning tools like SAP IBP, and robust master data management. The process is more streamlined and efficient than in previous versions in ECC, allowing for separate planning of each subcontractor without needing a specific material master for every component.
- S/4HANA now also supports (PM-MM-SD integration) for Advanced Subcontracting for Refurbishment of Equipment-Material-Serial through several features, including the use of refurbishment orders for external repair, the Subcontracting Monitor for process control, and a dedicated Subcontracting Cockpit Fiori app for managing purchasing documents. This allows companies to send parts to external service providers for repair and then track the process and return the refurbished items to their own stock.
- SAP S/4HANA Advanced Variant Configuration (AVC) is the next-generation solution for managing highly customizable products within SAP S/4HANA, integrating with SD, MM, and PP to handle complex sales, planning, and production scenarios. It uses enhanced modeling tools with a modern Fiori-based interface and leverages the HANA in-memory database for improved performance, offering more sophisticated rule-based configuration compared to the older LO-VC. AVC streamlines processes from engineering to sales by simplifying the management of product variants through features like advanced simulation and embedded.
- While EWM integration to SD and MM is not new as it was already available for ECC. However, integration of TM-EWM-SD-MM is only available for S/4HANA system. Basic and Advanced Transportation Management (TM) integration with SD, MM and EWM will be replacing the classing LE-TRA (Transportation) which will obsolete in 2027 (or 2030). Both SD Outbound Delivery and MM Inbound Delivery with SAP TM generates the Freight Unit (then Freight Order). The integration between SAP Transportation Management (TM) and SAP Extended Warehouse Management (EWM) links transportation and warehouse planning. A key aspect is the replication of SAP TM's Freight Order into an EWM Transportation Unit (TU), which streamlines activities like loading and staging within the warehouse at the TU level instead of individual deliveries. After warehouse tasks are completed in EWM, updates are sent back to TM to update the corresponding Freight Order and its associated Freight Units.
- The SAP Plants Abroad is a feature in certain versions of SAP S/4HANA, but not in all, such as the Public Cloud edition. In the on-premises and Private Cloud editions, it is used for cross-border tax reporting and management, including VAT and Intrastat. For Public Cloud and other cloud-based systems, a similar functionality called Foreign Plant or RITA is used instead.
Answer: SAP's "Plants Abroad" functionality allows a single company code to manage inventory and tax reporting for multiple physical locations in different countries, primarily in the EU (European Union) and GCC (Gulf Cooperation Council), without setting up separate legal entities. It automates VAT and Intrastat postings for cross-border stock movements and ensures the correct VAT registration numbers are used on sales and purchasing documents. This is achieved by assigning foreign plants to the home country's company code and configuring tax codes with a specific "reporting country" field.
Setting up Plants Abroad in SAP S/4HANA involves configuring the system to handle Value-Added Tax (VAT) and other tax-related reporting for a company code operating across multiple countries. The process requires configuration in Financial Accounting (FI), Materials Management (MM), and Sales and Distribution (SD).• On-premises and Private Cloud: The traditional "Plants Abroad" functionality is available for managing cross-border stock movements and tax reporting.• Public Cloud: This version uses a different solution called "Foreign Plant" or RITA to achieve the same outcome.
• Essentials Edition: In the Essentials edition, "Plants Abroad" is not supported due to complex tax requirements, and instead, company codes are recommended for inter-company transactions to manage taxation.
Possible Scenario description to be tested soon:
A "SAP Plants Abroad" demo involves showing a business scenario where a company in one country (e.g., Germany) sells goods to a customer in another country (e.g., France) and the goods are delivered directly from a plant in the second country. The demo typically shows the process of creating a special "Plants Abroad" transaction that handles the required tax and reporting for this cross-border sale. (this scenario example will likely be available in the next S46800 colleciton)
Step 1: Activate Plants Abroad
- Go to SPRO > Financial Accounting > Financial Accounting Global Settings > Tax on Sales/Purchases > Basic Settings > Plants Abroad > Activate Plants Abroad.
- select the check-box to activate the functionality. This enables new fields in other configurations, such as the "Reporting Country".
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Step 2: Tax code configuration and FI related configuration
- Key steps for setting up Plants Abroad include entering foreign
- VAT registration numbers
- Defining country settings for tax reporting
- Defining tax codes with the reporting country
- Assigning the country to the tax calculation procedure.
- Exchange Rate Type is also required for the Plant Abroad Country. This setting is essential for tax reporting purposes, as you must define the exchange rate type and country currency for each foreign country to correctly handle cross-border transactions and VAT reporting.
Step 3: MM and SD configuraiton
- Additional configuration involves setting up shipping data for plants in Materials Management and configuring pricing procedures and billing documents in Sales and Distribution. Master data for materials, customers, and vendors also needs to be created or updated. After configuration, the process supports transactional flows like stock transfers and sales, generating accounting documents with correct tax codes.
Click below for official SAP documentation on the S/4HANA Financials "Plant Abroad" functionalities:
UPDATED (Oct.31.2025) on Detail steps required as Below:
• Step 1: Plants Abroad assignment to the Local Selling Company
IMG - Enterprise Structure > Assignment > Logistic-General > Assign Plant to Company OR OX18
(Verify the Plants Abroad in a different country (example in France) and Local Plant (example in Germany) is assigned to the Local Selling Company Code (Germany)
• Step 2: Activate Plants Abroad
IMG - Financial Accounting > Financial Accounting Global Settings > Tax on Sales/ Purchases > Basic Settings > Plants Abroad > Activate Plants Abroad
(SAP's "Plants Abroad" functionality is activated at the client level, which makes the functionality available across the entire SAP client. This activation adds a "Reporting country" field to transactions and tax code setups, which is essential for correctly reporting VAT in the relevant country.)
• Step 3: Enter Foreign VAT Registration Number
IMG - Financial Accounting > Financial Accounting Global Settings > Tax on Sales/ Purchases > Basic Settings > Plants Abroad > Enter VAT Registration Number for Plants Abroad or RTA
(A business does not get a single "VAT registration number for plants abroad" but needs a separate, country-specific VAT number for each foreign country where it is registered to conduct business. For companies using the SAP "Plants Abroad" functionality, this refers to a system feature that manages multiple VAT registrations within a single company code, allowing the system to use the correct VAT number for each country's transactions, instead of creating separate company codes for each one.)
• Step 4: Activate Plants Abroad
IMG - ABAP Platform > General Settings > Set Countries > Define Countries/Regions OR T-code OY01
(Activating "Plants Abroad" adds a new currency field and an exchange rate field in the "Set Country Global Parameters" configuration, which is where this assignment takes place. Update the "Country Currency" and "Exchange Rate" fields as needed for your foreign plants to ensure correct reporting and currency translation in this configuration.)
• Step 5: Configure Tax Code and Tax Reporting
IMG - Financial Accounting > Financial Accounting Global Settings > Tax on Sales/ Purchases > Calculation > Define Tax Code for Sales and Purchases OR T-code FXTP
(For every Tax Code defined for the Country (Original Company Code), in the "Properties" screen, a field called "Reporting C/R (Reporting Country)" which is available only if the "Plants Abroad" setting has been Activated". The "Reporting Country" field will appear on the selection screen for VAT return reports and EC sales lists once the functionality is active.)
An actual scenario will be created and posted when a dedicated server from SAP is available with "Plants Abroad" activation where settings and simulation will be allowed for demonstration this scenario AND possible additional Configurations required.
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Question: Unable to perform a 1-step posting (GI and GR) for Intracompany STO with Message "M7018"
Answer: Missing Storage Location at Receiving Plant cause the problem.
See the following Blog Posts on Temporary Solution and Permanent Solution.
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Question: Unable to Release Accounting Document for Intercompany STO Billing step?
Answer: Missing Pricing Procedure cause the problem.
See the following Blog Posts:
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Question: MM-PM-SD Cross-Application Integration for Refurbishment Process for Material with Split Valuation using PM Maintenance Order - PR - Subcontracting PO - Outbound Delivery - GR with Dismantling and Installation to Functional Location Process review.
Answer: The Blog Posts below is PART 1 for Process without SD Outbound Delivery; PART 2 with SD Outbound Delivery will be posted soon in the future.
See the following Blog Posts:
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Monday, October 27, 2025
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Sunday, October 26, 2025
Friday, October 24, 2025
Thursday, October 23, 2025
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Wednesday, October 22, 2025
Q&A in Class (2025-10-24) S4500
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Question: How to Change Valuation Class for Material Master?
Answer: The scenarios in the Blog Posts below is based on S/4HANA 2023.
See the following Blog Posts for the details of how to change the Valuation class in the Material Master for different scenarios:
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Question: How to implement multiple ordering address for Business Partner Vendor?
Answer: A Business Partner vendor BP69 was created where Goods Receipt and Accounting Payment will be processed via BP69. However the vendor BP69 has 2 branches where the Ordering (Ordering Address) of the PO will be issued to. The Ordering Address to be created will be BP69-1 and BP69-2. The following Blogpost will show the steps recommendation to achieve this requirement.
CLICK below Blogpost to see the Presentation:
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Question: Review of Material with Valuation Type for scenario PR for Stocks and Consumable scenario via S/4HANA 2023 MM Process.
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Answer: Here in this demonstration, we look at a Procurement Process flow case for the following:
• Business Partner with 2 Ordering Address
• Material with Split Valuation
• Stock and Consumable
• Single and Multiple Account Assignment
• GR Valuated and GR Non-Valuated• Purchase Requisition creation• Convert PR to Purchase Order• Approval of the Purchase Order• Goods Receipt (review FICO Posting)• Invoice Verification (review FICO Posting)
CLICK below Blogpost to see the Presentation:
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Question: What is the difference between Lot Size key "HB" and "H1"?
Answer: The Blog Post will be attempting to demonstrate the parameters in MRP Type "VB" and "V1" coupled with Lot Size Key "HB" and "H1" to use to replenishment of Stocks to "Maximum Stock Level".
CLICK below Blogpost to see the Presentation:
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Question: Show the Query to list Materials with MRP Type and related Planning field from MRP1,2,3,4 data views.
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Answer: The Query will show how to link table MARA and MARC to include fields related to MRP in a Query report for Material Listing with MRP Type etc and download to Excel.
CLICK below Blogpost to see the Presentation:
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Question no 4074 : Physical Sample Drawing Procedure basic setup
In SAP Quality Management as at S/4 1909, which of the following settings are pre-requisites for Physical Drawing Procedure Inspection Lots ?
(more than one answers)
A) Sampling Procedure require Inspection Point type "Sample Management".
B) Master Inspection Characteristics require Inspection Point type "Sample Management".
C) Material Master QM view Inspection type activated with Inspection Point type "Sample Management".
D) An appropriate Inspection Point to be assigned to Inspection Plan header.
E) An appropriate Inspection Point to be assigned to Material Specification.
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Answer: A, D
A, B, C) The Inspection Point type "Sample Management" is an indicator found in Sampling Procedure which is a pre-requisite for the scenario. However, there is no setting in the Master Inspection Characteristics OR Material Master QM view that is required to activate for "Physical Sample Management".
D, E) Only the Inspection Plan header has and must be assigned with an appropriate Inspection Point with an Inspection Point type "Physical Sample". It is important to note that Material Specification do not support Sampling with "Physical Sample".
(more than one answers)
A) Sampling Procedure require Inspection Point type "Sample Management".
B) Master Inspection Characteristics require Inspection Point type "Sample Management".
C) Material Master QM view Inspection type activated with Inspection Point type "Sample Management".
D) An appropriate Inspection Point to be assigned to Inspection Plan header.
E) An appropriate Inspection Point to be assigned to Material Specification.
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Answer: A, D
A, B, C) The Inspection Point type "Sample Management" is an indicator found in Sampling Procedure which is a pre-requisite for the scenario. However, there is no setting in the Master Inspection Characteristics OR Material Master QM view that is required to activate for "Physical Sample Management".
D, E) Only the Inspection Plan header has and must be assigned with an appropriate Inspection Point with an Inspection Point type "Physical Sample". It is important to note that Material Specification do not support Sampling with "Physical Sample".
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Tuesday, October 21, 2025
Monday, October 20, 2025
Question no 4073 : FIORI App "Transfer Stock - In-Plant" capabilities
In Material Management as at S/4HANA 2022 (On Premise), the FIORI App "Transfer Stock - In-Plant" as below
which of the following processing is not possible:
(more than one answers)
A) Stock Type to Stock Type Transfer within the same Plant.
B) 1-step or 2-step transfer of Storage Location within the same Plant.
C) 1-step transfer within the same Plant or cross Plant.
D) 1-step transfer within the same Plant.
E) Transfer from Consignment Stock to Own Stock.
Answer: A, D, E
which of the following processing is not possible:
(more than one answers)
A) Stock Type to Stock Type Transfer within the same Plant.
B) 1-step or 2-step transfer of Storage Location within the same Plant.
C) 1-step transfer within the same Plant or cross Plant.
D) 1-step transfer within the same Plant.
E) Transfer from Consignment Stock to Own Stock.
Answer: A, D, E
- The App allows the following:
- Transfer Stock Types within the same Storage Location (Blocked Stock to QI Stock Type)
- Transfer Postings or Stock Transfers for Batches within the same Plant
- Transfer of Special Stocks ("K" Consignment, "E" Sales Order Stock, "Q" Project Stock) from SLoc to SLoc within the same Plant (meaning transfer from "K" to "K", "E" to "E", or "Q" to "Q")
- Transfer of Special Stocks ("K" Consignment, "E" Sales Order Stock, "Q" Project Stock) to Own Unrestricted Stocks
- Transfer Stocks with or without Shelf-Life Expiration (Have to personally tested this capability).
- Supports Material Transfers for Materials in Batches and Serial numbers are possible according to the Fiori App documentation as at S/4HANA 2022 (Have to personally tested this capability).
Sunday, October 19, 2025
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Friday, October 17, 2025
Thursday, October 16, 2025
Wednesday, October 15, 2025
Tuesday, October 14, 2025
Q&A in Class (2025-10-17) TS410
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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
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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).
In-memory database: MRP Live uses the in-memory computing power of SAP HANA for significant performance gains over classic MRP.See the Blog post below:
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.
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
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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.
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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.
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Questions: Review Route Determination.
Answer: IMG - Logistics Execution - Shipping - Basic Shipping Functions - Route - Maintain Route Determination.
See the following Blog Post.
See the following Blog Post.
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Answer: Account Determination for Post Goods Issue for an Outbound Delivery of a Make-to-Stock Material uses Transaction Event Key BSX and GBB.
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:
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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:
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Question: Review on Purchase-to-Pay or Materials Management (MM) Process.
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:
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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) - SimulationsPlanning: Master Production Scheduling (MPS) - Planning for Finished GoodsPlanning: Material Requirement Planning (MRP) - Planning for Raw MaterialsPlanning: Embedded Production Planning & Detailed Scheduling (PPDS) - Advanced PlanningExecution: PPDI Discrete Manufacturing Execution using Production OrdersExecution: PPDI Discrete Manufacturing Execution using Repetitive ManufacturingExecution: PPPI Process Manufacturing Execution using Processn OrdersExecution: 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/
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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
See the following Presentations for a Basic flow of SD Sales Order to Incoming Payment:
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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.
• 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:
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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:
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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:
Click below to view an example of Project with Network Settlement process steps:• 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.
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