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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.
• 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)
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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.
• 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
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Questions: Review 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
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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
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