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PUBLIC Document Version: 7.0 2021-10-14 SAP S/4HANA 1709 Feature Scope Description THE BEST RUN © 2021 SAP SE or an SAP affiliate company. All rights reserved. Content 1 SAP S/4HANA - Feature Scope Description. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 2 SAP S/4HANA Enterprise Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11 2.1 Functions for Implementing SAP S/4HANA Solutions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 2.2 Data Protection. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 2.3 Industry coverage in SAP S/4HANA Enterprise Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13 2.4 Asset Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Maintenance Operations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 2.5 Finance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Financial Planning and Analysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23 Accounting and Financial Close. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .26 Treasury and Financial Risk Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 Financial Operations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 Governance, Risk, and Compliance for Finance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .44 2.6 Human Resources. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 Core HR and Payroll. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 Time and Attendance Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .50 Employee Central Connectivity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 2.7 Manufacturing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 Manufacturing Engineering and Process Planning. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 Production Planning. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .54 Manufacturing Execution for Discrete Industries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 Manufacturing Execution for Process Industries. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68 Outsourced Manufacturing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71 Quality Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76 Maintenance, Repair, and Overhaul. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78 Maintenance Operations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .81 2.8 R&D / Engineering. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90 Enterprise Portfolio and Project Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90 Product Development Foundation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96 2.9 Sales. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104 Order and Contract Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104 2.10 Service. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115 Service Agreement Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115 2.11 Sourcing and Procurement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117 Spend Analysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117 Supplier and Category Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .119 2 PUBLIC SAP S/4HANA 1709 Content Sourcing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121 Contract Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124 Operational Procurement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125 Invoice Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130 2.12 Supply Chain. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133 Basic Inventory, Warehousing, and Transportation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .133 Production Planning. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150 Logistics. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150 2.13 Analytics Technology. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153 Process Performance Monitoring. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153 Report Design Modeler. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 154 Query Designer. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 155 Analysis Path Framework. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 156 Predictive Models. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .156 2.14 Enterprise Technology. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157 Enterprise Information Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157 Process Management and Integration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 158 Business Event Handling. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159 SAP S/4HANA Output Control. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159 2.15 Country/Region-Specific Features in SAP S/4HANA Enterprise Management. . . . . . . . . . . . . . . . . 160 Americas. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .160 Europe. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170 Africa/Middle East. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 201 Asia-Pacific. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 206 3 SAP S/4HANA Enhanced LoB Functions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 218 3.1 Asset Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 218 Maintenance Operations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 218 Resource Scheduling. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 221 Geographical Enablement Framework for Asset Management. . . . . . . . . . . . . . . . . . . . . . . . . 222 Environment, Health and Safety. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 223 3.2 Commerce. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 231 Subscription Billing and Revenue Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 231 3.3 Database and Data Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 236 Enterprise Information Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 236 3.4 Finance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 239 Financial Planning and Analysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .239 Accounting and Financial Close. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .240 Treasury and Financial Risk Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 247 Commodity Risk Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .261 Financial Operations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 265 Contract Accounting. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 268 SAP S/4HANA 1709 Content PUBLIC 3 Real Estate Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 268 3.5 Manufacturing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 271 Production Planning. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 271 Manufacturing for Production Engineering and Operations. . . . . . . . . . . . . . . . . . . . . . . . . . . .273 Extended Production Scheduling and Delivery Planning. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 279 3.6 R&D / Engineering. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 280 Enterprise Portfolio and Project Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .280 Product Lifecycle Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 294 Product Compliance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 305 3.7 Sales. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 308 Commodity Sales. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 309 Incentive and Commission Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 313 3.8 Sourcing and Procurement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .314 Operational Procurement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 314 3.9 Supply Chain. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 320 Advanced Inventory, Warehousing, and Transportation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 320 Extended Production Scheduling and Delivery Planning. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .333 3.10 Enterprise Technology. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .334 Digital Assistance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 334 Geographical Enablement Framework. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 335 Legal Content Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 336 4 SAP S/4HANA Industry-Specific LoB Functions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 338 4.1 Agriculture. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 338 Agricultural Contract Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 338 4.2 Automotive. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 342 Vehicle processes for Wholesale and Retail. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .342 4.3 Banking. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 344 SAP Deposits Management for Banking, SAP S/4HANA Edition. . . . . . . . . . . . . . . . . . . . . . . . 344 SAP Loans Management for Banking, SAP S/4HANA Edition. . . . . . . . . . . . . . . . . . . . . . . . . . 345 SAP Collateral Management for Banking, SAP S/4HANA Edition. . . . . . . . . . . . . . . . . . . . . . . 346 SAP Reserve for Bad Debts for SAP S/4HANA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 347 4.4 Insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .349 Policy Management for Insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 349 Insurance Product Engine. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .350 Claims Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 350 Insurance Billing and Payments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 351 Compensation Operations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 352 Statutory Reporting for Insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 353 4.5 Oil & Gas. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 354 Production and Revenue Accounting. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 354 Inventory and Movement Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 357 4 PUBLIC SAP S/4HANA 1709 Content Bulk Supply Chain Operations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 372 Upstream Operations Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 375 4.6 Professional Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 379 Projects and Engagement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 379 Resource Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .379 Service Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 380 4.7 Public Sector. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 381 Finance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 381 4.8 Retail and Fashion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .392 Retail and Fashion Foundation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .392 Retail for Merchandise Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 400 Fashion and Vertical Business. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 406 4.9 Utilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 409 Finance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 409 Metering. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 412 Sales. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .415 4.10 SAP Waste & Recycling. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 419 Waste Disposal Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 419 Finance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .425 Bill to Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 425 Waste Disposal Facility Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .426 5 SAP S/4HANA Compatibility Packs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 430 5.1 Asset Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 431 Maintenance Operations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 431 5.2 Finance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 432 Accounting and Financial Close. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 432 Travel Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 440 Receivables Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 441 5.3 Human Resources. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 442 Core HR and Payroll. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 442 Talent Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 455 Time and Attendance Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 459 5.4 Manufacturing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 464 Quality Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 464 Production Planning. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .465 Manufacturing Execution for Discrete Industries. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 467 Manufacturing Execution for Process Industries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 471 5.5 R&D / Engineering. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 475 Enterprise Portfolio and Project Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 475 Product Safety and Stewardship. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 478 Product Development for Discrete Industries. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 485 SAP S/4HANA 1709 Content PUBLIC 5 5.6 Sales. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 486 SD Analytics Based on Logistics Information System. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 486 SD Rebate Processing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 487 Empties Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 488 5.7 Service. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 490 Service Master Data Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .490 Service Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 492 Service Parts Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 497 Service Agreement Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 498 5.8 Sourcing and Procurement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 499 Subsequent Settlement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 499 5.9 Supply Chain. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500 Efficient Logistics and Order Fulfillment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500 5.10 Industries. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 504 Defense and Security. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 504 Engineering, Construction, & Operations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .511 Higher Education and Research. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 512 Mill Products. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 517 Oil & Gas. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 518 Public Sector. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .525 Retail. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 526 6 Integration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 529 6 PUBLIC SAP S/4HANA 1709 Content Document History Caution Before you start the implementation, make sure you have the latest version of this document. You can find the latest version at the following location: https://help.sap.com/s4hana_op_1709 The following table provides an overview of the most important document changes. Version Date 1.0 2017-09-15 1.1 2017-09-27 1.2 2017-10-11 1.3 2017-10-26 1.4 2017-11-23 1.5 2017-12-19 1.5 2017-12-19 1.6 2017-12-22 2.0 2018-01-31 2.1 2018-02-05 2.2 2018-02-16 2.3 2018-03-28 2.4 2018-04-05 2.5 2018-05-18 3.0 2018-05-18 3.1 2018-08-10 3.2 2018-08-15 3.3 2018-10-29 Description Initial Version for SAP S/4HANA 1709 Fashion and Vertical Business added in LoB Products for specific industries under Retail and Fashion Corrections in LoB Products in area Sourcing and Procurement Corrections in Compatibility Packs and Enterprise Management in area Service Added Analysis Path Framework to Analytics Technology in Enterprise Management Minor corrections Minor corrections Minor corrections Version for SAP S/4HANA 1709 Feature Package Stack 01 Minor corrections Minor corrections Minor corrections Minor corrections Minor corrections Version for SAP S/4HANA 1709 Feature Package Stack 02 Corrections in Enterprise Management in area R&D / Engineering Change of document layout Corrections in Enterprise Management in area Sales Minor corrections SAP S/4HANA 1709 Document History PUBLIC 7 Version Date 3.4 2019-10-14 3.5 2019-11-20 4.0 2020-04-15 4.1 2020-06-24 4.2 2020-07-27 4.3 2020-08-28 4.4 2020-09-30 5.0 2020-10-21 5.1 2021-04-01 6.0 2021-04-14 6.1 2021-06-01 7.0 2021-10-14 Description Revised feature description for Saudi Arabia due to an error in the editorial process Minor corrections Version for SAP S/4HANA 1709 Support Package Stack 06 Minor corrections Minor corrections Correction of editorial error Minor corrections Version for SAP S/4HANA 1709 Support Package Stack 07 Minor corrections and information added regarding SAP S/4HANA Cloud, private edition Version for SAP S/4HANA 1709 Support Package Stack 08 Titles of chapter 3 and 4 adjusted to 3 SAP S/4HANA Enhanced LoB Functions and 4 SAP S/ 4HANA Industry-Specific LoB Functions, and minor corrections Version for SAP S/4HANA 1709 Support Package Stack 09 and information added regarding SAP S/4HANA Cloud, private edition 8 PUBLIC SAP S/4HANA 1709 Document History 1 SAP S/4HANA - Feature Scope Description With SAP S/4HANA (SAP Business Suite 4 SAP HANA), SAP is providing a new product and a next generation of business applications simple enterprise software for big data and designed to help you run simple in the digital economy. The SAP S/4HANA family is fully built on the in-memory platform SAP HANA. Using the advanced potential of SAP HANA, SAP S/4HANA is designed for your digital business and provides an instant insight by using a single source of truth, real-time processes, dynamic planning and analysis. With SAP Fiori user experience and less complex data model it is designed to run simple, and in parallel reduces the data footprint of your company. SAP S/4HANA is also already connected to business networks and company-internal collaboration networks (for example, SAP Jam Collaboration) and prepared for the Internet of things. With all these aspects, SAP is protecting your investments by facilitating next generation business applications. SAP S/4HANA is composed of: SAP S/4HANA Enterprise Management SAP S/4HANA Enterprise Management is designed for enterprises across industries that need a deep and broad level of functionality combined with a high degree of flexibility in customization. SAP S/4HANA Enhanced LoB Functions SAP S/4HANA Enhanced LoB Functions enhance core functions of SAP S/4HANA Enterprise Management to provide additional business benefit for your line of business (LoB). Please note that you might need a separate license. SAP S/4HANA Industry-Specific LoB Functions SAP S/4HANA Industry-Specific LoB Functions enhance core functions of SAP S/4HANA Enterprise Management to provide industry specific business benefit for your line of business (LoB). Please note that you might need a separate license. SAP S/4HANA Compatibility Packs Please note that the specific usage rights for SAP S/4HANA Compatibility Packs are set forth in the Software Use Rights Document. Alternatively, this offering is available as SAP S/4HANA Cloud, single tenant edition. For further information on SAP S/4HANA Cloud, single tenant edition, please contact your SAP Account Executive. SAP S/4HANA Cloud, private edition. Please note, that the usage of some features mentioned in this document might be unavailable, restricted and/or might require a separate license in SAP S/4HANA Cloud, private edition. Features that are not available or are restricted in SAP S/4HANA Cloud, private edition are marked accordingly in this document. For further information on SAP S/4HANA Cloud, private edition, please contact your SAP Account Executive. About this document This feature scope description shows you which features are provided with SAP S/4HANA. In addition, this feature scope description also defines the product documentation for SAP S/4HANA. SAP S/4HANA 1709 SAP S/4HANA - Feature Scope Description PUBLIC 9 Product documentation The following product documentation is available for SAP S/4HANA: This feature scope description Information on installation You can find the relevant information on how to install SAP S/4HANA at http://help.sap.com/ s4hana_op_1709. Information on conversion You can find the relevant information on how to convert from an existing SAP Business Suite product to SAP S/4HANA at http://help.sap.com/s4hana_op_1709 Information on User-Interface (UI) technology You can find the relevant information on the User-Interface (UI) technology for SAP S/4HANA at http:// help.sap.com/s4hana_op_1709 Information on security You can find the relevant security information for SAP S/4HANA at http://help.sap.com/s4hana_op_1709 Information on operation You can find the relevant information on how to operate SAP S/4HANA at http://help.sap.com/ s4hana_op_1709 10 PUBLIC SAP S/4HANA 1709 SAP S/4HANA - Feature Scope Description 2 SAP S/4HANA Enterprise Management SAP S/4HANA Enterprise Management is designed for enterprises across industries that need a deep and broad level of functionality combined with a high degree of flexibility in customization. The following features are provided as part of SAP S/4HANA Enterprise Management. Features that are not part of SAP S/4HANA Enterprise Management might require a separate license. For further information, please contact your SAP Account Executive. 2.1 Functions for Implementing SAP S/4HANA Solutions Business Background SAP S/4HANA offers you an assisted way to implement the features that you want to use in your SAP S/ 4HANA system. Key Features Key Feature Use Explore the solution scope Users can display the selected business processes that are supported by the solution and display information about the functional scope of each business process. Configure and activate the solution scope Key users can activate a pre-configured solution and adjust the business con figuration for this pre-configured solution by viewing and adjusting basic con figuration settings using configuration activities. They can also add customerspecific business processes and activities. Data Migration Key users can start and execute data migration using pre-defined migration objects and can get overviews and statuses for their migration projects. 2.2 Data Protection Business Background Data protection is associated with numerous legal requirements and privacy concerns. In addition to compliance with general data protection acts, it is necessary to consider compliance with industry-specific SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 11 legislation in different countries/regions. SAP provides specific features and functions to support compliance with the relevant legal requirements and data protection, for example, functions are available for various applications that simplify the blocking and deletion of personal data by using SAP Information Lifecycle Management (ILM). Note In the majority of cases, compliance with data protection laws is not a product feature. SAP software supports data protection by providing security features and specific data protection-relevant functions such as functions for the simplified blocking and deletion of personal data. SAP does not provide legal advice in any form. The definitions and other terms used in this document are not taken from any given legal source. The user acknowledges that management of data in an extension scenario deviates from the management of data in the standard scenarios. Extension scenarios include, for example, the creation and usage of extension items such as custom fields or custom business objects on the part of the user. The customer is responsible to ensure that the data used in an extension scenario is managed in accordance with applicable legal requirements and in accordance with the business needs, such as data life cycle requirements. Key Features The following table explains the key features available: Key Feature Deletion and blocking: End of purpose check Deletion and blocking: Blocking of data Sample read access logging configurations Information Retrieval ILM Business Rule Creation Use Determines whether data is still relevant for business activities based on the residence period defined for the data. Prevents the business users of SAP applications from displaying and using data that may include personal data and is no longer relevant for business ac tivities. Only users with special authorization can display blocked data; they are not authorized, however, to create, change, or copy business objects with blocked data, or perform follow-on activities with these business objects. Sample read access logging (RAL) configurations are delivered for various ap plications. You can use RAL to monitor and log access to personal data. The information provided may include, for example, which business users accessed business partner personal data, and in which time frame. You can display and configure which read access information to log and under which conditions. Supports the data subject's right to get information about their data that is be ing processed. Simplifies the process of defining residence and retention rules for your ILM objects. 12 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Key Feature Consent Management Use Provides functions to import consent records as copies and to search for and display stored consent records. 2.3 Industry coverage in SAP S/4HANA Enterprise Management Industry coverage SAP S/4HANA Enterprise Management contains core functions for the industries listed below. Extended industry functions you will find in chapter SAP S/4HANA Industry-Specific LoB Functions. Industry Cluster Consumer Discrete Energy & Resources Financial Services Public Services Services Sports & Entertainment Transportation & Logistics Industry Consumer Products Wholesale Life Science Retail including fashion and vertical business Aerospace & Defense High Tech Industrial Machinery and Components Automotive Chemicals Mining Mill Products Utilities Banking Insurance PS & Postal Engineering, Construction, and Operations Professional Services Telecommunications Sports & Entertainment Transportation & Logistics SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 13 2.4 Asset Management 2.4.1 Maintenance Operations 2.4.1.1 Plant Maintenance Master Data Business Background By mapping your operational structures to technical objects, you can efficiently manage and evaluate your technical assets and maintenance objects and monitor the costs involved. Structuring the existing technical systems on the basis of technical objects reduces the time required for managing the technical objects and allows a faster evaluation of maintenance data. A functional location represents an area within a system or plant where an object can be installed. Functional locations are created in hierarchical structures and thus allow a spatial, functional, or process-oriented structuring of your systems. Individual maintenance objects are represented by pieces of equipment that are installed in functional locations. The usage times of a piece of equipment at a functional location are documented over the course of time. Key Features The following features support you with this process: Key Feature Use Structuring Technical Objects Hierarchically and Horizontally The functional location is an organizational unit that structures the maintenance objects of a company according to functional or process-related criteria. When creating a func tional location and defining its place in the hierarchical structure you define where a piece of equipment can be installed. Pieces of equipment can be installed in different functional locations or in other pieces of equipment. As functional locations represent your company's operational structures, they are usu ally part of a hierarchical structure and you can summarize costs or other maintenance data for individual hierarchy levels. Based on the structure indicator, functional locations are automatically arranged in the structure when you create them. You can also create hierarchical equipment structures if you want to divide large pieces of equipment into smaller units. If you want to structure your technical systems horizontally, you can create object net works. Object networks are represented by links between various pieces of equipment or functional locations. 14 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Key Feature Use Creating Master Records for Functional Locations and Pieces of Equipment Once the structure of the asset is defined, you can create a master record for each func tional location and piece of equipment and specify general data, location data, organiza tional data, and structure data as well as edit classification data and characteristic val ues, and assign documents. You can assign a bill of material (BOM) to the master record of a functional location or piece of equipment. After having created characteristics and classes, you can assign this classification information to the master records of equipment and functional locations. If you have to manage a large number of objects, the classification enables you to easily locate your objects and group them together for evaluations. You can serialize a piece of equipment by assigning a material number and serial number to it. This makes inventory management possible for the equipment. A piece of equipment that is installed in a technical object can store the history of its installation location. The system records a usage period for each installation loca tion, enabling you to track the complete installation history. You can maintain fleet information, such as data pertaining to the engine and fuel, in the equipment master record. You can represent objects that are not repaired but rather exchanged in case of a break down by creating master records for materials and assemblies. Although this does not enable you to document a maintenance history, a material or assembly can also serve as a reference object for a maintenance notification or order. Creating Maintenance Bills of Materials (BOMs) A maintenance bill of material (BOM) is a complete, formally structured list of the com ponents making up a technical object or an assembly. Maintenance BOMs support you when locating malfunctions by providing you with an overview of all components that make up a technical object. From this overview you can easily select the object for which you want to create a malfunction report. Furthermore, maintenance BOMs provide you with an overview of all spare parts used for the maintenance of a specific technical ob ject, so they make spares planning considerably easier. A maintenance BOM contains the object numbers of the individual components together with their quantity and unit of measure, and can be assigned to the master record of a technical object or material. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 15 Key Feature Use Reading Measuring Points and Measuring points and counters are located on technical objects. They help you docu Counters and Creating Measure ment the condition of a technical object at a particular point in time and support you in ment Documents performing counter-based or condition-based maintenance. Documenting the condition of a particular object is of great importance in cases where detailed records regarding the correct condition have to be kept for legal reasons. This could involve critical values recorded for environmental protection purposes, as well as measurements of emissions and pollution for objects of all types. If you perform counter-based maintenance, mainte nance activities are always performed when the counter of the technical object has reached a particular counter reading. In the case of condition-based maintenance, the activities are triggered when the measuring point of a technical object has reached a par ticular state. After a measurement has been taken at a measuring point or a counter, the data is stored in a measurement document. Based on that document the system calculates the next planned maintenance date and the call date on which a maintenance order is cre ated. Each time you create a new measurement document, the system recalculates the planned date for the next maintenance work. Accessing Context-Sensitive In formation In functional locations and pieces of equipment quickviews appear as separate popups when you hover over an object, and provide relevant information about the superior technical object or the installed piece of equipment. In technical objects you can open preconfigured side panels in a separate screen area and display context-sensitive charts and data. You can enhance the side panels to meet your requirements, thereby specifying which information you want to have displayed in the side panel. Processing Master Data in the Information Center You can use the Information Center to search for functional locations and pieces of equipment, and to call up technical objects from a personal worklist (POWL). Your per sonal worklist contains your favorites and objects that you have recently accessed or changed, and provides you with direct access to the Asset Viewer. You can personalize your worklist to your needs, sort table columns, and set filters. Visualization of Technical Ob jects in the Master Data With the SAP 3D Visual Enterprise Viewer, you can display graphics of technical objects right in the master data. You can display the graphic of the technical object as a thumb nail, as a 2D image or a 3D scene. In the 3D scenes, you can use various display func tions, for example, you can pull the visualized model apart or rotate it, display a detailed view or a cross-section, as well as display associated parts lists. Viewing Technical Objects in the Asset Viewer The Asset Viewer is a display tool that enables simple navigation through complex object relations and flexible navigation within and between objects. You can also view and navi gate the hierarchical structure of the technical object. 16 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management 2.4.1.2 Maintenance Planning and Scheduling Business Background Maintenance Planning and Scheduling helps you optimize the scope of work and effort required for inspection, maintenance, and planned repairs. Based on legal requirements, manufacturer recommendations, and cost analyses, you determine which preventive maintenance tasks are required, which work centers are needed, and how frequently preventive maintenance tasks have to be processed to avoid breakdown time. Maintenance plans support you in specifying maintenance cycles, scheduling maintenance calls, and determining the expected costs for a specific time period. In maintenance task lists you can describe a sequence of individual maintenance activities which must be performed repeatedly within your company. In addition, you can use 2D and 3D model views to visualize technical objects, spare parts, and instructions as well as to find the spare parts you need for carrying out maintenance tasks quicker and easier. Key Features The following features support you with this process: Key Feature Use Planning Complex Maintenance Cycles with Strategies Maintenance strategies help you plan complex maintenance cycles. Based on legal re quirements, manufacturer recommendations, and cost analyses, you use maintenance strategies to determine the sequence of planned maintenance and inspection tasks. Maintenance strategies contain maintenance packages with general scheduling informa tion and can therefore be assigned to different maintenance plans. This reduces the time required for creating maintenance plans and allows you to update maintenance schedul ing information easily. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 17 Key Feature Use Processing Maintenance Plans To plan recurrent maintenance work, you can create time-based and performance-based maintenance plans, strategy plans, and multiple-counter plans. In time-based mainte nance planning, maintenance is performed in specific cycles, for example, every two months or every six months. With performance-based maintenance plans, you can plan regular maintenance based on counter readings maintained for measuring points of pieces of equipment and at functional locations. You can create and assign maintenance items that describe which preventive main tenance tasks should take place regularly for a technical object or a group of techni cal objects. You can assign a task list to the maintenance item to specify the individual work steps that must be executed, the spare parts and tools required for the job, as well as the required completion time. You can determine the maintenance cycles as planning data. If the maintenance plan is a strategy plan, the assigned maintenance strategy determines the mainte nance cycles. If the maintenance plan is performance-based, you can assign coun ters. Furthermore, you can specify other scheduling information, such as shift fac tors. You can view the scheduled maintenance calls for the maintenance plan. You can determine the expected costs for a specific period. The system calculates the costs based on existing calls and uses maintenance packages and cycles as well as assigned task lists as sources for estimating costs. When you schedule the maintenance plan and generate maintenance calls, the system generates maintenance call objects (for example, maintenance orders or maintenance notifications) for the due date, and copies the relevant planning data into the call object. You can display the scheduled calls using the call history. 18 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Key Feature Use Planning Recurrent Maintenance Maintenance task lists describe a sequence of individual maintenance activities which Work with Task Lists must be performed repeatedly within a company. They contain important information about the spare parts and tools required for the work steps, the work centers involved, and the time required to perform the work. As a maintenance planner, you can use task lists to standardize these recurring work sequences and to plan inspections, mainte nance, and repairs more effectively. Furthermore, task lists enable you to react quickly to changing environmental protection or occupational safety regulations that may affect continuous maintenance. You can create a general task list or a task list for a specific piece of equipment or func tional location: You can provide general information, such as the responsible work center and plant, the status, and the maintenance strategy. You can also specify a validity date that can be today's date or a date in the past or future. You can specify the required spare parts by assigning material components from the bill of material or adding materials that are not in the BOM of the maintenance object. You can determine which production resources or tools are required to perform the maintenance tasks, such as measuring and inspection instruments or cranes. You can describe the chronological interdependence between the maintenance tasks and create relationships between operations. You can create, display, and assign documents. You can perform cost analyses that allow you to see which of the operations descri bed have created which costs in a maintenance task list. This enables you to control your costs without creating an order. You can use task lists to detail out the individual work steps which must be executed as well as the spare parts and tools required for the job and the required completion time. When you then assign a task list to a maintenance item, maintenance notification, or an order, the system copies this maintenance data from the task list into the respective maintenance document. Performing Inspection Rounds You can plan and perform inspection rounds on different technical objects on a regular basis. The work activities in a round are similar and require the same tools, replacement parts, and qualifications while the number of technical objects may vary, depending on the sequence and the time required. An inspection round can involve functional loca tions, pieces of equipment, and measuring points or counters. You can assign an inspec tion round to a work center or a person. In an inspection round, you enter technical objects at the operation level of task lists or maintenance orders. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 19 Key Feature Use Accessing Context-Sensitive In In maintenance plan and task lists you can open quickviews and side panels to gather formation further information. Quickviews appear as separate popups when you hover over an object, and provide rele vant information about the technical objects or the long text. You can open preconfigured side panels in a separate screen area and display contextsensitive charts and data. You can enhance the side panels to meet your requirements, thereby specifying which information you want to have displayed in the side panel. Processing Maintenance Plans and Items from a Personal Ob ject Worklist The Maintenance Plan and Maintenance Item List is an individually configurable worklist (POWL) that allows you to display and process all maintenance plans and items that match the selection criteria in the query you have defined. The POWL provides the most important information about maintenance plans and items, enables you to carry out mass data changes and to navigate to the assigned technical objects. You can configure the list layout, sort table columns, and create filters. Selecting Spare Parts and View ing Visual Instructions in Task Lists With the SAP 3D Visual Enterprise Viewer, you can use functions to visualize technical objects, spare parts and instructions. 2D and 3D model views as well as animated scenes make critical maintenance processes such as finding the spare parts you need and car rying out maintenance tasks quicker and easier. Users can only display the 2D images and 3D scenes that have been published within their company. While working in a task list you can select spare parts from a 2D or 3D model view and copy them to the spare parts list. You can also watch visual instructions on how to carry out your maintenance tasks. Visual instructions can be animated 3D scenes that visual ize each and every maintenance step at operation level, for example. Viewing Relationships between Maintenance Objects in the As set Viewer The Asset Viewer is a display tool that enables simple navigation through complex object relationships and flexible navigation within and between objects. You can also view and navigate through the hierarchical structure of technical objects. 2.4.1.3 Maintenance Execution Business Background Maintenance Execution allows you to perform planned and unplanned maintenance tasks. Maintenance planners can carry out preliminary costing, work scheduling, material provisioning, and resource planning. They provide maintenance workers with job lists so that they have easy access to all maintenance-related information. This leads to increased efficiency and productivity. Maintenance workers can review the jobs assigned to them and carry out the required maintenance work based on the tasks and operations in the order. While confirming that they have finished the job, they can enter measurement readings, which the system records in measurement documents. 20 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Key Features The following features support you with this process: Key Feature Use Reporting a Malfunction Using Notifications As a maintenance planner or worker you can report a malfunction or a problem at a technical system by creating a notification in which you specify the technical object, de scribe the malfunction, and enter the activities to be performed. Hierarchical structure lists support you in specifying the technical object and provide you with information about assigned materials and components. You can enter breakdown information, de scribe the damages and causes, and enter tasks and activities. By choosing the appro priate codes for describing the damages and malfunctions as well as what caused the damage, you ensure that issues can be entered in a standardized way and therefore be evaluated automatically. Having completed your work, you can confirm the time spent on each activity. To add further information, you can upload and attach documents to the notification. You can print out the shop paper of the notification physically or virtually on the job card and by doing so, transfer the notification to the job list. Planning and Executing Mainte nance Work Using Maintenance Orders When a malfunction is detected, the maintenance planner can use a maintenance order to detail out the maintenance tasks that are to be performed on the technical object. As a planner, you can create a maintenance order for a specific notification or create the maintenance order directly with or without reference to an existing order. When creating or changing a maintenance order, you can either assign existing task lists and notifications or create new ones for the order. In the maintenance order, you provide all the information needed to plan and execute the maintenance work. That includes start and finish dates, location information, planned materials and production resources/tools. The system supports you in finding the rele vant technical object, choosing the required materials and checking their availability, scheduling the job, and determining the costs: You can specify the technical objects using a hierarchical list. You can choose the required materials using a catalog. When you plan materials for executing order operations, you can display whether the materials planned for the operation are available on time and in sufficient quantity. After you have planned an order with all its operations and components, you can use the scheduling function to determine the actual execution dates, the capacity requirement needed to execute the order, and the date on which a particular mate rial should be available. You can determine costs and run cost simulations. For inspection rounds, you can enter technical objects and assemblies at operation level and assign measuring points as production resources/tools to the technical objects. To add further information, you can upload and attach documents to the order. You can print out the shop paper of the maintenance order physically or virtually on the job card and by doing so, transfer the order to the job list. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 21 Key Feature Use Processing and Confirming Maintenance Jobs Job lists and confirmation lists support maintenance workers in processing and confirming maintenance jobs. Job lists provide a list of maintenance jobs to be carried out, as well as crucial infor mation for each job at a glance, such as the urgency, start and end dates, and as signed work center. You can configure job lists so that they reflect how work is or ganized in your particular organization and therefore only contain the jobs that are relevant to you. Confirmation lists contain all the planned maintenance jobs that can be confirmed. As a maintenance worker, you can check the planned job data and confirm or adjust it. That includes the time you spent on the job and the materials you consumed as well as the activities you performed and the measurement readings. Depending on how confirmation is done in your company, you can configure different confirmation lists. As a maintenance worker, if you fix a problem at a technical system, you can also confirm this unplanned job and enter all the required data after having finished your work. You then can enter the time spent and the required materials, write a long text and, if neces sary, create an activity report. The system automatically creates an order and - if an ac tivity report exists - a notification, sets the order and notification to technically com pleted, stores the time confirmation, and posts a goods issue for the order. You can also confirm unplanned jobs while working in the Asset Viewer. Accessing Context-Sensitive In In maintenance notifications and orders you can open quickviews and side panels to formation gather further information. Quickviews appear as separate popups when you hover over an object, and provide rele vant information about the assigned notification or order, technical objects, materials, activities, statuses, and long texts. You can open preconfigured side panels in a separate screen area and display contextsensitive charts and data, such as context-sensitive master data or information about vendors and customers. You can enhance the side panels to meet your requirements, thereby specifying which information you want to have displayed in the side panel. Processing Maintenance Docu ments in the Order and Notification Information Center The Order and Notification Information Center is a central point of access to several worklists that you can use for processing all your notifications and orders. You can ac cess worklists for notifications, orders, and order operations, or use the combined Order and Notification List. The worklists allow you to display and process all maintenance noti fications and orders that match the selection criteria in the query you have defined. You can configure the list layout, sort table columns, and create filters. In addition, you have the option of displaying table columns for monitoring critical dates and costs, whose col ors help you detect issues. Furthermore, the lists enable you to change the status of orders and notifications and provide a mass data change function. In the combined Order and Notification List, you can also display the assignments of notifications to orders. 22 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Key Feature Use Selecting Spare Parts and View With the SAP 3D Visual Enterprise Viewer, you can use functions to visualize technical ing Visual Instructions in Mainte objects, spare parts, and instructions. 2D and 3D model views as well as animated nance Orders scenes make critical maintenance processes such as finding the spare parts you need and carrying out maintenance tasks quicker and easier. Users can only display the 2D images and 3D scenes that have been published within their company. While working in a maintenance order you can select spare parts from a 2D or 3D model view and copy them to the spare parts list. You can also watch visual instructions on how to carry out your maintenance tasks. Visual instructions can be animated 3D scenes that visualize each and every maintenance step at operation level, for example. If you have set up the conversion accordingly, you can even convert the visual instructions assigned to a maintenance order to PDF format, use them on job cards, and print them out. Viewing Relationships between Maintenance Objects in the As set Viewer The Asset Viewer is a display tool that enables simple navigation through complex object relationships and flexible navigation within and between objects. You can also view and navigate through the hierarchical structure of technical objects. 2.5 Finance 2.5.1 Financial Planning and Analysis 2.5.1.1 Cost Management and Profitability Analysis 2.5.1.1.1 Overhead Cost Accounting Business Background This application area covers the journal entries for Overhead Cost Accounting. It captures costs by cost center and defines the output of the cost center in terms of activity types. It allows you to enter statistical key figures as a basis for your allocations at period close. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 23 Key Features The following features support you with this process: Key Feature Master data in cost accounting Activity prices Statistical key figures Overhead allocation Reporting Use You can create various types of master data, such as Cost centers Cost center groups Activity types Activity type groups Statistical key figures Statistical key figure groups Internal orders Projects You can enter activity prices for any combination of cost cen ter and activity type. Activity prices are needed to provide the charge basis for the internal activities. You can enter statistical key figures, which serve as a basis for internal allocations. You can allocate costs, for example, between cost centers, which is a typical task during the monthly closing process. You can report on actual and plan data for selected periods for the following objects: cost centers market segments P&L statements functional areas profit centers internal orders projects 2.5.1.1.2 Product Cost Management Business Background This business area allows you to determine the costs incurred by your products and services in order to successfully manage your product portfolio. These cost can be broken down into each step of the value chain leveraging the superior capabilities of an integrated S/4HANA system, while mapping the quantity flow from the logistical area with the values of Finance. Product Cost Management is key for your company's inventory valuation. 24 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management The approach to Product Cost Accounting is determined by the type of manufacturing process. In an engineerto-order or make-to-order environment, the focus is on the costs for individual sales orders. In a make-to-stock environment, the focus is on the costs for the individual production orders or process orders. In a repetitive manufacturing environment, a period-based cost controlling may replace the individual order. Key Features Key Feature Product costing Product costs by sales order Product cost by manufacturing order Period costs Material inventory values Use Assign costs to individual units of products and services. Determine costs for sales orders in engineer-to-order or make-to-order environments. Determine costs for production orders and process orders in make-to-stock environments. Determine period-based costs in repetitive manufacturing environments using product cost collectors as the cost ob ject. Report on quantities and values of the material inventory. You can also report on rounding differences between the cur rent stock postings of the actual stock and the calculated stock. 2.5.1.1.3 Profitability and Cost Analysis Business Background This application area enables you to analyze the profitability of your market segments and cost objects. It shows contribution margins in real time and offers detailed views for further analysis. You can analyze market segments by product, product group, customer, customer group, and sales organization. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 25 Key Features Key Feature Revenue and cost of sales Overhead allocation to profitability Settlement Real-time profitability reporting Event-based revenue recognition Realignment of market segment attributes Use Provide information on revenue and cost of sales to support internal accounting and decision-making. You can allocate your overhead costs from cost centers to market segments using a periodic run. Settle projects to capitalize the balance from results analysis and include it in the contribution margin for Enterprise Con trolling. Settle orders to include production variances in the contributions margin. Attributed profitability segments support real-time profitability reporting for market segment attributes such as Cus tomer, Customer Group, Product, Product Group, or Sales Organization to support your internal accounting and deci sion-making. This approach can sometimes replace the use of allocation and settlement. Event-based revenue recognition posts recognized revenue for every cost posting on simple customer projects. It ap plies the matching principle for costs and revenues, so the reported margin is always up to date. For example, if a customer project has the contract type Fixed Price or Time & Material, each time confirmation im mediately triggers a revenue recognition line item. You can update and adjust your posted market segment at tributes (excluding all GL-relevant information) without af fecting your financial data, for example after organizational changes or master data corrections. 2.5.2 Accounting and Financial Close 2.5.2.1 Accounting 2.5.2.1.1 General Ledger Business Background You use the general ledger to perform the necessary tasks of financial accounting. 26 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Key Features As a general ledger accountant, you can use the following functions: Key Feature Master Data Postings and Journal Entries Closing Operations and Reporting Parallel Accounting Use You can manage master data for profit centers, profit center groups and G/L accounts. If you specify profit centers in postings, you can create a profit and loss state ment (P&L) for profit centers and a financial statement for internal purposes. G/L account master data defines how business transactions are posted on G/L accounts and how the posting data is processed. The directory of all G/L accounts is the chart of accounts. You use journal entries to reflect business transactions. You can manage open items by reversing or clearing open items for example. You can also reset a clearing. You can create recurring entries for journal entries that are repeated regularly. For external and internal accounting there is the universal journal. A posting is made for every business transaction that is relevant for General Ledger Ac counting, Asset Accounting, Controlling (with the exception of costing-based profitability analysis) and the material ledger. External and internal accounting are constantly reconciled, which means separate reconciliations between Fi nancial Accounting and Controlling, as well as between General Ledger Ac counting and Asset Accounting, are not necessary. For closing operations at period-end closing, you can use the programs availa ble for analyzing, valuating, and reclassifying the journal entries. With accruals/deferrals, you can split expenditures, revenues, receivables and losses period-based and cause-related. With these closing operations, you create a balance sheet and a profit and loss statement (P&L). All accounting data is available simultaneously in each report that is based on the universal journal. Cost and revenue information is always up to date and is continuously reconciled with the profit and loss statement. There are different programs available for sales/purchases tax declarations and tax payable postings. You can manage General Ledger Accounting in accordance with several ac counting principles simultaneously, for example with a local accounting princi ple and the accounting principle of a corporate group. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 27 2.5.2.1.2 Asset Accounting Business Background You use Asset Accounting to manage and monitor tangible fixed assets. It provides detailed information about the transactions relating to tangible fixed assets. Prerequisites To be able to use Asset Accounting, you have to also use General Ledger Accounting. For more information, see General Ledger [page 26]. Key Features As an asset accountant, you can use the following functions: Key Feature Use Master Data You can use the asset master record to create, edit, and manage the master data of Asset Accounting. Asset Acquisitions and Asset Retirements You can post asset acquisitions integrated with accounts payable accounting or not integrated. Similarly, you can post asset retirements integrated with accounts receivable accounting or not integrated. In addition to this, there are more functions available for asset acquisitions and retirements. Depreciation With depreciation you map impairments incurred or impairments that are due to tax law requirements. More Transactions, Reversal More transactions, for example post-capitalizations are available. You can reverse documents that are posted in Asset Accounting. Postings and Documents Asset Accounting is based on the universal journal entry. General Ledger Ac counting and Asset Accounting are therefore reconciled per se; this means that reconciliation postings are not necessary as part of closing operations. 28 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Key Feature Closing Operations and Reporting Parallel Accounting Use You post the depreciation amounts periodically, directly in General Ledger Ac counting. Create an asset history sheet to represent the development of the fixed asset from the opening balance through to the closing balance. More tools for the reporting and analysis of asset portfolios, asset transac tions, and depreciation (including depreciation forecast and simulation) are also available. You can manage Asset Accounting in accordance with several accounting prin ciples simultaneously, for example with a local accounting principle and the accounting principle of a corporate group. This happens in the same way as in General Ledger Accounting. Separate documents are posted for each ac counting principle. 2.5.2.1.3 Inventory Accounting Business Background You use Inventory Accounting to value and monitor your material and work-in-process inventories according to legal regulations and management accounting requirements. All goods movements are valued in the Material Ledger which supports parallel, real-time valuation of inventories in multiple currencies. A special focus lies on high throughput of logistics data that allows for managing massive data volumes. You can choose to value your material inventories at standard cost or moving average automatically. In addition, you may make manual adjustments to material costs and inventory values. You may also use periodic valuation of material inventories according to statutory requirements (such as Lowest Value, LIFO, or FIFO) or product cost management requirements (such as actual costing or standard costing). Key Features Key Feature Automatic Valuation of Material Inventories Optional Price Controls for Materials High Throughput of Logistics Data SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Use Valuation of material inventories in multiple currencies in parallel Perpetual valuation of material inventories and movements at standard cost or moving average Manage high logistics data volume PUBLIC 29 Key Feature Use Manual Adjustments to Material Costs and Inventory Values Adjust material costs and inventory values manually Periodic Valuation of Material Inventories Valuation of material inventories according to statutory or product cost management requirements Analyze Inventory Values Real-time line item reports aggregated to inventory positions on the fly, with drill-down capabilities 2.5.2.1.4 Accounts Payable Business Background Invoices are created in purchasing and submitted to accounts payable. As an accounts payable accountant, when you receive an invoice, you can view key performance indicators (KPIs) for the invoice and process the invoice. Key Features The following features support you with this process: Key Feature Analysis of payments to suppliers Management of cash discounts Reviewing of cleared overdue invoices Evaluation of days payable outstanding Use You use this feature to view information about payments to suppliers. You can check the overdue payable amount and the future payable amount. If you identify negative trends in the payable amount, you can notify the responsible persons to take action. You use this feature to forecast the available cash discounts and to monitor the cash discount utilization in your responsi ble area. You can find out where you need to make better use of cash discounts in order to avoid cash discount loss in the future. You use this feature to get details and statistical facts about cleared overdue invoices. You use this feature to identify suppliers with the highest or the lowest days payable outstanding. 30 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Key Feature Management of payments Management of payment blocks Management of payment proposals Management of payment media Use You use this feature to create, post, and, if necessary, re verse payments. You use this feature to set and remove payment blocks on in voices or supplier accounts. You can identify irregularities or potential fraud in invoices through integration with SAP Fraud Management for SAP S/4HANA*. You use this feature to revise and release payment propos als. Journal entries are then generated in the finance system. You use this feature to transfer the data required for elec tronic payment transactions to banks via a data medium. A payment medium is created with each successful payment run. *SAP Fraud Management for SAP S/4HANA is co-deployed with SAP S/4HANA. SAP Fraud Management for SAP S/4HANA is not part of SAP S/4HANA Enterprise Management, but part of the add-on SAP Assurance and Compliance Software for SAP S/4HANA, for which you need a separate license. 2.5.2.1.5 Accounts Receivable Business Background Accounts Receivable allows you to record and manage accounts receivable data of all customers. All postings to accounts receivable are triggered in response to operative transactions in sales and logistics. Simultaneously, postings are recorded in the general ledger. Different general ledger accounts are updated depending on the transaction involved, such as receivables, down payments or bills of exchange. Customer line items are cleared when incoming payments are received. You can monitor open items by using, for example account analyses, due date lists and a flexible dunning function. You can adjust the correspondence forms to your requirements, as well as payment notices, balance confirmations, account statements, and interest calculations. You can assign incoming payments to receivables due. The payment function automatically executes direct debiting and down payments. A range of tools allows you to document transactions in accounts receivable, such as balance lists, journals, balance audit trails and other standard reports. Prerequisites To use accounts receivable, you have to also use general ledger. For more information, see General Ledger [page 26]. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 31 Key Features The following table explains the key features available: Key Feature Use Master Data You can manage and store your customer data as business partner data. You can create and change customer data using the business partner, so that you do changes, for example, in address data, only once. Monitoring of Receivables You can display overdue receivables and customer balances. In addition, you can process individual customer items. Posting Business Transactions You can post accounting data for customers in accounts receivables and the data entered is transferred to the general ledger. General ledger accounts are updated according to the transaction concerned (receivable, down payment, bill of exchange, and so on). Clearing of Open Invoices You can post incoming payments and either manually clear open items or have them cleared automatically by the system. Correspondence You can send correspondence to your customers, such as payment notices, open item lists, balance confirmation or account statements. You can adjust the forms for the correspondence according to your requirements. Periodic Activities and Closing Operations You can prepare and carry out periodic activities, such as automatic payment or dunning, or activities that arise for day-end closing, month-end closing or year-end closing. Analytics You can carry out evaluations and analyses for your customers, such as pay ment history, currency risk or Days Sales Outstanding (DSO) analysis. 2.5.2.2 Financial Close 2.5.2.2.1 Entity Close Business Background You can perform local close for one or several companies of your corporate group monthly, quarterly, yearly, or at other intervals with a freely definable range of closing operations. Local accounting principles and/or principles applied by the group can be taken into account. 32 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Key Features Closing operations include the following tasks: Maintain exchange rates Execute recurring entries Clear open items Perform inventory and post inventory differences Reclassify clearing account for goods receipt/invoice receipt Valuate materials Perform closing operations in the subsidiary ledgers Perform foreign currency valuation Reclassify receivables and payables Use functions for tax on sales/purchases Perform reconciliation between affiliated companies; these intercompany reconciliations are used in preparation for consolidation. Close posting period and open new posting period Display financial statements Execute balance carryforward Evaluate financial statements 2.5.2.2.2 Corporate Close - Consolidation Foundation Background You use consolidation foundation to create and monitor your financial data collection for corporate close, either for legal purposes or for the purposes of consolidated management reporting. This process offers a high degree of flexibility regarding the data collection process as well as the configuration of different accounting principles. You can highly integrate with the accounting solution to automate the consolidation data collection process. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 33 Key Features The following features are available to you as a consolidation expert: Key Feature Master Data Data Collection Data Validation Modeling Use Versioning helps you run different consolidations in par allel using different criteria, for example: For actual, plan, and target data For parallel financial accounting (for example, U.S. GAAP, IFRS) For simulations The smallest element of the corporate structure in con solidation is the entity. An entity can represent a com pany, a profit center, a business area, or a plant. You use group G/L accounts that are mapped to opera tional G/L accounts to get financial values from the group view. You can collect individual financial statement data from SAP systems as well as non-SAP systems. Various procedures are available for doing this. You can define validation rules and assign the rules to vari ous dimension combinations to verify the data quality before releasing data for consolidation use. A model is used to bundle all of the characters and key figure definitions, customizations, and consolidated results into a separate consolidation context. You use the modeling proc ess to decide which fields are needed for consolidation di mensions, and which are needed to join with global settings to form the data basis for consolidation. 2.5.2.3 Basic Compliance Reporting Business Background You use the basic compliance reporting to get an optimized overview of your compliance reporting tasks, and to generate and send the compliance reports to the government on time. 34 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Key Features Key Feature Basic compliance reporting Use Basic compliance reporting enables you with the following features: Monitor the compliance status and due dates for the supported compli ance reports. Generate and submit basic compliance reports. The generated compli ance reports are persisted by the system. Additionally, you can generate business partner correspondence for few supported reports. Note Some of the compliance reports need additional licenses. Define the reporting entities that you need to fulfill the compliance re quirements for your organization. Upload complementary compliance attachments to support your report ing requirements. Based on the available report features, you can: Download the generated reports for manual submission to the gov ernment authorities Verify the content of the legal report electronically before submission Submit the reports electronically to a government gateway Generate correction runs Schedule the report generation based on your requirements. You can choose to generate the report immediately, or schedule the report genera tion for a later point in time. You can also cancel the reports runs that are in-process. View and process the activities that are relevant for your compliance re porting scenario. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 35 Key Feature Use Generate and submit basic compliance re With basic compliance reporting you can submit: ports Account Balance Reporting for Mexico Annual Sales Listing for Belgium Audit report for Hungary Balance of Payments (S03CCR, F01DGS, F01MER, F02CMS) for Belgium, Balance of payments (ECO and RTE) for France, Balance of Payments (STATEC Form26) for Luxembourg, Balance of Payments for Austria Cash flow direct/indirect for China Chart of Accounts reporting for Mexico Daily VAT for Argentina DIOT reporting for Mexico EC Sales List for Austria, United Kingdom, Sweden, Spain, Netherlands, Luxembourg, Ireland, France, Belgium, Denmark; EC Sales and Purchase list for Hungary e-Tax Invoices - VAT In/Out for Indonesia Goods, and Service Tax (GST) returns for Singapore, Canada (HST, PST, RITC, QST), GST03 for Malaysia National Bank Reporting for Switzerland Overdue Invoice Reporting for France Sales and Purchase ledger for Russia Sales and Purchase VAT for Argentina, Venezuela SAF-T reporting for Luxembourg Tax Summary for Philippines Value Added Tax (VAT) returns for Ireland, United Kingdom, South Africa, Philippines, Luxembourg, Spain, France (CA3 VAT returns), Indonesia, Is rael, Italy, Taiwan, Thailand, Hungary, Netherlands, Russia, and South Af rica Withholding taxes for Belgium, France, Japan (Blue and White returns), Philippines, United Kingdom, and United States (1042S, 1099MISC, 1099G, 1099INT, and 1099K), Spain, India, Italy, Indonesia (PPH 23/26), Ireland, and South Korea Note These basic compliance reporting features are part of SAP S/4HANA Enterprise Management. On top of these features, SAP S/4HANA provides additional features which require an additional license. For the list of additional features see, Advanced Compliance Reporting [page 245]. 36 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management 2.5.3 Treasury and Financial Risk Management 2.5.3.1 Cash and Liquidity Management Business Background To preside over the cash assets of a company, cash managers need to closely monitor cash positions, centrally manage banks and bank accounts, and regularly forecast the liquidity trends of the organization. Key Features Key Feature Cash Positions Banks and House Banks Bank Account Master Data Liquidity Forecast Memo Record Use You can use this feature to check the actual and forecasted cash positions to assist cash allocation decision-making. You can use this feature to display, create, and change data about the banks that your company, your customers, and your suppliers use to transact business. You can use this feature to centrally manage the master data of your company's corporate or business bank accounts, as well as house bank accounts. You can use this feature to forecast the future liquidity trend. You can use this feature to create memo records manually and edit memo records in a list. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 37 2.5.4 Financial Operations 2.5.4.1 Invoice and Payables Management 2.5.4.1.1 Accounts Payable Business Background Invoices are created in purchasing and submitted to accounts payable. As an accounts payable accountant, when you receive an invoice, you can view key performance indicators (KPIs) for the invoice and process the invoice. Key Features The following features support you with this process: Key Feature Analysis of payments to suppliers Management of cash discounts Reviewing of cleared overdue invoices Evaluation of days payable outstanding Management of payments Management of payment blocks Use You use this feature to view information about payments to suppliers. You can check the overdue payable amount and the future payable amount. If you identify negative trends in the payable amount, you can notify the responsible persons to take action. You use this feature to forecast the available cash discounts and to monitor the cash discount utilization in your responsi ble area. You can find out where you need to make better use of cash discounts in order to avoid cash discount loss in the future. You use this feature to get details and statistical facts about cleared overdue invoices. You use this feature to identify suppliers with the highest or the lowest days payable outstanding. You use this feature to create, post, and, if necessary, re verse payments. You use this feature to set and remove payment blocks on in voices or supplier accounts. You can identify irregularities or potential fraud in invoices through integration with SAP Fraud Management for SAP S/4HANA*. 38 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Key Feature Management of payment proposals Management of payment media Use You use this feature to revise and release payment propos als. Journal entries are then generated in the finance system. You use this feature to transfer the data required for elec tronic payment transactions to banks via a data medium. A payment medium is created with each successful payment run. *SAP Fraud Management for SAP S/4HANA is co-deployed with SAP S/4HANA. SAP Fraud Management for SAP S/4HANA is not part of SAP S/4HANA Enterprise Management, but part of the add-on SAP Assurance and Compliance Software for SAP S/4HANA, for which you need a separate license. 2.5.4.1.2 Dynamic Discounting (Ariba Network Integration) Business Background If you have enabled discount management for suppliers on the Ariba Network, you can manage cash discounts from initial offer through to agreement. This optimization of cash discounts can increase your company's profits, and gives your suppliers the opportunity to receive their payments earlier. Key Features Key Feature Open payables Updates to open payables Adjustments to open payables Monitoring Use Send information about open payables to the Ariba Network. Send updates to information already sent to the Ariba Net work about open payables if there are changes that impact the negotiations about early payment. Receive information from the Ariba Network about adjusted cash discounts and due dates of open payables. Monitor, troubleshoot, resend, and cancel outbound cXML messages. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 39 2.5.4.1.3 Payment Advice Collaboration (Ariba Network Integration) Business Background You are able to collaborate with your suppliers by sending them payment advices via the Ariba Network. These payment advices are based on the results of a payment run and explain the payments made to your suppliers. Key Features Key Feature Payment advices Monitoring Use Send payment advices to suppliers via the Ariba Network. Monitor, troubleshoot, resend, and cancel outbound cXML messages. 2.5.4.2 Receivables Management 2.5.4.2.1 Accounts Receivable Business Background Accounts Receivable allows you to record and manage accounts receivable data of all customers. All postings to accounts receivable are triggered in response to operative transactions in sales and logistics. Simultaneously, postings are recorded in the general ledger. Different general ledger accounts are updated depending on the transaction involved, such as receivables, down payments or bills of exchange. Customer line items are cleared when incoming payments are received. You can monitor open items by using, for example account analyses, due date lists and a flexible dunning function. You can adjust the correspondence forms to your requirements, as well as payment notices, balance confirmations, account statements, and interest calculations. You can assign incoming payments to receivables due. The payment function automatically executes direct debiting and down payments. A range of tools allows you to document transactions in accounts receivable, such as balance lists, journals, balance audit trails and other standard reports. Prerequisites To use accounts receivable, you have to also use general ledger. 40 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management For more information, see General Ledger [page 26]. Key Features The following table explains the key features available: Key Feature Use Master Data You can manage and store your customer data as business partner data. You can create and change customer data using the business partner, so that you do changes, for example, in address data, only once. Monitoring of Receivables You can display overdue receivables and customer balances. In addition, you can process individual customer items. Posting Business Transactions You can post accounting data for customers in accounts receivables and the data entered is transferred to the general ledger. General ledger accounts are updated according to the transaction concerned (receivable, down payment, bill of exchange, and so on). Clearing of Open Invoices You can post incoming payments and either manually clear open items or have them cleared automatically by the system. Correspondence You can send correspondence to your customers, such as payment notices, open item lists, balance confirmation or account statements. You can adjust the forms for the correspondence according to your requirements. Periodic Activities and Closing Operations You can prepare and carry out periodic activities, such as automatic payment or dunning, or activities that arise for day-end closing, month-end closing or year-end closing. Analytics You can carry out evaluations and analyses for your customers, such as pay ment history, currency risk or Days Sales Outstanding (DSO) analysis. 2.5.4.3 Settlement Management Business Background Settlement management involves all types of settlement processes, including core business processes that need to be fully integrated in the order-to-cash cycle or within in a procure-to-pay scenario, such as rebate settlement, as well as standalone processes, whereby special financial settlement services are provided for business partners. Financial settlement processes are typically required for handling settlement transactions between third parties such as brokers and payment agencies. Benefits or services can be offered to the parties involved, such SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 41 as del credere guarantees or simplified payment transactions, and settlement accounting for commissions can be performed. In pooled payment, for example, an agency negotiates purchase price conditions and payment processing between the supplier and customer. The agency takes a commission from the customer and/or the supplier for services rendered. Transactions relating to the actual merchandise, for example, purchase orders and deliveries, can be carried out completely independently of the agency. For the purpose of payment processing and commission calculation, the agency can enter incoming invoices. Key Features The following table explains the key features available: Key Feature Use Entry of remuneration settlements with out reference to preceding transactions Handling of all ad-hoc remunerations made to a supplier or charges made to a customer In del credere business, this allows del credere payables to be separated from those resulting from purchases. Entry of incoming invoices without refer ence to preceding transactions and crea tion of follow-on documents Entry of incoming invoices from a supplier to a customer Grouping of documents in lists for multiple business partners for posting on specific dates Entry of incoming invoices as a settlement document with direct posting to accounting or settlement using supplier settlement/supplier settle ment list and a customer settlement/customer settlement list Entry of incoming invoice lists as supplier settlement lists using a cus tomer settlement/customer settlement list for the settlement on the cus tomer side Creation of follow-on documents to perform settlement accounting for payments and commission Automatic determination of accountingrelated data, such as terms of payment and cash discounts Price determination Calculation of del credere commissions, discounts, conditions, and other transactions involving prices using purchasing or sales pricing Purchasing and sales account determination Determination of document processing by document type Use of different processing methods for different document types, such as in voices, credit memos, debit memos, pro forma invoices, and cancellation docu ments, for example, regarding the entry of default data, account and price de termination, the creation of follow-on documents, and posting rules 42 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Key Feature Use Integration with other solution capabilities Posting of documents as profitability analysis documents and thereby transfer incomes, rebates, and other documents to profitability account ing. Transfer of documents to cash management to ensure that cash flow is planned in good time. Use of credit management to define individual credit checks for the cus tomers involved. Forwarding of documents to accounting Posting of documents to accounting on saving a document or later by mass release A check can be implemented to ensure that only authorized persons can release documents for posting. Mass processing of documents Processing of documents and document lists individually or in batches (re lease, reverse, complete, reopen) Monitoring of document flow and status Tracking of documents from invoice entry through to posting to accounting Message creation Clearing Creation of messages for documents that support communication with busi ness partners Reconciliation of external documents, such as invoices or credit memos, with internal documents, such as transaction data Invoice verification and clearing scenarios for settlement management processes Clearing for both parties, either supplier or customer Handling of differences as invoice reduction, accrual, accepted difference (internal adjustment), or other difference Definition of tolerances for accepted differences Complaints processing Entry of complaints for a settlement document and recording and tracking of complaints Intrastat processing Condition contract management Creation and processing of documents that contain information relevant for the creation of Intrastat declarations Storage of agreements between business partners in the form of a condi tion contract A condition contract contains information, such as prices, conditions, and the validity of the agreement. It forms the basis for settling claims or re bates on suppliers or payables to customers. Handling of pricing conditions only for a specific order-to-cash or procureto-pay process based on a condition contract Accruals processing Posting accruals based on relevant invoices to update the bonus entitlements for future customer or supplier settlements in accounting. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 43 Key Feature Archiving Use Archiving of documents to remove volumes of data from the database that are no longer required in the system, but still need to be kept for analysis purposes 2.5.5 Governance, Risk, and Compliance for Finance 2.5.5.1 International Trade International Trade supports you in the following areas: International Trade Classification Classification of products with commodity codes and Intrastat service codes. Classification of products with control classes and control groups for legal control. International Trade Compliance Control of statutory regulations for export. Managing of licenses in accordance with legal control for export. Managing and release of blocked legal control documents. Managing Countries/Regions under Embargo. Intrastat Creating and managing Intrastat messages and their master data. Integration with SAP Watch List Screening · Integration allows to screen names and addresses for sales orders and outbound deliveries. 44 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management 2.5.5.1.1 International Trade Classification Business Background You use classification to manage commodity codes, Intrastat service codes, control classes and control groupings and their assignment to products. The Intrastat service codes are only relevant for Italy. Key Features The following table explains the key features available: Key Feature Manage commodity codes You can manage the commodity codes that you require for your Intrastat dec larations. Classify products with commodity codes You can find products to which no commodity code has yet been assigned, and assign a commodity code for a specific period to these products. Reclassify products with commodity co des You can find products to which a commodity code has been assigned, and as sign a new commodity code for a specific period to these products. Manage Intrastat service codes You can manage Intrastat service codes that you require for your Intrastat dec larations. Classify products with Intrastat service codes You can find products to which no Intrastat service code has yet been as signed, and assign an Intrastat service code for a specific period to these prod ucts. Reclassify products with Intrastat service You can find products to which an Intrastat service code has been assigned, codes and assign a new Intrastat service code for a specific period to these products. Classify Products with Legal Control You can assign control classes and control groupings time-dependently to products that have not yet been classified for legal control. Reclassify Products with Legal Control You can re-assign another control class or control grouping time-dependently to products that have already been classified for legal control. Manage Control Classes You can manage control classes to classify products for legal control later. You can add a description to a control class and specify its validity. Manage Control Groupings You can manage control groupings to classify products for legal control later. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 45 2.5.5.1.2 International Trade Compliance Business Background You use International Trade Compliance to manage licenses and trade compliance documents. Key Features The following table explains the key features available: Key Feature Use Manage Licenses You can manage Licensees to comply with bans and restrictions against spe cific product /product groups for authorities. Manage Documents with Trade Compli ance You can display the legal control status of documents and confirm or release Embargo blocks. Resolve Blocked Documents with Trade Compliance You can resolve legal control blocks of documents, if they are missing classification and /or Licenses. Managing Countries/Regions under Em bargo You can manage countries/regions for which there is an embargo situation. 2.5.5.1.3 Intrastat Declarations Business Background You use Intrastat declarations to record goods movements that cross national borders between member states of the European Union. In Italy, services must be declared in addition. 46 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Key Features The following table explains the key features available: Key Feature Manage Intrastat declarations Manage providers of information Use You can record the necessary statistics data for a month in Intrastat declara tions for the following types of shipments: Receipts to your company from other member states of the European Un ion Dispatches from your company to other member states of the European Union The statistics authority of your country requires that you, as a company, pro vide Intrastat-relevant data to the authority in the form of Intrastat declara tions. You need to record the provider-of-information data of your company. In addi tion to general address data, the data for the provider of information includes data to identify the company for the authorities. Select dispatches and customer returns for Intrastat declarations You can select dispatches and customer returns based on billing documents to create data for Intrastat declarations. Select receipts and returns to supplier for You can select receipts and returns to supplier based on purchase orders and Intrastat declarations intercompany billing documents to create data for Intrastat declarations. You can create Intrastat declarations for Countries the following countries: SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 47 Austria Belgium Bulgaria Croatia Czechia Denmark Estonia Finland France Germany Greece Hungary Ireland Italy Latvia Lithuania Luxembourg Netherlands Poland Portugal Slovakia Slovenia Spain Sweden Romania United Kingdom 2.5.5.1.4 Integration with SAP Global Trade Services SAP S/4HANA supports the seamless integration with SAP Global Trade Services to leverage legal and customs benefits in your international supply chain for example managing your imports. 2.5.5.1.5 Integration with SAP Watch List Screening Business Background SAP S/4HANA Cloud supports the integration with SAP Watch List Screening (needs to be licensed separately). 48 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management With the integration, you can screen names and addresses for several documents (e.g. sales orders and outbound deliveries). Key Features The following table explains the key features available: Key Feature Use Schedule Postprocessing with Watch List You can schedule the postprocessing of Watch List Screening relevant docu Screening ments. 2.6 Human Resources 2.6.1 Core HR and Payroll 2.6.1.1 Organizational Management Business Background Organizational Management allows you to build, maintain, and reorganize organizational structures and requirements for qualifications of the workforce. Key Features The following table explains the key features available: Key Feature Integration of Business Partner Use You can use this function to do the business partner assignments. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 49 Key Feature Organizational Plan Mode Expert Mode Working with Screen Areas Editing the Organizational Structure General structures Use The Organizational Management component includes various user group- spe cific modes and views with which to edit organizational plans: The Organization and Staffing view provides an intuitive interface for cre ating and editing organizational plans The General Structures view allows you to edit organizational plans with any structure including object types which, you have defined yourself (teams, for example). The Matrix view is for creating and editing matrix structures. Expert mode allows you to edit the characteristics of various objects and their relationships via infotypes Expert mode allows you to edit the characteristics of various objects and their relationships via infotypes You use this user interface in the Organization and Staffing or Organization and Staffing (Workflow) view to create, display, and edit organizational plans. You can create, display, or change the organizational structure using the Or ganization and Staffing and the Organization and Staffing (Workflow) views. You can also assign characteristics to the organizational units. You can use this function to create, edit, and display structures. 2.6.2 Time and Attendance Management 2.6.2.1 Timesheet Business Background Timesheet enables you to record and manage time data effectively. It allows you to enter employee working time and absences. You can also use the timesheet to approve or reject time entries. 50 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Key Features The following table explains the key features available: Key Feature Create and update time entries Time Management for Concurrent Em ployment Approve, Review or Reject Time entries Use You can log in time spent on different tasks (projects or non-project related) using this feature. You can use this feature to record time for a chosen personnel assignment even if you are concurrently employed. You as a manager can approve, review or reject time entries of your employees. 2.6.3 Employee Central Connectivity Business Background Employee Central Connectivity enables you to replicate employee, organizational, and cost center data from SAP SuccessFactors Employee Central to SAP S/4HANA system. Key Features The following table explains the key features available: Key Feature Use Replicating Employee Master Data from Employee Central to SAP S/4HANA You can replicate employee master data from the SAP SuccessFactors Em ployee Central to SAP S/4HANA system. Replicating Organizational Data from Em You can replicate organizational data from the SAP SuccessFactors Employee ployee Central to SAP S/4HANA Central to SAP S/4HANA system. Replicating Cost Centers from SAP S/ 4HANA to Employee Central You can replicate cost center data from the SAP S/4HANA system to SAP Suc cessFactors Employee Central. Contingent Worker Data Integration You can integrate contingent worker data like basic data and contact details from SAP SuccessFactors Employee Central to SAP S/4HANA system. Availability You can now view the work schedule of an employee thus enabling you to ac cess the up-to-date time information like your target hours, absences, holi days, and so on for time recording. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 51 Key Feature Search and Display of employees repli cated using Employee Central Use You can now search for employees and contingent workers replicated via Suc cessFactors Employee Central. You can also view the Employee's Basic details, Contact data, Organizational Data and Service Cost level data. 2.7 Manufacturing 2.7.1 Manufacturing Engineering and Process Planning 2.7.1.1 Production BOM Management Business Background During the product engineering phase, you design and develop products. You design new products or product lines to take advantage of current process technology and to improve quality and reliability. Or, you have to change an existing product due to changing market or customer requirements. The result of this product phase is drawings and a list of all the parts required to produce the product. This list is the bill of material. Key Features The following features are available: Key Feature Manage bills of material Assign BOMs to plants Use You can create a complete, formally structured list of the components that make up a product or assembly. A bill of material contains essential master data for integrated materials management and production control. In the design department, a new product is designed so that it is suitable for production and for its intended purpose. The result of this product phase is drawings and a list of all the parts required to produce the product. This list is the bill of material which is the basis for the production process (in discrete manufacturing, repeti tive manufacturing, and in the process industry). You can extend the area of validity of a BOM that you defined when you first created it. This means, for example, that you can assign the same BOM to a material in different plants - avoiding data redundancy and multiple data entry. 52 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Key Feature Use Monitor multilevel BOM assign You can use a reporting function that determines all components (assemblies and indi ment vidual parts) in a product and displays them per low-level code. Find BOM for component You can use a reporting function that determines where an object (for example, material) is used and the quantity that is required. This is necessary, for example, if objects are used in more than one context. You can use this information to: Determine requirements for a specific material. Select all products that are affected by a change to an individual part. Find assemblies that will be delayed if there is a delay in the delivery of a raw mate rial, for example. Calculate the effect on the cost of a product if the price of a raw material is in creased. 2.7.1.2 Master Recipe/Routing Management Business Background During the process engineering phase, you design and continuously improve manufacturing equipment and production facilities. This process enables you to model the capabilities of the manufacturing equipment and to monitor its performance. Key Features The following features are available: Key Features Use Manage the objects and persons You use work centers/resources to represent machines, production lines, employees, involved in the production process or groups of employees, for example. Together with the bills of material and routings/ Discrete manufacturing: Model work centers Process industry: Model re master recipes, work centers/resources belong to the most important master data in the production planning and control system and are used for scheduling, costing, ca pacity planning, and for simplifying operation maintenance. sources SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 53 Key Features Use Monitor bills of material You can display and monitor the following: Bills of material created by the product engineers Assignment of bills of material to plants Multilevel BOM explosion Where an object is used and the quantity that is required (Find BOM for compo nent) You use this information as a reference when determining the process steps for pro duction in the routing/master recipe. Model the production process Discrete manufacturing: Model routings Process industry: Model master recipes A routing/master recipe is a description of the operations/process steps that have to be carried out and the order in which they have to be carried out to produce a material. In addition, a routing/master recipe contains details about the work centers/resources at which the operations/process steps are carried out and the BOM components that are required. In discrete manufacturing, the routing is used as the basis for creating production or ders and in the process industry, the master recipe is used as the basis for creating process orders. Model production versions The production version determines the production techniques according to which a material is to be manufactured. A material may have several bills of material (BOMs) that determine the components used in its production. The production process can also be described in various rout ings/master recipes. You define which BOM and which routing/master recipe is to be used for production in the production version that you assign to a material. Model the exchange of data rele vant to production You have to provide the shop floor with up-to-date information to keep your production process running as smoothly and efficiently as possible. To this end, you can define in detail how the production process is to be executed and the data you want to collect during production. You can compare this data with existing data and continually make improvements to the process. 2.7.2 Production Planning 2.7.2.1 Material Requirements Planning Business Background Material requirements planning enables you to ensure the availability of materials and perform basic production planning. It is typically performed by the MRP controller who monitors the material shortage situation and solves any issues on time. Another main task is to ensure that sufficient supplies have been planned to cover requirements -- whether from sales orders, stock transfer orders, or from production, for 54 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management example. The goal is to ensure that both customer and production demand are available on time and to avoid any disruptions due to missing parts. Key Features The following features are available: Key Feature Use Manage planned independent re You can create and change planned independent requirements. quirements Perform material requirements planning You can automate the planning of the procurement process. You can schedule your MRP runs to be executed automatically on a regular basis. The main aim of the planning run is to guarantee material availability to avoid delays in order fulfillment. To do this, the system checks the availability of each material in the planning run and creates purchase requisitions or planned orders if it detects short ages. Monitor and manage supply and demand You can monitor and adjust the current supply and demand situation using a selection of tools. You have system support in detecting material shortages, uncovered requirements as well as any issues regarding process orders or production orders. You are provided with further automated support for solving issues to avoid delays or disruptions due to missing items. Tools are also available for communicating with your supplier if solving the issues requires changing a purchase order or stock transport order. The stock/requirements list displays all supply and demand elements for all materials with a net requirement segment or individual segments in the form of a table and ena bles you to gain a quick overview of the stock/requirements situation for the material. You can also branch into the editing function for the MRP elements for this material. Planned orders are created automatically during a planning run. However, you can also create new planned orders or change existing ones manually to optimize the replenish ment situation. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 55 Key Feature Convert planned orders Use You can convert planned orders into production orders or process orders. You can con vert the planned orders manually or you can create a job to automate the conversion process. Planned orders are internal planning elements that are only used for planning purposes and do not trigger any procurement (with the exception of repetitive manufacturing). The system only triggers procurement once the planned orders are converted into fixed receipt elements: Discrete Manufacturing You can convert planned orders for materials that are to be produced inhouse to production orders. You can convert your planned orders manually or automatically using an order conversion run. The material components re quired for production are contained as items in the planned order and are copied to the production order. The dependent requirements for the compo nents are converted into reservations. With the conversion to production or ders, the responsibility is passed on from the MRP controller to the produc tion supervisor. Process Industry In this case, you convert planned orders into process orders. Again, you can convert your planned orders manually or automatically using an order conver sion run. The material to be produced, the order quantity, and the order dates are copied from the planned order to the process order and the dependent re quirements for the components are converted into reservations. With the con version to process orders, the responsibility is passed on from the MRP con troller to the production supervisor. Repetitive Manufacturing In repetitive manufacturing, planned orders can be used to trigger production. In this case, the planned orders do not have to be converted into production or process orders. You convert planned orders for materials that are to be purchased externally into pur chase requisitions. In this case, the responsibility for the orders is passed on to the pur chasing department. If you are a production planner responsible for external procure ment and if you work with Production Planning and Detailed Scheduling (PP/DS), you can optimize the shipment of the materials to best utilize the capacity of your means of transport (such as a truck). 2.7.3 Manufacturing Execution for Discrete Industries 2.7.3.1 Production Control Business Background This process enables you to manage and regulate the manufacturing process. It is typically performed by the production supervisor who is responsible for dispatching production operations to individual machines if a 56 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management work center/resource has several alternative machines and for assigning shop floor specialists to operations or machines. The production supervisor also decides on measures to mitigate machine breakdowns or missing components, for example. Key Features The following features are available: Key Feature Use Monitoring and adjusting the production worklist You can change production orders or process orders, perform scheduling, and check component availability. Releasing production orders/process or ders You have to release the production/process order before it can be processed. You can use the time period between creating and releasing an order, for ex ample, to carry out company checks and preparations. You can instruct the system to perform a component availability check at order release. You can release the production/process order at header level releasing all op erations. Or, you can release single operations. You can also perform a mass release. Furthermore, you can schedule an order release run that instructs the system to release all your production/process orders periodically. Once the orders are released, you can execute confirmations, print shop floor papers, and execute goods movements, for example. Monitoring production execution You have various options for monitoring production progress. Order Progress Report. This report shows you which documents, MRP elements, stocks, and de liveries exist for products and their components that have been ordered by a customer. The order progress report gives you a quick overview of the status of production and procurement, statements about the adher ence to delivery dates or delays and this information can be displayed for more than one sales order or a WBS element. From the report, you can navigate to the individual procurement elements, the stock/requirements list, or the stock overview, for example. Order Information System This report provides you with reporting functions for production orders, planned orders, and process orders. You can view all the orders in the sys tem, including the orders with deletion flags or deletion indicators. For production and process orders, you can display the order headers, items, documented goods movements, operations, components, the production list, and confirmations, for example. From the report, you also have vari ous navigation options. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 57 Key Feature Executing production completion Model the exchange of data relevant to production Use To complete the production process, you can set the status of the production/ process order to technically complete and you can complete the order settle ment. When an order is settled, the actual costs incurred for the order are set tled to one or more receiver cost-objects (for example, to the account for the material produced or to a sales order). Technical completion means ending a production order from a logistical view point. The following actions are executed for orders with this status: The order is no longer relevant for MRP Reservations are deleted Capacity requirements are deleted Purchase requisitions for external operations or non-stock materials are deleted The order and its operations are set to Technically Completed An order with this status can no longer be changed. You can, however, still make postings for the order such as a material withdrawal or a confirmation. After closing the order, no further updates are possible. You have to provide the shop floor with up-to-date information to keep your production process running as smoothly and efficiently as possible. To this end, you can define in detail how the production process is to be executed and the data you want to collect during production. You can compare this data with existing data and continually make improvements to the process. 2.7.3.2 Production Execution Business Background This capability enables you to make all the necessary preparations required for production, to coordinate the exchange of data relevant to production, and to document production progress. It is typically performed by the production operator and includes the following tasks: Material staging before production starts. Reporting goods withdrawals. Processing time tickets for a production order or a process order. Entering the goods receipt information for the order on completion of the product. Executing planned manual production steps. Documenting and logging production information. 58 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Key Features The following features are available: Key Feature Use Monitoring released production orders/ process orders You can display the released production/process orders. This means that you have access to all the information required to produce the product including dates, times, and quantities, for example. Picking You can use the picking function to determine which components have not yet been issued from stock for an order and then you can perform the goods is sue. Confirming production You can confirm the production progress for production and process orders. A confirmation documents the processing status of orders and triggers the fol lowing business operations, for example: Updates order data (quantities, activities, dates, status, for example) Backflushes material components Posts goods receipts Updates costs You can cancel or partially cancel confirmations. You can reprocess goods movements. Exchange of data relevant to production Depending on the production process, various manual steps have to be proc essed during production. You can display manual production steps and exe cute them. Such production steps include: Instructions on how to carry out production steps or guidelines, such as rules for handling hazardous materials or substances Recording of actual process data Reporting of entered and calculated values Performing calculations Creating comments Recording and logging of production infor You can document or log production information which requires a form that mation excludes manipulation. This is particularly relevant for regulated industries. 2.7.3.3 Repetitive Manufacturing Business Background You can use Repetitive Manufacturing for planning and controlling your production in repetitive manufacturing and flow manufacturing environments. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 59 In repetitive manufacturing, you can plan and monitor the material flow in a much higher level of detail than that at which you collect and analyze costs. You use planned orders to model, plan, and trigger material flow and product cost collectors to collect the costs. Planned orders are simple and easy to manage with low overhead which you can use to model small increments of the production quantity. The product cost collectors collect the costs of the complete quantity produced during an accounting period. All deviations are aggregated. On the other hand, in discrete manufacturing, you plan and manage both the material flow and costs on the same level of detail in the production order, for example. Therefore, if you want to collect scrap and other deviations in detail, you are recommended to use discrete manufacturing. You can use repetitive manufacturing in the following scenarios: Make-to-stock production Production is controlled without a direct reference to the sales order. Run schedule quantities determine the dates and quantities. Run schedule quantities are planned orders of the type PE that do not have to be released and that you do not have to convert into production or process orders to be able to carry out production. The requirements are generated by demand management, for example. Sales order quantities are delivered from stock and consume the planned independent requirement quantities in demand management, according to the planning strategy you select. A product cost collector is used to collect actual data and to settle costs. Make-to-order production The system creates one or several planned orders which directly reference the sales order item. The material is then manufactured on the basis of these planned orders. That is, production is triggered by the receipt of the sales orders. For component materials that are relevant to repetitive manufacturing, you use the product cost collector of the component to collect costs. On finished item level, you either use valuated or non-valuated material: Costs are collected by the sales order if you use non-valuated material and by the product cost collector if the material is valuated. The business process includes analysis, material requirements planning, and the evaluation of the planning results. You can carry out extensive planning steps such as the MRP run in the background or manually. 60 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Key Features The following features are available: Key Features Use Planning table Your main planning tool in repetitive manufacturing is the planning table. It is an opera tive planning tool that you can use to plan the production quantities. In the planning run, the system assigns the run schedule quantities to the correct line as defined in the production version. In the planning table, you can change the assignment of run sched ule quantities to production lines/versions manually. In this type of manufacturing, you plan and control your production using the planning table based on periods and quantities. You can check production quantities, monitor the available capacity of the production lines and check up on the availability situation of the products produced on each line. In the planning table, you can enter and change production quantities and you can assign and reassign quantities to alternative produc tion lines. The planning table allows you to schedule planned orders to the corresponding produc tion lines as follows: You can change the planned orders/run schedule quantities created in MRP man ually (such as quantity/date changes), or you can create additional orders. You can assign unassigned production quantities to the production lines or reas sign production quantities to different production lines. You have the option of using production or process orders to perform planning tasks. A prerequisite for this is that you have created a valid production version for the material. Because planning is often carried out on the basis of shifts, the planning table also has functions for distributing production quantities across shifts. Staging materials using the pull list You can use the pull list to control the in-house flow of material for supplying produc tion with materials. A prerequisite for this is that the components required for produc tion are already available (either produced in-house or procured externally) and must only be brought from their current storage location to the production storage location. The pull list checks the stock situation at the production storage location and calcu lates the quantities of missing parts. You can create replenishment elements for these missing parts. You can stage the components by direct stock transfer or stock transfer reservation. You can also trigger replenishment by setting a kanban to empty or by cre ating transfer requirements in Warehouse Management. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 61 Key Features Use Confirming production for repeti tive manufacturing Separate tools are available for recording work progress in a repetitive manufacturing environment. In accordance with the requirements of this type of production, the con firmation process is very lean. For example, you have the option of deferring the entry of all actual data from production until the receipt of the finished part is recorded by a goods receipt confirmation. In the case of make-to-stock repetitive manufacturing, you also have the option of posting a reporting point confirmation at defined operations to record the stock of semifinished products in production, for example. You can couple the following processes in a goods receipt confirmation: Posting of goods receipts for finished products Posting of goods issues for the components (backflushing) Reduction of planned orders Posting of production costs to the product cost collector Updating of statistics for analytical purposes You can also cancel incorrect confirmations and reprocess goods movements. Analyze the product cost collector You can analyze the costs per period. This means that you collect costs in a cost object over a long period of time and can analyze the credits and debits for certain periods. Perform evaluations/reporting You can create the following evaluations: Reporting point overview You are provided with a statistical overview of all the reporting points of a produc tion version. Backflushing documents Documents are saved in the system for all backflushes. You can list and print these documents according to various selection criteria. Updating planned quantities Call cost reports in Cost Object Controlling 2.7.3.4 Kanban Business Background Kanban is a procedure for controlling production and material flow based on physical material stock in production. Material that is required on a regular basis is kept available in small quantities in production. With kanban, the replenishment or production of a material is only triggered when a certain quantity of the material has been consumed. This replenishment is triggered directly by production using previously maintained master data. Entries in the system are reduced to a minimum; to the input of a bar code, for example. All other actions are carried out automatically in the background. With kanban, the production process is designed to control itself and the manual posting effort is kept to a minimum. Thus, you can achieve shorter lead times and reductions in stock levels. With kanban, for example, the signal for material replenishment is triggered by the work center that requires the material (the consumer or the demand source). This signal can simply be a card that the demand sources 62 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management sends to the work center that produces the material (producer or supply source). This card describes the required material, quantity, and information on where it is to be delivered. It is these cards, which are known as kanbans in Japanese, that have given this type of production its name. On receipt of the material, the demand source can post the goods receipt simply by entering or scanning a bar code. Compared to the basic kanban process that only uses boxes and cards to trigger material replenishment, this automated solution offers the following advantages: Goods movements are posted automatically meaning that inventory information is always up to date. Your supply sources are informed faster about the requirements situation at the demand source. The system collects data about the kanban cycle times that you can use to improve the process. Key Features The following features are available: Key Feature Control cycle maintenance Use You define the relationship between the demand source (such as a production line in production) and the supply source (such as an external supplier or warehouse) in the control cycle. The control cycle contains the following control data for kanban produc tion: Kanban circulation, that is, the number of kanbans that circulate between the sup ply source and demand source and the material quantity per kanban. Basic data required for the automatic kanban calculation in the control cycle, if necessary. Replenishment strategy such as in-house production, external source, or stock transfer. Printing kanbans, if necessary. Delivery address, if necessary. Process control (such as the indicator for separate goods receipt, status sequence key, indicator for the logic to trigger the replenishment for one-card kanban, pack ing instructions, and production call profiles). SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 63 Key Feature Use Kanban status change (Confirmation) You can control the production process by setting your kanbans to the appropriate sta tus. You mainly use the statuses empty and full which are mandatory statuses. When a material in a kanban has been used up, you set the kanban status to empty which auto matically triggers the replenishment process. The source of supply (producer, supplier) receives the signal to fill up the kanban. When you receive the full kanban back at the demand source (consumer), you set the kanban status to full which triggers the goods receipt posting for the material. You can work in a kanban environment quite efficiently using these two statuses. You can perform the status changes using bar codes and bar code scanners. When you scan the bar code, the required data is sent from the demand source to the supply source. If you require additional information for special cases, the following (optional) statuses are available: Waiting: Indicates that although the material has been consumed, the supply source is not yet to replenish it. You also use this status if a new kanban has been created. In process: Indicates that the requested material is currently being produced by the supply source. In transit: Indicates that the material is currently on its way from the supply source to the demand source. In use: Indicates that the material is currently being withdrawn by the demand source. Error: Assigned by the system. Indicates that a desired status could not be set suc cessfully. You only use the first four additional statuses if you work with the kanban board. Here, you can use them to record work progress. Monitoring with the kanban board You can use the kanban board to monitor production progress. Irrespective of whether you are the supply source or the demand source, the kanban board provides you with a detailed overview of the kanbans in circulation. You can also use the kanban board to change the status of the kanbans. The following additional information is available, for example: You can display the control cycle, material, plant, actual quantity, status, date of the last status change and so on by double-clicking the individual kanbans. You can display the control cycle data by double-clicking the appropriate row on the kanban board. You can navigate to the stock/requirements list, the stock overview, or the material master for a control cycle. You can trigger the kanban correction facility for a control cycle. 64 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Key Feature Cost accounting for Kanban Use You have various options for controlling cost accounting for kanban with in-house pro duction depending on which replenishment elements are used. If you use: Run schedule quantities: The costs are collected in a product cost collector and can be settled periodically in product costing. Manual kanban: The costs are also collected in a product cost collector. Production orders or process orders: The costs are either collected in a product cost collector if you want to analyze the costs by periods rather than by lot, or they are settled to the individual production orders/process orders. Updates to the actual costs at the product cost collector can be triggered by logistical transactions (such as goods issues or confirmations) for production/process orders and run schedule headers. For example, goods issues for a production order or report ing point backflushes in repetitive manufacturing debit the product cost collector with actual costs. Goods receipts credit the product cost collector. Alternatively, the actual costs at the product cost collector can be updated directly through G/L account post ings in Financial Accounting (FI), for example. You can access reports and view the actual costs for the product cost collector. During the period-end closing, you can: Charge the product cost collector by means of template allocation. Revaluate the activities at actual prices. Calculate overhead for the product cost collector. Calculate the value of your unfinished products (work in process) for the period. Calculate the variances of the period. Settle the work in process and variances to other application components. 2.7.3.5 JIT Outbound Processing Business Background Just in Time (JIT) Outbound Processing enables you to replenish direct materials required for manufacturing in the exact quantity and at exactly the time required. You can determine that the required materials are provided internally from a different location, for example. Or, you can specify that the required materials are provided by an external supplier. If you opt for material provision from an external supplier, you can use scheduling agreements with delivery schedules for procurement and production planning processes. JIT calls are used as a replenishment request and the fulfillment is done with reference to them. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 65 Key Features The following features are available: Key Feature Use Summarized JIT call processing You can use this feature for processing JIT calls that request a specific material, in a specific quantity, to be delivered at a specific time, to a specific location within your plant. The source of replenishment could either be another internal location resulting in a stock transfer, or an external supplier from whom you purchase the material. In the case of an external replenishment, you use purchasing scheduling agree ments to support the supply planning and procurement processes involved. You use control cycles that enable and define the replenishment process. You start the process by creating the JIT call with reference to a control cycle. Depending on the source of replenishment and how you have configured the process, a set of sequenced actions is executed until the fulfilment is completed. When re questing the material from an external supplier, a delivery is expected as the basis for the goods receipt and the supplier invoice, or the credit memo proc essing. In the case of an internal replenishment, fulfilment is completed when you post the goods receipt which results in a stock transfer. You can monitor the status of the JIT call to track the progress. Supply-to-production planning You can use this feature for planning, triggering, and monitoring replenishment using summarized JIT calls. For each control cycle used for supply-to-produc tion planning, the system calculates replenishment requirements taking ac count of: Open JIT calls Available stock at the production location A defined minimum stock level Component requirements from production planning Forwarded sequenced JIT call processing You can use this feature to forward a group of components of an inbound se quenced JIT call received from your customer to an external supplier who will assemble and deliver the component group. You use control cycles to enable and define the replenishment process. You can send a delivery confirmation to your supplier which is used for the invoicing process. 2.7.3.6 JIT Inbound Processing Business Background You can use this component if you, as a supplier, receive and process just-in-time (JIT) calls. Just-in-Time Inbound Processing enables you to produce and deliver materials in the exact quantity, for the exact time, and 66 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management even in the sequence defined by your customer. You use scheduling agreements with delivery schedules for sales and production planning processes. The JIT inbound process starts with the receipt of JIT calls from your customer. Depending on your business scenario and material, the fulfillment of this request can trigger various different activities. You can monitor the fulfillment progress to ensure successful completion. In sequenced JIT processing, your customer also specifies the sequence in which you are to deliver the products as well as production-related information. Your customer may send an initial call with subsequent updates later according to planning and production execution progress. You can use the initial call for planning or even production purposes. The last call update from your customer provides the final sequence and expected date and time for grouping, packing, and delivery. Your customer sends this information as soon as the production sequence is frozen or production has started meaning that no further changes are expected. This is particularly important when the material requested is different for each production lot depending on variant configuration. In the case of more complex products with a high number of variants, the sequenced JIT call contains multiple call components instead of a single material. This information is also reflected in the delivery and is used as the basis for the billing or self-billing process. You have to take account of the sequence information in the JIT call when grouping, packing, and loading the requested materials for shipping. Key Features The following features are available: Key Feature Summarized JIT call processing Use You can process JIT calls from customers that request a specific material in a specific quantity to be delivered at a specific time to a specific location. The process starts with the receipt of the JIT call. Depending on how you have con figured your process, you execute a set of sequenced actions until the cus tomer requirement has been fulfilled. You can use the repetitive manufacturing solution to produce the JIT call material. You create a delivery document with reference to the JIT call for shipping the goods. This document is used as the basis for the goods issue posting and the billing process. You can monitor the status of the JIT call to track progress. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 67 Key Feature Sequenced JIT call processing Use You can process JIT calls from customers that request a specific material in a specific quantity to be delivered at a specific time to a specific location in a defined sequence. The process starts with the receipt of the JIT call. You can still receive further status updates for the JIT call from your customer provid ing additional or final data. The initial, external status of the JIT call may allow a pre-assembly whereas further external status updates allow for final assembly and shipping. Depending on how you have configured your process and the ex ternal status of the JIT call, you execute a set of sequenced actions until the customer requirement has been fulfilled. You can use the repetitive manufac turing solution to produce the JIT call material. You create a delivery document with reference to the JIT call for shipping the goods. This document is used as the basis for the goods issue posting and the billing process. Alternatively, the billing process can also be based on a delivery confirmation sent by the cus tomer. You can monitor the status of the JIT call to track progress. 2.7.4 Manufacturing Execution for Process Industries 2.7.4.1 Production Control Business Background This process enables you to manage and regulate the manufacturing process. It is typically performed by the production supervisor who is responsible for dispatching production operations to individual machines if a work center/resource has several alternative machines and for assigning shop floor specialists to operations or machines. The production supervisor also decides on measures to mitigate machine breakdowns or missing components, for example. Key Features The following features are available: Key Feature Use Monitoring and adjusting the production worklist You can change production orders or process orders, perform scheduling, and check component availability. 68 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Key Feature Use Releasing production orders/process or ders You have to release the production/process order before it can be processed. You can use the time period between creating and releasing an order, for ex ample, to carry out company checks and preparations. You can instruct the system to perform a component availability check at order release. You can release the production/process order at header level releasing all op erations. Or, you can release single operations. You can also perform a mass release. Furthermore, you can schedule an order release run that instructs the system to release all your production/process orders periodically. Once the orders are released, you can execute confirmations, print shop floor papers, and execute goods movements, for example. Monitoring production execution You have various options for monitoring production progress. Order Progress Report. This report shows you which documents, MRP elements, stocks, and de liveries exist for products and their components that have been ordered by a customer. The order progress report gives you a quick overview of the status of production and procurement, statements about the adher ence to delivery dates or delays and this information can be displayed for more than one sales order or a WBS element. From the report, you can navigate to the individual procurement elements, the stock/requirements list, or the stock overview, for example. Order Information System This report provides you with reporting functions for production orders, planned orders, and process orders. You can view all the orders in the sys tem, including the orders with deletion flags or deletion indicators. For production and process orders, you can display the order headers, items, documented goods movements, operations, components, the production list, and confirmations, for example. From the report, you also have vari ous navigation options. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 69 Key Feature Executing production completion Model the exchange of data relevant to production Use To complete the production process, you can set the status of the production/ process order to technically complete and you can complete the order settle ment. When an order is settled, the actual costs incurred for the order are set tled to one or more receiver cost-objects (for example, to the account for the material produced or to a sales order). Technical completion means ending a production order from a logistical view point. The following actions are executed for orders with this status: The order is no longer relevant for MRP Reservations are deleted Capacity requirements are deleted Purchase requisitions for external operations or non-stock materials are deleted The order and its operations are set to Technically Completed An order with this status can no longer be changed. You can, however, still make postings for the order such as a material withdrawal or a confirmation. After closing the order, no further updates are possible. You have to provide the shop floor with up-to-date information to keep your production process running as smoothly and efficiently as possible. To this end, you can define in detail how the production process is to be executed and the data you want to collect during production. You can compare this data with existing data and continually make improvements to the process. 2.7.4.2 Production Execution Business Background This capability enables you to make all the necessary preparations required for production, to coordinate the exchange of data relevant to production, and to document production progress. It is typically performed by the production operator and includes the following tasks: Material staging before production starts. Reporting goods withdrawals. Processing time tickets for a production order or a process order. Entering the goods receipt information for the order on completion of the product. Executing planned manual production steps. Documenting and logging production information. 70 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Key Features The following features are available: Key Feature Use Monitoring released production orders/ process orders You can display the released production/process orders. This means that you have access to all the information required to produce the product including dates, times, and quantities, for example. Picking You can use the picking function to determine which components have not yet been issued from stock for an order and then you can perform the goods is sue. Confirming production You can confirm the production progress for production and process orders. A confirmation documents the processing status of orders and triggers the fol lowing business operations, for example: Updates order data (quantities, activities, dates, status, for example) Backflushes material components Posts goods receipts Updates costs You can cancel or partially cancel confirmations. You can reprocess goods movements. Exchange of data relevant to production Depending on the production process, various manual steps have to be proc essed during production. You can display manual production steps and exe cute them. Such production steps include: Instructions on how to carry out production steps or guidelines, such as rules for handling hazardous materials or substances Recording of actual process data Reporting of entered and calculated values Performing calculations Creating comments Recording and logging of production infor You can document or log production information which requires a form that mation excludes manipulation. This is particularly relevant for regulated industries. 2.7.5 Outsourced Manufacturing 2.7.5.1 Basic Subcontracting Business Background Basic subcontracting provides you with the means to instruct a supplier or subcontractor to process a material for which you provide the components. When procuring materials externally, you use subcontracting purchase SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 71 orders or schedule lines to alleviate capacity bottlenecks. Subcontracting purchase orders/schedule lines instruct your subcontractor to make a certain finished material using the components that you provide and potentially using additional components provided by the subcontractor. Key Features The following features are available for the external procurement of materials: Key Feature Use Planning materials to be made by a sub contractor This features enables you to plan your materials that are produced by a sub contractor. In the planning run, the system creates subcontracting purchase requisitions or schedule lines for the material which is made by the subcon tractor, explodes the BOM of these materials, and creates subcontracting re quirements. You may have more than one subcontractor that supplies one material and they may require different components to be provided while they procure the other components themselves. In this case, you have to create several produc tion versions that cover the needs of your different subcontractors. The pur chasing info record of the subcontractor references the appropriate production version. Planning materials to be provided to sub contractor This features enables you to plan the parts to be provided to your subcontrac tor. You can create an MRP area for each subcontractor which simplifies the planning process if you have several subcontractors. When planning the component materials with subcontracting MRP areas, the system checks whether the subcontracting requirements can be covered by existing inventory at your subcontractor's or whether you have already sent the parts to be provided to your subcontractor. If current inventory at your sub contractor does not cover the subcontracting requirements, the system cre ates a stock transfer reservation to transfer the demand from the subcontrac tor company to your company. You can then produce or procure the material and send it on to your subcontractor. 72 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Key Feature Use Triggering the provisioning of the materi als to be provided to subcontractor (sub contracting cockpit) This feature provides you with a comprehensive overview of all relevant infor mation about your subcontracting process. It provides a single entry point for all documents related to your subcontracting process providing direct access to the following features: You can choose whether you want to send your components to the sub contractor using the one-step procedure, or the two-step procedure. You can check directly whether your components are already at the subcon tractor's site, or still on the way there. You can check which components are currently in the subcontracting stock. When you create a subcontracting order, you can change the shipping point for the outbound delivery, or change the batch number. For each purchase order item, you can display additional information such as the production order, the number of the external operation, or the oper ation text. For each purchase order item, you can create an outbound de livery that is displayed in the purchase order history for the corresponding item. You can also process the following documents centrally in the Subcontracting Cockpit: Purchase orders Purchase requisitions Outbound deliveries with open goods issues Reservations External deliveries (subcontracting components that are prepared by a third party) Key data such as the supplier, material, or plant is displayed for each of these documents. Goods receipt for parts made at subcon tractor The goods receipt of the subcontracting purchase order/schedule line triggers updates to inventory, purchasing statistics and so on. In addition, the system backflushes the components that were provided to the subcontractor. 2.7.5.2 Basic External Processing Business Background Basic external processing provides you with the means to instruct a supplier or subcontractor to process individual production steps such as operations or sub-operations. The external processing of production order operations is frequently used for standardized process steps such as galvanizing which you cannot perform in your own factory. In the case of galvanizing, you may have environmental reasons for outsourcing this step to your subcontractor. In this case, it does not matter to the subcontractor which material IDs are produced. The subcontractor is only responsible for processing (galvanizing) a certain quantity of (metal) pieces. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 73 Key Features The following features are available for basic external processing: Key Feature Use Planning externally processed operations When you convert a planned order into a production order, the system checks to see whether there are any routing/work center operations that require ex ternal processing. You can use external processing if you have individual pro duction steps that are operations or sub-operations which are performed out side of your company by a supplier. This provides you with an alternative to inhouse production if capacity bottlenecks occur. You can use an outline agreement to specify that a certain operation of the pro duction order is executed by an external subcontractor on a regular basis. Scheduling externally processed opera tions When you perform scheduling, the system takes account of any external oper ations. The duration of an external operation is calculated either by using the planned delivery time or using the standard values. The system automatically creates a purchase requisition for the operation or sub-operation that requires external processing. This requisition is automatically updated with any quan tity changes made to the production order. You should not convert the purchase requisition into a purchase order until the external processing is actually required. The reason for this is that any quantity changes made in the production order will automatically update the requisi tion. Once you have created the purchase order, it is printed and sent to the supplier. 74 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Key Feature Use Triggering the provisioning of the materi als to be provided to subcontractor (sub contracting cockpit) This feature provides you with a comprehensive overview of all relevant infor mation about your subcontracting process. It provides a single entry point for all documents related to your subcontracting process providing direct access to the following features: You can choose whether you want to send your components to the sub contractor using the one-step procedure, or the two-step procedure. You can check directly whether your components are already at the subcon tractor's site, or still on the way there. You can check which components are currently in the subcontracting stock. When you create a subcontracting order, you can change the shipping point for the outbound delivery, or change the batch number. For each purchase order item, you can display additional information such as the production order, the number of the external operation, or the oper ation text. For each purchase order item, you can create an outbound de livery that is displayed in the purchase order history for the corresponding item. You can also process the following documents centrally in the Subcontracting Cockpit: Purchase orders Purchase requisitions Outbound deliveries with open goods issues Reservations External deliveries (subcontracting components that are prepared by a third party) Key data such as the supplier, material, or plant is displayed for each of these documents. Valuating externally processed operations When data is maintained for an external activity, a cost element is specified. The cost element determines how the external activity is to be valuated. A de cision needs to be made whether an operation or suboperation is processed externally via its control key. The control key determines whether externally processed operations are scheduled on the basis of their standard values or the planned delivery time. This information is needed to settle externally proc essed operations and suboperations that have been marked as relevant for costing in their control keys. Goods receipt When the supplier has completed the external processing, the material is ship ped back. You receive the externally processed goods back into the warehouse. The supplier service is reflected in the production order by means of an opera tion confirmation. The purchase order and the production order both show the quantity received and the system updates the status of the operation accord ingly. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 75 2.7.6 Quality Management 2.7.6.1 Quality Engineering Business Background Quality engineering helps you to ensure the quality of your products, processes, and services right from the start. During the early stages of product design and development, it is important to have the correct quality tools and to implement appropriate quality-planning strategies in your processes. Key Features The following features are available: Key Feature Use Failure Mode and Effects Analyses You can use this feature when planning new products and processes. It enables you to (FMEA) prevent and avoid defects. You can perform a risk analysis and derive quality-specific actions that ensure high levels of quality. Control plans You use this feature in combination with the Failure Mode and Effects Analysis to per form an integrated inspection planning for goods receipt inspections and inspections during production. The control plan describes how products and processes are moni tored. It contains tasks that are executed for each phase of the process. Quality-related master data For quality planning purposes, you define specifications and processes on a long-term basis as master records. You can define quality-related data for generic master data records, for example, mate rial or supplier. Inspection planning You use the inspection planning functions to define inspection criteria (for example, material to be inspected, how the inspection is to take place, characteristics to be in spected, required test equipment, work center, and inspection specifications). 2.7.6.2 Quality Inspection Business Background You can prepare, execute, and monitor different types of quality inspections, for example, in purchasing, production, or sales scenarios. 76 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Key Features The following features are available: Key Feature Use Inspection lot creation An inspection lot represents the request to perform a quality inspection. Inspection execution This feature allows you to record the results of an inspection, for example, for an inspec tion lot. Inspection completion Once the inspection results have been recorded, the inspection lot is completed with the usage decision. Dynamic modification of the in spection scope You can define rules so that the system automatically determines the scope of the next inspection dependent on the latest inspection results. You can vary the sample size of the next inspection lot in stages between a predefined inspection scope and a skip. Defects recording You can record individual defect items. Sample management You use this feature for processing and managing samples. Sample management allows you to: Flexibly plan the drawing of samples Identify samples Record inspection results for samples Manage the sample data Calibration inspections You can plan and perform calibration inspections of test equipment. Based on the in spection results, you can verify the accuracy and suitability of test equipment for an in spection. Stability studies You use this feature to track and examine how different environmental conditions (for example, temperature, brightness, moisture) affect a compound, a material, or a batch over a specified period of time. Quality certificates You can manage quality certificates in inbound and outbound processes. 2.7.6.3 Quality Improvement Business Background Quality improvement provides tools that are the basis for improving your processes and products. You can gain better insights into your quality-related data and thereby reach your corporate quality goals. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 77 Key Features The following features are available: Key Feature Use Quality notifications and root cause analysis This feature allows you to record and process quality problems and complaints and to execute the problem-solving process including root cause analysis. Corrective and preventive actions You can trigger actions in order to solve a problem and to prevent the problem from re curring. Quality analytics An integrated set of quality data allows you to quickly identify systematic errors, ana lyze problems, eliminate root causes, and respond faster to unforeseen events and de viations. You can perform quality evaluations based on inspection results or based on issue data. Audit management An audit is a systematic examination for determining, evaluating, and documenting the extent to which an object fulfills predefined criteria. Audit management supports you in all phases of auditing. 2.7.7 Maintenance, Repair, and Overhaul 2.7.7.1 Maintenance, Repair, and Overhaul (MRO) Business Background Maintenance, Repair, and Overhaul (MRO) supports processes for hardware maintenance, component repair, and line maintenance for aftermarket services, post-delivery returns, and any form of repairs during the product life cycle. 78 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Key Features The following table explains the key features available: Key Feature Inventory management Provisioning, Procurement, and Sales Use The MRO extension of inventory management is capable of procuring and then stocking a part using its original manufacturer's part number in the parts plan ning and consumption. The parts interchangeability feature allows the stocking of different manufac turers' parts that meet Form-Fit-Function rules, allowing MRP to calculate part demand and view stock across manufacturers' part numbers for part availabil ity. It also has the capability to stock and repair customer-owned parts that are segregated by customer numbers. This special procurement extension is primarily used by the airline industry, which uses the ATA Spec 2000 exchange to procure spare parts. Other indus tries would use the standard procurement solution. The Initial Provisioning component supports you in the selection and initial pro curement of spares for a new fleet of aircraft, vehicles, equipment or other end products before you have established regular operational and maintenance processes. This solution also generates a detailed attachment for a resource-related debit memo request (DMR) or invoice. This attachment contains structured details of the resources you are billing to the customer, with the required level of detail for those industries that require such information; for example, the airline in dustry and the aerospace and defense contracting industry. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 79 Key Feature Maintenance Planning Use This includes: Spare Parts Stock Calculation: This application determines an initial stock level for the part type required to supply a serviceable part, with probabil ity of a specific percentage if the part in question fails. The probability is represented by the service level. Work Packaging and Sequencing (WPS): This application summarizes processes and activities for planning and performing large maintenance tasks. Mass Maintenance of Maintenance Plans: This function allows you to change several maintenance plans in the same way at the same time. Maintenance Program Definition: This component provides a workbench that you can use to transform complex maintenance requirements into maintenance plans within the maintenance execution system. Maintenance and Service Planning (MSP): You use MSP to carry out the following: Strategic planning over a long-term horizon, such as 5-10 years, al lowing you to determine the resources necessary to meet future maintenance demands Tactical planning over a mid-term horizon, such as 1-18 months, to ensure that your maintenance objects remain serviceable, optimize utilization of your maintenance objects, and balance the resource load in your service areas 80 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Key Feature Maintenance and Service Processing (MSP) Use In maintenance and service processing, the primary objective is to ensure the hardware availability of technical objects. The process includes activities for tracking individual components during their entire life cycle, whether installed in the hardware, stored in a warehouse, or serviced in a workshop. Components are exchanged if they cannot be repaired in time, have reached their life limits, or are listed in service bulletin directives for replacement. In the case of rotables, an unserviceable component is placed in a warehouse and re placed by a new or serviceable component. In urgent cases (for example, if a component cannot be transferred to a line station in time), a component is taken from other equipment that is currently not in operation. Sometimes it is possible to swap identical components within an equipment number, instead of repairing the defective component. MSP features include: Component Maintenance Cockpit (CMC) Subcontracting for MRO Processes Plant Maintenance and Customer Services (PM/CS) Orders in the MRO Process Assignment of PM/CS Orders to Projects Sharing of Spare Parts Configuration Control Logbook Integration of Service Processing with Warranty Claims 2.7.8 Maintenance Operations 2.7.8.1 Plant Maintenance Master Data Business Background By mapping your operational structures to technical objects, you can efficiently manage and evaluate your technical assets and maintenance objects and monitor the costs involved. Structuring the existing technical systems on the basis of technical objects reduces the time required for managing the technical objects and allows a faster evaluation of maintenance data. A functional location represents an area within a system or plant where an object can be installed. Functional locations are created in hierarchical structures and thus allow a spatial, functional, or process-oriented structuring of your systems. Individual maintenance objects are represented by pieces of equipment that are installed in functional locations. The usage times of a piece of equipment at a functional location are documented over the course of time. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 81 Key Features The following features support you with this process: Key Feature Use Structuring Technical Objects Hierarchically and Horizontally The functional location is an organizational unit that structures the maintenance objects of a company according to functional or process-related criteria. When creating a func tional location and defining its place in the hierarchical structure you define where a piece of equipment can be installed. Pieces of equipment can be installed in different functional locations or in other pieces of equipment. As functional locations represent your company's operational structures, they are usu ally part of a hierarchical structure and you can summarize costs or other maintenance data for individual hierarchy levels. Based on the structure indicator, functional locations are automatically arranged in the structure when you create them. You can also create hierarchical equipment structures if you want to divide large pieces of equipment into smaller units. If you want to structure your technical systems horizontally, you can create object net works. Object networks are represented by links between various pieces of equipment or functional locations. Creating Master Records for Functional Locations and Pieces of Equipment Once the structure of the asset is defined, you can create a master record for each func tional location and piece of equipment and specify general data, location data, organiza tional data, and structure data as well as edit classification data and characteristic val ues, and assign documents. You can assign a bill of material (BOM) to the master record of a functional location or piece of equipment. After having created characteristics and classes, you can assign this classification information to the master records of equipment and functional locations. If you have to manage a large number of objects, the classification enables you to easily locate your objects and group them together for evaluations. You can serialize a piece of equipment by assigning a material number and serial number to it. This makes inventory management possible for the equipment. A piece of equipment that is installed in a technical object can store the history of its installation location. The system records a usage period for each installation loca tion, enabling you to track the complete installation history. You can maintain fleet information, such as data pertaining to the engine and fuel, in the equipment master record. You can represent objects that are not repaired but rather exchanged in case of a break down by creating master records for materials and assemblies. Although this does not enable you to document a maintenance history, a material or assembly can also serve as a reference object for a maintenance notification or order. 82 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Key Feature Use Creating Maintenance Bills of Materials (BOMs) A maintenance bill of material (BOM) is a complete, formally structured list of the com ponents making up a technical object or an assembly. Maintenance BOMs support you when locating malfunctions by providing you with an overview of all components that make up a technical object. From this overview you can easily select the object for which you want to create a malfunction report. Furthermore, maintenance BOMs provide you with an overview of all spare parts used for the maintenance of a specific technical ob ject, so they make spares planning considerably easier. A maintenance BOM contains the object numbers of the individual components together with their quantity and unit of measure, and can be assigned to the master record of a technical object or material. Reading Measuring Points and Measuring points and counters are located on technical objects. They help you docu Counters and Creating Measure ment the condition of a technical object at a particular point in time and support you in ment Documents performing counter-based or condition-based maintenance. Documenting the condition of a particular object is of great importance in cases where detailed records regarding the correct condition have to be kept for legal reasons. This could involve critical values recorded for environmental protection purposes, as well as measurements of emissions and pollution for objects of all types. If you perform counter-based maintenance, mainte nance activities are always performed when the counter of the technical object has reached a particular counter reading. In the case of condition-based maintenance, the activities are triggered when the measuring point of a technical object has reached a par ticular state. After a measurement has been taken at a measuring point or a counter, the data is stored in a measurement document. Based on that document the system calculates the next planned maintenance date and the call date on which a maintenance order is cre ated. Each time you create a new measurement document, the system recalculates the planned date for the next maintenance work. Accessing Context-Sensitive In formation In functional locations and pieces of equipment quickviews appear as separate popups when you hover over an object, and provide relevant information about the superior technical object or the installed piece of equipment. In technical objects you can open preconfigured side panels in a separate screen area and display context-sensitive charts and data. You can enhance the side panels to meet your requirements, thereby specifying which information you want to have displayed in the side panel. Processing Master Data in the Information Center You can use the Information Center to search for functional locations and pieces of equipment, and to call up technical objects from a personal worklist (POWL). Your per sonal worklist contains your favorites and objects that you have recently accessed or changed, and provides you with direct access to the Asset Viewer. You can personalize your worklist to your needs, sort table columns, and set filters. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 83 Key Feature Use Visualization of Technical Ob jects in the Master Data With the SAP 3D Visual Enterprise Viewer, you can display graphics of technical objects right in the master data. You can display the graphic of the technical object as a thumb nail, as a 2D image or a 3D scene. In the 3D scenes, you can use various display func tions, for example, you can pull the visualized model apart or rotate it, display a detailed view or a cross-section, as well as display associated parts lists. Viewing Technical Objects in the Asset Viewer The Asset Viewer is a display tool that enables simple navigation through complex object relations and flexible navigation within and between objects. You can also view and navi gate the hierarchical structure of the technical object. 2.7.8.2 Maintenance Planning and Scheduling Business Background Maintenance Planning and Scheduling helps you optimize the scope of work and effort required for inspection, maintenance, and planned repairs. Based on legal requirements, manufacturer recommendations, and cost analyses, you determine which preventive maintenance tasks are required, which work centers are needed, and how frequently preventive maintenance tasks have to be processed to avoid breakdown time. Maintenance plans support you in specifying maintenance cycles, scheduling maintenance calls, and determining the expected costs for a specific time period. In maintenance task lists you can describe a sequence of individual maintenance activities which must be performed repeatedly within your company. In addition, you can use 2D and 3D model views to visualize technical objects, spare parts, and instructions as well as to find the spare parts you need for carrying out maintenance tasks quicker and easier. Key Features The following features support you with this process: Key Feature Use Planning Complex Maintenance Cycles with Strategies Maintenance strategies help you plan complex maintenance cycles. Based on legal re quirements, manufacturer recommendations, and cost analyses, you use maintenance strategies to determine the sequence of planned maintenance and inspection tasks. Maintenance strategies contain maintenance packages with general scheduling informa tion and can therefore be assigned to different maintenance plans. This reduces the time required for creating maintenance plans and allows you to update maintenance schedul ing information easily. 84 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Key Feature Use Processing Maintenance Plans To plan recurrent maintenance work, you can create time-based and performance-based maintenance plans, strategy plans, and multiple-counter plans. In time-based mainte nance planning, maintenance is performed in specific cycles, for example, every two months or every six months. With performance-based maintenance plans, you can plan regular maintenance based on counter readings maintained for measuring points of pieces of equipment and at functional locations. You can create and assign maintenance items that describe which preventive main tenance tasks should take place regularly for a technical object or a group of techni cal objects. You can assign a task list to the maintenance item to specify the individual work steps that must be executed, the spare parts and tools required for the job, as well as the required completion time. You can determine the maintenance cycles as planning data. If the maintenance plan is a strategy plan, the assigned maintenance strategy determines the mainte nance cycles. If the maintenance plan is performance-based, you can assign coun ters. Furthermore, you can specify other scheduling information, such as shift fac tors. You can view the scheduled maintenance calls for the maintenance plan. You can determine the expected costs for a specific period. The system calculates the costs based on existing calls and uses maintenance packages and cycles as well as assigned task lists as sources for estimating costs. When you schedule the maintenance plan and generate maintenance calls, the system generates maintenance call objects (for example, maintenance orders or maintenance notifications) for the due date, and copies the relevant planning data into the call object. You can display the scheduled calls using the call history. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 85 Key Feature Use Planning Recurrent Maintenance Maintenance task lists describe a sequence of individual maintenance activities which Work with Task Lists must be performed repeatedly within a company. They contain important information about the spare parts and tools required for the work steps, the work centers involved, and the time required to perform the work. As a maintenance planner, you can use task lists to standardize these recurring work sequences and to plan inspections, mainte nance, and repairs more effectively. Furthermore, task lists enable you to react quickly to changing environmental protection or occupational safety regulations that may affect continuous maintenance. You can create a general task list or a task list for a specific piece of equipment or func tional location: You can provide general information, such as the responsible work center and plant, the status, and the maintenance strategy. You can also specify a validity date that can be today's date or a date in the past or future. You can specify the required spare parts by assigning material components from the bill of material or adding materials that are not in the BOM of the maintenance object. You can determine which production resources or tools are required to perform the maintenance tasks, such as measuring and inspection instruments or cranes. You can describe the chronological interdependence between the maintenance tasks and create relationships between operations. You can create, display, and assign documents. You can perform cost analyses that allow you to see which of the operations descri bed have created which costs in a maintenance task list. This enables you to control your costs without creating an order. You can use task lists to detail out the individual work steps which must be executed as well as the spare parts and tools required for the job and the required completion time. When you then assign a task list to a maintenance item, maintenance notification, or an order, the system copies this maintenance data from the task list into the respective maintenance document. Performing Inspection Rounds You can plan and perform inspection rounds on different technical objects on a regular basis. The work activities in a round are similar and require the same tools, replacement parts, and qualifications while the number of technical objects may vary, depending on the sequence and the time required. An inspection round can involve functional loca tions, pieces of equipment, and measuring points or counters. You can assign an inspec tion round to a work center or a person. In an inspection round, you enter technical objects at the operation level of task lists or maintenance orders. 86 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Key Feature Use Accessing Context-Sensitive In In maintenance plan and task lists you can open quickviews and side panels to gather formation further information. Quickviews appear as separate popups when you hover over an object, and provide rele vant information about the technical objects or the long text. You can open preconfigured side panels in a separate screen area and display contextsensitive charts and data. You can enhance the side panels to meet your requirements, thereby specifying which information you want to have displayed in the side panel. Processing Maintenance Plans and Items from a Personal Ob ject Worklist The Maintenance Plan and Maintenance Item List is an individually configurable worklist (POWL) that allows you to display and process all maintenance plans and items that match the selection criteria in the query you have defined. The POWL provides the most important information about maintenance plans and items, enables you to carry out mass data changes and to navigate to the assigned technical objects. You can configure the list layout, sort table columns, and create filters. Selecting Spare Parts and View ing Visual Instructions in Task Lists With the SAP 3D Visual Enterprise Viewer, you can use functions to visualize technical objects, spare parts and instructions. 2D and 3D model views as well as animated scenes make critical maintenance processes such as finding the spare parts you need and car rying out maintenance tasks quicker and easier. Users can only display the 2D images and 3D scenes that have been published within their company. While working in a task list you can select spare parts from a 2D or 3D model view and copy them to the spare parts list. You can also watch visual instructions on how to carry out your maintenance tasks. Visual instructions can be animated 3D scenes that visual ize each and every maintenance step at operation level, for example. Viewing Relationships between Maintenance Objects in the As set Viewer The Asset Viewer is a display tool that enables simple navigation through complex object relationships and flexible navigation within and between objects. You can also view and navigate through the hierarchical structure of technical objects. 2.7.8.3 Maintenance Execution Business Background Maintenance Execution allows you to perform planned and unplanned maintenance tasks. Maintenance planners can carry out preliminary costing, work scheduling, material provisioning, and resource planning. They provide maintenance workers with job lists so that they have easy access to all maintenance-related information. This leads to increased efficiency and productivity. Maintenance workers can review the jobs assigned to them and carry out the required maintenance work based on the tasks and operations in the order. While confirming that they have finished the job, they can enter measurement readings, which the system records in measurement documents. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 87 Key Features The following features support you with this process: Key Feature Use Reporting a Malfunction Using Notifications As a maintenance planner or worker you can report a malfunction or a problem at a technical system by creating a notification in which you specify the technical object, de scribe the malfunction, and enter the activities to be performed. Hierarchical structure lists support you in specifying the technical object and provide you with information about assigned materials and components. You can enter breakdown information, de scribe the damages and causes, and enter tasks and activities. By choosing the appro priate codes for describing the damages and malfunctions as well as what caused the damage, you ensure that issues can be entered in a standardized way and therefore be evaluated automatically. Having completed your work, you can confirm the time spent on each activity. To add further information, you can upload and attach documents to the notification. You can print out the shop paper of the notification physically or virtually on the job card and by doing so, transfer the notification to the job list. Planning and Executing Mainte nance Work Using Maintenance Orders When a malfunction is detected, the maintenance planner can use a maintenance order to detail out the maintenance tasks that are to be performed on the technical object. As a planner, you can create a maintenance order for a specific notification or create the maintenance order directly with or without reference to an existing order. When creating or changing a maintenance order, you can either assign existing task lists and notifications or create new ones for the order. In the maintenance order, you provide all the information needed to plan and execute the maintenance work. That includes start and finish dates, location information, planned materials and production resources/tools. The system supports you in finding the rele vant technical object, choosing the required materials and checking their availability, scheduling the job, and determining the costs: You can specify the technical objects using a hierarchical list. You can choose the required materials using a catalog. When you plan materials for executing order operations, you can display whether the materials planned for the operation are available on time and in sufficient quantity. After you have planned an order with all its operations and components, you can use the scheduling function to determine the actual execution dates, the capacity requirement needed to execute the order, and the date on which a particular mate rial should be available. You can determine costs and run cost simulations. For inspection rounds, you can enter technical objects and assemblies at operation level and assign measuring points as production resources/tools to the technical objects. To add further information, you can upload and attach documents to the order. You can print out the shop paper of the maintenance order physically or virtually on the job card and by doing so, transfer the order to the job list. 88 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Key Feature Use Processing and Confirming Maintenance Jobs Job lists and confirmation lists support maintenance workers in processing and confirming maintenance jobs. Job lists provide a list of maintenance jobs to be carried out, as well as crucial infor mation for each job at a glance, such as the urgency, start and end dates, and as signed work center. You can configure job lists so that they reflect how work is or ganized in your particular organization and therefore only contain the jobs that are relevant to you. Confirmation lists contain all the planned maintenance jobs that can be confirmed. As a maintenance worker, you can check the planned job data and confirm or adjust it. That includes the time you spent on the job and the materials you consumed as well as the activities you performed and the measurement readings. Depending on how confirmation is done in your company, you can configure different confirmation lists. As a maintenance worker, if you fix a problem at a technical system, you can also confirm this unplanned job and enter all the required data after having finished your work. You then can enter the time spent and the required materials, write a long text and, if neces sary, create an activity report. The system automatically creates an order and - if an ac tivity report exists - a notification, sets the order and notification to technically com pleted, stores the time confirmation, and posts a goods issue for the order. You can also confirm unplanned jobs while working in the Asset Viewer. Accessing Context-Sensitive In In maintenance notifications and orders you can open quickviews and side panels to formation gather further information. Quickviews appear as separate popups when you hover over an object, and provide rele vant information about the assigned notification or order, technical objects, materials, activities, statuses, and long texts. You can open preconfigured side panels in a separate screen area and display contextsensitive charts and data, such as context-sensitive master data or information about vendors and customers. You can enhance the side panels to meet your requirements, thereby specifying which information you want to have displayed in the side panel. Processing Maintenance Docu ments in the Order and Notification Information Center The Order and Notification Information Center is a central point of access to several worklists that you can use for processing all your notifications and orders. You can ac cess worklists for notifications, orders, and order operations, or use the combined Order and Notification List. The worklists allow you to display and process all maintenance noti fications and orders that match the selection criteria in the query you have defined. You can configure the list layout, sort table columns, and create filters. In addition, you have the option of displaying table columns for monitoring critical dates and costs, whose col ors help you detect issues. Furthermore, the lists enable you to change the status of orders and notifications and provide a mass data change function. In the combined Order and Notification List, you can also display the assignments of notifications to orders. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 89 Key Feature Use Selecting Spare Parts and View With the SAP 3D Visual Enterprise Viewer, you can use functions to visualize technical ing Visual Instructions in Mainte objects, spare parts, and instructions. 2D and 3D model views as well as animated nance Orders scenes make critical maintenance processes such as finding the spare parts you need and carrying out maintenance tasks quicker and easier. Users can only display the 2D images and 3D scenes that have been published within their company. While working in a maintenance order you can select spare parts from a 2D or 3D model view and copy them to the spare parts list. You can also watch visual instructions on how to carry out your maintenance tasks. Visual instructions can be animated 3D scenes that visualize each and every maintenance step at operation level, for example. If you have set up the conversion accordingly, you can even convert the visual instructions assigned to a maintenance order to PDF format, use them on job cards, and print them out. Viewing Relationships between Maintenance Objects in the As set Viewer The Asset Viewer is a display tool that enables simple navigation through complex object relationships and flexible navigation within and between objects. You can also view and navigate through the hierarchical structure of technical objects. 2.8 R&D / Engineering 2.8.1 Enterprise Portfolio and Project Management 2.8.1.1 Project Financial Control Business Background This capability enables you to define work breakdown structures as a basis for hierarchical project accounting. You can plan costs and budgets and track actual costs that are tightly integrated with core business processes. This provides you with better insight into the project progress and your project financial performance and enables you to avoid cost overruns in time. 90 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Key Features The following table explains the key features available: Key Feature Maintenance of standard WBS Maintenance of standard milestones Maintenance of operative WBS Use You use this feature to maintain the standard structures for your project. A standard WBS is a neutral work breakdown structure that serves as a template for creating operative work breakdown structures. A WBS contains the individual elements (WBS elements) that structure the standard project as well as general organizational data. When you cre ate a standard WBS a standard project definition is automatically created. Standard milestones are used exclusively in the Project System as a source for creating milestones and other standard milestones. You can combine different standard milestones in a milestone group. You can create projects, or change and display existing projects and project parts. A project comprises of a project definition, which serves as binding framework for all organizational element created within a project, and WBS ele ments, which describe either a certain task or a partial task that can be subdi vided further. You can also use networks within projects to represent the flow of a project or of a task within a project. The structure tree displays the project object that you have selected in its hier archical context. You can manually change the dependencies and assignments of individual project objects in the structure tree. You have access to both the worklist and templates. Templates are available during processing to create new objects or structures in the current project by adding new project objects, copying existing project structures or copying from standard project structures. For quicker access, you can store frequently used project data (project definitions, and WBS elements) in the worklist. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 91 Key Feature Use Maintenance of Group WBS Based on the grouping strategy for projects, you can choose one of the follow ing options to organize grouping WBS elements: Create a grouping WBS element and include it in the operative WBS struc ture for a specific project. You use this if you want tighter cost and part control and reporting for a specific project. Create a grouping WBS element and include it in the group WBS structure within its own project. You use this if you share common parts across projects and want to optimize the various collective processes involving these common parts. You can maintain a grouping WBS element in the same way as an operative WBS element. However, a grouping WBS element must not have any compo nents or network activities attached to it. A grouping WBS element has an as sociated grouping identifier. Data maintenance of a grouping WBS element includes listing of all the opera tive WBS elements that can participate in the collective processes controlled by it. Besides the project WBS structure, grouping WBS elements can also have a hierarchical structure similar to the Bill of Material (BOM) structure. In such a structure, all common parts across projects are organized at the lowest grouping WBS element levels and the project-specific parts are organized at the higher level. You can use grouping WBS elements to move cost to breakpoints such as other WBS elements and network activities. This helps to segregate costs of key parts and assemblies from the MRP-driving operative WBS elements and enables the system to automatically provide this data. The costs associated with excess stock, scrap, and loss tied to the MRP-driving operative WBS ele ments can be directed to other project WBS elements; this helps to report such costs separately. Mass changes to change projects and net works If you work with complex and long-running projects, it is often necessary to make large scale changes to master data or assignments. You can use the mass changes function to change projects and networks. You can also view a log containing all the objects that were changed as a result of this process. Project Versions A project version shows the state of the project at a certain point in time or at a certain status. You can create as many project versions as required. Some fea tures include: Document (as a history) the state of the project in the past Can be used for comparison purposes 92 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Key Feature Progress Analysis Line Item Reports Resource related billing document Resource related intercompany billing Project period-end closing Use Progress analysis helps you to obtain information on the state of your project and how it is developing. This enables you to take corrective action if the project is varying from its plan. You can determine planned and actual project progress values, and to compare the two sets of data. You can determine the relevant values at any time or as part of the period-end closing work that you plan. Business transactions can be documented as line items and stored in line item files. Actual Line Items for Cost and Revenues You can use the actual line item report for projects to obtain flexible analy ses of individual actual cost and revenue postings per various criteria. You can change the format of the line item display. A number of functions support you in analyzing line items using the line item report display. These include sorting, filters, totaling, and search. Plan Line Items for Cost and Revenue In project cost planning, plan line items are only created for certain busi ness transactions for which some prerequisites are fulfilled. You can change the format of the plan line item display. You use this to bill customers for work done, materials used, and other costs incurred in customer projects. The basis for creating a billing document is the billing request. During resource-related billing, the system creates dynamic items from the expenditure information (for example, costs for material, utilit ies, personnel, trips) which serve as basis to create a billing request. You can edit the items in resource-related billing using the following features: You can determine whether the system bills the costs summarized for dy namic items in full, later, or does not include them in the billing request at all. You can view the hierarchy sorted and combined per SD items. The prices for the items are calculated using SD pricing. You can edit individual or header items from resource-related billing, with the help of SD conditions. This enables the distribution of project revenue accrued in one company code between other company codes. The distribution of the revenue is dependent on the work performed by employees belonging to those company codes. Through internal billing, the revenue is distributed between the company codes based on cost unit rates or sales prices. Period-end closing is the framework for carrying out period-related commer cial transactions. You use it to ensure that all the data belonging to a period is determined and that data is available for enterprise controlling purposes. These transactions are performed at the end of the period after the primary cost postings for the period have been made. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 93 Key Feature Structure Overview Use You can use the structure overview to flexibly evaluate the structure of your project according to different criteria. The system displays the basic structure of the project in the overview. 2.8.1.2 Project Logistics Control Business Background This capability enables you define project structures consisting of work breakdown structures and network structure, plan and schedule project activities, control all procurement processes integrated with the core business process, and provide an insight into all logistic related execution aspects of a project. For features related to work breakdown structures, refer to Project Financial Control. Key Features The following table explains the key features available: Key Feature Maintaining standard networks Maintaining operative networks Use You use this feature to maintain the standard network structures for your project. The project-neutral network structure can be used as a template when creating other standard networks or operative networks. You can link standard networks with standard work breakdown structures in order to create project templates. You can copy from a standard network or an operative network to create a new operative network. If you have assigned a standard network to a standard WBS, you can create an operative WBS at the same time that you create an operative network. Relationships determine the chronological sequence of activities in a net work or a standard network. Cross-network relationships enable you to spread the tasks to be performed over several individual and smaller net works thereby creating an overall network. You can create milestones in networks, standard networks, work break down structures (WBS) and standard work breakdown structures (stand ard WBS). 94 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Key Feature Network Scheduling Materials in Project Requirement Grouping Delivery from Project Use Scheduling determines the earliest and latest start and finish dates for carry ing out activities in the network and calculates the required capacity require ments. A network is always scheduled forwards and backwards. Forward scheduling calculates the earliest start and finish dates of activi ties (earliest dates) and the scheduled finish date of the network. Backward scheduling calculates the latest start and finish dates of activi ties (latest dates) and the scheduled start date of the network. In a complex project, the dependencies in a project can make the activities in one network dependent on the completion of activities in another network. You can use the function for the overall network scheduling where the networks are linked through certain relationships. This helps you to plan and monitor project material requirements and costs, and to regulate and schedule the flow of materials. If you only need a few material components in a project, you can assign these components to the network activities manually. The bill of material (BOM) transfer component makes it easier for you to assign material components to network activities and keep this informa tion up-to-date. Requirements grouping is a planning procedure for projects within material re quirements planning (MRP) . Material for a project can be managed in general plant stock or in individual stock. With individual stock you can follow materials that are required for a project with regards to stock levels and MRP separately. If you use valuated or non-valuated project stock, the material components are kept, from an MRP view, in individual stock segments for individual WBS elements. In material re quirements grouping, the system groups several stock owners (WBS ele ments) together in one grouping WBS element. MRP creates procurement ele ments (planned orders or purchase requisitions) for the requirements from the grouped WBS elements. You can group requirements from WBS elements be longing to one project or from WBS elements belonging to several projects for the purpose of MRP. This includes: Automatic grouping of all WBS elements in a project Manually assigning WBS elements to several grouping WBS elements Assigning materials to different grouping WBS elements according to the MRP group You can use this to create deliveries in the Project System and consequently deliver material components that are assigned to a project. This contains infor mation that is required for a delivery, for example the sold-to-party or delivery date. Since you can create deliveries in a project independently of a sales order, this data is saved in delivery information in the Project System. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 95 Key Feature Confirmations Use Confirmations document the state of processing for activities and activity elements in a network, and can be used to forecast progress in the future. Precise confirmations are very important for realistic and accurate project planning. 2.8.2 Product Development Foundation 2.8.2.1 Bill of Materials Business Background A bill of material (BOM) is a formally structured list of the components that make up a product. The list contains the object number of each component, together with the quantity and unit of measure. The components are known as BOM items. BOMs are used in various situations where a finished product is assembled from several component parts or materials. They contain important basic data for numerous areas of a company. Key Features The following table explains the key features available: Key Feature Manage bills of material Assign BOMs to plants Monitor multilevel BOM assignment Use You can create a complete, formally structured list of the components that make up a product. You can extend the area of validity of a BOM that you defined when you first created it. This means, for example, that you can assign the same BOM to a material in different plants - avoiding data redundancy and multiple data entry. You can use a reporting function that determines all components in a product and displays them per low-level code. 96 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Key Feature Find BOM for component Use You can use a reporting function that determines where an object (for example, material) is used and the quantity that is required. This is necessary, for exam ple, if objects are used in more than one context. You can use this information to: Select products that are affected by a change to an individual part Calculate the effect on the cost of a product if the price of a raw material rises 2.8.2.2 Product Structure Management Business Background A product structure is an enhanced engineering bill of material (BOM). It consists of a set of hierarchically ordered objects with the purpose of documenting one product or a set of similar products. This is effective for high-volume, repetitive manufacturing, for example, in the automotive industry, as well as for complex machinery and equipment. If you work with products that have many variants and a large number of components, you can use product structure management to optimize process support from early engineering, to hand-over to manufacturing. Product visualization tools allow you to manage geometric data and view digital mockups in your product structures via viewable files. Product structures provide the following benefits: Possible to create and maintain a product structure without assigning materials A redundancy-free description of products or product families with many variants Variant configuration and variant management capabilities The option of working with both configurable and configured materials Continuous modeling from an early stage to the manufacturing handover Modeling of functional structures (with no requirement for material number references) Template structures for the creation of product structures and the standardization of product descriptions A consistent data basis for different views of the product and for all enterprise areas SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 97 Key Features The following table explains the key features available: Key Feature Modeling product structures Simulating the product configuration Managing geometric data Viewing digital mockups Use You can use product structures to model a multilevel product hierarchy. When modeling your product structure, you have the flexibility to develop the struc ture and the variants without having to create master data. You can model a configurable product with multiple combinations and possible scenarios. You can check the product configuration by simulating the explosion of a prod uct structure for a specific set of configuration parameters. You can save, edit, and activate these simulations. You can assign geometric data to support the transition of transformation ma trices into product structures. Together with viewable files, the geometric data enables dynamic viewing based on simulations offered by the product struc ture. Digital mockups, which are triggered at various stages of new product design, enable design engineers, product engineers, and manufacturing engineers to study the content developed before it is handed over to the next department. You can view a digital mockup in the product structure. 2.8.2.3 Embedded Systems Development 2.8.2.3.1 Embedded Software Management Business Background Embedded software is computer software that is embedded in one or multiple products. It provides functions together with various hardware and systems. For example, embedded software can be used to control or optimize the functions of the mechanical part or the electrical part of a product. If you work with products that have one or multiple embedded software, you can use embedded software management to view and manage your software. 98 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Key Features The following table explains the key features available: Key Feature Managing Software Use You can manage embedded software and its versions in a product structure. 2.8.2.4 Engineering Change Management Business Background Engineering change management can be used to change various aspects of production basic data (for example, bills of material, materials, and routings) with a history (with date effectivity). The engineering change process is an important process in product development. Key Features The following table explains the key features available: Key Feature Change master record handling Revision level assignment Use You can define change master records. Change master records contain de scriptive data, such as the reason for the change, and data with control func tions, such as valid-from date and indicators for object types. In addition to this data, which you can maintain directly, there is data that the system updates automatically, such as administrative data. You can identify material changes that are made with reference to a change number by using revision levels. A revision level can be assigned on a validfrom date when an object is changed with reference to a change number. 2.8.2.5 Classification Business Background The classification system allows you to use characteristics to describe various types of objects, and to group similar objects in classes to classify objects, in other words, so that you can find them more easily later. You then use the classes to help you to find objects, using the characteristics defined in them as search criteria. This ensures that you can find objects with similar or identical characteristics as quickly as possible. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 99 Classes allow you to group objects together according to criteria that you define: You create classes for certain object types such as, for example, material or material BOM. You use the class type to determine which object types can be classified in a class. You can assign characteristics to your class. These describe the objects that you classify in your class. When you assign a characteristic to a class, you can adapt (overwrite) the characteristic. Key Features The following table explains the key features available: Key Feature Classification handling Finding objects Use You can define classes and their characteristics including characteristic values. Once you have set up a classification system in your company, you can search for the objects you have classified. You can also identify where a specific char acteristic and characteristic value is used. 2.8.2.6 Document Management Business Background Document management allows you to store, manage, and use documents when creating and maintaining digital product information company-wide and throughout the life cycle of a product. The following examples show some of the uses of document management in different areas of a company: In the design office, document management can be used to manage drawings. All design drawings can be linked to material masters. Companies that process complex documents can use document structures to organize these documents. All documents and texts that are logically connected can be grouped together in one document structure. A routing contains the sequence of operations for manufacturing a product. Documents can be allocated to the operations in a routing. These documents may be used, for example, to describe the specifications of a product, or to store inspection requirements. Documents can be linked to projects. You can use the document hierarchy to represent individual product folders that are given to the product administrators responsible. 100 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Key Features The following table explains the key features available: Key Feature Use Document handling To store and manage a document, you create a document info record that con tains all of the data required to process and manage a document including the original document itself. Find Document: Selection Criteria To find documents that are maintained in document management using any of the search criteria. You can use known data for the document search function that is either directly related to the document info record or comes from the environment of the document. This data is known as selection criteria. To find a document, you can use document data, classification, object links, and texts as the search criteria. Integration with SAP Document Center This solution provides a quick and safe data exchange platform for managing documents from mobile and other devices considering the Document Manage ment System (DMS) authorization. You can access public and private folders from DMS and organize files or document info records (DIR) within these fold ers. You can also query for documents based on DIR attributes by using the Search function. Documents and folders can also be synchronized with the cli ent and modified offline. The changes can be synchronized with DMS when the user is online. The DIR files can also be shared with colleagues and business partners using the Share function. Currently this integration only exists for On-Premise delivery. Integration with SAP S/4HANA Cloud for intelligent product design S/4HANA Cloud for intelligent product design is a cloud solution that offers you a collaboration platform that can be used in all phases of your product de velopment. You can store engineering documents as well as share and review them with internal and external participants using a process driven approach. Using the integration of intelligent product design with Document Manage ment (DMS), you can upload documents from DMS to a collaboration to col laborate with internal and stakeholders. The collaboration could result in exist ing documents being modified or new documents being created. These docu ment changes in a collaboration can be downloaded to DMS for further down stream processes. 2.8.2.6.1 Maintain Documents Use With this app, you can manage document info record and any original application files that belong to it by entering the document number and document type. You can create, change, search, and display document info SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 101 records with the role SAP_BR_DESIGN_ENGINEER. You can upload, download, check-in, or check-out original application files. You can also attach URLs to the document info records. 2.8.2.7 Attachment Service Business Background Attachment Service is a reusable user interface component which can be consumed by any FIORI application to attach documents (referred as attachments). The attachments are stored in the following storage repositories: SAP Cloud Platform-Document Service (in S/4 HANA Cloud solution) SAP Content Server Configuration (in S/4 HANA On-Premise solution) This re-usable component is based on the UploadCollection control from the SAP UI5 foundation. Attachments are linked to business objects based on Document Management or via Generic Object Services (GOS). Key Features The following table explains the key features available: Key Feature Use Manage attachments You can upload, download, delete, and rename an attachment. You can also cancel the changes made to the attachments. Attribute and Action Handling This function allows the consuming applications to control the visibility of at tributes and actions of the attachments on the User interface. By default all at tributes and actions are visible on the user interface for the user. You can re strict the user from viewing attributes and actions by setting values as false in the JSON structure declared in the attachment service controller.js file. Checking for Attachment Content State This function allows the consuming applications to check the state of the at tachment content. If you have made any changes to the content of the attach ment and not saved, then the attachments content is dirty. Even if you have just refreshed the browser without saving or cancelling the changes, these changes are recorded and the application state is dirty. If the application state is dirty, you have to explicitly save the attachment. Counting Attachments for a Consuming Application This function allows the consuming applications to get a count of attachments associated to an object without having to see the attachment view. You can check the count of confirmed, unconfirmed, and total attachments. 102 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management 2.8.2.8 Variant Configuration Business Background Variant configuration is for manufacturing complex products. Manufacturers often have to offer new variants of their products, and new variants can be created by modifying existing product designs as they process the order. The important thing is to react quickly to customers' requirements. The customer determines the features of the product. A customer buying a car, for example, can choose the features of the car and combine these features as required. The product configurator improves information exchange between sales, engineering, and production. Variant configuration helps the customer or salesperson to put together specifications for the product and ensure that the product can be produced from these specifications. Key features The following features are available: Key feature Manage configuration model Manage material variants Use You can use a configurable material to cover all variants of a product in your company. A class is used to hold the characteristics that describe a configurable material. By linking the class to the con figurable material, you allow the material to be configured using the characteristics of the class. You can create a super BOM and a super routing for a configurable material, containing all the components and operations for producing all variants of the product. Often not all combinations of features are possible for either technical or marketing reasons. You can use de pendencies and constraints to control which combina tions are allowed In configuration profiles for configurable objects you de fine central settings for configuring the object. You can use variant conditions to influence the price of a configurable material depending on the characteristic values assigned. You can create a material variant, which is a material that can be kept in stock and that arises from an individual con figuration of a configurable product. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 103 Key feature Interactive configuration Configuration simulation Low Level Configuration Related features Classification [page 99] Use During configuration, e.g. in Sales Order, the user assigns values to characteristics. Dependencies and constraints coming from the configuration model are considered. You can use the configuration simulation to check your con figuration model. In the configuration simulation, you can test whether you have created the objects correctly and whether your dependencies work. Low-level configuration refers to "background" explosions of configurable objects, like bills of material (BOMs) or rout ings. E.g. it's used in material requirements planning (MRP). Here characteristic values from the sales order are automat ically used to determine the BOM components and opera tions or activities. 2.9 Sales 2.9.1 Order and Contract Management 2.9.1.1 Sales Master Data Management Business Background Master data represents the business data your company requires about individuals, organizations, materials, services, and prices. 104 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Key Features The following table explains the key features available: Key Feature Listing and exclusion Customer material info record Use You use this feature to control the sale of specific materials to a customer. Your customer can only buy materials included in the material listing assigned to them. The system does not allow you to enter materials that are not included in the material listing in a sales document for a customer. You use this feature when your customer manages a material with a number that differs from the one that your company uses. Related Information Central Master Data [page 157] 2.9.1.2 Sales Contract Management Business Background A sales contract is an outline sales agreement that contains special conditions negotiated between the vendor and a customer, for example, price, target value or target quantity. A sales contract is valid for a specified period. A customer submits a sales order to release products from the amount agreed in the contract. Types of sales contract include value contracts and quantity contracts. Key Features The following table explains the key features available: Key Feature Contract processing Use You use this feature to create, change, display, and list contracts. You can list incomplete contracts, completed contracts, expiring contracts, and expired contracts. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 105 Key Feature Contract release order processing Contract fulfillment rate tracking Customer scheduling agreement Global Trade Management Data aging Use You use this feature to enable your customer to request part of the total quan tity or value of goods or services agreed in a contract. The release order con tains information on quantities and delivery dates. You can analyze how the sales contracts that you are responsible for are being fulfilled. You can focus on contracts with the highest target value. You can drill down to sales contract fulfillment rates by selected criteria. You use this feature to schedule an outline agreement with the customer con taining delivery quantities and dates. These are entered as schedule lines in a delivery schedule. You fulfill a scheduling agreement by creating the deliveries in the schedule as they become due. For information about the key features of Global Trade Management, please see Global Trade Management [page 106]. The system moves your old sales data to the historical area of the database during data aging. When you analyze contract fulfillment rates, the system uses current data only and does not retrieve historical data. Note Please note, that for customers using SAP S/4HANA Cloud, private edi tion, this feature might be unavailable, restricted and/or might require a separate license. For further information on SAP S/4HANA Cloud, private edition, please contact your SAP Account Executive. 2.9.1.2.1 Global Trade Management Business Background In trade, it is necessary to control and organize the flow of materials and services from suppliers to customers. Sales and purchasing processes are carried out simultaneously by the same trading department. A trade transaction begins when a commercial customer approaches a trading company with a specific request, that is, a customer sends a sales order. If the trading company accepts the mandate, it organizes fulfillment individually for that specific request (sales order). Fulfillment is characterized by a high degree of complexity and includes, but is not limited to: Searching for the most suitable suppliers Organizing logistics from supplier to customer (shipping, transportation, customs clearance for the goods) Risk protection Financial management of the core business Handling of any associated expenses The supplier then delivers the goods directly to the customer. The trading company receives an invoice from the supplier and bills the customer. Finally, the trader receives a payment from the customer and makes a 106 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management payment to the supplier. Also typical is that a trading company's profitability analysis is based on individual commercial deals. Key Features The following table explains the key features available: Key Feature Use Single point of entry for contracts be tween customers and suppliers Creation of trading contracts that contain sales-side data for the require ments of individual customers and, at the same time, the purchasing-side data used to order from suppliers to fulfill the requirements of the cus tomer Settlement of trade expenses by using settlement documents Trade use cases: Import/Export Domestic Offshore Creation of follow-on documents Generation of sales orders and purchase orders automatically or manually based on the trading contract status Monitoring of document flow and process Complete overview of the contract lifecycle ing status of all subsequent transactions Easy navigation to follow-on documents associated Portfolio management Definition of portfolios as predefined selection groups Automatic or manual classification of contract items by portfolio to opti mize the use of sales-side and purchasing-side quantities Monitoring of contract positions Reporting on similar materials Control of important materials, countries/regions, customers or suppliers in view of risk consideration Association management Monitoring and processing of document items to reduce inventory risk and lost sales for an assigned portfolio Open quantity information Long-short analysis on either the purchasing side or the sales side Overview of all current items that have not yet been completely processed SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 107 Key Feature Trade expense management Archiving Use Handling of various kinds of costs, including freight, loading charges, stor age costs, insurance, customs duty, and commissions Planning of trading expenses on contract creation Settlement of planned and unplanned expenses on contract level of trade transactions that incur costs Posting of sales and purchasing expenses to specific G/L accounts Posting of expenses to accounts payable and accounts receivable Archiving of trading contracts and other relevant documents, such as settle ment management documents to remove volumes of data from the database that are no longer required in the system, but still need to be kept for analysis purposes 2.9.1.3 Sales Order Management and Processing Business Background Sales order management and processing allows you to execute business transactions based on sales documents, such as inquiry, quotation, and sales order, defined in the system. Within sales order management and processing, you enter a sales document based on customer requirements. When you create or changes sales documents, the system confirms dates and quantities. You can display and change the sales documents to respond to customer questions. There are different ways you can process sales documents in the system, depending on your specific needs. In the simplest case, you can enter a sales document with several items in a single screen. The system automatically proposes data from the relevant master records: From the customer master record of the sold-to party, the system proposes sales, shipping, pricing, and billing data. In addition, the system copies customer-specific master data about texts, partners, and contact people at the customer site. For each material in the sales document, the system automatically proposes data from the relevant material master records, such as data for pricing, delivery scheduling, availability check, tax determination, and weight and volume determination. The data proposed by the system can be used as a basis for your sales document. If processing requires it, you can modify this data manually or add new data. For example, your pricing policy may allow you to manually change the value of certain discounts within a permitted range. In addition, you can branch in the sales document to a number of different screens where you can display and modify data, such as terms of payment and delivery data. It is also easy to create a new sales document with reference to an existing document. For example, if a customer accepts a quotation you sent, the system can copy all the relevant master data from the quotation when you create the sales order. When you process a sales document, the system can automatically carry out basic functions, such as the following: Pricing 108 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Availability check (if this function is defined in the material master record) Transferring requirements to materials planning (MRP) Delivery scheduling Shipping point and route determination (for the sales order) Credit limit check Key Features The following table explains the key features available: Key Feature Sales Order Processing Inquiry Processing Quotation Processing Credit Management Product Availability Check Use You use this feature to create, change, and display sales orders. In addition, you can list sales orders, duplicate sales orders, and incomplete sales orders. You can release sales orders for billing. You can use this feature to enable your customer to request a quotation or sales information without obligation. An inquiry can relate to materials or serv ices, conditions, and if necessary, delivery dates. The sales area that accepts the inquiry becomes responsible for providing a quote. In addition, you can list inquiries and incomplete inquiries. You use this feature to create, change, or display a quotation for your custom ers. The process starts when a request for quotation (RFQ) is received from your customer. In response to the customer's RFQ, a quotation is created. The customer can then either accept the quotation or reject it. This step enables you to assure your business partners that you will deliver a product quantity at a specified time and price. If accepted, the quotation is transferred into a sales order. In addition, you can list all quotations, expiring quotations, expired quo tations, completed quotations, and incomplete quotations You use this feature to check the credit limit when you create or change sales documents. If you change quantities or values in a document, the check is re peated. The system totals the receivables, the open items, and the credit value of the sales order for every item of a sales document. The system displays in formation about what caused blocks. When your credit department manually reviews the customer's current credit situation and when the sales order is ap proved, the system removes the block from the sales order. You use this feature to determine on which date and in which quantity a re quirement can be confirmed, based on a specified checking rule and the cur rent supply situation for a specific material. The availability check takes con current requirements of differing types and their respective confirmation situa tion into consideration. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 109 Key Feature Use Product Allocation You use this feature to allocate material quantities for a specific time period and to a combination of characteristic values for sales orders and stock trans port orders, against which availability checks can be run. Backorder Processing You can use this feature to re-prioritize sales orders and stock transport orders and perform automated mass availability checks to ensure that a limited sup ply of material is distributed in accordance with a specific strategy. Optionally, your system assigns specific supply elements to the individual requirements. You can monitor the check results and, if necessary, re-run the check to im prove the confirmations for the requirements. Sales Order Processing with Customer Down Payment You use this feature when customers are required to pay some amount in ad vance before delivery of goods (for example, in make-to-order production). You can create requests for down payment, record the receipt of the down pay ment, and create a final invoice after the deduction of the down payment re ceived. You can also create a receipt of the final amount due on the invoice. Sales Order Processing with Trade Finance You use this feature to guarantee the payment of your sales orders with trade Transactions finance transactions (for example, a letter of credit transaction). Sales Order Processing with Consignment You use this feature if you want to deliver materials from consignment stock Stock (owned by an external supplier). Sales Document Processing for Make-to- You use this feature for production in which products are made upon receipt of Order Scenario an order from a customer. Sales Order Processing for Free-of-Charge Delivery You use this feature to provide goods to a customer at no charge. A sales order type is created that is not billing relevant. The order is confirmed based on the availability of goods. A delivery is then created and the goods are subsequently picked, confirmed, and delivered to your customer. Sales Order Processing for Third-Party Di rect Ship You use this feature when another company, rather than your company, deliv ers the items requested by your customer. You can either create your invoice based on the invoice from your third-party supplier or you can book the deliv ered amount directly as a statistical goods receipt. Sales Order Processing with Returnable Packaging You use this feature to capture information within the sales order that reusable packaging should be returned back into inventory (for example, standard pal lets belonging to the manufacturer). Listing sales documents by object status You use this feature to search for sales documents and sales document items and display them in a list. 110 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management 2.9.1.4 Billing and Invoicing Business Background Billing allows you to create and manage billing documents and to post them to accounting. Key Features The following table explains the key features available: Key Feature Debit memo processing Credit memo processing Billing document processing Invoice list processing Use You use this feature to apply a debit to a customer account, either by creating a debit memo request, or directly by creating a debit memo with reference to a billing document. A debit memo request (that is, an invoice increase request) is then created with the amount to be debited. The debit memo is sent to the customer and posted to accounting. You can use this feature to apply a credit to a customer account, either by cre ating a credit memo request, or directly by creating a credit memo with refer ence to a billing document. The credit memo is sent to the customer and posted to accounting. You can create billing documents (for example, invoices for customers) from items in the billing due list (for example, debit memo requests and outbound deliveries). When you post billing documents, the system forwards billing documents to accounts receivable and triggers output (for example, an invoice by e-mail). You can change or cancel billing documents as needed. You can also create bill ing documents for retroactive billing. You can setup billing batch execution by scheduling billing creation and scheduling billing output. You can also schedule billing documents for release to accounting. You can manage documents blocked for billing. You use this feature to create, at specified time intervals or on specific dates, a list of billing documents (invoices, credit and debit memos) to send to a partic ular payer (usually the head office of a corporate group). The billing documents in the invoice list can be single or collective documents (collective invoices combine items from more than one delivery). There are two types of invoice lists, one for invoices and debit memos and one for credit memos. If you wish, you can process invoices, debit memos, and credit memos at the same time. The system automatically creates a separate invoice list for credit memos. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 111 Key Feature Invoice correction processing Omnichannel convergent billing Use You use this feature to create an invoice correction request if the wrong quanti ties or prices have been calculated for the customer. The invoice correction re quest can be automatically blocked by the system until it has been checked. The system calculates the difference between the amount that was originally calculated and the corrected amount for each item. Once it has been ap proved, you can remove the block. The system creates a credit or debit memo with reference to the invoice correction request. The credit or debit memo is sent to the customer and posted to accounting. You can use convergent billing to converge billing data from different catego ries of billing due list items (such as sales orders, outbound deliveries, and debit memo requests) to create combined, single invoices for customers. You can use omnichannel convergent billing to converge billing data from your SAP S/4HANA system with billing data from one or more external sources. The external billing data is persisted in your system in the form of external billing document requests (EBDRs). You can create EBDRs automatically by integrat ing external systems that send billing data. EBDRs are added to the billing due list, from where they can be converged with your other billing due list items to create combined, single invoices for custom ers. Stand-alone billing of EBDRs is also possible. 2.9.1.5 Claims, Returns, and Refund Management Business Background Claims, returns, and refund management enables you to streamline complaints and returns management. You can improve tracking, help your service organizations process requests faster, and reduce your operational costs. You can improve the capture and handling of all complaints and returns and trigger logistical follow-up actions such as inspection of returned material, resolution of issues, and claims and refunds management. Key Features The following table explains the key features available: Key Feature Product and warranty registration Use You can create warranties and assign technical objects to those warranties. 112 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Key Feature Warranty claim processing Returns management processing Use Enables manufacturers, importers, or vendors of complex products and their suppliers to better deal with a large number of warranty claims. Only those claims that produce negative results in the automatic checks are included in manual processing. You use this feature for processing customer returns. The process starts a re turns order with reference to the original sales order or invoice for the goods. A return material authorization (RMA) document is forwarded to the customer to be attached to the incoming goods. The goods are shipped back, a returns de livery is created with reference to the returns order, and the material is re ceived into returns stock. The returns stock location is set as non-MRP rele vant. The goods are inspected and either selected for return to stock, for scrapping, or for other logistical processing (for example, for forwarding to the supplier). A credit memo is created from the billing run and posted to the cus tomer's account or a replacement delivery is triggered to compensate the cus tomer. 2.9.1.6 Sales Monitoring and Analytics Business Background You can efficiently check the status of your sales orders. Key Features The following features are available: Key Feature Analyzing quotation conversion rates Use You can analyze how the quotations that you are responsible for are being ref erenced. You can focus on quotations with the highest net values and quota tions with the lowest conversion rates. You can drill down to quotation conver sion rates by selected criteria. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 113 Key Feature Use Analyzing incoming sales orders Monitoring sales order fulfillment Tracking sales orders You can view the monthly rolling trend for sales as a graphic or a table. You can analyze the net amounts of aggregated sales order items with the display currency. You can drill down to view detailed information for selected sales organiza tions, materials, material groups, sold-to parties, sales document types and so on. You can filter the items according to various criteria, such as year, month, sales organization, material group, and sold-to party. You can monitor and resolve issues that stop sales orders from being fulfilled, for example, a delivery or billing block. You can display your weekly workload with all overdue issues and all issues due in the next 7 days. You can display and resolve issues with incomplete data, credit blocks, de livery blocks, and billing blocks. You can display the number of issues with incomplete data and credit blocks, and the top 3 reasons for delivery blocks and billing blocks. In a renewed version, you can use compact filters, visual filters, and charts to visualize your results, and a table from which you can navigate to re solve the issues. You can check whether the delivery of a sales order is on track regarding its fulfillment. For example, you can see whether it has been shipped, in voiced, or even whether an accounting document has been cleared. You can recognize immediately whether the fulfillment of a sales order contains issues or not, or whether it is completed or still in process. Checking confirmed sales orders, backor ders, and demand fulfillment You can check whether your sales orders have been confirmed for delivery on the date requested by your customer. You can identify backlogs in relation to your customer's requested quanity and delivery date. You can collaborate with your demand planner, for example, to solve is sues regarding the availability of specific products. Monitoring delivery performance You can monitor the current delivery performance of sales orders In the tile, you see the percentage of sales order items delivered as re quested for the last 3 weeks The app compares the customer's requested delivery date of sales order items with the actual delivery date of the corresponding outbound deliver ies and displays this, for example, as the ratio of sales order items deliv ered as requested to the total number of sales order items. 114 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Key Feature Use Analyzing sales volume You can view the monthly sales volume as a graphic or a table. You can analyze aggregated billing document item net amounts with the display currency. You can drill down to view detailed information for selected sales organiza tions, sold-to parties, bill-to parties, and so on. You can filter the items according to various criteria, such as year/month, sales organization, sold-to party, and bill-to party. Analyzing sales volume in details You can customize a step-by-step analysis path to drill down into your sales volume on different dimensions. Checking sales volume and open sales You can check your sales volume and open sales, that is, open orders, and open deliveries, in order to identify and resolve issues to increase your sales volume for the current month. You can navigate to analyze and resolve issues directly. Checking sales volume and profit margin or credit memos You can check the relationship between sales volume, profit margin, and credit memos, to help you to increase your sales volume. Order-to-cash performance You can check key figures to get an overview of the order-to-cash perform ance in your company. For example, you can track delivery blocks or billing blocks, detect changes made to critical fields of sales orders, and monitor lead times like order to delivery or goods issue to billing. Data aging The system moves your old sales data to the historical area of the data base during data aging. When you analyze incoming sales orders, sales volume, and quotation conversion rates, the system uses current data only and does not retrieve historical data. 2.10 Service 2.10.1 Service Agreement Management SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 115 2.10.1.1 Warranty Management Business Background Warranties define the scope of the services and parts usage that a company performs in the event of damage or problems. This process enables you to process service deliveries with automatic checks for warranty agreements. Key Features The following table explains the key features available: Key Feature Define Service Scope Carry Out Automatic Checks Product and Warranty Registration Warranty Claim Processing Returns Management Processing Use You can define the scope of services and usages that your company provides. You can automatically check the warranty when processing a customer message, a service or maintenance order, or a bill ing request. You use a warranty check to determine whether the warranty still exists, and if certain prerequisites have been met. You can create warranties and assign technical objects to those warranties. You can deal with a large number of warranty claims. You can process customer returns. The process starts with a returns order with reference to the original sales order or in voice for the goods. A return material authorization (RMA) document is for warded to the customer to be attached to the incoming goods. The goods are shipped back. A returns delivery is cre ated with reference to the returns order, and the material is received into returns stock. The returns stock location is set as non-MRP relevant. The goods are inspected and either se lected for return to stock, for scrapping, or for other logisti cal processing. A credit memo is created from the billing run and posted to the customer's account. Alternatively, a replacement deliv ery is triggered to compensate the customer. 116 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management 2.11 Sourcing and Procurement 2.11.1 Spend Analysis 2.11.1.1 Real-Time Reporting and Monitoring Business Background The procurement overview provides you with a set of actionable cards that you can easily rearrange as required. You no longer need to start different transactions and reports separately: both operational and analytical cards are visible on one single page. You immediately see your most relevant tasks and can navigate to KPI drilldowns, worklists, or specific object pages to get more detailed information and take immediate action. In addition, the monitoring of purchasing document items enables you to immediately assess and resolve critical situations for your company. Key Features The following table explains the key features available: Key Feature Operational cards Analytical cards Filtering Use Examples of operational cards are the monitoring of contracts, so that you see which contracts are about to expire and require your attention, as well as pur chase requisitions, showing you where a source of supply is missing and needs to be assigned. Examples of analytical cards are the purchasing spend by supplier and material group, and the monitoring of the supplier performance by analyzing opera tional data and questionnaires. You can filter the content of cards by various criteria, such as by suppliers, pur chasing categories, material groups, and purchasing groups. This enables you to make informed decisions and take immediate action. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 117 Key Feature Monitoring Use With the monitoring apps, you can identify the following, for example: overdue purchase order items missing supplier confirmations request for quotation items for which no bids were submitted in time for the deadline expiring purchase contract items Apart from the regular filter and table section, analytical elements such as vis ual filters and analytical charts are also provided. These elements support users in immediately identifying the most critical business issues. From the monitoring apps, you can navigate to related apps to trigger follow-on actions, or perform the necessary action directly in the monitoring app (you can, for example, extend the validity of a contract or its target value). 2.11.1.2 Spend Visibility Business Background The data that simplifies your daily work can be visualized in various chart types and by criteria such as supplier, purchasing group, purchasing category, or material group. The key performance indicators allow you to directly navigate into other apps, where you can immediately solve business issues. Key Features The following table explains the key features available: Key Feature Purchase requisitions Use Procurement organizations are measured according to their efficiency. Specifically in the area of managing purchase requisitions, you can notably increase the efficiency and automation of procurement processes. Key Performance Indicators (KPIs) help measure this efficiency and provide real-time insight into areas of improvement, such as the average approval time of a purchase requisition, or changes made to a purchase requisition item. 118 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Key Feature Purchasing and invoice spend Contract management Supplier evaluation Use To identify cost-saving opportunities, it is essential that you see the purchasing and invoice spend under management. The available KPIs provide insight into purchase order value over time, invoices without purchase order reference, in voice price changes over time, future purchasing spend based on purchase requisitions that are currently in approval, invoices without purchase order ref erence, and invoice price changes over time. You can, for example, retrieve the order value for all purchase orders over time, and determine all current values of all purchase orders in the system. In addition to the KPIs, a multi-dimensional report for analyzing the purchasing spend is available. Users can define dimensions, such as the plant or company code, and measures, such as the spend or the expected spend based on pur chase order schedule lines, using drag and drop. Purchasers can manage contracts efficiently and make sure that the right con tracts are in place at the right time when needed. They are able to do so by identifying maverick spend and contracts that are not used, contracts that will expire soon, and contracts that are almost consumed by comparing target val ues with released values. You can determine the overall score of a supplier in an organization based on the weighted average of the single scores for quantity variance, price variance, time variance, and quality. Supplier evaluation scorecards that result from questionnaires enrich these operational supplier evaluation scores. A com bined real-time view across operational and questionnaire-based scores pro vides a holistic view of your supplier's performance. You can also specify indi vidual weighting and scoring factors per criterion and per purchasing category. 2.11.2 Supplier and Category Management 2.11.2.1 Classification and Segmentation Business Background Supplier classification and segmentation is an ongoing process in which you assess and classify your suppliers at regular intervals and allocate your suppliers to segments of different importance. You can then focus especially on those suppliers that are strategically important and critical to your business, thus enabling you to develop and manage your business relationships. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 119 Key Features The following table explains the key features available: Key Feature Purchasing Category Procurement-Related Activities Supplier Data Classification Details Support of Integration of D&B Data Use Purchasing categories allow you to manage your suppliers according to spe cific categories of goods and services, for example, hardware and software, or installation and maintenance. They enable you to monitor your pool of suppli ers and optimize the purchasing process. Purchasing categories are also an important structuring element in the sup plier evaluation process. They enable you to compare the evaluations of all suppliers in the same purchasing category. To drive and organize procurement-related activities, your buyers can use the procurement activity management process. You have a central overview of the master data of each supplier, such as ad dress details, contact person, bank and tax data. The classification details enable you to assign important characteristics to your suppliers, such as the strategic importance (ABC classification) and the relationship you have with a supplier (for example preferred supplier). A score card for each supplier enables you to monitor the supplier's corporate social responsibility compliance. If your company has a contract with D&B, you can display the D&B data of the supplier. 2.11.2.2 Supplier Evaluation Business Background You can evaluate your company's suppliers to obtain a basis for your business relationship with them and for optimizing your supply base. Based on the feedback you gather through questionnaires, you obtain a scorecard for each supplier evaluated. The scorecard helps you to assess a supplier's strengths and shortcomings and to initiate measures for improvement. Evaluation scorecards also enable you to easily compare suppliers within a peer group. 120 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Key Features The following table explains the key features available: Key Feature Evaluation Questionnaire Supplier Evaluation Template Supplier Evaluation Request Supplier Evaluation Response Evaluation Scorecard Use You can create questionnaires that you then send out to internal stakeholders within your company to collect information about your suppliers. The question naires can contain different types of questions, depending on your require ments. If required, you can translate the questionnaires into further languages. You can use evaluation templates to repeatedly generate evaluation requests that share the same properties. As an example, requests generated from the same template use the same questionnaires. In the evaluation process, evaluation templates are set up for peer groups of suppliers within particular purchasing categories. They include questionnaires that enable you to identify the strengths and shortcomings of the suppliers. The purchaser responsible for a purchasing category starts the evaluation process by sending out an evaluation request to appraisers. An evaluation response includes the answers given by an appraiser. If the ques tionnaires have been scored, the scores are shown in a score overview. Evaluation scorecards show the overall result of a questionnaire-based supplier evaluation for one supplier, aggregating the evaluation results from all apprais ers. If you evaluate a supplier in yearly intervals, you have an evaluation score card for this supplier reflecting the scores for the entire year. See also the key feature Supplier Evaluation under Spend Visibility [page 118] 2.11.3 Sourcing 2.11.3.1 Source Assignment Business Background You use the source assignment solution to identify potential sources of supply based on past purchase orders and existing long-term purchasing agreements. Sourcing enables you to find the most qualified and reliable suppliers, negotiate with them, and create both scheduling agreements and purchase contracts. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 121 Key Features The following table explains the key features available: Key Feature Purchasing info record Source list Quota arrangement Use A purchasing info record is a source of supply. The info record contains data about a specific material and its supplier. You can use an info record to define the prices and conditions at which you purchase a material from a specific sup plier, for example. You can check how conditions in info records have developed over time, and flag an info record so that it is taken into consideration when a purchase requisition is created automatically during an MRP run. You can store information about a supplier and a material as master data at purchasing organization or plant level. You can create purchasing info records for different procurement types (standard, subcontracting, pipeline, and con signment). You can define which sources of supply are valid for usage in an MRP run through the source list. Depending on the material or plant, you can use the source list to automatically assign an info record, a scheduling agreement item, or a purchase contract item to be used as the source of supply. You can use quota arrangements to split up a specific material requirement for a plant to several sources of supply, that is, to several suppliers. This allows you to minimize the risk of delivery failures for important materials. 122 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Key Feature Requests for quotations Supplier quotations Use If you do not have a valid source of supply, you can use the requests for quota tions process to find one. A request for quotation is a request from a purchas ing organization to a supplier to submit a quotation for the supply of materials or lean services. You can create requests for quotations and maintain general information and attributes such as the purchasing organization, delivery terms, and deadlines. You can also add attachments. If you want your strategic buyers to invite sup pliers to place bids, you can send the request for quotation (including attach ments) to SAP Ariba Sourcing. After the suppliers have placed their bids in SAP Ariba Sourcing, strategic buyers can award bids and send them to SAP S/ 4HANA, where you can check the detailed information of the awarded quota tions. In SAP Ariba Sourcing, you can select whether a contract or a purchase order should be created for the selected quotation. Alternatively, if you just want to request only price and quantity information or shipping costs, the request (including attachments) is sent to the Ariba Net work after you publish it. Suppliers can create their bids directly on the Ariba Network and send them back to SAP S/4HANA, where you can award one of them. You can also create price requests in SAP S/4HANA and send them directly to your supplier via e-mail or as a printed version by mail. You receive the quota tions from the suppliers and can manually create and award them in SAP S/ 4HANA. In all three cases, RFQ items can be selected for an info record update, which means that the prices from the most recent bids are transferred to the corre sponding info record. A supplier quotation is an offer from a supplier to a purchasing organization to supply materials or lean services. In SAP S/4HANA, supplier quotations can be created in one of the following ways: They can be generated from awards from SAP Ariba Sourcing that are transferred to SAP S/4HANA via Ariba Network If you have requested price information and suppliers have submitted their bids directly on the Ariba Network, the questions are created in SAP S/4HANA. You can then award the quotations in SAP S/4HANA. Quota tions that have not yet been awarded can still be manually changed in SAP S/4HANA. You can create supplier quotations manually in SAP S/4HANA. You can define approval rules for supplier quotations. These rules are ap plied during the awarding process in SAP S/4HANA. You can display awarded quotations and all relevant detailed information. Purchase orders and contracts that are based on awarded quotations are automatically created in the background, and can then be processed fur ther. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 123 Key Feature Comparing Supplier Quotations Use You can compare all received supplier quotations for a specific RFQ and award the best quotation. 2.11.4 Contract Management 2.11.4.1 Operational Contract Management Business Background You use the operational contract management solution when you wish to enter into long-term purchasing arrangements with suppliers regarding the supply of materials or the performance of services. Key Features The following table explains the key features available: Key Feature Managing purchase contracts Use A purchase contract is an outline purchase agreement between the supplier and your company to procure special materials or services against which re lease orders (releases) can be posted. You can get an overview of all existing contracts, where you can use various sorting and grouping functions. From the list of contracts, you can directly re new a contract and also see the validity status of each contract. You can navi gate into a specific contract and process it. The prices and conditions from the contract will be copied into the purchase order when referring to a contract. A contract can be maintained with a special validity time frame and a target quantity or a target value. When the target quantity or value you call off is ex ceeded, the system issues a warning. You can create a contract template, enabling you to reuse data that is inherited from the template whenever you create a new contract. This reduces both the time and effort you spend on filling out the data. 124 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Key Feature Managing scheduling agreements Use Scheduling agreements are a form of outline purchase agreement under which materials are procured on predetermined dates within a certain time period. Scheduling agreements contain prices and conditions for a material item. Re leases from a scheduling agreement can occur using the MRP run, or release them manually, or you can plan scheduling agreement releases as a back ground job. You can create and change scheduling agreements as required, and maintain the delivery schedule. 2.11.5 Operational Procurement 2.11.5.1 Self-Service Requisitioning Business Background Self-service requisitioning allows you to create, manage, and track your orders efficiently. You can create items from external catalogs, free-text items, and an integrated cross-content search based on SAP HANA, from which you can select the materials and services you require. After ordering these products, an approval process is triggered. Once your purchase requisition has been approved, a purchase order is created. Key Features The following table explains the key features available: Key Feature Product selection Status overview Purchase requisition approval Purchase order processing Use You can order products by selecting them from catalogs, by entering a free-text item, or by selecting a product ID from the product master. You can monitor the status of all your requisitions to see who is responsible for the next approval step. You can use the flexible workflow for purchase requisitions, enabling you to op timize the approval process. The flexible workflow allows you to use either the automatic, one-step, or even multi-step approval. From the overview of all requisitions they are responsible for, approvers can ei ther approve or reject them. Once the requisition has been approved, a follow-on document is created and submitted to the supplier. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 125 Key Feature Confirmation processing Return delivery processing Use After you have received the products you have requested, you confirm the de livery. If you need to return products after you have confirmed the delivery, for exam ple because they are damaged or due to poor quality, the return delivery proc ess is available. 2.11.5.2 Requirements Processing Business Background A purchase requisition is a request to procure a certain quantity of a material, or a service, so that it is available at a certain point in time. A purchase requisition is used as the starting point in purchasing and may be created manually. A demand from an MRP run, for example, can also result in a purchase requisition. A purchase requisition may be subject to either a release strategy or can trigger an approval process. 126 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Key Features The following table explains the key features available: Key Feature Use Managing purchase requisitions Purchasers or other specialists can create purchase requisitions manually. You can assign a source of supply from the proposed possible sources of sup ply, or you can manually assign a supplier. When you purchase materials or services, you can specify an account assignment. You can also implement an approval process using the workflow for purchase requisitions. You can assign a source of supply to the items in a purchase requisition and process them. If no source of supply is available in the system or if several po tential sources of supply exist, you can also create a request for quotation to find the most suitable supplier. You can optimize the purchasing process by bundling several purchase requisi tions into one purchase order. Alternatively, you can also create a purchase contract if required. If the sources of supply are assigned, you can also plan the automatic creation of purchase orders from requisitions as a background job. Embedded analytics help suppliers to find the best possible source of supply. You can create a list of purchase requisitions based on different attributes, such as the supplier, a material, or an account assignment. Alternatively, if no suitable source of supply exists, you can create a request for quotation and send it to Ariba Sourcing. Making mass changes to purchase requi sitions You can select purchase requisitions and trigger a mass change for specific values. 2.11.5.3 Purchase Order Processing Business Background A purchase order is a request or instruction to an external supplier to deliver materials or to perform services at a certain point in time. Purchase orders can be based on purchase requisitions, but you can also create them manually from scratch. In addition, you can use an existing purchase order, an info record, or a contract as a reference. A release strategy may also be in place for purchase orders. You can change purchase order data depending on the existence of follow-on documents, such as a goods receipt, or an invoice. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 127 Key Features The following table explains the key features available: Key Feature Use Overview of existing purchase orders In the overview of all purchase orders, you can use diverse filter criteria to find the relevant purchase orders you are interested in. You can do so, for example, based on the status of a purchase order, the materials that were ordered, or suppliers to which a purchase order was sent. You can also copy an existing purchase order or create a new purchase order from scratch. Furthermore, you can navigate into an existing purchase order, and, depending on its status, make changes. Creation of purchase order based on exist You can create a purchase order based on info records, contract items, or pur ing documents chase order items. All data that can be derived from the selected document is automatically transferred into the purchase order to be created. Automatic adaptation of dependent val ues Whenever you enter information into a field for which dependencies exist, the according dependent values are automatically considered. If, for example, you select a specific supplier, only those currencies and companies that are de fined for the supplier can be selected. Using the approval process You can use the flexible workflow for purchase orders, enabling you to optimize the approval process. The flexible workflow allows you to use either the auto matic, one-step, or even multi-step approval. You can immediately see the approval status of a purchase order, together with the responsible approver. Monitoring of follow-on processes You can check the status of supplier confirmations as well as the status of cre ated goods receipts and supplier invoices. 2.11.5.4 Purchase Order Collaboration (Ariba Network Integration) Business Background In this process you can collaborate with your suppliers via the Ariba Network. You do this by exchanging purchase-order-related cXML messages between SAP S/4HANA and the Ariba Network. 128 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Key Features The following table explains the key features available: Key Feature Use Sending purchase orders You can send purchase orders as well as changes to purchase orders or cancel lations from SAP S/4HANA to the Ariba Network. The following item types are supported: Standard items Limit items Third-party items Service items (for external services) Purchase orders can be transferred including attachments they have at header level. Receiving confirmations You can receive purchase order confirmations from your suppliers via the Ariba Network. Receiving service entry sheets (for exter nal services) You can receive service entry sheets from your suppliers on the Ariba Network . In SAP S/4HANA, you can approve or reject them. The status is transferred to the Ariba Network. Once a service entry sheet has been approved, suppliers can create an invoice for the external services. Receiving advanced shipping notifications You can receive advanced shipping notifications from your suppliers via the Ariba Network, which creates inbound deliveries in SAP S/4HANA. Sending goods receipts (for materials) You can send goods receipts to your suppliers on the Ariba Network to inform them that you have received material items. On the Ariba Network, suppliers see whether a part of the delivery or the full delivery has been received. Monitoring You can monitor and troubleshoot the outbound cXML messages using SAP S/ 4HANA Output Management. You can resend or cancel such messages, and you can display the Application Log. 2.11.5.5 Service Purchasing and Entry Business Background In addition to their own workforce, many companies employ external service providers. You can use service purchasing for a wide range of services, such as planned and unplanned maintenance and construction, or translation services. When you request services from your suppliers, you can specify all the services that may be procured in detail. It is possible to do the cost assignment at a later point in time. Depending on the nature and the complexity of the services and of the related processes, you can choose either external services or lean services to best meet your business requirements. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 129 Key Features The following table explains the key features available: Key Feature Use Determination and recording of require ments Based on either a purchase requisition or a purchase order, you can request services from your suppliers. You can enter a set of detailed service specifications, but it is also possible to enter only a rough provision for unplanned serv ices by setting value limits. Determination of possible sources of sup ply You can base your request for a service on reference purchase orders and ex isting long-term purchasing agreements. If you request services for which there is no prior requirement, you can also enter the source manually. Monitoring of purchase orders During the phase of the service performance, you can continually update the services that are actually performed, enabling you to monitor the progress. Entry of services actually performed You enter services that have actually been performed by means of service en try sheets. In doing so, you can reference the purchase order. Each individual service is recorded together with quantities and values. If a value limit for un planned services has been set in the purchase order, you can maintain specifications for such services at the time you record their actual performance. The services are recorded with their precise value, and the system checks that the limit has not been exceeded. Acceptance of services performed After you have recorded the services that have been performed in the service entry sheet, the persons responsible can check that the work is satisfactory and formally accept the services. Verification of invoices for services In the final step, you ensure that the service provider's invoices are correct. 2.11.6 Invoice Management 2.11.6.1 Invoice Processing Business Background The invoice processing follows the processes of purchase order and goods receipt. A supplier invoice is a document from a supplier for materials that were delivered or services that were performed. You can create a supplier invoice manually. The invoice verification checks the supplier invoice for accuracy with regard to content, price, and accounting. You can search for supplier invoices depending on the status, and you can release blocked invoice items. When you post the invoice, the data from the supplier invoice is saved in the system and both an invoice document and an accounting document are generated. 130 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Key Features The following table explains the key features available: Key Feature Use Supplier invoice verification You create a supplier invoice after receiving the invoice from the supplier. You can create the supplier invoice with reference to a purchase order or without any reference. The invoice verification checks the supplier invoice for correctness, Before posting the document, you can simulate the supplier invoice in order to display the account movements. In addition, one clerk can park the invoice document and another clerk can complete the process and post it. When the invoice re duction functionality is used during the creation of an invoice, output manage ment is triggered to inform the supplier. You can schedule the output as a regu lar job. Relevant for China: The integration of supplier invoice verification with the Golden Tax System (GTS) is supported. Supplier invoice approval You can search for supplier invoices and use the search result as a supplier in voice worklist that allows you to display the detail data. For example, you can display a list of blocked supplier invoices and release or reverse them. The invoice can also be released automatically. In this case, the system checks each blocking reason to see whether it is still valid. You can display supplier invoices that are assigned to you by workflow. The workflow allows you to display posted supplier invoices that are automatically blocked for payment. You can approve or reject the corresponding work item. If necessary, you can forward a work item to a different employee for further processing. Working with goods receipt and invoice receipt clearing accounts You can maintain goods receipt and invoice receipt clearing accounts, and can cel the created documents if required. Consignment and pipeline settlement For goods withdrawals from consignment stocks or from a pipeline, you do not expect an invoice from the supplier. Instead you settle posted withdrawals and return deliveries yourself and send the supplier a statement of the settlement. Supplier invoice jobs You can schedule and monitor recurring, supplier invoice related activities as a background job. For example, you can choose the job template Evaluated Re ceipt Settlement. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 131 2.11.6.2 Invoice Collaboration (Ariba Network Integration) Business Background In this process you can collaborate with your suppliers via the Ariba Network. You do this by exchanging invoice-related cXML messages between SAP S/4HANA and the Ariba Network. Key Features The following table explains the key features available: Key Feature Receiving invoices Sending CC invoices Sending status updates for invoices Monitoring Use You can receive invoices from your suppliers via the Ariba Network. The cXML message always transfers a PDF version of the invoice. The transfer of addi tional attachments is also supported. For invoices created on the Ariba Network, you can perform invoice verification in SAP S/4HANA. Alternatively, you can use SAP Ariba Invoice Management for invoice verification. In this case, the invoices are sent to SAP S/4HANA via the Ariba Network after verification is performed. Note that service-related invoi ces are not supported if you integrate SAP Ariba Invoice Management for in voice verification. Error-free invoices can be posted automatically in SAP S/4HANA. Invoices with errors can be saved with errors and can later be processed manually. You can transfer supplier invoices created in SAP S/4HANA as CC invoices (carbon-copy invoices) to your suppliers via the Ariba Network. Such invoices are sent for status tracking and follow-on processes. Status updates for the received invoices or for CC invoices are sent to your suppliers via the Ariba Network. For example, when an invoice is posted, paid, reversed, or when a blocked invoice is released, a status update is sent. You can monitor and troubleshoot the cXML messages using the SAP Applica tion Interface Framework (AIF), that includes information from the standard application log. For example, you can restart or cancel cXML messages. Related Information Dynamic Discounting (Ariba Network Integration) [page 39] Payment Advice Collaboration (Ariba Network Integration) [page 40] 132 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management 2.11.6.3 Invoice Collaboration (SAP Fieldglass) Business Background SAP Fieldglass provides a cloud-based solution for managing contingent workforce and service procurement. SAP S/4HANA currently supports an integration scenario for invoice handling with SAP Fieldglass that is enabled by the exchange of cXML messages. Key Features The following table explains the key features available: Key Feature Receiving invoices Sending status updates for invoices Use Invoices created in SAP Fieldglass are automatically posted in SAP S/4HANA. Once an invoice in SAP S/4HANA is paid, the status is automatically transfer red to SAP Fieldglass. 2.12 Supply Chain 2.12.1 Basic Inventory, Warehousing, and Transportation 2.12.1.1 Inventory Analytics Business Background Inventory Analytics covers the following inventory management tasks: Performance of physical inventory (stocktaking) and stock adjustments both for a company's own stock and for special stocks on periodical basis Evaluating and displaying of documents (for example, material documents) and stock information Check reports and analysis reports Creating and managing of reservations at plant level, storage location level, or batch level to ensure the availability of materials for planned goods movements Inventory management is mainly performed by employees managing the company's stocks at plant and storage location level. For posting goods movements, see Goods Issue and Goods Receipt. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 133 Key Features The following features are available: Key Feature Use CWM This feature allows you to create CW materials. Goods movements and stocks of CW ma terials are processed in two quantities with a variable proportion. The base quantity of CW materials is used to operate the logistics of a process, while the parallel quantity is used to valuate the goods movements and stocks. This allows you to define logistic quantities and inventory values based on different properties of a material. This feature enables you to work with a CW material that has two units of measure for warehouse stock as well as for material movements: the base unit of measure and the parallel unit of measure for valuation determination. The purpose of a separate valuation unit of measure is to ensure that a material can be managed with one quantity influencing the valuated stock and another quantity having no impact on the valuated stock. For example, a CW material uses pieces and kilograms. The quantity in kilograms determines the valuated stock, but this is independent of the number of pieces involved. This feature supports requirements of specific industry sectors, such as the food proc essing industry, that need a separate valuation unit of measure. Physical inventory / inventory count and adjustment This feature allows you to perform the periodic process of making necessary adjust ments to stock on hand after a physical count. The benefits are: Transparent view on the stocks currently available Efficient processing of inventory adjustments The process begins with the generation of the required inventory count sheets. Materials can be blocked here for posting during the physical inventory. Once the inventory sheets are printed out, the actual physical inventory count is realized for the given materials. Af terwards, the count result is entered in the system and then any discrepancies against the system quantities are reviewed. The inventory may be recounted until final counts are accepted and inventory differences are posted. In addition, this feature enables you to perform the following physical inventory proce dures: Sample-based physical inventory The sample to be inventoried is determined on a mathematical-statistical basis. A physical inventory count and an inventory adjustment posting are performed for the items in the sample. Based on the inventory adjustment posting, an extrapolation provides an estimated value for the entire stock. If the extrapolation is successful, it is assumed that the book inventory is correct. Note that the sample-based physical inventory is not available for EWM-managed storage locations. Cycle Counting The materials to be inventoried are counted at regular intervals during a fiscal year. You can use the cycle counting approach, for example, to ensure that stocks of fastmoving items are checked more frequently than slow-moving items. 134 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Key Feature Reporting Reservations Period closing Use The reporting feature includes a range of functions and reports that provide extensive in formation on all materials and their stock data: Reports to evaluate and display, for example, the following documents: Material documents Material documents for which at least one reason for movement has been specified Accounting documents available for a selected material Sales documents that contain a specific batch of a material Reports to evaluate and display, for example, the following stock information: Total stocks of given materials at plant and storage location level Stock in transit Stock situation of a given material in selected plants including consumption statis tics and current stock/requirements list Vendor consignment stocks Consignment and returnable packaging stocks at customer's site Stock in a particular time period Remaining shelf life of batches Valuated sales order stock and valuated project stock Stock that is made available to the vendor (subcontractor) and stored on the ven dor's premises but remains the property of your enterprise Total stock quantity and the total stock value for a material at plant and storage lo cation level Check reports and analysis reports, for example: Comparison of goods receipt quantities and values relating to a purchase order with invoice quantities and values for the same purchase order Analysis of rounding differences that resulted from conversion between units of en try and base units Displaying and deleting data that you have held for further processing but not yet posted Identifying overdue materials that were already posted into the non-valuated goods receipt (GR) blocked stock Identifying slow or non-moving materials This feature enables you to make a request to the warehouse to keep materials ready for withdrawal at a later date and for a certain purpose. The purpose of a reservation is to ensure that a material will be available when it is needed. This simplifies and accelerates the goods movements process. A reservation for goods issue can be requested by vari ous departments for various account assignment objects (such as cost center, order, as set, etc.). A reservation can be taken into account by material requirements planning, which means that required materials are procured in time if they are out of stock. Goods movements are managed by period. For goods movements to be posted to the correct period, you set the correct period whenever a new period starts. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 135 Key Feature Use Displaying price change docu ments This feature allows you to display price change documents that specify the valuation price of materials. Monitoring and adjusting inven tory process tasks You have various options for monitoring and adjusting inventory processes supporting daytoday tasks based on for example recent inventory counts, warehouse throughput history, or outbound delivery lists. Analyzing and evaluating inven tory management Key Perform ance Indicators (KPIs) You have various options for analyzing and evaluating inventory management processes based on for example stock value by stock type, warehouse throughput history, or over due materials. Output processing A physical goods movement generally requires a document in printed form, for example, to serve as a transfer document (goods receipt slip, goods issue slip) for the warehouse or as a label for identification of the material (pallet slip). This feature enables you to generate corresponding documents and to specify that the output is printed or that it is produced and sent by other means, for example by e-mail. 2.12.1.2 Goods Issue 2.12.1.2.1 Logistics Execution Business Background The goods issue process for outbound deliveries is the final activity you complete before you send goods to a customer. An effective and efficient outbound delivery process enables you to plan accordingly for the picking, packing, and shipping of your outbound deliveries. Outbound deliveries are created when the following processes occur: Sell from stock: a customer orders goods from your company Returns: you return goods to your supplier Stock transfer: you transfer goods from one plant to another plant 136 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Key Features The following table explains the key features available: Key Feature Outbound delivery processing Picking Packing Goods issue Use You use this feature to record shipping-planning information, monitor the sta tus of shipping activities, and document data gathered during the outbound delivery process. When you create an outbound delivery, shipping activities such as picking or delivery scheduling commence. Data that is generated dur ing the outbound shipping process is included in the delivery. The outbound delivery supports all shipping activities. An outbound delivery can be created as follows: With reference to a sales order With reference to a stock transport order Without any reference This feature enables you to move outbound goods from their storage location to a staging area. Once the goods are in the staging area you can prepare them for shipping. With this feature, you can select outbound goods for packing and assign them to handling units (HUs). This feature enables you to post a goods issue. Once you post a goods issue, you initiate the movement of goods from your company to your customer. Your stock is updated to reflect this reduction in goods. 2.12.1.2.2 Inventory Management Business Background Even in a computer-supported inventory management system, the accepted accounting principle of no posting without a document applies. According to the document principle, a document must be generated and stored in the system for every transaction/event that causes a change in stock. The Goods Issue features enable you to post goods movements that lead to a reduction in warehouse stock. Goods issue postings are mainly performed by employees managing the company's stocks at plant and storage location level. For further inventory management features, see Inventory Analytics. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 137 Key Features The following features are available: Key Feature Posting goods issues Transfer posting and stock transfer Use This feature allows you to post, for example, the following goods movements by generat ing corresponding material documents: Goods issues A goods movement with which a material withdrawal or material issue, a material consumption, or a shipment of goods to a customer is posted. A goods issue leads to a reduction in warehouse stock. Scrapping A posting in the inventory management system made if a material can no longer be used. Return delivery A delivery returning goods to the vendor for some reason (for example, due to poor quality or because they are damaged), even if the goods receipt has already been posted. If the vendor sends a substitute delivery, the return delivery can be refer enced to the goods receipt. This feature enables you to perform stock transfers from one storage location to another storage location as well as changes in stock type or stock category of a material. It is ir relevant whether the posting occurs in conjunction with a physical movement or not. Stock transfers can occur either within the same plant or between two plants. 2.12.1.3 Goods Receipt 2.12.1.3.1 Logistics Execution Business Background The goods receipt process for inbound deliveries is the final activity you complete before you receive goods into your company. The significant advantage of depicting the goods receipt process through the inbound delivery function is that you can execute many processes in advance, even before the actual goods receipt posting takes place. You have all the necessary information beforehand because the supplier notifies you of the inbound delivery ahead of time. An effective and efficient inbound delivery process enables you to plan for the putaway, packing, and storing of goods that arrive into your company. Inbound deliveries can be derived from a purchase order document or they can be part of a two-step stock transfer process. 138 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Key Features The following table explains the key features available: Key Feature Inbound delivery processing Packing Putaway Goods receipt Use You use this feature to record planning information, monitor the status of dif ferent activities, and document data gathered during the inbound delivery process. When you create an inbound delivery, activities such as putaway com mence. Data that is generated during the inbound delivery process is included in the delivery. The inbound delivery supports all goods receipt activities. An in bound delivery can be created as follows: With reference to a purchase order With reference to a stock transport order, as the second step for the re ceiving plant With this feature, you can select inbound goods for packing and assign them to handling units (HUs). You can use this feature to put goods away in storage bins in your warehouse. This feature enables you to acknowledge that you have received the goods from your supplier. Your stock is updated to reflect this increase in goods. 2.12.1.3.2 Inventory Management Business Background Even in a computer-supported inventory management system, the accepted accounting principle of no posting without a document applies. According to the document principle, a document must be generated and stored in the system for every transaction/event that causes a change in stock. The Goods Receipt features enable you to post goods movements that lead to an increase in warehouse stock. Goods receipt postings are mainly performed by employees managing the company's stocks at plant and storage location level. For further inventory management features, see Inventory Analytics. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 139 Key Features The following features are available: Key Feature Posting goods receipts Transfer posting and stock transfer Use This feature allows you to post, for example, the following goods movements by generat ing corresponding material documents: Initial entry of stock balances An operation performed once at the start of the productive life of the system in which physical stocks on hand or book inventory balances from a legacy system are recorded as opening book balances. Goods receipts A goods movement with which the receipt of goods from a vendor or from produc tion is posted. A goods receipt leads to an increase in warehouse stock. This feature enables you to perform stock transfers from one storage location to another storage location as well as changes in stock type or stock category of a material. It is ir relevant whether the posting occurs in conjunction with a physical movement or not. Stock transfers can occur either within the same plant or between two plants. 2.12.1.4 Basic Shipping Business Background Basic Shipping in SAP S/4HANA supports the entire transportation chain. You can manage the transportation demands by planning, tendering, and settlement of freight processes. Also, you can book carriers in accordance with the requirements of hazardous goods. Basic Shipping supports the following end-to-end processes: Domestic and international transportation for the shipper industry Inbound and outbound freight management 140 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Key Features The following table explains the key features available: Key Feature Use Master data and transportation network Agreement management You can create and use central master data such as business partners and products for transportation-related processes. In addition, you can use trans portation-specific data to set up your transportation network, for example, lo cations, transportation lanes, and default routes. You can use freight agreements in Basic Shipping. An agreement is a contract between business partners that details their commitment to conduct business with each other in an agreed manner. It includes contractual data, such as the following: Organizational unit, for example, the purchasing organization Involved parties, for example, the ordering party or carrier Terms of payment Validity dates Agreement management is integrated with charge management in Basic Ship ping. Basic Shipping calculates transportation charges based on the master data stored in calculation sheets, rate tables, and scales that are part of the agreement. Charge management You can use charge management to set up the master data that the system uses to calculate transportation charges. You can calculate the charges for transporting goods between locations based on the rates you maintain in a rate table. The system uses master data, such as agreements, calculation sheets, and rate tables, when calculating transportation charges. Logistics integration In the integrated logistics process, Basic Shipping uses inbound or outbound deliveries to create freight units. In addition, the logistics integration allows you to continuously react to changes of original documents that occur in the sys tem. Freight order management In freight order management, you can create and edit freight orders and freight bookings. These documents contain information required for transportation planning and execution, such as source and destination locations, dates or times, and product information, and resources used. You can create freight or ders directly or in transportation planning. For example, you can assign freight units to the freight orders, perform manual carrier selection, assign the freight orders directly to a carrier as a suborder, or perform tendering. Further, you can have the system calculate the transportation charges. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 141 Key Feature Basic tendering Basic planning Freight settlement Use You can use this process to send out freight requests for quotation (freight RFQs) to one or more carriers. You can send the freight RFQs manually. You can also use a direct tendering process to send a road freight order (road FO) directly to a specified carrier without creating a freight RFQ. The carrier can confirm or reject the road FOs. Direct tendering can be created and started manually by the user. In basic planning, freight units are created on the basis of inbound or outbound deliveries. You can manually assign freight units that are based either on in bound or outbound deliveries to capacities such as freight orders. The system automatically creates freight documents (that is, freight orders or freight book ings) depending on the settings that you have configured in Customizing. In freight settlement, a freight order or freight booking provides the basis for the freight settlement document or a credit memo for a freight order. You use this function to trigger the verification of an invoice, which has been received from a supplier or carrier, against a freight settlement document. 2.12.1.5 Basic Warehouse Management Business Background Basic warehouse management provides support with and real-time transparency into managing and processing material movements flexibly for optimized warehouse operations. 142 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Key Features The following table explains the key features available: Key Feature Warehouse Structure Inventory Management Use Basic warehouse management supports you from the very beginning, starting with structuring your warehouse, as follows: You define the physical structure of your warehouse or warehouse com plex and map this in the system. You define the individual storage types, such as high-rack storage area, bulk storage area, or picking storage area, and join them together under one warehouse number. You create storage bins for each storage type. Basic warehouse manage ment uses these to manage stock information about all products in the warehouse, at storage bin level. You can map your entire warehouse complex in detail in the system, down to storage bin level. This gives you an overview of the total quantity of each prod uct in the warehouse. You can also always see exactly where a specific product is, at any time, in your warehouse complex. You can manage the product quantities in different stock categories on the fol lowing levels: At storage bin level In intermediate locations On resources In handling units In nested handling units You can also store and manage the following kinds of product in your ware house: Batch-managed products Products with serial numbers Catch weight products You can also manage the following special stock in your warehouse: Vendor consignment stock Project stock Customer order stock SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 143 Key Feature Handling Units Inbound Processing Use A handling unit is a physical unit consisting of packaging materials (load carri ers or packing material) and the goods contained in it. A handling unit is always a combination of products and packaging materials. All the information con tained in the product items, for example, about batches, is retained in the han dling units and is always available. Handling units can be nested, and you can put several handing units into an ex isting handling unit and manage multi-level nested handling unit structures.. A handling unit has a unique, scannable identification number that you can construct according to industry standards such as EAN 128 or SSCC. You can receive products from the following sources: Vendors Production Other parts of your company Customer returns You can create and confirm multi-step putaway tasks for the putaway of the products, including the following steps: Unloading Counting or quality inspection Deconsolidation Final putaway You can schedule putaway activities in one of the following ways: Automatically during inbound deliveries Regularly at specific times Manually, using overviews of the daily loads You can optimize your warehouse capacity and material flow by using putaway strategies. These simplify the search for appropriate storage bins for your in coming products by automatically determining suitable storage bins for the new products. Note that many of these strategies are based on the use of han dling units. 144 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Key Feature Outbound Processing Internal Warehouse Movements Use You can pick products and send them out of your warehouse for the following scenarios: Send ordered products to external customers Supply products to production Return products to vendors Supply products to internal consumers, for example, a cost center You can create and confirm goods issue documents for the delivered products. You can optimize your warehouse capacity and material flow by using stock re moval strategies. These simplify the physical process of picking by determining the optimal picking bin for the product. You can gather warehouse tasks and enable mobile execution and confirmation using radio frequency (RF) transactions. This allows warehouse workers to per form their tasks with greater efficiency and communicate statuses faster, using mobile RF devices. You can plan, create and confirm tasks for moving products to different areas inside the warehouse, for example, replenishment of products in picking bins. You can also perform ad-hoc internal warehouse movements, using RF trans actions or from the warehouse management monitor. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 145 Key Feature Physical Inventory 146 PUBLIC Use You can plan, conduct and confirm regular counts of actual product quantities in the warehouse and compare the physical stock to the data in the system. Following the count, you can update the accounting data for the stock in the case of differences between the quantity of physical stock and the quantity in the system. This counting can be performed in the following ways: Annual inventory You record all stocks on a certain day or within a fairly short period (in most cases at the end of the fiscal year). During this time, you can prohibit stock movements. Ad-hoc physical inventory You carry out inventory-taking for certain storage bins or products. You can do this at any time during the fiscal year. For example, an ad hoc phys ical inventory may become necessary because a product has been dam aged or because you have received complaints from a customer about a product. Continuous inventory You use cycle counting to carry out a physical inventory of your stocks at regular intervals during a fiscal year. You can specify the intervals or cycles at which you are going to carry out the physical inventory for specific products by allocating these products to different classes. For example, this allows you to inventory fast-moving products in your warehouse more frequently than slow-moving ones. Low-stock or zero-stock checks You can perform low-stock checks when working with product tasks dur ing the picking process, based on a limit value for the storage bin and product (usually a number that is easy to check at a glance). During the physical removal of stock from storage, you check whether the storage bin data reflects the actual stock situation. If the limit is set to zero, it is a zero-stock check. You can trigger a low-stock check manually or the system can trigger it au tomatically when the stock in the bin falls below the limit. Putaway physical inventory You can carry out physical inventory for a storage bin at the time of the first putaway in this bin in the fiscal year. During the current fiscal year, no further physical inventory is performed for this storage bin, even if a completely different quant is stored there at the end of the year, or if the bin is empty. Recounting Note Basic warehouse management does not support sample-based physical inventory. An interface for integration to a partner solution is available. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Key Feature Warehouse Management Monitor Analytics Resource Management Use You can use the warehouse management monitor to keep constantly up-todate as to the current situation in the warehouse, and to initiate appropriate re sponses to situations that arise. The warehouse management monitor gives you full transparency about the fol lowing attributes of your warehouse: Warehouse activities Stock and bins Resources Planned movements Executed movements Inbound deliveries Outbound deliveries The warehouse management monitor also contains alert monitoring capabili ties, which highlight actual and potential problematic situations in the ware house, and provides exception handling tools. You can use outbound delivery order CDS views to perform outbound workload analysis and progress monitoring and to perform outbound execution quality analysis. A resource is an entity representing a user or equipment that can perform work in the warehouse. You can use resource management to maximize the efficiency of your ware house processes in the following ways: Facilitate the management and distribution of work Optimize the selection of warehouse orders for resources requesting work This enables effective monitoring and controlling of resources. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 147 Key Feature Quality Management Use You can check whether delivered products satisfy your quality criteria as part of the inbound process. Basic warehouse management is integrated into Quality Management using in spection lots of origin 17. You use inspection rules to determine whether a delivery item is inspection-rel evant and to specify the details of the inspection, for example, inspection type, location-independent stock type, or process step performed in the warehouse. Quality Management supports the following scenarios: Receiving from external sources like vendor or other plants Receiving from production Partial usage decision Inspection lot summary to bundle multiple goods receipts Inspection of stock inside the warehouse Recurring inspections Customer returns inspection with integration into Advanced Returns Man agement Presampling in production Acceptance sampling Goods receipt control by quality information record 148 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Key Feature Production Integration Use You can integrate the supply of products to production and the receipt of prod ucts from production into your warehouse. You can also return unused and un needed parts back into stock in your warehouse. Delivery-Based Production Supply With delivery-based production supply, you can supply products to production based on the following order strategies: Production Orders Process Orders Kanban You can stage the products required for a production or process order in the following ways: The required products are pick parts in the case of individual orders, or re lease order parts in the case of multiple orders, which you stage in time and in the required quantity based on a production or process order. The required products are products that you use continually, which you stage independently of existing orders. The required products are materials stored in a crate or container, which you stage independently of manufacturing orders using the special method Kanban. Advanced Production Integration Advanced production integration optimizes the supply and receipt of products in the following ways: You can plan the staging of products for production over a period of time, allowing you to use the space on your production supply area more flexibly. You can receive packed products as soon as they arrive from the produc tion line using radio frequency. This allows you to synchronize the material flows between the warehouse and production promptly, and improves inventory visibility. Advanced production integration is integrated with the manufacturing order processing. It allows you to stage and consume the materials and receive the semi-finished products or finished products in basic warehouse management. You can use advanced production integration for production orders in discrete manufacturing or for process orders in process manufacturing. There is an integration between SAP Manufacturing Execution and advanced production integration. This means that SAP Manufacturing Execution can trig ger the creation of staging warehouse tasks for the components, the consump tion of components, and the receiving of finished goods in basic warehouse management. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 149 2.12.2 Production Planning 2.12.2.1 Basic Order Promising/ATP Business Background Internal sales representatives and order fulfillment managers require mechanisms to configure, execute and monitor availability checks and optimize the distribution of supply. This is particularly important when the availability of materials needed to confirm requirements is limited. You can use the basic available-to-promise (ATP) capabilities to confirm on which date and in which quantity a sales order requirement can be fulfilled. Key Features The following features are available: Key Feature Availability Check Use You can use this feature to determine on which date and in which quantity a sales order requirement can be confirmed, based on a specified checking rule and the current supply situation for the specified material. The availability check takes concurrent requirements of differing types and their respective confirmation situation into consideration. The availability check can be exe cuted during order creation and change and during re-scheduling. 2.12.3 Logistics 2.12.3.1 Returnable Packaging 150 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management 2.12.3.1.1 Returnable Packaging Logistics Business Background Returnable packaging logistics enables you to manage the exchange of reusable packaging materials with business partners, either as empties or as part of packages when delivering goods. As a company owning returnable packaging materials exchanged with business partners, you need to keep track of the stock of those packaging materials at each business partner. You could create account statements and send these to your business partners for verification. With postings to returnable packaging accounts, the stock exchange of returnable packaging materials between your company's locations and your business partners could be documented, resulting in an overall balance for each of the accounts. As a company exchanging returnable packaging materials with business partners owning them, you want to keep track of the stock of those packaging materials at your locations. You could receive account statements from these business partners and match the statement postings with your own account postings. Key Features The following features are available: Key Feature Use Managing returnable packaging accounts You define returnable packaging accounts for packaging materials and their specific ex change relationships of location (such as your plant) and exchange partners (such as suppliers or customers). Each account shows the current balance based on the quantities exchanged between the account location and the exchange partners using returnable packaging account postings. For each returnable packaging account, you could control whether account statements are sent or received. Postings to returnable packag ing accounts You could post to returnable packaging accounts automatically or manually. Goods movements in inventory management to returnable packaging materials involv ing your plant and the exchange partner could be used, for example, to trigger an auto mated returnable packaging account posting in the background. You could create manual postings to returnable packaging accounts for movements that do not involve inventory management of your plants or where the inventory manage ment posting does not include the exchange partner. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 151 Key Feature Use Managing statements to return able packaging accounts You manage returnable packaging account statements either by creating account state ments based on your account postings and sending those to your exchange partners or by receiving account statements from your business partners and matching those auto matically or manually with your own account postings. Ordering returnable packaging materials You could order empty returnable packaging materials to be replenished by your ex change partner using consumption-based planning processes. Evaluations/Monitoring You could use various reports to get an overview on: Returnable packaging accounts and their balances Returnable packaging account postings Returnable packaging account statements 2.12.3.1.2 Recycling Administration Business Background In many countries/regions, environmental law obliges companies to provide certification to account for the packaging materials produced and the number of finished products manufactured and brought to the market, and to collect and dispose of these materials and products at the end of the product life cycle. These kinds of regulations, along with an increased public awareness of environmental issues, provides companies today with new challenges. In addition to the standard manufacture and sale of products, companies are often now responsible for the correct disposal and recycling of their waste products. Most companies absolve themselves of the duty to perform these tasks themselves by collaborating with recycling partners such as the German Duales System Deutschland (DSD), who provide a general collection system in return for a license fee. Other examples include Eco Emballages (France), Conai (Italia), Elektro Recycling Austria (ERA, Austria), Stiftung Elektro-Altgeräte Register (EAR, Germany), and GRS Batterien (Germany). The recycling partners organize the collection, sorting, processing, and recycling of the waste packaging. The focus of the recycling administration features is the item-based or weight-based fee calculation for specific materials, as well as end-to-end transparency and implementation of the legal reporting requirements to environmental authorities. 152 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Key Features The following features are available: Key Feature Use Determination of the most price- This feature provides functions to analyze the data material (for example, condition and effective recycling partner price analyses), which you can use to compare the performance of different recycling partners. Automatic generation of forms for the selected recycling part ner This feature allows you to issue the data to be declared either electronically in the form of data medium exchange (DME) or on paper as a form. For the declaration, the system first generates a document that is posted in the declaration system. You can then gener ate the required documents from this document in accordance with the requirements of the recycling partners. Certified verification This feature fulfills country/region-specific reporting requirements. In your periodical declaration, you state the information and totals for all declared articles as a quantity flow in the period under consideration. This feature enables a certified verification at the level of individual documents and items. Use of existing material informa tion This feature allows you to access existing material master data and to enhance it. This allows for optimal integration with other features. Using individually configurable interfa ces, you can import data from third-party systems and process it further with declara tion and analysis functions. Automatic determination of quantity flow For generating declarations, recycling administration features automatically obtain im portant information from the sales and materials management areas. Cost control and controlling with sales, finance, and controlling features Recycling administration features are fully integrated with the following features: In the finance area, you enter a recycling partner as a supplier. In the controlling area, a budget is generated for settlement with recycling partners on the basis of the data processed with recycling administration features. Using sales features, you can evaluate the corre sponding billing documents. 2.13 Analytics Technology 2.13.1 Process Performance Monitoring Process Performance Monitoring allows you to monitor and analyze the performance of business processes. This can be used to identify bottlenecks in process execution and to send notifications about issues in currently running processes. A precondition for the usage of Process Performance monitoring is the configuration of S/ 4HANA component Process Observer for creating process-specific logs. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 153 2.13.1.1 Process Observer Process Observer allows you to map business processes executed in the S/4HANA system to an observation process model. The execution of the business processes along with their activities to be monitored is done during process execution. Process performance KPIs such as totals, lead times, and classifications to be evaluated in process performance monitoring are calculated at the same time. Key Features Define end-to-end process definitions as business process observation models Maintain a repository of application events and map application events to process steps Define process performance KPIs (totals, lead times, and classifications) Define thresholds for performance KPIs Create instances of running business processes and log process execution information (incl. information about the user and transaction) at runtime Calculate process performance KPIs for single process instances at runtime Review running process instances that are logged with their KPIs in the process monitor Extract data for monitoring and analytics with BI tools 2.13.1.2 Order-to-Cash Performance Monitoring You can check key figures to get an overview of the order-to-cash performance in your company. For example, you can track delivery blocks or billing blocks, detect changes made to critical fields of sales orders, and monitor lead times like order to delivery or goods issue to billing. 2.13.2 Report Design Modeler Business Background The Report Design Modeler apps are a set of SAP Fiori apps that you use to create and manage reports. Report Design allows your company to define, manage, and leverage consistent reports across all your business apps (for example, reporting tools, dashboards, and custom-built apps). 154 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Key Features The following table explains the key features available: Key Feature Create Report Create Report Evaluation Configure Report Drill-Down Report Workspace Publish Report Use You can use this feature to create reports. You use this feature to define a specific representation of the report data and targets along with additional information. You must specify an active report when you create an evaluation. You use this app to configure different views, charts, and reports for an active evaluation. You configure the drill-down so that you can analyze the report in further detail at runtime. You use this feature to access all of your reports in one place. You can activate, edit, delete, or duplicate a report as well as add them to your favorites. You use this feature to create tile visualizations for an active report. 2.13.3 Query Designer Business Background Query Design enables you to manage the creation of analytical queries, browse for analytical queries and create date functions. Key Features The following table explains the key features available: Key Feature View Browser Date Function Custom Analytical Queries Use With this feature, you can search, browse, and tag analytical and non-analytical queries. This feature enables you to create date functions that can be used by other apps to calculate single dates and date ranges. This feature enables you to analyze the queries and prepares a report based on the analyzed data. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 155 2.13.4 Analysis Path Framework Business Background Analysis Path Framework provides business users and managers an intuitive, easy to use analytical tool to perform interactive data explorations and drill-down analyses for root cause investigations. Key Features The following table explains the key features available: Key Feature Configure APF-based apps Execute APF-based apps Description You can use this feature to build and enhance interactive analytical web appli cations. APF-based apps enable the user to view and analyze the data of several Key Performance Indicators (KPIs) from different data sources. You can flexibly explore KPIs and their influencing factors step-by-step by drilling down into multidimensional visualizations of data, such as charts or tables. 2.13.5 Predictive Models Business Background Predictive models provide predictive capabilities to your business processes. These models use statistics to predict an unknown outcome, for example, using a predictive model you can forecast when a buyer is likely to negotiate a new procurement contract. Business cases requiring a predictive measure are described as predictive scenarios which manage the lifecycle of the predictive models included within them. You can create your own predictive use cases and scenarios as needed. Note Predictive models can only provide good predictions when trained properly. The models need to be trained with data where the outcome is known, for example, with historic data. You must retrain your model regularly to ensure predictions created are based on the most recent data. 156 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Key Features The following table explains the key features available: Key Feature Predictive models Predictive scenarios Use You can train the predictive models with data relevant for your enterprise. You can review training status and quality. You can activate or deactivate model versions. The active model version is the one used to create predictions for consumption in relevant apps. You can delete any inactive model version(s). Predictive scenarios manage the lifecycle of predictive models included within them. Predictive scenarios describe a predictive use case by defining a busi ness goal, the type of prediction to make, for example, regression or classification, and the data to use for the prediction. Predictive Scenarios are preconfigured by SAP S/4HANA. You can also build your own model then publish it as a new predictive scenario into SAP S/ 4HANA. 2.14 Enterprise Technology 2.14.1 Enterprise Information Management 2.14.1.1 Master Data Maintenance Business Background Master data represents the business data your company requires about individuals, organizations, or products. It remains unchanged over a long period of time and supports transactional processes. You can use Master Data Maintenance to maintain master data like products or business partners. Example: Example You can define business partners, for example employees, contingent workers, customers and suppliers, and you can define materials or services. Additionally, you can define relationships between the business partners and the materials or services. For example, information about a specific material and the supplier of this material is stored in a purchasing info record. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 157 The mass maintenance feature enables you to update multiple business partner and product master data records simultaneously. 2.14.2 Process Management and Integration 2.14.2.1 Responsibility Management Business Background You can manage the teams or team members associated with certain functions. These teams or team members can then be mapped as responsible for an activity type in a process step of a workflow scenario. For example, the activity type can be Approve or Notify, and so on. Key Features The following table explains the key features that are available: Key Feature Use Create, delete, copy, and edit teams You can create, delete, copy, and edit teams. Add a member to an existing team and de You can add a member to or delete a member from an existing team. lete one from it Add a function to an existing team mem ber or delete one from it You can add a function to or delete a function from an existing team member. 158 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management 2.14.3 Business Event Handling Business event handling enables applications, partners, and customers to consume events related to all S/ 4HANA business objects. Business Background Business event handling enables applications, partners, and customers to consume events related to all S/ 4HANA business objects. In addition, you can view and manage subscriptions, read outbound queues, and view business events. Key Features The following table explains the key features that are available: Key Feature View Subscription Manage Subscription Read Outbound Queue View Business Events Use You use this feature to view the existing subscriptions. A subscription is an en try that enables you to be notified about the changes that are made to the business objects. You use this feature to create, update, and delete already subscriptions. You use this feature to view the entries present in the outbound queue. New en tries are created in the outbound queue when the business objects are either created or changed. You use this feature to view the number of events that are raised for a particu lar business object. 2.14.4 SAP S/4HANA Output Control Business Background SAP S/4HANA output control enables business applications to define and trigger outgoing communication with business partners. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 159 Key Features The following table explains the key features available: Key Feature Output Channels Form Technologies Master Form Templates Email Templates Output Parameter Determination Manage Output Items Use Printer Email - allows flexible configuration of senders and recipients XML - integration with the Ariba Network IDoc - electronic data exchange with business partners PDF-based print forms with fragments (default) PDF-based print forms Smart Forms SAPscript Allow flexible branding of print forms by separating static layout parts such as header, footer, or logos from the application content. Allow predefining email subject and email body, including variables for dy namic content. Allows sending multiple messages to multiple recipients using multiple chan nels at the same time. Flexible definition of business rules without the need for implementation. Easily extensible with SAP standard fileds and customer fields. Central overview of outputs sent via various channels and their status. View and process multiple outputs at the same time. 2.15 Country/Region-Specific Features in SAP S/4HANA Enterprise Management This section lists and explains the key features for each country/region, covering localized features and the general feature(s) for which localization extension is provided. 2.15.1 Americas Key Features The following tables contain the key features for the countries in Americas. 160 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Argentina Cross Features Business Area Cross Feature Key Feature Use Official Document Numbering Process document numbering according to legal requirements for outgoing documents. Manage print authorization codes. Finance Business Area Key Feature Accounts Payable and Accounts Receivable Master Data Payables Management Receivables Management Withholding Tax Cash General Ledger Tax Account Balancing Journal VAT Reporting Tax Reporting Use Update customer and vendor master data according to legal re quirements. Calculate withholding taxes in payments and generate payment notice. Generate payment notice and post debit/credit memos. Update vendor master data with withholding tax exemptions and run reports with withholding tax and perceptions. Create withholding tax certificates. Post withholding tax. Manage daily report for bank and cash accounts. Run general ledger document journal and credit invoice list. Process daily value-added tax (VAT) report. Tax reporting (magnetic media): Generate magnetic files: elec tronic duplication, purchases and sales information regime and perception, and withholding taxes. Sales Business Area Billing and Invoicing Key Feature Master Data Use Maintain customer master data. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 161 Brazil Finance Business Area Key Feature Accounts Payable and Accounts Receivable Withholding Tax Cash Banks and House Banks Bank Statement Payment Format Tax Tax Calculation Use Withholding tax calculation with standard functionality for INSS and IRRF and Condition-Based Tax for PIS, COFINS, and CSLL.. Process localized bank master data. Process bank files in required formats (Febraban, Itaú, and Bra desco). Process payment forms for the processes of payments using Credit on Account, Check, Payment Order, DOC, TED; Payment of boletos, Collection (Boleto) and DDA. Calculate taxes according to regulations and business practices specific to Brazil. Sales Business Area Key Feature Use Billing and Invoicing Nota Fiscal Electronic Nota Fiscal Electronic Conhecimento de Transporte Create and process outgoing Notas Fiscais (NF), electronic No tas Fiscas (NF-e) and electronic Conhecimentos de Transporte (CT-e), and electronic Correction Letter. Sales Master Data Man Customer Material Info Record Maintain the record of the material according to the material agement data provided by your customer. Sales Contract Manage ment Contract Processing Customer Scheduling Agree ment Process a contract with your customer. Process a scheduling agreement for your customer. 162 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Business Area Key Feature Sales Order Manage ment and Processing Sales Order Processing Inquiry Processing Query Procesing Use Process sales orders taking into account industrialization, re sale, consumption/asset, and services requirements. In addi tion, the following processes are supported. Future Delivery Consignment stock Third party direct ship, including Triangular Operation with Third Party Sales Returnable Package Return Price and Taxes Complementar Credit Note Create a sales inquiry from your customer, such as quotations or sales information without obligation. Create, change, or display a quotation for your customers. Source and Procurement Business Area Sourcing Invoice Management Key Feature Use Purchase Info Record Maintain the record about a specific material and its supplier. Purchase Requisition Creation Create purchase requisitions and manage the approval of pur and Approval chase requisitions. Purchase Order Processing Enables you to carry out localized processes for Brazil, such as: Normal Purchasing Credit Memo (Return) Subcontracting Future Delivery Consignment Returnable Package Triangular Operation: Service Freight Contract Create a purchasing contract with a vendor. Scheduling Agreement A scheduling agreement can be created when a material is regu larly requested and provided in accordance with a delivery schedule dates. Supplier Invoice Verification Process the verification of the invoice receipt for electronic No tas Fiscais (Nf-e) including NF-e Complementar and Conheci mentos de Transporte eletrônicos (CT-e). SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 163 Supply Chain Business Area Goods Issue Goods Receipt Key Feature Use Outbound Delivery Processing Enable you to post a goods issue integrated with Nota Fiscal is suing. Posting Goods Receipt Enable you to post a goods receipt integrated with Nota Fiscal posting. Canada Finance Business Area Key Feature Use Chile Cross Features Business Area Cross Feature Key Feature Electronic Document Use Enable the processing of electronic documents by doing the fol lowing: Extracting the relevant data from documents created on source applications. Monitoring the process steps related to electronic docu ment preparation. Monitoring the process steps related to electronic docu ment submission by a custom solution for the outgoing in voicing process. Note To realize the end-to-end processing of electronic docu ments, you can integrate other SAP products. These prod ucts might require additional licenses. For more informa tion, see Document Compliance [page 237]. Business Place Manage the activation of business place. Official Document Numbering Number outgoing documents according to your requirements. 164 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Business Area Key Feature Pre-Numbered Invoices Use Prepare reports on sheets of pre-numbered papers numbered consecutively. Finance Business Area Key Feature Accounts Payable and Accounts Receivable VAT Withholding Tax Inflation Management Asset Management Inflation Management Cash Cash Desk Inflation Management General Ledger Financial Statement Journal Inflation Accounting Tax Master Data Trial Balance Inflation Management VAT Reporting Use Use tax numbers. Process withholding tax report in accounts payable. Inflation adjustment of open items. Revaluate assets. Prepare cash journal. Inflation management of G/L accounts. File a balance sheet for tax purposes (balance tributario) in the prescribed format at the end of each fiscal year. Process a daily journal for all accounting documents relating to your operating activities in chronological order. Make settings for localized master data. Prepare trial balance and line items in general ledger. Replacement of cost valuation. Prepare sales and purchases ledger. Supply Chain Business Area Goods Issue Goods Receipt Key Feature Use Outbound Delivery Processing Enable you to post a goods issue integrated with electronic documents. Posting Goods Receipt Enable you to post a goods receipt integrated with electronic documents. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 165 Colombia Cross Features Business Area Cross Feature Key Feature Electronic Document Use Enable the processing of electronic documents by doing the fol lowing: Extracting the relevant data from documents created on source applications. Monitoring the process steps related to electronic docu ment preparation. Note To realize the end-to-end processing of electronic docu ments, you can integrate other SAP products. These prod ucts might require additional licenses. For more informa tion, see Document Compliance [page 237]. Finance Business Area Key Feature Accounts Payable and Accounts Receivable Withholding Tax General Ledger Postings and Documents Use Process generic withholding tax reporting and monthly free lance data. Manage year-end postings in general ledger account balance. Mexico Cross Features Business Area Cross Feature Key Feature Use Official Document Numbering Number outgoing documents according to your requirements. 166 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Business Area Key Feature Electronic Document Finance Business Area Key Feature Accounts Payable and Accounts Receivable Ledger Withholding Tax General Ledger Audit Files Journal Tax Deferred Tax VAT VAT Reporting Use Enable the processing of electronic documents by doing the fol lowing: Extracting the relevant data from documents created on source applications. Monitoring the process steps related to electronic docu ment preparation. Monitoring the process steps related to electronic docu ment submission by a custom solution for the outgoing in voicing process. Note To realize the end-to-end processing of electronic docu ments, you can integrate other SAP products. These prod ucts might require additional licenses. For more informa tion, see Document Compliance [page 237]. Use Prepare a list of your top customers. Process generic withholding tax reporting. Generate files for auxiliary and electronic accounting. Manage localized journal entries. Process deferred tax transfer and certificates. Use tax numbers. Prepare tax reports for sales and purchases. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 167 Peru Cross Features Business Area Cross Feature Key Feature Electronic Document Use Enable the processing of electronic documents by doing the fol lowing: Extracting the relevant data from documents created on source applications. Monitoring the process steps related to electronic docu ment preparation. Monitoring the process steps related to electronic docu ment submission by a custom solution for the outgoing in voicing process. Note To realize the end-to-end processing of electronic docu ments, you can integrate other SAP products. These prod ucts might require additional licenses. For more informa tion, see Document Compliance [page 237]. Official Document Numbering Number outgoing documents according to your requirements. Pre-Numbered Invoices Prepare reports on sheets of pre-numbered papers numbered consecutively. Finance Business Area Key Feature Accounts Payable and Accounts Receivable VAT Withholding Tax Cash Cash Desk General Ledger Tax Ledger VAT VAT Reporting Use Use tax numbers. Process withholding tax report and certificate in accounts paya ble. Process cash journal according to the local standard best practi ces. Manage general ledger and journal ledger reporting. Use tax numbers. Process sales and purchases ledger reporting. 168 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management United States of America Finance Business Area Key Feature Accounts Payable and Accounts Receivable Receivables Management Withholding Tax Tax Tax Reporting Use Generation of Print Form 1099-C (Cancellation of Debt IRS.gov). Generic Withholding Tax Report is used to generate the relevant print and file output of the following IRS forms: Form 1099-MISC (Miscellaneous Income IRS.gov) Form 1099-G (Certain Government Payments IRS.gov) Form 1099-INT (Interest Income IRS.gov) Form 1099-K (Payment Card and Third Party Network Transactions IRS.gov) Form 1042-S (Chapter 3 only Foreign Person's U.S. Source In come Subject to Withholding IRS.gov). Display of tax information for Sales and Use Tax. Venezuela Cross Features Business Area Cross Feature Key Feature Business Place Official Document Numbering Use Manage the activation of business place. Number outgoing documents accord ing to your requirements. Finance Business Area Key Feature Accounts Payable and Accounts Receivable Withholding Tax Inflation Management Asset Accounting Inflation Management Inventory Accounting Inflation Management Use Manage generic withholding tax reporting and maintain with holding tax details. Inflation adjustment of open items. Revaluate assets. Replacement of cost valuation. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 169 Business Area General Ledger Tax Key Feature Inflation Management VAT VAT Reporting Use Inflation management of G/L accounts. Use tax numbers. Process sales and purchases ledger reporting. 2.15.2 Europe Key Features The following tables contain the key features for the countries in Europe. Austria Cross Features Business Area Cross Feature Key Feature Electronic Document Use Enable the processing of electronic documents by doing the fol lowing: Extracting the relevant data from documents created on source applications. Monitoring the process steps related to electronic docu ment preparation. Note To realize the end-to-end processing of electronic docu ments, you can integrate other SAP products. These prod ucts might require additional licenses. For more informa tion, see Document Compliance [page 237]. Finance Business Area Asset Accounting Key Feature Closing Operations and Re porting Use Manage asset history sheet. 170 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Business Area General Ledger Tax Key Feature Closing Operations and Re porting Financial Statement VAT: EC Sales List VAT Reporting Use Collect and prepare data for Balance of Payments. Manage annual financial statement. Process EC sales list. Generate XML files for periodic VAT returns. Belgium Cross Features Business Area Cross Feature Key Feature Electronic Document Use Enable the processing of electronic documents by doing the fol lowing: Extracting the relevant data from documents created on source applications. Monitoring the process steps related to electronic docu ment preparation. Note To realize the end-to-end processing of electronic docu ments, you can integrate other SAP products. These prod ucts might require additional licenses. For more informa tion, see Document Compliance [page 237]. Finance Business Area Key Feature Accounts Payable and Accounts Receivable Withholding Tax General Ledger Closing Operations and Re porting Tax VAT: EC Sales List VAT Reporting Use Report withholding tax. Collect and prepare data for Balance of Payments Create an EC sales list in XML format. Generate XML files for periodic VAT returns and annual sales listings. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 171 Bulgaria Finance Business Area Asset Accounting General Ledger Tax Key Feature Closing Operations and Re porting Depreciation Trial Balance Closing Operations and Re porting Deferred Tax Tax Invoice VAT Reporting Use Manage fixed assets reporting. Influence the line values calculated on the asset level in the vari ous depreciation reports. Prepare a material trial balance. Additionally, you can also rec oncile G/L account balances on material accounts with total value on material level. Process cash flow statement. Transfer the tax from the deferred tax account to the normal tax account. Print out VAT protocol in the form as required by the tax authori ties. Prepare tax return in the form as required by the tax authorities. Prepare VIES declaration as part of the monthly VAT submis sion. Croatia Cross Features Business Area Cross Feature Cross Feature Key Feature Use Official Document Numbering Number outgoing documents according to your requirements. Electronic Document Enable the processing of electronic documents by doing the fol lowing: Extracting the relevant data from documents created on source applications. Monitoring the process steps related to electronic docu ment preparation. Monitoring the process steps related to electronic docu ment submission by a custom solution for the outgoing in voicing process. 172 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Finance Business Area Accounts Receivable Key Feature Overdue Receivables General Ledger Trial Balance Tax VAT VAT: EC Sales List VAT Reporting Use Generate quarterly statistical report and submit it in the elec tronic format. Prepare a list of G/L account balances and line items in accord ance with legal requirements. Generate the report for all domestic deliveries with the tax obli gation transfer. Create the EC Sales List for tax reporting. Generate XML files for periodic VAT returns. Sales Business Area Billing and Invoicing Key Feature Use Governmental Document Vali Handle fiscal numbering of invoices and communicate details of dation all cash transactions to the tax authorities. Czech Republic Cross Features Business Area Cross Feature Key Feature Electronic Document Finance Business Area Cash Key Feature Cash Desk Use Enable the processing of electronic documents by doing the fol lowing: Extracting the relevant data from documents created on source applications. Monitoring the process steps related to electronic docu ment preparation. Monitoring the process steps related to electronic docu ment submission by a custom solution for the outgoing in voicing process Use Process cash journal by handling cash receipts. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 173 Business Area General Ledger Tax Key Feature Postings and Documents VAT: EC Sales List VAT Reporting Use Enables you to create postings for year-end closing of profit and loss statements as well as the opening and closing balance sheet accounts. Generates a list that contains information on all tax-free goods deliveries and goods movements to registered companies within the EU. Prepare and process VAT return, VAT ledger statement and the EC sales list (DMEE). Denmark Cross Features Business Area Cross Feature Key Feature Electronic Document Finance Business Area Cash Key Feature Payment Format Use Enable the processing of electronic documents by doing the fol lowing: Extracting the relevant data from documents created on source applications. Monitoring the process steps related to electronic docu ment preparation. Note To realize the end-to-end processing of electronic docu ments, you can integrate other SAP products. These prod ucts might require additional licenses. For more informa tion, see Document Compliance [page 237]. Use Create a payment format for domestic and foreign payments, and direct debit. 174 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Estonia Finance Business Area Cash General Ledger Tax Key Feature Cash Desk Financial Statement Corporate Income Tax VAT Reporting Use Process localized cash journal functions by entering incoming and outgoing payments. You can post incoming and outgoing cash payments to a customized G/L account, and print the cash vouchers. Process financial statement (balance sheet and profit and loss statement). Manage the calculation and display of social tax amounts and income tax amounts. Prepare and process value-added tax return. Finland Finance Business Area Cash Tax Key Feature Payment Format VAT Reporting Use Create a payment format for SEPA and cross border payments. Generate files for periodic VAT returns. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 175 France Cross Features Business Area Cross Feature Key Feature Electronic Document Use Enable the processing of electronic documents by doing the fol lowing: Extracting the relevant data from documents created on source applications. Monitoring the process steps related to electronic docu ment preparation. Monitoring the process steps related to electronic docu ment submission by a custom solution for the outgoing in voicing process. Finance Business Area Key Feature Accounts Payable and Accounts Receivable Withholding Tax General Ledger Closing Operations and Re porting Tax Calculate Pro Rata VAT VAT: EC Sales List VAT Reporting Use Report withholding tax. Collect and prepare data for Balance of Payments. Enables you to generate VAT returns in an electronic format and submit it to the tax authorities on a regular basis. Generate a list that contains information on all tax-free goods deliveries and goods movements to registered companies within the EU. Prepare periodic VAT returns. 176 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Germany Cross Features Business Area Cross Feature Key Feature Electronic Document Finance Business Area Key Feature Accounts Payable and Accounts Receivable Withholding Tax Tax EC Sales List Tax Returns VAT Reporting Use Enable the processing of electronic documents by doing the fol lowing: Extracting the relevant data from documents created on source applications. Monitoring the process steps related to electronic docu ment preparation. Note To realize the end-to-end processing of electronic docu ments, you can integrate other SAP products. These prod ucts might require additional licenses. For more informa tion, see Document Compliance [page 237]. Use Process withholding tax return. Perform and submit EC Sales List. Perform and submit Electronic Advance Tax Returns. Prepare periodic VAT returns and review G/L Account informa tion. Greece Cross Features Business Area Cross Feature Key Feature Use Official Document Numbering Number outgoing documents according to your requirements. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 177 Business Area Cross Feature Key Feature Electronic Document Use Enable the processing of electronic documents by doing the fol lowing: Extracting the relevant data from documents created on source applications. Monitoring the process steps related to electronic docu ment preparation. Note To realize the end-to-end processing of electronic docu ments, you can integrate other SAP products. These prod ucts might require additional licenses. For more informa tion, see Document Compliance [page 237]. Finance Business Area Key Feature Use Accounts Payable and Accounts Receivable Bill of Exchange Maintain transaction records involving bills of exchange and postdated checks. Check Create and print G/L account cheques. Digital Signature Provides you the tool to sign and approve digital data. Ledger Displays line items per vendor/customer/business partner. Official Documents Generate a printout of the document (referred to as FISA), that you attach to the original document at the time of filing. Payables Management Display the year-end balance of each vendor along with the valu ated total for each vendor. Receivables Management Display line items for all customer account postings as well as special G/L transactions. Trial Balance Display the period balances for all customer and vendor ac counts. Asset Accounting Closing Operations and Re porting Manage investment support for assets and fixed asset register. General Ledger Clearing Automatically transfers open items of the 3201 account type to the respective accounts. Additionally, you can also perform auto matic clearing of these line items. Closing Operations and Re porting Enables you to customize the company code address data and the way this data appears in the header of the legal books. 178 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Business Area Tax Key Feature Journal Ledger Official Documents Parallel Ledger Postings and Documents Purchasing Trial Balance Audit Files Deferred Tax VAT VAT Reporting Use Process all FI postings of a specific posting date range. Process line items for all posting accounts. Generates a printout of the document (referred to as FISA), that you attach to the original document at the time of filing. Defines the intermediate account used by A/L for groups of G/L accounts, which is then used for postings. Enables change validation of the posting date Enables activation of the purchasing account by searching for source document types in order to make the necessary postings. Displays the period balances for all G/L accounts. Submit customer and vendor information to KEPYO at regular in tervals. Transfer the tax from the deferred tax account to the normal tax account. Generate VAT returns in an electronic format and submit it to the tax authorities on a regular basis. Prepare tax return in the form as required by the tax authorities. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 179 Hungary Cross Features Business Area Cross Features Key Feature Electronic Document Use Enable the processing of electronic documents by doing the fol lowing: Extracting the relevant data from documents created on source applications. Monitoring the process steps related to electronic docu ment submission by a custom solution for the transport registration process. Note To realize the end-to-end processing of electronic docu ments, you can integrate other SAP products. These prod ucts might require additional licenses. For more informa tion, see Document Compliance [page 237]. Finance Business Area Key Feature Use Accounts Payable and Accounts Receivable Payment Format Create a payment file for domestic payments in the format de fined by the clearing bank. Posting Business Transactions Process entering vendor invoices and payments. Bank Applications Loans Process interest suspension functions, debt transfer functions, itemized commitment and off-balance posting of contract amounts. Cash Cash Desk Process exchange rate calculation for outgoing payments. General Ledger Audit Files Prepare an XML file containing a comprehensive list of issued in voices. Tax Deferred Tax Process deferred tax. VAT Generate VAT returns in the required format and submit it to the tax authorities on a regular basis. VAT: EC Sales List Process EU sales and purchases list in XML file format. VAT Reporting Prepare tax return in the form as required by the tax authorities. Prepare domestic sales and purchases list. 180 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Ireland Cross Features Business Area Cross Feature Key Feature Electronic Document Finance Business Area Key Feature Accounts Payable and Accounts Receivable Master Data Withholding Tax Tax VAT Use Enable the processing of electronic documents by doing the fol lowing: Extracting the relevant data from documents created on source applications. Monitoring the process steps related to electronic docu ment preparation. Note To realize the end-to-end processing of electronic docu ments, you can integrate other SAP products. These prod ucts might require additional licenses. For more informa tion, see Document Compliance [page 237]. Use Provides information about individuals, organizations, or prod ucts that is used regularly and in a consistent manner. Calculate and report withholding tax. Generate VAT returns in an electronic format and submit it to the tax authorities on a regular basis. Italy Cross Features Business Area Cross Features Key Feature Use Official Document Numbering Number outgoing documents according to your requirements. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 181 Business Area Key Feature Electronic Document Use Enable the processing of electronic documents by doing the fol lowing: Extracting the relevant data from documents created on source applications. Monitoring the process steps related to electronic docu ment submission by a custom solution for the B2G outgo ing invoicing process. Note To realize the end-to-end processing of electronic docu ments, you can integrate other SAP products. These prod ucts might require additional licenses. For more informa tion, see Document Compliance [page 237]. Finance Business Area Key Feature Use Accounts Payable and Accounts Receivable Bill of Exchange Closing Operations and Re porting Withholding Tax Asset Accounting Depreciation Cash Payment Format General Ledger Postings and Documents Tax Deferred Tax VAT VAT Reporting Post bills of exchange presentation document. Reevaluate current assets and liabilities in foreign currency. You then post the reevaluation differences to the relevant accounts. Report withholding tax. Compare an asset depreciation over two depreciation areas. Create an EC sales list in DME format. Generate year-end profit and loss statement postings, and closes the balance sheet accounts and carries forward their bal ances into the new fiscal year. Transfer the tax from the deferred tax account to the normal tax account. For sales made to public institutions, the tax authori ties grant extension of time to remit the tax payable. Calculate Pro-Rata VAT. Prepare periodic VAT returns, generate files containing transac tions with customers and vendors. 182 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Kazakhstan Cross-Features Business Area Cross-Features Finance Business Area Cash General Ledger Tax Key Feature Use Trade Expense Management Electronic Documents Generate Import taxes declaration (form 320.00) in XML file format. Generate Customs Union's Import claim (form 328.00) in both PDF and XML file formats. Enable the processing of electronic documents by doing the fol lowing: Extracting the relevant data from documents created on source applications. Monitoring the process steps related to electronic docu ment preparation. Monitoring the process steps related to electronic docu ment submission by a custom solution for the outgoing in voicing process. Key Feature Cash Desk Financial Statement Corporate Income Tax Tax Invoice Property Tax Transport Tax VAT Reporting Use Print cash journal, cash book and incoming/outgoing cash vouchers. Generate financial statements (balance, profit and loss state ment, cash flow reports) in PDF format in accordance with the legal requirements. Subsoil use contracts split accounting functionality for the cor porate income tax calculation purposes. Printing an outgoing invoice and an act of acceptance of works performed. Invoice journal for issued and received invoices. Di rect exchange with web services of the Electronic Invoices Infor mation System (EIIS). Calculate property tax in accordance with legal requirements. Calculate transport tax in accordance with legal requirements. Generate VAT declaration in XML file format. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 183 Supply Chain Business Area Key Feature Inventory Management Output processing Use Allows the printing of forms required for goods acceptance, in ternal goods movement and goods issue processes. Latvia Cross Features Business Area Cross Feature Key Feature Use Official Document Numbering Number outgoing documents according to your requirements. Finance Business Area Key Feature Accounts Payable and Accounts Receivable Bank Statement Cash Bank Statement Cash Desk Tax VAT VAT Reporting Use Import an electronic bank statement to clear outstanding ac counts receivable and payable. Convert the bank statement file to MT940 with field86 struc tured format. Generate legal forms of incoming and outgoing payments. Generate VAT returns in an electronic format and submit it to the tax authorities on a regular basis. Prepare tax return in the form as required by the tax authorities. Lithuania Finance Business Area Key Feature Accounts Payable and Accounts Receivable Closing Operations and Re porting Tax VAT: EC Sales List Use Create a register that contains a list of all customer and vendor invoices. Generate a list that contains information on all tax-free goods deliveries and goods movements to registered companies within the EU. 184 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Luxembourg Cross Features Business Area Cross Feature Key Feature Electronic Document Use Enable the processing of electronic documents by doing the fol lowing: Extracting the relevant data from documents created on source applications. Monitoring the process steps related to electronic docu ment preparation. Note To realize the end-to-end processing of electronic docu ments, you can integrate other SAP products. These prod ucts might require additional licenses. For more informa tion, see Document Compliance [page 237]. Finance Business Area General Ledger Tax Key Feature Closing Operations and Re porting Financial Statement Audit Files VAT: EC Sales List VAT Reporting Use Collect and prepare data for Balance of Payments. Generate financial statements. Generate a SAF-T file in a format as required by the tax authori ties. Generate a list that contains information on all tax-free goods deliveries and goods movements to registered companies within the EU Generate XML files for periodic VAT returns. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 185 Netherlands Cross Features Business Area Cross Feature Key Feature Electronic Document Use Enable the processing of electronic documents by doing the fol lowing: Extracting the relevant data from documents created on source applications. Monitoring the process steps related to electronic docu ment preparation. Note To realize the end-to-end processing of electronic docu ments, you can integrate other SAP products. These prod ucts might require additional licenses. For more informa tion, see Document Compliance [page 237]. Finance Business Area Key Feature Use Accounts Receivable Tax Periodic Activities and Closing Determines how the compensation for the collection of overdue Operations payments (dunning charges) is calculated. VAT Reporting Prepare VAT returns and EC sales lists in the form as required by the tax authorities. 186 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Norway Cross Features Business Area Cross Feature Key Feature Electronic Document Finance Business Area Key Feature Accounts Payable and Accounts Receivable Trial Balance Cash Payment Format General Ledger Trial Balance Use Enable the processing of electronic documents by doing the fol lowing: Extracting the relevant data from documents created on source applications. Monitoring the process steps related to electronic docu ment preparation. Note To realize the end-to-end processing of electronic docu ments, you can integrate other SAP products. These prod ucts might require additional licenses. For more informa tion, see Document Compliance [page 237]. Use List the opening and closing balance of each vendor/customer in accordance with legal requirements. Make domestic and foreign payments by bank transfer in Tele pay, BBS, and DATADIALOG format. Display G/L accounts with opening/closing balances and line items. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 187 Poland Cross Features Business Area Cross Feature Key Feature Electronic Document Use Enable the processing of electronic documents by doing the fol lowing: Extracting the relevant data from documents created on source applications. Monitoring the process steps related to electronic docu ment preparation. Note To realize the end-to-end processing of electronic docu ments, you can integrate other SAP products. These prod ucts might require additional licenses. For more informa tion, see Document Compliance [page 237]. Finance Business Area Key Feature Use Accounts Payable and Accounts Receivable Monitoring of Receivables Generate a list of all customer invoices and vendor invoices that are not settled within their payment due date. Trial Balance Prepare a statement of your accounts payable and receivable in accordance with legal requirements. VAT Prepare VAT registers in accordance with the legal require ments. VAT Date Indicates the tax reporting date in the document header. The relevant reports collect documents based on this date. Asset Accounting Closing Operations and Re porting Prepare a list of assets in accordance with the legal require ments. Cash Payment Format Use domestic bank transfer file format (Elixir-0). Valuation Manage foreign currency valuation of cash account balances. General Ledger Ledger Prepare a list of G/L account balances and line items in accord ance with the legal requirements. Inventory Accounting Periodic Valuation of Material Prepare turnover of the appropriate material account. Inventories 188 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Business Area Tax Key Feature Tax Invoice VAT VAT: EC Sales List Use Generate and print internal invoices that contain the required VAT data. Process acquisition tax accruals. Manage reverse charge form for normal and correction runs. Generate a list that contains information on all tax-free goods deliveries and goods movements to registered companies within the EU. Portugal Cross Features Business Area Cross Feature Key Feature Electronic Document Use Enable the processing of electronic documents by doing the fol lowing: Extracting the relevant data from documents created on source applications. Monitoring the process steps related to electronic docu ment preparation. Note To realize the end-to-end processing of electronic docu ments, you can integrate other SAP products. These prod ucts might require additional licenses. For more informa tion, see Document Compliance [page 237]. Finance Business Area Key Feature Accounts Payable and Accounts Receivable Withholding Tax Asset Accounting Closing Operations and Re porting Use Manage generic withholding tax reporting. Manage asset reporting, revaluation areas/classes/exceptions, and currency revaluation. Use the Mapas Fiscais to retrieve de tails of assets in your company and print these details on forms specified by the tax authorities in Portugal. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 189 Business Area General Ledger Tax Public Sector Funds Management Key Feature Use Closing Operations and Re porting Process balance of payments using central bank reporting, and SCB indicator assignments. Audit Files Prepare and process standard audit file for tax purposes (SAFT). Tax Invoice Customer master data validations (VAT number cannot be changed after digitally signed documents are posted). VAT Apply pro-rata VAT method in order to determine tax deduction. VAT Reporting Prepare and process input tax refund, annual sales return to tax office, advance return for tax on sales/purchases. Payment Authorization Pro posal Create and process Payment Authorization Proposals. Credit Release Request Authorize and release funds. Monthly Budget Carry out Budget Postings, Release Monthly Budget and Ad vance Monthly Budget. Project System Integration Funds Management / Project System integrations for the proc essing of contracts. Materials Management Inte gration Funds Management / Materials Management integrations for the processing of purchase orders and invoice verifications. Romania Finance Business Area Asset Accounting Cash General Ledger Key Feature Closing Operations and Re porting Cash Desk Payment Format Financial Statement Journal Use Process asset chart and asset history, asset revaluation. Process cash journal. Print petty cash receipt. Make bank transfer payments. Prepare and process financial statement - for example, balance sheet and profit and loss statement. Process documents journal. 190 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Business Area Tax Key Feature Use Ledger Process general ledger and account card for miscellaneous op erations with corresponding accounts. Trial Balance Process general ledger account balance. VAT Manage tax code procedures, process tax code assignments for normal/deferred tax system. Apply pro-rata VAT method in or der to determine tax deduction if is the case. VAT: EC Sales and Purchases List Process VIES 390, declaration (XML file). VAT Reporting Prepare and process advance return for tax on sales/purchases for normal and deferred tax system. Manage VAT declarations XML file (VAT 300, VIES 394). Russia Cross Features Business Area Cross-Features Key Feature Use Trade Expense Management Generate import customs declarations, record and track their numbers when the company sells imported goods. Generate export customs declarations. Calculate and post customs fees and duties, if relevant. Generate goods import declarations for importing goods from the countries of the Eurasian Economic Union. Perform currency control during currency transactions with foreign companies: generate deal passports, create supporting document statements and currency transac tion statements, keep track of the status of payments and shipments with foreign companies. Finance Business Area Key Feature Accounts Payable and Accounts Receivable Postings and Documents Closing Operations and Re porting Use Manage contract accounting and automatic contract filling, process documents with negative postings. Manage automatic clearing. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 191 Business Area Asset Accounting Cash General Ledger Tax Key Feature Payables Management Receivables Management Transfer Pricing Trial Balance Closing Operations and Re porting Depreciation Master Data Cash Desk Closing Operations and Re porting Offset Accounting Corporate Income Tax Tax Invoice Property Tax Transport Tax VAT VAT Reporting Use Accounting of down payments, payments analysis, process electronic invoices, delivery and acceptance documents. Accounting of down payments, payments analysis, process electronic invoices, delivery and acceptance documents. Process transfer pricing to evaluate the transfer of goods or services between dependently operating companies. Manage customer and vendor turnover balance and intercom pany balance reconciliation. Process inventory reports and asset revaluation. Calculate and process depreciation and depreciation bonus. Make settings for localization data used in property and trans port tax calculation. Process cash journal and print cash documents. Process balance sheet, profit and loss statement, cash flow statement and foreign currency valuation report. Process offsetting account determination. Process profit tax reports. Issue paper and electronic invoices, including corrective and re vised invoices. Calculate the tax amount and prepare tax return for property tax. Calculate the tax amounts and prepare the tax return for trans port tax. Separate VAT, deferred tax and VAT for goods in transit. Process sales and purchases ledger, invoice journal, inquiries from tax authorities and prepare VAT return. 192 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Supply Chain Business Area Key Feature Inventory Management Physical Inventory Output Processing Sales Business Area Billing and Invoicing Key Feature Billing Use Carry out the physical inventory for material stocks. Offset stock surpluses against stock shortages that have been found during physical inventory. Prepare a list of stock on hand at the beginning and end of each period, showing the value of the stock as well as its quantity. Allows the printing of forms required for physical inventory. Allows the printing of forms required for goods acceptance, in ternal goods movement and goods issue processes. Use Allows the printing of invoices. Serbia Finance Business Area Key Feature Use Accounts Payable and Accounts Receivable Trade Expense Management Process customs declaration. Asset Accounting Depreciation Process tax depreciation. Cash Bank Statement Convert Halcom to MultiCash format. Payment Format Create and export predefined TXT file with payment data re quired for e-banking program. General Ledger Financial Statement Prepare and process financial statement. Ledger Prepare general ledger for postings, as well as calculated and deducted VAT in predefined electronic format. Tax VAT Reporting Prepare tax return in the form as required by the tax authorities. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 193 Slovakia Finance Business Area Key Feature Accounts Payable and Accounts Receivable Master Data Asset Accounting Depreciation Cash Bank Statement General Ledger Financial Statement Closing Operations and Re porting Tax Deferred tax VAT VAT Reporting Use VAT cash accounting. Accelerated depreciation method. Derivation of external transactions from payment symbols. Enables you to create postings for year-end closing of profit and loss statements as well as the opening and closing balance sheet accounts. Process cash flow statement. Manage deferred tax transfer and the analysis of deferred tax accounts. Create and reverse acquisition tax accruals. Prepare and process VAT return, VAT ledger statement and the EC sales list (DMEE). Slovenia Cross Features Business Area Cross Features Key Feature Use Official Document Numbering Number outgoing documents according to your requirements. Electronic Document Enable the processing of electronic documents by doing the fol lowing: Extracting the relevant data from documents created on source applications. Monitoring the process steps related to electronic docu ment preparation. Monitoring the process steps related to electronic docu ment submission by a custom solution for the outgoing in voicing process. 194 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Finance Business Area Key Feature Use Accounts Payable and VAT Accounts Receivable Cash Bank Statement Payment Format General Ledger Closing Operations and Re porting Ledger Tax Audit Files VAT VAT: EC Sales List VAT Reporting Manage accounting document validation. Manage bank statements in various formats. Create and adjust payment medium formats. Mange statistical reporting to create period reports SKV, BST and SFR for The Bank of Slovenia and The Agency of the Repub lic of Slovenia for Public Legal Records and Related Services (AJPES). Prepare a list of G/L account balances and line items in accord ance with the legal requirements. Generate tax books and list of invoices paid in cash or by credit cards in a format as required by the tax authorities. Create and reverse acquisition tax accrual. Tax reporting date in the document header. The relevant reports collect documents based on this date. Create the EC Sales List for tax reporting. Prepare form DDV-O for reporting. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 195 Spain Cross Features Business Area Cross Features Key Feature Electronic Document Finance Business Area Key Feature Accounts Payable and Accounts Receivable Master Data Withholding Tax Cash Tax Payment Format Deferred Tax VAT VAT: EC Sales List VAT Reporting Use Enable the processing of electronic documents by doing the fol lowing: Extracting the relevant data from documents created on source applications. Monitoring the process steps related to electronic docu ment preparation. Monitoring the process steps related to electronic docu ment submission by a custom solution for the outgoing B2G invoicing process. Note To realize the end-to-end processing of electronic docu ments, you can integrate other SAP products. These prod ucts might require additional licenses. For more informa tion, see Document Compliance [page 237]. Use VAT cash accounting. Prepare statements of the withholding tax that you have col lected on behalf of your vendors. You can collect tax on a variety of expenditures, in accordance with Spanish law. Print checks according to the Spanish standards (SAPscript form F110_ES_CHEQUE). Manage deferred tax transfer and the analysis of deferred tax accounts. Apply pro-rata VAT method in order to determine tax deduction. Process EC sales list for Spain. Prepare periodic VAT returns, annual declaration of transactions with 3rd party (form 347) and VAT registers (form 340). 196 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Sweden Cross Features Business Area Cross Feature Key Feature Electronic Document Finance Business Area Cash Key Feature Payment Format Use Enable the processing of electronic documents by doing the fol lowing: Extracting the relevant data from documents created on source applications. Monitoring the process steps related to electronic docu ment preparation. Note To realize the end-to-end processing of electronic docu ments, you can integrate other SAP products. These prod ucts might require additional licenses. For more informa tion, see Document Compliance [page 237]. Use Convert bank statement into MultiCash format. Switzerland Finance Business Area Accounts Payable Cash General Ledger Tax Key Feature Payment Reference Bank Account Master Data Bank Statement Closing Operations and Re porting VAT Reporting Use Process ISR procedure which is a payment in procedure offered by the Swiss Postal Service to firms based in Switzerland. ISR subscribers are given an ISR number in the business partner master record. Maintain bank master data and outline the factors you should consider when transferring bank master data automatically. Convert bank statements into MultiCash format. Collect and prepare data for Balance of Payments. Prepare periodic VAT returns. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 197 Turkey Cross Features Business Area Cross Feature Key Feature Use Official Document Numbering Number outgoing documents according to your requirements. Electronic Document Enable the processing of electronic documents by doing the fol lowing: Extracting the relevant data from documents created on source applications. Monitoring the process steps related to electronic docu ment preparation. Monitoring the process steps related to electronic docu ment submission by a custom solution for the outgoing in voicing process. Note To realize the end-to-end processing of electronic docu ments, you can integrate other SAP products. These prod ucts might require additional licenses. For more informa tion, see Document Compliance [page 237]. Finance Business Area Key Feature Accounts Payable and Accounts Receivable Bill of Exchange Asset Accounting Inflation Management General Ledger Tax Journal Ledger VAT Reporting Use Process bills of exchange and checks as forms of payment. You can record, store, and use them according to local legal and business requirements. Manage inflation accounting by revaluating various assets (and their depreciation) for inflation. Process document journal. Process general ledger from document file. Process sales ledger and purchases ledger. 198 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Ukraine Finance Business Area Key Feature Use Accounts Payable and Accounts Receivable Closing Operations and Re porting Master Data Payables Management Postings and Documents Receivables Management Transfer Pricing Asset Accounting Trial Balance Closing Operations and Re porting Cash General Ledger Tax Master Data Cash Desk Financial Statement Offset Accounting Corporate Income Tax Tax Invoice Clear reversed invoice items. Manage automatic clearing. Manage customer and vendor tax data on a time basis. Accounting of down payments in foreign currency. Payments analysis. Manage internal contract numbers and automatic insertion and update of vendor/customer contracts. Process documents with negative posting. Print invoices. Accounting of down payments in foreign cur rency. Payments analysis. Process transfer pricing to evaluate the transfer of goods or services between independently operating units of a corporate group. Manage customer and vendor turnover balance and balance no tification. Process the following for fixed assets: Create and print forms for acquisition, retirement, scrap ping fixed assets Create and print fixed assets inventory cards Create and print physical inventory list Revaluation and the reversal of revaluation Make settings for localization data. Manage cash journal and print cash documents. Prepare financial statements (balance sheet, profit and loss statement, cash flow statement, changes in equity statement). Process offsetting account determination. Process income tax (known in the system as profit tax) using a separate set of accounting regulations to calculate your taxable profit. Prepare and process tax invoices and correction tax invoices. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 199 Business Area Key Feature VAT Reporting Use Prepare and process VAT reporting. Supply Chain Business Area Key Feature Use Inventory Management Physical Inventory Carry out the physical inventory for material stocks. Prepare a list of stock on hand at the beginning and end of each period, showing the value of the stock as well as its quantity. Allows the printing of forms required for physical inventory. Output Processing Allows the printing of forms required for goods acceptance, in ternal goods movement and goods issue processes. Logistics Execution Outbound Delivery Processing Allows the printing of forms required for outbound delivery processing. Sales Business Area Billing and Invoicing Key Feature Billing Use Allows the printing of invoices. United Kingdom Finance Business Area Key Feature Use Accounts Payable and Accounts Receivable Master Data Process business partner master data and CIS vendor verification. Posting Business Transactions Process vendor invoices. Withholding Tax Track and remit withholding tax for construction industry scheme. Asset Accounting Depreciation Post revaluation in compliance with the requirements of the Statement of Recommended Practice (SORP) and modified his torical cost accounting (MHCA) primarily used by the public sector. Tax VAT Process tax on open invoices. 200 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Business Area Key Feature VAT: EC Sales List VAT Reporting Use Process EC sales list for the United Kingdom. Create an electronic value-added tax (VAT) return on sales and purchases. 2.15.3 Africa/Middle East Key Features The following tables contain the key features for the countries in Africa and the Middle East. Egypt Finance Business Area Key Feature Use Accounts Payable and Accounts Receivable Bill of Exchange Vendor Certificates Withholding Tax/Stamp Tax General Ledger Company Certificates Manage and record the incoming postdated checks. Maintain all information related to vendor certificates in the business partner master for vendor along with information re lated to its validity. Manage the withholding tax rules and the calculation, and clear its open items to generate the legal remittance form and the tax payment form in accordance with the tax rules and regulations. Manage the stamp tax rules and the calculations, and clear its open items to generate the legal remittance form and the tax payment form. in accordance with the tax rules and regulations. Maintain all information related to the company certificates along with information related to its validity. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 201 Israel Cross Features Business Area Cross Feature Key Feature Annexing Use Enables to adjust a price according to index/currency/price list changes as defined by inflation adjustment law by handling the master data of the annexing packages that are used in the cen tral annexing calculation. Finance Business Area Key Feature Use Accounts Payable and Accounts Receivable Analysis of Payments to Sup Process restrictions in a payment run by managing foreclosures pliers in Accounts Payable and Accounts Receivable. Master Data Update vendor master data with content from Shaam (Compu terized Processing Service of the Authorities). Send vendor master data files to Shaam. Withholding Tax Generate withholding tax file. Asset Accounting Closing Operations and Re porting Process revaluation and reporting in asset management. Other Process localized investment plans and asset classification. Cash Bank Account Master Data Process bank master data. Cash Processes Cash system is a receivable cash that supports main processes, such as: Collecting payments (receivable of cash, check deferred check and credit card) Return (cancellation) of payments Deposit Cash audit Tax Audit Files Uniform files and annual file form 6111. VAT Reporting Prepare and process data for the VAT files. Sales Business Area Key Feature Sales Order Manage ment and Processing Annexing Use Maintain annexing data in sales order. 202 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Business Area Billing and Invoicing Key Feature Annexing Source and Procurement Business Area Operation Contract Management Key Feature Annexing Purchase Order Proc essing Annexing Supplier Invoice Verifi- Annexing cation Use Calculate price in billing documents using annexing formulas. Use Maintain annexing data in different purchase document levels such as in scheduling arrangements, Contracts and Requests for Quotation. Maintain annexing data in different purchase document levels. Create an annexed invoice. Kuwait Finance Business Area Key Feature Use Accounts Payable and Accounts Receivable Withholding Tax Generate statement of withholding tax settlements on dividends earned by entities investing in securities listed in Kuwait Stock Exchange (KSE). Vendor Certificate Maintain all information related to vendor certificates in the business partner master for vendor along with information re lated to its validity. Asset Accounting Depreciation Enclosure with Income tax declaration - Generate statement of assets depreciation in accordance with the county tax rules and regulations. Cash Bank Reconciliation Manage the reconciliation between the bank statements amounts and own accounting records. General Ledger Company Certificates Maintain all information related to the company certificates along with information related to its validity. Inventory Accounting Periodic Valuation of Material Enclosure with Income tax declaration - generate statement of Inventories stock closing inventory at end of the year. Tax Corporate Income Tax Perform an annual income tax and other taxes declaration in ac cordance with the county tax rules and regulations. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 203 Oman Finance Business Area Key Feature Accounts Payable and Accounts Receivable Bill of Exchange Withholding Tax Vendor Certificates Tax Corporate Income Tax Use Manage and record the incoming postdated checks and manage the outgoing postdated checks through a dashboard. Manage the withholding tax rules and the calculation, and clear its open items to generate the legal remittance form in accord ance with the tax rules and regulations. Manage and record the incoming postdated checks and manage the outgoing postdated checks through a dashboard. Manage income tax declaration. Qatar Finance Business Area Key Feature Accounts Payable and Accounts Receivable Bill of Exchange Withholding Tax Vendor Certificates Asset Accounting Depreciation Cash General Ledger Bank Reconciliation Provision Use Manage and record the incoming postdated checks. Manage the withholding tax rules and the calculation, and clear its open items to generate the legal forms (remittance, vendor certificate, refund) in accordance with the tax rules and regula tions. Maintain all information related to vendor certificates in the business partner master for vendor along with information re lated to its validity. Enclosure with income tax declaration - generate a statement of assets depreciations in accordance with the tax rules and regu lations. Manage the reconciliation between the bank statement amounts and own accounting records. Enclosure with income tax declaration - generate a statement of company provisions details in accordance with the tax rules and regulations. 204 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Business Area Tax Key Feature Corporate Income Tax Use Perform an annual income tax declaration in accordance with the tax rules and regulations. Saudi Arabia Finance Business Area Key Feature Accounts Payable and Accounts Receivable Bill of Exchange Withholding Tax Vendor Certificate Asset Accounting Depreciation Tax Corporate Income Tax Use You can process postdated checks. Generate the monthly withholding tax declaration and create withholding tax certificates form. Maintain all information related to vendor certificates in the business partner master for vendor along with information re lated to its validity. Enclosure with Zakat and Income tax declaration - Generate statement of assets depreciation in accordance with the county tax rules and regulations. Perform an annual Zakat and income tax declaration and enclo sures in accordance with the county tax rules and regulations. South Africa Finance Business Area Tax Key Feature VAT Reporting Use Process sales and purchases ledger reporting. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 205 United Arab Emirates Finance Business Area Key Feature Accounts Payable and Accounts Receivable Bill of Exchange Vendor Certificates Use Manage and record the incoming postdated checks. Maintain all information related to vendor certificates in the business partner master for vendor along with information re lated to its validity. 2.15.4 Asia-Pacific Key Features The following tables contain the key features for the countries/regions in Asia-Pacific. Australia Cross Features Business Area Cross Feature Key Feature Electronic Document Use Enable the processing of electronic documents by doing the fol lowing: Extracting the relevant data from documents created on source applications. Monitoring the process steps related to electronic docu ment preparation. Note To realize the end-to-end processing of electronic docu ments, you can integrate other SAP products. These prod ucts might require additional licenses. For more informa tion, see Document Compliance [page 237]. 206 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Finance Business Area Key Feature Accounts Payable and Accounts Receivable Withholding Tax Use Report generic withholding tax. China Cross Features Business Area Cross Feature Key Feature Use Official Document Numbering Ensure consecutive numbering for financial documents. Finance Business Area Key Feature Use Accounts Payable and Accounts Receivable Bill of Exchange Manage the whole life cycle of various BoE receivable and paya bles, including master data, process and status management, reports and counting. Monitoring of Receivables and Aging reporting, customer summary and details reporting, ven Payables dor summary and details reporting. Cash Cash Budgeting Manage all cash budgeting for China including configuration, data preparation, cycles and approvals, budget consumption and reports. Cash Desk Report for historical cash flow and movements in a specified pe riod. Electronic Payment Integration Process incoming and outgoing payment management and cash (EPIC) operations for China. General Ledger Closing Operations and Re porting Process compiling a collective balance of payments. Financial Statement Manage and display localized financial statements (profit and loss statement, balance sheet, cash flow statement). G/L Account Balance Display G/L account balance and line items in general ledger. Offset Accounting Determine offset accounts for cash flow statement. GR/IR Analysis Analyze details of goods received but invoice not received, and invoice received but goods not received. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 207 Business Area Tax Key Feature Journal Master Data Golden Tax Interface Global Trade Use Print financial documents according to China-specific format. Manage master data related to account levels hierarchy. Manage pre-processing of invoicing data with splitting, merging, rounding handling, and so on, and generate invoicing files for in voicing and printing to Golden Tax System. Manage the tax refund process of exporting goods, including the FI posting of accrued refundable VAT and consumption tax. India Cross Features Business Area Cross Feature Key Feature Manage Master Data Electronic Document Use You can manage/migrate tax-relevant master data of a business partner. This data includes excise duty, service tax, and with holding tax data. Enable the processing of electronic documents by doing the fol lowing: Extracting the relevant data from documents created on source applications. Monitoring the process steps related to electronic docu ment submission by a custom solution for the outgoing in voicing process. Note To realize the end-to-end processing of electronic docu ments, you can integrate other SAP products. These prod ucts might require additional licenses. For more informa tion, see Document Compliance [page 237]. Finance Business Area Key Feature Accounts Payable and Accounts Receivable Postings and Documents Use Post and clear vendor down payments. 208 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Business Area Asset Accounting Tax Key Feature Withholding Tax Closing Operations and Re porting Depreciation Master Data Corporate Income Tax Use Enables you to process withholding taxes (also known as tax de ducted at source or TDS) including clearing according to the In come Tax Act, 1961. Enables you to prepare tax return in the form as required by the tax authorities. Manage fixed assets reporting Calculate depreciation on asset blocks as required by the in come tax laws in India. Make settings for localized master data. Calculates and displays the income tax depreciation and capital gain and capital loss values for asset blocks. Additionally up dates the closing written down value (WDV) of an asset block. Sales Business Area Billing and Invoicing Key Feature Excise Duty Use You can determine excise and other taxes on your sales, and make the appropriate accounting posting. Source and Procurement Business Area Invoice Management Key Feature Excise Duty Supplier Management Subcontracting Challan Use You can calculate excise duty either using a condition-based method or a formula-based method. Additionally, you can pre pare copies of all excise registers for submission to excise au thorities. You can handle materials issued to subcontractor without pay ment of excise duty or with full payment of excise duty. Indonesia Cross Features Business Area Cross Feature Key Feature Business Place SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Use Manage the activation of business place. PUBLIC 209 Business Area Key Feature Use Official Document Numbering Manage document classes and number range maintenance in official document numbering. Finance Business Area Key Feature Accounts Payable and Accounts Receivable Closing Operations and Re porting Withholding Tax General Ledger Closing Operations and Re porting Offset Accounting Tax VAT Reporting Use Process application configuration for reporting. Enable you to file a withholding tax return on a monthly basis Process compiling a collective balance of payments. Determine offsetting accounts to prepare the cash flow state ment using the direct method. Process advance returns for tax on sales and purchases. Japan Finance Business Area Key Feature Accounts Payable and Accounts Receivable Bill of Exchange Invoice Summary Asset Accounting Cash Withholding Tax Closing Operations and Re porting Depreciation Bank Statement Use For the scenario of Electronic Monetary Claim (Issuer), record bill of exchange transactions according to your requirements. Process the invoice summary, according to Japanese require ments, for the following document types: invoices, credit memos, and down payment requests. Process generic withholding tax report for certain kinds of pay ments that are subject to withholding taxes. Annex 16 (1)(2)(4)(6)(8) - Supplemental forms for a corporate tax declaration to explain depreciation expense. Calculate tax depreciation of fix assets and J-GAAP depreciation of impaired assets. Import Zenginkyo bank statements. 210 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Business Area Tax Key Feature Payment Format Property Tax Use Process bank charge calculation. Domestic bank transfer and foreign bank transfer in Zenginkyo format. Forms for property tax declaration with each municipal tax of fice each year. Sales Business Area Key Feature Use Sales Order and Out bound Delivery Expiration Date Management You use this automatic batch inversion check to prevent the Batch Inversion Check shipment of products from batches that are older than the pre vious shipments to the same customer. The batch inversion check takes place during the creation or modification of sales orders and outbound deliveries. Sales Order CHOAI Route Management In case that business flow (document flow) and logistics flow are multi-steps and Hierarchical to the final consumer, the Hierar chy information (CHOAI Route) is necessary for subsequent processes, like rebate calculation. You can define CHOAI Route and can create a new sales order with specifying CHOAI Route. Sourcing and Procurement Business Area Key Feature Use Purchase Order Proc essing Purchase Orders with Tempo rary Pricing You can order materials from the suppliers by creating a pur chases order with estimate prices and adjust the goods prices after they have been negotiated. Prices are fixed before goods receipt. Malaysia Finance Business Area Tax Key Feature Deferred Tax Goods and Service tax Use Process deferred tax transfer and analyze deferred tax ac counts. Process GST-03 reporting. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 211 New Zealand Cross Features Business Area Cross Feature Key Feature Electronic Document Finance Business Area Cash Key Feature Payment Format Use Enable the processing of electronic documents by doing the fol lowing: Extracting the relevant data from documents created on source applications. Monitoring the process steps related to electronic docu ment preparation. Note To realize the end-to-end processing of electronic docu ments, you can integrate other SAP products. These prod ucts might require additional licenses. For more informa tion, see Document Compliance [page 237]. Use Enable you to generate the payment file you send to your bank according to your format settings. Philippines Cross Features Business Area Cross Features Key Feature Use Business Place Manage the activation of business place. Official Document Numbering Manage document classes and number range maintenance in official document numbering. Finance Business Area Key Feature Accounts Payable and Accounts Receivable Withholding Tax Use Process withholding tax according to your requirements. 212 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Business Area Tax Key Feature Payment Receipt VAT Reporting Use Official receipt printing and management. Process advance returns for tax on sales and purchases. Singapore Cross Features Business Area Cross Feature Key Feature Electronic Document Use Enable the processing of electronic documents by doing the fol lowing: Extracting the relevant data from documents created on source applications. Monitoring the process steps related to electronic docu ment preparation. Note To realize the end-to-end processing of electronic docu ments, you can integrate other SAP products. These prod ucts might require additional licenses. For more informa tion, see Document Compliance [page 237]. Finance Business Area Asset Accounting Tax Key Feature Closing Operations and Re porting Depreciation VAT Reporting Use Manage fixed assets reporting. Calculate tax depreciation of fix assets. Process advance returns for tax on sales and purchases. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 213 South Korea Cross Features Business Area Cross Features Key Feature Business Place Electronic Document Use Manage the activation of business place. Enable the processing of electronic documents by doing the fol lowing: Extracting the relevant data from documents created on source applications. Monitoring the process steps related to electronic docu ment preparation. Note To realize the end-to-end processing of electronic docu ments, you can integrate other SAP products. These prod ucts might require additional licenses. For more informa tion, see Document Compliance [page 237]. Cross Features Business Area Cross Features Key Feature Business Place Use Manage the activation of business place. Finance Business Area Key Feature Accounts Payable and Accounts Receivable Bill of Exchange Master Data Withholding Tax Asset Accounting Closing Operations and Re porting Depreciation Use Record bill of exchange transactions according to your require ments. Manage time-dependent Korean-specific fields in customer/ vendor master records (including one time customers/ vendors). Manage generic withholding tax reporting and maintain with holding tax details. You can use section code (assign tax office number and local tax office number). Control the depreciation due on your assets, including any si buin postings. Prepare statements of the depreciation on assets in the format required by the local authority. 214 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Business Area General Ledger Tax Key Feature Trial Balance Closing Operations and Re porting Tax Invoice VAT Reporting Use Manage trial balance and line items in general ledger. Prepare taxes and dues/prepaid expenses. Process tax invoices for all sales and other transactions involv ing output tax, and record incoming tax invoices for all pur chases or other transactions involving input tax. Process sales and purchases ledger reporting. Taiwan Cross Features Business Area Cross Features Key Feature Use Business Place Manage the activation of business place. Official Document Numbering Manage document classes and number range maintenance in official document numbering. Electronic Document Enable the processing of electronic documents by doing the fol lowing: Extracting the relevant data from documents created on source applications. Monitoring the process steps related to electronic docu ment preparation. Note To realize the end-to-end processing of electronic docu ments, you can integrate other SAP products. These prod ucts might require additional licenses. For more informa tion, see Document Compliance [page 237]. Finance Business Area Tax Key Feature VAT Reporting Use Process sales and purchases ledger reporting. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 215 Thailand Cross Features Business Area Cross Features Key Feature Use Business Place Manage the activation of business place. Official Document Numbering Manage number groups and number range maintenance in official document numbering. Electronic Document Enable the processing of electronic documents by doing the fol lowing: Extracting the relevant data from documents created on source applications. Monitoring the process steps related to electronic docu ment preparation. Note To realize the end-to-end processing of electronic docu ments, you can integrate other SAP products. These prod ucts might require additional licenses. For more informa tion, see Document Compliance [page 237]. Finance Business Area Key Feature Accounts Payable and Accounts Receivable Bill of Exchange Correspondence Asset Accounting Deferred Tax Withholding Tax Depreciation Tax VAT Reporting Use Record bill of exchange transactions according to your require ments. Manage your correspondence according to the local business and legal requirements. Transfer deferred tax. Manage generic withholding tax reporting. Prepare statements of the depreciation on assets in the format required by the local authority. Process advance returns for tax on sales and purchases. 216 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enterprise Management Supply Chain Business Area Key Feature Inventory Management Reports Use Additional reports are provided in inventory management for re porting, as required by local authorities. SAP S/4HANA 1709 SAP S/4HANA Enterprise Management PUBLIC 217 3 SAP S/4HANA Enhanced LoB Functions SAP S/4HANA Enhanced LoB Functions enhance core functions of SAP S/4HANA Enterprise Management to provide additional business benefit for your line of business (LoB). Please note that you might need a separate license. For further information, please contact your SAP Account Executive. 3.1 Asset Management 3.1.1 Maintenance Operations 3.1.1.1 Work Clearance Management Business Background By using work permits, you can make sure that safety measures for carrying out certain kinds of maintenance work are complied with and that safety barriers are not removed or shut down unless measures are taken to ensure safety during the maintenance work. The work permit serves as an operational safety barrier to help protect workers and prevent accidents. A work permit is a written document that authorizes specific persons to carry out specific work at a specific time. It describes both the work to be carried out and the requirements that must be fulfilled. At the same time, it ensures that the technician cannot start working until all the required and appropriate safety measures have been taken. It is the duty of everyone involved in the planning, approval, and execution of the maintenance work to evaluate whether or not a work permit is required. Key Features The following features support you with this process: Key Feature Creating a work permit for a maintenance order Use You can create a work permit for a maintenance order. One order can have several work permits, typically separated according to validity, risk categorization, or job-related se mantics. 218 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions Key Feature Use Defining work permits with re stricted validity Work permits might have a restricted validity (for example, for one day only). In such cases, an ongoing maintenance order to be continued the next day would then require a new work permit. If appropriate, the new permit could be copied based on an existing one (and slightly adapted in case of changed safety considerations) and would have to be approved again. Defining work permits for prede fined risk levels Work permits might be categorized by risk level. For example, level 1 could be for highlycritical work requiring strong protection and/or coordination measures, level 2 could be for less critical work. If a maintenance order requires both highly-critical repair work and less critical cleaning work for example, it would be appropriate to assign two separate work permits (one level 1, one level 2) to this order. Note that you can also combine dif ferent risk levels with different validities. In the Oil & Gas industry, for example, it is com mon to distinguish between two levels of work permits as follows: Work permits of level 1 are used for work that involves high risks and hazards. This work requires a comprehensive safety and approval process. It includes hot work, work in an area with special entry restrictions, and so on. Level 1 work permits are usually valid for only one working shift. An extension of the work permit is only pos sible under certain conditions (for example 4 hours). Afterwards, the work permit can no longer be extended. If the work is not yet completed at this point in time, a new work permit must be applied for. Work permits of level 2 are used for all work with lower risks/hazards. This work must also be completed within a predefined time period, although the time period is defined more generously (for example 14 days). Defining work permits for dedi cated safety aspects Work permits might also be separated by dedicated semantic safety aspects, deter mined by the maintenance job to be executed. In case of huge maintenance orders with multiple job tasks, it might therefore be necessary to apply for multiple work permits representing safety for the different semantic aspects (such as a radiation permit and a hot work permit). Creating a safety certificate for a work permit In case of more extensive safety aspects to be covered by a work permit (requiring an individual planning, approval, or execution process), it is appropriate to assign dedicated safety certificates to the work permit that describe such safety aspects in detail. A com mon example for such a safety certificate is an isolation list (such as an electrical isola tion list or a valve & blind list) specifying all the technical objects of an asset that need to be processed/switched in conjunction with a lockout/tagout. Approving work permits and safety certificates Approvals are used to define certain rules or requirements that must be observed during processing of both work permits and safety certificates. In particular, you can use appro vals as follows: To explicitly confirm the execution of certain safety-related activities (by issuing the respective approval) To block certain activities (until the required approval has been issued) To clearly visualize that all described safety measures have been executed (as soon as all respective approvals are issued) and maintenance work can be performed safely SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions PUBLIC 219 Key Feature Processing isolation lists Use This process consists of switching (for example, tagging/untagging) technical objects specified in an isolation list so that work and tests can be performed safely. To ensure that the lockout/tagout process can be performed safely and without conflicts, the sys tem provides checks and simulations. 3.1.1.2 Linear Asset Management Business Background You use linear asset management to manage the entire lifecycle of linear assets like roads, rails, pipelines, or electricity transmission lines. The process will help you to optimize the reliability, availability, maintainability, and safety of the networks and infrastructure you are responsible for. Linear asset management is a comprehensive, integrated process that facilitates and connects linear asset management activities with enterprise processes and data. In addition, the process helps you to improve asset management effectiveness, efficiency, and strategy, thereby boosting asset reliability and return on investment. Key Features The following features support you with this process: Key Feature Managing infrastructure Defining and controlling Managing master data Use You can manage infrastructure networks of continuous assets and make use of flexible dynamic segmentation functionality to visualize the network and assets configuration. You can define and control asset configuration, capacity, capability, and condition in one database, and automate asset lifecycle management in complex operational environ ments. You can manage master data about critical network assets that helps cut asset down time, and saves time that used to be spent searching multiple systems and files for documents such as maintenance procedures and drawings. 220 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions 3.1.1.3 Integration with Asset Central Business Background SAP S/4HANA supports the integration with Asset Central (currently Asset Intelligence Network). You can transfer your technical objects with their details into Asset Central. Key Features The following table explains the key features available: Key Feature Technical object details Technical object references Data synchronization Document synchronization Notification replication Work order replication Use The system supports the navigation to Asset Central to view details on the technical object. You can create references from technical objects in SAP S/4HANA to a corre sponding model in Asset Central. You can create a technical object and synchronize it with the Asset Central equipment and vice versa. You can transfer document attachments between Asset Central and SAP S/ 4HANA. You can transfer maintenance notifications between Asset Central and SAP S/ 4HANA. You can transfer work orders from SAP S/4HANA to Asset Central. 3.1.2 Resource Scheduling 3.1.2.1 Resource Scheduling Business Background SAP S/4HANA Asset Management for resource scheduling allows you, as a maintenance planner, to monitor and manage the utilization of your work centers. SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions PUBLIC 221 Key Features You can use the following key features: Key Feature Use Get an overview of KPIs related to mainte nance planning You can monitor important KPIs for your work centers, such as the following: Number of maintenance orders that have at least one due operation in the next four weeks, sorted by priority Note The display time period starts on the current date and includes the re maining days of the current calendar week plus the following three calendar weeks. If the current date is not the start of a calendar week, the actual display time period is shorter than 28 days. Utilization of your work centers Number of maintenance orders that have at least one unconfirmed opera tion with an end date in the past six months, sorted by processing status Gain transparency about the utilization of your work centers and the current mainte nance load You can see at a glance which of your work centers are overloaded and which still have free capacity. Utilization of your work centers is calculated based on the available work cen ter capacity and the maintenance order operations, suboperations, and sched uled maintenance plans that are assigned to them. Visualize work center utilization based on You can graphically show work center utilization based on various attributes, various attributes such as work center, processing status, priority, or order type. Dispatch one or multiple order operations Dispatch maintenance order operations and suboperations with one click to confirm that they are scheduled at the right place and time. Level work center utilization by moving or der operations to another date or work center You can change the start date and work center for one or multiple order opera tions at once, for example, to level capacity for overloaded work centers. Visualize the maintenance schedule for your work centers You can visualize on a timeline the maintenance order operations and suboper ations in your work centers as well as their processing status, thus gaining transparency about what needs to be done when. 3.1.3 Geographical Enablement Framework for Asset Management Business Background Geographical Enablement Framework for Asset Management enables you to gain a comprehensive overview of your business data. You can see EAM business objects (pieces of equipment, functional locations, 222 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions maintenance orders, and maintenance notifications) on a map that allows you to analyze your data in a geographical context. Key Features The following table explains the available key features: Key Feature Use Display and Find Business Objects on the You can display and find business objects with assigned geospatial data on the Map map. Assign Geospatial Data to Technical Ob jects (Manual and Automatic) When you create a technical object (piece of equipment, functional location) or a maintenance document (maintenance order, maintenance notification), the system can copy the geospatial data automatically to the created business ob ject. In addition, you can also copy the geospatial data manually. Initiate a Business Process from a Map You can select a single technical object or a maintenance document on the map and the system processes it further. In addition, you can initiate your busi ness processes from the map by selecting multiple maintenance orders or maintenance notifications. 3.1.4 Environment, Health and Safety 3.1.4.1 Incident Management Business Background You use the incident management solution to record and process incidents, safety observations, and near misses. This solution provides methods for recording the data to accommodate online and offline situations. After initial recording, you can collect additional information from the people involved, investigate why an incident occurred, and track the financial impact on the organization and its assets. You can report data to the relevant authorities and analyze injuries and illnesses. Key Features The following scenarios and key features are supported: Managing Incidents SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions PUBLIC 223 You can record incidents that occur in your organization and report these to the relevant authorities. You can also investigate the causes that led to an incident, and initiate actions to prevent unsafe conditions and future incidents. To manage incidents, you can use the following features: Key Features Initial Incident Recording Review and Completion of Incident Records Incident Investigation Use You can record basic information about an incident. This in cludes a description of the actual events as well as informa tion about the people and assets that were involved in the in cident. When the initial incident recording process is completed, the system automatically notifies the processor responsible to trigger follow-up activities. You can summarize the initially recorded data in a print form. This document is assigned to the incident record and you can use it as reference during the review and completion step. You can directly access incident records to review and com plete the information that was entered during initial incident recording. If you require additional information from others, you can start a process that sends out inquiry forms and au tomatically notifies you when these forms have been com pleted. You can review the forms before automatically trans ferring the form entries into the fields of the incident record. Depending on the regulations that are valid for your organi zation, you can generate different reports that can be sent to the authorities. Approval processes support you to validate reported information. You can carry out an incident investigation to determine the causes that led to an incident. Depending on legal or organi zation-specific requirements, you can configure different in vestigation templates to include relevant investigation steps, such as a step for a root cause analysis and a step for les sons learned. Managing EHS Locations You can create and edit locations and specify a location hierarchy. You use locations, for example, to specify a workplace for which a risk assessment is carried out. 224 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions To manage EHS locations, you can use the following features: Key Features Location Import Location Structure Editing Location Editing Use If you want to reuse locations that exist as technical objects in a plant maintenance application, you can import them as locations into health and safety management. You can insert locations at different positions into a location structure to represent where these locations exist spatially or functionally in your company. The location structure also allows you to make mass changes to the attributes of multi ple locations in one go, instead of having to maintain each lo cation individually. You can add new locations to the location structure or edit the master data of locations that already exist within the structure. Location master data includes the plant or com pany code to which that location belongs, and the precise position of the location, which can be visualized on an inte grated map. For locations that have been created manually, you can also establish links to technical objects. 3.1.4.2 Environment Management Business Background You use the environment management solution to record collect, process, monitor, and organize environmental data in order to be compliant with environmental legal requirements that are valid for your industry. This solution enables you to record collected data from manual and automatic input, and export that data, so that it can be prepared for reporting. Initially you create compliance requirements that contain the conditions which your plant must meet to stay environmentally compliant. You then create compliance scenarios where you organize the activities that ensure compliance within your locations. After you have assigned the relevant compliance requirements to your compliance scenarios, you create environmentally-related tasks and activities that need to be completed for the orderly running of equipment and facilities. You collect and calculate chemical and physical parameter data and monitor data records and the progress on tasks to keep track of the environmental impact of your industrial operations. You can report deviations from normal operation in the system, if they occur. Key Features The following scenarios and key features are supported: Managing Emissions SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions PUBLIC 225 You can record environmentally-related data from industrial operation in your organization and export the data so that it can be reported to legal authorities. You can also process data, and initiate tasks and activities to prevent future deviations. To manage environmental data, you can use the following features: Key Features Prepare Compliance Requirements Prepare Compliance Scenarios Monitor Environmental Data Create Deviations Use You can create and define structured compliance require ments that contain conditions to which your industrial oper ations need to comply. You can create compliance require ments of different types, based on what they are valid for. When the compliance requirement is created, you can add environmental limits, against which the system runs checks on the recorded data. You can also add methodologies for the calculation of emissions, and add emission-relevant pa rameters, such as emission factors. You can create compliance scenarios where you add data collections, sampling activities, data calculations, and aggre gations of environmental data. You can create and assign tasks to persons responsible, that need to be complete to ensure orderly running of industrial equipment and facilities at your locations. You can assign compliance requirements and environmental limits to your compliance scenarios, so that the system can check the collected or calculated data based on those re quirements. You can setup an automatic collection of data via RFC-ena bled external system, so that the system can import this data autonomously. You can oversee the progress of environmentally-related tasks, or you can monitor the environmental data recorded in the system, using one of the monitor applications. You can filter through data in the environmental data explorer in or der to have an organized overview of certain categories of data records. You can create deviation reports in case there is abnormal or incorrect operation of equipment which may lead to hazards. You can export deviation data in spreadsheets or file-based reports. 226 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions 3.1.4.3 Health and Safety Management Business Background You use the health and safety management solution to assess risks within your organization as they relate to the environment or health and safety of people. This enables you to comply with regulations and gain a comprehensive insight into the situations that involve risks. This solution supports you in identifying, analyzing, evaluating, and managing risks. You can take the appropriate actions necessary to reduce risks to acceptable levels and prevent any harmful effects to the health and safety of your employees and the environment. Key Features The following scenarios and key features are supported: Managing Chemicals for Health and Safety Processes You can approve chemicals prior to their use in your company, and enter relevant information for chemicals for which you need to assess risks. Additionally, you can create documents, such as safety instructions, that are used to inform employees about all health, safety and personal protection relevant aspects of the chemicals they use. To manage chemicals for health and safety processes, you can use the following features: Key Features Use Chemical Approval You can use the approval process for chemicals to ensure that new chemicals that are introduced in your company are approved from a health, safety, and environmental aspect before they are ordered. This approval process can be con figured to involve several parties, and you can specify several steps to be carried out by each approver. Data Entry for Chemicals You can enter information provided on safety data sheets and use the information for a subsequent risk assessment process. You can trigger the data entry for chemicals from the approval process or create a chemical manually and en ter the relevant information. Initiation and Processing of Risk Assessments for Chemicals After the approval of a chemical, you can start the risk identi fication process by identifying chemicals used at a certain location in your company. SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions PUBLIC 227 Key Features Use Creation of Safety Instructions As part of the risk treatment for chemicals, you can create safety instruction documents for chemicals at a certain loca tion. A safety instruction summarizes all health and safety relevant information for a chemical, as well as the required protective equipment for safe handling at the location. This document can be used to train employees and inform them about safe handling of the chemical. Managing EHS Risk You can identify, analyze, evaluate, and treat risks that exist in your organization. You can take workplace samples to analyze exposure data for agents and compare exposure data to occupational exposure limits (OELs) set by your organization or regulatory agencies. In this way, you can determine whether exposure levels are acceptable for the corresponding locations or jobs. You can minimize identified risk within your organization by implementing risk-related controls and tasks. After you have assessed and treated a risk, you can communicate information about the risk at a location and the controls to reduce that risk to a plant maintenance process. In this way, the maintenance planner can include the risk information for the maintenance worker. You can also set up the application to receive requests to perform risk assessments from an integrated system, such as SAP Management of Change To manage risks, you can use the following features: Key Features Risk Identification Use You can identify risks that exist at specific locations or jobs within your organization. This involves identifying the haz ards, agents, and impacts associated with each risk. You can also specify existing controls that are used to minimize the risk. 228 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions Key Features Risk Analysis Workplace Sample Management Risks Evaluation Use You can use different assessment steps to analyze identified risks and determine risk levels for inherent risks and initial risks. The assessment steps for each risk assessment type are customizable, and you can use the standard analysis methods or incorporate your own analysis methods. Different analysis methods, such as an exposure analysis, are available for risk analysis. However, you can also define additional analysis methods or adapt the existing analysis methods according to your requirements. If you want to analyze the risk for a specific person or group of persons, you can create similar exposure groups (SEGs) based on locations or jobs. Employees that work at the loca tion or carry out the job and are exposed to the same agents can be grouped together. You can measure exposures for a small sampling of people and use this data to generate per sonal exposure profiles for all persons in the similar expo sure group. You can take samples in a workplace sampling process to measure the exposure of workers to hazardous agents or their components. Workplace sampling provides, as a meas urement result, the average value weighted over time of an agent at the workplace. The result can be a shift average value or a short-time value in accordance with the short-time value concept. Workplace sampling can also be used to check the effectiveness of implemented controls. Based on the results of risk analysis, you can evaluate risks to determine whether they are acceptable for your organiza tion, or must be reduced through risk treatment. You can ei ther evaluate risks manually or use automatic risk determi nation to determine risk acceptability based on your configuration settings. SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions PUBLIC 229 Key Features Risk Treatment Risk Monitoring Use To reduce the risk level of risks that are not acceptable, you can define new controls. You can specify how the control is to be applied, for example, which material or personal pro tective equipment should be used. You can also specify tasks for implementing each control. After all relevant con trols have been implemented, you can repeat risk analysis and risk evaluation to ensure that the risk has been reduced to an acceptable risk level. When a control is faulty or needs replacing and is already im plemented in treating risks, you can replace it with either a completely new control or just change how the control is ap plied. You can select the affected locations and instances of the control, and make the replacement all at once to reduce administrative effort. To treat health risk resulting from exposure to agents in the workplace, you can recommend that health surveillance be conducted to monitor the health of employees. You can then transfer your recommendations to an occupational health application. After a risk assessment is completed, you can continue to monitor and review the identified risk at your organization to verify that risk data remains valid, and that risk treatment is effective. You can schedule recurring control inspections, specify the inspection questions used to evaluate control ef fectiveness, and create any required follow-up risk assess ments. Managing EHS Locations You can create and edit locations and specify a location hierarchy. You use locations, for example, to specify a workplace for which a risk assessment is carried out. To manage EHS locations, you can use the following features: Key Features Location Import Use If you want to reuse locations that exist as technical objects in a plant maintenance application, you can import them as locations into health and safety management. 230 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions Key Features Location Structure Editing Location Editing Use You can insert locations at different positions into a location structure to represent where these locations exist spatially or functionally in your company. The location structure also allows you to make mass changes to the attributes of multi ple locations in one go, instead of having to maintain each lo cation individually. You can add new locations to the location structure or edit the master data of locations that already exist within the structure. Location master data includes the plant or com pany code to which that location belongs, and the precise position of the location, which can be visualized on an inte grated map. For locations that have been created manually, you can also establish links to technical objects. 3.2 Commerce 3.2.1 Subscription Billing and Revenue Management 3.2.1.1 Receivables Management and Payment Handling Business Background Receivables Management and Payment Handling receives and manages a large number of postings, for example created by billing processes, and uploades these postings to the general ledger. All commonly used payment methods for incoming and outgoing payments in your enterprise are processed. Receivables Management and Payment Handling enables billing professionals to assign individual clearing strategies, automate payment reconciliation, and generate reports aligned with accounting principles. Processing payments in a highly automated environment enables the billing team to reduce days sales outstanding and processing costs. The software has been tailored towards the requirements of industry sectors with a high volume of business partners and a high number of documents for processing. The processes provided with Receivables Management and Payment Handling are highly flexible to allow for a maximum of automation as well as mechanisms to ensure outstanding system performance and scalability. SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions PUBLIC 231 Key Features The following table explains the key features available: Key Feature Use Posting of documents to enter business transactions Postings are always saved in document format. The document is a statement for each business transaction. Postings are usually generated automatically by the corresponding business processes or by invoicing. Additional options for automatic data transfer are available. Documents can also be posted manually. When a document is posted, accounts are determined automatically for G/L Accounting. All receivables, payables, revenue and expense accounts are auto matically determined based on account assignment details in the line items. Payment and Receivables processing Receivables Management and Payment Handling provides standard accounts receivable and accounts payable functions, which you use to manage and monitor the receivables due from your customers. The various business processes for payments provided can be classified as fol lows: Automatic payment by your company This processing can be performed for all outgoing and incoming payments if the customer has granted your company the corresponding authoriza tion. Process incoming payments using lots The customer makes payments through the bank or post office. Cash desk and cash journal The customer makes payments directly at your company An account may contain open debit and credit items. If they balance to zero or if there are small differences that are within the tolerance limits defined, these amounts can be cleared automatically or manually. If a customer is unable to honour their financial commitments, you can make a deferral or installment plan agreement for one or more receivables. General Ledger Integration Each individual business transaction, that is, each posting and each document for a given customer, is stored in order to ensure itemized verification. In view of the large document volumes, sales figures are not updated consecutively in the general ledger during posting. Instead, documents are periodically trans ferred to the general ledger. All standard closing activities, as for example, foreign currency valuation, re ceivables adjustment and revenue deferral are supported. 232 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions 3.2.1.2 Invoicing Business Background Convergent Invoicing merges information from several billing streams as well as individually rated events. It enables service providers to consolidate charges into a single invoice and give a complete view of the customer. Providers can accommodate partnerships with third parties and ramp up new services by clearly delineating which party is responsible for any given charge. They can also manage sophisticated rules for invoice-level discounting. By greatly simplifying complex billing processes, providers can give customers a single, consolidated invoice, while delivering better, more personalized services. Key Features The following table explains the key features available: Key Feature Use Receive, manage, and rate consumption information In cases where the price of individual consumption events depends, for exam ple, on the overall consumption during a billing cycle, Convergent Invoicing pro vides the option of storing consumption items as unrated events until they can be rated. In this case consumption information, received from a technical sys tem, such as a mediation system, is stored and can be displayed and moni tored to later trigger rating. Rated consumption information received from (external) rating systems is stored in the form of billable items depending on their status, and subse quently billed. Convergent Invoicing comprises a billing and an invoicing component. Billing manages billable items and groups and aggregates them based on business rules into billing documents, which you process further in invoicing through to the creation of the invoice to the customer. SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions PUBLIC 233 Key Feature Use Bill usage of services, prepare data for in voice creation and trigger posting in Ac counting During bill calculation, you enter priced transactions from a rating system and additional data from other components as billable items to create structured bill content. Billable items can represent event detail records, call detail re cords, billing detail records, recurring charges, one-off charges, and other charges or credits to be billed. You can use a billing plan to define: Dates and amounts for generating individual billable items Periods and amounts for generating recurring charges Complex discount calculations can be applied to entire business hierarchies using master agreements, as well as to individual contracts. The discount cal culation is based on discount rules which can consider all details contained in the billing data. From the invoicing data, Convergent Invoicing can generate print documents which you can forward to connected printing systems. During invoicing, Convergent Invoicing creates invoices and updates these di rectly in Contract Accounts Receivable and Payable. Convergent Invoicing offers flexibility in posting revenues, depending on the relevant accounting principle (for example, IFRS). You can transfer pre-aggregated invoicing data from one or more billing sys tems (SAP internal or external) into the invoicing process. For example, you can integrate invoicing data from Sales and Distribution into the invoicing proc ess. The invoicing data received from the source applications can be combined to create one convergent invoice for the customer. In Contract Accounts Receivable and Payable you can add information to invoi ces and update them. This additional information can include open receivables from previous invoices, information about received payments, or additional charges, as for example, late payment charges or interest on overdue items. To apply changed prices or conditions, Convergent Invoicing provides rerating of consumption items for the complete inventory of stored consumption items of a contract for a given period. During rerating, billable items are reversed, and the consumption items are rated based on the changed prices and conditions. If you want to define business hierarchies, Convergent Invoicing supports you with the definition of master agreements. Using master agreements, you can group your business hierarchy members for invoicing (layout, recipient, payer, additional invoice statements) and define complex discounting rules for each member. For example, you can define which services are reduced in price and which members of the hierarchy profit from the reduction. When a member of the hierarchy, which is eligible for a master agreement, closes a contract the existing master agreement is referenced and the terms negotiated within the master agreement automatically apply to this member. 234 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions Key Feature Exception handling using clarification cases Use During the processing of invoicing documents and during invoice creation, sit uations can arise that require you to stop automatic processing and continue with manual postprocessing in dialog. Convergent Invoicing supports you with several correction processes, for ex ample, for correcting events that have been rated using an incorrect price. In this case, you can rerate all consumption events. If the system used incorrect consumption or billing data, you can change, enhance, or replace the data which is then subsequently processed in the standard billing and invoicing processes. You can also create a credit memo or debit memo in case an incor rect amount has been invoiced. 3.2.1.3 Credit and Collections Management Business Background Credit and Collections Management provides reliable, comprehensive credit scoring of new and existing customers based on historical customer data integrated with external credit rating agencies. It fully automates routine tasks in the collections process for mass volumes of customers, such as the calculation of interest payments. Billing personnel can change and continuously optimize collections strategies by using Champion/ Challenger analysis as well as in-house teams and external collections agencies. A complete picture of the credit and collection history of new and existing customers enables providers to reduce days sales outstanding and the risk of nonpayment, while retaining loyal customers. Key Features The following table explains the key features available: Key Feature Customer segmentation based on risk classes and payment behavior Use You can put your customers into segments with regard to their credit risk, con trol and continually monitor sales and service processes, and respond immedi ately when exceptional situations arise. The segmentation takes place in Credit Management, whereby external credit information, such as D&B® and Experian, and internal credit information, such as the length of the business re lationship and the payment behavior, are considered. The external and internal credit information from the different systems are saved in the master data of the business partner. This risk-based segmentation has an influence on the collection process. SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions PUBLIC 235 Key Feature Use Determination and execution of collection activities You can evaluate the open receivables of your customers (due or not yet due) as regular intervals using different parameters, such as age and amount of the receivables, and collection history and risk class of the customer. Using busi ness logic defined in the system settings, the system derives the relevant col lection activities for each customer, such as sending reminders, creating work items for the collection specialist, and the submission of receivables to exter nal collection agencies or to third-party applications for legal dunning proce dures. Collection specialists have a detailed overview of their customers and access to all the necessary tools and functions for the required measures. Heads of department can track the progress of Collections Management at all times and, if necessary, take action. 3.3 Database and Data Management 3.3.1 Enterprise Information Management 3.3.1.1 Master Data Management 3.3.1.1.1 Master Data Governance Business Background Master Data Governance (MDG) reliably supports you in keeping your master data consistent even when your system landscape is complex and distributed across various locations. MDG enables you to adjust your master data quickly to reflect legal changes and respond flexibly to new requirements and to business transactions such as takeovers of other companies. MDG also enables you to track changes made to master data. MDG, central governance provides central ownership of master data in line with a company's business rules and business processes. MDG, central governance delivers domain-specific applications as well as a framework for custom-defined master data. MDG, central governance offers change request-based processing of master data with an integrated workflow, staging, approval, activation, and distribution to all systems. MDG, central governance can use SAP's as well as company-specific business logic to create master data ready to be used in a company's business processes. 236 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions MDG, consolidation and mass processing provides an understanding of enterprise master data that is owned and maintained de-centrally, as well as general mass processing capabilities for master data. MDG, consolidation delivers capabilities to standardize the master data and to detect duplicates. For each of the resulting match groups, MDG, consolidation calculates a best record out of the duplicates in that group, using survivorship rules on the master data attributes. The best records can be used in dedicated analytical or business scenarios. MDG, mass processing enables you to update multiple master data records at a time. To update records, you select the fields and records you want to change. The system then provides statistics on the changed fields and validates the data for business transactions use before activating the changes. Key Features The following table explains the key features available: Key Feature Use Master Data Governance, Consolidation and Mass Processing You can use the following consolidation and mass processing applications: Master Data Governance for Custom Objects Master Data Governance for Material Master Data Governance for Business Partner Master Data Governance for Supplier Master Data Governance for Customer Master Data Governance, Central Gover nance You can use the following central governance applications: Master Data Governance, Generic Functions Master Data Governance for Custom Objects Master Data Governance for Financials Master Data Governance for Material Master Data Governance for Business Partner Master Data Governance for Supplier Master Data Governance for Customer 3.3.1.1.2 Document Compliance Business Background To be compliant with electronic document regulations in many countries and regions, companies are required to exchange business transaction documents, such as invoices, in predefined format among legal entities and business partners. SAP S/4HANA supports the integration with products which are enabling an end-to-end process, currently: SAP Document Compliance on-premise edition to transform business transactions documents into legally required electronic documents in XML format, trigger the submission of messages to the communication SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions PUBLIC 237 platform, receive and process related incoming messages, and monitor the individual steps along the process. SAP Integration Suite to exchange the electronic documents with the systems of legal entities or business partners. For certain countries or regions, this exchange is available as a service for which you can subscribe to Peppol Exchange service for the cloud edition of the SAP Document Compliance. For Brazil, you can integrate the following products: SAP Document Compliance, inbound invoicing option for Brazil (nota fiscal eletrônica) SAP Document Compliance, outbound invoicing option for Brazil (nota fiscal eletrônica) Key Features If the end-to-end process for document compliance is established (currently by integrating SAP Document Compliance, on-premise edition and SAP Cloud Platform Integration), SAP S/4HANA supports the following key features for Austria, Belgium, Denmark, Brazil, Chile, Colombia, Denmark, Germany, Greece, Hungary, Italy, Ireland, Mexico, Netherlands, Norway, Peru, Poland, Portugal, South Korea, Spain, Sweden, Singapore, Taiwan, Thailand, and Turkey Key Feature Data mapping Process orchestration Monitoring of document history Error Handling Link to source document Displaying, previewing, and storing XML files Extensibility Use Transaction documents, such as invoices, are mapped to legally required XML formats. For outgoing documents, such as customer invoices, the system processes re quired steps required by each business scenario and applies corresponding statues to the electronic documents. You can monitor all process steps that a document has been through and see the statuses throughout the entire end-to-end process of an electronic docu ment. You can display notifications and errors that occur throughout the entire endto-end process. You can, for each electronic document, trace back the source document that it refers to in original applications. The system stores the electronic documents in XML format. You can display and preview them. Some of the framework extensibility features are: You can create new processes and document types (or copy and adjust existing ones). You can define process steps, variants, actions and status values to or chestrate the process. You can assign actions to be triggered by users to the buttons and menu items in the monitor. You can support special cases like processing of lists and batches, contin gency processing, cancellations, reversals and error handling. 238 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions If the end-to-end process for document compliance is established (currently by integrating SAP Document Compliance, on-premise edition and SAP Cloud Platform Integration), SAP S/4HANA supports the following key features certain country/regions: Key Feature Use Incoming documents You can process incoming electronic documents for Austria, Belgium, Brazil, Chile, Colombia, Denmark, Germany, Italy, Ireland, the Netherlands, Norway, Poland, Singapore, Sweden, and Turkey. PDF Display You can preview electronic documents in PDF format for Colombia, Italy, Mex ico, South Korea, Taiwan, and Turkey. E-mail integration You can configure the system send to your business partners electronic docu ments by e-mail. This function is available for Brazil, Chile, Germany Italy, Mex ico, Peru, and Turkey. Process electronic documents under con tingency When there are issues with the communication with external systems, you can switch to a contingency process to proceed with your business transactions without disruption. This feature is available for Brazil, Chile, Colombia, and Peru. 3.4 Finance 3.4.1 Financial Planning and Analysis 3.4.1.1 Financial Planning and Analysis The component, which provides functionalities for financial planning and analytics within S/4 HANA, is called SAP BPC for S/4HANA. Business Background To effectively control and monitor your company, you need easy-to-use planning capabilities and up-to-date analytics. With financial planning, you set plans for your financial units, such as profit centers or market segments. At the end of the planning period, you compare the actual data with the plan data to determine the success of the financial units. SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions PUBLIC 239 Key Features The following table explains the key features available: Key Feature Use Integrated Financial Planning SAP BPC for S/4HANA provides a central, integrated place for all financial planning data. It also provides real-time access to master data and actual data. Financial Planning using Microsoft Excel You can perform financial planning using Microsoft Excel and SAP Busines sObjects Analysis, edition for Microsoft Office. SAP provides various applica tions for planning on fiscal years or fiscal periods. You can adapt these plan ning applications according to your needs. Integration to S/4HANA Planning Func tions You can use a large set of planning functions available within SAP BPC for S/ 4HANA, such as top-down distribution or recalculations. To perform planning functions in the SAP Business Suite, you can copy the planning data from SAP BPC for S/4HANA to the SAP Business Suite. You can afterwards copy the data back to SAP BPC for S/4HANA to use its SAP HANA-enabled reporting capabil ities. SAP HANA-Enabled Reporting Reports on plan data and actual data are HANA-enabled to provide real-time access and flexible analysis capabilities. Sample Content We provide sample BI content for planning and reporting that you can use as it is or adapt it according to your needs. This sample planning content, for example, contains workbooks which allow you to plan on various cost objects with a focus on overhead accounting. There are other workbooks with which you can perform various types of plan data al location. 3.4.2 Accounting and Financial Close 3.4.2.1 Central Finance Business Background With Central Finance you can transition to SAP S/4HANA without disruption to your current system landscape, which can be made up of a combination of SAP systems of different releases and also, with some additional effort, non-SAP systems. 240 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions Key Features The following table explains the key features available: Key Feature Mapping of Accounting Entities Replication of FI and CO Postings Replication of Cost Objects Replication of EC-PCA Postings Replication of Commitments Harmonized Financial Reporting Simplified Mergers and Acquisitions Use You can map the various accounting entities in your source systems to one common set of master data in the central system. Financial accounting (FI) and management accounting (CO) postings are repli cated to the central system. There, FI documents and CO postings are com bined into one document in the central system; the universal journal entry. In addition, all cost elements are part of the chart of accounts. Before you replicate CO postings to the central system, you need to make sure that accounts are available for all cost elements in the central system. You can also replicate cost objects (for example, internal orders) to the central system. These represent the business transactions in logistics (for example, produc tion, maintenance, and quality) and may not be at an appropriate granularity in the central system. For this reason, you can choose to transfer some cost ob jects, such as long-living internal orders, directly to orders in the central sys tem and to map other cost objects, such as short-living production orders, to more long-living cost objects, such as a production cost collector, in the central system. Internal postings within profit center accounting (EC-PCA) are replicated to your Central Finance system. In the Central Finance system, an EC-PCA posting becomes an FI posting (uni versal journal entry) in a dedicated ledger. Commitments and commitment updates are replicated in real-time from one or more source systems to your Central Finance system, allowing you to also report on committed amounts in your cost object reports. Central Finance allows you to map to a common reporting structure with which you can report on financial figures originating in different source systems, ben efitting from the new reporting capabilities (leveraging HANA and the new data model) in the central system. Using Central Finance, the systems of acquired companies can be integrated more easily. SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions PUBLIC 241 Key Feature Central Payment Central Tax Reporting Use Central Payment allows you to make centralized payments and perform cen tralized clearing activities in the Central Finance system instead of each source system. It contains the following main features: Activate central payment by company code. For company codes that are activated for central payment, new invoices posted in the source systems are technically cleared. The invoices are re plicated to the Central Finance system and are paid there. For company codes that are not activated for central payment, the invoi ces posted in source systems stay open and are paid in the source sys tems. The invoices and payment or clearing documents are replicated to the Central Finance system for reporting purpose. The replicated invoices are ruled out from the payment or clearing transactions in the Central Fi nance system. This avoids duplicate payments (as payments are to be processed in the source systems). Mandate replication between source systems and the Central Finance sys tem is automated so that SEPA direct debit is supported in the Central Fi nance system. As payments may adjust the indirect taxes calculated when the invoice was posted, it can become necessary to report indirect taxes from the Central Fi nance system when Central Payment is activated. Note Calculation of taxes from your SAP S/4HANA Central Finance system and any reporting based on this calculation covers a certain scope and may not meet all of the reporting requirements in your jurisdiction. You must check with your accounting or tax experts in order to make sure that the results generated by Central Tax Reporting are fully compliant with your relevant jurisdictions' specific tax reporting requirements. For information on which tax reports are supported in Central Tax Report ing, see the documentation on the SAP Help Portal. Note Calculation of taxes from your SAP S/4HANA Central Finance system and any reporting based on this calculation covers a certain scope and may not meet all of the reporting requirements in your jurisdiction. You must check with your accounting or tax experts in order to make sure that the results generated by Central Tax Reporting are fully compliant with your relevant jurisdictions' specific tax reporting requirements. For information on which tax reports are supported in Central Tax Report ing, see the documentation on the SAP Help Portal. 242 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions Related Features It is also possible to connect SAP S/4HANA Cloud editions, starting from SAP S/4HANA Cloud 1705, as a source system. For additional information about connecting the SAP S/4HANA Cloud system, contact SAP. 3.4.2.2 Financial Closing Cockpit for Entity Close Business Background The Financial Closing cockpit supports you in planning, executing, monitoring, and analyzing financial closing tasks for the entities of your group. You can perform local close for the companies of your group on a monthly, quarterly, or yearly basis (or at other intervals) with a freely definable range of closing operations. Local accounting principles and/or principles applied by the group can be taken into account. More generally you can use the Financial Closing cockpit in the following cases: Activities recur periodically. Multiple responsible agents are involved. Activities are performed within a process that has a fixed chronological sequence or is determined by dependencies. The status of all periodic activities needs to be documented and made transparent and available for everyone involved. Key Features The Financial Closing cockpit comprises the following features to facilitate the optimization of your entire closing process: Event-driven organization of closing activities Process overview and monitoring options Analysis tools Closing operations include the following tasks: Maintain exchange rates Execute recurring entries Clear open items Perform inventory and post inventory differences Reclassify clearing account for goods receipt/invoice receipt Value inventory Perform closing operations in the subsidiary ledgers Perform foreign currency valuation SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions PUBLIC 243 Reclassify receivables and payables Use functions for tax on sales/purchases Perform reconciliation between affiliated companies; these intercompany reconciliations are used in preparation for consolidation. Close accounting period and open new period Display financial statements Carry forward balances Evaluate financial statements 3.4.2.3 Corporate Close [Background] You use Corporate Close to periodically plan, create, and monitor your group close for subgroups or the corporate group, either for legal purposes or for the purposes of consolidated management reporting. This process offers a high degree of flexibility regarding the timing of closings as well as the configuration of different accounting principles. You can automate the necessary consolidation steps to a considerable extent and supplement them with manual closing tasks. [Key Features] The following features are available to you as a corporate accountant: [Key Feature] Master data [Use] Versioning helps you run different consolidations in par allel using different criteria, for example: For actual, plan and target data For parallel financial accounting (for example, U.S. GAAP, IFRS) For simulations The smallest element of the corporate structure in con solidation is the consolidation unit. A consolidation unit can represent a company, a profit center, a business area, or a plant. You use consolidation groups to combine a desired number of consolidation units for purposes of consoli dation and reporting. You use financial statement items to enter, post and evaluate monetary values. 244 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions [Key Feature] Data collection Consolidation tasks Execution and monitoring of the consolidation process Reporting [Use] You can collect individual financial statement data from SAP systems as well as non-SAP systems. Various procedures are available for doing this. Consolidation tasks enable you to translate the financial data that is collected from each local currency into the group currency. You can also eliminate the financial statement im balances that result from group-internal relationships. For example, the following consolidation tasks can be auto mated: Currency translation Interunit elimination (including elimination of IU paya bles and receivables, elimination of IU revenue and ex pense, and elimination of investment income) Elimination of interunit profit and loss in transferred in ventory Consolidation of investments Reclassification You use the consolidation monitor to run the consolidation tasks and to monitor the entire consolidation process. Once the consolidation tasks have been completed, you can analyze the data in reports. 3.4.2.4 Advanced Compliance Reporting Business Background You use the advanced compliance reporting to get an optimized overview of your compliance reporting tasks, and to generate and send the compliance reports to the government on time. The basic compliance reporting features are part of SAP S/4HANA Enterprise Management. On top of these features, SAP S/4HANA provides additional features which require an additional license. SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions PUBLIC 245 Key Features Key Feature Run advanced compliance reports Define advanced compliance reports Use You can perform embedded analytics for compliance reports using data analy sis. You can track the items considered for reporting under a specific report run for the supported reports. This tracking helps to analyze and audit these docu ments. You can visualize and interpret output formats in a user-friendly and consistent manner using the data preview feature. You can make manual changes to the document data after the document has been generated. Advanced compliance reporting currently supports the Manage Tax Items for Legal Reporting activity that allows a G/L accountant to move one or more tax items between the reporting periods by changing the tax reporting date. You can use advanced compliance reporting design time application to define additional compliance reports. Some of the features of design time application are: You can use reference report definitions to extend an existing report definition, both SAP standard as well as the ones created in your namespace. You can create and assign reporting activities that are relevant to your re porting process. Advanced compliance reporting currently supports the Tax Payable Posting activity that allows the posting of tax payments for the already generated VAT returns. You can create report categories. You must assign country/region, phases, organizational units, and activities to a report category. You can reuse existing report categories by creating report categories with reference. When you create report category through reference, the inher ited attributes remain read-only. You cannot delete any of the inherited at tributes. You can, however, assign new activities for the report category. You can specify the output documents in diverse formats, for example, XML, flat files, PDF, or JSON. You can map elements with multiple data sources, such as, database ta bles, database views (including CDS views), analytic queries (CDS), BEx queries, and BRFplus functions. 246 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions Key Feature Use Generate and submit advanced compli ance reports With advanced compliance reporting, you can generate the following reports, in addition to the ones listed in Basic Compliance Reporting [page 34]: Audit Data Extraction and Reporting for China GST Data summary for Australia Business Activity Statement (BAS) Computerized Accounting System reports for Philippines Goods and Service Tax Audit files for Malaysia Magnetic Media Reporting for Columbia Transfer Input VAT and Construct Report for input VAT for China Value Added Tax (VAT) for Argentina, Egypt, Mexico, Saudi Arabia, South Africa, and Venezuela Withholding tax reporting for Indonesia (PPH 4(2), PPH 15, PPH22) 3.4.3 Treasury and Financial Risk Management 3.4.3.1 Payments and Bank Communications Business Background Payments and Bank Communications streamlines, controls, and gives better transparency into business' communications with your banks. Automated payment workflows streamline routing and approval processes. Treasury managers can ensure compliance by using rules-based approval workflows that guarantee proper payment approvals and documentation. With central in-house control over cash, financial managers can decrease dependency on banks and the need to transfer cash to regions. Key Features Key Feature Bank Communication Management Managing Multiple Bank Communication Interfaces Receive Payment Status Messages Use Bank Communication Management supports communica tion with multiple banks via SWIFT net, service bureaus or other channels. Payment status messages can be received and displayed in the payment status monitor. You can use this function to dis play status messages containing status codes and status reason texts for particular batches or payments. SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions PUBLIC 247 Key Feature Use Merge Payments from Different Payment Runs Group together payments from several payment runs into one payment run and transfer them together on payment media. Approve Payments You can use this function to display a work list of payment batches for processing. You can then choose to approve or reject batches from the worklist. After full approval, the pay ment medium for the batch will be created and sent to your bank. Batch and Payment Monitor With this function you can access an overview of batches (groups of payments) and see their current status. You can drill down to the payments in each batch and access infor mation on their release (approval) process and status his tory. Monitoring your Bank Statements You can display the status of bank statements from individ ual house bank accounts. A bank statement that is delayed or that does not reach the monitor can be identified with this function just as quickly as any differences occurring between the bank statement bal ance and the internal G/L account balance. Any items that are not assigned as well as differences in posting are also recognized in this way. Define Alerts Define timeouts and trigger alerts, for example when not re ceiving an acknowledgement for a particular batch within a defined time interval. In-House Cash In-House Cash acts as an internal bank within the corporate group, with which each affiliate has one or more current ac counts (e.g. in different currencies). Key functionality is the processing of internal payments between affiliates as well as external payments between affiliates and external business partners. In addition, incoming payments can be routed to the relevant affiliates. With help of In-House Cash the amount of external bank accounts required can be reduced as well as the number of cross border payments. 248 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions Key Feature Manage Master Data Payment Processes Route Processing for External Payments Use The In-House Cash account is the central object and is cre ated for each participating affiliate. The affiliate has the role of the account holder. Within the account master data following information are stored: Account balance as well as the turnovers Account holder and account currency Conditions can be defined to calculate interest and charges to be debited or credited when accounts are settled. They also determine the value dates for pay ment transactions and account balancing. Limits can be defined to restrict the amount-based dis posal on account level. In-House cash supports the following payment processes: Internal payments: process of clearing payables and re ceivables between group affiliates (credit transfer as well as direct debit is supported) Central payments: payments from affiliates to external business partners (credit transfer as well as direct debit is supported) Local payments: cross-border payments initiated by af filiates are transferred into a domestic payment by sending an external payment via the FI system of a local affiliate (to save costs) External incoming payments: e.g. incoming payments that result from zero balancing offered by the external banks Central payments with several In-House Cash centers: Cross-bank area postings enable payments between two In-House Cash Centers via all existing In-House Cash Centers. The aim of route processing is to determine a clearing part ner to make the payment. You can use this process for all types of external payments: Local payments Central payments SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions PUBLIC 249 Key Feature Account Balancing Bank Statements General Ledger Integration Cash Concentration Use The account balancing function is used to settle the ac counts. Account balancing is triggered periodically (e.g. daily, weekly, monthly) in accordance with the entry in the account master data. Interest and charges for the accounts due to be balanced are calculated and posted on the basis of the defined conditions. Bank statements for the accounts managed in the In-House Cash are automatically created on a regular basis, sent and posted in the FI system of the affiliates. In-House Cash is set up as a subledger. Therefore all items posted on the current accounts have to be transferred dur ing an automated end-of-day procedure to the correspond ing general ledger accounts as totals. Cash Concentration means the automated generation of payment orders that debit or credit accounts within an ac count hierarchy on a regular basis, e.g. daily, weekly, monthly. For example a certain minimum balance can be de fined or the remaining balance on an account is always to be transferred to another account. 3.4.3.2 Cash and Liquidity Management 3.4.3.2.1 Cash Daily Operations Business Background Every day, cash managers need to perform tasks such as monitoring cash positions, making bank transfers, approving payments, and so on, to ensure the corporate functions and the business runs with enough fund. Key Features Key Feature Bank statement import status Use You can use this feature to monitor the import status of bank statements for all the bank accounts that are set to be moni tored. 250 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions Key Feature Cash positions Cash flow items Bank transfers Payment approvals Use You can use this feature to check the actual and forecasted cash positions with flexible selections of analytical dimen sions such as bank, country/region, company code, and so on. You can use this feature to track document line items that have impact on your company cash flows, for example, invoi ces, payments, bank statements, financial transactions, memo records, and so on. You can use this feature to initiate a bank-to-bank transfer and track the status of the bank transfers that you made re cently. You can use this feature to approve or reject outgoing pay ments before the payment files are sent to banks. 3.4.3.2.2 Bank Relationship Management Business Background To centrally manage the corporate or business bank accounts in a company, cash managers need to carry out activities such as monitoring, creating, modifying, closing, and reopening bank accounts, as well as performing annual reviews. Note This solution is intended for corporate and business bank accounts only. You should not use it for personal bank accounts. Key Features Key Feature Bank account master data SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions Use You can use this feature to define master data for your com pany's corporate or business bank accounts. In addition to the common properties, you can also define: Payment signatories Overdraft limits Bank account groups and cash pools PUBLIC 251 Key Feature Workflow processes Dual control Bank account reviews Sent and received requests Foreign bank accounts Use You can use this feature to control the process of opening, modifying, closing, reviewing, and mass changing signato ries of bank accounts You can use this feature to implement a dual control process for bank account management. With this process, revisions are saved whenever users create, modify, copy, reopen, or close a bank account. The revisions have to be activated by another authorized user before they become effective. You can use this feature to perform the following tasks: Initiate a review process for selected bank accounts to ensure that the bank account master data is up to date Monitor the review status of launched review processes You can use this feature to track and process requests that you have sent or received for opening, modifying, closing, re viewing, and mass changing signatories of bank accounts. You can use this feature to check the foreign bank accounts and responsible signatories in your company. The informa tion can be used for legitimate reports or analytical pur poses. 3.4.3.2.3 Liquidity Management Liquidity Management Cash managers need to make estimates of future cash flows so that they can see clearly what payment obligations are to be fulfilled and whether there is the need to make investment or funding plans. Key Features Key Feature Liquidity planing Use You can use this feature to develop and analyze liquidity plans. You can track the status and trace liquidity planning cycle to get an early warning indicator of liquidity shortages or a steering tool for medium- and long- term investment or borrowing. 252 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions Key Feature Cash flow analysis and forecast Use You can use this feature to do the following: Check the daily cash inflows and outflows Analyze the past actual cash flows with various dimen sions Forecast the future liquidity trend with flexible selec tions of analytical dimensions, such as bank, country/ region, company code, and so on. 3.4.3.3 Debt and Investment Management Business Background You can portray the process for managing your liabilities and capital investments. The following functional areas are covered: Front Office, Middle Office, Back Office, and Accounting. In addition, integrated posting and payment processes and integrated position reporting allow you to achieve compliance with legal requirements and regulatory standards. The integrated and automated processes (straight-through processing) provide further support by enabling you to focus on value-added activities. SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions PUBLIC 253 Key Functions Function Manage Financial Transactions Portray Intragroup Transactions Perform Central Clearing Manage Financial Positions Pay Flows Post Business Transactions in Financial Accounting Use In Transaction Management, you can enter enter financial transactions for the following areas: Securities (stocks, investment certificates, subscription rights, bonds, bonds with repayment schedule, warrant bonds, convertible bonds, warrants, shareholdings) Money market (fixed-term deposits, deposits at notice, commercial papers, cash flow transactions, interest rate instruments) Facilities Derivatives (caps/floors, swaps, forward rate agree ments, total return swaps, OTC options) Listed derivatives (futures, repos, listed options) Forward securities transactions Securities lending Forwards Forward loans Letter of Credit The type of financial transaction dictates which functions are available for processing the financial transaction across its lifecycle. Functions are also delivered that allow you to portray intra group transactions. The functions for the clearingl accounts allow you to portray clearing of your clearing-relevant financial transactions (for eign exchange transactions and swaps) by your central counterparty (CCP). Balance Sheet Transfers Securities Account Management and Futures Account Management provide a range of functions, such as a function for performing securities account transfers, functions for taking corporate actions, and functions for exercising security rights. You can use the payment program for payment requests to pay flows that are relevant for payment. Using the integration with Financial Accounting, your post ing-relevant flows can be posted in Financial Accounting. 254 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions Function Manage Financial Positions in Parallel in Accordance with Different Accounting Principles Calculate NPVs Execute Key Date Valuation Execute Accrual/Deferral Execute Valuation Class Transfer Execute Account Assignment Reference Transfer Analyze Financial Transactions and Financial Positions Use You use valuation areas to portray parallel accounting. You therefore need to define a valuation area for each set of ac counting principles. You post the valuation results separately for each valuation area. You can calculate the NPVs of your financial transactions and financial positions for a specific key date, including credit and debit value adjustments if necessary. In Accounting, you can use the functions for valuating your financial positions for a specific key date. You use accruals/deferrals to determine for each valuation area the expenses and revenues from financial transactions or positions for a given period and to assign them to the cor rect accounting period, irrespective of when they were ac tually due. You can use the valuation class transfer function for individ ual or multiple positions from the "Securities" and "OTC Transactions" areas. You can transfer securities positions either fully or partially to other valuation classes. You can reverse the valuation class transfer. You use the account assignment reference to control which G/L account in Financial Accounting is used to manage the respective position. You assign an account assignment reference to each posi tion. With the account assignment reference transfer, you can post positions with their book value from one account assignment reference to another. This is similar to how financial positions can be transferred between G/L accounts. You can use a range of reports to analyze your financial transactions and positions specific to a key date or period. These reports are based on logical databases. Further, you can define your own reports on the basis of these databases. SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions PUBLIC 255 Function Use Perform Clearing Threshold Reporting Non-financial counterparties (NFCs) of derivative financial instruments are not generally required to use a central clear ing partner to process these financial transactions. NFCs are required to perform clearing only in cases when they have not concluded these financial transactions for risk mitigation and when the rolling average position of these transactions exceeds the specified clearing threshold values continuously for a period of 30 days. Clearing Threshold Reporting (CTR) supports NFCs in monitoring their derivative financial trans actions that were not concluded for risk mitigation. Perform Trade Repository Reporting The trade repository reporting functions support you in cre ating trade repository messages. Once the process is com plete, your trade repository messages are available as a file on the application server for transfer to the trade repository. From the application server, you can also import and inter pret incoming messages for the trade repository and store them in Document Management. Determine Market Risks of Financial Transactions You can measure the market risk of your financial transac tions. You do this using mark-to-market methods, such as key figure analysis and NPV analysis. Furthermore, you can calculate your Value at Risk or your Cash Flow at Risk. Limit Counterparty Risks You can measure, analyze, and control or limit your counter party risk. Calculate and Monitor Rates of Return You can calculate and monitor the rates of return on your financial assets. Save and Analyze Position Components in the Result Data base and Use Position Components as the Basis for Calcu lating Additional Position Key Figures You can read the position component values of the positions and subpositions from the position management and store them as key figures in the Result Database. This enables you, for example, to store the position component values on a daily or weekly basis based on the original market data in the Result Database. You also can calculate your own position key figures (based on the original position components) that are not available in Position Management of the Transaction Manager. From the Result Database, you can generate reports in the Analyzer Information System (AIS), which displays these key figures. 256 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions Function Manage Market Data Transfer Legacy Data Transfer Data Using Standardized Interfaces Process Payments Using In-House Cash Use In Market Data Management, you store the market data that you require for valuating and processing your financial trans actions (such as security prices, reference interest rates, vol atilities, and correlations). For this, you can use datafeed or the market data file interface. Using datafeed, you can auto mate the import of the required market data from your mar ket data provider. If you want to implement the Transaction Manger and your data (legacy data) are in a source system, you need to en sure that these data are available in the Transaction Manager for a key date. Legacy data is transferred to the system using a process comprising a number of steps. However, for some of these steps, you have alternative ways of transferring data. The standardized interfaces known as Business Application Programming Interfaces (BAPIs) turn SAP applications into open systems that let you exchange data across system boundaries. The system provides a BAdI with which you can connect pay ment programs, such as In-House Cash. 3.4.3.4 Financial Risk Management Business Background You can deploy robust analytical functions that perform thorough checks for foreign exchange risks and counterparty risks. You can model a range of scenarios to gain insights into the extent of risks at the time of the analysis. Further, you can apply effective hedge strategies in accordance with international accounting standards. The system provides all-round support throughout the hedging process, from identifying risks and quantifying and analyzing them through to hedging risks with optimum hedging instruments. For hedging instruments, the complete process is covered, from front office, middle office, and back office through to accounting. In addition, for your trade finance, you can use functions for depicting letters of credit. SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions PUBLIC 257 Key Functions Function Use Determine FX Risk Positions In Exposure Management 2.0, you collect future incoming and outgoing payments of your company that are associated with an FX risk. These payment flows are either actual pay ments that already have a fixed amount and time settings or they are only planned payments. Exposure Management 2.0 helps you identify the risks in payment flows and provides integration with Hedge Ac counting for Exposures (E-HA). Perform Hedge Accounting for Hedging Relationships Used to Hedge FX Risks You can manage hedging relationships with which you document how you use financial instruments to hedge your risk positions (exposures) against FX risks. You can portray fair value hedges (FVH) and cash flow hedges (CFH) including net investment hedges (NIH) for foreign subsidiaries. You can run effectiveness checks for your hedging rela tionships and to document your hedging relationships. It also offers valuation and accounting functions for hedge accounting purposes. Review Balance Sheet FX Risks You can calculate and review balance sheet FX exposures and the related hedging transactions as well as the resulting net exposure. Manage Hedging Instruments In the Transaction Management, you can enter your hedging instruments: Foreign exchange transactions (purchase, sale, forward exchange transaction) Derivatives (OTC option) The type of financial transaction dictates which functions are available for processing the financial transaction across its lifecycle. Manage Incoming and Outgoing Transaction Correspond ence for Hedging Instruments You can use the Correspondence Framework to automate processing of your transaction correspondence. Portray Intragroup Transactions Functions are also delivered that allow you to portray intra group transactions. Perform Central Clearing The functions for the clearing accounts allow you to portray clearing of your clearing-relevant financial transactions (for eign exchange transactions and swaps) by your central counterparty (CCP). 258 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions Function Manage Financial Positions Pay Flows Post Business Transactions in Financial Accounting Manage Financial Positions in Parallel in Accordance with Different Accounting Principles Execute Key Date Valuation Execute Accrual/Deferral Execute Valuation Class Transfer Execute Account Assignment Reference Transfer Use Balance Sheet Transfers Securities Account Management and Futures Account Management provide a range of functions, such as a function for performing securities account transfers, functions for taking corporate actions, and functions for exercising security rights. You can use the payment program for payment requests to pay flows that are relevant for payment. Using the integration with Financial Accounting, your post ing-relevant flows can be posted in Financial Accounting. You use different valuation areas to portray parallel account ing. You need to define a valuation area for each set of ac counting principles. You determine the valuation results and then post them separately for each valuation area. In Accounting, you can use the functions for valuating your financial positions for a specific key date. You use accruals/deferrals to determine for each valuation area the expenses and revenues from financial transactions or positions in the Transaction Manager for a given period and to assign them to the correct accounting period, irre spective of when they were actually due. You can use the valuation class transfer function for individ ual or multiple positions from the "Securities" and "OTC Transactions" areas. You can transfer securities positions either fully or partially to other valuation classes. You can reverse the valuation class transfer. You use the account assignment reference to control which G/L account in Financial Accounting is used to manage the respective position. You assign an account assignment reference to each posi tion. With the account assignment reference transfer, you can post positions with their book value from one account assignment reference to another. This is similar to how financial positions can be transferred between G/L accounts. SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions PUBLIC 259 Function Use Analyze Financial Transactions and Financial Positions You can use a range of reports to analyze your financial transactions and positions specific to a key date or period. These reports are based on logical databases. Further, you can define your own reports on the basis of these databases. Perform Clearing Threshold Reporting Non-financial counterparties (NFCs) of derivative financial instruments are not generally required to use a central clear ing partner to process these financial transactions. NFCs are required to perform clearing only in cases when they have not concluded these financial transactions for risk mitigation and when the rolling average position of these transactions exceeds the specified clearing threshold values continuously for a period of 30 days. Clearing Threshold Reporting (CTR) supports NFCs in monitoring their derivative financial trans actions that were not concluded for risk mitigation. Perform Trade Repository Reporting The trade repository reporting functions support you in cre ating trade repository messages. Once the process is com plete, your trade repository messages are available as a file on the application server for transfer to the trade repository. From the application server, you can also import and inter pret incoming messages for the trade repository and store them in Document Management. Determine Market Risks of Financial Transactions You can measure the market risk of your financial transac tions. You do this using mark-to-market methods, such as key figure analysis and NPV analysis. Furthermore, you can calculate your Value at Risk or your Cash Flow at Risk. Limit Counterparty Risks You can measure, analyze, and control or limit your counter party risk. Save and Analyze Position Components in the Result Data base and Use Position Components as the Basis for Calcu lating Additional Position Key Figures You can read the position component values of the positions and subpositions from the position management and store them as key figures in the Result Database. This enables you, for example, to store the position component values on a daily or weekly basis based on the original market data in the Result Database. You also can calculate your own position key figures (based on the original position components) that are not available in Position Management. From the Result Database, you can generate reports in the Analyzer Information System (AIS), which displays these key figures. 260 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions Function Manage Market Data Transfer Legacy Data Process Payments Using In-House Cash Transfer Data Using Standardized Interfaces Use In Market Data Management, you store the market data that you require for valuating and processing your financial trans actions (such as security prices, reference interest rates, vol atilities, and correlations). For this, you can use datafeed or the market data file interface. Using datafeed, you can auto mate the import of the required market data from your mar ket data provider. If you want implement the Transaction Manager and your data (legacy data) is in a source system, you need to ensure that this data is available in the Transaction Manager for a key date. Legacy data is transferred to the system using a process comprising a number of steps. However, for some of these steps, you have alternative ways of transferring data. System provides a BAdI with which you can connect pay ment programs, such as In-House Cash. The standardized interfaces known as Business Application Programming Interfaces (BAPIs) turn SAP applications into open systems that let you exchange data across system boundaries. 3.4.4 Commodity Risk Management Business Background With Commodity Risk Management you manage commodity futures, commodity forwards, commodity swaps, listed options, OTC options, and process the respective master and market data. The Commodity Risk Analytics supports you in analyzing commodity price risks for commodity derivative and logistics positions. Starting from commodity derivatives and/or logistics transactions, the commodity price risk-related information are derived from the document flows. Commodity Risk Management also uses selected functions of Treasury and Risk Management. SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions PUBLIC 261 Key Features The following table explains the available key features: Key Feature Use Market Data Management Based on DCS Derivative Contract Specifications The market data is based on derivative contract specifications (DCS) re flecting rules and conditions agreed upon at an exchange or with other market data providers, and specifies the underlying commodity. The DCS is used for the automatic determination of maturity key dates, quotations, and trading periods. Price data of commodity derivative transactions is related to DCS-based market data. This applies also to the Commodity Pricing Engine (CPE) for purchasing and sales documents. Based on the DCS and market identification codes (MIC), the price data can be entered for defined price types and key dates, which determine specific contracts. MICs are not required for commodity forward. Commodity prices can be manually entered or uploaded by Microsoft Ex cel© files. DCS-Based Commodity Curves Commodity curves enable market data valuations. For the creation of a com modity curve, the system determines available market data and constructs the curve based on existing grid points. Datafeed Current and historical financial market data can be uploaded from external market data providers to the DCS-Based Market Data Management. A remote function call connection can be set up. Master Data Management You can enter and process master data for the DCS, the underlying commod ity, and commodity curves. Commodity Derivatives With the financial transaction framework in Treasury and Risk Management, you can enter and process commodity derivatives of the derivative categories Commodity Future, Commodity Forward, Commodity Swap, Listed Option , and OTC Option. Furthermore, there is a settlement function to support the follow-up process ing like payments and postings. Free Characteristics You can define individual free characteristics, assign them to financial transac tions, and use them for reporting purposes. 262 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions Key Feature Use Determination and Distribution of Com modity Price Risks of Logistics Transac tions Commodity Price Risk Determination Commodity price risk-related information are derived from logistics document flows starting from sales contracts and purchase orders. Contractual price exposures and market price exposures can be determined based on pricing conditions. Exposure quantities in document flows are deter mined based on best available information (like updated delivery dates and batch information in goods receipts or deliveries). Reporting dates of exposure quantities are defined by the referenced quotation dates and commodity futures in the commodity pricing. Risk Distribution In sales contracts, commodity price risk quantities can be divided into periods. The periods and the distribution of item quantities to commodity price risk pe riods are defined in risk distribution profiles. Free Characteristics You can define individual free characteristics, assigned them to logistics docu ments, and use them for reporting purposes Determination of Commodity Price Risks from Commodity Derivatives Commodity price risks are derived from the life cycle of the commodity deriva tives, starting from the contract creation until it's maturity. Reporting dates of exposure positions are determined by the referenced quo tation dates and respective commodity derivatives. SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions PUBLIC 263 Key Feature Use Commodity Risk Analytics with CDS Views Commodity Risk Analytics comprises Commodity Position Reporting, Mark-toMarket Reporting, and Profit and Loss Reporting for commodity derivatives (commodity futures, commodity forwards, commodity swaps, OTC options, and listed options) and/or logistics documents and material stock. Commodity Risk Analytics supports a snapshot-based and, in most cases, a real-time reporting, calculating risk-relevant key figures. It allows a conversion of mass and volume unit of measures for all quantitybased key figures, and supports the reporting in quotation, payment and sta tistics currency. All available queries can be used by any tool that supports CDS views, such as Analysis for Microsoft Excel. Commodity Risk Analytics allows you to extend the provided queries in order to append your individual free characteristics. Commodity Position Reporting Commodity Position Reporting enables you to analyze the price risk quantities of commodity positions resulting from commodity derivatives and/or logistics transactions and material stock. These reports show key figures for outright exposure quantities, priced and un priced commodity position quantities. Mark-to-Market Reporting The Mark-to-Market Reporting calculates and shows you the undiscounted MtM values, contract values and market values for commodity derivatives and/or unrealized logistics documents and material stock, as well as the MtM changes between two evaluation dates. Profit and Loss Reporting The Profit and Loss Reporting enhances the Mark-to-Market Reporting and is aimed to explain the root causes for changes in MtM values between two evalu ation dates. The P/L attribution shows how much each event (price and/or quantity change) has attributed to the MtM delta values for a certain period. 264 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions 3.4.5 Financial Operations 3.4.5.1 Receivables Management 3.4.5.1.1 Collections Management Business Background Collections Management supports you in proactive receivables management and collecting outstanding receivables. Using collection strategies, you can valuate and prioritize customers from a receivables management view. Customers that fulfill the rules defined in a strategy are distributed to work lists. You can call up your work lists and initiate contact with your customers in their order of priority. Once you have contacted the customer, you can document the result by creating a promise to pay, by setting the customer to resubmission or, if you are also using dispute management, by creating a dispute case. Key Features The following table explains the key features available: Key Feature Managing Master Data Creating Work Lists Customer Contact Supporting Collections Activities Monitoring of Incoming Payments Use You can manage collection-specific data of business partners and use it for in tegration with other functions. Data, such as risk class and score, is included to the collection profiles of your business partners, if you are also using credit management. You can create collections work lists based on your collections strategy and team management principles and based on the accounts receivable data. You can prepare customer contact by checking valuation of customers accord ing to your collection strategy. You can get an overview of customer accounts and view past contacts and past payments. You can check resubmissions and choose contact persons. As a collector on the phone, you can renew promises to pay, create resubmis sions and document your customer contacts. If you are also using dispute man agement, you can create dispute cases. You can check, whether incoming payments are received as promised and, if you are also using dispute management, you can check the dispute status of payments. SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions PUBLIC 265 Key Feature Supervise Collection Process Use As a team leader, you can monitor the work list progress and reassign work list items. You can assign the work list items to the collection specialists, both, manually and automatically. 3.4.5.1.2 Credit Evaluation and Management Business Background The creditworthiness and payment behavior of your business partners affect the business results of your company immediately. You use credit evaluation and management to reduce the risk of financial losses and to optimize business relationships with your business partners. It supports your company in determining the risk of losses on receivables from your business partners early and in making credit decisions efficiently, and even automated. Key Features The following table explains the key features available: Key Feature Master Data Business Partner Scoring Credit Limit Request Credit Evaluation and Analyses Use You can manage all credit-relevant master data of a business partner. This data includes the current credit limit, credit score and the risk class. Master data fields have a change history with information about the user, the time of change and the changed values. You can have the scores determined by the master data of the business part ner, as for example by the country/region of origin, or by the payment behavior. You can calculate the credit limit of a business partner automatically and im plement an approval procedure where changes to a credit limit can be checked and approved by a the credit controller responsible. You can display credit-relevant data of your business partners, such as pay ment behavior summary, credit exposure or credit limit utilization. You can an alyze credit profiles and credit limit utilization of business partners. 266 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions Key Feature Documented Credit Decision Use To make decisions about blocked sales orders or the amount of the credit limit quickly, credit evaluation and management supports the credit controller in de termining the required customer-related data and analyses. Negative credit decisions are saved, together with the data that lead to the de cision as documented credit decisions. You can process blocked sales orders in a work list with documented credit decisions. 3.4.5.1.3 Dispute Management Business Background Dispute Management allows you to investigate and resolve dispute cases for open invoices. For example, In business relationships, business partners frequently reduce the amounts of payments. These reductions have usually not been agreed with the payment recipient and therefore, the payment recipient has to investigate and resolve them. With dispute management you can organize and store all information and documents related to a dispute case. This includes data that already exists in accounting and new data that you enter when creating a dispute case. The dispute cases can be processed by the colleagues responsible in your company. Key Features The following table explains the key features available: Key Feature Use Organizing Documents Related to Dispute You can organize and store all information and documents related to a dispute Cases case, such as sales orders, invoices or attachments. Processing Dispute Cases You can create dispute cases, for example when post processing an account statement or during analysis of overdue open items. When you create a dispute case, the system copies automatically information from the journal entry, for example, the disputed amount, into the dispute case. You can also configure the system so that dispute cases are opened or closed automatically based on payments received. You can set and release dunning blocks and create correspondence, either manually, or configure the system so that correspondence is send automatically to your customers. SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions PUBLIC 267 Key Feature Use Integration with Accounts Receivable You can manage dispute cases that refer to accounts receivable, such as un derpayments or overdue items. You can make dispute cases visible in the ac counting transactions and update the information in the dispute case in clear ing transactions, such as in incoming payments or offsetting credit memos. So you can include other colleagues and departments in finding a solution to the dispute case from transactions that they know. All colleagues can check the current status of the dispute case. In clearing transactions the dispute cases are updated automatically and the processor of the dispute case is always in formed about the last activities in accounting. Assigning Credit Memos and Payments You can assign credit memos and payments to open invoices. When the sys tem clears an invoice for which a dispute case with credit memo or payment exists, the dispute case is updated. Analyzing Dispute Cases Reporting allows you to detect quality issues, control the workload, track the dispute process and manage deductions per customer. 3.4.6 Contract Accounting Business Background Contract Accounting provides the same functional scope as Receivables Management and Payment Handling in LoB Commerce. 3.4.7 Real Estate Management 3.4.7.1 Real Estate Management Business Background Real Estate Management is a comprehensive software solution with the ability to boost profitability by managing your real estate portfolio - irrespective of whether you manage corporate, commercial, or residential real estate. 268 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions Key Features The following table explains the key features available: Key Feature Property Portfolio CAD Integration Contracts Critical Dates Sales-Based Leases Financial Accounting Integration Use You can use this feature to create master data objects required to manage your real estate portfolio. You can integrate SAP 3D Visual Enterprise with real estate master data. CAD providers can use a standard interface to integrate other CAD solutions. You can create contract offers and contracts to map contractual relationships with your business partners. The contract type determines whether a contract is a lease-in (landlord/vendor contract) or a lease-out (tenant/customer con tract) as well as whether it is for properties or non-properties. It is also possible to create contracts for services, sales, or security deposit agreements. You can manage all important data in the contract, including terms and conditions, crit ical dates, contract objects, business partners, service charge settlement pa rameters, condition adjustment rules, and the cash flow. You can use this feature to define reminder dates, on which real estate objects or contracts are checked and submitted for continued processing. You can manage sales-based and consumption-based lease agreements in a contract. You are able to report sales or consumption for different product types on a periodic basis for calculating and settling sales-based rent. Your posting-relevant flows can be posted in financial accounting. Beside peri odic postings based on contract conditions, you can also make postings for processes (for example, service charge settlement and sales-based settle ment), one-time postings, and accrual/deferral postings. You can manage out going and incoming payments for contracts, account statements (electronic bank statements and postprocessing of account statements), and dunning within financial accounting. You can use functions like cost planning, assess ment, and settlement also for real estate objects. SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions PUBLIC 269 Key Feature Adjustment of Conditions Service Charge Settlement Third Party Management Corporate Real Estate Management Land Management Information System Correspondence Use You can use this feature to automatically adjust conditions using different cal culation methods: Free adjustment (residential/commercial) Index adjustment (adjustment based on index levels) Adjustment based on representative list of rents (apartment) Adjustment based on comparative apartment rent (apartment) Adjustment based on modernization measure (renovation or moderniza tion of real estate object) Service charge settlement (adjustment of advance payments and flat rates) You can maintain and adjust conditions on contracts or on the following real estate objects: pooled spaces, rental spaces, and rental units. You can use this feature to calculate and distribute apportionable costs for the use and maintenance of real estate (for example, heating, janitorial services, cleaning, repairs) to the tenants occupying the space, for a particular settle ment period, according to a number of different parameters. The service charge settlement, or charge-back process ensures that operating costs for services are accurately determined and billed. You can manage real estate objects that are owned by others. A specialized type of third-party management is acting on behalf of a condominium owners' association (COA). You can use this feature to optimize your internal room and space manage ment. You can plan and execute internal moves for the occupants of rooms. You can reserve meeting rooms and spaces for short periods of time. This feature integrates your company's internal view with the public and legal view of land management. You can depict land registers, parcels and other public registers, link them to other master data objects, set up contracts, and run reports. You can use reports to collect, summarize, and evaluate data all around real es tate management (for example, master data, contract data, and flow data). You can create documents (in letter form, e-mail or fax) and send them to your business partners. You can either use standard correspondence or modify the correspondence to your individual needs. 270 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions 3.5 Manufacturing 3.5.1 Production Planning 3.5.1.1 Production Planning and Detailed Scheduling Business Background You use Production Planning and Detailed Scheduling (PP/DS) for SAP S/4HANA as a production planner to create finite production plans taking into account resource schedule, component availability and order dates/ times in detail. Typically, you use PP/DS to plan your critical products and bottleneck resources. Key Features The following table explains the key features available: Key Feature Use Create proposals for in-house production or external procurement to cover product requirements You can create proposals for both internal production and external procure ment with dates and times across multiple plants to cover material shortages. You can create production plans either with automated production planning run using heuristics or with manual intervention. Optimize plan and sequence the resource schedule and the order dates/times You can adopt a finite plan taking resource availability and capacity into ac count. With a finite plan, hard constraints modelled in the system are taken into consideration. You can automate the optimization of the plan according to certain criteria, such as setup times and setup costs, to achieve a finite plan or to improve the planning situation. You can sequence planned orders on production lines for individual lines or for a complete line network. Your order sequence takes required dates and restric tions into account with minimal possible violations. You can enable continuous production, particularly in process industry by ad justing the duration of production without changing the order quantity. Create proposal based on simulative plan ning parameters You can create proposals for both internal production and external procure ment with dates and time based on simulative planning parameters, without affecting operative planning. SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions PUBLIC 271 Key Feature Planning with Characteristics Execute and monitor production at de fined reporting points Use You can use planning with characteristics where receipts are consumed with requirements, based on matching characteristic values. You can plan or pre-as sign resource capacities for products with specific attributes, with the purpose of using the capacities more rationally. You can enter and monitor production confirmation (backflushing) for planned orders with defined reporting points. 3.5.1.2 Demand-Driven Replenishment Business Background Demand-Driven Replenishment enables you to plan and manage supply chains based on customer demand, rather than through traditional MRP procedures. You can create the basis for a reliable material flow by defining buffers at strategically important points along a supply chain and by regularly adjusting the buffers' limits. Key Features The following table explains the key features available: Key Feature Analyze and classify products Select products relevant to DemandDriven Replenishment Generate buffer level proposals Manage buffer levels Use You can analyze and classify your products based on certain criteria to identify products which can act as decoupling points. You can automate the classification process by scheduling classification runs to be executed on a regular basis. You can define which products are relevant to Demand-Driven Replenishment using classification information. You can generate buffer (stock) level proposals for your products that are rele vant to demand-driven replenishment (DD-relevant products). You can automate the generation of buffer level proposals by scheduling runs to be executed on a regular basis. You can manage the buffer levels, and in turn, the safety stock, reorder point, and maximum stock for your products based on the buffer level proposals. 272 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions Key Feature Monitor replenishment planning Monitor replenishment execution Use You can monitor the planning status of buffers using their planning priority. You can monitor the execution status of buffers using their on-hand stock sta tus. 3.5.2 Manufacturing for Production Engineering and Operations 3.5.2.1 Manufacturing Engineering and Process Planning 3.5.2.1.1 Production BOM Management Business Background During the product engineering phase, you design and develop products. You design new products or product lines to take advantage of current process technology and to improve quality and reliability, for example. One of the most important outcomes of this is the list of components required to produce the product - this list is the bill of material. Key Features The following table explains the key features available: SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions PUBLIC 273 Key Feature Use Manage new or changed EBOM versions You determine the correct area of responsibility for new or changed EBOMs so that they can be grouped in the right manufacturing change record for initiat ing the manufacturing handover process. You can search for EBOMs in different states and do the following: If available, determine the relevant change records and planning scope for the EBOMs and assign them to a change record. Navigate to the change record for further processing for the EBOMs that are already assigned to a change record. Create a change record and assign the planning scope and EBOM to it. Create a planning scope for a new EBOM and link the EBOM to it. Automatically propose similar EBOMs and assign all of them to the same change record. Manage new or changed MBOM versions You can search for new or changed MBOMs and assign them to a change re cord. You can also search for MBOMs that are already assigned to a change re cord and navigate to the change record for further processing. You can create a change record and assign the MBOMs to it. Analyze change impact The change impact analysis helps you to find different manufacturing-related objects that may be affected by a change to an existing object such as an engi neering BOM, manufacturing BOM, or routing. After the related objects are de termined, you can take some quick action such as putting the production order on hold. You can also add the object to the change record to take action on them later in the context of the change cycle. Compare BOM changes You can compare two material based bills of material for the purpose of report ing the BOM change in part content. BOM change usually compares two revi sions of the EBOM for a part but may also be used to compare EBOMs for two different parts. It allows you to: Compare two versions of EBOM for the net change analysis. Identify whether an object has been impacted by change. Identify the components which have been impacted by change. 3.5.2.1.2 Shop Floor Routing Management Business Background During the production engineering phase, you design and continuously improve manufacturing equipment, production facilities, and manufacturing procedures. This process enables you to model a detailed execution plan including required quality steps. 274 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions Key Features The following table explains the key features available: Key Feature Use Manage version-controlled routings Model a detailed production process Create operation activities Set a change alert count You can create multiple routing versions for a routing group and counter. Each routing version has its own release status. Released routing versions can be used in production execution and can therefore no longer be changed. If you want to make changes to a routing version, you have to create a new routing version. You can copy a released version and make the necessary changes. The new routing version cannot be used in production execution while in process. This procedure guarantees consistency in production execution. You define the validity period for the routing version in the production version. A shop floor routing provides a very detailed description of the operations and operation activities that have to be carried out and the order in which they have to be carried out to produce a material. In addition, the routing contains details about the work centers at which the operations and operation activities are processed and the MBOM components that are required. You can model the process in detail in the routing workbench. You can create operation activities in the routing workbench. You use these op eration activities to model the steps to be performed in production in greater detail. You assign each operation activity a status and action schema (SAS) that defines the statuses and possible transitions that are allowed for the oper ation activity. You can use any-order groups to define a set of operation activi ties that can be completed in any sequence. You can enter a change alert count for each operation activity when maintain ing the routing version. A change alert notifies the operator in production about engineering changes and highlights such changes. By setting a counter in the operation activity, you can stipulate that the receipt of this change infor mation has to be acknowledged once or several times. This ensures that engi neering changes are visible and correctly implemented. Create work instructions for operation ac tivities (also using standard texts) You can create detailed work instructions for operation activities that are made available to the production operator on the shop floor before starting the activ ity. You can create or reuse standard texts and images. That is, you can reference or copy existing standard texts or images into work instructions thus reducing the effort involved in creating and maintaining work instructions. Assign components to operation activities You can assign components to the operation activities for which they are re quired. The assignment to operations is then done implicitly by the system and this information is displayed accordingly. The assignment at operation activity level is relevant for execution. Assign inspection characteristics to oper You can assign inspection characteristics to operation activities. These inspec ation activities tion characteristics are used to describe the inspection criteria. SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions PUBLIC 275 Key Feature Use Assign PRTs to operation activities You can assign PRTs to operation activities. This information is made available to the production operator on the shop floor before starting the activity. Assign certifications to operation activi ties You can assign required certifications to operation activities. You can use certif ications to ensure that only qualified production operators perform critical or difficult operation activities. Certifications are assigned to the production oper ators and the system checks that the certification requirements are fulfilled when the operator starts the operation activity. Assign buyoff cycles to operation activities You can assign buyoff cycles to operation activities. A buyoff is a confirmation that an operation activity was performed as defined in the routing. When maintaining the operation activity, you can create a new buyoff sequence or you can assign a predefined buyoff cycle template. A buyoff cycle template defines all the required experts who have to check the quality of an operation activity. If a buyoff cycle template has been assigned to an operation activity, this activity cannot be completed in production execution until all buyoffs have been fulfilled. Manage action handlers for operation ac tivities You can display available action handlers and their parameters and parameter values. You can also add further action handlers specifically for a particular routing. Maintain production versions The production version determines the production techniques according to which a material is to be manufactured. A material may have several bills of material (MBOMs) and several routings used for its production. You define which MBOM and which routing combination is to be used for which validity period in the production version that you assign to a material in the material master. In addition, the production version controls the validity of the MBOM and routing versions. 3.5.2.2 Extended Manufacturing Operations 3.5.2.2.1 Production Control Business Background This process enables you to manage and regulate the manufacturing process. It is typically performed by the production supervisor who monitors production progress and reacts to issues such as missing components, delays, holds, or quality issues. 276 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions Key Features The following table explains the key features available: Key Feature Use Monitor production order progress You have up-to-date information regarding the processing status of all orders focusing on exception situations. Read production order master data You can update the production order with the latest version of the bill of mate rials and shop floor routing before releasing it. Change dates and quantities for a produc You can change basic dates and quantities for a production order. tion order Monitor production operation progress You have up-to-date information regarding the processing status of all opera tions focusing on exception situations. You can also navigate to the operation activity view of the operations. Release production orders/operations You can trigger the production process by releasing the production order or its operations. Put objects on hold and release them again You can temporarily block production by placing orders, materials, operations, or work centers on hold. When placing the object on hold, you can specify a reason code and note. Once the issue has been solved, you can release the hold. You have the tools you need to monitor all objects that are currently on hold as well as holds that have been released. Reprocess materials movements Monitor and track production You can view failed material movements to determine why they failed. You can navigate to the material and correct the problem. You can then reprocess the material movement. You have reports that document how the product was manufactured. 3.5.2.2.2 Production Execution Business Background This capability enables you to make all the necessary preparations required for production. It provides support with the actual production process and also enables you to document production progress. It is typically performed by the production operator. SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions PUBLIC 277 Key Features The following table explains the key features available: Key Feature Use Display queue per work center Check execution feasibility View detailed work instructions You have access to all operations assigned to your work centers. This informa tion is split into operations that are in progress, not yet started, or finished. You can see the progress of the production operations as well as the current issues - whether an operation is on hold, delayed, or has component issues. Based on this information, you can decide which operation you need to work on next. You can check whether you can start a new operation activity. For example, the predecessor activity must be completed before the current activity can be started or the work center, material, or production order must not be on hold. You can use action handlers to implement additional checks. While processing an operation activity, you are provided with detailed work in structions. You can use a 3D image that interacts with the component list to identify required parts and where they should be assembled. Acknowledge change alerts You are informed about engineering changes by change alerts. You have to read and acknowledge such changes before you can start the operation activ ity. View detailed information You have access to all the information that you need to execute the operation activity before you start work. This information also includes the necessary components, PRTs, or inspection characteristics. The information is main tained in the routing and made available when processing an operation activity. Process operation activities You can use actions such as start, pause, skip, scrap, or complete to record the processing path through production. The system only provides actions that are allowed for the current status. The actions available for each status are deter mined by the status and action schema (SAS) that is assigned to the operation activity in the routing. You can also specify a reason code or note for an action. Record yield and scrap for an activity if material is not serialized You can record the yield and scrap quantities for an operation activity. Record completion for serialized materials You can record the completion of a single material item at an operation activity. Record scrap for serialized materials Record inspection characteristic values You can record scrap for a single material item at an operation activity. You can enter a reason code and a note when scrapping if enabled in configuration. You can enter values for inspection characteristics. The system also provides information on the minimum and maximum values allowed for an inspection characteristic. 278 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions Key Feature Record serial numbers and batch num bers of components Perform buyoff Use You can record the serial or batch number of consumed components. This in formation is used for traceability purposes and is available in reports that mon itor and track production. You can acknowledge that an operation activity has been processed correctly. If a buyoff cycle has been assigned to an operation activity, this activity cannot be completed until all buyoffs have been fulfilled. 3.5.3 Extended Production Scheduling and Delivery Planning 3.5.3.1 Advanced Order Promising/ATP Business Background Internal sales representatives, order fulfillment managers and order fulfillment specialists require mechanisms to configure, execute and monitor availability checks and optimize the distribution of supply. This is particularly important when the availability of materials needed to confirm requirements is limited. You can use the advanced available-to-promise (ATP) capabilities to confirm on which date and in which quantity a requirement can be fulfilled. Key Features The following features are available: Key Feature Product Availability Check Product Allocation Use You can use this feature to determine on which date and in which quantity a re quirement can be confirmed, based on a specified checking rule and the cur rent supply situation for a specific material. The availability check takes con current requirements of differing types and their respective confirmation situa tion into consideration. You can use this feature to allocate material quantities for a specific time pe riod and to a combination of characteristic values for sales orders and stock transport orders, against which availability checks can be run. SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions PUBLIC 279 Key Feature Backorder Processing Release for Delivery Use You can use this feature to re-prioritize sales orders and stock transport orders and perform automated mass availability checks to ensure that a limited sup ply of material is distributed in accordance with a specific strategy. Optionally, your system assigns specific supply elements to the individual requirements. You can monitor the check results and, if necessary, re-run the check to im prove the confirmations for the requirements. You can use this feature to manually re-prioritize due sales orders to ensure that a limited supply of material is distributed in accordance with a dedicated strategy and available supply. After re-prioritization, you can trigger subse quent logistics processes. 3.6 R&D / Engineering 3.6.1 Enterprise Portfolio and Project Management 3.6.1.1 Portfolio Management Business Background Portfolio Management capabilities give high-level visibility over the entire project portfolio, portfolio analytics and resources. Portfolio Management provides a comprehensive and up-to-date view of the entire portfolio of company projects to present the full extent of project risks and opportunities. It allows you to overcome delays that can occur as information is collected from disparate sources. Portfolio Management gathers diverse data into dashboards which act as a starting point for portfolio analysis. Portfolio Management integrates information from existing project management, human resources, and financial systems to provide an overview of the project portfolio and resource availability, and it provides easy drilldown to details. 280 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions Key Features The following table explains the key features available: Key Feature Use Portfolio and bucket hierarchy manage ment You use a portfolio to map the strategic structure of a company. There could either be one portfolio for the overall company, or different portfolios, reflecting independently managed areas. One portfolio is a single entity and not re lated to other portfolios. The overall structure of a portfolio is reflected in the hierarchy of buckets. This allows you a flexible categorization of portfolios. Portfolio Management sup ports multi-level portfolio hierarchies. Buckets represent, for example, product lines, organizational or regional struc tures. Once you have set up the bucket hierarchy, you can add items to the buckets, plan the budgets and the resources and do the assignment accord ingly. You can also create alternative portfolio hierarchies. Item management You use portfolio items to represent, for example, proposals, projects, con cepts (anything that should be analyzed within a portfolio). Portfolio items can have dependencies to other items. You can create versions of a portfolio item. You can create versions of an item or of a portfolio initiative (initiative) to document the status of an item at a cer tain point in time (snapshot) or to simulate changes (simulation). Decision points represent gates through which an item passes, for example, from specification to design or from design to implementation. Each decision point can have several configurable status values. Initiative management You use an initiative to manage a set of portfolio items to achieve a specific goal of a bucket. For example, a new product initiative represents all phases of discovering, designing, developing, go to market, and maintenance of a single product. Each initiative is assigned to a certain bucket and different items can be assigned to an initiative. It consists of a set of attributes and as well as, for example, questionnaires or scoring models. You can define persons responsi ble for initiatives by staffing roles. You can use the checklists function to create and edit checklists and checklist items of initiatives. Checklists help you to de fine the deliverables, such as KPIs or documents that are mandatory for a phase approval. You can monitor the status of the deliverables. Collection management You can group related portfolio items with a common strategic goal to collec tions. A collection has its own reporting cockpit to enable portfolio managers to monitor the performance of the collection. SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions PUBLIC 281 Key Feature Review management Financial and capacity planning Scoring and questionnaires What-if scenario management Printing of forms Managing Documents Authorizations at object level Use Portfolio reviews enable you as a portfolio manager to make fact-based deci sions. A review can take place when a certain item or initiative has reached a certain decision point, for example. The portfolio items within a review are eval uated and compared within scoreboards. You use financial and capacity planning to store and plan financial and capacity data for your project and to maintain actual cost data. You can maintain financial and capacity planning data for a bucket, item, and initiative. You can view financial and capacity data on different levels, for example actual or planned costs, labor cost or material costs, cost for furniture or equipment. You can aggregate financial and capacity data from between items, initiatives, and buckets using rollup. You can integrate data from the Finance area of SAP S/4HANA or from Project Management. You can define that financial and capacity planning data for an item or an item of initiative is retrieved from a financial and controlling system or project man agement instead of manually entering the data. In the item financial planning, you can see the actual costs stored in the Finance area of SAP S/4HANA. You can compare portfolio items or initiatives in a scoring model based on quantitative key performance indicators. This enables decision makers to make educated decisions on portfolio items or initiatives. For the aggregation of data, you can implement different scoring models. The quantitative scores of a scoring model are retrieved either from portfolio item or initiative attrib utes or can be filled by results of questionnaires. Based on questionnaires, you can use qualitative criteria to get numerical scores for risk, strategic fit, feasi bility, and other types of soft data of portfolio items or initiatives. You can simulate changes in the budget assignment or capacity assignment and find out what the impact is on the respective items. You can see the result of the simulation in the reporting cockpit, such as the reviewed items. You use what-if scenarios to support your decisions. You can preview and print the detailed data of items and initiatives. The data printed in the PDF-based print form reflects the data that is displayed on the user interface. You can configure the PDF-based print form so that the data is displayed and printed according to your needs. You can manage your documents in Portfolio Management using a document repository. You can define object-specific authorizations for portfolios, buckets, items, ini tiatives, reviews, collections and decision points. 282 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions Key Feature Use Export or import of project data You can use the following import and export functions to exchange data be tween Portfolio Management and other applications: You can import or export a project associated with a portfolio item from or to a generic XML file. You can import or export project data from or to the project system in SAP S/4HANA. You can import data from Project Management into Portfolio Manage ment. You can export project data from Portfolio Management to a project man agement system that is installed on a different server. For more import/export functions see the Project Management chapter. Recording changes / change document A change document in Portfolio Management provides electronic documenta tion of changes made to attributes of objects or entities. Depending on the set tings in the data dictionary and Customizing settings, change documents can be generated in the context of new object creation, change or deletion of ob jects or entities. If you have activated change documents for an object, the sys tem tracks all attribute changes to these objects. Archiving You can archive the data of the following objects: Portfolios Buckets Items Collections Initiatives Reviews 3.6.1.2 Project Management Business Background Project Management helps you standardize and improve project management execution and reduce associated administrative and system costs, by providing reliable project management functions that can be deployed independently or integrated into your, for example, Human Resources or Financials back-end system. Project Management is ideal for managing phase-based projects. It delivers highly specialized support for product development, IT, or other types of projects. It supports structuring, scheduling, visualization, operative planning, and execution. SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions PUBLIC 283 Key Features The following table explains the key features available: Key Feature Project elements Displaying and editing project details Project templates Use You use the following project elements to reflect the projects of your company: Project Definition: A Project definition is the project element at the highest hierarchy level of a project. The project definition contains general data of the project and information that is valid for the whole project. Phases: A phase is a clearly defined period in a project. A phase belongs to the project definition and and you can further subdivide a phase using checklists and tasks. Tasks: In projects, tasks help to record and structure necessary process ing steps. You can assign tasks, for example, to a project definition or a phase. Checklists and checklist items: Checklist items represent important re quirements that have to be met in order to achieve the project goal. Project participants check off the items they have finished. You can group checklist items in a checklist. Roles: A role represents a position in a project, for example, the role of consultant in a consulting project. The role describes which type of re source is required in a project, that is, which function the resource carries out in the project. The role includes information about the qualifications that the resource should have and when and for how long the resource should be available. You use various apps, dashboards and views (including Gantt chart) to get an overview of your projects, to get a detailed insight into the project details, and to edit your projects. You can create templates that you can use every time you create a project. This allows you to better standardize your projects. You can create templates for the following objects: Projects Checklists Documents You can include phases, tasks, and checklist items from project templates or checklist templates in operational projects or other templates along with the lower-level project elements that belong to them. The subtrees are copied when you do this. 284 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions Key Feature Scheduling Confirmation Project versions Use You can use the following functions to schedule your projects: For each project type, you can choose whether you want to use bottom-up scheduling or top-down scheduling. You can enter fixed dates for the project elements. If you do not enter fixed dates for the project, the system sets the current date as the start date. The system calculates the finish date from the remaining project data dur ing scheduling. You can enter phase dates that overlap as well as task dates or checklist item dates that are outside the phase dates. The system informs you if the dates overlap each other by displaying messages in the log. The system uses messages to inform you of any conflict situations during scheduling, for example, if task dates are outside the time frame of phases during topdown scheduling. You can enter a duration for phases and tasks. You can enter fixed dates for the planned start and the planned finish, and can assign a calendar for project definitions, phases, and tasks. For checklist items, you can only enter a fixed date for the planned finish. You can schedule each project element individually. When the dates are scheduled, the dates of the dependent project elements (lower-level ele ments and linked elements) are taken into account and also scheduled. You can confirm tasks or checklist items in Project Management. You can create project versions for operational projects. The following version types are available: Snapshots enable you to create a momentary representation of an opera tional project so that you can track the status of the project at different times. Snapshots cannot be changed. You can create simulations to test, for example, the effects certain changes will have on an operational project. You can save simulations and call them again later on. If the changes produce the desired result, you can reconcile the simulation with another simulation or with the operational project. SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions PUBLIC 285 Key Feature Accounting integration Multi-project management Multi-project monitor Object links Managing documents Integration with Portfolio Management Use You can monitor the costs and revenues throughout the duration of the project. You can use this function to carry out preliminary costing for the costs and rev enues. Once the project has started, you can analyze the costs and compare them to the planning data at any time. You can measure the success at the end of the project. Project accounting offers different scenarios: Task-based or role-based: You can enter planned times as either work for tasks or demand for roles or assigned effort for resources. In order to rep resent both of these options in costing, you can carry out task-based or role-based costing. Account assignment object: Internal order or WBS element Manual or automatic: Manual or automatic assignment of the accounting object You can map cross-project relationships. The following inter-project link sce narios are available for this purpose: Subproject: When you work with subprojects, a task of a project is created as a separate subproject, for example, because a different department or a subcontractor is responsible for the task. To map this relationship, you create an inter-project link between the task of the master project and the project definition of the subproject. Mirrored task: If tasks or phases of a project are influenced by another task (see original task) in a different project, the project leader of the de pendent project must be informed about changes made to the original task. For this purpose, you can include the original task as a mirrored task in the structure of the existing project. Program: Larger projects are often realized in several different projects that belong together. In order to map these complex project structures, you can assign other projects or programs to a project with the project category program You can call and compare multiple projects, tasks, or checklist items at the same time. Business objects important to a project can be located in different systems. Since it is important to have an overview of these objects directly in Project Management, you can connect the objects which you defined or activated in Customizing for Project Management to the application as object links. You can create object links to various SAP objects. You can manage your documents in Portfolio Management using a document repository. You can assign projects to portfolio items. You can also assign phases to deci sion points in Portfolio Management at a lower level. This assignment is the ba sis for a synchronization between the objects in Project Management and Port folio Management. 286 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions Key Feature Use Project status reports You can summarize project data in reports and store them as project status re ports. The reports are created as interactive PDF documents and stored either in Project Management or in a document management system. The system provides a number of different report templates depending on the project type. These can contain different kinds of data. Evaluations Evaluations give you an overview of your project data. When you create an eval uation, the system checks whether predefined threshold values have been vio lated. You can base your evaluation on the current project data or the last ver sion of the data that was saved in the background. You can create evaluations for both operational projects and project versions. Authorizations at object level You can define object-specific authorizations for projects or parts of projects. Export or import of project data You can use the following import and export functions to exchange data be tween Project Management and other applications: You can import or export project data from or to Microsoft Project. You can import or export a project or version from or to an generic XML file. Recording changes / change document Project Management provides you with a means of recording changes that you can activate. If the option for recording changes is active for an object, changes you make to dependent objects are also recorded. For example, for projects, the system not only records changes you make to the project itself, but also re cords the changes to dependent objects such as the phases, checklists, appro vals, and roles. If, for example, you want to record changes to roles, the record ing option must be active for projects. Archiving You can archive project data and documents, which are assigned to projects. 3.6.1.3 Resource Management Business Background Resource Management provides planning tools to support you in planning and optimizing your human resource deployment within a project as well as across different projects. SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions PUBLIC 287 Key Features The following table explains the key features available: Key Feature Project resource planning Cross project resource planning Use You can use a planning tool to optimize your human resource deployment in a project. It focuses on using your employees efficiently and assigning them to projects based on demand, qualifications, and availability. It offers a role based resource management, and a project or line manager can staff resources on the project. The project lead first uses roles to depict which type of resource is required in a project, that is, which function the employee (resource) carries out in the project. A role represents a position in a project, for example, the role of con sultant in a consulting project. The role includes information about the qualifications the resource should have and when and for how long the resource should be available. The project lead can assign tasks to the roles or resources straight away. In the resource search, the system determines suitable resources for each role and task on the basis of their qualifications. The project lead's or customer's pre ferred resources can be stored as candidates in the system. In the staffing process, staffing or candidate managers can also determine re sources based on their availability. The project lead or resource manager can first reserve their preferred resource or assign the resource straight away. At the same time, the project lead can send e-mails to resources with details of the project, directly from the application. You can plan and optimize your human resource deployment across different projects. You as a resource manager get a quick overview of resources and the resource availability across multiple projects and roles. You get also an overview of the project and role staffing, the resource assign ment and the staffing across multiple roles, projects, and resources. As a re source or staffing manager, you can either maintaining assignment per re source in the individual periods or maintaining this data across a certain time range using distribution. 3.6.1.4 Commercial Project Management Business Background This function provides special features that help in the core business process requirements of companies that offer project-based services to their customers. Commercial Project Management covers multiple processes in 288 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions an end-to-end scenario spanning the selling, planning, executing, monitoring, and controlling of projects. Companies that sell projects (for example, in the professional services or the engineering, construction, and operations industries) can use these solutions to further professionalize their core business processes and expand beyond back office capabilities. SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions PUBLIC 289 Key Features The following table explains the key features available: Key Feature Project Workspace Use Project Workspace provides the following features: The commercial project that integrates multiple business objects that are used in a real-world project setup. A project workspace to monitor and manage the different aspects related to a commercial project. A framework to configure and personalize user-specific alerts and notifications. The ability to set up teams and assign roles and responsibilities to mem bers. A billing plan manager to plan and execute billing events such as fixed price and resource-related billing. The ability to report and manage qualitative project risks. The integration with Project Cost and Revenue Planning to enable project cost planners and controllers to plan and forecast project-related costs and revenues. The integration with Project Issue and Change Management to document, estimate, and track issues and changes that occur during project execu tion. Embedded Analytics, based on business intelligence (BI) queries, for re porting on the project cost status, progress, unbilled revenues, receiva bles, forecasting, earned value, cost performance index, scheduled per formance index and issue and change process. Key project information such as planned, actual, and forecast values are reported per month fol lowing the Gregorian calendar. Multiproject Overview provides information about all the projects for which a project manager is responsible. With this app, you can display KPIs such as planned and actual costs, planned and actual revenues, estimate at completion (EAC) costs, planned and actual margins, EAC revenues and margins, receivables, and unbilled revenues, for example. You can also use alerts, statuses and general information of the projects, with the ability to edit some features. Single-Project Overview provides a quick health check of the project to the project manager. You can view KPIs, statuses, EAC costs, EAC revenues, trends, margins, and alerts, for example. You can also drill down to de tailed information in the existing project workspace, for further actionable items. You can navigate to billing and procurement. Billing and Receivables Overview brings together project billing due dates, pending invoices, and payment history of one or more projects with ac cess to related finance documents, ensuring timely billing and invoicing for the services delivered. 290 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions Key Feature Use Procurement Overview provides a holistic view of the procurement of ma terial, services and subcontracts, with a view of expedited shipments, de livery and payment schedules, allowing you to coordinate the scheduled workflow of your project. Enabling of Enterprise Search based on the following business objects of Commercial Project Management: commercial projects, financial plans, issues, and change requests. With the use of APIs, you can create commercial projects and bid plans based on CRM opportunities. Ability to view and control change logs of specific fields in commercial projects, risks, checklists, and contact persons. SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions PUBLIC 291 Key Feature Project Cost and Revenue Planning Use Project Cost and Revenue Planning provides you with the following features: Planning scenarios to support key project planning activities such as re source planning, material planning, expense, and third-party planning. Harmonized input data and commercial-project-specific planning as sumptions through an interactive and iterative process. Ability to automate quantity, cost, and revenue forecasts Planning functions to support automatic valuation, cost and revenue cal culations, revaluations, forecasting, simulations, and data transfer. Process integration with key downstream processes such as resource management, procurement, and billing. Distribution key to define a curve based on which quantity, cost, and reve nue of a planned resource can be distributed across periods. Factors such as type of work or seasonality determine the distribution curves of a re source. Simplified integration that allows planning based on SAP Portfolio and Project Management structures linked to Project System (PS) projects. Ability to view and control change logs related to specific fields of financial plans, on the financial plan screen. A typical project lifecycle includes the following phases which are also rel evant for project cost and revenue planning: Bid and Proposal Estimation This phase usually involves planning the project in sufficient detail to support the creation of bids by providing a proposal or quotation. High-level financial plans are created for overall quantities and re quirements such as labor, materials, and expenses but perhaps not with as much detail such as specific resources or with specific subcontract quotes. Baseline Cost and Revenue Planning This phase involves planning the project baseline after a bid has been successfully won. Project planners or project managers create de tailed plans to arrive at detailed cost and revenue plans, and to facili tate subsequent execution activities such as resource management, procurement, and scheduling. Revisions and Supplements Revisions and supplements are typically carried out using a similar process to the original proposal and baseline phases. This allows for revision of financial quotes or execution plans based on the additional or changed work. Forecasting and Estimate to Completion Forecasting is often an iterative activity to determine the progress of the project and determine the potential outcome in terms of cost and final revenue. The method of forecasting depends on the type of busi ness (for example, engineering and construction or professional serv 292 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions Key Feature Project Issue and Change Management Use ices) and the type of project with different manual and automated ap proaches. Project Monitoring and Control Throughout project execution the project manager and the controller need to monitor the actual project results versus the plan at the ap propriate planning levels such as cost, revenue, or margin. All through the planning process and the execution phase it is neces sary in applicable scenarios to provide integration with the follow-on execution activities, which could include: Resource planning Purchasing Time and expense worklists Sales orders, billing plans Sales pricing Project Issue and Change Management provides you with the following fea tures: Processing of issue and change request activities relevant to different types of business objects Integration with the multiple application components in SAPS/4 HANA to allow the possibility to exchange data and post updates Cost and revenue planning of changes (if you are integrated with Project Cost and Revenue Planning Documentation and processing of project issues and changes using DMS documents, reference URLs, and attachments (such as word processing documents, spreadsheets, drawings) Reporting and analytics Integration with e-mail functions for notifications Collaboration among multiple stakeholders using activity management, which is tracked with statuses Approval process for changes Ability to control change logging related to specific fields on the change request and issue screens. SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions PUBLIC 293 3.6.2 Product Lifecycle Management 3.6.2.1 Product Development 3.6.2.1.1 Embedded Systems Development 3.6.2.1.1.1 Embedded Software Management Business Background Embedded software is computer software that is embedded in one or multiple products. It provides functions together with various hardware and systems. Embedded software has a specific requirement on the hardware and software that allows it to function accurately. To manage the compatibility information between a software and other parts of a product structure, you can use constraint management. Key Features The following table explains the key features available: Key Feature Managing Constraints Use You can view and maintain the compatibility information of the following: Hardware constraint: the compatibility between an embedded software and a hardware Software constraint: the compatibility between an embedded software and another software You can also check the software compatibility in a product structure after sim ulating the explosion of the product structure. 294 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions 3.6.2.1.2 Visual Instance Planner Business Background Visual Instance Planner (VIP) is an application that enriches the engineering structure of the Product Structure Management (PSM). The application is intended to bring 3D data into PSM using variant configuration. The application allows you to create variants based on the 3D data and map the geometric instances onto the variants. Key Features The following table explains the key features available: Key Feature Use Starting a planning session in Visual In stance Planner. This feature allows you to start a planning session to create variants and map geometric instances onto the variants directly from PSM. When planning is complete, the plan is saved back to PSM. Working with a product structure This feature allows you to modify, validate, and save the actions performed on the product structure. Adding instances to the product structure This feature allows you to assign geometric instances to the product structure. Adding instances automatically to the product structure This feature allows you to assign geometric instances automatically to the product structure. Maintaining object dependencies This feature allows you to display, create, or change object dependencies using the dependency maintenance tables for variant configuration on the Web UI. Navigating to product structure This feature allows you to view the product item and the product item variant if exists in the PSM Web User Interface. 3.6.2.1.3 Visual Asset Planner Business Background Visual Asset Planner is a solution for SAP Enterprise Asset Management (SAP EAM) for restructuring the design structure (derived from the CAD) to match the asset structure. It also creates 3D design data for the asset structure. You can load multiple SAP 3D Visual Enterprise source files or manufacturing bill of material (MBOM) with visual representation generated from SAP 3D Visual Enterprise Manufacturing Planner as source structure. You SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions PUBLIC 295 can also load functional location hierarchy, equipment (spare part), or equipment structure as a target structure. The solution allows you to create a visual link for these technical objects. Key Features The following table explains the key features available: Key Feature Use Starting a planning session in Visual Asset Planner This feature allows you to start a planning session to restructure the 3D design data from CAD to match the asset structure and create viewable for the asset from the SAP S/4HANA system. Working with functional location hierarchy planning Functional location hierarchy planning allows you to restructure the 3D design data and generate a file depicting the functional location hierarchy with the rel evant metadata tagging from SAP S/4HANA. The generated file can be used for maintenance and service purposes. The target for this scenario is a func tional location hierarchy and the file that is generated is linked to the top level functional location. Working with spare parts planning Spare parts planning allows you to create a visual spare parts file for an equip ment from document structure or material BOM which contains 3D files. The source for this scenario is an equipment and the generated file that is linked to equipment can be used for spare part selection process in Asset Management. Automatically assigning visual nodes to functional location or equipment hierar chy This feature allows you to automatically assign visual nodes to functional loca tion or equipment by comparing the metadata identifier between source and target structure. Automatic assignment is only possible for planning scenario functional location hierarchy planning. Saving and creating a document info re cord This feature allows you to save the asset planning at any point in time. This generates a VDS file by exporting the visuals from the target panel and the metadata from the target structure to be tagged onto the exported file. This file can then be linked to a new document which will be linked to the target func tional location as an object link. 3.6.2.1.4 SAP 3D Visual Enterprise Manufacturing Planner Business Background The SAP 3D Visual Enterprise Manufacturing Planner application supports you in creating and maintaining manufacturing structures (manufacturing bill of materials (MBOMs) and routings). The application uses engineering structures (engineering BOMs (EBOMs)) as input through a visually guided planning process. It allows you to visualize an engineering structure in the Source Panel and maintain MBOMs and routing in the Working Panel. You can visualize the final multilevel assemblies in the Target Panel. 296 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions Key Features The following table explains the key features available: Key Feature Use Managing planning scope alternative You can create a new planning scope alternative, change an existing one or delete a planning scope alternative. You can also search and start planning for an existing planning scope alternative based on its attributes Planning BOM and routing for a planning scope alternative You can visualize the engineering BOM (EBOM) and plan manufacturing MBOM (MBOM) as follows: By moving components from Source Panel to Target Panel By making a direct copy of the EBOM By creating your own custom assembly header By restructuring the planned MBOM to get the desired MBOM. Maintaining manufacturing structure and routing You can perform the following functions on the manufactur ing structure: Adding components from EBOM to MBOM Making a direct copy of an assembly (plan as designed) Creating a new manufacturing structure Creating a nonvisual component Restructuring assemblies in the planned MBOM Managing routing, quality notification, and object de pendency Exporting and uploading visual work instructions Allocating and deallocating a component from an oper ation Handling a phantom assembly Integrating with project systems Simulating and saving changes to a planning scope alterna tive When the manufacturing structure is ready, you can save it back to SAP S/4HANA. Based on the manufacturing struc ture in the planner, the MBOMs and routing component allo cation are updated in SAP S/4HANA. If the target MBOMs are configurable, the object dependency is also updated. You can also validate the manufacturing structure before saving to check for errors using Simulate Save option. Starting the application from Product Structure Manage ment Web User Interface For a planning scope alternative, when the engineering structure is a Product Structure Management (PSM) struc ture, you can also start planning from the PSM Web User In terface. SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions PUBLIC 297 3.6.2.1.5 Access Control Management Business Background Access Control Management allows you to control access to documents. You can grant access to users or user groups using access control contexts. Key Features The following table explains the key features available: Key Feature Use Controlling access to objects You can control access to a set of documents by assigning them to access con trol contexts. Context role administration You can grant access authorizations for a user through a context role. Transfer the ownership of objects You can transfer object ownership or assign objects to other contexts. Add users to user groups. With user groups you can manage authorizations in bulk when you use them with context roles. Display and analyze access authorizations You can display another user's access authorizations for a document and to of other users. determine the sources that grant these authorizations. 3.6.2.2 Recipe Development 3.6.2.2.1 Recipe and Formula Development Business Background You use Recipe Development to describe the manufacturing of products or the execution of a process. Recipes comprise information about the products and components of a process, the process steps to be executed, and the resources required for the production. The recipe types in Recipe Development enable you to create a general description of the requirements or concrete procedural instructions depending on your needs. Making the data of enterprise-wide recipes more concrete allows you derive site- and plant-specific recipes from it. 298 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions Key features The following features are available: Key feature Creating and managing recipes Creating and managing specifications Developing formulas Defining the recipe production process Creating and managing product labels Checking compliance of recipes and specifications Use Recipes comprise the information about the production process for a product, as well as the input and output sub stances and packaging used in that process. The different recipe types enable you to create a general description of the requirements or concrete procedural instructions depending on your needs. Based on the ingredients used, you can also carry out different calculations, for example to determine a product's nutritional value. You can also search and filter recipes based on a wide variety of search criteria and see which recipes contain certain in gredients (where-used). You can use the business object specification for the sub stance, packaging and recipe properties specification cate gories. Specifications are data objects that use value assign ments for physical and chemical data to define certain prop erties. Material and substance data of recipes is managed in formu las. Here, you store all the relevant information about the products and components of the process. You can define a sequence of chemical, physical, or biologi cal activities for converting, storing, or transporting material or energy. The process contains all the activities that are re quired to produce a product or different intermediate prod ucts. You use labeling to create and manage label sets. Label sets are based on specifications, and are used as input for final product label creation and label artwork design. They include lists of data for ingredients, qualitative information (such as nutrients), components and packaging. You can use compliance check to check whether a product complies with certain constraints. These can be, for exam ple, legal constraints or constraints laid down by an enter prise. Compliance check can be used for all substances for which a specification or recipe has been created. SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions PUBLIC 299 Related features Classification [page 99] Bills of Materials [page 96] Engineering Change Management [page 99] 3.6.2.2.2 Access Control Management Business Background Access Control Management allows you to control access to specifications, recipes and documents. You can grant access to users or user groups using access control contexts. Key Features The following table explains the key features available: Key Feature Use Controlling access to objects You can control access to a set of business objects by assigning them to ac cess control contexts. Context role administration You can grant access authorizations for a user through a context role. Transfer the ownership of objects You can transfer object ownership or assign objects to other contexts. Add users to user groups. With user groups you can manage authorizations in bulk when you use them with context roles. Display and analyze access authorizations You can display another user's access authorizations for a business object and of other users. to determine the sources that grant these authorizations. 300 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions 3.6.2.3 Handover to Manufacturing 3.6.2.3.1 Handing Over Product Structure for Production Business Background You can use this business process to define a transition of product structures from engineering, such as bills of material or product structures to manufacturing. During the handover, a new manufacturing product structure is created from scratch or an already synchronized manufacturing structure is updated based on changes from the engineering product structure. The process is focused to keep the engineering and manufacturing product structure synchronous, while only the manufacturing product structure is updated. Changes from engineering can be handed over to the manufacturing product structure with or without change management. Key Features The following table explains the key features available: Key Feature Plan Handover of Product Structure Synchronize Product Structure Use During the planning step the product manager plans to produce a component or product in a specific plant. The planning information is stored within a syn chronization unit. The synchronization process itself duplicates all missing BOM objects (header, item, changes states) from the source structure to the target BOM. If you have already documented an intended deviation with an operation, this is also con sidered during the synchronization. The operation leads to adding or subtract ing of an item. It also can overwrite an attribute of the target structure header or item. A comparison of the new proposed target BOM and existing target BOM returns conflicts that you can resolve. This step is mainly executed by the system. The proposed target BOM and the conflicts are presented to the user. The sys tem supports the user with a predefined set of solutions that can be applied to solve the conflict. The source structure can also be displayed for reference. Each resolution of a conflict may lead to an operation, which is also memorized for later synchroni zations. At the end the user can store the new or updated target BOM. SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions PUBLIC 301 3.6.2.3.2 Handing Over Recipe for Production Business Background You can use this business process to do the following: Create and update a manufacturing bill of material (BOM) using a recipe as data source. Create and update a master recipe using a recipe as data source. The creation or update of BOMs and master recipes typically occurs when the development department has completed product and process definition and this information has been finalized and approved for use in production. This source information from product development is then made available for creating and updating product structures and data for use by manufacturing. GSS automates creating and updating manufacturing BOMs and master recipes, thereby enabling the user to keep development and manufacturing data aligned, reducing effort and improving data accuracy and consistency. Key Features The following table explains the key features available: Key Feature Initiate handover of recipe Plan synchronization of recipe to BOM Use You select the source for which you want to create or update a manufacturing BOM or a master recipe by navigating in the corresponding recipe. The recipe to be used as source must be in a status that is relevant for the hand over proc ess. The synchronization of a recipe to a manufacturing BOM starts with a planning step. During this step, you define attributes for your target manufacturing BOM to be created. Once these parameters have been maintained, you can start the synchroniza tion. 302 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions Key Feature Use Synchronize recipe to bill of material If you synchronize the recipe for the first time, the system will display a pro posal for a target manufacturing BOM in the reconciliation workbench. There you can review the proposal before you start the creation. If you synchronize a recipe which has been synchronized previously, the sys tem creates a new change state for the target BOM based on the recipe data. In the reconciliation workbench, the system shows the proposed target change state and compares this to the existing BOM change state. All changes are shown as conflicts in the reconciliation workbench. You can resolve these con flicts manually, before you start creation of the new BOM change state. If any errors occur, the synchronization stops and returns details about the er rors. Plan synchronization of recipe to master recipe The synchronization of a recipe to master recipe starts with a planning step. During this step, you define attributes for your target master recipe to be cre ated, such as: Plant Material BOM Usage Number of alternative BOM Change number to be used when updating or creating master recipes (if change number use is required) Master recipe group and group number Once these parameters have been maintained, you can start the synchroniza tion. Synchronize recipe to master recipe If you synchronize the recipe for the first time, the system will display a pro posal for a target master recipe in the reconciliation workbench. There you can review the proposal before you start the creation. If you synchronize a recipe that has been synchronized previously, the system creates a new change state for the target master recipe based on the recipe data. In the reconciliation workbench, the system shows the proposed target change state and compares this to the existing master recipe change state. All changes are shown as conflicts in the reconciliation workbench. You can re solve these conflicts manually before you start creation of the new master rec ipe change state. If any errors occur, the synchronization stops and returns details about the er rors. SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions PUBLIC 303 3.6.2.4 Advanced Variant Configuration Business Background Advanced variant configuration is for manufacturing complex products. Manufacturers often have to offer new variants of their products, and new variants can be created by modifying existing product designs as they process the order. The important thing is to react quickly to customers' requirements. The customer determines the features of the product. A customer buying a car, for example, can choose the features of the car and combine these features as required. The product configurator improves information exchange between sales, engineering, and production. Variant configuration helps the customer or salesperson to put together specifications for the product and ensure that the product can be produced from these specifications. Key features The following features are available: Key features Manage configuration model Manage product variants 304 PUBLIC Use You can use a configurable product to cover all variants of a product in your company. A class is used to hold the characteristics that describe a configurable product. By linking the class to the con figurable product, you allow the product to be configured using the characteristics of the class. You can create a super BOM for a configurable product, containing all the components for producing all variants of the product. Often not all combinations of features are possible for either technical or marketing reasons. You can use de pendencies and constraints to control which combina tions are allowed In configuration profiles for configurable objects you de fine central settings for configuring the object. You can use variant conditions to influence the price of a configurable product depending on the characteristic values assigned. You can create a product variant, which is a product that can be kept in stock and that arises from an individual configuration of a configurable product. SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions Key features Interactive configuration Configuration simulation Low-level configuration Variant configuration data in embedded analytics Use During configuration, e.g. in Sales Order, the user assigns values to characteristics. Dependencies and constraints coming from the configuration model are considered. You can use the configuration simulation to check your con figuration model. In the configuration simulation, you can test whether you have created the objects correctly and whether your dependencies work. Low-level configuration refers to "background" explosions of configurable objects, like bills of material (BOMs). E.g. it's used in material requirements planning (MRP). Here charac teristic values from the sales order are automatically used to determine the BOM components. This app allows you to generate CDS views. You can use these CDS views to publish the classification/configuration information and to visualize it with application data. You can use these to model your own CDS view queries, in which var iant configuration data can be combined with other objects, such as a sales order. Related features Classification [page 99] 3.6.3 Product Compliance 3.6.3.1 Product Marketability and Chemical Compliance Business Background With the product marketability and chemical compliance solution you manage chemical compliance for your products across your organization. The features of this business solution support you to ensure product marketability, brand protection, and to reduce compliance costs. They enable you to manage regulatory requirements and compliance assessments of your product portfolio. SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions PUBLIC 305 Key Features The following table explains the key features available: Key Feature Use Management of compliance requirements You can manage substance-related regulatory list revisions based on legisla tion, industry standards, and customer or corporate-specific requirements. Regulatory information and calculations are the basis for the compliance re quirements that your products need to meet. You can create and use further regulatory requirements and manage the updates of existing ones accordingly. Management of compliance assessment processes This feature supports you in the compliance assessment process for your product portfolio. You can start or request the initial assessment of a product and determine the relevant compliance requirements for your product. The system carries out compliance checks thus supporting you to fulfill relevant compliance requirements for your products. If the compliance results are affected after a change the compliance checks can be re-processed. You can define substance volume tracking for relevant products, including quantity limits and warning thresholds. Compliance controls embedded in busi ness processes in SAP S/4HANA 1709 This feature allows you to embed compliance controls into key business proc esses: Substance volume tracking is embedded into and visible in other business processes, such as purchasing, manufacturing and sales Compliance information and compliance checks can be integrated into purchasing or sales order Compliance explorer and monitoring You can identify critical results from compliance assessments and explore the compliance results of your products and components in more detail. Additionally, totaled quantities of tracked substances can be monitored, including potential or actual critical situations. Management and publishing of compli ance documents Templates are used to create documents containing compliance information. The documents can be generated as requested and are part of a release proc ess. In addition to using the documents internally, you can make these docu ments available to your customers. 3.6.3.2 Dangerous Goods Management This process enables you to manage data which is needed to classify and process dangerous goods in the logistics chain according to dangerous goods regulations. Compliance with regulations of dangerous goods is an important component of product stewardship to ensure safe packaging and transportation of dangerous goods. 306 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions Business Background Key Features The following table explains the key features available: Key Feature Use Dangerous goods classification You classify products according to dangerous goods regulations. The classified dangerous goods are the basis for the processing of dangerous goods and gen eration of documents with dangerous good data in the logistics chain. Dangerous goods processing You manage supplementary data relevant for dangerous goods; this data is then provided together with classification information for document genera tion. Dangerous goods embedded into key business processes Within applications in SAP S/4HANA release 1709 Functionality from danger ous goods processing, such as compliance checks, is embedded into and visi ble in other business processes, such as sales order and delivery. You can do compliance checks, for example, on modes of transport and mixed loading, as well as within routing, resource, and carrier selection management. Output of dangerous goods information You can use dangerous goods information for output on logistics documents. 3.6.3.3 Safety Data Sheet Management and Hazard Label Data Business Background With this business solution you manage and create safety data sheets (SDS) and labels according to chemical regulations and requirements. An SDS is an important component of product stewardship. It is legally required in most countries/regions of the world to ensure safe handling of chemicals and other hazardous products. SDS formats can vary from source to source within a country/region depending on national requirements. SDSs are a widely-used system for cataloging information on chemicals, chemical compounds, and chemical mixtures. SDS information may include instructions for the safe use and potential hazards associated with a particular material or product. The SDS should be available for reference in the area where the chemicals are being stored or in use. Label and safety data sheets are important sources of information on hazards, instructions and information on the safe storage, handling, use, and disposal of hazardous substances. This information helps you to minimize risks when using hazardous substances. SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions PUBLIC 307 Key Features The following table explains the key features available: Key Feature Use Data management for safety data sheets and hazard labels You can enter the necessary data for the generation of safety data sheets and reuse it for multiple packaged products. The system supports you in deriving SDS-relevant infor mation from product data and regulatory data. You can use standard text blocks to minimize transla tion efforts. You can release the data for SDS generation. You can reuse the SDS-relevant data for hazard labels. Safety data sheet generation using templates You can use templates to generate safety data sheets. You can release the generated safety data sheet for sub sequent processes. You can manage revisions of safety data sheets with dedicated version control. Safety data sheet publishing You can send safety data sheets to your customers and to relevant authorities, electronically. The automatic process can be integrated into the sales process. Up dated versions of safety data sheets can be distributed automatically. You can view safety data sheets that provide informa tion required in different business processes, such as, in material management. Hazard labels embedded into business processes in SAP S/ 4HANA 1709 Hazard label determination is embedded into several busi ness processes within SAP S/4HANA release 1709, such as make-to-stock, make-to-order, shipment, and receipt of pur chase order. 3.7 Sales 308 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions 3.7.1 Commodity Sales Business Background With Commodity Sales you enter, process and manage your sales documents, deliveries and billing documents for commodities of all industries, perform a simple to use formula-based commodity pricing, also for future dates, use the market data management based on derivative contract specifications, enter and allocate price fixations, and perform period-end valuations. Key Features The following table explains the key features available: Key Feature Market Data Management Use Derivative Contract Specifications For commodity future prices and commodity forward indexes (provided on platforms like PLATTS, REUTERS), Commodity Sales uses the market data management based on derivative contract specifications (DCS). The DCS reflects rules and conditions agreed upon at an exchange, and that form the contract basis for trading with a specific commodity or for a spe cific derivative contract. The DCS is applied for the derivative categories Commodity Future, Listed Option, and Commodity Forward Index. The DCS enables the automatic determination of maturity key dates and DCS periods, and is applied within the Commodity Pricing Engine (CPE) of sales documents. Based on DCS and MIC (market identification code), price data can be manually entered for defined price types and key dates (to identify spe cific contracts). MICs are not required for commodity forward indexes. Alternatively, you can upload those data with Microsoft Excel© files. Basis Market Data Commodity Sales supports also the basis pricing, mainly used by agricul tural businesses. The basis is the price difference between the local cash price and the commodity futures price, and reflects characteristics such as freight, storage costs, quality factors, targeted margin, and the local supply and demand situation. Basis market data can be manually entered, and can be accessed by the Commodity Pricing Engine (CPE). SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions PUBLIC 309 Key Feature Commodity Pricing 310 PUBLIC Use With Commodity Pricing you can apply complex pricing formulas, rules and conditions in a simple way. The commodity pricing engine uses DCS-based market data and basis prices, is enabled for commodities of all industries. Commodity pricing is applied in sales contracts, sales orders, goods issues, provisional billing (if the pricing is not final yet), final billing, and for the periodend valuation, and comprises the following functions: Setting Up CPE Formulas, Terms and Rules CPE formulas, terms and rules define the pricing of a commodity in a sales document. A formula consists at least of one term, and can contain detailed pricing rules such as fixed values, or absolute or percentage sur charges. The price determination can either be set up as Customizing data (in a Customizing client) or, for regular changes, as master data in the produc tive system. If CPE data is applied as master data, only an authorized pricing setup ex pert can create and edit CPE formulas, terms and rules, which can imme diately be used for all new sales transactions. Master data is strongly dif ferentiated from Customizing data by a different namespace that is char acterized by a prefixed slash. To create formulas as master data, the user can use the document template function in sales documents. CPE formulas and reference date routines can be set up application-inde pendent (for both, the purchasing and the sales side), which minimizes the maintenance effort. Recommendation SAP strongly recommends not to change a formula that is already in use of a document. Formula Assembly based on BRFplus For an easy and flexible formula determination, and for defaulting CPE data when creating the root sales documents, the commodity pricing en gine (CPE) uses the Business Rules Framework plus. For the determination of CPE formulas, terms and rules, template applica tions with standard decision tables (access sequences) are provided. If a template meets your needs, you can copy it, and use it as it is. Formula Evaluation The formula evaluation of the CPE is integrated with the sales documents, and controls, how formula/term rates and formula/term values are calcu lated. For each pricing-relevant process, the formula evaluation is automatically started. SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions Key Feature Use During the formula evaluation, the system uses input data such as docu ment data (for example, commodity quantity and quality data), conver sion and rounding rules, reference data (for example, goods issue date), price quotations, surcharges, currency exchange rates, and factory calen dar data. To get price quotations with dates in the future, a CPE quotation forecast routine is provided, which applies currently available quotations as fore casted market data for future key dates. Price Fixations and Allocations For complete or partial pricing-relevant commodity quantities in sales documents, the price fixation option allows you to replace the floating price (market price for future date) by an agreed fixed price. Price fixation options can be defined and exercised on term level. A price fixation option defined in a sales contract, will also be displayed in the subsequent sales order. Recommendation SAP strongly recommends to exercise price fixation options only in sales orders. For sales orders the priced quantity is automatically or manually allocated to the related goods issue quantity. You can create and change price fixations for a document before or after subsequent documents have been created. You can change an allocation as long as the delivery has not been finally invoiced yet. You can manually assign price fixations, to see the allocated or not allo cated items for a selected sales order, or edit an allocation (re-allocation). In an allocation worklist you can get an overview of the documents rele vant for the allocation, and of the allocation statuses. For the determination of exchange rate forecasts for currency conver sions, swap rates can be calculated by using the respective exchange rate forecast routine. Configurable Parameters and Formulas (CPF) based on BRFplus You can define complex pricing rules and CPF formulas throughout the Cus tomizing without programming effort, just by creating additional pricing-rele vant parameters, formulas, and using them in BRF plus functions. The CPF with BRFplus enables, for example, an automatic bonus and penalty calcula tion based on delivered qualities and contract conditions. Configurable User Interface for Pricing With this function, you can configure the user interface of pricing data. It ena bles you to use and to adapt delivered standard views for pricing data, as well as to create customer-specific views. SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions PUBLIC 311 Key Feature Use SAP provides standard views on pricing data like Pricing Elements: Tree, Pricing Elements: Table, CPE Formulas and Terms, and Future/Basis Prices Fixation. Agreed Conversion Factors and Quantity Adjustments You can specify agreed conversion factors in a business document. You use this function, if you want to use in a condition a conversion factor for a unit-of-measure pair, and the conversion factor deviates from the one in the material master. You can specify one agreed conversion factor per unit-of-measure pair, and assign it to a condition, the current item, or to all items. During pricing, the system searches in this order for agreed conver sion factors. You can adjust the quantity that a price condition uses in a sales docu ment. You use this adjustment function, if the quantity that is relevant for the corresponding condition deviates from the quantity of the sales docu ment item. For the selected sales document, the system uses a specific condition type to calculate an adjusted quantity by applying an adjust ment factor. Such a condition is called a source condition. Subsequent conditions can use the calculated adjusted quantity or the adjustment fac tor of source conditions. You can enter the adjustment factor within a sales document in the re spective pricing view of the configurable user interface for pricing. Processing Commodity Sales Transactions Commodity Sales is based on standard sales transactions and functions, and and Documents supports the creation and processing of sales orders, sales contracts, deliver ies, as well as provisional, differential and final billing documents. The provisional, differential and final billing can be used for provisional and final commodity price calculation rules, taking into account provisional or final mar ket prices, quantities, and qualities, and herewith avoid complex cancellations or rebilling procedures. This feature is supported by Commodity Pricing, and enables the automatic creation of multiple billing documents until the creation of the final billing document. Period-End Valuation For deliveries of commodities with goods issues, where the commodity price is floating (for example, due to market price changes), and a final invoice was not posted yet on or before the valuation key date, the period-end valuation is used to calculate the accrual amount from the difference between an anticipated final invoice amount and the posted amount. For the period-end valuation, Commodity Sales provides several transactions such as to create and post accrual documents, to generate worklists, to verify valuation results, and to perform completeness checks. 312 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions Key Feature Use Commodity Risk Analytics with CDS Views Commodity Risk Analytics comprises Commodity Position Reporting, Mark-toMarket Reporting, and Profit and Loss Reporting for logistics documents and material stock. Commodity Risk Analytics supports a snapshot-based and (in most cases) a real-time reporting, calculating risk-relevant key figures at reporting time. The provided standard queries reflect current day, end-of-day and day-overday positions and values. You can use these queries by any tool that supports CDS views, such as Analysis for Microsoft Excel. Commodity Risk Analytics allows you to extend the provided queries in order to append your individual free characteristics. Note, that Commodity Risk Analytics only considers business transactions, which has not been realized (not invoiced or not billed) yet. Commodity Position Reporting Commodity Position Reporting enables you to analyze the price risk quantities of commodity positions resulting from logistics transactions and material stock. Mark-to-Market Reporting The Mark-to-Market Reporting calculates and shows you the undiscounted MtM values for unrealized logistics documents and material stock, as well as the MtM changes between two points of time. Profit and Loss Reporting The Profit and Loss Reporting enhances the Mark-to-Market Reporting and is aimed to explain the root causes for changes in MtM values within a set period. MtM values can vary due to, for example, changes of market quotations, FX rates, as well as modified pricing data and/or commodity quantities in logistics documents and of material stock. The P/L attribution shows how much each event and market price movement has attributed to the MtM delta values for a certain period. 3.7.2 Incentive and Commission Management Business Background You can reproduce sales structures and set up flexible incentive systems. You use standard agreements as the basis for creating individual agreements and for settling commission cases. SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions PUBLIC 313 Key Features Key Feature Compensation planning Compensation operations Use You use this feature to design a consistent remuneration plan, break down your company's strategy to specific sales targets, and to cascade plan changes. You can easily build new organizations into its sales composition and integrate compensation for the sale of newly designed products. You use this feature to align internal and external sales tar gets with a company's overall strategy and to automate sales force compensation for meeting those targets. 3.8 Sourcing and Procurement 3.8.1 Operational Procurement 3.8.1.1 Commodity Procurement Business Background With Commodity Procurement you enter, process and manage your purchase orders, goods receipts and invoices for commodities of all industries, perform a simple to use formula-based commodity pricing, also for future dates, use the market data management based on derivative contract specifications, enter and allocate price fixations, and perform period-end valuations. 314 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions Key Features The following table explains the available key features: Key Feature Market Data Management Use Derivative Contract Specifications For commodity future prices and commodity forward indexes (provided on platforms like PLATTS, REUTERS), Commodity Procurement uses the market data management based on derivative contract specifications (DCS). The DCS reflects rules and conditions agreed upon at an exchange, and that form the contract basis for trading with a specific commodity or for a specific derivative contract. The DCS is applied for the derivative categories Commodity Future, Listed Option, and Commodity Forward Index. The DCS enables the automatic determination of maturity key dates and DCS periods, and is applied within the Commodity Pricing Engine (CPE) of purchasing documents. Based on DCS and MIC (market identification code), price data can be manually entered for defined price types and key dates (to identify spe cific contracts). MICs are not required for commodity forward indexes. Alternatively, you can upload those data with Microsoft Excel© files. Basis Market Data Commodity Procurement also supports basis pricing, mainly used by agri cultural businesses. The basis is the price difference between the local cash price and the commodity futures price, and reflects characteristics such as freight, storage costs, quality factors, targeted margin, and the lo cal supply and demand situation. Basis market data can be manually entered, and can be accessed by the Commodity Pricing Engine (CPE). SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions PUBLIC 315 Key Feature Commodity Pricing 316 PUBLIC Use With Commodity Pricing you can apply complex pricing formulas, rules and conditions in a simmple way. The commodity pricing engine uses DCS-based market data and basis prices, and is enabled for commodities of all industries. Commodity pricing is applied in purchase orders, goods receipts, provisional invoices (if the pricing is not final yet), final invoices, the period-end valuation, and comprises the following functions: Setting Up CPE Formulas, Terms and Rules CPE formulas, terms and rules define the pricing of a commodity in a pur chasing document. A formula consists at least of one term, and can con tain detailed pricing rules such as fixed values, or absolute or percentage surcharges. The price determination can either be set up as Customizing data (in a Customizing client) or, for regular changes, as master data in the produc tive system. If CPE data is applied as master data, only an authorized pricing setup ex pert can create and edit CPE formulas, terms and rules, which can imme diately be used for all new purchasing transactions. Master data is strongly differentiated from Customizing data by a different namespace characterized by a prefixed slash. To create formulas as master data, the user can use the document template function in purchasing documents. CPE formulas and reference date routines can be set up application-inde pendent (for both, the purchasing and the sales side), which minimizes the maintenance effort. Recommendation SAP strongly recommends not to change a formula that is already in use of a document. Formula Assembly based on BRFplus For an easy and flexible formula determination, and for defaulting CPE data when creating the root purchasing documents, the commodity pric ing engine (CPE) uses the Business Rules Framework plus. For the determination of CPE formulas, terms and rules, template applica tions with standard decision tables (access sequences) are provided. If a template meets your needs, you can copy it, and use it as it is. Formula Evaluation The formula evaluation of the CPE is integrated with the purchasing docu ments, and controls, how formula/term rates and formula/term values are calculated. For each pricing-relevant process, the formula evaluation is automatically started. SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions Key Feature Use During the formula evaluation, the system uses input data such as docu ment data (for example, commodity quantity and quality data), conver sion and rounding rules, reference data (for example, goods issue date), price quotations, surcharges, currency exchange rates, and factory calen dar data. To get price quotations with dates in the future, a CPE quotation forecast routine is provided, which applies currently available quotations as fore casted market data for future key dates. For the determination of exchange rate forecasts for currency conver sions, swap rates can be calculated by using the respective exchange rate forecast routine. Price Fixations and Allocations For complete or partial pricing-relevant commodity quantities in purchas ing documents, the price fixation option allows you to replace the floating price (market price for future date) by an agreed fixed price. Price fixation options can be defined and exercised on term level. For purchase orders the priced quantity is automatically or manually allo cated to the related goods receipts quantity. You can create and change price fixations for a document before or after subsequent documents have been created. You can change an allocation as long as the goods receipt has not been finally invoiced yet. You can manually assign price fixations, to see the allocated or not allo cated items for a selected purchase order, or edit an allocation (re-alloca tion). In an allocation worklist you can get an overview of the documents rele vant for the allocation, and of the allocation statuses. Configurable Parameters and Formulas (CPF) based on BRFplus You can define complex pricing rules and CPF formulas throughout the Cus tomizing without programming effort, just by creating additional pricing-rele vant parameters, formulas, and using them in BRFplus functions. The CPF with BRFplus enables, for example, an automatic bonus and penalty calculation based on delivered qualities and contract conditions. Configurable User Interface for Pricing With this function, you can configure the user interface of pricing data. It ena bles you to use and to adapt delivered standard views for pricing data, as well as to create customer-specific views. SAP provides standard views on pricing data such as Pricing Elements: Tree, Pricing Elements: Table, CPE Formulas and Terms, and Future/Basis Prices Fixation. Agreed Conversion Factors and Quantity Adjustments SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions PUBLIC 317 Key Feature Use You can specify agreed conversion factors in a business document. You use this function, if you want to use in a condition a conversion factor for a unit-of-measure pair, and the conversion factor deviates from the one in the material master. You can specify one agreed conversion factor per unit-of-measure pair, and assign it to a condition, the current item, or to all items. During pricing, the system searches in this order for agreed conver sion factors. You can adjust the quantity that a price condition uses in a purchasing document. You use this adjustment function, if the quantity that is rele vant for the corresponding condition deviates from the quantity of the pur chasing document item. For the selected purchasing document, the sys tem uses a specific condition type to calculate an adjusted quantity by ap plying an adjustment factor. Such a condition is called a source condition. Subsequent conditions can use the calculated adjusted quantity or the adjustment factor of source conditions. You can enter the adjustment factor within a purchasing document in the respective pricing view of the configurable user interface for pricing. Processing Purchasing Transactions and Documents Commodity Procurement is based on standard purchasing transactions and functions, and supports the creation and processing of purchase orders, goods receipts, as well as provisional, differential and final invoices. The provisional, differential and final invoicing can be used for provisional and final commodity price calculation rules, considering provisional or final market prices, quantities, and qualities, and herewith avoid complex cancellations or rebilling procedures. This feature is supported by Commodity Pricing, and ena bles the automatic creation of multiple invoice documents until the creation of the final invoice. Period-End Valuation For commodity quantities with goods receipts, where the commodity price is floating (for example, due to market price changes), and a final invoice was not posted yet on or before the valuation key date, the period-end valuation is used to calculate the accrual amount from the difference between an anticipated final invoice amount and the posted amount. For the period-end valuation, Commodity Procurement provides several trans actions such as to create and post accrual documents, to generate worklists, to verify valuation results, and to perform completeness checks. 318 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions Key Feature Use Commodity Risk Analytics with CDS Views Commodity Risk Analytics comprises Commodity Position Reporting, Mark-toMarket Reporting, and Profit and Loss Reporting for logistics documents and material stock. Commodity Risk Analytics supports a snapshot-based and (in most cases) a real-time reporting, calculating risk-relevant key figures at reporting time. The provided standard queries reflect current day, end-of-day and day-overday positions and values. You can use these queries by any tool that supports CDS views, such as Analysis for Microsoft Excel. Commodity Risk Analytics allows you to extend the provided queries in order to append your individual free characteristics. Note, that Commodity Risk Analytics only considers business transactions which has not been realized (not invoiced or not billed) yet. Commodity Position Reporting Commodity Position Reporting enables you to analyze the price risk quantities of commodity positions resulting from logistics transactions and material stock. Mark-to-Market Reporting The Mark-to-Market Reporting calculates and shows you the undiscounted MtM values for unrealized logistics documents and material stock, as well as the MtM changes between two points of time. Profit and Loss Reporting The Profit and Loss Reporting enhances the Mark-to-Market Reporting and is aimed to explain the root causes for changes in MtM values within a set period. MtM values can vary due to, for example, changes of market quotations, FX rates, as well as modified pricing data and/or commodity quantities in logistics documents and of material stock. The P/L attribution shows how much each event and market price movement has attributed to the MtM delta values for a certain period. 3.8.1.2 Central Requisitioning Business Background With Central Procurement, you can integrate your SAP S/4HANA system (hub system) with other enterprise resource planning systems in your system landscape (for example, SAP S/4HANA, SAP S/4HANA Cloud, or SAP ERP) to offer centralized procurement processes over your entire system landscape. The Central Requisitioning scenario facilitates employees to have a unified shopping experience where they can create self-service requisitions in an SAP S/4HANA system (hub system). They can, for example, create SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions PUBLIC 319 self-service requisitions for materials from back-end systems with desired sources of supply. This scenario also enables you to confirm the ordered goods in the SAP S/4HANA system (hub system). Key Features The following table explains the key features available: Key Feature Use Creating purchase requisitions Employees can create purchase requisitions in the SAP S/4HANA system (hub system). Approving purchase requisitions Approvers can use the flexible workflow to approve purchase requisitions. The approval process can be either the automatic, one-step or multi-step approval. Replicating purchase requisitions to the connected back-end systems The approved purchase requisitions are replicated to the connected back-end systems. Creating purchase orders automatically The purchase orders are created automatically in the connected back-end sys tems from the replicated purchase requisitions. Confirming the receipt of goods Employees can confirm the received goods in the SAP S/4HANA system (hub system). As a result, confirmations are posted to the connected back-end sys tems. Creating a return delivery If goods are of poor quality or damaged, for example, employees can create a return delivery in the SAP S/4HANA system (hub system) for the confirmed goods. 3.9 Supply Chain 3.9.1 Advanced Inventory, Warehousing, and Transportation 3.9.1.1 Extended Warehouse Management Business Background Extended warehouse management provides tools for managing and processing material movements flexibly, to optimize more complex warehouse processes. 320 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions Key Features The following table explains the key features available: Key Feature Inventory Management Optimization Inbound Process Optimization Outbound Process Optimization Use You can optimize the management of product quantities in different stock cat egories, for example, by using slotting functions to assign the best bin type for a product that is to be put away, based on product characteristics. During slotting, extended warehouse management automatically determines a storage concept for a product, based on underlying putaway storage parame ters on the basis of master data. These parameters describe the following: The storage section in which the product is to be stored The properties that the storage bin is to have The putaway strategy that is to be used You can optimize the process of receiving products and putting them away in the warehouse, for example, by planning several inbound deliveries that are ar riving in the same transport. You use transportation units or vehicles to group the deliveries, and perform the warehouse activities for all of the inbound deliveries in the transportation unit or vehicle at the same time. You can optimize the process of picking products and sending them out of the warehouse, for example, by combining or splitting items from the outbound warehouse requests in waves. You can combine or split items into waves, on the basis of criteria such as ac tivity area, route, or product. You can set up wave templates that use the same wave attributes for ware house request items that fulfil the stated conditions of the template. Extended warehouse management can create waves automatically based on wave templates and data in the warehouse request. You can set extended warehouse management up to automatically release and re-release waves SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions PUBLIC 321 Key Feature Material Flow Control Yard Management Use You can run and control automated warehouse equipment, as follows: Communicate with programmable logic controllers (PLCs) via telegrams to trigger movements and receive status updates Subdivide warehouse tasks into smaller tasks and send the tasks to the PLC in step-by-step fashion Use an enhanced putaway strategy and stock removal strategy that con siders physics and limitations Define capacity limits for communication points, conveyor segments, or resources, using pallet conveyor logic Track, evaluate and influence the process of the material flow system Monitor the communication between the material flow system and the programmable logic Call up logs for exceptions using the alert monitor and link these excep tions with follow-on actions The material flow system includes the following features: Automatic identification of HUs that are being scanned on the automatic storage retrieval facility and where scanner information is being sent to EWM via a telegram Automatic diversion of HUs that cannot be stored because of incorrect contours, excessive weight, or unidentified HUs Fully automatic putaway of HUs in the storage bin using any number of in terim steps Malfunctions reported by the controls taken into account Reduction in empty traveling paths for stacker cranes through interleaving Goods to man picking principle The yard is where you maintain vehicles and transportation units that arrive or depart from your warehouse. You can use yard management to move transportation units from one yard bin to another inside a yard. Possible types of yard movement are as follows: The transportation unit arrives at the checkpoint and is moved to a park ing space or to the door. You move a transportation unit from a parking space to the door, or from the door to a parking space. You move a transportation unit in the yard from one parking space to an other, or from one door to another. 322 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions Key Feature Labor Management Value Added Services Kitting Use You can plan labor times and resources in your warehouse, by classifying, measuring, planning, and simulating the activities in your warehouse. You can compare and evaluate the performance of your warehouse employees based on engineered labor standards. You evaluate performance on an individ ual level or based on teams or shifts. After the work has been performed, you can compare the planned and actual times, and trigger incentives such as bonus payments using the HR system. You can use short-term operational planning match the workload with the number of employees in the warehouse. You can import or maintain time and attendance data in extended warehouse management. You can perform and document value-added services in the warehouse, such as assembling products, packing products, labeling, or kitting. You can perform value-added services in the inbound and outbound delivery processes. You can create kits in kit to order or kit to stock processes. The following rules apply to the kit to order process: A kit is always delivered in full to a customer. The kit header and the kit components are always scheduled for the same date. All components of a kit staged in one warehouse. The kit header and kit component have a quantity ratio defined by the kit structure to each other. This quantity ratio is recalculated as soon as there are changes at kit header level or at kit component level. In the kit to stock process, the following applies: Kit to stock can be started by the system from a production order, or man ually in EWM. You can perform reverse kitting to split up a kit back into its components. SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions PUBLIC 323 Key Feature Cross-Docking Warehouse Billing Cartonization Planning 324 PUBLIC Use You can create and confirm tasks to transport products or handling units from goods receipt to goods issue without putaway occurring in between. Using cross-docking enables you to fulfil urgent sales orders, or to reduce processing and storage costs. You can perform cross-docking in the following ways: Opportunistic cross-docking Extended warehouse management can determine the cross-docking rele vance of the products after they have physically arrived in the warehouse Merchandise distribution Extended warehouse management receives inbound and outbound deliv ery documents from the system which contain the merchandise distribu tion process methods and the purchase order item. For the inbound deliv ery, extended warehouse management first considers all outbound deliv eries that have the same reference number. In addition, extended ware house management uses the merchandise distribution process to deter mine the warehouse process type, and to perform the merchandise distri bution cross-docking according to Customizing. Warehouse billing allows you to perform the following activities with a con nected SAP Transportation Management (SAP TM) system: Record the quantity of warehouse services used for services agreed upon in an agreement in the connected SAP TM system. Send this quantity information back to the connected SAP TM system for charge calculation and settlement based on the charges you have agreed to in the agreement. Warehouse billing allows you to perform the following activities with an embed ded Transportation Management (TM): Record and send quantity information to embedded TM for self-billing pur poses You can use cartonization planning to improve the creation of shipping han dling units (HUs) based on information from product master data and out bound delivery orders, such as quantities, volume, and weight. Cartonization planning results in the creation of planned shipping handling units (PSHUs) that you can use as templates for creating shipping HUs during picking or packing. You can create PSHUs manually or automatically in cartonization planning. You can create nested PSHUs for cartonization planning of deliveries where HUs are packed into larger HUs. You can plan pallets based on attributes such as weight and volume to mini mize the number of pallets needed in your outbound deliveries. SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions Key Feature SAP Dock Appointment Scheduling Shipping and Receiving Transit Warehousing Use You can plan vehicle arrivals in your warehouses efficiently, and collaborate with the parties involved in an appointment. Planning for the Warehouse Planning of vehicle arrivals at the warehouse, and loading and unloading of the vehicles, is important for managing the efficient running of the ware house, and for balancing the workload across the working day. You can use SAP Dock Appointment Scheduling to schedule loading appointments for loading and unloading vehicles and to get an overview of the workload of a loading point for each day. Planning for the Carrier For a carrier, planning is important to reduce the amount of time when the vehicles are not available for use, for example, if they are waiting to be un loaded. Carriers with access to the system can plan loading appointments for their own vehicles directly in the system, and update details of their load ing appointments. You can use shipping and receiving to manage the following aspects of your warehouse: Usage of vehicle and transportation units (TUs) for managing the trans ports to or from your warehouse Loading and unloading, including arriving at and departing from doors Yard management You can use the shipping cockpit to perform the following activities: Plan TUs for a given day You can plan the TUs and assign warehouse management outbound deliv eries to them. Perform and monitor outbound deliveries using TUs With the shipping cockpit, you can monitor the status of deliveries as signed to a TU and trigger related actions for the TU or the deliveries. You can use transit warehousing when you are receiving or shipping cargo as part of a longer transportation chain. The cargo is not destined for your ware house and you do not unpack or put it away in your warehouse as stock. In stead, you receive cargo and store it until it is required for transportation to the next stop in the transportation chain. The transportation of the cargo is planned in a connected SAP Transportation Management (SAP TM) system, and the plan is transferred to extended ware house management. The warehouse processes are performed in extended warehouse management and the results are sent back to SAP TM. SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions PUBLIC 325 Key Feature Use Integration with Transportation Manage ment You can integrate extended warehouse management and Transportation Man agement (TM). This allows you to do the following: Plan your inbound and outbound transports from TM Receive the transportation plan from TM Plan and execute deliveries according to the transportation plan Communicate check-in and check-out information from extended ware house management to TM Communicate accurate weight, volume, and number of HUs in outbound deliveries 3.9.1.2 Integrated Transportation Management Business Background Integrated Transportation Management (TM) in SAP S/4HANA supports the entire transportation chain. You can manage the transportation demands by planning, optimizing, tendering, subcontracting, and settlement of freight processes. Also, you can book carriers in accordance with the requirements of international trade and hazardous goods. TM supports the following end-to-end processes: Domestic and international transportation for the shipper industry Inbound and outbound freight management based on sales orders, purchase orders, deliveries, stock transfers, and returns Embedded analytics and key performance indicators for real-time performance visibility Key Features Main key features are for example: Order-based transportation planning with subsequent creation of deliveries based on the transportation plan Consolidation of inbound and outbound transportation demand in one freight order or freight booking Automatic planning (optimization) Enhanced functionality for air and ocean freight management 326 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions The following table explains the key features available: Key Feature Use Master data and transportation network You can create and use central master data such as business partners and products for transportation-related processes. In addition, you can use trans portation-specific data to set up your transportation network, for example, lo cations, transportation lanes, and default routes. Agreement management Strategic freight management You can use freight agreements in TM. An agreement is a contract between business partners that details their commitment to conduct business with each other in an agreed manner. It includes contractual data, such as the fol lowing: Organizational unit, for example, the purchasing organization Involved parties, for example, the ordering party or carrier Terms of payment Validity dates Agreement management is integrated with charge management in TM. TM cal culates transportation charges based on the master data stored in calculation sheets, rate tables, and scales that are part of the agreement. To support your freight agreement negotiations, you can use strategic freight procurement. It helps you to negotiate rates with carriers to transport cargo between specific locations (trade lanes) and agree on a contract (agreement) with the carriers. TM provides the tools that you need to request rate quota tions, evaluate responses, and award the transportation business to carriers. Charge management You can use charge management to set up the master data that the system uses to calculate transportation charges. You can calculate the charges for transporting goods between locations based on the rates you maintain in a rate table. The system uses master data, such as agreements, calculation sheets, and rate tables, when calculating transportation charges. SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions PUBLIC 327 Key Feature Logistics integration Freight order management Use In the integrated logistics process within SAP S/4HANA, the following applies: TM uses sales orders, purchase orders, returns, stock transfers, and in bound or outbound deliveries to create freight units. Logistics integration allows you to continuously react to changes of origi nal documents that occur in the system. In order-based planning, TM creates the deliveries based on the transpor tation plan taking into account dates, times, and quantities etc. In a side-by-side scenario with another SAP S/4HANA system, the following applies: TM uses sales orders, purchase orders, returns, stock transfers, as well as SD and MM scheduling agreements to create order-based transportation requirements and subsequently freight units. TM uses inbound or outbound deliveries to create delivery-based trans portation requirements and subsequently freight units. Logistics integration allows you to continuously react to changes of origi nal documents that occur in the system. The transportation requirements and freight units are frequently updated based on these changes. In order-based planning, TM creates the deliveries based on the transpor tation plan taking into account dates, times, and quantities etc. Based on the planning changes in TM, deliveries in the ERP application area of the other SAP S/4HANA system are automatically updated and/or splitted if required. In freight order management, you can create and edit freight orders and freight bookings. These documents contain information required for transportation planning and execution, such as source and destination locations, dates or times, product information, and resources used. You can create freight orders directly or in transportation planning. For example, you can assign freight units to the freight orders and have the system calculate the transportation charges. You can perform carrier selection, assign the freight orders directly to a carrier as a suborder, or perform tendering. 328 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions Key Feature Tendering Use You can use this process to send out freight requests for quotation (freight RFQs) to one or more carriers according to a tendering plan. You can use a freight RFQ tendering process to send out one or more freight RFQs. You can send the freight RFQs manually, or enable the system to send them out auto matically. You can also use a direct tendering process to send a road freight or der (road FO) directly to a specified carrier without creating a freight RFQ. Car riers can confirm or reject the road FOs. Unlike the freight RFQ process, the system generally awards a carrier if he or she does not reject the road FO within a given time limit. Direct tendering can be created and started manually by the user or automati cally by the system. Furthermore, you can use freight bookings to book freight space in advance, for example, with a shipping company. You can then perform the execution on these documents. SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions PUBLIC 329 Key Feature Planning 330 PUBLIC Use In planning, freight units are created on the basis of logistics business docu ments. Then, capacities can be assigned to these freight units. Furthermore, various constraints can be taken into account, for example, requested delivery dates. Finally, freight orders are the result of planning. A number of profiles and settings are available that you can use to perform transportation planning. You can use them to group planning-relevant settings, for example, capacities and planning costs. You can perform planning either manually or automatically. You have, for exam ple, the following options: Manual Planning You can manually assign freight units to capacities such as vehicle resour ces. The system automatically creates freight documents (that is, freight orders or freight bookings) depending on the settings that you have con figured in Customizing. Within interactive planning you can use up-to-date technology to provide an intuitive visual or graphical user interface. For example, Gantt charts, map-based planning, and 3D load planning are available. VSR Optimization Here the system uses advanced planning algorithms (optimization). The aim of VSR (Vehicle Scheduling and Routing) optimization is to assign freight units to capacities (for example, vehicle resources) in a cost-effective way while adhering to constraints. Furthermore, the system can deter mine the sequence of deliveries as well as transportation dates and times. VSR optimization generates a transportation plan consisting of planned freight orders from the optimization data (freight units and capacities). When doing this, it processes freight orders that are already available from a previous VSR optimization run or manual planning. VSR optimization in serts the freight units step-by-step into the transportation plan. Then the system modifies these initial solutions step-by-step, for example, by load ing a freight unit on to another capacity or by changing the delivery se quence of a freight unit. The optimizer tries to minimize the total costs while adhering to the constraints. At the end of the planning run, VSR opti mization returns the best solution found. For example, if the costs defined for not delivering a freight unit are lower than the costs for transporting the freight unit, the freight unit is not delivered. Generation of Transportation Proposals The VSR optimizer can generate a list of alternative transportation pro posals. Out of this list you can choose one of the proposed alternatives for the subsequent steps. Load Consolidation You can use this function to optimize the distribution of freight units to the following resources: trucks, containers, trailers, and railcars. The system then generates the corresponding business documents: freight orders, container units, trailer units, or railcar units. SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions Key Feature Freight settlement Use Carrier Selection You can use carrier selection to assign a suitable carrier to your subcon tractable business documents (for example, freight orders) either man ually or automatically. The aim is to find a carrier with the lowest costs un der consideration of constraints. In manual carrier selection, you manually assign the required carrier to your business documents. A separate optimization is available for the au tomatic carrier selection. It takes into account the selected optimization options when determining the most cost-effective carrier for all business documents that you have selected. In freight settlement, a freight order or freight booking provides the basis for the freight settlement document or a credit memo for a freight order. You use this function to trigger the verification of an invoice, which has been received from a supplier or carrier, against a freight settlement document. SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions PUBLIC 331 Key Feature Integration Dangerous goods Use TM is integrated with the following other components in SAP S/4HANA or ex ternal products: EWM in SAP S/4HANA and SAP EWM You can integrate TM with Extended Warehouse Management (EWM) in SAP S/4HANA or SAP Extended Warehouse Management (SAP EWM). TM supports a direct integration based on deliveries by using web serv ices. The TM planning results are transferred directly to EWM or SAP EWM. Transportation units are automatically created in the warehouse. Together with the delivery information, these form the basis for warehouse planning and execution. Confirmations of the execution results (such as loading and quantity discrepancies) are sent directly from EWM or SAP EWM to TM. SAP GTS The integration of TM with SAP Global Trade Services (SAP GTS) enables you to do the following: Handle customs processing for TM business documents in SAP Global Trade Services Perform trade compliance checks for TM business documents in SAP Global Trade Services In a side-by-side scenario with another SAP S/4HANA system, TM is inte grated with SAP GTS if transactional data and master data that is used therein originate from the same ERP system. SAP EM This function enables you to integrate TM with SAP Event Management (SAP EM) and to track and monitor events for business objects in busi ness processes. SAP EM offers visibility processes to monitor transporta tion execution in connection with TM. The transportation execution visibil ity processes enable users in roles such as transportation dispatcher, shipper, or ordering party, to track and monitor planned events or to re port an actual event. Tracking and tracing is provided for the following business document types in TM: Freight units Freight orders Freight bookings Transportation units Resources You can use product safety and stewardship (PS&S) services in TM to ensure the safe transportation of dangerous goods in accordance with legal regula tions. Please note that for PS&S services a separate license is required. 332 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions Key Feature Analytics Use This function enables you to collect and combine relevant data across different operational areas to answer business-related and specific questions. By ana lyzing this data, you get important insights and improved transparency, which are crucial for your operational and strategic decision-making. You can use operational reporting for real-time analyses of data from TM. If you use overview pages (OVPs) and the corresponding Core Data Services (CDS), you can access the data in your live system directly. Therefore, you always have real-time data for your evaluations and you can react promptly to meet your operational daily business needs and processes. TM provides several OVPs with multiple KPIs covering areas such as quantities, execution, tendering, business share, and allocations. 3.9.2 Extended Production Scheduling and Delivery Planning 3.9.2.1 Advanced Order Promising/ATP Business Background Internal sales representatives, order fulfillment managers and order fulfillment specialists require mechanisms to configure, execute and monitor availability checks and optimize the distribution of supply. This is particularly important when the availability of materials needed to confirm requirements is limited. You can use the advanced available-to-promise (ATP) capabilities to confirm on which date and in which quantity a requirement can be fulfilled. Key Features The following features are available: Key Feature Product Availability Check Use You can use this feature to determine on which date and in which quantity a re quirement can be confirmed, based on a specified checking rule and the cur rent supply situation for a specific material. The availability check takes con current requirements of differing types and their respective confirmation situa tion into consideration. SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions PUBLIC 333 Key Feature Product Allocation Backorder Processing Release for Delivery Use You can use this feature to allocate material quantities for a specific time pe riod and to a combination of characteristic values for sales orders and stock transport orders, against which availability checks can be run. You can use this feature to re-prioritize sales orders and stock transport orders and perform automated mass availability checks to ensure that a limited sup ply of material is distributed in accordance with a specific strategy. Optionally, your system assigns specific supply elements to the individual requirements. You can monitor the check results and, if necessary, re-run the check to im prove the confirmations for the requirements. You can use this feature to manually re-prioritize due sales orders to ensure that a limited supply of material is distributed in accordance with a dedicated strategy and available supply. After re-prioritization, you can trigger subse quent logistics processes. 3.10 Enterprise Technology 3.10.1 Digital Assistance Business Background SAP S/4HANA supports the integration with a digital assistant (currently SAP CoPilot) to allow users to get their work done more efficiently. Key Features When a digital assistant (for example, SAP CoPilot) is integrated and supports the below named features, SAP S/4HANA enables the digital assistant to provide the following key features: Key Feature In-Context Chat Quick Create Use The integration with the digital assistant enables you to exchange real-time in formation with your co-workers including notes, screenshots, and business or application data with the relevant business object context of the user. For selected use cases users can create business objects directly using the dig ital assistant. 334 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions 3.10.2 Geographical Enablement Framework Business Background Map-driven user experiences are ubiquitous, and they are enabled through mobile devices with built-in GPS receivers. Whereas consumers are quite satisfied by easily locating places and checking for directions, requirements in asset intensive industries such as Utilities, Oil & Gas, Mining, Public Services, and Transportation/Rail go far beyond simple use cases. Existing GIS (geographic information system) solutions that maintain multiple layers of map information, visualization of linear assets, and objects represented by polygons (example: a certain area of land) need to be merged with their related business processes and reflected in SAP solutions. Key Features The SAP Geographical Enablement Framework works as the foundation to extend business data with spatial attributes for SAP S/4HANA functions. As a framework that enhances the spatial capabilities inherent in SAP HANA, it enables organizations to develop geo-spatially enriched business data and make them accessible from within SAP S/4HANA functions, as well as external GIS systems. The framework is being delivered with a standalone Geometry Explorer, Geometry Editor, and a template for the Business Partner business object as an example for spatially enabling other business objects. The following table explains the key features available: Key Feature Geometry Explorer Geometry Editor External Connectivity Framework Development Technology Use The framework provides a standalone web-based Geometry Explorer. It allows the end user to view both business data from SAP S/4HANA functions and en gineering data from GIS systems on the same map to obtain better insights. It also allows the end user to access multiple SAP S/4HANA functions directly from the map to improve efficiency. The framework provides a standalone web-based Geometry Editor. It allows the end user to search, view, and update geometries for any geo-enabled SAP business object. Framework exposes the geometries and attributes of geo-enabled SAP busi ness objects as feature classes, to be consumed using standard GIS tools. The framework provides APIs for application development; it also provides ge ometry-buffering functionality for synchronization with the embedded map user interface, while updating geometry and application data concurrently. SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions PUBLIC 335 3.10.3 Legal Content Management 3.10.3.1 Managing Legal Documents Business Background You can use legal documents that were uploaded as static files. You can browse through the legal documents that were created or uploaded and modify them. Key Features The following table explains the key features available: Key Feature Displaying and filtering legal document objects Viewing the history of legal documents Downloading files Deleting documents Editing Documents Versioning Documents Archive objects Use You can view a list of legal documents and use the filter bar to either select a variant, or to filter the list by using the search or the individual filter fields. You can search for a specific change in the document and alter the view set tings. You can download a file that was uploaded to the document object and make the necessary changes. You can then upload the latest file to the document ob ject. You can delete a legal document, if it is not set as a mandatory document in a context. You can use the check out and check in option to edit documents. You can maintain different versions of the documents. This helps you to track the changes made in each version of the document or to identify the latest document. You can archive objects that have reached the end of retention period. 3.10.3.2 Managing Legal Transactions Business Background You can view, edit, and filter legal transactions. 336 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions Key Features The following table explains the key features available: Key Feature Archive objects Use You can archive objects that have reached the end of retention period. SAP S/4HANA 1709 SAP S/4HANA Enhanced LoB Functions PUBLIC 337 4 SAP S/4HANA Industry-Specific LoB Functions SAP S/4HANA Industry-Specific LoB Functions enhance core functions of SAP S/4HANA Enterprise Management to provide industry specific business benefit for your line of business (LoB). Please note that you might need a separate license. For further information, please contact your SAP Account Executive. 4.1 Agriculture 4.1.1 Agricultural Contract Management Business Background SAP S/4HANA Industry solution for Agricultural Contract Management provides a single source of truth for handling a diverse range of commodities contracts throughout their life-cycles. It supports a comprehensive range of business scenarios, agricultural-specific terms and conditions, market-based pricing and processes to effectively integrate finance and inventory. Key Features The following table explains the key features available: Key Feature Use Third Party Sales End-to-End Process You can use this feature to execute end-to-end third party sales processes from contract creation, goods issue, contract reassignment to incremental settle ment and revenue recognition. Third Party Purchase End-to-End Process You can use this feature to execute end-to-end third party purchase processes from contract creation, goods receipt, contract reassignment to incremental settlement and purchase realization. 338 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions Key Feature Use Contract Tolerances You can use this feature to define tolerances for overfill or underfill quantity that is calculated by comparing the actual delivered quantity to the planned contracted quantity. Defining the contract tolerances provides the ability to price over the delivered quantity separately. Quality Characteristic-based Discounts and Premiums You can use this feature to leverage the load-based captured qualities, such as moisture, to calculate: Quantity adjustments, such as shrinkage due to high moisture content Discounts and premiums for settlements Flexible Contract Assignment Framework You can use this feature to flexibly assign and reassign the loads (deliveries) to the contracts without the need for cancelling and rebooking the documents, in case of goods movements, for example. Flexible Pricing You can use this feature to flexibly price and reprice the contracts based on the Commodity Pricing Engine (CPE). A price can be assigned to the specific mar ket exchange and future periods. Title Transfer Scenarios You can use this feature to determine the place of title transfer, either origin or destination, based on the Incoterms location. Load Data Capture The Load Data Capture is a tool that gives the end user a unique interface to capture all required information (weight, quality, vehicle and so on) for incom ing and outgoing loads. The required documents, such as deliveries and goods movements, are processed by the transaction in the background without the need for an additional user interaction. Spot Purchase You can use this feature to process the spot purchases in which goods receipts take place without the prior contracts or purchase orders. The background contract creation based on the receipt information is supported. Provisional and Final Settlements You can use this feature to define the contract terms that have to be fulfilled before a settlement is set to the final status. Prior to the fulfillment of the con tract terms, the status is provisional. For a provisional settlement, only a certain percentage of the overall amount can be considered. For example, 80% of the calculated amount is charged in the provisional settlement and the remaining delta will be charged at the time of the final settlement. For provisional settlements, priced contracts are not required, while market prices can be used prior to the final setting of the contract prices. Revenue Recognition Process You can use this feature to defer the realization of the revenues unless certain requirements, such as title transfer and other contract terms, are fulfilled. SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions PUBLIC 339 Key Feature Intercompany End-to-End Process Intracompany End-to-End Process Commingled Stock Vendor Split Washouts Circles Use You can use this feature to execute end-to-end intercompany processes from contract creation, goods movements, contract reassignment to incremental settlement and revenue recognition. The following title transfer scenarios are supported: Origin Destination In-Transit You can use this feature to execute end-to-end intracompany processes from contract creation, goods movements to settlement. The following title transfer scenarios are supported: Origin Destination In-Transit You can use this feature to manage the third party stocks at your locations as well as your own stocks at the third party locations by tracking all deliveries in and out of the commingled stocks with the detailed quality information. The deliveries into commingled stock can be assigned to storage agreements from which the associated information about warehouse receipt (negotiable or nonnegotiable) can be captured. This feature provides the capabilities, such as: Load out including load out matching Purchase from the commingled stock In-store purchase and sales Calculation of necessary storage quantity adjustments Split of an inbound commingled load between several counterparties at the time of load data capture and application You can use this feature to split one load between multiple different vendors. For example, it is possible to split the load of one truck by assigning a partial quantity to the contract of one vendor, while assigning the remaining quantity to another contract owned by the different vendor. This feature allows two trading parties who have the same contract terms (such as commodity, quantity and delivery period) to agree to mutually offset and settle the contract without any movement of the goods. This feature enables to settle the contracts of two different counterparties, for example different legal entities (such as customer and vendor), financially without the physical delivery of the goods. 340 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions Key Feature Use Returns You can use this feature to automatically reverse the postings of both sales and purchase transactions. For a reversal of sales transaction, the goods are re turned to the own location, while a reversal of purchase transaction will return the goods to the vendor. A return is possible for either full or partial quantity. Position Reporting - Price Type Report The price type report is a period-based report which provides a holistic view over the contractually agreed quantities that are either fully priced, partially priced or unpriced. Position Reporting - Premium Report The premium position report is a period-based report which provides an over view of the basis risk without considering the futures risk. Position Reporting - Slate Report The slate report is a period-based report which provides an overview of future price fixation from the logistical contracts as well as from the future deriva tives. Mark-to-Market Report (for physical con tracts) The mark-to-market (MtM) report enables you to value the fixed contract pri ces against the latest market prices of a defined market exchange and a future period to calculate a gain or loss. The MtM report is available in the following versions: Current End-of-Day Day-over-Day Stock Mark-to-Market Report The stock mark-to-market (MtM) report provides the ability to value inventory against the latest market prices to calculate a gain or loss. Profit and Loss Analysis The profit and loss (PnL) analysis enables you to utilize several reports that at tribute the overall profit and loss from physical trading operations to impacting factors that are related to the commodity trading business. The following reports are provided: Beginning Position New Activity Fee Framework The fee framework provides the ability to create fees as master data and map them to the condition types. Fees can be created as a flat fee or a per unit of measure (UoM) fee, and can manually be assigned to one of the following documents or document levels: Contract Line Item Price Fixation (of a contract line item) Load Data Capture (LDC) Load or Unload Event Settlement Unit Fees that are assigned to a contract line item, price fixation or LDC are auto matically considered for settlement and charged accordingly. SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions PUBLIC 341 Key Feature Use Settlement - Lien Management The settlement lien process provides the ability to capture vendor-specific liens as a master data object. When creating a settlement group, the liens serve as a grouping split criteria to ensure that all units of a group have com mon liens. Weighted Average Calculation for Physical Inventory The weighted average calculation is a process which is automatically triggered for inbound processes via LDC, and calculates the weighted average quality factor of a given discount premium quality schedule (DPQS) characteristic. This feature also provides tools to monitor, and if needed, to correct the aver age calculated by the system. Contract Snapshots and Output Manage Contract snapshots provide the ability to configure the attributes that drive the ment relevancy of: Creating a new version of a contract snapshot Amending a contract Example A contract amendment form has to be printed and sent to the coun terparty, if the value of a certain field was altered. This process also provides the ability to monitor the contract signature status, if a signature was requested or has already been received from the counter party. 4.2 Automotive 4.2.1 Vehicle processes for Wholesale and Retail 4.2.1.1 Vehicle Sales and Distribution Business Background Vehicle Sales and Distribution allows you to sell and deliver new and used vehicles to your business partners. The vehicles that you offer can be based on different models from various vehicle manufacturers. 342 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions Key Features The following table explains the key features available: Key Feature Vehicle Sales (From the Stock) Vehicle Procurement (To the Stock) Vehicle Sales (Based on Order) Use You use this feature to allocate available vehicles and sell them to your busi ness partners. With the vehicle search option, you can search for vehicles that suit your business partner's desired configuration and properties. The vehicles that you find can be reserved for processing inquiries, quotations, or sales or ders. The delivery document is used while shipping vehicles to business part ners and to create billing documents for settlement. Trade-in or buy-back of used vehicles can be considered during sales. You use this feature to create and order vehicles with desired configurations from the vehicle manufacturer, when you plan to have these in stock. The pur chase orders that you create are forwarded to the vehicle manufacturer. The vehicles are shipped, received, and posted into stock. The supplier invoice is received and verified for settlement. You use this feature to sell vehicles that are not yet available, to your business partners. The manufacturer produces these vehicles based on the order and the configuration that your business partner requests. Once you receive the ve hicle with the requested configuration, you can perform a pre delivery inspec tion before distributing it to the business partner. The delivery document cre ated is used while shipping vehicles to business partners and to create billing documents for settlement. Trade-in or buy-back of used vehicles can be con sidered during sales. 4.2.1.2 Vehicle Ordering and Administration Business Background Vehicle Ordering and Administration allows vehicle importers, wholesalers, and distributors to interact with their dealers through a web portal. SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions PUBLIC 343 Key Features The following table explains the key features available: Key Feature Vehicle Sales Processing of Spare Parts Processing of Warranty Claims Use You use this feature to configure vehicles, create orders for vehicles, and find available vehicles that suit the desired configuration and other criteria. Once you submit an order, you can track the order status and progress using the web portal. You use this feature to order vehicle spare parts, return parts that are no longer needed, and track the order status and progress. You use this feature to create and manage warranty claims to vehicles and ve hicle parts. You can process the returns of claimed parts. Recalls from vehicle manufacturers can be displayed and can be used for claims processing. 4.3 Banking 4.3.1 SAP Deposits Management for Banking, SAP S/4HANA Edition Business Background SAP Deposits Management for Banking, SAP S/4HANA edition enables you to manage current accounts, fixedterm deposits, and savings. It offers various functions to support the lifecycle of deposit contracts. 344 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions Key Features The following table explains the key features available: Key Feature Use Management of master data You use this feature to manage deposit contract master data (such as the crea tion, changing, and display of deposit contracts). Examples of deposit contract master data include: General data such as account number, account currency, and account product Financial conditions (such as interest, value dates) Business partners assigned in different roles to the deposit account (such as account holder or authorized drawer) Monitoring of funds payable and receiva You use this feature to monitor funds payable and receivable between banks ble and their customers. Support of business operations You use this feature to manage various business operations such as account management (the creation of direct debits, product definition, check manage ment, and cash concentration, for example). Management of outgoing and incoming payments You use this feature to manage outgoing payments (such as credit transfer) and incoming payments (such as direct debit). Support of accounting processes You use this feature for accounting processes for debits such as the creation of standing orders. 4.3.2 SAP Loans Management for Banking, SAP S/4HANA Edition Business Background SAP Loans Management for Banking, SAP S/4HANA edition enables you to manage both simply structured loans, such as consumer loans, and complex loans, such as mortgage loans. It offers various functions to support the lifecycle of loan contracts. SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions PUBLIC 345 Key Features The following table explains the key features available: Key Feature Management of master data Calculation of cash flows Support of business operations Management of outgoing and incoming payments Support of accounting processes Use You use this feature to manage loan contract master data (such as the crea tion, changing, display, and archiving of loan contracts). Examples of loan contract master data include: General data such as contract number, contract currency, and commit ment capital Financial conditions (for interest payments, repayments, or charges, for example) Business partners assigned in different roles to the loan contract (such as main borrower or alternative payer) You use this feature to calculate cash flows based on the loan contract master data. You use this feature to manage various business operations such as disburse ment, waiver, write-off, borrower change, or payoff. You use this feature to manage outgoing payments (such as disbursements) and incoming payments (such as interest payments or repayments). It pro vides functions to support incoming payment distribution. You use this feature for accounting processes for loans such as the creation of debit items. 4.3.3 SAP Collateral Management for Banking, SAP S/ 4HANA Edition Business Background SAP Collateral Management for Banking, SAP S/4HANA edition provides banks with the front- and back-end support they need for collateral handling and risk mitigation. It offers functions to maintain, manage, and monitor the use of collaterals. 346 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions Key Features The following table explains the key features available: Key Feature Use Central source system for collateral man agement The component provides the benefits of a stand-alone application as well as software that integrates with operational SAP transaction systems (loans, de posits), customer information management, risk management, document management, and reporting. Process support for centralized collateral management The component manages objects and receivables. It provides integrated ob ject-management features that can store and value data for various collateral objects, such as real estate or securities. It also supports the connection with external collateral-object systems. In addition, the component enables you to retrieve and use receivables data, such as loan information, that is managed ei ther in SAP systems or third-party systems. Management of collateral constellation and calculations You can use this feature to minimize manual processing tasks and to provide a flexible way of mapping simple and complex relationships between receivables, collateral assets, collateral providers, and collateral assignees. You can use the software to support calculations such as collateral cover, col lateral distribution, loan-to-value ratios, calculation of free collateral, and col lateral shortfalls. 4.3.4 SAP Reserve for Bad Debts for SAP S/4HANA Business Background SAP Reserve for Bad Debts for SAP S/4HANA (FS-RBD) enables you to create and manage the necessary risk provisions (value adjustment and provision) for their business. It supports the management of single risk provisions as well as flat-rate risk provisions. SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions PUBLIC 347 Key Features The following table explains the key features available: Key Feature Use Single risk provision (specific impairment) FS-RBD enables you to create proposals for a single risk provision that can be adjusted by the credit officer. The proposals are structured on the basis of pre defined institute-specific rules. The component also supports the expected cash flow approach that allows you to adjust your single risk provision with many different functions, such as special payments, expected revenue or the liquidation of collaterals. You can model single risk provision at the level of the risk units Contract, Part ner, and Finance Project using the following procedures: Expected cash flow procedure This procedure enables single risk provision to be created in parallel for two financial accounting standards. The risk provision will be calculated by GAAP-specific book values combined with the net present value of the modeled cash flow expectation. FS-RBD offers extensive functions for modeling the expected cash flow based on contractual cash flows, spe cial payments, and the expected revenue from the liquidation of collateral. Outstanding and open item procedure Risk provision is managed differently according to capital (effective capi tal, possibly reduced by applicable collateral values), open items for inter est, and open items for charges. Flat-rate risk provision (general/collective impairment) FS-RBD supports the flat-rate value adjustment procedure, which adapts the risk provision for credit transactions that are not included in the single risk pro vision by a percentage defined by different risk indicators. Risk provision is managed at the level of single transactions. Real-time connection of financial account ing and reporting When the risk provision is posted, the system immediately transfers all bal ance-sheet-relevant data to financial accounting. This real-time connection means that data is available for internal and external reporting in an instance. Seamless integration The component contains interfaces that enable you to use both SAP systems and non-SAP systems as a source of data. Depending on the risk provision method and the analysis horizon, the source systems (SAP and non-SAP) are connected using standard online interfaces (extractors) or standard open interfaces. 348 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions 4.4 Insurance 4.4.1 Policy Management for Insurance Business Background Policy Management for Insurance allows you to manage insurance contracts. You can map the lifecycle of a contract, starting from the creation of an application, through policy issuance and ongoing contract maintenance, right up to the reversal of the contract. The following insurance lines of business are supported: Personal Life Personal P&C Personal Auto Key Features The following table explains the key features available: Key Feature Issue Policy Change Policy Reverse Policy Update Policy Use You use this feature to create new applications and issue it to generate a policy. You use this feature to change policy characteristics through the lifecycle of a policy. You use this feature to reverse a policy. You use this feature to bring a policy through the lifecycle of a policy, like per forming adjustments or collection of premiums. SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions PUBLIC 349 4.4.2 Insurance Product Engine Business Background Key Features The Insurance Product Engine msg.PMQ allows you to manage the lifecycle process of your insurance products from designing new products up to running existing products. The product engine consists of a design time environment for product modeling and a runtime environment for product operation. Key Feature Product Modeling Product Operation Use You use this feature to create and maintain insurance products for the sup ported insurance lines of business. An insurance product consists of product defining objects (e.g. product attributes and tables), mathematical and insur ance calculations. The design time environment comprises test and debugging functions. When you have finished the design process, the product data can be used in the run time environment. You use this feature to perform tariff and insurance calculations. These serv ices can be consumed by different insurance applications, such as Policy Man agement for Insurance. 4.4.3 Claims Management 4.4.3.1 Claim Lifecycle Business Background You use Claim Lifecycle to automate and manage the entire claims process, from first notification of loss to claims adjustment and financial reporting. The following lines of business are supported: P & C insurance, including the following lines: Property (home contents) Liability Automobile Health insurance Private health insurance Statutory health insurance 350 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions Life insurance Care insurance Private care insurance Statutory care insurance Workers Compensation Key Features The following table explains the key features available: Key Feature Claim Notification Claim Processing Use You use this feature to record a notice of loss received through different chan nels and create a claim. You can capture first relevant information and evaluate the claim. The system supports you with an automated claim handler assignment. You use this feature to capture all relevant claim data supported by a Struc tured Facts Capture (SFC) and a Business Rule Framework (BRFplus) tool. All required business processes like investigation, evaluation, negotiation, litiga tion, subrogation, settlement, and archiving are supported. 4.4.4 Insurance Billing and Payments 4.4.4.1 Billing and Payments Business Background You use Billing and Payments to perform all collection and disbursement tasks across different lines of business. These tasks include open item accounting, payment processing, incoming payment processing, correspondence, and dunning. You can also map broker accounting and coinsurance business. Billing and Payments allows business process automation and integration with operational insurance systems and back-office applications such as the general ledger. SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions PUBLIC 351 Key Features The following table explains the key features available: Key Feature Use Billing and Collections You use this key feature to integrate billing and collection activities. This ena bles you to centralize billing and collections. As a result, payment handling is more accurate and credit control is improved. Disbursements You use this key feature to automate and integrate front-office and back-office processes and systems across lines of business. Supporting a single, inte grated system to run payment handling decreases the need for manual trans actions and associated costs. Collections and Disbursements for Rein surers You use this key feature to centralize collections and disbursements in a mod ern technology platform. Integration with general ledger systems ensures al most non-disruptive, end-to-end business processes that make reinsurance business process automation possible and reduce transactional costs. When reinsurance organizations consolidate collection and disbursement ac tivities, they drive accurate payment processing, credit control, and improved customer satisfaction. 4.4.5 Compensation Operations Business Background You can reproduce sales structures and set up flexible incentive systems. You use standard agreements as the basis for creating individual agreements and settling commission cases. Key Features Key Feature Compensation Planning 352 PUBLIC Use You use this feature to design a consistent remuneration plan, break down your company's strategy to specific sales targets, and cascade plan changes. You can easily build new organizations into its sales composition and integrate com pensation for the sale of newly designed products. SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions Key Feature Sales Portfolio Assignment Sales Force Accreditation Compensation Operations Use You use this feature to assign field services to customer seg ments and manage business portfolio relationships, as well as transfer assignment from one agent to the other. You use this feature to keep employees up-to-date on the lat est rules and regulations by verifying sales force qualifications and linking sales force credentials to compensation. You use this feature to align internal and external sales tar gets with a company's overall strategy - and automates sales force compensation for meeting those targets. 4.4.6 Statutory Reporting for Insurance 4.4.6.1 Statutory Reporting for Insurance Business Background You use Legal Statutory Reporting for Insurance to meet statutory requirements for quarterly reporting and reporting on premium reserve funds and also to create reports for capital investments according to BerVersV and then send to BaFin. Key Features The following table explains the key feature available: Key Feature Use Statutory reporting requirements for capi tal asset management You use this feature to deliver required reports in specified layouts or electronic formats that correctly chronicle risks and portfolio data to national and inter national authorities. You can create forms or electronic formats from actual subledgers. Statutory reports can be preconfigured with relevant data on re porting layouts for country/region-specific or international versions. SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions PUBLIC 353 4.5 Oil & Gas 4.5.1 Production and Revenue Accounting Business Background Production and Revenue Accounting integrates production volume allocations, division order management, sales contract allocations, volume pricing and valuation, royalty/working interest owner revenue distribution, payment processing, and state and federal reporting and compliance to provide a comprehensive solution that enables Upstream Oil and Gas companies to efficiently manage their vital Revenue Accounting processes. Key Features The following table explains the key features available: Key Feature Ownership Production Use You can create the master data used throughout Production and Revenue Ac counting to provide a single source for Division Order information. This module utilizes common master data sources from the business partner and joint ven ture accounting modules, and extends these to support Revenue Accounting functions. The ownership module supports: owner transfers, funds transfers, owner consolidations, and changes in pay status. Ownership master and trans actional effective-dated data is used directly in the Revenue Accounting proc esses, including chain of title, gross and net revenue interest, tax and market ing exemptions, pay status, special entity types, carried owners, Blanchard scenarios, and prior period adjustments. The Production application area allocates volumes for materials such as oil or gas from custody transfer points and other points for measurement, back to the source well completions. Production master and transactional data sup ports effective-dating and includes a framework for managing changes affecting prior periods. Complex production scenarios can be modelled, including scenarios of: gas lift, return lease fuel, multiple streams, fuel systems, load oil, skim oil, and water chain. 354 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions Key Feature Sales and Balancing Valuation/Revenue Distribution Check Input Use The Sales and Balancing module extends the volumetric data from the produc tion module with associations and allocations to contracts and owners. Master data supported in this area includes maintenance of marketing relationships for sales as well as allocation rules. Upon receipt of contract sales data, an allo cation of sales volumes is performed to the source well completions and to the associated owners. Actual and entitled owner volumes are derived for use in product balancing and revenue accounting. Prior period notifications and ad justments are supported. Balancing statements can be managed and made available for partners. The Valuation module allows you to derive the value-based outcomes of a net work of producing entities in a sales period and to allocate these amounts to owners, posting detailed accounting entries to a common ledger. The process supports the following key functions: Settlement diversity: where a royalty owner is valued on a different basis than the producer Formula-based value calculations for: Actual, Entitled, and Settlement Di versity scenarios Contract pricing based on fixed or formula schemes Pricing formulas can reference published postings, including gravity scale adjustments Capture of internal and external marketing rates Calculation of supported agency taxes, including support of exempt enti ties, owners paid on gross, owners free of marketing costs, classification of certain entities to receive special rates Prior period adjustments, including re-allocation of funds due to historic owner transfers Settlement statement option for input that allows for direct entry of values into a revenue distribution Dual accounting for US-based ONRR scenarios Changes to key master and transactional data that can impact a closed settlement will trigger a prior-period adjustment notification, where users can later manage these notifications and take appropriate action You can process payments received from a third party purchaser or remitter's remittance statements into the SAP Oil and Gas system with standardized data. This process includes support for formatting and processing inbound CDEX files. SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions PUBLIC 355 Key Feature Payment Processing Account Receivable Production Regulatory Reporting Responsibility Area Use You can: Void or un-void checks to help in the management of bank reconciliation View or update the status of checks Analyze the variance between the current and last payment made to an owner based on month or check Auto-clear checks from bank upload file View balance amount to be paid for each owner Manage minimum pay requirements based on tolerances set by the state with the capability to override by owner Allow state backup withholding and federal backup withholding for the US Allow NRA withholding for foreign owners Set additional validation using special handling codes Check if checks are consistent across check writes by running variance re porting Run check writes at various levels--for example, at the company level, the owner level, the DOI level, or the network level Create CDEX outbound files for management of standard check file distri bution Hold a check for pending analysis therefore not sending a incorrect check You can manage accounts receivable balances. The accounts receivable balan ces are updated real time when respective Accounting Document postings take place. This function allows you to view information on current, accounting periods, and historical accounts receivable balances, create comments and categorize balances, transfer balances and write-off balances You can produce volumetric reports based on production data. These reports are used to meet the requirements of many state and federal agencies. You use the Responsibility Area to specify who is responsible for what on the basis of entities (like the geographic locations and venture DOI) applicable for Office of Natural Resources Revenue, Production, Payment Processing, and Ac counts Receivable. 356 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions Key Feature Tax and Royalty Reporting Use You can: Manage master data relationships between State and Federal tax and roy alty entities and PRA identifiers Maintain special tax reporting relationships (for example, New Mexico suf fix data) Use a report processing engine that provides complete control of execu tion to from validation of master data and extraction of master data for processing to report processing and review/correction before posting of journal entries and authorization for payment Use various reconciliation and variance reports, auto suspension of re cords for processing, and out of statute records management 4.5.2 Inventory and Movement Management Business Background Inventory and movement management allows you to streamline processing and tracking of all hydrocarbon movements and inventory positions. You can consistently execute and track hydrocarbon movements and inventory updates. You can capture and track inventory information and product movements; supports quantity conversions, automatic duty and tax calculations, and pricing updates; and speeds post-movement settlements, such as invoicing and freight settlement. Timely and accurate inventory information leads to better visibility, decision making, and confidence around forecasts, replenishment planning, and trading. Consistent and automated product movement processing promotes stock updates; expedites contract-to-cash and procure-to-pay cycles; and reduces reconciliation, duplication, and corrections. 4.5.2.1 Hydrocarbon Product Management Business Background Hydrocarbon Product Management (HPM) addresses Oil & Gas specific industry requirements in inventory management. It provides additional quantity fields for different units of measure HPM provides a flexible Quantity Conversion Interface (QCI) that allows the conversion of volumes, masses and energy at ambient conditions (temperature, pressure, vapor pressure, calorific value, density) into volumes, masses and energy values at standard conditions. In addition, the Quantity Conversion Interface enables the calculation of density and heating value at standard conditions and functionality for managing physical inventories in tanks via Silo management by creating tank dips, and comparing those inventories at any time with the book stocks. SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions PUBLIC 357 Key Features The following table explains the key features available: Key Feature Use Material Master with Oil & Gas character istics Inventory management for Oil & Gas materials requires industry specific ex tensions: base unit of measure (UoM), Unit of measure group and conversion group are important additional information for an Oil & Gas material in the ma terial master. Additional fields like Air Buoyancy factor, Excise Duty Group play an important role for Oil & Gas materials and are reflected in HPM as well. QCI Hydrocarbons are bulk products in liquid form that are processed and shipped in large quantities by the Oil & Gas industry. Even the smallest fluctuations in temperature can result in considerable fluctuations in volume, and as a result, to significant fluctuations in value. The oil quantity conversion enables the con version of quantity of a hydrocarbon product into different UoMs and allows an accurate correction of volumes and density. The quantity conversion itself uses external algorithms which are accessed through the Quantity Conversion Inter face (QCI). Based on QCI parameters & values, conversion from one UoM to another is possible. Silo Management Silo/Tank Management allows a company to record physical material stocks in tanks (silos) either hourly, daily, or weekly. As a part of that process, tank dips can be recorded. The physical stock readings (tank dip readings) can be com pared at any time with book inventories (storage location stocks, batch stock, or special stock), or with changes in book inventories (goods movement re cords). In that way, gains and losses can always be determined and goods movements can be monitored. 4.5.2.2 Tariffs, Duties and Permits Business Background The solution calculates and posts excise duty for dutiable materials. The system calculates and posts excise duty when a goods movements occurs, based on the quantity of material moved, and the location information of the material, if required. The component covers: Calculation of excise duty in purchasing and sales Calculation of excise duty in inventory management and physical inventory (for example, excise duty calculations for material when there are goods movements between plants with different ED rates) Calculation of excise duty in production orders Calculation and posting of excise duty liabilities and claims for goods movements of dutiable material Split inventory management of the ED portion and net price of a material The use of several excise duty rates for a material 358 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions Revaluation of inventories after changes to excise duty rates Licenses for excise duty (ED) reductions and exemptions Region-based calculation of excise duty Data pool for creating reports. Key Features The following table explains the key features available: Key Feature Use Calculation of Excise Duty in Purchasing When purchasing contracts or purchase orders are created, the system pro poses excise duty data from master records or from Customizing based on the default hierarchy . This data is used to calculate excise duty. Excise duty post ings and inventory postings do not take place until goods receipt, however. Whether or not the material is ED-paid is important for excise duty postings, and whether the receiving plant or storage location is an ED-paid area or an ED-free location Calculation of Excise Duty in Inventory Management and Physical Inventory For dutiable material that is moved (goods movement), the system calculates the excise duties based on the quantity of material moved. Depending on the Customizing settings, the system determines and posts excise duties for the following goods movements and special forms of procurement: Goods receipts Goods Issues Transfer postings Physical inventory Goods movements for customer special stocks Subcontracting Third-party business Consignment Calculation of Excise Duty in Sales When sales contracts or orders are created, the system proposes excise duty data from master records or from Customizing based on the default hierarchy . This data is used to calculate excise duty. However, excise duty postings and inventory postings are made at the time of the goods issue. Whether or not the material is ED-paid is important for excise duty postings, and whether the receiving plant or storage location is an ED-paid area or an ED-free location SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions PUBLIC 359 Key Feature Use Calculation of Excise Duty in Production Orders When a dutiable material is produced with components that are also dutiable, excise duty calculation is required in the goods issue and goods receipt. If only the components are dutiable but not the finished product, excise duty postings are only made for the goods issue. Excise duty postings that refer to production orders can only be at the full ED rate, or are ED-free. Excise duty postings at reduced rates are not possible. Revaluation of Excise Duty Inventories If the excise duty rate changes, the excise duty value of the inventory also changes. This means that your company has new tax liabilities if there are tax increases, and can make tax claims to the tax office if there are tax reductions. You do not necessarily have to reevaluate excise duty immediately after a tax rate changes. After you have entered the new ED rate in the ED rate table, the system forwards the excise duty inventory with the old ED rate. However, the system posts the ED liabilities or claims with the new ED rate. It posts the dif ference between the old and new ED rates to a separate account. At the time when you want to perform an ED revaluation, the system alters the value of the excise duty inventory in accordance with the new ED rate. The sys tem writes off the difference between the old and new ED rates. A special ledger structure (FI-GLX) is provided for reporting purposes, and contains da tabase structures for individual items and for summary data. You can use these structures to evaluate ED postings based on various key fields, for exam ple: Company code Plant G/L account ED status (valuation type) ED status (FROM location of the material movement) ED status (TO location of the material movement) Handling type When excise duties are calculated and posted, the system fills the relevant spe cial ledger structures. The system enters all transactions with dutiable materi als in the special ledger, including those that do not involve ED postings, such as movements between two ED-free plants or storage locations. Once you have installed the structures, you can design your own reports using the Report Writer and Report Painter. 360 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions Key Feature Calculation of Cross-Company/CrossCompany Excise Duty Use The following functions are available within cross-company or cross-border sales of excise dutiable material: You can map and monitor the following goods movements: Export (goods issue in issuing plant/issuing storage location) Import (goods receipt in cross excise duty plant/cross excise duty storage location) Sales to customer (goods issue in cross excise duty plant/cross excise duty storage location) You can calculate and post excise duties for the following cross-company/ cross-border sales scenarios (with and without using bulk shipment in the transportation and distribution (TD) component): Pickup by the customer Change of title at discharge Change of title at loading 4.5.2.3 Transportation and Distribution Business Background The Transportation and Distribution (TD) covers the logistics activities related to: Delivery of product from a delivering plant to a customer Transfer of product between two company-owned locations Receipt of purchased product from a vendor. These activities are carried out across the processes of scheduling, load confirmation, and delivery confirmation. The following organizational units are used to support oil industry processes. These are also data retention levels in the system. Transportation Planning Point Intransit Storage Location Intransit Plant Integration The Hydrocarbon Product Management (HPM) application area supports the calculation of standard volumes using temperatures and densities. TD and HPM are integrated so that TD supports multiple units of measure within the same transaction. Temperature and density are important factors in the loading, and delivery process. SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions PUBLIC 361 Key Features The following table explains the key features available: Key Feature Use Bulk Shipment Type The bulk shipment type: Determines how the shipment is processed Is a mandatory entry on the initial scheduling screen Cannot be changed once the shipment has been saved In Customizing each bulk shipment type has a text describing the characteris tics of that particular entry. These descriptions should be made as explicit as possible to help when selecting a shipment type during scheduling. Create/Change Attributes for Batch Mate rial and physical inventory Using this function you can create new batches and change the attributes of batches during the loading confirmation and delivery confirmation processes. If material is mixed from different batches, a new batch is generated, often with new classification attributes. With this function you can change the attributes of the new batch at loading and delivery confirmation. Loading Confirmation During loading confirmation, the system creates a new batch to represent the product on the vehicle. When creating the new batch, the system takes the attributes for the material on board (in-transit) from the master data record of the batch material. Delivery Confirmation During Delivery Confirmation, the system updates the shipment with the actual quantity delivered to the customer. You can change the in-transit storage location and batch in much the same way as during load ing confirmation. However, this function only applies to underlying documents that are discharge relevant Shipment Worklists and Mass Processing The shipment worklist is a central access point for working with bulk ship ments. The worklist can be used to process single shipments or multiple ship ments that match specific selection criteria. The worklist can be used for the following activities: You can search for bulk shipments using specific selection criteria You can use the resulting list of shipments as a worklist for processing, changing, or deleting shipments You can process single shipments so that they reach a specific target sta tus You can process shipments in batch mode so that they reach a specific target status You can check the results of the processing in an application log 362 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions Key Feature Scheduling Loading Confirmation Delivery Confirmation Use The scheduling process helps you to plan your shipments and involves the fol lowing activities: Group underlying documents including deliveries, shipping notifications and reservations into shipments. Assign shipments to an appropriate vehicle, transport unit, and compartment. Assign a driver to the vehicle (optional). Change the quantities of product to be shipped. Plan transport-related activities using the event handling function The process of load confirmation records the actual quantities and products loaded for a particular shipment. Manual load confirmation is an alternative to data entry using a Terminal Automation System. Several different processes occur within the load confirmation step, the most important being the entry of actual loaded quantities. Quantities in scheduling are planned quantities and are proposed at the load confirmation stage. The planned quantities and the quantity of the products actually loaded may have changed. You can enter these quantities in the quantity field, or you can enter readings from Vehicle Meters or Rack Meters. In cases where product had been previously left on the vehicle, you can record these quantities in the shipment as prior-to-load quan tities. The concept of intransit stock is central to the loading process. A goods movement occurs when the product is moved into the intransit storage loca tion, at which point Quantity Conversion Interface (QCI) parameters can be calculated and stored. In addition, any excise duty postings which are a conse quence of the goods movement are also performed. The delivery confirmation process is used to confirm the delivery of actual quantities in a bulk shipment. The following diagram shows the underlying processes involved with delivery confirmation. Delivery confirmation is the final step in processing bulk shipments. It enables you to enter the final quantities delivered and to process the differences between quantities delivered and loaded. Several options exist for processing product that has been loaded but not delivered. Delivery confirmation must be completed for each vehicle in the shipment. The vehicles in the shipment each have an individual status, how ever, it is not until the shipment has a Shipment Status of 6 that shipment processing is complete and the final postings are made. Delivery confirmation is also a prerequisite for Shipment Costing. SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions PUBLIC 363 Key Feature Transportation Planning Interface Use Terminal Automation System Interface This interface allows data on loading transactions (loading information) to be sent from SAP Oil & Gas to an external system (Terminal Automation System). After the loading transaction has taken place, the external system sends the loading information back to SAP Oil & Gas, where it is processed automatically. The interface supports the transfer of loading information for the following business processes: pick-ups, shipments, goods movements, and physical in ventory counts. The Terminal Automation System Interface supports the fol lowing functions: Sending loading information to an external system Receiving loading information from an external system that is destined for SAP Oil & Gas: Using IDocs and ALE Using an internal table and a Remote Function Call (RFC) Manually entering loading information in SAP Oil & Gas Processing loading information in SAP Oil & Gas Depending on whether the loading information is entered in a sales contract, order or contract call-off, or a shipment, the system calls various function modules for further automatic processing. 364 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions Key Feature Unified Shipment Interface Use Depending on whether the loading information is entered in a sales contract, order or contract call-off, or a shipment, the system calls various function modules for further automatic processing. Interface for Delivery Confirmation Processing This interface helps to automatically create delivery confirmations in SAP Oil & Gas. The delivery confirmation is the final step in the shipment process. It con tains all data relevant for delivering bulk product. The interface helps to copy this data from external systems to SAP Oil & Gas. The following interfaces in the Transportation and Distribution (TD) compo nent are available for exchanging shipment data with external systems. The shipments whose data is to be transferred, have various shipment statuses: Transportation Planning Interface (TPI interface) for shipments with sta tus 1 (partly scheduled) and status 2 (completely scheduled). The data is transferred using IDoc OILSHI01 to SAP Oil & Gas, where function module IDOC_INPUT_OILSH1 or IDOC_INPUT_OILSH2 (if the shipment comparer is used) is called. Terminal Automation System interface (TAS interface) for shipments with status 3 (partly loaded) and status 4 (completely loaded). The data is transferred using IDoc OILLDD01 to SAP Oil & Gas, where function module IDOC_INPUT_OILLDD is called. Interface for delivery confirmation processing (DCP interface) for ship ments with status 5 (partly confirmed) and status 6 (completely con firmed). The data is transferred using an RFC to SAP Oil & Gas, where function module RFC_SHIPMENT_DEL_CONF_PROCESS is called. 4.5.2.4 Marketing, Accounting and Pricing Business Background The solution Marketing, Accounting, and Pricing (MAP) is enhanced with additional functions required for the downstream oil business. SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions PUBLIC 365 Key Features The following table explains the key features available: Key Feature Use Contract pricing Contract pricing determines the price of a material based on the contract. The contract number is used as a reference in sales documents to allow contractspecific pricing. Cumulative contract call-off pricing In cumulative call-off pricing, the price of a material is determined dependent on the (current) order quantity invoiced. Cumulative call-off pricing makes it possible to give a customer a discount based on the quantity already invoiced. Customer price lists The customer price list simulates the pricing which would be performed in an order. You can use the customer price list to view prices for a pre-defined list of frequently ordered products and quantities. Default pricing dates Carry forwarded from sales order Head office and branch level pricing Pricing procedure of a head office for customers that are assigned to the head office can be used . relationship between head office and branch offices in the customer master data record can be set up. Location flexible pricing using the differen- The Differential Reference Code (DRC) is a means of grouping ship-to custom tial reference code (DRC) ers according to their geographic location. It enables you to construct a pricing strategy based on market conditions in specific areas. Time pricing In the oil industry, product prices often change several times a day. For exam ple, during the busiest hour at the loading site, the prices could be higher. Date and Time Pricing allows flexible pricing, which takes the time of day into ac count. Gross and net volume pricing Gross and Net Unit Of Measure pricing is to control if the system should deter mine the price of a material based on gross or net unit of measure. Formula and average pricing Formula and Average (F&A) Pricing uses external quotations such as Platts, Reuters, and others to determine the price of a material. It can be used both on the purchasing side (MM) as well as on the sales side (SD). The purpose of formula and average pricing is to enable the calculation of product prices based on external quotations over a set time period. The calcu lation is performed with company-defined calculation rules. Currency fluctuations within the time period are taken into account either by daily conversion or by averaging. Differential invoicing If the product is delivered before the averaging period has elapsed, it is neces sary to create a provisional invoice. When the averaging period has ended and the final price is known, the price difference is invoiced by creating a differential invoice. 366 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions Key Feature Use Origin, destination, and external data in the sales and purchasing cycle Using External Details in sales documents and purchasing documents, we can store additional information on the origin and the destination of the ship-to party as well as other information which is relevant for shipping. This informa tion is used for calculating US excise duty, among other things. You can also set additional delivery data and define the following additional fields Conditional exclusion (highest prices) Condition exclusion technique with the IS-Oil enhancement which allows selec tion of the highest price. Alternative pricing date at invoicing Pricing date & pricing time ,loading date & loading time can be updated at the creation of invoice Five-decimal pricing Five Decimal Pricing allows us to create condition record for prices ,sur charges, discounts with five decimal places. ->Subtotals of a document cur rency with five decimal places result in more accurate calculations and are in tended for the following purposes. Additional Information on Invoice Output The print program RVADIN01 for invoices has been enhanced to include gross/net Hydrocarbon Product Management (HPM) data on the invoice form MAP_Invoice . Using this print program, you can include additional informa tion on the invoice, such as the temperature and density of the material. Integration with SAP Commodity Procure The extended features for commodity procurement allows you to ment Create commodity purchase orders Define flexible pricing rules based on market prices and qualities using De rivatives Contracts Specifications (DCS) and Commodity Pricing Engine (CPE) Verify new Material Management provisional and final invoice Integration with SAP Commodity Sales The extended features for commodity sales allows you to Create commodity sales contracts and sales orders Define flexible pricing rules based on market prices and qualities using De rivatives Contracts Specifications (DCS) and Commodity Pricing Engine (CPE) Authority to Load (ATL) credit check for TSW nominations Verify new Sales Distribution provisional and final invoice SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions PUBLIC 367 4.5.2.5 Marketing, Contracts and Order Entry Business Background The solution Marketing, Contracts, and Order Entry meets the requirements of the oil industry in the areas of fast order entry and contract processing. Customer order processing and contract processing have been enhanced with the following functions: Calculation of excise duty in purchasing and sales Automatic determination of organizational data Display and defaulting of items from the last order Determination of a sequence of up to five preferred delivery plants for the delivery of the goods Release of non-delivered quantities of a contract call-off Restrictions for deviations from the contract conditions Redetermination of the item type during order entry Key Features The following table explains the key features available: Key Feature Purchase Order Number as a Required Entry Contact Person Details Use If a customer order number appears on the order for that customer, you can define the PO number (purchase order number) field as a re quired entry. You can save specific information about contact persons at the cus tomer location in the Contact person view of the customer master re cord. Contact person details can contain the following information: Last name and first name of the contact person Telephone number of the contact person Form of address Department Function 368 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions Key Feature Last Order Number Item Category Redetermination Automatic Plant Determination Excise Duty Partner Function Plausibility Check Use When you create an order, the system looks up then number of the last order that was created for the same ship-to party, sold-to party, and sales area combination. If an order exists, the number is displayed in the Last order field in the Create order: Overview screen. In such a case you have the following options: You can display the last order You can copy items from the last order into the order you are processing. You can copy the following data: The material in the last order The material and quantities in the last order Individual items from a selection list You can search the order history for orders with other ship-to party, sold-to party, and sales area combinations by entering R as the matchcode ID in the matchcode search. During sales order processing, the system can automatically change the item category to the one configured for the customer/material combination. The system uses the item category determined by the standard procedure together with the customer classification and ma terial group to determine a new item category. This can be used, for example, in consignment processing. Using item category redetermi nation, consignment materials can be entered in the same sales order with materials which are sold normally. You can also configure the item category redetermination for any other item categories. If you do not set the IS-Oil planExcise Dutyt determination indicator PD , standard plant determination is invoked. In this case, the system searches for the delivering plant in the following sequence: Customer-material information record Customer master Material master If the material is subject to excise duty, the system displays informa tion about the excise duty status in the HT(excise duty handling type) and To (excise duty tax key for "to" destination) fields. The definition of the fields is contained in the Tariffs Duties and Permits (TDP) compo nent. You must define theED group (excise duty group) field in the Oil specific data view in the material master record. The system checks whether a ship-to party has already been assigned to another sold-to party in a specific sales area. SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions PUBLIC 369 Key Feature Contract Handling Multiple Ship-To Parties Per Contract Restrictions for Contract Call-Offs Final Delivery Indicator Use Contract handling covers the following activities: Set up call-off restrictions to force compliance with contract terms Quantity correction of call-offs using the final delivery indicator Assign multiple ship-to partners to a contract With this function you can link multiple ship-to parties to a single con tract. You can also delete or add ship-to parties to contracts that al ready exist. The following restrictions can be entered in the contract. Call-offs which deviate from the contract restrictions trigger a message. The message type indicator setting in the contract determines which type of message displayed. Product restriction: A contract call-off can only contain items which were created with reference to a contract. Thus, no materi als can be called-off without a reference to a contract. Quantity restriction: Over-delivery is impossible. Unit of measure restriction: No change to the unit of measure is allowed. Ship-to party restriction: A call-off is only allowed for ship-to par ties which are defined in the contract (see also: Multiple Ship-to Parties per Contract). Terms of payment restrictions: No change to the terms of pay ment is allowed. Validity restrictions: Checks the beginning and the end of the val idity period. The final delivery indicator is used to release non-delivered quantities at contract level for a contract call-off that is the quantity is available again on the contract for a contract call-off. If there are partial deliveries for a contract call-off, when you set the final delivery indicator in the delivery document, the non-delivered material of the quantity in the contract can be re-added to the con tract quantity. In addition, the system assigns the status fully delivered to the contract call-off. 370 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions 4.5.2.6 Marketing Retail Network Business Background A company may carry out its business operations at a large number of different locations. Each of these business locations has its own story to tell in terms of performance and profitability. For oil companies, the business location is typically the service station, but may include depots and non-fuel sales outlets. This component provides functions for managing business locations such as service stations, depots and terminals. With these functions you can manage sales data, data on vendors, dealers, supply contracts, plant maintenance, and so on. The system allows you to enter and integrate all relevant data on business locations, independent of the geographic location, in a virtual database. In this way, Marketing Retail Network (MRN) supports a multitude of functions, from delivery planning to profitability analysis. Key Features The following table explains the key features available: Key Feature Use User-Defined General Data for a Business Location A link is provided from the business location to the long text handling utility. The link supports the centralized storage of text-based information for each business location. The MRN Location Management application is sometimes described as a vir tual application. This is because the application has no transaction data of its own, rather it uses transaction postings in related components, such as Sales and Distribution (SD) and Controlling (CO) to derive information about the business location in terms of revenue and profitability. The MRN Location Management application provides enhanced handling of SD Sales Contracts for Retail Network users. Marking Business Locations for Deletion You can only archive a business location record if it is marked for deletion. MRN Data Archiving Archiving Procedure This process describes the basic procedures when performing an archiving session. You are in the Archive Administration; Initial Screen (transaction SARA). You have entered the name of the archiving object in the Object Name field. Archive administration has access to the archive files you want to reload. SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions PUBLIC 371 4.5.2.7 Bulk Distribution Requirements Planning Business Background The solution optimizes planning in petroleum product distribution. It supports the active management of customer inventory by a vendor inventory (VMI: vendor-managed inventory). The vendor can use it to pre-plan replenishment deliveries to a customer. Key Features The following table explains the key features available: Key Feature Site Control Parameters (SCP) Replenishment Control Parameters Storage Object Characteristics (SOC) Sales Meter Management Use Site control parameters record site information that is used to control or influence bulk logistical processes such as delivery planning, shipment scheduling and unloading operations. You can enter material-specific parameters to control bulk replenishment at a delivery site by using the replenishment control parameters screen for that site. In connection with bulk material handling processes such as delivery planning, scheduling and unloading operations there is a requirement to record informa tion about the tanks, containers or silos that are used to receive the bulk mate rial. In connection with bulk material handling processes such as delivery planning, scheduling and unloading operations, there is a requirement to produce flow meter data and convert it to product quantities. 4.5.3 Bulk Supply Chain Operations Business Background Bulk supply chain operations allows you to integrate process management for hydrocarbon products, from post-planning to scheduling to post-custody transfer. It supports you in day-to-day operational scheduling, nomination, tracking, inventory projections, custody transfers, and service management for bulk hydrocarbon supply chain movements. It provides you a single, comprehensive platform for managing inventory, scheduling, and transportation processes; integrates external systems for trading, production, and service provider analytics; and automates routine tasks in the background. As a result, hydrocarbon providers can reduce inventory working capital, lower transportation and storage costs, improve fleet utilization, make more informed decisions, and eliminate overhead time and costs. 372 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions 4.5.3.1 Exchanges Business Background The solution enables the setup of exchange agreements between oil and gas companies and handles the exchange of products at various locations. In order to manage exchange business transactions, you can: Create an exchange agreement Create quantity schedules for planning and monitoring material quantities Balance differences in value of exchanged materials using fees Settle claims and liabilities against one another (netting) Exchange unlike products, and balance the logical inventory that results (logical inventory adjustment) Create exchange statements that reflect the current status of your exchange activities in a specific period Create additional evaluations with respect to your exchange activities (for example, creating a list of all goods receipts and goods issues within an exchange agreement) . Key Features The following table explains the key features available: Key Feature Quantity Schedules Fee handling Sub/Base product relationships Logical Inventory Adjustment Purchase Assignment (Load Balancing) Netting In movement-based Use Quantity Schedule let you control and monitor the quantity that can be delivered/received by period in contracts and subsequent call off. . In an exchange agreement, fees (Handling, Location, Differential, Wharf age) are used to settle the difference in value between the materials that are exchanged. They are assigned to contracts and copied to subsequent documents. Depending on Exchange agreement settings they can be in ternally or externally posted. You exchange several sub products but to simplify Exchange balance ac counting, only a base product is tracked. A logical inventory adjustment can be posted to settle quantity imbalan ces of an exchange agreement without posting physical movements. This can also include an optional negotiated payment. Business scenario where you assign an existing contract or purchase or der to a delivery in order to fulfill a customer order. Netting you collect all the bills (billing documents) into one single Netting document and then settle up with the exchange partner, rather than billing each goods movement to the exchange partner separately. SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions PUBLIC 373 Key Feature Exchange Statement Exchange Reporting Exchange Agreement Split Invoicing Use The exchange statement is used to inform your partner of the current sta tus of the exchange agreement. Several reports can be used to monitor the exchange status (Customer balances, Vendor balances, Exchange balances , Evaluations of existing quantity schedules, Evaluations of material movements, Evaluations of ex change entitlements, Evaluations of exchange transactions and so on) An exchange agreement is made between two oil companies (exchange partners), when the companies would like to exchange product at different locations. The exchange agreement consists of the exchange header and the assigned sales contracts and purchase contracts. Split invoicing allows you to create several invoices with different terms of payment, instead of one invoice. For example, using the split invoice, you can invoice fees, taxes and the material value (of the product) separately. 4.5.3.2 Trader's and Scheduler's Workbench Business Background The Trader's and Scheduler's Workbench (TSW) solution provides functions for stock projection and for planning and scheduling bulk shipments using nominations. TSW provides the relevant master data to model the supply chain. The stock projection, planning, and nomination processes enable the scheduler to schedule bulk shipments while taking into account supply, demand, and available transportation. Key Features The following table explains the key features available: Key Feature Inventory Planning Workbench (IPW) Use The Inventory Planning Workbench enables schedulers to Load and supervise a range of terminals and products Monitor the inventory run down for past and future periods Set up a framework for real-time inventory alerts allowing sufficient time to plan a reaction Simulate possible future scenarios to understand the impacts of various decision opportunities 374 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions Key Feature Use Nomination Scheduling With nomination scheduling you can schedule and agree bulk movements with all stakeholders. For routine bulk movements, schedules and bulk movements can be copied. The schedules can be visualized on a map which allows a scheduler or a supply chain manager to monitor the status of all movements and be alerted on any changes. Ticketing Location balancing This feature allows you to record the official notices sent by Fax or E-mail by your business partners (for example, carriers) to inform you about the product movements. This feature allows you to compare demand and supply quantities for a specific period and location, and to maintain a balance between these quantities. Three-way pegging You can use Three-Way Pegging to plan and schedule bulk shipments based on supply and demand information. Integration with SAP Integrated Business Planning (IBP) SAP S/4HANA supports the integration with SAP Integrated Business Planning allowing the exchange of planning data to forecast demands and plan crude procurement. 4.5.4 Upstream Operations Management Business Background Upstream Operations Management enables companies, for example, oil and gas companies, to carry out their exploration and production operations in the most cost-efficient way to maximize profitability. SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions PUBLIC 375 Key Features The following table explains the key features available: Key Feature Field Data Capture Allocation Use You can maintain measurements for various nodes in a Production Net work for a specific time range. The measurements can vary from volumet ric flow rates to pressure and from compositional analysis to deferment events. These measurements are requisite to run allocation. You can do the following: Maintain volumetric meter and tank readings Maintain well and well completion test data and theoreticals Maintain component analysis Maintain zonal contribution factor Maintain well reading data (non-volumetric) Maintain deferment events for a network objects View data errors present in the selected Production Network and alloca tion period and subsequently fix the errors You can connect to your field data repository through SAP MII and publish measurement and well test to ERP You can allocate volumes of produced and injected materials (for example, crude oil, condensate, water, and natural gas) to their originating well comple tions. You can determine the sales, fuel, inventory or non-sales (for example, reinjected or fuel gas) dispositions measured between specific points in the network as the product flows downstream from the well completion towards the network's end point or custody transfer points. You can also determine the quantity that can be produced within a production network given the con straints of the network objects that make up that production network. You can also do the following: View the status of selected networks Run allocation for Ready to be Allocated networks View the results for networks that have already run allocation View the aggregated and node level allocation Results in tabular or graphi cal view Submit and approve allocation results View the allocation factors at node level 376 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions Key Feature Deferment Forecasting Ownership Reports Geographic Information System (GIS) Use You can analyze the difference between the system capability and the allo cated result. It explains the reasons for overproduction and underproduc tion. You can view and maintain deferment events. You can view aggregated and node level deferment results. It displays the system capability, allocation values and deferment values. You can reduce the unexplained deferment values within the tolerance limit by viewing the unexplained and explained deferment values separately and creating de ferment events to minimize the unexplained deferment result. You can view the results in tabular and chart views. You can analyze whether deferment events are linked to available work or ders. You can view existing events linked to work orders, link events where they are missing, or link multiple events to an existing work order. In Production forecasting you can do the following: Setup and maintain a new project into the production-forecasting module of Upstream Operations Management Assign and revoke access rights of users for master data like projects, constraints, and so on Capture various constraints (Potential, Capacity, Risk, Opportunity and Events) for network objects in a scenario Preprocess scenarios and calculate the production forecast (future predi cation of hydrocarbon production) and submit the forecast results for ap proval in the forecasting module View the production forecast results at a scenario or network or network object level Approve and publish forecast results Create custom hierarchy Upload data through a predefined template from a local machine or server to the UOM application Analyze forecast results and compare them with the actual results. You can perform a step-by-step analysis of production results by looking at various measures and dimensions from different perspectives You can use this function to define ownership information for oil and gas pro ducing assets and execute ownership allocation. You can view the master data of Network Object, for example, Production Network, Well, Well Completion and so on. Master data includes informa tion like medium and frequency. You can view measurement data based on Production network and Net work objects inputs. The geographical information system (GIS) provides operations personnel with an integrated decision-making environment. SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions PUBLIC 377 Key Feature UOM-PRA Integration Use This solution integrates Upstream Operations Management (UOM) and Pro duction Revenue Accounting (PRA). This solution lets you manage both hydro carbon production and revenue accounting business processes. This integra tion replaces the production processes of PRA with the UOM Production com ponent. You need to have both UOM and PRA solutions to use this integrated feature. The Ownership functionality of UOM is disabled when you use this sol ution. Following are the features of this solution: Unified Data Model - You can use this feature to provide the user interfa ces and data persistence that supports an allocation performed using a Universal Allocation Engine. All the data required for consumption by the Universal Allocation Engine is setup and maintained using the User Inter faces of UOM and persists in the Unified Data Model for UOM-PRA Inte gration. Likewise, the allocation results consumed by the follow-on Pro duction Regulatory Reporting and Revenue Accounting processing per sists in the Unified Data Model for UOM-PRA Integration. Technical Integration - You can use this feature to match the data models on both UOM and PRA sides, so that you can present the production data as required by PRA revenue processes. The data models on UOM and PRA are different and one to one mapping may not be possible. Integration of UOM with PRA is achieved using CDS View Redirection concept. The ad vantage of this concept is that no changes are required on the PRA followon process side. Migration Workplace - You can use this feature to ensure all desired pro duction data is moved from PRA to UOM for users to run volume alloca tions. This is only done for selected Delivery Networks in PRA, which the user wants to migrate. All master data and effective rules and transaction data will be migrated to UOM for the prescribed time frames. Universal Allocation Engine - You can use this feature to provide a com mon engine to perform volume allocations, one that can be applied for all types of networks and variations of periods of processing (daily, weekly, monthly, and so one). This Universal Allocation Engine (UAE) is able to provide consistent and verifiable allocation results from simple to complex common allocation scenarios. Testing Tools - You can use this feature to generate the necessary testing tools that will be used to ensure that migrated data from PRA to UOM has occurred correctly. The testing tools shall also be used to validate UOM data against PRA data. The Testing Tools facilitates the validation and test ing for accuracy between UOM and PRA data. UDM for UOM-PRA Integra tion Process Overview. 378 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions 4.6 Professional Services 4.6.1 Projects and Engagement Business Background Commercial Project Inception synchronizes the creation of sales documents (quotation, contract, or sales order) and projects between Sales and Distribution and Project System, and provides visibility and control of the customer engagement process. Features Key Feature Commercial project inception Use You can create projects with the creation of sales documents (quotation, con tract, or sales order). When you create a sales document, this feature enables you to also create a project using standard WBS elements. If you copy a sales document with items, using the Commercial Project Inception feature, you can decide whether to create a new project or use the project already assigned to the source item. 4.6.2 Resource Management Business Background A range of tools and reports are available to establish links between employees and business objects, and thereby adjust processes and workflows to suit the size of your company and the spectrum of your services. SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions PUBLIC 379 Features Key Feature Lean staffing Enhanced time recording Forecasting of employees to projects Use You can use tools to manage assignments of employees to both client-facing and inter nal engagements. You can: Easily identify the right professionals for your engagements Assign selected employees to engagements and apply rules Monitor employee assignments Simplify and validate time recordings for employees (CATS) Obtain reliable reports and forecasts about employee utilization Use integrated functions for service-specific billing and financials You can: View data for staff assignments from Lean Staffing Use data from Lean Staffing assignments to perform automatic input checks dur ing time recording in CATS Integrate up to 10 service attributes to enhance the data record structure in Lean Staffing Employees can plan their time, thereby documenting their availability in parallel. This improves the assessment of your employee commitments, raises visibility of employee utilization and increases the reliability of the business forecast. 4.6.3 Service Management Business Background Service attributes enable you to integrate attributes and information across the service delivery process, namely staff assignment, forecasting, time recording, controlling, billing, and debit memo request. 380 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions Features Key Feature Use Service attributes You can use additional parameters that allow flexible definition and capture of diverse requirements for service providers. These parameters are then available throughout the commercial service process, and can be used selectively in indi vidual process steps, especially to control processes in resource-related billing. Work periods in resource-related billing Besides the availability of service attributes, you can also use work periods to add enhanced capabilities for billing services. In resource-related billing, the sys tem consolidates work and cost assigned to a project (Project System) and con siders these values for invoice creation. Power lists You can use power lists to combine lean staffing with specific processes (such as staff assignments or the order to bill process) or to invoke actions based on the information you choose to display. You can use power lists for: Staffing assignments Sales documents Debit memo requests 4.7 Public Sector 4.7.1 Finance 4.7.1.1 Grants Management for Grantee 4.7.1.1.1 Sponsor Management Business Background Adapt a grantee's organizational structure to meet a sponsor's business requirements. Help users manage grant information, and provide status indicators of the grant process according to the administrative requirements of their sponsors. Coordinate funding throughout the grant lifecycle, restrict specific grant posting objects, and control transactions based on grant status. Users can maintain master data components for managing, controlling, and reporting based on the sponsor's administration requirements. SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions PUBLIC 381 Key Features The following table explains the key features available: Key Feature Define sponsor master data Document sponsor communication Document and enter all budgetary agreements with the sponsor for each grant agreement Release budgets Reports Use Define a grant sponsor by defining all of the default rules the sponsor expects for reporting and grant execution. Track all documentation regarding the sponsor and the spe cific grant including correspondence, documents, and so on. Document and enter all budgetary agreements with the sponsor for each grant agreement. Control the use of available funds by releasing budget in tranches throughout the fiscal year or lifetime of the grant based on sponsor defined rules. Report on all attributes of a specific or series of sponsors and grant agreements. Grants Management keeps all infor mation based on the sponsor perspective, that is, the spon sor's currency, time frames, fiscal years, and so on. 4.7.1.1.2 Budget Management The maintenance, management, and monitoring of grant budgets. Approved budgets can be transferred to other sponsored programs and cost categories, and changes can be monitored and tracked throughout the entire budget cycle. 382 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions Key Features The following table explains the key features available: Key Feature Use Enter grant budget data and update as re quired You can: Use budget entry documents to enter and update approved grant budg ets. Use budget entry documents to represent budgets in the sponsor's cur rency and fiscal year. Use the budget entry documents to act as an audit trail, allowing you to track changes to your budgets and enter descriptions or explanations for each change Set up workflows to ensure that each change to your budget must be ap proved. Release grant budgets Control the use of available funds of a grant by releasing your budget in tranches throughout the fiscal year or lifetime of the fund. Allow grant budget increases from reve nue Define the rules for when and how a budget increase based on grant revenue is permitted. Reporting Use reports to support the grant budget maintenance process including, but not limited to, reports that allow you to do the following: Get a budget overview Compare budget versions Get an overview of revenues increasing the budget 4.7.1.1.3 Grants Billing and Receivables Business Background Maintaining sponsor billing methods and ensuring proper accounting and timely reimbursement. Receiving funding is a major milestone for many institutions with many requirements. To meet these requirements, institutions must document and automate many processes, including billing and receivables. SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions PUBLIC 383 Key Features The following table explains the key features available: Key Feature Manual billing Resource Related Billing Milestone Billing Periodic Billing Reporting Use Manual request of payback to the grantee organization. Bill grant expenses based on consumption. Ability to bill based on different basis of accounting: accruals vs cash. Bill grant expenses following a specific grant or project mile stone plan. Bill grant expenses based on specific installments and peri odic or non-periodic dates. Report on billable amounts based on status (open, partially or completely billed) for one grant, group of grants, sponsor or group of sponsors. 4.7.1.1.4 Closeout Business Background Create customized closeout rules that meet sponsor guidelines and requirements. Customizable financial closeout rules can help grantees restrict or prevent additional postings, review and act on outstanding obligations, detail sponsor requirements for preparing financial and technical reports, maintain program and grant stages of completion, and detail the steps required for organizational reporting. The closeout process includes a final review of financial transactions and administrative tasks to ensure that proper action is taken to conclude the programs and projects according to a sponsor's requirements. This support helps ensure that the grantee properly concludes all programs and projects according to sponsor specifications. 384 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions Key Features The following table explains the key features available: Key Feature Use Run overhead or indirect cost calculation Based on sponsor defined rules and guidelines, charge the necessary grant overhead to the sponsor by increasing the grant expense and billing it for reim bursement. Transfer residual budgets Transfer residual budgets among sponsored programs or classes or return un used budgets to grant. Reporting Report on all grants that are either about to close or closed. 4.7.1.2 Public Sector Collection and Disbursement Business Background Public Sector Collection and Disbursement (PSCD) is used to manage taxes, charges, and state benefits from or for business partners, citizens, students, and taxpayers. The business partners (citizen, student or taxpayer), their accounts (citizen accounts, student accounts, or tax accounts) and contract objects (objects for taxes and state benefits), including the related business transactions, are managed in Contract Accounts Receivable and Payable. Key Features Key Feature Mass Data Processing Master Data Management Inbound Correspondence Use You can manage open item and payment processing in a mass processing run. You can manage master data to link business partners, contract accounts and contract objects in all possible combinations. You can use contract objects to control the obligation of a business partner to submit inbound correspondence. You can perform mass or single processing runs to select overdue inbound cor respondence and execute a correspondence dunning run. SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions PUBLIC 385 4.7.1.3 Public Sector Financials 4.7.1.3.1 Budget Maintenance Business Background The maintenance, management, and monitoring of public funds. You may transfer approved budgets to other projects and departments and monitor and track changes throughout the entire budget cycle. Key Features The following table explains the key features available: Key Feature Use Map your budget structure Use the budget structure to define which of your organizational units, sources of funding and other account assignments are used to represent and control your budget. You can use a budget address to control which of your account assignment elements become key elements of your budget process. Upload planning data Upload approved budgets to the system Enter budget data and update as required You can Use budget entry documents to enter and update approved budgets. Use the budget entry documents to act as an audit trail, allowing you to track changes to your budgets and enter descriptions or explanations for each change. Set up workflows to ensure that each change to your budget must be ap proved. Release budgets Control the use of available funds by releasing your budget in tranches throughout the fiscal year or lifetime of the fund. Allow budget increases from revenue Define the rules for when and how a budget increase based on revenue is per mitted. Define cover eligibility Define rules for the cover eligibility of your funds management budget to cover over-expenditure in one budget by allowing additional budget to be made avail able from another source. 386 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions Key Feature Key figures Status management Reporting Use You may define key figures by filtering specific attributes of your budget data. The resulting amounts can be used to Release your budget data Transfer budget between budget types Compare values in reporting You can: Subdivide the budget process into individual budgeting phases; each phase is represented by a status. Regulate the permitted budget processes and user authorizations for each budgeting phase. Use reports to support the budget maintenance process including, but not lim ited to, reports that allow you to do the following: Get a budget overview Compare budget versions Evaluate budget information using key figures Get an overview of revenues increasing the budget 4.7.1.3.2 Budget Execution Business Background The integration of operational processes and accounting processes with maintained budget. Enables real-time and parallel budget controls that can operate on multiple levels, helping to monitor and control funds while reducing procurement and operating costs. Key Features Key Feature Map your posting structure Use Use master data elements to map the budget structure and reporting needs according to your organizational units and functional viewpoints. Mapping a posting structure for your account assignments allows you to deter mine how your commitment and actual postings are represented in your budget structure. They can be mapped on a different level to your budget ad dresses and allow you flexible control of your budget data. SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions PUBLIC 387 Key Feature Use Budget availability checks You can: Monitor and compare budget values with commitment and actual budget values. Define single or multiple budget availability control checks to run simulta neously. Set a threshold for the available budget. Define what will happen should budget consumption reach or surpass this threshold. Earmarked funds Earmarked funds are documents that allow you to reserve part of the available budget for expected revenues or expenditures. Update operational processes that com mit budget All information relevant for the commit budget process is recorded, allowing you to refer back to the original business process or document, or even to a preceding step in the process that commits budget (if it exists). Update operational processes that con sume budget All accounting information relevant for calculating the budget consumption is recorded. This enables you to see, for example, the movement of goods, the status of invoices and payments, and allows you to check budget availability. Requests Requests support an approval process allowing a separation of duties between recording and posting a financial document. Cash ledger A separate cash ledge supports Cash-Basis Accounting (CBA), and is a com plete, balanced set of accounts that takes expenses and revenues into ac count, but only at the time that cash is paid or received. Budgetary ledger The budgetary ledger enables simultaneous posting of budget maintenance and execution documents. It supports the creation of financial statements for governmental reporting. Reporting Use reports to support the budget execution process including, but not limited to, reports that enable you to do the following: Get a budget execution overview Get an overview of budget availability Evaluate budget execution information using key figures List the operational transactions affecting budget execution Compare fiscal years Display commitment and actual line items Compare budget lines versus commitment and /or actual line items Display earmarked funds journal 388 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions 4.7.1.3.3 Budget Closing and Financial Reporting Business Background The planning, standardizing, scheduling, and monitoring of financial and budget close activities. Key Features Key Feature Use Manage open remaining commitments and budget committed at the end of the fiscal year You can: Close out open commitments in the old fiscal year. Transfer *remaining commitments to the new fiscal year (if legally permit ted). *Commitments with a full or partial amount that has not reached the final stage of execution, and which can be invoiced or paid, depending on the legal requirements. Transfer the committed budget along with the carried forward commit ments It is also possible to have an approval process associated with this trans fer. Manage residual budget at the end of the fiscal year You can: Calculate residual budget. Transfer residual budget to new fiscal year (if legally permitted). It is also possible to have an approval process associated with this trans fer. Reconcile budgetary accounting You can reconcile budgetary accounting data with financial and managerial ac counting Key figures You can use key figures for a number of processes including, but not limited to: Calculating the residual budget for the carryforward of budget data Reporting Use reports to support the closing process and provide financial reporting in cluding, but not limited to: Monitoring of the commitment carry forward Cash flow reporting Cash basis reporting SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions PUBLIC 389 4.7.1.4 Tax and Revenue Management 4.7.1.4.1 Taxpayer Identification and Returns Processing Business Background Tax Identification and Returns Processing enables government agencies to administrate the complex and lengthy tax and revenue management life cycle including the key processes such as registration, account maintenance, tax return filing and remittance processing, billing, correspondence and contact management, audit and compliance. Key Features Key Feature Use Revenue Type Definition You can define the revenue types that represent the agency tax type. You can configure tax return forms and business rules to validate and bill the tax return or tax object for each revenue type. Taxpayer Registration You can use guided procedures that facilitate the registration process, support ing a single view of the taxpayer while accommodating all revenue types, both form (self-assessed) and object-based taxes (such as vehicle or property taxes). Tax Return and Registration Capture You can use submission of various types of tax returns, such as amended and joint returns, through multiple channels such as paper, fax, batch upload, and the Internet. Automatic Form-Based Tax Return Proc essing You can use a rules engine to automatically validate the tax return data to sat isfy the filing obligation record. Manual Form-Based Tax Return Process Once the tax return has been automatically validated and exceptions have ing been raised you can resolve the exceptions within the tax officer work center. Once you have resolved the exceptions, the tax return is finalized and released for billing. Tax Object Processing You can use a rules engine to calculate the tax liability for tax objects (such as vehicles and property) based on the tax object attributes. Invoicing You can process the creation of invoices and the integration of billing docu ments in Public Sector Collections and Disbursement. 390 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions 4.7.1.5 Multichannel Foundation for Public Sector Business Background SAP Multichannel Foundation for Public Sector is a constituent-facing solution that enables public sector organizations to interact with their constituents using a set of standardized and reusable OData services. Key Features The following table explains the key features available: Key Feature Manage Online Accounts Manage Constituent Details Process Forms Access Billing Information Manage Payments Use You can access a constituent account, change the password, and reset a for gotten password. You can: View and update personal, address and contact information, and commu nication preferences. Display, add and delete business partner relationships. Display contract object and fact details. You can: Display filing obligations. Display, update and submit forms. Verify and auto-populate forms content using a business rule engine. Add, delete and display attachment. Submit forms without user registration. You can view the account summary, bills and details of a particular bill. You can: Manage bank account details. Manage credit card details. View and update the payment and refund account assignment. Make a one-time payment. View the payment history. Cancel a scheduled payment. Manage auto-payments. Create or cancel a payment on account. Execute credit card payments without user registration. SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions PUBLIC 391 Key Feature Display Communication External User Management Use You can: View alerts and correspondences. Display or search the business directory. You can: Create or change users and privileges. Receive user ID and password notifications. 4.8 Retail and Fashion 4.8.1 Retail and Fashion Foundation 4.8.1.1 Master Data Management Business Background Master data is used to support operational processes in all areas of merchandise management or the fashion business. Master data contains the most important information about sites and business partners, such as suppliers and customers, as well as about all articles. Master data management significantly reduces the time required to perform tasks because data is proposed automatically and is based on one single source of truth. Master data objects such as assortments or different kinds of product taxonomies facilitate the daily work of different retail or fashion specialists and help processes run smoothly. Key Features Product Data Management Key Feature Compact product overview Use Display product master data and context information. Navigate directly to related business objects. 392 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions Key Feature Article maintenance Article reference handling and article mass maintenance Article discontinuation Article list Use Use the article master to store data about all individual articles that a company purchases, sells, or produces. Maintain article information: Descriptive information such as article description or weight Identifying information such as Global Trade Information Numbers (GTIN) Available units of measurement such as piece, carton, or pallet Maintain control information that determines how articles are processed in: Logistics For example, in replenishment. Sales For example, selling prices and validity periods. Purchasing For example, supplier relationships and purchase conditions. Display information associated with articles such as stock levels or stock values. Classify and structure articles according to a product taxonomy in multi ple ways. Maintain specific information for different kinds of articles, such as fresh produce and clothing. Collectively maintain generic articles with many variants, for example, with different colors and sizes. Maintain structured articles that consist of a specific set of individual arti cles, such as sales sets and displays. Perform mass operations and use reference and default handling capabili ties for large volumes of data involved in article maintenance. Exclude articles from assortments as of a certain date, for example, if spe cific articles are no longer to be sold or can no longer be procured. Discontinue seasonal products, that is, discontinue large numbers of arti cles within a short period of time. Predefine a list of articles to be used across multiple processes as selec tion criteria. Product Taxonomy Management Key Feature Article hierarchy Use Group articles in a structure such as a consumer decision tree (CDT) that reflects how consumers typically arrive at purchase decisions. SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions PUBLIC 393 Key Feature Merchandise category hierarchy Reclassification Location Management Key Feature Compact site overview Site maintenance Site classification Season Management Key Feature Season management Use Group articles in merchandise categories according to common proper ties. Apply a hierarchical structure to merchandise categories to create a mer chandise category hierarchy. Move objects such as articles, merchandise categories, and merchandise category hierarchy levels in the merchandise category hierarchy structure if necessary. Use Display site master data and context information. Navigate directly to related business objects. Model an organizational unit that carries out logistical processes involving articles, such as inventory management, sales, and procurement. A site corresponds to the term location and can be either a store or a dis tribution center. Enhance site master data with business partner information that is needed for a site to assume the role of a customer or a supplier in proc esses such as receiving, billing, and distribution. Group sites to simplify the maintenance process. Use Use seasons for time-dependent structuring by bundling articles accord ing to their limited product life cycle. Seasonal attributes are especially but not limited to fashion articles, for example, snow shovels are seasonal. Examples of seasons are summer, winter, and fall; however, a season can also be defined at a more detailed level, by collection or theme. Control logistical processes, such as sales and purchasing, based on the parameters maintained for different seasons. 394 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions Value-Added-Services Management Key Feature Value-added-services management Use Manage value-added services that enhance the value, worth, functionality, or usefulness of ordered articles. Value-added services can be either articles or activities such as putting shirts on hangers, ironing, or labeling. Global Data Synchronization Key Feature Global data synchronization Use Procure, track, and update article master data from suppliers quickly and easily to optimize master data exchange. 4.8.1.2 Assortment Management Business Background Companies strive to offer products in the right place and at the right time in order to meet consumer needs and expectations. To achieve this goal and support their retail processes, companies use assortments to model the assignments of the product mix (articles) to stores or store clusters according to aspects such as regional considerations. Key Features Key Feature Assortment management Listing maintenance and analysis Use Create assortments by assigning articles and site(s) with the relevant val idity periods. List articles as a result of maintaining assortments. The article-site-validity period combination specifies when the respective articles should be carried in the respective stores. View current listing conditions for a product. Simulate the listing of a product and adapt the simulation result before ex ecuting the listing. Control logistical processes by using listings. Analyze listings for the purpose of basic evaluations. SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions PUBLIC 395 4.8.1.3 Merchandise Buying Business Background Retailers need to be able to source and buy merchandise and services using procurement processes and control mechanisms across the supply chain. Through effective buying processes, companies can procure goods faster and at lower cost from suppliers globally in order to: Contribute to the bottom line through informed negotiating, while achieving compliance and increasing automation. Reduce cost and react flexibly to dynamic market conditions. Support effective sourcing, contracts, operational buying, and management of large volumes of invoices. Adopt buying processes to specific merchandise and handle purchase orders efficiently and accurately. Increase procurement process efficiency and transparency through order consolidation. Key Features The following table describes how the key features available for merchandise buying can be used. Key Feature Purchase order processing Purchase order scheduling Use The specific use cases in retail processes are: Create purchase orders for single articles, generic articles together with variants, structured articles with sub-items, and full products with emp ties. Provide variant quantities easily and conveniently in a variant matrix or au tomated by means of an appropriate distribution curve. Review information about season assignment, value-added services, and related retail allocations and promotions. Automate purchase order scheduling at a highly granular level along the inbound supply chain by defining important intermediate steps such as Ex-factory dates and the arrival of merchandise at shipping destinations. Communicate the scheduled dates to and receive confirmations and cor rections from external partners. Monitor progress along the inbound supply chain and perform actions in response to changes that differ to planned schedules. 396 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions Key Feature Use Collective purchase order management Collect and consolidate multiple store orders into a single purchase order for external suppliers to: Eliminate inefficient manual procurement activities associated with large numbers of individual orders. Speed up supply chain processes from supplier to warehouse to retail location. Combine the requirements of recipients that may exist as warehouse or ders or sales orders to create a single order for a supplier (pull process). Use distribution data for a collective purchase order to control and moni tor the distribution of merchandise to recipients. 4.8.1.4 Vendor-Managed Inventory Business Background Close collaboration between business partners along the supply chain is of major importance with regard to streamlining logistical processes and ensuring that consumers are not faced with out-of-stock situations in stores. In a vendor-managed-inventory business model, the task of ensuring that merchandise is available in stores is handled by the suppliers or manufacturers. To enable business partners to fulfil this task to the best of their ability, retailers need to provide the necessary information, including sales and inventory data. Key Features The following table describes how the key features available that support replenishment collaboration can be used. Key Feature Vendor-managed inventory Use Make stock figures and sales data available to suppliers and manufacturers to support their activities with regard to material requirements planning and re plenishment planning. SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions PUBLIC 397 4.8.1.5 Replenishment Planning Business Background Companies often face the challenge of having to deliver optimum of amounts merchandise to a large number of stores on a regular basis. To achieve this, automated processes can be implemented to optimize and integrate merchandise flow across the supply chain, including processes that involve third parties. One of the methods is the pull principle: Demand originating from the recipients is bundled and procured. Replenishment is a pull process used to supply stores with merchandise on a demand-driven basis. Key Features Key Feature Use Replenishment integration with other SAP solutions Provide the master data and movement data required to run replenish ment processes. Use order proposals as the basis for creating purchase orders for external or internal suppliers. 4.8.1.6 Demand Forecasting Business Background Companies use planned demand data to support requirements planning methods in order to optimize stock levels across the supply chain and thereby better meet consumer needs and expectations. Key Features The following table describes how the key features available for demand forecasting and planning can be used. Key Feature Distribution curve Use Define common quantity distribution ratios for variants of a generic article across variant-creating characteristics. Use distribution curves in sales, purchasing, and demand management scenarios to distribute quantities automatically across different variants of a generic article if the quantity is provided at the level of the generic ar ticle. 398 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions Key Feature Demand management Use The specific use case in retail processes is to create and organize planned inde pendent requirements for multiple articles at the same time, for example, all variants of a generic article. 4.8.1.7 Inventory Management Business Background Companies need to manage inventory, that is, the quantities and the value information for articles carried at sites need to be managed across many locations and channels. Goods movements need to be reflected in inventory, such as an increase in inventory when a goods receipt is posted or a decrease in inventory when a goods issue for a sales transaction is posted. Physical inventory supports the processes of counting article quantities and posting the resulting adjustments. The transparency of inventory information is crucial to the success of any company with retail processes. A sales order represents an agreement between a retailer and a customer concerning the sale and delivery of goods. Sales order fulfillment comprises the follow-on processes in the supply chain that result in the handover of merchandise to a customer and is completed by the billing process. Key Features The following table describes how the key features available for omnichannel inventory and order management can be used. Key Feature Inventory management Goods receipt Use The specific use cases in retail processes are: Review stock for generic articles with variants. Review stock for empties. Review inventory values at retail price. The specific use cases in retail processes are: Enter quantities for variants of generic articles using a matrix. Consider tied empties, for example, bottles and crates, during goods re ceipt. Optionally explode structured articles such as prepacks at goods receipt into their individual components (often used during in-store goods re ceipt) SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions PUBLIC 399 Key Feature Supplier consignment Inventory valuation Merchandise distribution Order management Use The specific use cases in retail processes are: Define the consignment control for an article for each site, for example, distribution centers and stores, independently of each another. Automatically convert goods that are to be transferred from a site's con signment stock to a site's own stock. Transfer goods from a consignment stock to other sites and retain the consignment stock category. The specific use cases in retail processes are: Enable valuation at retail price in parallel in one currency. Decide whether changes in retail price affect margins. Automatically valuate all goods movements at retail based on the material ledger and post physical inventory differences at retail. Automate revaluation of inventory at retail if sales prices are recalculated for inventory management on an exact-article basis. Plan, control, and manage the flow of merchandise from suppliers to dis tribution centers and then on to stores or customers. Carry out cross-docking in the distribution center through support of push and pull processes to move the merchandise through the warehouse more quickly, thereby reducing the costs for processing and storage. Plan merchandise distribution based on: Retail allocation (push) Collective purchase orders (pull) At goods receipt, automatically or manually adjust the distribution data to correspond with the quantities actually delivered and then distribute the merchandise among the recipients. The specific use cases in retail processes are: Create and maintain sales orders for single articles, generic articles along with variants, structured articles with sub-items and full products with empties. Enhance the standard price calculation with a promotion pricing service to apply simple discounts and mix-and-match promotions to sales orders. Provide variant quantities easily and conveniently in a variant matrix or au tomated by means of an appropriate distribution curve. Review and change season assignments and/or value-added services. 4.8.2 Retail for Merchandise Management The empowered consumer has fundamentally changed retail. Companies need to establish a digital foundation to simplify their business with a detailed understanding of their customers' needs and the capabilities that allow them to serve customers individually and seamlessly. 400 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions Companies need to respond to the increasing need to engage customers at the right moment, consistently, and across multiple sales channels and technologies. A real-time retail platform helps companies transform their business and makes new business models possible, which can in turn increase revenue, profitability, and market share. SAP S/4HANA as a digital core helps companies to achieve these business goals. 4.8.2.1 Store Layout Management Business Background Companies strive to offer products in the right place and at the right time in order to meet consumer needs and expectations. Through well-designed store layouts, retailers aim to create a convenient and appealing shopping experience, which is further enhanced by the optimum presentation of the merchandise on shelves, racks, and other in-store display fixtures, taking into account the number of products on display. This can be executed using a third-party space management solution. Key Features Key Feature Layout maintenance Space management integration Use Structure the assortments of a store using a layout concept as the basis for space management integration. Integrate the capabilities of a third-party space management solution and use these capabilities to optimize shelf space by determining the best place for articles on the shelves and calculating how much space to allo cate to each article based on factors such as sales volume and margins. 4.8.2.2 Retail Price Management Business Background A key aspect of how retailers address the market is the price strategy. That is, sales prices are planned based on various factors such as purchasing prices and margin goals, taking into consideration what consumers are willing to pay for products in stores or through non-store channels. Once a price strategy has been defined, it needs to be implemented, for example, by making the relevant sales prices available to stores and all other sales channels. SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions PUBLIC 401 Key Features The following table describes how the key features available for retail price management can be used. Key Feature Retail price planning Bonus buy Use Define retail sales prices for articles at the level of sales channels or sites with a validity period based on strategies such as planned markups on procurement prices. Recalculate and maintain retail sales prices based on changes in influencing factors, such as purchase price adjustments or the need to comply with a new business strategy. Specify sales price deals for promotional offers such as buy two, get one free, spend at least a certain amount to get a percentage off or for special sales prices or discounts when a coupon is presented. 4.8.2.3 Promotion Management Business Background Retail promotions are marketing activities targeted at consumers and used by retailers over a limited timeframe to increase customer retention and boost sales volumes. Effective promotion planning and management allows companies with retail processes to adjust price schedules to match customer and market needs that vary with channel and location. Promotions are planned outside the digital core and are then transferred for the execution of logistical processes, for example, article quantities are handed over to procurement. Key Features The following table describes how the key features available for promotion planning and management can be used. Key Feature Compact promotion overview Use Display promotion data and context information. Navigate directly to related business objects. 402 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions Key Feature Promotion logistics Promotion integration Use Create a promotion or execute promotion planning requirements for par ticipating stores to support use cases such as: Consumer promotions designed to promote or boost sales through price deals for consumers and/or agreements with suppliers Stock reduction strategies, for example, reduce stock levels of sea sonal merchandise through attractive price deals Product launch, for example, through effective in-store presentation Specify execution data such as store notifications or details for procure ment. Activate follow-on processes based on the promotion data for each spe cific use case. Maintain and monitor planned and execution data of promotions. Integrate the capabilities of a promotion planning solution to be able to ex ecute promotions in logistical processes, such as handing over article quantities to procurement. 4.8.2.4 Store Merchandise and Inventory Business Background Solutions for store merchandise and inventory must let retail store associates and managers: Access product and inventory data from anywhere in stores and at any time. Improve productivity and accuracy. Enable customer service and inventory management. Solution capabilities for store merchandise and inventory must provide comprehensive, role-based functionality that is easy to learn and use. Retail store associates and managers have real-time access to product and inventory data for all locations in the area, from desktops, laptops, and mobile devices. Companies can increase workforce efficiency, improve store performance, and increase store sales, shopper loyalty, and customer and employee satisfaction. SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions PUBLIC 403 Key Features Store Merchandise and Inventory Key Feature Product lookup Stock adjustment Product ordering Product and stock transfer Handling of received products Stock inventory count Store walkthrough Label printing Use Access real-time product, promotions, stock information, and bonus buys. View style, color, or size variants of products. Check product availability in nearby stores. Adjust the stock of products for different reasons such as shrinkage or spoilage. Order products by reviewing order proposals. Order products ad-hoc when standing in front of the shelf. Transfer products from one store to another store or from a store to a dis tribution center. Pack products in separate boxes for a transfer. Post receiving for goods from internal and external suppliers. Support trusted goods receipt and/or detailed goods receipt. Perform cycle counting and zone-based physical inventory. View stock inventory counts for monitoring purposes and approve or ini tiate a recount. Resolve issues related to product quality and prevent lost sales. Perform daily product-related tasks such as making adjustments to stock inventory levels. Review and modify product order proposals. Print labels ad hoc, for example, if labels are missing or are damaged. 4.8.2.5 Store Connectivity Business Background Store connectivity includes the connection of point-of-sale (POS) or store merchandise management solutions to support the exchange of master data and transactional data. Typically, most information about articles, prices, and promotions is maintained at the corporate headquarters and needs to be distributed to the point of sale (POS) or to store merchandise management solutions in the relevant stores. The sales and other transactions, such as financial transactions or goods movements, that are performed using the local POS or store merchandise management solution need to be transferred back to the central system and processed. 404 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions Key Features Store Connectivity Key Feature Assortment list POS inbound data POS outbound data Use Transfer article-related information to POS and store merchandise man agement solutions, including article descriptions, units of measure, and sales prices. Use the information in assortment lists, for example, to support the plan ning of in-store visual inspections. Transfer and process transactions from POS and store merchandise man agement solutions, such as sales, returns, goods movements, and financial postings. Transfer information needed at POS and store merchandise management solutions in addition to article information, such as exchange rates, tax data, merchandise categories, and promotions. 4.8.2.6 Merchandise Allocation Execution Business Background Companies often face the challenge of having to deliver optimum of amounts merchandise to a large number of stores on a regular basis. To achieve this, automated processes can be implemented to optimize and integrate merchandise flow across the supply chain, including processes that involve third parties. One method is the push principle: An overall quantity of an article is distributed to the recipients according to rules, ratios, or strategies. Retail allocation is a push process whereby a retail company centrally allocates merchandise to a number of recipients, for example, stores or customers, in order for this merchandise to be distributed. Key Features Key Feature Compact allocation table overview Use Display allocation table data and context information. Navigate directly to related business objects. SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions PUBLIC 405 Key Feature Merchandise allocation execution Use Create a merchandise allocation to control which stores get which mer chandise in which amount and when (push process). Define how merchandise is distributed, for example, through a third-party process such as ordering products from suppliers or through stock reduc tion, that is, by using existing stock, which controls further process steps in the supply chain. Generate follow-on documents, for example, purchase orders and ware house orders. Move merchandise to stores. Base merchandise allocation optionally on promotions. Integrate the capabilities of third-party merchandise allocation planning solutions. 4.8.3 Fashion and Vertical Business Fashion and Vertical Business is an integrated solution to bring together the processes of design, develop, buy and sell, both to wholesale customers and through their own retail channels. 4.8.3.1 Demand and Supply Segmentation Business Background Companies might need to separate demand from stock transport/sales orders (requirement segment) as well as the inventory within their distribution centers (stock segment) based on certain attributes and want to define which demand could be covered by which supply. 406 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions Key Features Key Feature Demand and Supply Segmentation Use Working based on batch management within distribution centers Categorization of product-related demand and supply based on certain characteristics, for example, quality or country/region of origin Demand documents (sales or stock transport orders) as well as supply el ements (purchase orders and stock) carry the necessary segmentation in formation Segmentation strategies that are considered in Advanced ATP (aATP) and Supply Assignment define which demand segments can be covered by which supply segment (strategies 1:1 and N:1 [demand:supply] are sup ported) 4.8.3.2 Supply Assignment Business Background Companies need to manage inventory across many channels; they often deal with constraint stock situations where the demand is higher than the supply, especially for seasonal products. Therefore, within a distribution center specific mechanisms are needed to assign supply in an appropriate manner. Key Features Key Feature Supply Assignment Use Working for distribution centers in conjunction with backorder processing (BOP) of Advanced ATP (aATP) Mapping demand (sales or stock transport orders) and supply (stock and purchase orders) through automated supply assignment rules Creating a fixed assignment between the demand (sales or stock trans port orders) and supply elements (stock and purchase orders) Release process to ensure that only meaningful quantities are delivered, by applying release rules on various levels SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions PUBLIC 407 4.8.3.3 Sales Order Management and Processing Business Background Order management allows companies to execute, process, and monitor sales orders. Key Features Key Feature Order Scheduling Multi Ship-to Order Pack Separately Ship Together Use Align the delivery dates across items within sales and stock transport or ders Define and apply configurable business rules to influence the scheduling logic Support stock transport orders Create a single multi ship-to order (MSO) for any number of ship-to cus tomers belonging to the same sold-to customer Use MSO templates to copy the existing ship-to customer's data for new items instead of re-entering all the ship-to data Handle stock shortage situations by applying distribution rules to only dis tribute the available stock (confirmed quantity) across the relevant ship-to customers Generate specific sales orders for each ship-to customer automatically, based on the multi ship-to order Group order items (sales orders and stock transport orders) that should be shipped together based on customer business rules Define grouping rules to reflect the customer grouping requirements Visualize order items belonging to the same Pack Separately Ship To gether (PSST) group Consider PSST groups within supply assignment for release checks Consider PSST groups for outbound delivery 408 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions 4.8.3.4 Manufacturing Business Background In the Fashion industry, manufacturing processes need to consider the large variance of one article, for example, in size and color. Fashion manufacturing is supporting these processes to make them more efficient. Key Features Key Feature Master Orders Use Planned orders and production orders are created on the variant level of a ge neric article. To make planning and monitoring of the production more efficient, you can logically group one or more individual orders into one master or der (master planned order or master production order). This allows: Collective processing of all the grouped orders, for example, for ATP checks, order release, confirmation. Fixed batch reservations for components of production order at master order level. Linking of planned orders or production orders to one another over several production levels using master orders. Analysis of critical components and calculation of the quantity to be pro duced from the limited available components. 4.9 Utilities 4.9.1 Finance 4.9.1.1 Bill to Cash 4.9.1.1.1 Billing of Energy and Services Billing of Energy Products Billing of energy products is performed for all types of customer groups including commercial, industrial, and residential customers. It takes place periodically for a defined period (such as monthly, yearly) or is triggered by certain events such as a move-out. Defining products is used as the basis for billing. The amount to be paid is calculated by applying rates or products to the measurement data. The measurement data can either be discrete meter reading values or equidistant time series values. It is also possible to bill on SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions PUBLIC 409 the basis of flat rates. The end customer's bill can include not only utilities billing documents but also documents from other sources. By creating a budget billing plan, the utilities payments are evenly spread across the supply period. The following key features support the process: Key Feature Definition of rates and products Schedule billing and budget billing plan Billing and simulation Budget billing plan Use Billing is performed on the basis of rates/products. This in cludes billing rules and various other aspects, such as prices and discounts. In deregulated markets, rates/products can be managed for energy supply or grid usage according to the market role of the utilities company. To control when billing or budget billing is executed, certain parameters and dates such as the end of the billing period, budget billing dates, period length and so on are defined in a schedule. To calculate the amount to be paid, measurement data is processed and priced according to the assigned billing rules. The billing simulation can be executed to obtain billing re sults without making accounting-relevant changes. To avoid overcharged bills, bills can be outsorted according to special validations that can be customized. They are then automati cally locked for further processes until they are released. Bill ing reversal can initiated to deal with incorrect bills. A utility company bills for its services at the end of a supply period. Throughout the current period, it therefore charges budget billing amounts to spread the payments evenly. The dates and the amounts for the budget billing amounts are defined in the budget billing plan. The budget billing plan forms the basis for the increase in the budget billing amount. 4.9.1.2 Commerce Management 4.9.1.2.1 Receivables Management and Payment Handling In deregulated markets, the distributor is usually paid for providing grid-related services, such as grid usage, to other market participants. A very common market model of handling grid usage invoices and payments between the supplier and distributor is described as follows: The distributor sends grid usage invoices to the supplier. The supplier checks the invoices and makes payments to the distributor. The consumer, as the consumer of energy, pays for grid usage as part of their energy product provided by the supplier. 410 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions Invoice Verification and Payment (Supplier View) Key Feature Use Receive and process grid usage bills Create complaints Send payment or non-payment advice notes Monitor communication Grid usage bills can be received using market communica tion, checked and verified and posted to accounting. The data that is exchanged relates to end customers (points of delivery) to whom the supplier provides services or an en ergy product. Complaints can be created for bills for which the supplier has a grievance. Payment and non-payment advice notes can be sent to the market partner according to the verification results. Data exchange to involved market partners is logged and can be monitored. Invoice Receivables Mgmt and Paymt Handling (Distributor View) Key Feature Use Prepare and send grid usage bills to suppliers Electronic bills can be created at end customer level. Grid usage bills are aggregated for each supplier and sent to the suppliers electronically. Receive and process incoming payments and payment ad vice notes Complaint notifications and payment advice notes are re ceived electronically and can be processed. Incoming pay ments that have been posted to the supplier's account can be assigned to the corresponding payment advice notes. Re ceivables can be cleared at end customer level. Complaint notifications can be processed to validate the complaint. Dunning activities can be triggered if required. Postprocessing Grid Usage Payments Payments can be postprocessed at account level. Payments of a supplier that cannot be allocated at end customer level can be reimbursed. Monitor communication Data exchange to involved market partners is logged and can be monitored. SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions PUBLIC 411 4.9.2 Metering 4.9.2.1 Meter Logistics and Operations Service 4.9.2.1.1 Measurement Data Management Measurement Data Processing Measurement data comprises all types of measurement data collected by meters. It can be equidistant time series values or discrete values. It can have the character of meter readings (cumulative index values), consumption, demand data, and so on. Data provided by meters can either be read remotely by smart meters or manually for conventional meters. Measurement data is validated when it is received. If validation is successful, it is available for subsequent processes such as energy billing or energy settlement. In deregulated markets, measurement data is communicated between various market participants. Key Feature Manage measurement data Schedule the collection of discrete meter readings Receive and process measurement data Provide measurement data to market partners Use The master data can be configured so that measurement data in the form of discrete data or equidistant time series values can be managed. In the case of periodic collection of discrete meter readings, periodic meter reading orders are created and issued ac cording to this schedule. This feature is used to upload or enter measurement data. This data is provided from different sources, such as exter nal systems, market partners or read manually. The meas urement data is validated and if necessary replacement pro cedures are applied. Manual adjustments are possible. Addi tional calculations can be executed to convert meter read ings to consumption values, sums of quantities and so on. Measurement data can be sent to other market participants. You can define what types of information is received by cer tain recipients. Monitoring and error handling capabilities are available for the communication process. Energy Schedule and Settlement in Deregulated Utilities Markets In deregulated markets, a common requirement consists of determining energy consumption at specific aggregated levels or entities and communicating this information to involved market partners. 412 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions Energy Schedule: The supplier is responsible for determining an energy schedule for their customers for the following day. The energy schedule (usually based on consumption forecasts) can be the total calculated load shape for the customers in a specific grid, i.e. a time series of aggregated consumption values for the next (schedule) day. This energy schedule has to be sent to the involved market participants, such as the responsible distributor and settlement coordinator. Energy Settlement: The distributor determines the total load shape for each supplier based on the measured energy consumption of the suppliers' customers and communicates it to suppliers and involved market participants. Key Feature Settlement-related entities Aggregation of time series values Synthetic load profiling Provision of settlement results to market participants Monitor communication Use The following entities that can be used to group points of de livery are provided: Settlement Unit and Utilities Grid. The assignment of a point of delivery to these entities is tracked on a time-related basis. Aggregation of consumption of all points of delivery with as signment to a settlement unit or grid can be calculated and processed in the form of equidistant profile values. The same logic can be applied to aggregate energy feedings into the grid. Synthetic load profiling is based on synthetic profiles for a specific customer group and customer-specific usage fac tors. Synthetic load profiling provides the capability to de-ag gregate a load shape. The resulting equidistant time series values can be processed to calculate aggregated consump tion. Involved market participants are automatically determined. Settlement results can be sent to them. Data exchange to in volved market partners is logged an can be monitored. Data exchange to involved market partners is logged and can be monitored. 4.9.2.1.2 Meter Logistics and Operation Services Meter and Device Management Device Management covers procurement, warehousing and stock movement of devices by using the integration in logistic process as well as installation, replacement and removal of meters and other devices at the customer location. These meters can be smart or conventional meters. The remote functional capabilities of smart meters have to be managed so that they can be leveraged in all relevant processes. To ensure a correct measurement of values, inspection and certification is applied to all relevant devices. SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions PUBLIC 413 Key Feature Manage device data Installation of devices Inspection of devices Use Devices are configured by assigning device-specific master data. This includes registers, the device category and other data such as commands. Devices can be installed, replaced and removed. If device at tributes are changed, the device can be modified. It is possi ble to maintain allocations and relationships between devi ces. The devices can be inspected in different ways according to legal and internal requirements. Periodic replacement can be used to manage all devices that have to be replaced in a cer tain year. Individual devices are inspected in the sample lot procedure. These devices are representative of a group of devices. You can certify individual devices during certification. Disconnection and Reconnection Management Disconnection and reconnection processes are managed by the utilities company. Disconnection is the interruption of a utilities service. Possible reasons for such an interruption can be outstanding payments or at the request of the utilities company or a customer. Smart meters can be disconnected / reconnected either remotely or manually according to the device capabilities. Additional conditions or constraints are also considered with conventional meters, which are disconnected / reconnected manually. Key Feature Processing disconnection Processing reconnection Use This feature covers the processing of disconnections re quested by customers as well as automatically triggered dis connections. In the latter case, an automatic request for dis connection is launched according to the customer's status, for example, as defined in the dunning process. This feature covers the processing of reconnections re quested by customers as well as automatically triggered re connections. In the latter case, an automatic request for re connection is launched according to the customer's status, for example, in the incoming payment process. This implies that reconnection is triggered based on an incoming pay ment or a customer request. 414 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions 4.9.3 Sales 4.9.3.1 Sales and Customer Service for Residential Customers/Commercial and Industrial Customers 4.9.3.1.1 Customer Service Management PoD Master Data and Registration Management (Distributor View) In deregulated markets, the distributor usually manages the master data and service registrations for all points of delivery (PoD) in their grid area. They maintain master data and communicate changes in master data to all other involved market participants. They manage registration processes, such as start and end of supply, change of supplier, and so on. Key Feature Management of PoD-related master data Managing Grid Usage Registrations and Terminations Monitor communication and registration processes Use PoD master data can be created or changed. Changes can either be applied manually or initiated by requests received electronically or notification messages. Creation and changes to the PoD address, settlement-related information (usage factor, synthetic profiles) are communicated to the market participants involved electronically. Requests for registration and termination of supply services at PoD level can be received and processed automatically to minimize manual interactions. Acknowledgement and notification messages can be sent electronically to the involved market participants. PoD master data can be changed ac cordingly. The progress of registration processes and data exchange to involved market partners is logged and can be monitored. Registration for Grid Usage (Supplier View) In deregulated markets, the supplier has a supply contract with the end customer. When the supplier concludes a new contract with an end customer at a PoD, the supplier has to be registered to deliver energy to this PoD. A request for start of supply registration is sent to the distributor. Upon ending a supply contract, the registration for grid usage has to be terminated. A request for end of supply is sent to the distributor. SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions PUBLIC 415 Key Feature Registering for grid usage Terminating grid usage Monitor communication for registration and termination processes Use A request to register grid usage for a PoD can be created and sent to the market participants electronically using market communication. A request to terminate grid usage for a PoD can be created and sent to the market participants electronically using mar ket communication. Progress of registration and termination processes and data exchange to involved market partners is logged and can be monitored. 4.9.3.1.2 Multichannel Foundation for Utilities and Public Sector For Utilities Multichannel Foundation for Utilities and Public Sector is a customer-facing solution based on Gateway. It provides utility companies a powerful and cost-effective way to extend their customer interactions to digital channels such as Web, Mobile, and Social. SAP Multichannel Foundation for Utilities offers a set of standardized and reusable OData services that are used by the customer-facing applications to access data and processes from SAP for Utilities. The standard services consist of self-service scenarios that enable customers to securely access and manage key account information and perform important activities online, like bill payment, entering meter readings, creating inquiries and sending requests to a utility company. A responsive Web application template for customer self-services is also included with the solution. Key Feature Managing Online Accounts Use This feature enables the customer to manage their online accounts in the following ways: Create a new online account (as an existing customer of the utility company) As a new customer, create a new business partner with a new associated online account Log in to an online account Log out of an online account Change password of the online account Reset password Switch between multiple business partners linked to an online account 416 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions Key Feature Managing Customer Details Managing Utility Contracts Managing Meter Reading Data Viewing Bills and Consumption Use This feature enables the customer to manage their personal and contact information in the following ways: View and update personal information View and update address information View and update contact information such as phone and e-mail View and update preferred method of communication View and update preferred communication language View and update billing address for the business agree ment(s) This feature enables the customer to manage their utility contracts in the following ways: Create a utility contract (move in) End a contract (move out) View and update details of a contract This feature enables the customer to manage meter reading data in the following ways: View meter reading history View upcoming meter reading dates Enter a meter reading Submit a meter reading without having the need to log on with a username and password This feature enables the customer to view their billing and consumption information in the following ways:: View account summary View consumption history View bills View details of a specific bill Download the bill as a PDF file Inquire about a specific bill Additional features for smart meter users (based on SAP EDM) include: View current consumption View forecasted consumption Download consumption data SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions PUBLIC 417 Key Feature Managing Budget Billing Plans Managing Payments Communicating with the Utility Company Managing Outages 418 PUBLIC Use This feature allows a customer to manage their budget bill ing plans for their contracts in the following ways: View budget billing plans Modify current budget billing plan amount to the value within the allowed range and specify the starting date for the changed plan Opt in to a payment plan and specify the starting month for the payment plan Opt-out of a payment plan This product feature enables a customer to manage pay ments through their online accounts in the following ways: Manage bank account details Manage credit card details View and update payment and refund account assign ment Make a one-time payment Make a one-time payment without having the need to log on with a username and password View payment history Cancel a scheduled payment before it is processed This feature enables the customer to manage their commu nication with the utility company in the following ways: Send a message to the utility company Attach a file when sending a message Trigger a customer follow-up workflow, automatically View past interactions with the utility company Request a change of data through an approval process View alerts Create service requests using service notification View the service notification history View a service order linked to a service notification View and download the electronic version of the letters sent by the utility company such as welcome letters and dunning letters This feature allows a customer to manage their energy out ages in the following ways: Report an outage for their property View outage map published by the utility company SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions Key Feature Agent Co-browsing Use This product feature enables a customer service agent to cobrowse the self-service Website with a customer should they face difficulty in navigating through the Website, or finding a page, menu or button to carry out a task. The agent sees the same information on the Website as the customer and is able to guide them. This feature allows the agent to do the following: Search for a customer using first name, last name, con tract account ID, business partner ID, address, phone and E-mail Co-browse the entire self-service Website with the cus tomer Perform some actions such as entering a meter reading and updating the address on behalf of the customer 4.10 SAP Waste & Recycling 4.10.1 Waste Disposal Management 4.10.1.1 Logistics and Operational Service 4.10.1.1.1 Management of Service Object SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions PUBLIC 419 4.10.1.1.1.1 Container Management Business Background The container is a kind of equipment which represents a physical service object of the storage and transportation of waste and provides toghether with criteria like the waste itself and the frequency of the service the basis for the billing of the individual services. All containers with the same characteristics are based on a container category. The container is assigned to the related service location and contains waste specific data. In order to ensure the proper handling of the containers the related container category can be assigned to the permitted vehicle types and material groups. The container management includes procurement by using the integration of logistic processes as well as placement, replacement and removal on customer location which represents the service location. The following features support the process: Key Features Key Feature Manage container data Installation of containers Inspection of containers Container groups Customer allocation Service frequency 420 PUBLIC Use Containers are configured by assignment of container specific master data. This includes container category and other data such as waste management data. Containers can be placed, replaced or removed from a service location. In case of changed attributes the container can be modified. The containers can be inspected in different ways according to legal and inter nal requirements. Periodic replacements can be used to manage all devices that have to be replaced in a certain year. Container groups can be used if only the amount of containers on a certain service location is relevant. The related services such as placement and re moval are only addressed to the container group and not to a specific one. The customer allocation to a certain container is enabled by assignment of the related contract information. Based on this the executed service on container level can be invoiced according to the contract agreement. This feature is used in order to determine the interval in which the service for a container is executed such as container emptying service. The service fre quency is only valid for a certain time slice. It's common to assign a reoccurring service to a container in the area of municipal waste collection. For commercial customers it's more common to assign a one-off service. A service is always assigned to a service area. SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions 4.10.1.1.1.2 Cleaning Object Management Business Background A cleaning object represents an object in your system on which a cleaning or winter service can be take place. This can be a street, park or container for instance. Each cleaning object references to the regional structure and contains information such as address data, cleaning method and measurement parameters which are relevant for billing. More than one cleaning object can be allocated to a property. The following features support the process: Key Features Key Feature Manage cleaning object data Customer allocation Service frequency Use This feature is used to create and maintain cleaning objects in the system and allocation of various data such as cleaning object category, address informa tion, measurement points, cleaning method and so on. Beside this the allocation of a property to a cleaning object is required because the cleaning object cannot be directly billed. The customer allocation is enabled by assignment of the related contract infor mation. Based on this the executed cleaning service can be invoiced according to the contract agreement. This feature is used in order to determine the interval in which the service for a cleaning object is executed such as street cleaning service. The service fre quency is only valid for a certain time slice. It's common to assign a reoccurring service to a container in the area of municipal waste collection. For commercial customers it's more common to assign a one-off service. A service is always assigned to a service area. 4.10.1.1.2 Route Management Business Background By the route management a regional grouping of containers and cleaning objects of one or more service areas can be undertaken. Different route types can be maintained such as dynamic or static routes. Static routes are common in the service areas of domestic waste or standard waste collection. Dynamic routes are more common in the area of container service and bulk waste service. The maintenance of route data is a business process usually executed by the planners where the allocation of service objects can take place. SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions PUBLIC 421 The following features support the process: Key Features Key Feature Route key attributes Service frequency Target value assignment Resource assignment Waste disposal calendar Capacity planning Use This feature supports the assignment of up to 3 service areas and confirmation categories to the route. This helps to distinguish the routes according the serv ice which are covered by the route and required confirmation values. In case of a required deeper differentiation the routes can be also defined for certain waste fraction and region. This feature is used in order to determine the interval in which the service for a container or cleaning object is executed by this route. The service frequency is only valid for a certain time slice. This feature is used to assign various planned target values to the route such as distance, duration, no. containers or weight. This feature supports the assignment of resources such as vehicle and work center. Beside this also a shift and a timeframe can be assigned in order to de fine the period in which the route is serviced. This feature enables the central control how service dates, falling on non-work ing days, are processed. This feature is used in order to define for a certain day and route the capacity particular for the bulky waste collection area. The capacity is measured in vol ume and weight. Additionally the daily capacity can be assigned to a certain el ement of the political regional structure. 4.10.1.1.3 Order Entry Business Background The order entry contains the waste disposal order and waste disposal order item creation for all kind of waste disposal and cleaning services. The waste disposal order contains all relevant data such as allocated resources and route information which are required for the service execution. The waste disposal order items are generated based on the services in the service objects. They are allocated to the waste disposal order and can contain customer and service object specific data including the provided service and related contract agreement. The following features support the process: 422 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions Key Features Key Feature Disposal orders Cleaning orders Transport orders Bulky waste orders Use This feature supports the creation of disposal orders for the service execution on a certain container. Each order is referenced to a certain service area (e.g. domestic waste collection) and service type (e.g. container emptying). This feature supports the creation of cleaning orders for the execution of clean ing or winter services on a certain cleaning object. Each order is referenced to a certain service area (e.g. winter service) and service type (e.g. scattering salt). This feature is used to create waste disposal order items for container place ment, replacement and removal for a service location. This feature supports the creation of bulky waste disposal order items. The re lated orders are assigned to a certain route and daily capacity. Based on the entered customer the most recent bulky waste collections for this customer are displayed. This can affect invoicing (e.g. 2 collections per year free of charge). 4.10.1.1.4 Order Scheduling and Execution Business Background The order scheduling is a daily operation in order to plan the order execution based on route and resource assignment. A planned order is the prerequisite for order execution. The following features support the process: Key Features Key Feature Shift Planning Route Allocation Use This feature supports the assignment of vehicles and work centers (driver, codriver) to the waste disposal order which are responsible for order execution. Additionally information for the driver can be maintained as order text. This feature supports the route allocation to a waste disposal order if a route was not specified at waste disposal order creation. SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions PUBLIC 423 Key Feature Order Output Subcontracting Use This feature supports the selection of waste disposal orders based on various criteria and provide them as paper output or electronically as file. In both cases it has to be defined which fields of the waste disposal order are required. Ac cording to the business area different forms can be defined such as a route list or single orders. This feature supports to setup of system behavior in case of dispatching an or der to a subcontracted vehicles or subcontracted waste disposal facilities. 4.10.1.1.5 Logistics Completion Business Background The logistical completion of waste disposal orders and waste disposal order items represents the final completion of the executed orders. All relevant data is collected which is required for the service invoicing to the customer and calculation of the internal costs per order. The following features support the process: Key Features Key Feature Weighing data record Waste disposal order item completion Use This feature is used in order to create a weighing record in completion on waste disposal order or item level. Here the weighing and all relevant logistic data can be entered. This feature is commonly used in case of waste deliveries to exter nal instead of internal waste disposal facilities in order to gather all informa tion. This feature is used in order to complete the specific order item to a service object. Therefore all relevant data out of the logistical execution are captured within the order item and stored for the further processes such as billing. In case of completion of transport orders the related container movement will be executed such as the container allocation to a service location or removal from a service location. 424 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions Key Feature Use Waste disposal order completion This feature is used in order to complete the waste disposal order which con tains all relevant resource data such as vehicle, staff, duration and distance. At order completion all relevant data out of the logistical execution is captured and stored on waste disposal order level. This data is required in order to calcu late the internal costs of the used resources. Subcontracting This feature supports the setup and handling of subcontracted processes for transport and deliveries to external waste disposal facilities. Depending on the process type such as purchasing of transport services or selling valuable mate rials the required documents will be created after confirmation of weighing notes, waste disposal orders and waste disposal order items. Integration of confirmation with sales and distribution This feature supports the creation of debit memo requests at completion of waste disposal order items which is the basis for billing. Prerequisite is the con tract assignment to the related service object such as container in advance of the waste disposal order item creation. These billing relevant confirmation val ues are stored in the related confirmation fields. Integration of confirmation with inventory management This feature supports the goods receipt creation out of the logistic completion in the background. Therefore it is required to create a weighing ticket out of completion and fill all relevant data such as waste material, receiving plant and storage location by entering the waste disposal facility and the related quanti ties. Integration of confirmation with control ling This feature supports the CO postings after waste disposal order completion. Based on the confirmation values the CO-data is prepared and posted. There fore 2 options are available: the cost calculation on waste disposal order level based on route data and on waste disposal order item level. 4.10.2 Finance 4.10.3 Bill to Cash SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions PUBLIC 425 4.10.3.1 Billing of Waste Disposal Services Business Background The billing of waste disposal services is performed for all types of customer groups such as commercial, industrial and municipal customers. For municipal customers the billing takes place periodically for a defined period (such as monthly or yearly) or is triggered by a certain event such as move-out. The base for pricing is mostly the municipal statutes. For commercial and industrial customers the billing takes place after fulfillment of an ordered service. The base for pricing is the related customer contract agreement and the defined service product which holds all ordered services and conditions. The following features support the process: Key Features Key Feature Integration of SD contracts Integration of IS-U contracts Use This feature supports the integrated billing of commercial services at logistical completion. The contract holds all required information in order to invoice the agreed services. The contract itself has to be assigned to the service object. This feature supports the integrated billing of municipal services based on a Utilities contract. The contract starts with the move- in of a customer at a cer tain premise and ends with the move-out date. The related services are in voiced based on the municipal statutes. 4.10.4 Waste Disposal Facility Management 4.10.4.1 Waste Disposal Facilities Business Background The waste disposal facilities are one of the important elements in the logistic process of waste management companies regardless whether it is the own or external waste disposal installation. There takes place all kinds of inbound and outbound deliveries including the typical waste treatment procedures. In order to map the waste disposal facilities all required information can be merged such as technical, personal and business 426 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions information. This includes the assigning of functional locations, allocating creditors/customers, allocating waste management partners and so on. The following features support the process: Key Features Key Feature Waste disposal facility types Waste disposal facility data Processes within a facility Operations log Use This feature is used to distinguish the waste disposal facilities according to the different types. This feature is used to map relevant data for a certain waste disposal facility in the system such as waste disposal facility operator, address information, staff, sales and stock information. Depending on the usage within the logistical proc ess also creditor/debtor information can be assigned. This is the base for cre ating all relevant documents for sales or purchasing activities to the related fa cility. Additionally it can be distinguished between internal and external facili ties. External facilities are often used in case of not sufficient own storage ca pacity or if certain wastes are not permitted to deliver to the own facility. In this case the delivery and treatment will be purchased at external facilities. This feature is used in order to map the treatment processes in the system such as sorting and splitting and is connected to stock postings. The stock quantities and values are updated in the process. This feature is used to automatically log all procedures within a waste disposal facility such us inbound and outbound weighing's, facility internal processes or malfunction reports. By selecting a certain waste disposal facility all related processes according to a certain date or date range are displayed and provide a transparent overview. 4.10.4.2 Weighbridge Operations Business Background The inbound and outbound deliveries at a waste disposal facility are mostly registered via a weighbridge where all relevant data will be entered such as customer, vehicle, material and quantities. The related weights are captured by a weighbridge and transmitted into the system. After checking all data and the delivery permissions are fulfilled the weighing transaction will be closed and the related stock updates and billing processes will be triggered depending on the weighing type. The following features support the process: SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions PUBLIC 427 Key Features Key Feature Use Internal delivery This feature is used in order to register material deliveries based on waste dis posal orders or order items. All relevant data will be captured and the weight will be fetched from the weigh bridge. If the weighing transaction is posted the weights will be transferred into the logistical order and the stock will be updated. Internal transport This feature is used in order to register material outputs based on waste dis posal orders or order items. All relevant data will be captured and the weight will be fetched from the weigh bridge. If the weighing transaction is posted the weights will be transferred into the logistical order and the stock will be updated. This feature supports business processes such as the internal order-related relocation of waste or deliveries to external parties (e.g. recycling or disposal companies companies) or the selling of valuable materials out of the treatment process. External delivery This feature is used in order to register contract or non-contract related mate rial deliveries. All relevant data such as customer, license plate and/or contract information are registered. The weights will be captured and after posting the weighing transaction the stock will be updated and the invoice process triggered. The base for pricing is the contract or the price book. External transport This feature is used in order to register contract or non-contract related mate rial outputs. All relevant data such as customer, license plate and/or contract information are registered. The weights will be captured and after posting the weighing transaction the stock will be updated and the invoice process triggered. The base for pricing is the contract or the price book. Checking the scale load This feature is used in order to define the calibration limits the minimum or maximum scale loads per weighbridge type and assign the relevant weighing information. When exceeding/falling below the calibration limits in the weigh bridge operator gets information. Checking the vehicle load (own vehicles) This feature supports at checking the maximum load of a vehicle in order to avoid that the vehicle exceeds the load limit at leaving the waste disposal fa cility. During the weighing process it will be checked if the gross weight is within or without the maximum load of the vehicle. 428 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions Key Feature Yard list Cash journal integration CPD customer integration Weighbridge interface Use This feature is used in order to get fast access to vehicles which are still within the waste disposal facility and the related weighing transaction. An entry in the yard list will be generated based on the first weighing on the related weighing transaction. This feature is used in order to register incoming or outgoing payments regard ing to a weighing transaction directly in the cash journal. This feature supports the deliveries by a one-time customer. A CPD customer can be assigned to the weighing transaction. Based on this the customer ad dress can be assigned in order to provide the invoice with the correct data. This feature is used in order to connect external weighbridge devices with the system. The technical parameters. SAP S/4HANA 1709 SAP S/4HANA Industry-Specific LoB Functions PUBLIC 429 5 SAP S/4HANA Compatibility Packs Please note that the specific usage rights for SAP S/4HANA Compatibility Packs are set forth in the Software Use Rights Document. Localization In addition to the compatibility packs listed in this document, SAP provides the following functional localizations for the following countries: Country Argentina Austria Brazil China Croatia Denmark Finland Kazakhstan Mexico Portugal Russia South Korea Turkey Ukraine Functional Localization Electronic invoicing Electronic invoicing TAXBRJ tax calculation schema Electronic invoicing Electronic invoicing Electronic invoicing Electronic invoicing Electronic invoicing Electronic invoicing Electronic invoicing and delivery documents Electronic invoicing Electronic invoicing Electronic invoicing Electronic invoicing 430 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs 5.1 Asset Management 5.1.1 Maintenance Operations 5.1.1.1 Analytics for Maintenance Operations Business Background The Plant Maintenance Information System is part of the Logistics Information System that you can use to analyze maintenance data. Key Features The following standard analyses are available in the Plant Maintenance Information System: Key Feature Use Location- and Planning Group Analysis Two standard analyses are provided to evaluate the location data and the planning group data. The information structure S061 (Location and Planning) provides the data for both analyses. For the location, you can, for example, analyze the number of unplanned, plan ned, entered or completed orders, the overall estimated costs, the total planned costs and the total actual costs or the internal and external material rate. For the planning group, you can, for example, analyze the number of entered breakdowns, notifications or orders, or the actual total revenues and costs. Object Class- and Manufacturer Analysis Two standard analyses are provided to evaluate the object class data and the manufac turer data. You can, for example, evaluate the number of entered and completed notifications or orders, or get key figures about the internal and external material rate and mate rial costs. The information structure S062 (Object Class and Manufacturer) provides the data for both analyses. Single Object-Damage Analysis In the standard analysis for single object-damage, you can evaluate the damage data for single objects. You can, for example, evaluate the amount of damage, how many individ ual causes of damage there are and the number of activities performed. The information structure S063 (Damage Analysis) provides the data for this analysis. Object Statistics You can use the standard analysis for object statistics to view statistical data for the technical object. You can, for example, view the acquisition value, get key figures about the total number of functional locations and pieces of equipment and evaluate the num ber of functional locations with no equipment installed. The information structure S065 (Object Statistics) provides the data for this analysis. SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs PUBLIC 431 Key Feature Use Breakdown Analysis In the standard breakdown analysis, you can evaluate data recorded in connection with the breakdown of a machine. The aim of this analysis is to find out the cause behind a short or long breakdown period, or the period between two consecutive breakdowns. The information structure S070 (Breakdown Statistics) provides the data for this analy sis. Vehicle Consumption Analysis The standard vehicle consumption analysis enables you to evaluate the key figures Dis tance Covered, Operating Hours, Fuel Mass and Fuel Volume. The information structure S114 (Vehicle Consumption Analysis) provides the data for this analysis. Costs Analysis You can use the standard costs analysis to evaluate the key figures regarding the costs incurred. You can, for example, analyze the total planned and actual costs for mainte nance measures, the actual revenues, and the actual costs for company's own and exter nal material for maintenance measures. The information structure S115 (Costs Analysis) provides the data for this analysis. 5.2 Finance 5.2.1 Accounting and Financial Close 5.2.1.1 From FI-AA: Derived Depreciation Areas Business Background A derived depreciation area is an area for which the values are calculated from two or more real depreciation areas using a calculation formula. The rules for positive/negative net book value of a derived depreciation area are checked with each posting and depreciation change in the corresponding real depreciation areas. Technical Information Type of Component Application Component Software Component 432 PUBLIC Component Derived Depreciation Areas (FI-AA-AA-BV-DD) S4CORE SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs 5.2.1.2 From FI-AA: Group Assets Business Background You can group together several fixed assets into a group asset in order to handle these assets depreciation area-specifically for the depreciation calculation and depreciation update. A group asset is represented in the system by a separate master record. Technical Information Type of Component Application Component Software Component Component Group Assets (FI-AA-AA-BV-GA) S4CORE 5.2.1.3 Special Ledgers (FI-SL) Business Background You can use special ledgers to define ledgers yourself for reporting purposes. You can manage the ledgers you define yourself with any account assignment objects as general ledgers or subledgers. Account assignment objects can be SAP dimensions from multiple applications (for example, account, business area, profit center) and own dimensions (for example, region). The following functions (amongst others) are available with the special ledgers: Flexible database structures with additional fields Selective data retrieval Adjustment postings (for example, for the currency valuation) Alternative chart of accounts Alternative fiscal year with multiple fiscal year variants Total line items from other applications SAP-wide reporting (with data from different SAP applications) SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs PUBLIC 433 Technical Information Type of Component Application Component Software Component Component Special Ledgers (FI-SL) S4CORE 5.2.1.4 Cost of Sales Ledger Business Background The cost of sales ledger (table GLFUNCT) contains the totals records for cost of sales accounting, which is a type of profit and loss statement that matches sales revenues to the costs of the products sold. The contents of the cost of sales ledger and all special ledgers created in table GLCUNCT are included in the Universal Journal (table ACDOCA). Technical Information Type of Component Application Component Software Component Component FI-SL-SL QRT_STAG 5.2.1.5 Reconciliation Ledger Business Background The reconciliation ledger tracks postings entered in Controlling for which the value flows affect other organizational units in Financial Accounting. This includes postings such as: Activity allocations Repostings Settlement of internal orders Special reports let you investigate these postings across functional areas, company codes, or business areas. With the new architecture, the contents of the reconciliation ledger (table COFIT) and all special ledgers created in table COFIT are included in the Universal Journal (table ACDOCA). 434 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs Technical Information Type of Component Application Component Software Component Component CO-OM-CEL S4CORE 5.2.1.6 SAP Financial Closing Cockpit Business Background The SAP Financial Closing Cockpit helps you with the planning, execution, and analysis of closing operations for the organizational units of your corporate group. The solution provides a structured user interface for recurring periodical tasks in the closing process in which several people responsible are involved. The following types of closing steps are supported: Transactions, direct execution of programs, execution of programs in batch processing, workflows and manual steps. To optimize the closing process, the solution provides the following functions: event-controlled organization of closing activities Process overview and monitoring options Analysis tools Technical Information Type of Component Application Component Software Component Component Financial Closing cockpit Add-on (CA-GTF-FCC) FCCO 5.2.1.7 Preparations for Consolidation Business Background With the preparation for consolidation you prepare financial reporting data in such a way that it can be processed from the consolidation application (for example consolidation (EC-CS)). SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs PUBLIC 435 These preparations are prerequisite for the automatic transfer of data from the SAP Financial Accounting (FI) applications, Profit Center Accounting (EC-PCA), Materials Management (MM) and Sales and Distribution (SD) to consolidation. These applications that feed the consolidation manage the required account assignments in your documents and make these available to the consolidation with the data transfer. The preparation for consolidation includes functions that can be used independently of SAP Consolidation to reconcile receivables/payables or expenses/revenue between consolidation units and to transfer data to the consolidation application of the parent company. Note The data of the preparation for consolidation is stored in table GLT3 . Note that you may need table GLT3 when implementing SAP S/4HANA for the migration of general ledger accounting data. Technical Information Type of Component Application Component Software Component Component Feeder components for consolidation: FI, EC-PCA for exam ple S4CORE 5.2.1.8 Profit Center Accounting (EC-PCA) Business Background Profit Center Accounting supports you in determining internal operating income for profit centers according to period accounting or cost of sales accounting. It is also possible to display restricted assets on the profit centers. Finally so-called statistical key figures (for example, employees, square meters) can be managed on the profit centers. This makes it possible to determine all the key figures normally used in Controlling (return on investment, cash flow, sales per employee, etc.). Technical Information Type of Component Application Component Component Profit Center Accounting (EC-PCA) 436 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs Type of Component Software Component Component S4CORE 5.2.1.9 Consolidation (EC-CS) Business Background The features of Consolidation (EC-CS) can be used for external as well as internal group reporting. Different types of consolidation are available on the basis of custom-defined organizational units (for example, companies or profit centers). Consolidation enables you to periodically schedule, generate and monitor your consolidated financial statements. This process offers a high degree of flexibility with regard to the timing of closings as well as the configuration of different accounting principles. Technical Information Type of Component Application Component Software Component Component Consolidation (EC-CS) S4CORE 5.2.1.10 Report Writer and Report Painter: Usage in Finance Business Background Report Writer and Report Painter are tools for creating reports that fulfil reporting requirements in Finance. You can use Report Writer and Report Painter to report on data from multiple applications. Report Writer uses a graphical reporting structure that is the basis for the reporting definition. During the definition the user sees the structure of the report in the form in which the report appears when the data is issued. To make the report definition easier, you can use line models or column models and standard layouts. In Report Writer you use functions such as sets, variables, formulas, cells and key figures to help you create complex reports that meet specific reporting requirements. SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs PUBLIC 437 When working with Report Writer, you can use certain functions that are not supported by Report Painter. These functions include: Multidimensional column structures User-defined definition of inactive row and column combinations Enhanced functions for using cells in column formulas Technical Information Type of Component Application Component Software Component Component Multiple application components in Finance, for example, FISL-IS, EC-PCA-IS-RP, EC-CS-IS-STD-RW, EC-CS-IS-USD-RW, CO-PC-IS S4CORE 5.2.1.11 DataSources: Usage in Finance Business Background A DataSource is an object that makes data for a business unit available to the SAP Business Warehouse (BW). DataSources contain a number of logically-related fields that are arranged in a flat structure and contain data to be transfered to BW. DataSources are mainly shipped with the back end. Note You can continue to use the DataSources for Finance; exceptions are listed in SAP Note 2270133. However, we recommend that you switch to the new DataSources as soon as they are available. Technical Information Type of Component Application Component Software Component 438 PUBLIC Component Multiple application components in Finance, for example AC, FI, CO, EC, TR S4CORE SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs 5.2.1.12 Data Retention Tool (DART) Business Background The Data Retention Tool is designed to help SAP users meet legal requirements concerning data retention and data transfer for tax auditing. You use the tool to periodically extract and store tax-relevant data from various SAP applications. The data is extracted into sequential files which can be viewed with the tool in different ways. We still support DART segments that are based on the old database tables (such as COEP and FAGLFLEXT/A) which have been replaced by the Universal Journal (table ACDOCA). Technical Information Type of Component Application Component Software Component Component CA-GTF-DRT QRT_STAG 5.2.1.13 From Joint Venture Accounting: Redundant Tables Business Background Joint Venture Accounting enables you to form joint venture partnerships by defining Joint Operating Agreements (JOAs) with one or more partners. By combining monetary or personnel resources, you can share your project's expenses and revenues with dedicated partners. As operator you can manage ventures, arrange venture activities, and maintain accounting records. This allows you to remit venture expenses, collect revenues, and distribute revenues to your partners according to their ownership shares. You can use the Joint Venture Ledger line item and totals tables, such as JVS01 and JVT01, as well as the Billing Ledger tables, such as JVS02 and JVT02. Technical Information Type of Component Application Component SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs Component CA-JVA PUBLIC 439 Type of Component Software Component Component S4CORE 5.2.2 Travel Management 5.2.2.1 Travel Management Note Please note, that for customers using SAP S/4HANA Cloud, private edition, features mentioned in this chapter might be unavailable, restricted and/or might require a separate license. For further information on SAP S/4HANA Cloud, private edition, please contact your SAP Account Executive. Business Background Travel Management covers the end-to-end process from a travel plan, the reservation of travel services on through the creation of an expense report, its approval, settlement and posting (to financial accounting, human capital management or using data medium exchange). Key Features The following table explains the key features available: Key Feature Travel Request Travel Planning Travel Expenses Use As a traveler, you can submit a request for an intended trip. As a manager, you can approve or reject a travel request. As a traveler, you can plan your travel itinerary by booking travel services (flights, hotels, rental cars, ...) As a traveler, you can create and submit your expense report for reimburse ment. As a manager, you can approve or reject a travel expense report. 440 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs 5.2.3 Receivables Management 5.2.3.1 Electronic Bill Presentment and Payment (FI-AR, FIAP, FI-CA) Business Background SAP Biller Direct allows billers to send and their customers to receive invoices electronically, thus making invoicing more efficient. The following key features are available for bill recipients (integration with FI-AR and FI-CA) Key Feature View bills Download bills Pay bills Create payment advice notes File complaints and make inquiries Manage balances Use Bill recipients can view account balancesbills, credits, and payments. Bill recipients can download bills as PDF files and other formats in case an opti cal archive has been connected. Bill recipients can pay open bills by credit card or bank transfer. They can also settle open receivables with credits. Bill recipients can create payment advice notes. Bill recipients can file complaints by opening a dispute case and make inqui ries. Bill recipients can view monthly balances and line items. They can also carry out balance confirmation. The following key features are available for billers (integration with FI-AP) Key Feature Upload and download bills View open bills View payments already made Manage balances Use Billers can upload bills for their recipients. They can also download the bills that they have uploaded. Billers can check which bills are already entered in their recipients' accounting system. Billers can view the payments that their recipients have already made. Billers can view monthly balances and line items. They can also carry out bal ance confirmation. SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs PUBLIC 441 Technical Information Component Type Application Component Software Component Component Biller Direct (FIN-FSCM-BD) S4CORE 5.3 Human Resources 5.3.1 Core HR and Payroll 5.3.1.1 HR Administration Note Please note, that for customers using SAP S/4HANA Cloud, private edition, features mentioned in this chapter might be unavailable, restricted and/or might require a separate license. For further information on SAP S/4HANA Cloud, private edition, please contact your SAP Account Executive. Business Background HR Administration enables you to manage many benefits processes, storing information on employees by date and time. Regional HR organizations can access flexible, localized processes delivered for more than 50 countries/regions. Key Features The following table explains the key features available: Key Feature Personnel Administration Use You can enter and process employee-related data within your company. Person nel Administration automatically checks all data as it is entered to ensure that it is plausible. All employee-related data is logged with the exact date. Data re mains transparent in your time progression at all times, and creates the basis for sound personnel decisions. 442 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs Key Feature Use Working with Object Manager You use the object manager to find employees whose data you want to display or edit. Business Processes in Personnel Admin istration You can perform the following business processes for an employee: Hiring a New Employee Organizational Reassignment of an employee Country/Region Reassignment of an employee Employee Leaving the company Employee Reentry into the company Personnel & Organization You can use this component to manage employee master data and organiza tional data from a single point of access: the landing page. This intuitive user interface offers a unified and enhanced rich search, activity-based access to tasks, organizational data, employee master data, analytics, and a built-in col laboration platform. Maintaining HR Master Data You can use the functions for maintaining HR master data to perform all the tasks necessary to enter, update, and analyze employee data. Technical Processes in Personnel Admin istration You can set up general authorizations that are based on the SAP-wide au thorization concept or you can set up HR-specific structural authorizations that check by organizational assignment to determine if a user is author ized to perform an activity. The employment period calculation functions enable you to determine dif ferent employment periods from the employee data. The result of the em ployment period calculation is required for further processes or functions. Within Personnel Administration, the storage functions provided by SAP ArchiveLink facilitate the use of content servers to store copies of incom ing documents, such as employment contracts, appraisals, and employee photos. Thus the Human Resources department can save time and money by managing the personnel file centrally as it increases in size and detail. You can use the archiving and delete functionality to archive or destroy long-term change documents from Personnel Administration that belong to a personnel number or an applicant number. Service Request Side Panel As an administrator, you can use this side panel to create and maintain service requests, directly alongside the application you are using. It enables you to pro vide context relevant data within the service request, which aids the Shared Service Center (SSC) agent in understanding the issue. Management of Global Employees This is a comprehensive solution that helps global companies streamline their expatriation and repatriation processes from A to Z according to their specific needs - from the planning and the preparation of the global assignment, to the global assignment itself and the repatriation and thus track global employees throughout the world at any time. The recruitment process, however, is not within the scope of this functionality. SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs PUBLIC 443 Key Feature Concurrent Employment Use You use this component to manage HR master data, the time data, and benefits of your concurrently employed employees, and to run the payroll for these em ployees. 5.3.1.2 Payroll Note Please note, that for customers using SAP S/4HANA Cloud, private edition, features mentioned in this chapter might be unavailable, restricted and/or might require a separate license. For further information on SAP S/4HANA Cloud, private edition, please contact your SAP Account Executive. Business Background Payroll allows you to process and ensure accurate, on-time payrolls across the enterprise. You can use this solution to process payrolls, third-party payments, tax reporting, and accounting data by country, region, and language. With its integrated functions, the solution manages differentiated value that supports net payroll calculation and legal reporting. Using this solution, users can enter HR information that becomes immediately available to payroll programs for gross-to-net calculations. Key Features The following table explains the key features available: Key Feature Gross Payroll Net Payroll Off-Cycle Payroll Use You use this feature to determine an employee's basic remuneration as well as any special payments, overtime payments or bonuses that must be effected for the period in question. You use this feature to determine employee's net remuneration, according to contractual requirements. Net pay is the amount paid after the deduction of net and social insurance contributions from gross remuneration. As an addition to regular payroll, which carries out payroll at fixed regular inter vals, this feature enables you to carry out specific off-cycle payroll activities for individual employees on any day. 444 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs Key Feature Loans Bank Transfer Posting to Accounting Reporting Payroll Control Center Use You use this feature to enter, administer and perform payroll for company loans in the SAP system. You use this feature after the payroll run, to generate data medium exchange (DME) files for your bank. Based on these files, the bank can process the wage and salary payments. You use this feature to evaluate the payroll results for posting to accounting. This feature is the interface between Payroll and Accounting. You use this feature to generate various reports to be used internally or to be sent to legal authorities. Some examples of reports are the Remuneration Statement, Payroll Journal, and Payroll Account. You use this feature to control the complete payroll process. It helps you to plan, monitor and audit your process, producing high quality results quicker and more efficiently. 5.3.1.3 Organizational Management Note Please note, that for customers using SAP S/4HANA Cloud, private edition, features mentioned in this chapter might be unavailable, restricted and/or might require a separate license. For further information on SAP S/4HANA Cloud, private edition, please contact your SAP Account Executive. Business Background As an HR professional or manager, you can gain a full view of your organizational structure - and capabilities of talent management processes. Assigning requirements to developed job positions provides input for choosing the most fitting, talented employees. SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs PUBLIC 445 Key Features The following table explains the key features available: Key Feature Use Manager's Desktop This component provides managers with data on the organizational plan of their area of responsibility and enables them to edit this information. Editing Jobs, tasks, and staff assignments You can create, display or assign jobs, tasks, or staff assignments. Authorizations for Human Resources You can set up general authorizations that are based on the SAP-wide authori zation concept or you can set up HR-specific structural authorizations that check by organizational assignment if a user is authorized to perform an activ ity. Note: All information refers to the SAP Standard Release 4.70 unless other wise stated. Workforce Viewer The Workforce Viewer provides a simplified solution for representing organiza tional (org.) structures. The main objective is to use and display the solution within the Human Capital Management (HCM) lanes for applications such as Manager Self-Service (MSS), Personnel & Organization, and Employee SelfService (ESS). The solution has been conceptualized to provide an easy-to-use and aestheti cally pleasing graphical representation of different org. structures. Currently, the solution displays three different object types, organizational units (OrgUnit card), positions (position card), and employees (employee card). Position Budgeting and Control You can use this component to finance employees efficiently in accordance with budget or legal requirements. HR Funds and Position Management Gives you a detailed view of your overall personnel budget, and links this budget to the staff and positions in your organization. Personnel Cost Planning and Simulation This component enables you to execute operational personnel cost planning. You plan the development of your employees' wages and salaries and employee benefit costs, for example, employer contributions to social insurance and fur ther education and training costs. You can simulate different planning scenarios that are based on various assumptions and analyze the effects they have on the company. Personnel Cost Planning and Simulation enables you to support stra tegic personnel management and the overall strategy of your company. 5.3.1.4 Compensation Management Note Please note, that for customers using SAP S/4HANA Cloud, private edition, features mentioned in this chapter might be unavailable, restricted and/or might require a separate license. For further information on SAP S/4HANA Cloud, private edition, please contact your SAP Account Executive. 446 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs Business Background Compensation management enables you to differentiate between your remuneration strategies and those of your competitors while still allowing flexibility, control, and cost effectiveness. It provides a toolset for strategic remuneration planning that reflects your organization culture and pay strategies, and it empowers line managers within a framework of flexible budget control. Compensation Management allows you to control bottom-line expenditures and offer competitive and motivating remuneration, be it fixed pay, variable pay, stock options, merit increases, or promotion in other words, total compensation. Key Features The following table explains the key features available: Key Feature Compensation Administration Long-Term Incentives Budgeting Job Pricing Use You can use this component to plan and process remuneration changes. You can use this component to set up your company's long-term incentive (LTI) plans and describe how equity compensation should be granted and han dled. You can use this component to create, change, and monitor budgets in your company. You can use this component to analyze, evaluate, and determine the compen sation level for specific jobs, based on the current market rate. This compo nent enables you to offer competitive compensation packages that attract the best possible pool of applicants, thus enabling you to hire the best possible employees for your organization. 5.3.1.5 Manager Self-Service Note Please note, that for customers using SAP S/4HANA Cloud, private edition, features mentioned in this chapter might be unavailable, restricted and/or might require a separate license. For further information on SAP S/4HANA Cloud, private edition, please contact your SAP Account Executive. Business Background Manager Self-Service enables you to increase productivity and reduce operational burdens for HR staff. A rolebased user interface that helps managers make decisions on executing human capital, financial, and SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs PUBLIC 447 operational management strategies. This solution supports planning, analysis, budgeting, recruitment, compensation, employee development, and cost management processes on any device. Access to automated processes, data, and workflow requests can reduce cycle times and transactional costs. It integrates selfservices with business intelligence capabilities and aggregates data from all sources. Managers can use this integrated data to make informed decisions regarding corporate strategies and resource management. Key Features The following table explains the key features available: Key Feature Manager Self-Service: Home page Manager Self-Service: Work Overview Page Team Recruiting Use You can view: Team Birthdays and Anniversaries Time Recording Status for My Team Deadline Monitor Competency Matchup Substitution You can use this application to access your inbox. The inbox lists the work items, alerts, and notifications for which you are responsible. You can have an overview of the team attendance and also view the team calendar. You can display employees for one or more organizational units, display di rectly reporting employees in a list, search for employees. You can start a process for one or more employees. You can start the hiring process for a new employee. You can display forms and attachments. You can select one or more direct reports to manage their participation bookings. You can obtain a comprehensive overview of all requisitions that you have initiated with your own requisition request that you are processing as a substitute for another manager, or that were assigned to you by a re cruiter. You can call and edit questionnaires for candidates. You can assess candidates with regard to the Talent Pool or requisition. You can display a data overview of requisitions, requisition requests, can didates, and job postings. You can create or edit a requisition request. You can specify substitutes who can take over their tasks during planned or unplanned absences under the recruitment process. 448 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs Key Feature Talent Management Planning Projects Budget Organization Reports Use You can display the pie-chart and competencies matchup information. You can execute a flexible or predefined appraisal process. You can plan or approve compensation for managers or employees as signed to you. You can display an overview of the current status of the planning process in Compensation. You can display detailed information about an employee's compensation. You can compare compensation of multiple employees. You can display an employee's detailed employee compensation profile. You can: Display service requests submitted requesting master data changes and budget updates Manage planning rounds as part of Express Planning You can: Display service requests submitted requesting master data changes and budget updates Display planned costs and cost consumption on orders for which you are responsible Display planned costs and cost consumption for projects based on the work breakdown structure (WBS) elements Display the budget and funds available on orders for which you are re sponsible Display the budget and funds available for projects based on the work breakdown structure (WBS) elements You can display: Critical variances by profit Centers, Cost centers, or orders Critical postings by profit Centers, Cost centers, or orders Costs and depreciation associated with each asset and piece of equip ment Assets and pieces of equipment that are assigned to each employee You can: Displays the Organization Units in the manager's area of responsibility Select and launch position profile Request an administrative change for a job, position, or organizational unit Search for organizational processes Change the position requirements for your positions You can use this service to launch reports that are relevant for you. SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs PUBLIC 449 Key Feature Use Substitution You can substitute both tasks and applications to other users in an organiza tion. Reminder of Dates You can use this service to see the birthday, anniversaries, and dates from the monitoring of task absence data for the employees who are in your area of re sponsibility. Employee Self-Service on Behalf in MSS (WDA) You can launch services (applications) on behalf of your employees 5.3.1.6 Employee Self-Service Note Please note, that for customers using SAP S/4HANA Cloud, private edition, features mentioned in this chapter might be unavailable, restricted and/or might require a separate license. For further information on SAP S/4HANA Cloud, private edition, please contact your SAP Account Executive. Business Background Employee Self-Service enables you to improve productivity by automating processes and reducing administrative costs, cycle time, and error rates. By giving employees more control over their own data, organizations can realize a quicker return on investment. Self-services gives employees personalized access to their own HR data, processes, and services. Employees take more responsibility for their jobs and career development. Employees can enter, display, and update personal information such as bank information and emergency contacts. HR staff members freed from routine inquiries and data entry can focus on strategic initiatives that contribute to business goals. 450 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs Key Features The following table explains the key features available: Key Feature Use Employee Self-Service (ESS) in Training and Event Management You can: Display the current business event offering. View all of their bookings and the status of each booking. Provide support for the organization and management of business events by giving internal Intranet users access to an event calendar divided into subject areas. Make bookings or prebookings for business events directly via Intranet. Access information on bookings they have made for training courses or other business events offered by your company. Cancel your own bookings on business events offered by your company. Employee Self-Service (ESS) in Recruit ment You can: Apply to vacancies advertised internally Create attachments Check the status of your job applications over the intranet Employee Self-Service (ESS) in Personnel Development You can: Edit your qualifications profile Compare your qualifications profile with the requirements profile of the position to which you are assigned. View the qualifications (skills, talents, knowledge) that have been re corded in the system for you View the requirements of the position to which you are assigned View the appraisals where you have been the appraisee (annual reviews, for example) ESS Services in Compensation Manage ment You can: Execute salary surveys Display a total compensation statement Exercise awards Employee Self-Service for Concurrent Em You can: ployment Maintain Multiple Personnel Assignments Prevent Access to Services Customize Global Employment Roles ESS for Enterprise Compensation Man agement You can view and print their Total Compensation Statement (TCS) whenever required. SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs PUBLIC 451 Key Feature Use ESS for Personnel Time You can record your time and absences for the projects assigned to you. Employee Self-Service (ESS) in Training and Event Management You can: Display the current business event offering View all of your bookings and the status of each booking Access to an event calendar divided into subject areas through the intra net Make bookings or pre-bookings for business events directly through intra net. Access information on bookings that you have made for training courses or other business events offered by your company Cancel your bookings for business events offered by your company International Services International Services are available with ESS 5.3.1.7 Benefits Enrollment and Administration Note Please note, that for customers using SAP S/4HANA Cloud, private edition, features mentioned in this chapter might be unavailable, restricted and/or might require a separate license. For further information on SAP S/4HANA Cloud, private edition, please contact your SAP Account Executive. Business Background Benefits Enrollment and Administration enables you to develop and manage employee benefit plans. As an HR staff, you can improve communication of information to and from benefits providers and review related reports. As a manager or an employee, you can access and change your benefits selections through self-service. 452 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs Key Features The following table explains the key features available: Key Feature Benefits Management Benefits Employee Self-Service USA Specifics Asia Specifics UK Specifics Pension Fund (PA-PF) Use You can perform the following main activities using this component: Enroll employees in benefits plans and terminate enrollments Monitor continuing eligibility for plans Monitor provision of evidence of insurability View information about current benefit enrollments Print enrollment and confirmation forms Transfer data electronically to plan providers Administer retirement plans You can use this component to manage your benefits independently online. You have continual access to up-to-date information about your benefits, and any changes you make are immediately effective. Addresses functions in the Benefits Administration component that are spe cific to United States employers. This component includes information on info types that are used to administer COBRA plans, Flexible Spending Accounts and Tax-Sheltered Annuity Plans, as well as reports that are used to monitor employee contributions made to benefits plans. This component enables you to implement the Claims function for Asia. This function caters mainly to medical claims, but this can also be used for other claims such as cloth reimbursements. Since most of the health care is private, a medical insurance is part of the contract of employment. This new solution for the UK market enhances existing functions delivered with the International Benefits component. It provides you with a wide range of functions to implement your chosen Flexible Benefits scheme and enable your employees to enroll in benefits plans. This component includes functions that Calculate employee contributions to the pension fund Calculate benefits (technical account management) Create reports Manage a pension fund SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs PUBLIC 453 5.3.1.8 HR Shared Services Note Please note, that for customers using SAP S/4HANA Cloud, private edition, features mentioned in this chapter might be unavailable, restricted and/or might require a separate license. For further information on SAP S/4HANA Cloud, private edition, please contact your SAP Account Executive. Business Background HR Shared Services enables you to deliver accurate, consistent, and timely responses to employees and managers. It simplifies the workflow required to respond to HR requests. Providers can reduce costs while helping to improve employee satisfaction with services. It provides HR services through shared-services channels in an engaging, helpful manner. Organizations can optimize shared-service delivery using the consistent, predictable, and easily navigated workspace that our software provides. Key Features The following table explains the key features available: Key Feature HCM Processes and Forms HR Administrator Digital Personnel File (DPF) Use You can use this component to execute HR processes in which changes are to be made to HR master data. You can use interactive forms to integrate all in volved roles directly in the process. This subcomponent of HR Administrator Services contains the HR Administra tor portal role that provides all tasks and functions for the HR department in the portal. The role of HR Administrator is integrated optimally in the HCM Processes and Forms framework: The system automatically forwards the proc essing steps of a process that are to be performed by an HR administrator to the portal role. You can also edit employee data in this role. This function is based on the maintenance of HR master data. The HR administrator can call the master data maintenance directly using the Employee Data Maintenance in the portal or through the backend system. The HR administrator can also change master data without using the HCM Processes and Forms framework. You can use this component to provide central storage for all documents that affect the employees of your company. You can store documents relating to the work relationship, remuneration, life events, for example, or certificates and other legal documents. You can design the structure of the Digital Personnel File (DPF) to suit your own requirements. 454 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs Key Feature Web Dynpro ABAP UI (Alternative UI) Use The HCM Processes and Forms framework previously used the Adobe interac tive forms solution integrated with Web Dynpro ABAP for its user interface (UI). A new UI based on the Floor Plan Manager (FPM) framework has been created as an alternative. 5.3.2 Talent Management 5.3.2.1 Goal and Performance Management Note Please note, that for customers using SAP S/4HANA Cloud, private edition, features mentioned in this chapter might be unavailable, restricted and/or might require a separate license. For further information on SAP S/4HANA Cloud, private edition, please contact your SAP Account Executive. Business Background Goal and Performance Management enables you to motivate your workforce by aligning them with corporate goals. Managers can cascade goals, review employee performance, and identify each employee's development needs with standardized, consistent appraisal and performance processes. Using this solution, managers can develop employees, calibrate their overall performance, and review potential ratings in a visual grid. They can also integrate those performance ratings with compensation management to support pay for performance enabling the HR organization to monitor, support, and control performance processes. Key Features The following table explains the key features available: Key Feature Development plans Use You use this component to map general and individual personnel development plans in your system. You can use these development plans to plan and man age short-term and long-term personnel development measures. SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs PUBLIC 455 Key Feature Objective Setting and Appraisals Appraisal Systems Use This component supports you when you perform user-defined appraisal proc esses that assure appraisals are performed in a formalized and standardized manner in a standard business context. You can depict the typical phases of an appraisal process such as planning, reviewing, and performing. This component provides you with the support you need for creating appraisal systems, and planning, implementing, and reporting on appraisals. An ap praisal system is a self-contained process that enables you to make formal and standardized evaluations in a business context using one or more templates (appraisal models), and in as objective a manner as possible. 5.3.2.2 Talent Assessment Note Please note, that for customers using SAP S/4HANA Cloud, private edition, features mentioned in this chapter might be unavailable, restricted and/or might require a separate license. For further information on SAP S/4HANA Cloud, private edition, please contact your SAP Account Executive. Business Background Talent Assessment enables you to consolidate employee talent profiles for full assessments in a structured and objective approach. With greater ease and speed, HR professionals and business leaders can prepare, conduct, and follow-up on talent review meetings with a cross-organizational view of up-to-date talent data. As a result, business leaders can make more-informed decisions on talent pool membership, and create and manage succession plans, employee performance and potential ratings. Key Features The following table explains the key features available: Key Feature Transfer of Data to Talent Management Search in Talent Management Use You can use this function to transfer existing Talent Management data from other applications into Talent Management (PA-TM). You can search the talent pool to identify possible successors for important po sitions or to discuss talents in talent review meetings 456 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs Key Feature Assessment of Employees Talent Profile Talent Group Talent Review Meeting Side-By-Side Comparison Talent Development Use You can use this function to assess your employees. You can store all information relevant to Talent Management for an employee. You can use this function to create groups for classifying talents and thus structure the pool of talents in your enterprise in larger logical units: Assigning a talent to a particular talent group enables a systematic entry of that talent's development and thus a better overview when managing talents, for example, for Succession Planning. You can use this function to prepare, hold, and follow up on meetings for dis cussing talents. You can use this function to place the short profiles of two or more talents next to each other and compare them side-by-side. You can use this function to edit development plans for employees and monitor their progress. 5.3.2.3 Skill Management Note Please note, that for customers using SAP S/4HANA Cloud, private edition, features mentioned in this chapter might be unavailable, restricted and/or might require a separate license. For further information on SAP S/4HANA Cloud, private edition, please contact your SAP Account Executive. Business Background Skill Management enables you to maximize employees' utility within your company. You can plan and implement specific personnel and training measures to promote the professional development of your employees. You can also ensure that staff qualification requirements are met and planned. By taking into account employees' preferences and suitability, you can increase job satisfaction. Personnel development sets out to ensure that all of the employees in all of the functional areas in your company are qualified to the required standards, and will remain so in the future. This is achieved by developing qualification potentials. SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs PUBLIC 457 Key Features The following table explains the key features available: Key Feature Qualifications and Requirements Use You use the Qualifications and Requirements component to define, structure, and manage your qualifications catalog. Based on this qualifications catalog, the organizational structure (and, if required, other information) you can cre ate profiles. You can then use these profiles to manage, evaluate, and compare object characteristics. The profiles can be used to show both the requirements of a position and the qualifications and career goals (preferences) of a person. You can also run profile matchups to find out how suitable certain persons are for a certain position in your organization, for example. If any qualification deficits arise, you can plan further training measures. 5.3.2.4 Succession Management Note Please note, that for customers using SAP S/4HANA Cloud, private edition, features mentioned in this chapter might be unavailable, restricted and/or might require a separate license. For further information on SAP S/4HANA Cloud, private edition, please contact your SAP Account Executive. Business Background Succession Management enables you to develop and manage employee benefit plans. HR staff can improve communication of information to and from benefits providers and review related reports. Managers and employees can access and change their benefits selections through self-service to better serve their own needs. HR staff can maintain legal compliance at lower cost on a single record system integrated with selfservices and payroll processes. Integrated processes support all HR administrative tasks and flexible reporting and analytics provide a fuller view and insight into benefits processes. 458 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs Key Features The following table explains the key features available: Key Feature Use Careers This function enables you to create and change careers. A career is a collection of jobs or positions, and describes a generally applicable career path within the organizational structure. By defining careers, you can portray the principal per sonnel development paths within your company. Career Planning This function enables you to prepare and work your way through career plan ning scenarios. A career planning scenario takes an employee's personality, skills and abilities and determines the positions this employee should occupy in the course of his or her future career, and the training measures required to obtain the additional qualifications needed for this. A career planning scenario anticipates how an employee's career will develop. Succession Planning Scenarios This function enables you to prepare and work your way through succession planning scenarios. Succession planning sets out to ensure that there is a con tinuous supply of qualified personnel. Organizational Basis of Succession Plan ning You use this function to make organizational arrangements for Succession Planning. Job Architecture for Talent Management You can use this function to edit the job architecture for Talent Management, meaning the job catalog with functional areas, job families, jobs, and positions. In particular, the job architecture forms the basis for Succession Planning. Automatic Limiting of the Validity for Suc cessor Assignments and Talent Assign ments The system uses this function to automatically delimit or delete successor as signments and talent assignments for employees (see Delimit) if one of the fol lowing situations arises: An employee previously assigned to a position as a potential successor becomes the new holder of this position. A talent's employment status changes from Active to Left Company, Inac tive, or Pensioner. 5.3.3 Time and Attendance Management 5.3.3.1 Time Capture Note Please note, that for customers using SAP S/4HANA Cloud, private edition, features mentioned in this chapter might be unavailable, restricted and/or might require a separate license. For further information on SAP S/4HANA Cloud, private edition, please contact your SAP Account Executive. SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs PUBLIC 459 Business Background Time Capture enables you to record and manage time data effectively and efficiently. It provides you with a comprehensive and effective business concept and related processes for manual and automatic recording of personnel times. Time recording allows you to enter employee time data for working time, leave, business trips, and substitutions using different methods. This data can be entered as clock times or in hours and can contain account assignment specifications for other SAP applications. Key Features The following table explains the key features available: Key Feature Use Maintaining and Displaying Time Data Us ing The Time Data Menu You can update or display time data using the Time data menu. This option al lows you to access all Time Management infotypes in the Personnel Time Man agement, and then display or maintain them. Maintaining and Displaying Time Data Us ing Calendars You can maintain or display data using either a weekly, monthly, or annual cal endar. Using calendars facilitates the fast entry of data, and also allows you to view the data record history for a selected period. Fast Entry of Data The fast entry of time management data enables you to maintain several sub type records for an employee within the same time infotype, as well as main tain one infotype for several employees. The fast entry function merely takes required entries into account. This allows you to record essential time manage ment data more quickly and efficiently. Cross-Application Time Sheet You can use the Cross-Application Time Sheet for recording working times and tasks. It enables you to control all business processes concerning your employ ees' tasks from paying the employees, through monitoring the progress of a project, to creating invoices. Personnel Time Events The Personnel Time Events component enables you to connect external time recording systems to SAP Time Management. If your employees enter the start and end of their working times on time recording terminals, you can use this component to process the resulting time events in Time Management. You can also process employee expenditure data resulting from purchases at company cafeterias and service stations. Plant Data Collection This component controls the transfer of confirmations to Time Management from the following application components: Production Planning and Process Control Plant Maintenance and Customer Service Project System 460 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs Key Feature Timesheet Use You can log in time spent on different tasks (projects or non-project related) using this feature. 5.3.3.2 Time Calculation Note Please note, that for customers using SAP S/4HANA Cloud, private edition, features mentioned in this chapter might be unavailable, restricted and/or might require a separate license. For further information on SAP S/4HANA Cloud, private edition, please contact your SAP Account Executive. Business Background Time Calculation enables you to define and manage time elements for payroll schedules, and shifts. Use a time-evaluation component to generate a variety of payroll-related time codes to determine employee pay. Decision makers can use time management analytics to get other targeted workforce information. You can get this solution designed for global processes, as well as localized processes for more than 50 countries/regions, in a single platform. Key Features The following table explains the key features available: Key Feature Use Work Schedule You store working and break times for groups of employees in this component. This then allows to you to structure working times for your enterprise. You can define work schedules with flextime models or rotating shifts for particular or ganizational units. You can also set up the legislative regulations, collective agreements, and internal company policies that stipulate employee working time in your system. Shift Planning This application component allows you to determine and schedule the appro priate number and type of human resources required for your enterprise to carry out business requirements. Integrating Time Management with Other You can use the Integrating Time Management with Other Components to re Components cord time data that can also be used and processed by other components. SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs PUBLIC 461 Key Feature Use Time Manager's Workplace It is a user interface incorporating the tasks involved in administrating em ployee time and labor and time evaluation messages. It was specifically de signed to meet the needs of time administrators in decentralized departments. Time Management for Concurrent Em ployment If you have employees who have one or more personnel assignments with one or more employers, you can use this component to process your employees' time-management data. Time Evaluation Without Clock Times You can use this component to evaluate employees' personnel times. It proc esses time data that has been imported to the SAP system from time record ing subsystems and data that has been recorded online. You can use this component to evaluate the time data of employees who enter only exceptions to the work schedule and of employees who record all times relevant to their working time (actual times). Processing in this component as sumes that times are expressed as the duration of work, and not the start and end times of work times and employee absences. All recorded times are recog nized as working time. Working time provisions to be checked, such as calcula tion of overtime, relate to employees' daily or weekly work performed. Time Evaluation With Clock Times The Time Evaluation With Clock Times component is used to evaluate employ ees' personnel times. It processes time data that has been imported to the SAP system from time recording subsystems and data that has been recorded online. You use this component to evaluate employees' time data where all times that are relevant to the working time (actual times) are recorded. Processing in this component assumes that times are expressed as start and end times of work performed or of absences. The main function of the component is to classify the actual times by comparing them with the planned working time data stipu lated in the daily work schedule (planned working time start and end, core times, break times). Working times that exceed the specified working time frame are recognized, and are generated as overtime if attendance approvals exist for the relevant employees. Time Data Processing in Time Evaluation You can use this function to customize the processing steps of time evaluation to suit your requirements. Day Processing of Time Data in Time Eval You can use this to evaluate time data on a daily basis. uation Integration with Payroll You can use this component to provide the Payroll component or a third-party payroll system with information on bonuses and the valuation of hourly and overtime wages. This information is required for the calculation of the gross wage. 462 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs Key Feature Use Time Statement Form You can use the time statement form to present the results determined by time evaluation to your employees in a clear layout. You do so by using the time statement form to create a template that is used by the system to create your employees' time statements. Message Processing in the Time Manag er's Workplace A redesigned message processing function has been integrated into the Time Manager's Workplace. It enables time data administrators to use the same user interfaces for processing time evaluation messages as for maintaining time data. Time Management Pool The Time Management pool is a comprehensive instrument that can be used to check, correct, and display evaluated time data. Time data administrators can perform all their most important administrative tasks, such as processing time evaluation messages, from one central screen. Incentive Wages This component is implemented for performance-oriented remuneration. The following forms of remuneration are covered: Time wages Premium wages Piecework wages You can implement both individual incentive wages and group incentive wages. 5.3.3.3 Absence Management Note Please note, that for customers using SAP S/4HANA Cloud, private edition, features mentioned in this chapter might be unavailable, restricted and/or might require a separate license. For further information on SAP S/4HANA Cloud, private edition, please contact your SAP Account Executive. Business Background Absence Management enables you to define and manage working calendars and vacation allowances for global and localized processes for more than 50 countries/regions in one platform. Use multiple interfaces: employee self-services, manager self-services, and mobile access. Employees can enter absences, attendance, and breaks. Managers can approve attendances and absences. SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs PUBLIC 463 Key Features The following table explains the key features available: Key Feature Absences/Attendances Quotas Use You can use this component to create the basic time information for the evalu ation and accounting of your employees' working times. You can also record working times or absence times for individual employees. You can use this component to set up and administrate time accounts, which concern employees' absence entitlements and attendance and overtime ap provals. 5.4 Manufacturing 5.4.1 Quality Management 5.4.1.1 Quality Improvement Business Background To improve your processes and products you can analyze different quality key figures. Key Features The following feature is available, but it is part of the SAP S/4HANA Compatibility Packs: Key Feature Quality key figures Use The quality management information system allows you to analyze quality key figures, for example, concerning quality inspections or notifications. 464 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs 5.4.2 Production Planning 5.4.2.1 Sales and Operations Planning Business Background Sales and Operations Planning (SOP) is a flexible forecasting and planning tool with which sales, production, and other supply chain targets can be set on the basis of historical, existing, and estimated future data. Roughcut planning can also be carried out to determine the amounts of the capacities and other resources required to meet these targets. You can use SOP to streamline and consolidate your company's sales and production operations. SOP is particularly suitable for long- and medium-term planning. Key Features The following features are available: Key Feature Standard SOP Flexible Planning Use Enables you to plan at any level of aggregation, for example, high-level planning of plan ning hierarchies and/or product groups or detailed planning of finished products. Not only can you create sales and production plans, you can also plan other items of infor mation such as key figures from an information structure. Moreover, you can also per form resource leveling for work center capacities, materials, production resources/ tools, and costs to ensure that resources are sufficient to meet targets. You plan using an easy-to-use planning table such as a spreadsheet, in which you can define macros and events and compare actual data with planned data. Standard SOP comes largely preconfigured with the system. Offers multiple options for customized configuration: You can plan on any organiza tional level, and also define the content and the layout of the planning screens. You can process your planning data from the standpoint of almost any organizational unit (for example, sales organization, material group, production plant, product group, material) and even from the standpoint of the entire enterprise. The planning table in which you work resembles a spreadsheet. You have enormous scope to track previous planning data, anticipate market demand, run analyses, and perform what-if simulations. A series of mass processing functions automate the plan ning of large volumes of data. SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs PUBLIC 465 5.4.2.2 Material Requirements Planning Business Background Material requirements planning enables you to ensure the availability of materials and perform basic production planning. It is typically performed by the MRP controller who monitors the material shortage situation and solves any issues on time. Another main task is to ensure that sufficient supplies have been planned to cover requirements -- whether from sales orders, stock transfer orders, or from production, for example. The goal is to ensure that both customer and production demand are available on time and to avoid any disruptions due to missing parts. Key Features The following features are available: Key Feature Execute classic MRP Demand forecasting Forecast-based planning Use If you have implemented BAdIs in classic MRP, you can continue to use these BAdIs in the classic MRP run in SAP S/4HANA. You can use MRP lists to check the classic MRP result. MRP lists are used to find mate rials with issues. These lists are snapshots of the material supply and demand situation at the time of the last classic MRP run. You can estimate future material demand based on historic material consumption data. You can then use the material demand forecast to create planned independent require ments which are planned in the planning run and result in purchase requisitions or in planned orders. You can also use the demand forecast to compute safety stocks and reorder points. You can perform forecast-based planning which is based on material consumption. As for reorder point planning, forecast-based planning operates using historical values and forecast values and future requirements are determined using the integrated forecast ing program. However, in contrast to reorder point planning, these values then form the basis of the planning run. The forecast values therefore have a direct effect in MRP as forecast requirements. 466 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs Key Feature Use Line balancing and sequencing You can adjust the capacity of a line hierarchy to a specific model mix using line balanc ing. The capacity of the line hierarchy is determined by the number of takts and the number of individual capacities in the line segments. The model mix is determined by several materials, the rate of the materials and the rate routings, according to which the materials are produced. You can adjust the capacity by changing the number of takts (processing stations) and the individual capacities (people) and, if applicable, the as signment of the operations to the line segments. Here, the system automatically ad justs the rate routings in the background. You carry out a line balance if you use se quencing and if you produce several materials or material variants on a production line at one time. In sequencing, the system determines the production sequence of planned orders on the assembly lines. Graphical planning table You can use the graphical planning table (also known as the graphical planning board or Gantt chart) for capacity load leveling and sequence planning. You can display the data from the various evaluation lists in the capacity evaluation us ing the SAP presentation graphic. You can also use the SAP Gantt chart Operation/ Work Center to obtain an overview of the dates of operations at a work center. You can define the settings for the layout of data for the various graphics in the graph ics profile. You specify whether the system displays the data for the standard overview as blocks, bars or lines. 5.4.3 Manufacturing Execution for Discrete Industries 5.4.3.1 Production Execution Business Background This capability enables you to make all the necessary preparations required for production, to coordinate the exchange of data relevant to production, and to document production progress. It is typically performed by the production operator and includes the following tasks: Material staging before production starts. Reporting goods withdrawals. Processing time tickets for a production order or a process order. Entering the goods receipt information for the order on completion of the product. Executing planned manual production steps. Documenting and logging production information. SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs PUBLIC 467 Key Features The following features are available: Key Feature Use Electronic records You can use electronic records to evaluate the logs that can be written for changes in database table content. These logs are stored in database table DBTABLOG. You can also display change documents and logs of long text changes. Electronic records are part of the SAP functionality that supports le gal compliance in the regulated environment (for example, in the production of active ingredients and pharmaceuticals). Electronic batch record You can use the functionality of electronic batch record (EBR) if you work in a regulated environment (production of active ingredients, pharmaceuticals, and so on). The content of the EBR is stored in optical archives (using SAP Ar chiveLink technology). EBR content is revisited during external audits. The content has to be available for 10 years on average. Material identification/reconciliation (proc You can use material identification to identify and verify the ingredients at the ess industry) production line. You can use material reconciliation to analyze and verify ingredients at the end of a production process. It enables you to compare the material quantity that actually flowed in with the planned quantity or the quantity of the material pro duced. You can also display other information regarding the ingredients using the movement types. Reconciliation of the ingredients can ensure that there are no discrepancies outside of the valid range in the relationship between the input and yield. Process messages When a manufacturing order is carried out, actual process data is needed that documents the process and is available for further processing in the system and in external function modules such as process control systems. You can use this feature to send actual data from process control to predefined mes sage destinations. Depending on the destination type, various business trans actions are triggered in this way in the SAP S/4HANA system or in an external system and data is reported. Control recipes (process industry) Control instructions (discrete manufactur ing) Using control recipes/instructions, you transfer control data from the manu facturing order to process control. The information contained in a control rec ipe/instruction and the destination to which it is sent are user-defined. Process operator cockpits (process indus try) You can use this feature to link various elements of your company's process control systems as well as to monitor production execution processes. Proc ess operator cockpits provide a single view to the operator. They can be con figured for specific tasks or work groups. In one interactive screen, you can in clude elements such as a toolbar with shortcuts to various operations, a proc ess instruction sheet, and a view of a process control system. 468 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs Key Feature Use Process instruction sheets (process indus try) You can use process instruction sheets (PI sheets) to exchange data between the partially or completely manually operated production level and the sys tem. In manually operated production lines, this usually involves a process op erator who uses the PI sheet to transfer production-relevant actual data to the system and receives data from the system. You can describe the entire production process of a product or only part of it in a PI sheet. If the PI sheet only represents part of the production process, you usually need several PI sheets to manufacture a product. You can, for example, define control and picking information for the individual production steps in the PI sheets. The PI sheet is used to inform the process operator about the individual production steps that need to be performed. The process operator can interactively maintain the PI sheet according to the phase sequence. In addition to control information, the PI sheet can contain input fields and pushbuttons. You can, for example, define fields to be filled by the process op erator with the quantity of material components consumed for a phase. The material withdrawals must then be posted as goods issues in inventory man agement. You can use process messages to carry out this function automati cally. Work instructions (discrete manufactur ing) You can use electronic work instructions that represent the result of control in structions which are sent to your machine operator. The content is displayed as text on the screen. The instructions describe how and in which sequence a product is manufactured and can be processed on the screen. You can enter, confirm, report, or complete data interactively. Work instructions thus facili tate communication between the system and your machine operator on pro duction lines that are operated manually (either fully or partially). Production campaign (process industry) You can group planned orders and process orders to produce a certain amount of a material over a certain period of time. This is done in an uninter rupted sequence on one production line. The aims of production campaigns are to: Reduce costs achieved by grouping sequences of identical production charges and thus carrying out more efficient setup and clean-out proc esses which can be very costly. Increase product quality in cases where the desired quality level is ach ieved gradually in the production process as opposed to immediately from the first batch. Achieve more exact settlement resulting from clear distribution of cam paign fixed costs (setup, clean-out, and tear down costs) to the orders in volved. SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs PUBLIC 469 5.4.3.2 Manufacturing Analytics Business Background The Shop Floor Information System is part of the Logistics Information System that you can use to analyze manufacturing data. Key Features The following standard analyses are available in the Shop Floor Information System: Key Feature Work center analysis Operation analysis Material analysis Production order analysis Material usage analysis Run schedule header analysis Product costs analysis Use You can use the work center standard analysis to evaluate work center data. The infor mation structure S024 provides the data for the analysis. In the standard operation analysis you can evaluate the data from the operation. The information structure S022 provides the data for the analysis. The material standard analysis allows you to evaluate the data for material. The infor mation structure S023 provides the data for the analysis. In this analysis you can evaluate the data for production orders. The information struc ture S021 provides the data for the analysis. In the material usage analysis, you can analyze data from the production orders, run schedule headers, and process orders. You can use the material usage analysis to find information on the total number of components used to produce a material, the indi vidual components that were affected by the material usage, the planned and actual re quirements quantity, for example. The information structure S026 provides the data for the analysis. The run schedule header analysis enables you to evaluate the key figures from the run schedule header. The information structure S025 provides the data for the analysis. Data from production orders, run schedule headers, and process orders can be evalu ated in the product cost analysis. Both planned and actual costs for production and process orders are updated to product costs. The planned costs are updated at the ex act time of release, the actual costs are updated at the point of completion confirmations and goods issues. The information structure S027 provides the data for the analy sis. 470 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs Key Feature Use Reporting point statistics analysis You can use this analysis to evaluate the data from repetitive planning. Here, the num ber of units for so-called reporting points (comparable with events in the production or der) are determined and updated. The data required for the analysis is provided by the confirmed quantities and the confirmed scrap for the reporting point, which are up dated in information structure S028. Kanban analysis The Kanban standard analysis is based on the data from the Kanban component that is updated to the information structure S029. Exception analysis You can display exceptions that you have defined using the Early Warning System. The exception analysis acts as a filter. That is, only the exceptional situations are displayed providing you with timely system support in the detection and correction of undesirable situations. 5.4.4 Manufacturing Execution for Process Industries 5.4.4.1 Production Execution Business Background This capability enables you to make all the necessary preparations required for production, to coordinate the exchange of data relevant to production, and to document production progress. It is typically performed by the production operator and includes the following tasks: Material staging before production starts. Reporting goods withdrawals. Processing time tickets for a production order or a process order. Entering the goods receipt information for the order on completion of the product. Executing planned manual production steps. Documenting and logging production information. SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs PUBLIC 471 Key Features The following features are available: Key Feature Use Electronic records You can use electronic records to evaluate the logs that can be written for changes in database table content. These logs are stored in database table DBTABLOG. You can also display change documents and logs of long text changes. Electronic records are part of the SAP functionality that supports le gal compliance in the regulated environment (for example, in the production of active ingredients and pharmaceuticals). Electronic batch record You can use the functionality of electronic batch record (EBR) if you work in a regulated environment (production of active ingredients, pharmaceuticals, and so on). The content of the EBR is stored in optical archives (using SAP Ar chiveLink technology). EBR content is revisited during external audits. The content has to be available for 10 years on average. Material identification/reconciliation (proc You can use material identification to identify and verify the ingredients at the ess industry) production line. You can use material reconciliation to analyze and verify ingredients at the end of a production process. It enables you to compare the material quantity that actually flowed in with the planned quantity or the quantity of the material pro duced. You can also display other information regarding the ingredients using the movement types. Reconciliation of the ingredients can ensure that there are no discrepancies outside of the valid range in the relationship between the input and yield. Process messages When a manufacturing order is carried out, actual process data is needed that documents the process and is available for further processing in the system and in external function modules such as process control systems. You can use this feature to send actual data from process control to predefined mes sage destinations. Depending on the destination type, various business trans actions are triggered in this way in the SAP S/4HANA system or in an external system and data is reported. Control recipes (process industry) Control instructions (discrete manufactur ing) Using control recipes/instructions, you transfer control data from the manu facturing order to process control. The information contained in a control rec ipe/instruction and the destination to which it is sent are user-defined. Process operator cockpits (process indus try) You can use this feature to link various elements of your company's process control systems as well as to monitor production execution processes. Proc ess operator cockpits provide a single view to the operator. They can be con figured for specific tasks or work groups. In one interactive screen, you can in clude elements such as a toolbar with shortcuts to various operations, a proc ess instruction sheet, and a view of a process control system. 472 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs Key Feature Use Process instruction sheets (process indus try) You can use process instruction sheets (PI sheets) to exchange data between the partially or completely manually operated production level and the sys tem. In manually operated production lines, this usually involves a process op erator who uses the PI sheet to transfer production-relevant actual data to the system and receives data from the system. You can describe the entire production process of a product or only part of it in a PI sheet. If the PI sheet only represents part of the production process, you usually need several PI sheets to manufacture a product. You can, for example, define control and picking information for the individual production steps in the PI sheets. The PI sheet is used to inform the process operator about the individual production steps that need to be performed. The process operator can interactively maintain the PI sheet according to the phase sequence. In addition to control information, the PI sheet can contain input fields and pushbuttons. You can, for example, define fields to be filled by the process op erator with the quantity of material components consumed for a phase. The material withdrawals must then be posted as goods issues in inventory man agement. You can use process messages to carry out this function automati cally. Work instructions (discrete manufactur ing) You can use electronic work instructions that represent the result of control in structions which are sent to your machine operator. The content is displayed as text on the screen. The instructions describe how and in which sequence a product is manufactured and can be processed on the screen. You can enter, confirm, report, or complete data interactively. Work instructions thus facili tate communication between the system and your machine operator on pro duction lines that are operated manually (either fully or partially). Production campaign (process industry) You can group planned orders and process orders to produce a certain amount of a material over a certain period of time. This is done in an uninter rupted sequence on one production line. The aims of production campaigns are to: Reduce costs achieved by grouping sequences of identical production charges and thus carrying out more efficient setup and clean-out proc esses which can be very costly. Increase product quality in cases where the desired quality level is ach ieved gradually in the production process as opposed to immediately from the first batch. Achieve more exact settlement resulting from clear distribution of cam paign fixed costs (setup, clean-out, and tear down costs) to the orders in volved. SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs PUBLIC 473 5.4.4.2 Manufacturing Analytics Business Background The Shop Floor Information System is part of the Logistics Information System that you can use to analyze manufacturing data. Key Features The following standard analyses are available in the Shop Floor Information System: Key Feature Work center analysis Operation analysis Material analysis Production order analysis Material usage analysis Run schedule header analysis Product costs analysis Use You can use the work center standard analysis to evaluate work center data. The infor mation structure S024 provides the data for the analysis. In the standard operation analysis you can evaluate the data from the operation. The information structure S022 provides the data for the analysis. The material standard analysis allows you to evaluate the data for material. The infor mation structure S023 provides the data for the analysis. In this analysis you can evaluate the data for production orders. The information struc ture S021 provides the data for the analysis. In the material usage analysis, you can analyze data from the production orders, run schedule headers, and process orders. You can use the material usage analysis to find information on the total number of components used to produce a material, the indi vidual components that were affected by the material usage, the planned and actual re quirements quantity, for example. The information structure S026 provides the data for the analysis. The run schedule header analysis enables you to evaluate the key figures from the run schedule header. The information structure S025 provides the data for the analysis. Data from production orders, run schedule headers, and process orders can be evalu ated in the product cost analysis. Both planned and actual costs for production and process orders are updated to product costs. The planned costs are updated at the ex act time of release, the actual costs are updated at the point of completion confirmations and goods issues. The information structure S027 provides the data for the analy sis. 474 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs Key Feature Use Reporting point statistics analysis You can use this analysis to evaluate the data from repetitive planning. Here, the num ber of units for so-called reporting points (comparable with events in the production or der) are determined and updated. The data required for the analysis is provided by the confirmed quantities and the confirmed scrap for the reporting point, which are up dated in information structure S028. Kanban analysis The Kanban standard analysis is based on the data from the Kanban component that is updated to the information structure S029. Exception analysis You can display exceptions that you have defined using the Early Warning System. The exception analysis acts as a filter. That is, only the exceptional situations are displayed providing you with timely system support in the detection and correction of undesirable situations. 5.5 R&D / Engineering 5.5.1 Enterprise Portfolio and Project Management 5.5.1.1 Project Logistics and Financial Control Business Background This function provides special features that help in the logistics execution and financial aspects of a project. SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs PUBLIC 475 Key Features The following table explains the key features available: Key Feature Special Maintenance Functions and Project Planning Board Special Date Planning Functions Use You can maintain the structures for your project. A clear project structure is the foundation of successful project planning, monitoring, and control. There are several functions available for creating and editing WBS elements and net works. Special maintenance transactions Network Structure Graphic In the network structure graphic you have the functionality for editing ex isting networks, such as inserting new activities or creating new relation ships. Hierarchy Graphic The hierarchy graphic acts as a quick and easy way to create and edit WBS elements. You can change the project hierarchy by creating or insert ing WBS elements, or move these around in the hierarchy. Project Planning Board The project planning board allows integrated processing of your project, giving you a graphic overview of the project objects. You can create, edit and evaluate the data for a project. The Gantt chart is the basis of the project planning board. The project planning board consists of a table area and a graphic area. It displays the hierarchical structure of the project and the corresponding dates. In project scheduling you can schedule the project with all assigned activi ties, as in WBS scheduling. Additionally, you can decide whether just net works are scheduled or whether service and maintenance orders are also scheduled. You enter dates in the work breakdown structures and individual networks. You can check and change them in all stages of a project. Scheduling de termines the earliest and latest start and finish dates for carrying out ac tivities in the network and calculates the required capacity requirements as well as the slack time or "floats". You can change basic and forecast dates. Basic dates are the dates that have a binding character for time scheduling and for other related areas such as capacity planning. Forecast dates are dates that you expect based on a more detailed planning or on changes during the course of the project. You can enter basic and forecast dates for WBS elements and ac tivities. In networks, you can also forecast values for the work as well as for the dates. 476 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs Key Feature Simulation Versions Project Texts Production Resources and Tools Workforce Planning Claim Management Progress Tracking Use When you are planning complex projects, it is often necessary to simulate and save changes to a project, without affecting the operative project. To do so, you use simulation versions that can be changed, costed and scheduled. You can create a new simulation versions for a project by either transferring data from an existing operative project or completely independently, for in stance in the quotation phase of a project. You use this to maintain and display project texts for WBS elements and net work activities. You can edit project texts either in the Project text catalog or during project maintenance. Unlike machines and fixed assets, production resources and tools (PRTs) are movable operating resources that are required to perform an activity and can be used repeatedly. For example, PRTs include documents, engi neering drawings, jigs and fixtures, and measurement instruments. You can maintain PRTs for network activities using the Special Mainte nance transactions for networks. You use this to distribute work in internally processed activities of a project to personnel resources according to periods. The personnel resources that you can assign to activities are persons , positions , and organizational units in hu man resources (HR). You can carry out workforce planning with a project view or a work center view, depending on your responsibilities. In reporting you can analyze workforce planning from project, work center, and personnel resource views. When you detect a variance from your project plan, you create a claim in Project System. The Project System supports Claim Management using a noti fication type called claim. You use these notifications to document variances from your project plan, name the person responsible, and initiate follow-up ac tivities. The following are among the points you enter in the claim: Cause of the variance Person or group responsible Costs arising from the variance Actions and tasks to be initiated because of the variance The integration of unit costing with the claim and the link to workflow functions ensure efficient Claim Management execution. You use this to monitor the progress of material components in PS based on events and dates. By tracking events that have been defined in Customizing for Progress Tracking or in the progress tracking function itself, the user gains im proved control over the progress of network components. SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs PUBLIC 477 Key Feature Use Special project reporting functions This allows you to execute reports for personnel cost planning. You can use this to obtain an overview of how your projects are progressing. You can compare planned and actual costs, planned and actual work, and ba sic start and finish dates for the projects selected. You can combine a number of projects with similar characteristics, thereby effecting more efficient project control. This enables you to carry out analyses that allow for clearer costs at higher level, such as project manager level. Structure Information System The Information System gives you an overview of single or multiple objects you select for a specific project, part of a project or across projects. Project-specific archiving tools You use this these tools to archive project structures. You can archive and de lete operative objects in PS such as work breakdown structures and networks. Financial planning and control for projectspecific purposes You can agree on a transfer price for the rendering of a particular service between two WBS elements, display, and change the agreement. You can calculate the sales price for a customer inquiry based on project planned costs and save your results in a document. You can also create a quotation, based on a sales pricing. Easy cost planning enables you to quickly calculate planned costs for WBS elements. This is useful while carrying out project processing on cost con trolling and preliminary costing for complex projects. You can use the forecast workbench to create cost forecasts manually. You can save different versions of the forecasts and then compare the various versions. Project-oriented procurement This is used to consolidate information from the procurement process from a variety of applications that can be configured by the user. You can process information from the procurement process for objects in the Project System, and execute individual procurement functions. 5.5.2 Product Safety and Stewardship 5.5.2.1 Product Marketability and Chemical Compliance 478 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs 5.5.2.1.1 Manage Product Compliance for Discrete Industries Note Please note, that for customers using SAP S/4HANA Cloud, private edition, features mentioned in this chapter might be unavailable, restricted and/or might require a separate license. For further information on SAP S/4HANA Cloud, private edition, please contact your SAP Account Executive. Business Background Use Product Compliance for Discrete Industries to manage environmental product compliance across your organization. These features support you to ensure product marketability, brand protection, and to reduce compliance costs. They enable you to manage regulatory requirements based on substance lists and to manage compliance assessments of your product portfolio. Additionally, they support compliance collaboration processes with suppliers and the ability to embed compliance controls into business processes, such as engineering, manufacturing, purchasing and sales. Key Features The following table explains the key features available: Key Features Manage regulatory list revisions Manage compliance assessment processes Use You can manage substance-related regulatory list revisions based on legislation, industry standards, and customer or corporate-specific requirements. These regulatory list revi sions are the basis for the compliance requirements that your products have to meet. You can prepare, create and use new regulatory list revisions, as well as updates of existing regulatory list revisions, such as EU REACH-SVHC or EU RoHS. The system supports you with compliance assessment proc esses for products, components and basic materials. You can start or request the initial assessment of a product man ually or automatically. You can assign and determine the rel evant compliance requirements for your product. Based on your assignments, the system carries out compliance checks thus supporting you to fulfill compliance require ments relevant for your products. When finalizing a compli ance assessment, documents can be generated by the sys tem to answer customer requests or for internal use. SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs PUBLIC 479 Key Features Embed controls into key business processes Stay compliant within change management Monitor and explore compliance Use The system supports you with compliance assessment proc esses for products, components and basic materials. You can start or request the initial assessment of a product man ually or automatically. You can assign and determine the rel evant compliance requirements for your product. Based on your assignments, the system carries out compliance checks thus supporting you to fulfill compliance require ments relevant for your products. When finalizing a compli ance assessment, documents can be generated by the sys tem to answer customer requests or for internal use. If a compliance relevant change occurs, such as a BOM change or a change in the material supplier relation, the sys tem supports you to stay compliant by carrying out compli ance checks. The system supports you to identify compliance assess ments that are in process for your products. Additionally, you can explore the compliance status of your products and components. 5.5.2.1.2 Substance Volume Tracking Note Please note, that for customers using SAP S/4HANA Cloud, private edition, features mentioned in this chapter might be unavailable, restricted and/or might require a separate license. For further information on SAP S/4HANA Cloud, private edition, please contact your SAP Account Executive. Business Background This process helps you to track and record the quantities of regulated substances in your company that are purchased, imported, produced, sold, or exported. If a limit value specified in regulations is reached or exceeded, the system issues a warning. You can use the data for required reporting to authorities. 480 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs Key Features The following key features are supported: Key Features Use System preparation for substance volume tracking You define materials that are relevant for substance volume tracking. You enter one or more quantity limits for sustainability data, and define the threshold that triggers a system warning. Daily monitoring of tracked substances You display the current totaled quantities of the tracked sub stances. You receive information about which substances are soon to reach a quantity limit, or, about those which have already ex ceeded their limit. Integration of substance volume tracking into business proc Substance volume tracking is integrated into and visible in esses other business processes, such as purchasing, manufactur ing and sales. Report definition for substance volume tracking You define layouts for your reports for substance volume tracking. You specify how the system collects data. You define the steps that need to be carried out for releasing and sending your reports. You also define if versioning for your reports is required, so that changes can only be made within a new version. Report creation for substance volume tracking You can create reports for substance volume tracking in sev eral languages by using the concept of phrases. When a monitoring period, such as a calendar year, has ex pired and all data is available, you can trigger report genera tion. Report publishing for substance volume tracking Once reports have been released, you can send the report to relevant authorities. 5.5.2.2 Dangerous Goods Management Note Please note, that for customers using SAP S/4HANA Cloud, private edition, features mentioned in this chapter might be unavailable, restricted and/or might require a separate license. For further information on SAP S/4HANA Cloud, private edition, please contact your SAP Account Executive. SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs PUBLIC 481 Business Background This process enables you to manage all data, which is needed to classify and process dangerous goods in the logistics chain according to dangerous goods regulations. Key Features The following key features are supported: Key Features Use Dangerous goods classification You classify products and materials according to dangerous goods regulations. The classified dangerous goods are the basis for dangerous goods processing and document gener ation in the logistics chain. Dangerous goods processing You maintain supplementary dangerous goods relevant data; this is then provided together with classification data for document generation. Integration of dangerous goods processing within business processes Dangerous goods processing, for example checks, are inte grated into and visible in other business processes, such as sales order and delivery. Checks are possible, for example, on modes of transport and mixed loading, as well as routing management. Document template definition You define layouts. You specify how the system collects data. 5.5.2.3 Safety Data Sheet and Label Management 5.5.2.3.1 Safety Data Sheet Management Note Please note, that for customers using SAP S/4HANA Cloud, private edition, features mentioned in this chapter might be unavailable, restricted and/or might require a separate license. For further information on SAP S/4HANA Cloud, private edition, please contact your SAP Account Executive. 482 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs Business Background This process enables you to manage all data, which is needed to create and send safety data sheets (SDS) according to chemical regulations and requirements. Key Features The following features are available: Key Features Preparation of safety data sheet creation in different lan guages Data management for safety data sheets Safety data sheet definition using templates Use You need to provide safety data sheets in several languages according to regulatory requirements. By using the concept of phrases, you are able to manage data efficiently for different languages. You can define a single layout for safety data sheets that in cludes country/region-specific data. Safety data sheets can be printed in multiple languages using the same set of data. Once you have managed hazardous substances and related data that fall under different regulations, the system uses this data to create all defined safety data sheets automati cally. The system supports you by determining and providing as much data as possible that is relevant for safety data sheets. You can exchange data electronically within the logistics chain. You define layouts for safety data sheets using templates. You specify how the system collects data. You define the steps that need to be carried out for releasing and sending safety data sheets. You also define versioning for safety data sheets, so that changes to safety data sheets can only be made within a new version. SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs PUBLIC 483 Key Features Safety data sheet publishing Use Send safety data sheets: You can send these to your custom ers and to relevant authorities electronically. The automatic process can be integrated into the sales process. Updated versions of safety data sheets can be distributed automati cally. Display safety data sheets: You can view safety data sheets that provide information required in different business proc esses. 5.5.2.3.2 Global Label Management Note Please note, that for customers using SAP S/4HANA Cloud, private edition, features mentioned in this chapter might be unavailable, restricted and/or might require a separate license. For further information on SAP S/4HANA Cloud, private edition, please contact your SAP Account Executive. Business Background You use Global Label Management during the planning, creation and printing phases of labels. It is a centrally integrated scenario-based solution to manage all labeling requirements worldwide. Key Features The following features support you with this process: Key Features Label creation in different languages Use You need to provide your customers with labels in several languages according to regulatory or customer-specific re quirements. By using the concept of phrases, you are able to manage data efficiently for different languages. Together with material details, you can manage relevant la bel data, such as the packaging hierarchy. 484 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs Key Features Label definition using templates Integration into business processes Label preview, validation and printing Data and activity log Use You use templates to define layouts for labels of different sizes using the same set of data. Several languages can be printed on the same label. You specify how the system collects data. You define the steps that need to be carried out for releasing your labels. You also define if versioning for your labels is required, so that changes can only be made within a new version. Global label management is integrated into several business processes, such as make-to-stock, make-to-order, ship ment, and receipt of purchase order. You can use the label check to simulate label output before printing. Automatic printing can be determined as part of logistics processes, such as process order or delivery in sales. In ad dition to automatic label printing, you can also print labels manually. Changes to label data, user and printing activities are logged in the system. 5.5.3 Product Development for Discrete Industries 5.5.3.1 Engineering Record Business Background The engineering change process is an important process in product development. It helps to initiate, administer, review, approve, and execute product changes through a controlled process. SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs PUBLIC 485 Key Features The following table explains the key features available: Key Feature Engineering record handling Use You can plan your engineering changes in engineering records, which help to group all kinds of objects to then guide them through a controlled engineering change process. 5.6 Sales 5.6.1 SD Analytics Based on Logistics Information System Business Background You can use Sales and Distribution (SD) analytics based on the logistics information system to analyze sales information. Key Features The following table explains the key features available: Key Feature Customer analysis Material analysis Sales organization analysis Shipping point analysis Sales employee analysis Use You can access data directly from the customer statistics. Direct access by customer is possible and is not dependent on the sales organization. You can access specific statistical data that is directly linked to a material. You can use this analysis to determine the quantity of a material sold. You can view data from the perspective of the sales organization. The shipping point analysis is based on data that has been updated from the creation of the delivery note. You can determine who delivers, in what way (for example, by freight forwarding), and the route. You can determine the sales volume that a sales employee has achieved for a specific customer. 486 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs Key Feature Sales office analysis Variant configuration analysis Exception analysis analysis Use You can determine the sales volume that a sales group has achieved in a divi sion. You can evaluate data for configurable materials. You can display exceptions that you have defined using the early warning sys tem. Technical Information Type of Component Application Component Software Component Component LO-LIS S4CORE Related Information Sales Monitoring and Analytics [page 113] 5.6.2 SD Rebate Processing Business Background You can use Sales and Distribution (SD) rebate processing to grant a price discount to your customer. SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs PUBLIC 487 Key Features The following table explains the key features available: Key Feature Use Work with rebate agreements created in SAP ERP You can work with previously existing rebate agreements that you have created in SAP ERP. You can only process these existing rebate agreements until the end of the validity date of the rebate agreement. Afterwards, you must close these rebate agreements by final settlement. You cannot create new rebate agreements using SD rebate processing in SAP S/4HANA. Creating rebate agreements using cus tomer trade promotion in SAP CRM If you have integrated your customer trade promotion scenario in SAP CRM with SAP S/4HANA, you can use SD rebate processing. That is, you can con tinue to create rebate agreements through the customer trade promotion functionality in SAP CRM. Technical Information Type of Component Application Component Software Component Component SD-BIL-RB S4CORE Related Information Settlement Management [page 41] 5.6.3 Empties Management Business Background Empties Management covers the business processes for procurement of returnable packaging, whose administration and deposit requirements you want to map. You can also manage transport equipment using this component. 488 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs You can use Empties Management to handle the procurement process for empties (procurement, returns) alongside suppliers and wholesalers. You can monitor and keep track of the movement of the empties between suppliers, companies and customers. Empties Management covers the following tasks: Entering empties data Processing empties data Evaluating empties accounts and reports Outputting empties statistics Key Features The following features are available: Key Feature Use Tracking functions for empties This feature allows you to manage empties in the document items for move ments involving full products in the procurement and sales process. This ena bles constant control of the empties flow outside your company. Bills of material for empties This feature allows you to use sales bill of materials (type 5, alternative 1) to au tomatically assign the appropriate empties (such as bottles, crates) to a full product (such as beer). Value-based grouping of empties This feature allows you to group together bottles (plastic, glass, and so on) that are levied with the same deposit value for listings in Sales (SD). Stock-specific empties management This feature allows you to manage empties stocks for each customer in Sales (SD) on a value basis or on a quantity basis, and manage deposits on empties. Management of empties stock accounts This feature allows you to manage the customer's empties stock accounts. When the full product is delivered to the customer, the system posts the deliv ered tied empties to the relevant empties account (empties update). To im prove the clarity of the workflows, you can manage the empties in circulation as stock on a quantity basis, but non-valuated. Empties in Production This feature allows you to manage new or free empties as a part of the produc tion process (for example, the filling process in the beverage industry). At the end of this process, the empties are part of the finished product. They are then referred to as tied empties. Warehouse Management for Empties This feature allows you to manage bought and free empties and empties from your own production on a quantity basis and on a value basis. SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs PUBLIC 489 5.7 Service 5.7.1 Service Master Data Management 5.7.1.1 Technical Assets, Structures, History Business Background Technical assets and their substructures serve as a reference on which a service is performed. At the time of initiating a service, the predefined technical master record can be referenced. This substantially shortens planning and preparation time when a service is required. This thereby reduces costs. Key Features The following table explains the key features available: Key Feature Maintain Customer Installed Base Phase-In Phase-Out Equipment Scrap Assets Analyze Damages Use You can provide precise information and management on in stalled customer assets, equipment, location and substruc tures of the customer installed base. You can maintain mas ter data that is required when you carry out maintenance on a piece of equipment. You can transfer assets from their current assignment, ei ther to be reused by another department or company, or to be disposed of completely. Once a piece of equipment has been phased out of service, it can be scrapped. You can remove it from the customer asset register. You can analyze reported damages, sorted by damage co des, cause codes and activities. 5.7.1.2 Service Task Lists and Catalogs Business Background This process helps you to define the scope of work and effort required for inspections, services, and planned repairs. It helps you to standardize recurring work sequences and to plan these effectively with required 490 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs resources, tools and materials. Single or several tasks offered to customers are customer-facing service offerings. Key Features The following table explains the key features available: Key Feature Standardize Tasks Service Catalogs and Products Use You can define the scope of work and effort required for in spection, service, and planned repairs. You can describe a sequence of individual activities which can be used for a spot-service, or repeatedly within a com pany. You can reduce the service effort by using standardized work sequence changes, for example as a result of new legal regu lations. You can manage service products as sellable and billable. These services are standardized and offered in service cata logs. 5.7.1.3 Service Maintenance Plan and Event Scheduling Business Background This process helps you to specify the service scope and maintenance cycles for triggering service events. Depending on the scope of services and calculated scheduled calls, expected costs can be calculated for a specific time period. Key Features The following table explains the key feature available: Key Feature Preventive and Predictive Activities Use You can plan preventive and predictive activities, based on time and counter. You can schedule individual service tasks and allocate required resources, tools and materials. SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs PUBLIC 491 5.7.2 Service Management 5.7.2.1 Service Initiation Business Background This process helps you to register a customer request for service. the logging service requests serves as a central communication channel between the requestor and the service provider. Key Features The following table explains the key feature available: Key Feature Manage Incoming Service and Support Requests Use You can manage incoming service and support requests. You can identify customers with their installed base and identify customer service contracts and warranty entitle ments. You can use a centralized system to log and streamline proc esses, including the monitoring and follow-up of customer needs and requests. The initial service request serves as a central customer reference for further updates, inquiries and progress of service fulfillment and delivery. 5.7.2.2 Service Planning and Scheduling Business Background This process helps you to carry out the initial screening and collecting of information for incoming service requests. This includes relevant service contracts and warranty entitlements. 492 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs Key Features The following table explains the key features available: Key Feature Identify Service Issues Define Follow-Up Activities Use You can use incoming service requests to identify service is sues that need to be resolved. The following help you in plan ning and scheduling processes: Customer Asset Management: You can propose data from customer asset management , such as work cen ters, and access information regarding their skills and competencies. Work Order Management: You can process notifications, plan resources, integrate catalogs and materials, and initiate the update technical documents and draw ings. You define follow-up activities with a variety of options, such as A simple answer to a support request The delivery of a service where labor and service parts are required Logistic activities, such as managing returns 5.7.2.3 Service Execution and Delivery Business Background Service organizations require access to up-to-date information about service history and equipment configuration to provide the appropriate service. This process helps you to optimize, streamline and carry out your service deliveries. SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs PUBLIC 493 Key Features The following table explains the key features available: Key Feature Job Lists Confirmation Lists Use These support you in processing and confirming service jobs. They provide information on jobs to be carried out, as well as crucial information, such as the urgency, start and end dates, and assigned work center. You can configure job lists so that they reflect how work is or ganized in your particular organization. You can record counter readings, process notifications and work orders, and the installation and dismantling of equip ment. These contain all planned service jobs that can be con firmed. You can check planned job data. You can record the time spent carrying out the job, the re quired materials used, enter a user-defined text, and, if nec essary, create an activity report. It sets the notification to technically completed, stores the time confirmation, and posts a goods issue for the order. 5.7.2.4 Service Control Business Background Services have different levels of complexity. Service personnel require a flexible way to support and control the delivery of services from a financial and logistics perspective. Key Features The following table explains the key features available: Key Feature Service Request Use You can create, manage, monitor and complete the entire service process using a service request. 494 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs Key Feature Service Order Service Fulfillment Support Use You can use service orders to deliver services You can also record the internal and external resources re quired, the costs collected, customer billing or internal cost settlement in the service order. You can use carry out large projects, process extensive budget planning data, and schedule complex services over a lengthy time period. 5.7.2.5 Service Billing and Settlement Business Background Service organizations require billing data from various sources to enable accurate and timely billing of services. They also need to track service revenue. Key Features The following table explains the key features available: Key Feature Debit Memo Processing Credit Memo Processing Use You use this feature to apply a debit to a customer account, either by creating a debit memo request, or directly by creat ing a debit memo with reference to a billing document. A debit memo request is then created with the amount to be debited. The debit memo is sent to the customer and posted to accounting. You can use this feature to apply a credit to a customer ac count, either by creating a credit memo request, or by creat ing a credit memo with reference to a billing document. The credit memo is sent to the customer and posted to ac counting. SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs PUBLIC 495 Key Feature Billing Document Processing Invoice Correction Processing Use You can create billing documents, for example invoices for customers from items in the billing due list. When you post billing documents, the system forwards these to accounts receivable and triggers the issue of billing documents. You can change or cancel billing documents as needed. You can also create billing documents for retroactive billing. You can setup billing batch execution by scheduling billing creation and output. You can also manage documents blocked for billing. You use this feature to create an invoice correction request if the wrong quantities or prices have been calculated for the customer. The invoice correction request can be automatically blocked by the system until it has been checked. The system calculates the difference between the amount that was originally calculated and the corrected amount for each item. The system creates a credit memo with reference to the in voice correction request. The credit memo is sent to the cus tomer and posted to accounting. 5.7.2.6 Claims, Returns and Refund Managment Business Background This process helps you with the handling of all complaints and returns. It is possible to trigger logistical followup actions, such as inspections of returned materials, resolution of issues and claims, and refunds management. 496 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs Key Features The following table explains the key features available: Key Feature Manage Complaints and Returns Process Warranty Claims Register Warranties Use You can streamline complaints and returns management to improve tracking and to help service organizations process requests faster. You can process large numbers of warranty claims automati cally. You can trigger logistics follow-up actions, such as an in spection of a returned material, resolution of issues, and claims refund management. You can create warranties and assign technical objects to these warranties. 5.7.3 Service Parts Management 5.7.3.1 Service Parts Warehousing Business Background Automatic processes for full control of warehouse operations supports companies supports companies to improve asset utilization, to increase throughput and safety, and to ensure on-time compliant and accurate order fulfillment. Key Feature The following table explains the key features available: Key Feature Manage Inventory Create Reservations Use You can manage the stock stored in your warehouse. You can evaluate and display documents and stock information. You can manage and create reservations of stock at plant level, storage location level, or batch level to ensure the avail ability of materials when they are required. SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs PUBLIC 497 Key Feature Distribute Stock Create Reports Use You can fully automate warehouse and distribution opera tions. These include: inbound processing, receipt confirmation, cross-docking, outbound processing, warehouse and storage management, and physical inventory management. You can create reports to evaluate and display material and accounting documents. 5.7.3.2 Service Parts Fulfillment Business Background Companies need to be able to monitor service parts, and keep them ready for withdrawal at a later date and for a specific purpose. This process simplifies and accelerates goods movement processes. Key Features The following table explains the key features available: Key Feature Monitor Service Parts Reserve Service Parts Use You can monitor location and quantities of service parts. You can reserve service parts that will be required for a fu ture service delivery. The reserved service parts are taken into account within the material requirement planning proc ess. In this way, materials can be procured in time if they are out of stock. 5.7.4 Service Agreement Management 5.7.4.1 Contract Management Business Background This process facilitates consistency to ensure superior support and services. Contract management helps companies create, manage and automate service contracts such as billing plans, price agreements and 498 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs conditions. This process enables you to process service deliveries with automatic checks for contractual agreements. Key Features The following table explains the key features available: Key Feature Use Automatic Service Contract Processing Use You can create, manage and automate processing of service contracts, such as billing plans, price agreements and condi tions. You can reference service contracts in subsequent service processes. You can create service plans that enable contractual preven tive service and maintenance strategies based on time and performance. 5.8 Sourcing and Procurement 5.8.1 Subsequent Settlement Business Background Suppliers may agree to immediate or retrospective reductions in the purchase price on condition that a certain quantity or value of goods is bought, that payment is effected promptly, or that promotional activities are carried out. Conditions of purchase involving retrospective supplier payments may also be defined for situations in which the supplier bears all or part of certain costs initially incurred by a customer, for example, costs of disposal of used packaging. Subsequent settlement involves calculating and accounting for the amounts due in accordance with the conditions agreed between a customer and a supplier at the end of an agreed period. SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs PUBLIC 499 Key Features The following table explains the key features available: Key Feature Use Processing of existing rebate agreements Existing rebate agreements can be processed up until the end of the validity date of the agreement and can then be closed by a final settlement. 5.9 Supply Chain 5.9.1 Efficient Logistics and Order Fulfillment 5.9.1.1 Basic Shipping Business Background Transportation is an essential element in the logistics chain. It effects both incoming and outgoing goods. Effective transportation planning and processing ensures that shipments are dispatched without delay and arrive on schedule. Transportation costs play an essential role in the calculation of the price of a product. It is important to keep these transportation costs to a minimum so that the price of a product remains competitive. Efficient transportation planning and processing helps to keep these costs down. The transportation functions can handle planning and execution for both inbound and outbound processes. Moreover, they enable you to control and monitor the entire transportation process from the planning stage to goods issue at the shipping point (outbound) or vendor location (inbound), through to goods receipt at the customer location or in your own plant. Key Features The following table explains the key features available: Key Feature Use Transportation Planning and Creation of Transportation Documents Transportation planning involves activities that must be performed before the transport leaves the shipping point. These activities include, for example, ac quiring the services of a forwarding agent and specifying the route for the transport. To handle the various forms of transportation (for example, individ ual or collective processing), different types of transportation documents are available. 500 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs Key Feature Transportation Planning List Transportation Execution Direct Store Delivery (Backend) Transportation Cost Processing Tendering for Service Agents Monitoring Use This list contains transportation documents for which planning activities still have to be completed and which match defined selection criteria. You can use the list as a basis for performing transportation planning activities, such as or ganizing a means of transport or scheduling loading activities. You use this feature to complete the formalities involved in getting a transport ready for dispatching to the customer. Tasks in an outbound process include weighing the transports, loading, and posting goods issue. At check-in (when a truck arrives on the company's premises) information about the means of transport such as driver details, the weight of the truck, and its arrival time can be recorded. You can store this information in the transportation documents, which can be printed, for example, when the completion status is set. This feature enables you to distribute goods directly to the end customer. In this process, distribution does not take place via a retail company's distribution centers. The Direct Store Delivery (DSD) business process is based on a specific DSD tour scenario, a type of cycle. This tour scenario starts in the distribution cen ter with order processing and the related shipment preparations, followed by physical delivery of the goods to the customer, and ends with system process ing of the tour data in the distribution center. The DSD backend process is the basis for integrating a mobile solution. The mobile solution supports drivers' activities during the shipment process. Alter natively, a paper-based DSD process is also supported. This feature enables you to calculate and settle costs for transportation proc esses. Calculation and settlement of transportation costs is handled in a sepa rate document and allows you to refer to parts of the transportation document for which cost calculation must be carried out. The option to offer transports directly using the Internet provides a useful addi tion to the planning functions in the transportation component. Planners can include forwarding agents who do not use an SAP system in the decision-mak ing process; these forwarding agents can then use their own systems to proc ess the data. A planner can react to the offers made by the forwarding agents and can also supervise the tendering status. The planner receives tendering statistics and can verify the service quality of a service agent. To be able to plan and execute the transportation activities, worklists for trans portation documents are available. SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs PUBLIC 501 5.9.1.2 Warehouse Management Business Background Warehouse Management provides you support with and real-time transparency into managing and processing material movements flexibly for optimized warehouse operations. Key Features The following logistic features are available to support you in whatever warehouse role you may have: Key Feature Inventory Management Inbound Processing Outbound Processing Internal Warehouse Movements Physical Inventory Reporting Use Manage material quantities in different stock categories on storage bin level Create and confirm putaway transport orders for the putaway of delivered or received materials Create and confirm picking orders for picking quantities of material for deliver ies or production supply Create and confirm orders for execution of warehouse internal movement of goods Plan, conduct and confirm count of stock in warehouse Provide actual stock and goods movement lists 5.9.1.3 Direct Store Delivery (Backend) Business Background Direct Store Delivery (DSD) is a business process that is used in the consumer products industry to distribute goods directly to the end customer. The backend is the basis for integrating a mobile solution. The mobile solution supports drivers' activities during the shipment process. Direct Store Delivery Backend (DSD backend) covers the following tasks: Make materials available to stores and customers quickly (for example, food, drink, flowers, newspapers) Directly influence end customers, as the consumer products manufacturer 502 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs Optimize process settlement in sales and in distribution Optimize logistics costs using efficient visit planning Key Features The following features are available: Key Feature Master Data Visit Control Transportation Planning Output Control Use This feature allows to maintain specific data for the Direct Store Delivery proc ess that remains unchanged over a considerable period of time and contains information that is required repeatedly in the same format. This feature allows to use visit control to plan periodically recurring customer visits carried out by drivers (different roles) on their tours, within a logistics process. Visit control consists of a strategic part (visit plans) and an opera tional part (visit lists). In visit plans, you specify, among other things, which customers are to receive deliveries or visits in which sequence, and how often. You can also specify the drivers and vehicles to be used for a shipment. The system creates visit lists for set days from visit plans. You can process visit lists manually and can therefore react to sudden or unique events. During dy namic transportation planning, the system uses visit lists as the basis for creat ing shipments. This feature allows to plan and organize tours with the aim of incorporating due deliveries into shipments: Incorporated manually into a single shipment using shipment transac tions Incorporated into a single shipment or into several shipments by the sys tem using dynamic transportation planning This feature enables you to automatically group together tour data for output control. SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs PUBLIC 503 Key Feature Route Accounting Use Route Accounting begins after a vehicle is loaded and ends once all tour trans actions have been posted. This feature supports you to manage delivery and route sales: Specific information and documents for each tour Entry of outgoing and incoming control data Entry of information and documents that drivers (with different roles) hand in after their tour to the settlement office Settlement of documents and data entered with the data available in the system Settlement of documents and data entered in the system You can use Route Accounting without using handhelds. Drivers enter tour ac tivities by hand in the relevant documents. You can transfer this handwritten tour data subsequently in the settlement cockpit in the system. You use the settlement cockpit to display and correct tour data, and to enter additional data manually. Direct Store Delivery Route Accounting is an offline solution. This means that data is exchanged from a handheld to the system at the start and end of a tour. It is not possible to transfer data during a tour. 5.10 Industries 5.10.1 Defense and Security 5.10.1.1 Military Planning and Operations 5.10.1.1.1 Force Generation Note Please note, that for customers using SAP S/4HANA Cloud, private edition, features mentioned in this chapter might be unavailable, restricted and/or might require a separate license. For further information on SAP S/4HANA Cloud, private edition, please contact your SAP Account Executive. Business Background Build forces with a single, integrated platform for managing personnel, material, and financial data in a table of organization and equipment (TOE). With integrated, real-time information, force planners can quickly generate 504 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs forces for any domestic, administrative, or wartime activity based on the capabilities of their personnel, equipment, and budget. Key Features The following table explains the key features available: Key Feature Use Integrate and manage information for a TOE on a single platform Get an overview of the availability, skills, and experience of your force members. Get an overview of the equipment available to you. Organize and manage the capabilities of your force structures Plan, create and then organize your force structures and equipment according to your needs. Manage and develop flexible organizations Use the TOE to get a holistic, up-to-date view your force structures and equipment. Identify available force elements and link them to new structures, or cre ate new force element structures for defense/wartime. Plan personnel staffing Automate processes for matching and securing the right personnel for op erations and exercises. Plan skill set required for the job. Use the TOE to determine which personnel match the skill set. Identify the most suitable candidates based on skill set, experience and availability. Plan material and equipment Plan finances and manage real estate Enable force planners, material management officers and technical officers to plan, assign, and manage equipment efficiently using the TOE. Automate the creation and distribution of your financial data. Mass create and control financial and business information. Integrate this information for strategic and operational decision making. Use real-time analytics to make more informed decisions and have accu rate budgeting for your force structures. Improve insight into operation readiness Get an overview of your operational readiness using the TOE. 5.10.1.1.2 Force Deployment Note Please note, that for customers using SAP S/4HANA Cloud, private edition, features mentioned in this chapter might be unavailable, restricted and/or might require a separate license. For further information on SAP S/4HANA Cloud, private edition, please contact your SAP Account Executive. SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs PUBLIC 505 Business Background Force planners need to plan and deploy coordinated military missions. This involves organizational, personnel, material, financial, and budgeting processes for troop relocation, IT system setup, and readiness reporting. Key Features The following table explains the key features available: Key Feature Use Options development: Plan and manage a table of organization Use a single, integrated platform for managing mission-critical informa tion in the table of organization and equipment (TOE). Integrate information on personnel, equipment, infrastructure, and finances. Automate TOE to enable force planners better manage organization and equipment and to get better visibility into force structures, capabilities, and readiness resulting in greater operational agility. Options development: Plan personnel staffing Automate processes for matching and securing the right personnel for op erations and exercises. Plan skill set required for the job. Use the table of organization and equipment to determine which person nel match the skill set. Identify the most suitable candidates based on skill set, experience and availability. Options development: Plan material and equipment staffing Plan and execute supply chain activities and coordinate the supply chain network in the defense organization. Define authorized materials to gain insight into inventory and equipment needs for force structures. Plan, assign and manage materials for operations and exercises in the TOE. Options development: Financial planning and real estate management Automate the creation and distribution of your financial and real estate data for operations and exercises. Plan and allocate budget for different phases of operations and exercises. Control and integrate financial and real estate information for strategic and operational decision making. Plan execution: Relocation Relocate troops in a strategic and cost-effective manner: Get real-time accurate information on troops, equipment and transporta tion. Use information to coordinate the movement of materials and personnel. 506 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs Key Feature Plan execution: Operational readiness Use Improve insight into personnel and materials readiness for operations and ex ercises: Get a holistic view of the readiness across various force structures. Quickly and accurately plan operations and exercises. 5.10.1.2 Military Supply Chain 5.10.1.2.1 Defense Replenishment and Planning Note Please note, that for customers using SAP S/4HANA Cloud, private edition, features mentioned in this chapter might be unavailable, restricted and/or might require a separate license. For further information on SAP S/4HANA Cloud, private edition, please contact your SAP Account Executive. Business Background Plan and execute replenishment of materials and equipment. A military supply chain requires high performance in planning and executing the replenishment of consumable goods and defense equipment. To establish combat readiness, you must simultaneously integrate and automate logistics and fulfillment across your warehousing, transportation, and distribution processes. Collect and analyze the internal demand signals of a defense organization to create and update optimized demand plans. Quickly, accurately, and transparently match the goods demands of agile forces with supplies in a prioritized and multilevel defense supply network to achieve high delivery performance and establish combat readiness of service members. Relocate troops for operations or exercises with specific, flexible, and prioritized supply planning and execution. Manage storage, warehousing, and global inbound and outbound transportation in supply replenishment with increased accuracy, visibility, and performance. 5.10.1.2.1.1 Defense Supply Planning and Execution Note Please note, that for customers using SAP S/4HANA Cloud, private edition, features mentioned in this chapter might be unavailable, restricted and/or might require a separate license. For further information on SAP S/4HANA Cloud, private edition, please contact your SAP Account Executive. SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs PUBLIC 507 Business Background Quickly and efficiently match the goods demands of agile forces with supplies in a prioritized and multilevel defense supply network to achieve high delivery performance and establish combat readiness of service members. Key Features The following table explains the key features available: Defense Supply Planning and Execution Key Feature Use Integrate organizational data, logistic data, and material management data Get an overview of the materials available to you. Remove negative data sources that influence supply data integrity. Defense supply planning Automate planning runs Improve supply planning system and prioritize requirements for provision materials. Match goods demands with supplies to ensure combat readiness. Improve inventory accuracy and increase inventory turnover Equipment planning Plan equipment replenishment for units in armed forces, police, or aid groups to ensure optimized stocking and usage: Determine the source of supply for your equipment. Plan and manage equipment efficiently. Track the loaning of equipment and its return. Initial supply Determine what is required for the initial supply of units in the armed forces, the police, or aid groups: Plan provisions required by each organizational unit Deliver the right provisions, to the right place, at the right time Defense supply operation Process supplies based on prioritized requirements. Plan and manage provisions efficiently. Improve inventory accuracy. Reduce order fulfillment lead time. 508 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs 5.10.1.2.1.2 Defense Relocation Planning and Execution Note Please note, that for customers using SAP S/4HANA Cloud, private edition, features mentioned in this chapter might be unavailable, restricted and/or might require a separate license. For further information on SAP S/4HANA Cloud, private edition, please contact your SAP Account Executive. Business Background The relocation of troops for operations and exercises requires specific, flexible and prioritized supply planning and execution. Key Features The following table explains the key features available: Key Feature Plan relocation Process supplies during the relocation of defense forces Use When relocating an armed force, the police, or aid group, determine what equipment and goods are re quired and where. Optimize the relocation of equipment and consumable goods. Get an overview of what has been approved or already deployed to an organization's location. Consider prioritized goods during supply processing. Efficiently process supplies by utilizing the integration of organizational, logistics and material management data. 5.10.1.2.1.3 Defense Inventory and Movement Management Note Please note, that for customers using SAP S/4HANA Cloud, private edition, features mentioned in this chapter might be unavailable, restricted and/or might require a separate license. For further information on SAP S/4HANA Cloud, private edition, please contact your SAP Account Executive. SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs PUBLIC 509 Business Background Manage storage, warehousing, and global inbound and outbound transportation in supply replenishment with increased accuracy, visibility, and performance. Key Features The following table explains the key features available: Key Feature Use Manage defense inventory and movement Manage inbound and outbound processing of supplies. Enable supply personnel to handle dangerous goods using packing and unpacking functionality. Optimize the processing of supplies for an organizational structure by uti lizing highly-integrated organizational, logistics, and materials manage ment data. Manage defense warehousing Manage both the inbound and outbound warehouse processing activities for armed forces, the police, and aid organizations. Improve supply chain integrity. Streamline data sources in order to ensure more efficient warehouse oper ations. Plan and process defense transportation Optimize transport activities. Plan and manage transport of equipment and spares. Plan and execute relocations within organizations using relocation-spe cific transport handling. 5.10.1.2.2 Defense Equipment Management Note Please note, that for customers using SAP S/4HANA Cloud, private edition, features mentioned in this chapter might be unavailable, restricted and/or might require a separate license. For further information on SAP S/4HANA Cloud, private edition, please contact your SAP Account Executive. 510 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs Business Background Within an organization equipment can be managed and assigned to its personnel based on equipment type, personnel function, and authorization status. Tracking of supply levels as well as equipment status needs to be possible quickly and accurately. Key Features The following table explains the key features available: Key Feature Manage structural equipment Manage functional equipment Manage personal equipment Use Handle requests for and loans of structural equipment, along with their re turn. Assess inventory levels and adjust facility supplies. Get information on detailed equipment levels, equipment deployed to units, and equipment availability. Track functional equipment supplied to authorized personnel. Issue required functional equipment based on assigned and authorized functional equipment status. Plan and execute the return of functional equipment issued to personnel. Issue required personal equipment based on assigned and authorized per sonal equipment status. Track the status of personal equipment and support the return process. Ensure optimized stocking and usage of equipment. 5.10.2 Engineering, Construction, & Operations 5.10.2.1 Equipment and Tools Management Note Please note, that for customers using SAP S/4HANA Cloud, private edition, features mentioned in this chapter might be unavailable, restricted and/or might require a separate license. For further information on SAP S/4HANA Cloud, private edition, please contact your SAP Account Executive. SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs PUBLIC 511 Business Background Equipment and Tools Management (ETM) addresses the requirements of self-performing construction companies, building contractors, and equipment distributors by handling business processes such as planning, processing, and settlement and evaluation of resources (equipment and materials). ETM allows you to deliver equipment and materials to the appropriate locations and to monitor equipment performance and use over time. You can plan deliveries, create and manage requisitions, generate shipping documentation, and track the location and performance of equipment, from acquisition through retirement. With ETM, you can improve the availability and tracking of equipment, manage the increasing administrative workload, and reduce handling and administration costs. You can also introduce flexible prices and account determination, optimize equipment utilization, and improve the visibility of profitability, total cost of ownership, and return on asset and equipment. Key Features The following table explains the key features available: Key Feature Equipment resource management and monitoring Equipment cost settlement Use You use this feature to plan equipment and tools requirements and to plan de liveries, generate shipping documentation, and track the location and perform ance of equipment and tools. You use this feature for flexible price and account determination as well as time-based and consumption-based pricing. 5.10.3 Higher Education and Research 5.10.3.1 Student Information Systems 5.10.3.1.1 Application and Admission Note Please note, that for customers using SAP S/4HANA Cloud, private edition, features mentioned in this chapter might be unavailable, restricted and/or might require a separate license. For further information on SAP S/4HANA Cloud, private edition, please contact your SAP Account Executive. 512 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs Business Background Improve the student application process by enabling students to submit applications online using the Internet Service Request (ISR) framework. The admission decision framework in Student Lifecycle Management guides students through the application procedure for courses they are interested in, and allows them to track the status of their applications, even on mobile devices. This caters to the students' needs, while the educational institution also benefits from a reduction in the amount of time, effort, and money required to run the entire admission process. Key Features Key feature Use Create and manage your admission forms Create and edit forms easily by customizing admission form templates to suit your requirements. Manage your forms flexibly Use a generic form designer to create forms for various processes. Reports for creating standard configuration are also provided. Track students application Integrate your admission process with self-services, ena bling students to track the status of their applications and requests that needs to be fulfilled. Review applications on multiple levels and manage workflow Enable multiple parties to review applications in an auto mated workflow. Manual application processes are also sup ported and can be tracked. 5.10.3.1.2 Curriculum Management Note Please note, that for customers using SAP S/4HANA Cloud, private edition, features mentioned in this chapter might be unavailable, restricted and/or might require a separate license. For further information on SAP S/4HANA Cloud, private edition, please contact your SAP Account Executive. Business Background Curriculum managers can use personnel management data and finance data to create an academic curriculum that is tied to the overall organizational structure of educational institutions, including finances. As a result, they can generate a catalog that ensures all processes run smoothly. They can maintain and manage the SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs PUBLIC 513 programs offered by your university in the program catalog, manage program dates and deadlines in the academic calendars, and map and manage the program rules using rule containers. Key Features Key Feature Manage course or program catalog Create requirements catalog Manage requirements catalog Track degree requirements Use Use course or program catalogs to allow students to book, change, or cancel their course bookings online. You can also specify the requirements that students must meet to com plete the academic programs. Curriculum managers can define both simple and complex requirements for use in different catalogs. They can also specify general requirements in one catalog, while outlining program-specific requirements in separate catalogs. Manage the requirements catalog for admission to a course, or to obtain a degree. Students can run what-if scenarios to view requirements for a program they are considering, including courses eligible for transfer if they were to change programs. 5.10.3.1.3 Grading and Advising Note Please note, that for customers using SAP S/4HANA Cloud, private edition, features mentioned in this chapter might be unavailable, restricted and/or might require a separate license. For further information on SAP S/4HANA Cloud, private edition, please contact your SAP Account Executive. Business Background Monitor grades, course attendance, and other significant data to track a student's progress towards degree or program completion. Faculty members can use integrated grading to record student exam grades based on course-specific grade scales, and they can use course registration processes to verify course attendance. 514 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs Key Features Key Feature View grades Monitor academic progress Academic advisors Maintain Attendance Student Retention Use Students can review exam grades and submit grade-change requests if necessary. They can view final grades and re quest that official copies of transcripts be sent directly to themselves or to third parties. Students can monitor their academic progress and assess their completion status. Create course lists reflecting student degree requirements. Integrated booking capabilities allow students to register for suggested courses. You can also group students according to program. Faculty members can maintain attendance for the courses. Advisors can get a broad view of their students' progress to increase student retention. 5.10.3.1.4 Progression and Graduation Note Please note, that for customers using SAP S/4HANA Cloud, private edition, features mentioned in this chapter might be unavailable, restricted and/or might require a separate license. For further information on SAP S/4HANA Cloud, private edition, please contact your SAP Account Executive. Business Background Administrators can view academic progress indicators, such as a student's grade-point average or the current number of achieved credits, at any point during the enrollment year. SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs PUBLIC 515 Key Features Key Feature Monitor student progress Monitor graduation process Track degree requirements Use Administrators, advisors, and teaching personnel can view a student's progress and measure it against stage-specific re quirements. For example, pre-clinical studies must be com pleted before clinical studies can begin. They can also moni tor student performances using Student and Study Analysis to help students progressing towards graduation. In addi tion, they can receive early warnings which include advanced warnings about underperformance in their students' aca demic progress. Administrators can track applications for graduation and evaluate results of degree audits to support the graduation process. They can also track a student's progression to wards, or completion of, graduation. Students can run `what-if' scenarios to view requirements for a program they are considering, including courses eligi ble for transfer if they were to change programs. 5.10.3.1.5 Student Administration Note Please note, that for customers using SAP S/4HANA Cloud, private edition, features mentioned in this chapter might be unavailable, restricted and/or might require a separate license. For further information on SAP S/4HANA Cloud, private edition, please contact your SAP Account Executive. Business Background Improve the management of personal student data and academic achievements. SAP software offers student services and administrative functions, ranging from student application processing to the development of individual study plans and time tables. Educational institutions can streamline processes across administrative and service areas by integrating course management systems and other third-party applications. 516 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs Key Features Key Feature Manage student data Manage requests Use Maintain and manage student data efficiently. Manage all types of request service for the university and students. For example, leave of absence or request for parttime study 5.10.4 Mill Products 5.10.4.1 Non-Ferrous Metal Processing Business Background The prices of products containing raw materials such as copper, aluminium, lead and silver, which are traded on metal exchanges, can change daily. The non-ferrous metal processing function enables you to consider fluctuating metal prices in the area of pricing of Sales and Purchasing. Key Features Feature Pricing in Sales and Purchasing Invoicing (SD) and Invoice Verification (MM) Use Non-ferrous metal processing enables you to consider the current metal prices quoted on the metal exchanges in pric ing. The most up-to-date rates are stored in the system. In addition, the metal content of each product is defined in the material master data. Various metal price arrangements with the business partners can be defined for each item in Sales or Purchasing. Invoicing considers the latest metal quotation. Missing quo tations trigger an invoice block. SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs PUBLIC 517 5.10.5 Oil & Gas 5.10.5.1 Remote Logistics Management Note Please note, that for customers using SAP S/4HANA Cloud, private edition, features mentioned in this chapter might be unavailable, restricted and/or might require a separate license. For further information on SAP S/4HANA Cloud, private edition, please contact your SAP Account Executive. Business Background Remote Logistics Management (RLM) provides functions for supplying materials from base locations to remote locations (offshore oil platforms). Goods are ordered for the offshore oil platform and are delivered from the onshore plant. If the onshore plant does not have the goods in stock, the material must be ordered from a vendor. After the goods receipt at the onshore plant, the material is packed and shipped to the offshore location. Shipping is carried out in RLM using voyages and shipments. A voyage consists of one or more shipments. The actual material is loaded into containers. Materials can be held at the onshore location, if required, and returns can be created. Returns are used to return defective goods (or goods that are not needed) from the offshore location to the onshore location. For a more detailed description of this function, see below. Key Features The following table explains the key features available: Key Feature Supply Chain Use The Supply Chain function is used to configure the supply of materials accord ing to the handling required (such as whether a material is stocked onshore or offshore). Supply Chain enables you to convert stock transport requisitions ac tivated at the offshore location into purchase requisitions at the base plant. 518 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs Key Feature Goods Receipt Shipping Holding Returns Material Tracking SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs Use During goods receipt of RLM materials to be shipped offshore you can assign goods receipt items to deliveries ready for shipment, or you can accept the de fault assignment proposed by SAP RLM functions. Following the goods receipt of materials destined for offshore locations, RLM creates one or more deliver ies ready for shipment. You receive a list of those with all other goods receipt items in a cross-docking report (presented automatically following the receipt of any RLM materials). You can access RLM packing routines from the crossdocking report so that deliveries created for a goods receipt can be packed into containers. The cross-docking report determines which deliveries have not been packed into a shipment and lists them in a packing screen. Shipping functions provide you with a flexible container master record. This represents the physical container used in the shipment and allows you to de fine shipping containers using alternative data sources, including the PM equipment master, a dedicated RLM container master, and Internet sources (such as Web pages of shipping companies). While working with a shipment you can track a specific container by referencing the flexible container master record. Additional packing routines allow you to use a simple drag-and-drop functions to pack deliveries into containers that are not yet assigned to a ship ment and to transfer packed containers into a shipment once you know the loading requirements. A shipment receipt utility is provided to register the re ceipt of all deliveries in a shipment and to release all the containers in a ship ment for use in future shipments. The Holding function allows materials required offshore to be held onshore un til the user requesting the materials is ready to receive them. Holding is con trolled within the original PM order or transport requisition and will cause any subsequent deliveries to be blocked for shipment. When Holding is removed from the original document, the document is unblocked automatically and can be shipped as required. RLM includes a returns request document that is used to control the return of materials and containers from an offshore location for various reasons, includ ing repair, scrap, waste, return to base stock, and return to supplier. You spec ify the materials to be returned and this generates subsequent SAP docu ments, such as a material transfer or a delivery note. The subsequent docu ments are automatically linked to the returns request, which then serves as a controlling document for all returns activity. RLM provides a configurable reporting tool to allow you to track materials from the initiating document to the final receipt. Tracking is displayed in the form of a document flow in an expandable tree structure so that you can display as much of the flow as required. Status types are displayed for each document flow, depending on the level to which the flow has progressed. Up to five inde pendent status types may be configured for each flow. Standard document flows are provided, but new ones can be created and configured using the navi gation functions provided, or by writing custom navigation functions. PUBLIC 519 5.10.5.2 Service Station Retailing Note Please note, that for customers using SAP S/4HANA Cloud, private edition, features mentioned in this chapter might be unavailable, restricted and/or might require a separate license. For further information on SAP S/4HANA Cloud, private edition, please contact your SAP Account Executive. Business Background Service Station Retailing is part of SAP's Service Station and Convenience Retailing solution, which supports convenience retailing, fuel management, site and headquarters accounting, business analysis and reporting. Key Features The following table explains the key features available: Key Feature Document Base Table Fuels Pricing Use The Document Base Table (DBT) is a repository for data received from external systems and required for document creation. This typically includes transac tion data from POS systems, sales meter readings, and dip readings. To im prove performance and reduce data volume, data can be held in the DBT at an aggregated level. Subsequent processes, such as invoicing, settlement with clearing houses, and stock adjustment use the data held in the DBT. SSR allows you to: Use market price watch as the basis for calculations of target prices for materials sold at the locations within your network Display and maintain target prices at the location level for defined groups of materials and material /service type combinations Simulate margins to check the profitability of new price proposals Change target prices across the whole network or for selected locations Track price changes Send new prices only when there has been a price change, or according to other selection criteria. 520 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs Key Feature Meter Readings Dip Readings Payment Card Handling Settlement and Invoicing Use Oil companies use sales meter readings to calculate fuel sales volumes. The billing process can use this meter reading data to calculate the amount to claim from service station partners for fuel sold at a location. Assign sales meters to locations Assign meters to storage objects Receive meter reading data from locations Maintain meter reading data manually Process errors that occur in the meter reading upload process Use meter reading data to create billing and goods movement documents Oil companies use dip readings to calculate stock levels of bulk fuels within the service station network. You can use this data to correct current stock levels Define storage objects at the business location level Receive dip reading data from locations Maintain dip reading data manually Process errors that occur in the dip reading upload process Use dip reading data to create goods movements Display dip readings and differences between book and physical stock To handle service station sales of products by payment card, SSR allows oil companies to: Settle with clearing houses on behalf of service station partners and with fleet card companies directly. Deduct the amount received from the clearing houses from the amount due from service station partners for sales recorded by meter readings or POS data. Reconcile credit and Eurocheque card transaction data received from service station partners against data received from another external source Oil companies to recover funds from their service station partners follows be low steps: You can invoice the partner for: Sales of oil company-owned products such as fuels A fee charged by the oil company for handling payment card settlement. The partner can be credited for: Sales of all products by credit cards, as the oil company will receive the money directly from the credit card clearing house. Sales of partner-owned products purchased by fleet cards at the service station. Commission on fuels sales SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs PUBLIC 521 5.10.5.3 Six Decimal Pricing Note Please note, that for customers using SAP S/4HANA Cloud, private edition, features mentioned in this chapter might be unavailable, restricted and/or might require a separate license. For further information on SAP S/4HANA Cloud, private edition, please contact your SAP Account Executive. Business Background The solution enables you to define artificial currencies with six decimals after the decimal. By default the SAP system assumes a decimal of 2 digits for any amount field. SAP core supports only 0-5 digits after the decimal for the currencies. Oil & Gas further enhanced this to handle six digits after the decimal . With this you can create condition records for corresponding prices as well as surcharges and discounts with six digits. The system however displays the condition value with only two digits after the decimal, but subtotals can be displayed with six digits after the decimal. This feature is an enhancement in the SAP Oil & Gas system and is used in the following areas : Currencies in condition types used in Sales and Distribution (SD) or in Purchasing (MM). Currencies used for quotations, surcharges, or rates in Formula & Average pricing. 5.10.5.4 Stock Projection Worksheet Note Please note, that for customers using SAP S/4HANA Cloud, private edition, features mentioned in this chapter might be unavailable, restricted and/or might require a separate license. For further information on SAP S/4HANA Cloud, private edition, please contact your SAP Account Executive. Business Background During the stock projection process, you can calculate, change, and simulate inventory forecasts using the Stock Projection Worksheet in Trader's and Scheduler's Workbench (TSW). The Stock Projection Worksheet calculates and shows the inventory forecast for a date or time period and for combinations of material, location, transport system, and valuation type. You can use the What-If functions of the Stock Projection Worksheet to simulate different affects on the inventory. You can perform stock projection for the following types of inventories. 522 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs Key Features The following table explains the key features available: Key Feature Base inventory What-If inventory Physical Inventory Use The SAP book inventory is generally the basis for calculating the base inven tory. The system calculates the base inventory by taking into account all actual and expected incoming and outgoing movements. However, in Customizing you can define the physical inventory as the basis for calculating the base in ventory. In this case, the Stock Projection Worksheet uses the latest update of the physical inventory as the starting inventory. The basis for calculating the what-if (simulated) inventory is either the physical inventory or SAP book inventory. The calculation of the what-if inventory con siders all the actual and expected incoming and outgoing movements including what-if figures entered in the Stock Projection Worksheet. You can use the physical inventory as the basis for generating the Stock Projec tion Worksheet . In this case, the system calculates the base inventory using the physical inventory. Also, the what-if inventory for future days is based on the latest update of the physical inventory. The starting inventory for a particu lar date is initially calculated using the first inventory quantities received for that date, for example the last reported gauge readings. In the Stock Projection Worksheet , the base inventory column displays physical inventory and the col umn for the planned inventory displays the what-if quantities. 5.10.5.5 TD - Shipment Cost Processing Note Please note, that for customers using SAP S/4HANA Cloud, private edition, features mentioned in this chapter might be unavailable, restricted and/or might require a separate license. For further information on SAP S/4HANA Cloud, private edition, please contact your SAP Account Executive. Business Background The solution calculates and settles shipment costs in transportation. The following items describe how the shipment costs are determined in the shipment, how they are transmitted to accounting, and how they are settled with the service provider. The system also shows you how to obtain information regarding the shipment costs to be expected in the order. SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs PUBLIC 523 Key Features The following table explains the key features available: Key Feature Use Pricing procedure determination The system determines the pricing procedure to be used to calculate shipment costs. Determination is carried out by transportation planning point, service agent, shipment cost item, and shipping type. Determining the Calculation Base The origin of the data upon which a condition type is based during shipment costing determines the calculation basis. Determination of Geographical Influencing The following options are available for representing geographical considera Factors tions in transportation: Distances Locations and zones Determination of the pricing date and the settlement date Shipment Comparisons Tax Determination 5.10.5.6 TSW - Freight costs Note Please note, that for customers using SAP S/4HANA Cloud, private edition, features mentioned in this chapter might be unavailable, restricted and/or might require a separate license. For further information on SAP S/4HANA Cloud, private edition, please contact your SAP Account Executive. Business Background In Trader's and Scheduler's Workbench, freight contracts represent agreements with a vessel carrier and contain the agreed upon terms, conditions and rates for bulk shipments. You can create freight contracts to represent agreements, such as time charters, voyage charters, or contracts of affreightment. During scheduling, the system uses the data from freight contracts to calculate laytime, demurrage, and despatch. The system also compares voyage data with freight contracts to check if the time period, locations, and products scheduled for a shipment violate the agreement specified in the freight contract. During scheduling, the system checks freight contracts for the following data: Vessel availability (system checks if freight contract exists) Freight costs (standard only) Laytime agreements 524 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs Start and end events for laytime Demurrage rates 5.10.6 Public Sector 5.10.6.1 Social Benefit Calculation Note Please note, that for customers using SAP S/4HANA Cloud, private edition, features mentioned in this chapter might be unavailable, restricted and/or might require a separate license. For further information on SAP S/4HANA Cloud, private edition, please contact your SAP Account Executive. Business Background Social benefits are calculated and paid out using an automated back-end accounting process in Social Services in conjunction with the Public Sector Collections and Disbursement (PSCD) component. The features described below only work in conjunction with the SAP CRM part of the Social Benefit Decision Making solution. Key Features Key Feature Gross Calculation Net Calculation Social Billing Use The system calculates benefit entitlement amounts and prepares the periodic payment amounts. The system bundles payment and deduction items in net calculation docu ments. The system prepares billing documents, for example as the basis for the pay ment run that is executed in Public Sector Collection and Disbursement (PSCD). SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs PUBLIC 525 5.10.7 Retail 5.10.7.1 Compatibility Pack for Merchandise Management Note Please note, that for customers using SAP S/4HANA Cloud, private edition, features mentioned in this chapter might be unavailable, restricted and/or might require a separate license. For further information on SAP S/4HANA Cloud, private edition, please contact your SAP Account Executive. The following features are available as part of the SAP S/4HANA compatibility pack for merchandise management. For information about the features available with SAP S/4HANA Retail for merchandise management, please see Retail for Merchandise Management [page 400]. Compatibility Features Value-Added-Services Management Key Feature Additionals Use Offer additionals that can be either activities or articles such as putting shirts on hangers, ironing, or labeling. For information about value-added-services management using SAP S/4HANA Retail for merchandise management, please see Master Data Management for Merchandising [page 392] under Value-Added-Services Management. Retail Price Planning and Management Key Feature Markdown plan management Bonus buy using IDocs Use Ensure a balance between the objectives that as little stock as possible re mains at the end of a season while minimizing the loss of revenue due to price reductions. Plan the price reductions percentages and periods by means of pricing strategies. Specify sales price deals that can be tied to prerequisites or requirements, such as buy two, get one free, spend at least a certain amount to get a per centage off, special sales prices when a coupon is presented, and other promotional offers. For information about the features available with SAP S/4HANA Retail for merchandise management that support retail price planning and management, including the bonus buy feature, please see Retail Price Planning and Management [page 401]. 526 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs Point of Sale Key Feature POS outbound article data Use Transfer article related information to point-of-sale (POS) and store mer chandise management solutions using the IDoc format as an alternative to using assortment lists to transfer article data. For information about the features available with SAP S/4HANA Retail for merchandise management that support store connectivity, including the assortment list feature, please see Point of Sale [page 404]. Merchandise Buying Key Feature Purchase order optimizing Use Analyze whether increasing order quantities will be profitable in the case of upcoming known purchase price increases by using investment buying capabilities to determine the optimum quantities to be ordered on top of regular demand, based on factors such as storage cost. Optimize purchase order quantities to external suppliers through load building by making the best possible use of transportation methods, for example, by ordering complete truck loads. For information about the features available with SAP S/4HANA Retail for merchandise management that support merchandise buying, please see Merchandise Buying [page 396]. Replenishment Planning and Allocation Key Feature Rapid replenishment Use Calculate required net quantities for articles for stores on a demand basis. Generate follow-on documents such as purchase orders or sales orders for merchandise. Monitor and analyze the results of replenishment planning and display fol low-on documents. For information about the features available with SAP S/4HANA Retail for merchandise management that support replenishment planning and allocation, please see Replenishment Planning and Allocation [page 398]. SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs PUBLIC 527 Demand Forecasting and Planning Key Feature Sales forecasting Use The specific use cases in retail processes are: Forecast requirements based on past figures to support requirements planning methods: Create forecasts based on freely definable data (alternative historical data) on purchase order quantities or on aggregated sales quantities from the stores that are supplied. See also Material Requirements Planning [page 54] For information about the features available with SAP S/4HANA Retail for merchandise management that support demand forecasting and planning, please see Demand Forecasting and Planning [page 398]. Integration Scenarios Key Feature Use Integration with SAP Apparel and Foot wear Transfer required master data to enable the SAP Apparel and Footwear solution to run integrated processes. Integration with SAP Demand Manage ment Transfer required master data to enable the SAP Demand Management solution to optimize sales prices. Receive proposals as the basis for sales prices calculation. POWER lists (Personal Object Work Entity Visualize specific business objects as a starting point to launch opera Repository Lists) tional transactions. Closed-loop scenarios based on SAP Business Warehouse Integrate information from SAP Business Warehouse in operative proc esses. 528 PUBLIC SAP S/4HANA 1709 SAP S/4HANA Compatibility Packs 6 Integration SAP S/4HANA currently supports the integration with other SAP products. The following integration scenarios are available for SAP S/4HANA. Please note that you might need a separate license. For further information, please contact your SAP Account Executive. Business Network Integration Ariba Network Integration SAP S/4HANA currently supports integration scenarios with the Ariba Network that enable you to identify sources of supply for purchase requisitions in SAP S/4HANA, using the community of suppliers on the Ariba Network that are connected with the Ariba Sourcing solution. Once your suppliers are registered on the Ariba Network, SAP S/4HANA offers seamless purchase order and invoice collaboration processes with your suppliers. For more information, see: Source Assignment [page 121] Purchase Order Collaboration (Ariba Network Integration) [page 128] Invoice Collaboration (Ariba Network Integration) [page 132] Dynamic Discounting (Ariba Network Integration) [page 39] Payment Advice Collaboration (Ariba Network Integration) [page 40] SAP Fieldglass Integration SAP S/4HANA currently supports an integration scenario for invoice handling with SAP Fieldglass. For more information, see Invoice Collaboration (SAP Fieldglass) [page 133] Integration with SAP SuccessFactors Employee Central SAP S/4HANA currently supports the integration scenario with the SAP SuccessFactors Employee Central using the HANA Cloud Interface (HCI) to enable replication of employee, organizational, and cost center data. For more information, see Employee Central Connectivity (Integration with SAP SuccessFactors) [page 51] Integration with Concur Solutions SAP S/4HANA currently supports the integration with Concur solutions to simplify your expense and invoice processes in the areas of master data export and financial posting of expense reports, cash advances, and invoices. SAP S/4HANA 1709 Integration PUBLIC 529 Integration with SAP Global Trade Services SAP S/4HANA supports the integration with SAP Global Trade Services to offer additional processes for your international supply chain. Integration with Visual Enterprise Solutions SAP S/4HANA currently supports the integration with Visual Enterprise solutions to enable the reuse of engineering visualization data for technical communications, restructuring, analytic dashboarding, and other workflows. 530 PUBLIC SAP S/4HANA 1709 Integration Important Disclaimers and Legal Information Hyperlinks Some links are classified by an icon and/or a mouseover text. These links provide additional information. About the icons: Links with the icon : You are entering a Web site that is not hosted by SAP. By using such links, you agree (unless expressly stated otherwise in your agreements with SAP) to this: The content of the linked-to site is not SAP documentation. You may not infer any product claims against SAP based on this information. SAP does not agree or disagree with the content on the linked-to site, nor does SAP warrant the availability and correctness. 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