Sourcing and Procurement with SAP S/4HANA

Justin Ashlock has spent over half of his more than 20-year career in technology with SAP America, joining SAP's Professional Services organization in 2005, serving eventually as a platinum consultant, and then as the practice engineer for hundreds of global SAP customer projects and engagements supporting over $100 billion in procurement and logistics activities and pursuits worldwide. In 2013, Justin began managing the SRM cloud practice for SAP North America, focusing on SAP Ariba, SAP S/4HANA Sourcing and Procurement, Materials Management, SAP Supplier Relationship Management (SRM), as well as SAP CLM and Sourcing. Since 2018, Justin also serves as the global practice lead for SAP's procurement solutions in parallel. Justin is also a longtime SAP PRESS author, having published two books (SAP S/4HANA Sourcing and Procurement and SAP Ariba and SAP Fieldglass: Functionality and Implementation), as well as two procurement chapters as a contributing author in Discover SAP, 3rd edition and an e-Bite entitled Introducing Central Procurement for S/4HANA. Justin holds a Bachelor's Degree from the University of California, Berkeley, and a Master's Degree in Business Administration from the University of Notre Dame. He resides in Chicago with his wife and two young sons.

... Foreword ... 21
... Preface ... 23
... Target Audience ... 24
... Objective ... 24
... Structure of This Book ... 24
... Acknowledgments ... 29
1 ... Introduction to Sourcing and Procurement ... 31
1.1 ... Sourcing and Procurement: From Basic to Strategic ... 31
1.2 ... Sourcing and Procurement from End to End ... 35
1.3 ... Procurement with SAP S/4HANA ... 40
1.4 ... Summary ... 49
2 ... Implementation Options ... 51
2.1 ... Implementation Overview ... 51
2.2 ... On-Premise SAP S/4HANA ... 60
2.3 ... SAP S/4HANA Cloud ... 69
2.4 ... SAP Ariba Central Procurement, Private Cloud Edition ... 71
2.5 ... Quick Start Approaches and Materials for SAP S/4HANA ... 74
2.6 ... Summary ... 82
3 ... Organizational Structure ... 83
3.1 ... SAP S/4HANA Enterprise Management Organization Objects ... 83
3.2 ... SAP S/4HANA Sourcing and Procurement–Specific Organization Structure Objects ... 86
3.3 ... Company Code ... 87
3.4 ... Plants ... 90
3.5 ... Storage Locations and Warehouses ... 92
3.6 ... Purchasing Organizations ... 96
3.7 ... Purchasing Group Creation ... 100
3.8 ... Summary ... 100
4 ... Master Data ... 103
4.1 ... Material Masters and Material Groups ... 104
4.2 ... Batch Management and Serialization ... 115
4.3 ... SAP S/4HANA Business Partner Model ... 118
4.4 ... Summary ... 137
5 ... Operational Procurement ... 139
5.1 ... What Is Operational Procurement? ... 139
5.2 ... Self-Service Procurement ... 143
5.3 ... Requirements Processing in SAP S/4HANA Sourcing and Procurement ... 156
5.4 ... Purchase Order Processing ... 159
5.5 ... Service Purchasing and Service Confirmation ... 161
5.6 ... Purchase Order Collaboration ... 162
5.7 ... Configuring Operational Procurement ... 163
5.8 ... Summary ... 186
6 ... Automated and Direct Procurement ... 187
6.1 ... What Is Automated and Direct Procurement? ... 187
6.2 ... Materials Requirements Planning ... 190
6.3 ... Forecasting and Planning ... 200
6.4 ... Contract and Source Determination ... 207
6.5 ... Configuring Automated and Direct Procurement ... 225
6.6 ... Industry-Focused Solutions for Direct Procurement ... 231
6.7 ... Integration with SAP Ariba and SAP Business Network ... 234
6.8 ... Summary ... 235
7 ... Inventory Management ... 237
7.1 ... What Is Inventory Management? ... 238
7.2 ... Stock Management in SAP S/4HANA ... 241
7.3 ... Goods Movements ... 244
7.4 ... Physical Inventory ... 274
7.5 ... Reporting in Inventory Management ... 283
7.6 ... Configuring Inventory Management ... 307
7.7 ... Summary ... 326
8 ... Contract and Scheduling Agreement Management ... 327
8.1 ... What Is Contract and Scheduling Agreement Management? ... 328
8.2 ... Contract Consumption ... 335
8.3 ... Contract Reporting and Analytics ... 338
8.4 ... Configuration ... 343
8.5 ... Scheduling Agreement ... 349
8.6 ... Customizing Scheduling Agreements ... 355
8.7 ... Integrating with SAP Ariba Contracts ... 359
8.8 ... Summary ... 360
9 ... Enterprise Contract Management and Assembly ... 361
9.1 ... What Is Enterprise Contract Management and Assembly? ... 361
9.2 ... SAP Fiori Apps for Enterprise Contract Management Overview ... 363
9.3 ... Customizing Enterprise Contract Management ... 374
9.4 ... Summary ... 389
10 ... External Sourcing ... 391
10.1 ... Sourcing Strategies ... 391
10.2 ... Request for Quotation ... 393
10.3 ... SAP Fiori Apps for External Sourcing ... 395
10.4 ... Configuring Request for Quotation ... 404
10.5 ... Configuring Flexible Workflow ... 411
10.6 ... Integration with SAP Ariba ... 418
10.7 ... Summary ... 418
11 ... Product Sourcing ... 419
11.1 ... What Is Product Sourcing? ... 420
11.2 ... Product Sourcing ... 423
11.3 ... Procurement Planning ... 433
11.4 ... Product Sourcing with Enterprise Contract Management ... 437
11.5 ... Product Sourcing and Commodity Pricing Engine ... 439
11.6 ... Quotation Management and Supplier Quotations ... 440
11.7 ... Mass Price Update ... 441
11.8 ... External Collaboration with Suppliers ... 442
11.9 ... Configuration Product Sourcing ... 445
11.10 ... Summary ... 450
12 ... Invoice and Payables Management ... 451
12.1 ... What Are Invoice and Payables Management? ... 451
12.2 ... Invoice Processing ... 452
12.3 ... Accounts Payable ... 477
12.4 ... Invoice and Payables Management Analytics and Reporting ... 491
12.5 ... Configuring Invoice and Payables Management ... 504
12.6 ... Integrating SAP S/4HANA with SAP Invoice Management by OpenText ... 520
12.7 ... SAP Ariba Central Invoice Management for SAP S/4HANA Cloud ... 521
12.8 ... Taulia: Working Capital Management ... 522
12.9 ... Summary ... 524
13 ... Supplier Management ... 525
13.1 ... What Is Supplier Management? ... 525
13.2 ... Classification and Segmentation ... 530
13.3 ... Supplier Evaluation ... 534
13.4 ... Configuration ... 542
13.5 ... Summary ... 546
14 ... Centralized Procurement ... 547
14.1 ... What Is Centralized Procurement? ... 547
14.2 ... Central Requisitioning ... 552
14.3 ... Central Purchasing ... 554
14.4 ... Central Sourcing ... 558
14.5 ... Central Purchase Contracts ... 559
14.6 ... Central Analytics ... 561
14.7 ... Integration with SAP Ariba and SAP Business Network ... 566
14.8 ... Configuring SAP Ariba Central Procurement, Private Cloud Edition ... 568
14.9 ... Summary ... 592
15 ... Sourcing and Procurement Analytics ... 593
15.1 ... Spend Visibility ... 593
15.2 ... Contract Expiration ... 596
15.3 ... Sourcing ... 597
15.4 ... Supplier Performance ... 599
15.5 ... Reporting ... 602
15.6 ... Machine Learning and Artificial Intelligence ... 604
15.7 ... SAP Ariba Category Management ... 606
15.8 ... Configuration ... 607
15.9 ... Summary ... 614
16 ... Integrating SAP S/4HANA with SAP Signavio, SAP Ariba, SAP Business Network, and SAP Fieldglass ... 617
16.1 ... SAP Ariba and SAP Business Network Integration Projects and Connectivity Options ... 618
16.2 ... SAP Integration Suite, Managed Gateway for Spend Management and SAP Business Network ... 620
16.3 ... SAP Business Network Supply Chain Collaboration ... 640
16.4 ... SAP Business Network for Logistics ... 647
16.5 ... SAP Business Network for Asset Management ... 650
16.6 ... SAP Fieldglass ... 651
16.7 ... SAP SuccessFactors ... 656
16.8 ... SAP Signavio ... 658
16.9 ... Summary ... 660
17 ... Customizing the User Interface ... 661
17.1 ... User Interface Options in SAP S/4HANA ... 661
17.2 ... Configuring SAP Fiori ... 673
17.3 ... Customizing SAP Fiori ... 679
17.4 ... Summary ... 683
18 ... Conclusion ... 685
18.1 ... Future State of Procurement Solutions ... 688
18.2 ... Future State of the Procurement Supply Chain ... 689
... The Author ... 691
... Contributors ... 691
... Index ... 693