Business Priority: Streamlined Procure to Pay

Scope items for Streamlined Procure to Pay include:

Supplier Classification and Segmentation

This process identifies suppliers that are strategically important and critical to a customer's
business. It enables the appropriate allocation of resources to develop and manage business
relationships.

Analytics for Stock Champion

The Stock Champion app simplifies the decision-making in the consumer product industry by
providing a holistic, real-time view of both stock at risk (expiration) and short supply in one
application.

Quality Management in Procurement

This scope item deals with quality inspection in procurement. Quality inspection may be relevant
when a material is received from a supplier. The result of the inspection triggers further processing,
such as return to the supplier in case of inadequate quality.

Ariba - Spot Quote Integration for Procurement

Ariba - Quote Automation integration for Procurement

Vendor Invoice Management by OpenText

The scope item enables the SAP S/4HANA system to extend the procure-to-pay process by
incorporating an automated invoice document recognition solution. You can use this solution to
post supplier invoices, or, if automatic posting is not possible, to create invoice drafts for manual
completion.

Supplier Evaluation and Performance Monitoring

Supplier Evaluation and Performance Monitoring helps you, as a category manager, to determine
the supplier performance. However the scope item does not only evaluate the individual supplier,
but rather the whole procurement process.

Fieldglass - Contingent Labor and Invoice Integration for Finance

Integrate SAP S/4HANA with SAP Fieldglass solutions to counter seasonal skill shortages, staff
projects with outside experts, and augment staff short term or strategically for your optimum total
workforce mix. Activate this integration to digitize and automate the transfer of electronic invoices
for external staff from SAP Fieldglass to SAP S/4HANA Finance. Upload respective master data
from SAP S/4HANA to SAP Fieldglass, such as accounting block data with cost center, or internal
orders, and organizational data with plants and purchasing organizations.

Sales Rebate Processing

This scope item is used where subsequent rebates are settled based on business volume or quantity
with a customer. The settlement can take place at the document item level. Usually, the settlement
is done based on cumulative key figures (for example, business volume) due to the high volume
of documents involved. The key figures are determined from the transactional document data.
Using Condition Contract Management, various functionality is available that you can use to
flexibly create and settle rebate agreements with customers.

Activity Management in Procurement

This process enables you to collaborate with internal stakeholders on strategic topics, for example,
supplier development, audits, supplier strategy etc.

Ariba - Sourcing Integration

This process helps you to extend your SAP S/4HANA operational procurement processes to
Ariba Collaborative Sourcing and to select the most cost-effective bids from the millions of
suppliers on Ariba. It helps you to convert awarded bids to purchase orders automatically.

Purchase Contract

This scope item deals with the use of contracts in procurement activities. Contracts are agreements
with vendors to supply materials or services under negotiated conditions and within a certain
period.

Requisitioning

This scope item deals with employee requisitioning activities. An employee creates a shopping
cart. A purchase requisition is generated and then converted to a purchase order. When the
employee receives the goods, they perform a goods receipt confirmation.

Scheduling Agreements in Procurement

The scope item supports the scheduling agreement process and covers the characteristics of
procurement consignment processing.

Procurement of Direct Materials

This process enables your manufacturing department to order materials directly through external
procurement using purchase requisitions. The purchasing department tracks the procurement
process with the purchase order as well as the goods and invoice receipts.
Serial Number Management

This process enables you to identify material items in the supply chain and to track these during
goods movement. It includes configuration settings for serial number management and provides
serial number handling at finished goods level.

Consumable Purchasing

This scope item deals with purchase order creation activities during a procurement process. It
describes the additional process steps of a purchase order approval, goods receipt of consumables,
and invoice receipts by line item.

Real-Time Reporting and Monitoring for Procurement

Real time reporting and monitoring in procurement enables business users to perform their daily
tasks quickly and effectively without the need to open many different reports and transactions.

Ariba - Purchase Order to Invoice Integration with Procurement

Automate purchase order to invoice processing with your suppliers in the Ariba Network.

Batch Management

This scope item lets you work with homogeneous partial quantities of a material or product
throughout the logistics quantity and value chain. This includes documentation of material
properties, where-used information, and quality status.

Stock Handling - Rework, Scrap, Blocked Stock

This scope item covers the following stock handling processes: Scrapping, block stock, unblock
stock.

Advanced Available-to-Promise Processing

The advanced ATP (aATP) functionality enhances the standard availability check features. The
standard S/4HANA ATP comprises the features for Product Availability Check and Rescheduling.
With new user interfaces, the aATP within scope item 1JW focuses on performance, simplicity,
and integration and additionally provides the functionality for Release-for-Delivery, Product
Allocation Check, and Backorder Processing.

Return to Supplier

This scope item deals with the business process of returning goods back to the supplier. Target
groups are buyers, warehouse employees, and accounting clerks.

Physical Inventory - Inventory Count and Adjustment

This scope item covers the periodic process of making necessary adjustments to stock on hand
after a physical count.

Subcontracting

The Subcontracting process involves sending raw components to a vendor for specific
manufacturing processes, and receiving the value-added finished material back into inventory.

Business Priority: Accelerated Plan to Product

Scope items for Accelerated Plan to Product include:

Material Requirements Planning

This scope item describes the process for a standard Materials Requirements Planning (MRP)
process to procure material either via purchase requisitions or delivery schedules in case a
scheduling agreement exists.

Quality Management in Stock Handling

This scope item deals with quality inspection during the storage of goods. Quality inspection is
relevant if a warehouse clerk identifies a potential issue with a material in the inventory that needs
further investigation.

Make-to-Stock Production — Discrete Manufacturing

This process supports the following: Requirements planning, production order releasing, goods
movements, and production order confirmation.

Make-to-Stock Production — Process Manufacturing

This scope item provides a platform for process manufacturing, supporting processes in
manufacturing for the chemical, pharmaceutical, and food and beverage industries, as well as the
batch-oriented electronics industry.

Make-to-Order Production - Finished Goods Sales and Final Assembly

This scope item encompasses the entire process from customer quotation to delivery and billing of
finished goods, as well as all dependent components within make-to-order production.

Make-to-Stock Production - Repetitive Manufacturing

This process enables you to carry out make-to-stock production based on run schedules. The
production is controlled without a direct reference to sales orders. Run schedules determine the
dates and quantities. Requirements are created in Demand Management.
Make-to-Order Production - Semifinished Goods Planning and Assembly

This process enables production planning for semifinished components within a Make-to-order
(MTO) environment prior to incoming sales orders. This reduces the lead time of sales orders for
finished goods that are received later.

Rework Processing - Stock-Manufactured Material

The process by which the rework of defective manufactured materials can be carried out.

Rework Processing - Work-in-Process

This process takes care of defective materials within a production order.

Production Subcontracting - External Processing

Individual production steps (operations or suboperations) are processed outside of your company
by a vendor.

Manufacturing with Kanban Supply into Production

This scope item focuses on a lean production control method within a manufacturing environment
using Kanban processing for lean replenishment with the Supplier Kanban, Move Kanban, and
Flow manufacturing flavors.

Quality Management in Discrete Manufacturing

This scope item deals with quality inspection in discrete production. Quality inspection is relevant
when a material is received from production or during the production process itself. The result of
the inspection may trigger further processing.

Stock Handling - Rework, Scrap, Blocked Stock

This scope item covers the following stock handling processes: Scrapping, block stock, unblock
stock.

Advanced Available-to-Promise Processing

The advanced ATP (aATP) functionality enhances the standard availability check features. The
standard S/4HANA ATP comprises the features for Product Availability Check and Rescheduling.
With new user interfaces, the aATP within scope item 1JW focuses on performance, simplicity,
and integration and additionally provides the functionality for Release-for-Delivery, Product
Allocation Check, and Backorder Processing.

Return to Supplier
This scope item deals with the business process of returning goods back to the supplier. Target
groups are buyers, warehouse employees, and accounting clerks.

Physical Inventory - Inventory Count and Adjustment

This scope item covers the periodic process of making necessary adjustments to stock on hand
after a physical count.

Subcontracting

The Subcontracting process involves sending raw components to a vendor for specific
manufacturing processes, and receiving the value-added finished material back into inventory.

Business Priority: Optimized Order to Cash

Scope items for Optimized Order to Cash include:

Intrastat Processing

Intrastat is a statistical system that is used to collect information directly from enterprises about
dispatches and arrival of commodities among member states of the European Union.

Intercompany Sales Order Processing - International

This scope item enables intercompany international transactions. As an example, the functionality
is leveraged when a Company A (located in Country 1) sells merchandises to a Customer in the
same country. The good is shipped from a separate location belonging to a Company located in a
different country.

Intercompany Sales Order Processing - Domestic

This scope item describes the process for the intercompany sales when an affiliate company
directly delivers trading goods to customer. This intercompany sales scenario applies only when
ordering and delivering companies are in same country, for example, Germany.

Delivery Processing without Order Reference

This scope item describes the entire process sequence for a standard delivery process where the
customer does not need to create a preceding order (delivery without order reference). The business
process encompasses all the steps from creating a delivery, to clearing a customer’s account once
payment is received.

Quality Management in Sales

This scope item deals with quality inspection in the sales process. Quality inspection is relevant if
high-quality materials are to be delivered to a customer. Once the inspection result is good, the
goods issue can be posted and the materials delivered to the customer.

Sales Order Fulfillment Monitoring

This scope item describes the usage of the Sales Order Fulfillment Monitor. The monitor allows
you to identify issues within sales order processing. You can then directly execute follow up steps
from the monitor to resolve these issues.

Customer Consignment

This scope item describes the process for standard customer consignment processing. The products
shipped to the customer are still owned by the company until they are sold by the customer to a
third party. The materials, which are usually stored in the customer’s store or warehouse, are posted
in a stock (consignment stock) that is assigned to the corresponding customer. This allows the
customer’s current stock to be viewed at any time.

Sales Contract Management

This scope item covers the creation and the call off of a sales quantity contract and a value contract
for a certain product.

Sales Inquiry

This scope item describes the process for a standard sales inquiry.

Sales Processing using Third-Party with Shipping Notification

This process enables your company to forward orders to a third-party vendors who then ship goods
directly to customers and bill you directly. Once vendors have sent a shipping notification, a
statistical goods receipt can be posted.

Sell from Stock

This scope item describes the entire process sequence for a standard sales process (Sale-from-
Stock) with a customer. The business process encompasses all steps from creating an order to the
clearing of a customer account after receipt of payment.

Free of Charge Delivery

This scope item describes the process of providing goods to a customer at no cost (Free-of-
Charge Sales Order).

Sales Quotation
This process describes the creation of a standard sales quotation with conversion to a sales order.

Sales Order Entry with One Time Customer

This scope item describes the process of sales order creation without having a customer master
record for the prospect available at the beginning of the order process (creating a sales order with
a dummy customer).

Sales Processing using Third-Party without Shipping Notification

This process enables you to pass sales orders to a third-party vendor who then ships the goods
directly to the customer and bills you. The standard sales order automatically creates a purchase
requisition for the materials to be delivered by the third-party vendor.

Sales of Non-Stock Item with Order-Specific Procurement

This process enables customers to place orders for goods that are not in stock. If this is the case,
goods are procured from external suppliers.

Returnables Processing

This process enables the shipping of standard pallets and their return.

Free Goods Processing

This scope item describes the entire process sequence for a standard sales process (Make-to-stock)
with a customer, including free goods. The business process encompasses all steps from creating
an order to the clearing of a customer account after payment is received.

Sales Order Processing with Customer Down Payment

In business, especially in a make-to-order environment, customers may be required to pay an

amount in advance before the goods are delivered.

Invoice Correction Process with Credit Memo

In this scope item, you can apply a credit to a customer account if you determine a customer has
been overcharged because of a pricing or sales tax rate error. The credit memo request is created
with reference to the incorrect invoice previously issued to the customer.

Credit Memo Processing

In this scope item, you can apply a credit to a customer account once you determine if a customer
has been overcharged because of a pricing or sales tax rate error. The standard credit memo request
can be created as stand-alone or with reference to a sales order or billing document.
Sales Order Processing with Collective Billing

This scope item describes how to handle various business cases in standard sales processes (Sell-
from-Stock).

Order-to-Cash Performance Monitoring

This scope item provides apps that provide you, as a manager or owner of a company's order-to-
cash processes, a comprehensive overview of the performance and conformity of all the sales order
processes in your company.

Invoice Correction Process with Debit Memo

This process is used for applying a debit to a customer account if a customer has been undercharged
as a result of a pricing or sales tax rate error. The debit memo request is created with reference to
the incorrect invoice.

Debit Memo Processing

The debit memo process is used for applying a debit to a customer account once a determination
has been made that a customer has been undercharged as a result of a pricing or sales tax rate error.
The standard debit memo request can be created as stand-alone or with reference to a sales order
or billing document.

Fiori Analytical Apps for Sales and Distribution

Fiori Analytical Apps for sales and distribution.

Customer Returns

This scope item describes sales order returns processing.

Accelerated Customer Returns

This scope item encompasses the end-to-end returns and refunding process with automated
creation of all follow-up documents using one app.

Business Priority: HR Connectivity

Scope items for HR Connectivity include:

Time Recording - Project-Based Services

The Time Recording for Project-Based Services scenario provides internal consultants a quick
time entry method against customer or internal projects they are working on.
Employee Integration - Employee Central Integration

Integrate your SAP SuccessFactors Employee Central and SAP S/4HANA Cloud with automated
data exchange. This covers integration of employee data, employment data and cost center
assignments from SAP SuccessFactors Employee Central to SAP S/4HANA Cloud, and
integration of cost center from SAP S/4HANA Cloud to SAP SuccessFactors Employee Central.

Employee Integration - SAP S/4HANA Enablement

This scope item covers the technical enablement of SAP S/4HANA to enable Employee master
data integration. It covers the configuration required to store employee and employee-related data
in SAP S/4HANA.

Business Priority: Core Finance

Scope items for Core Finance include:

Period-End Closing - Projects

Generate settlement rules execute the settlement of project WBS to cost center orders

Intercompany Processes - Cost Allocation in General Ledger

This scope item enable one company code to pay invoices on behalf of another company code
(central payment). Entries can be passed for general ledger cost allocation in both company codes
in one country.

Event-Based Revenue Recognition - Project-Based Services - PL

Event-based Revenue Recognition calculates and posts real time revenue and cost adjustment for
professional service for fixed price, T&M, and periodic service projects using Parallel Ledger
functionality.

Accounting and Financial Close

This process provides a comprehensive picture of external accounting and accounts.

Machine Learning - SAP Cash Application Integration

The integration to SAP Cash Application Solution intends to automate the invoice-matching
process and provide the prediction results back to SAP S/4HANA with the help of Machine
Learning.

Integration to SAP RealSpend and SAP Financial Statement Insights

This scope item covers the setup of integration from SAP S/4HANA to RealSpend and Financial
Statement Insights, enabling the SAP HANA Cloud Platform apps to read financial data from SAP
S/4HANA for reporting purposes.

General Ledger Allocation Cycle

During the business transaction based on the profit center mapping to the segment, the expenditure
and income are captured under the business segment or common profit center that cannot be
allocated. After doing the profit center distribution, the costs are transferred to the correct profit
centers and the correct segment is derived from the profit center.

Cash Operations - Standard

This scope item provides an overview of the cash position and midterm liquidity forecast of your
company.

Bank Account Management - Standard

This scope item provides a platform to manage bank account master data

Intercompany Sales Order Processing - Domestic

This scope item describes the process for the intercompany sales when an affiliate company
directly delivers trading goods to customer.This intercompany sales scenario applies only when
ordering and delivering companies are in same country, for example, Germany.

Accounting and Financial Close - Parallel Ledger

This scope item provides additional scope for Accounting and Financial Close (J58). It provides
ledger-specific operation postings and ledger-specific period-end closing steps.

Asset Accounting

Asset accounting is a subsidiary ledger of the general ledger and is used to manage and document
fixed asset transactions in detail.

Asset Accounting - Parallel Ledger

This process is an additional scope item to Asset Accounting (J62). It provides ledger-specific
transactions and reports.

Asset Under Construction

This process describes the necessary steps that need to be carried out to acquire assets for
constructed assets. This starts with the acquisition of an asset and its monitoring until construction
is finished. This can take place within a single period or over more than one period.
Asset Under Construction - Parallel Ledger

This process is an additional scope item to Asset Accounting (BFH). It provides ledger-specific
transactions. This scope item describes the necessary steps to acquire assets for constructed assets
in parallel ledger.

Accounts Payable

With Accounts Payables, you can manage your open payables invoices that are automatically
created from purchasing processes.

Accounts Receivable

With Accounts Receivables, you can manage your open receivables invoices that are automatically
created from sales processes.

Credit Management

In this scope item, you manage and calculate credit limits for customers. You can also check the
credit limit when sales documents are created or changed.

Collections and Dispute Management

Streamline your debt collections processes by running our integrated software-and-service

package for resolving customer invoice disputes and managing overdue receivables. With this, you
can also reduce your exposure to the risks and costs of bad debt.

Bank Account Management - Extra

This scope item provides extra functionalities of Bank Account Management.

Cash Operations - Extra

This scope item provides insight into the cash position of your company.

Ariba - Payment and Discount Management Integration with Finance

Digitally send payment advice to your suppliers, and take advantage of discounts for early payment.
With this integration of SAP S/4HANA Financials with the Ariba Network, accounts payable
collaboration with your suppliers becomes highly efficient.

Bank Integration with SAP Financial Services Network

The SAP Financial Services Network enables you to automatically connect to your banks in order
to send payment instructions and receive bank statements.
Bank Integration with File Interface

Use files handled manually to exchange information about payments and bank statements with
your bank.

Internal Order - Actual

Various internal projects consume resources and incur costs or expenses. The costs of these
projects must be tracked for various purposes. This scope item explains how to deal with the
actuals for such internal projects.

Standard Cost Calculation

This process enables you to update standard costs for products as part of annual operations
planning.

Overhead Cost Accounting

This scope item covers transaction-based actual postings that are normally used in overhead cost
controlling. The purpose of overhead cost controlling is the planning, allocation, control, and
monitoring of overhead costs.

Profitability and Cost Analysis

This scope item covers profitability analysis and reporting (usually executed after the period-end
close process is completed).

Profit and Loss Plan Data Load from File

This scope item provides the functionality to load a flat file with PLAN data (.CSV format) from
an external source into SAP S/4HANA Cloud.

Inventory Valuation for Year-End Closing

Balance sheet valuation in Inventory Accounting enables you to evaluate your inventories at the
end of reporting periods according to international accounting principles (such as IAS or U.S.
GAAP).

Period-End Closing - Maintenance Orders

This scope item covers the period-end closing for maintenance orders.

Period-End Closing - Plant

This process ensures that all costs incurred during the manufacturing process are assigned to
production activities.
Event-Based Revenue Recognition - Project-Based Services

With Event-Based Revenue Recognition, postings to relevant account assignment objects lead to
revenue recognition calculations. The basis for the revenue recognition calculation includes all
document line items that are assigned to the account assignment object.

Statutory Reporting Framework Reports

Statutory reporting is the mandatory submission of financial and nonfinancial information to a

government agency. This scope item deals with Statutory Reporting Framework Reports.

Business Priority: Project Services

Scope items for Project Services include:

Resource Management - Project-Based Services

Resource Management for Project-Based Services helps you, as a resource manager, to monitor
and analyze the resource utilization and the staffing of resource requests, supporting you in
ensuring optimal resource utilization and efficient project staffing.

Customer Project Management

The Project Services business scenario manages the complete end-to-end process of selling and
performing project-based services to customers.

Intercompany Processes - Project-Based Services

The Intercompany Processes - Project-Based Services scope item encompasses creation of

intercompany invoices and simultaneous posting of intercompany invoice to the accounts payables
of the ordering company.

Service and Material Procurement - Project-Based Services

The Service and Material Procurement - Project-Based Services scope item covers all relevant
procurement processes of the professional services scenario, such as service procurement,
consumption materials procurement, and procurement for third-party order processing.

Sales Order Processing - Project-Based Services

The Sales Order Processing - Project-Based Services scope item describes the entire process
sequence for the sales order maintenance and the billing process within the project-based services
scenario.

Internal Project Management

The Internal Project Management scope item manages the complete end-to-end process of
performing project-based services inside the company.

Customer Project Analysis

Customer Project Analysis is an analytical SAP Fiori application built using Analysis Path
Framework in SAP S/4HANA embedded analytics. This application provides rich visualization
and analysis of customer projects based on margin, revenue, cost, and so on. The application uses
several predefined analysis steps such as country, service organization, profit centers, projects, and
more.

Utilization Analysis

Utilization Analysis is an analytical SAP Fiori application built using Analysis Path Framework
in SAP S/4HANA embedded analytics. This application provides rich visualization and analysis
of utilization rate of employees across several predefined analysis steps such as company, service
organization, cost centers, employee details, and so on. This ultimately leads to the analysis of
billable versus non-billable employees in commercial project management.

Business Priority: Data Management

Scope items for Data Management include:

Data Protection and Privacy

This scope item provides features and functions to support compliance with the relevant legal
requirements and general data protection acts for the processing of person related data.

Concur - Financial Integration

Cloud-based travel and expense solutions enable users to plan trips and create expense reports.
This information is typically transferred to financial systems for posting and integration with SAP
S/4HANA Cloud.

Consolidation - Consolidate Product Data

This scope item delivers capabilities to load master data from different sources and to detect
duplicates. For each of the resulting match groups a best record out of the duplicates in that group
is calculated using survivorship rules on the master data attributes.

Consolidation - Consolidate Business Partner Data

This scope item delivers capabilities to load master data from different sources and to detect
duplicates. For each of the resulting match groups, a best record out of the duplicates in that group
is calculated.
Mass Processing - Change Product Data

This scope item delivers capabilities to update multiple master data records at a time. To update
records, select the fields and records you want to change. Once you enter your changes, the system
provides statistics on the changed fields and validates the data.

Mass Processing - Change Business Partner Data

This scope item delivers capabilities to update multiple master data records at a time. To update
records, select the fields and records you want to change. Once you enter your changes, the system
provides statistics on the changed fields and validates the data. Change Business Partner Data
delivers capabilities to update multiple master data records at a time. To update records you select
the fields and records you want to change. Once you enter your changes, the system provides
statistics on the changed fields and validates the data.

Master Data Quality - Product Data

This scope item delivers capabilities to validate product master data and to get the result of the
validation into a worklist. In this worklist, the correction of the erroneous product master data can
be triggered.

Data Aging

Data Aging helps manage SAP HANA in-memory storage by moving excess data to disk.

Information Lifecycle Management

Information Lifecycle Management (ILM) allows for the blocking and deletion of data according
to residence and retention rules.

Master Data Catalog for Enterprise Management Cloud

This scope item provides a central entry point to documentation on master data. For example,
Customer, G/L Account, and so on. It gives an overview of how users maintain master data objects
and what data is provided by SAP.

Data Migration to SAP S/4HANA from SAP

Data migration to SAP S/4HANA Cloud for existing SAP Business Suite customers is currently
performed with the file based approach in Data Migration to S/4HANA from File (BH5).

Data Migration to SAP S/4HANA from File

Perform data migration to SAP S/4HANA for customers coming from any legacy system using a
file-based approach.
Preventive Maintenance

Process that help to prevent system breakdowns that have high repair and production breakdown
costs.

Corrective Maintenance

This process covers the maintenance of technical objects when a breakdown or failure occurs.

Emergency Maintenance

Process to document unforeseen and urgent maintenance work by creating and confirming an order
in the same operation.

Business Priority: Application Platform and Infrastructure

Scope items for Application Platform and Infrastructure include:

Social Collaboration Integration

This prebuilt integration of SAP S/4HANA and SAP Jam delivers social collaboration work
patterns where you work, bringing together people, information, applications, and processes to
solve business problems and improve results.

Output Management

The purpose of this scope item is to provide best practice information for implementing an
E2E scenario for output management in the S/4 Cloud Edition.

Key User Extensibility

SAP S/4HANA natively embodies key user in-app extensibility tools, offering the means to change
and adapt the UI layout and context, create custom fields and tables, create and extend analytical
reports and forms, and change and add to the business logic.

SAP S/4HANA Cloud Solutions- Features And Benefits

Innovative production planning capabilities with machine learning

The goal is to enhance / leverage our existing world class planning capabilities of ERP to the digital
world into a SaaS product.

Advanced Available to Promise:

What: Available to Promise Check in Sales and Production, Product Allocation, Back Order
Processing (BOP) for Sales and Production, Release for Delivery

Why: One of the main aspects to run your business efficiently is to know the availability of your
materials in sales and production processes. The new ATP check is running with high performance
by using the power of HANA in combination with easy to configure product allocation and
backorder processing procedures. This helps companies to handle the higher amount of orders that
must be managed in the digital world regarding mass customization and segment or lot size of one.

Innovation: Automation, Insight to action

Demand Driven Manufacturing:

What: Focusing on the actual demand, Decoupling Points, Intelligent inventory buffers, Analytics
to optimize core parameters to ensure the best material flow to optimize the inventory. Main idea
of including the concept of Machine Learning in this area is the continuously optimization of
planning parameters like decoupling points on BOMs and production lines.

Why: Central part of production capabilities of an ERP SaaS solution is the material planning.
This new approach helps companies to plan better regarding shorter customer delivery tolerance
times, shorter product lifecycles, and higher product customization and variety.

Innovation: Embedded Analytics, Automation, and Machine Learning

Transparent and compliant production execution

At manufacturing companies, the “Production execution” is a process with high varying degree of
complexity. According to the products they deliver, it varies from straightforward production
execution without complex machine connectivity or automation to a highly automated
Manufacturing Execution System. The goal is to cover the straightforward production execution
process with the SaaS offering. For the more complex implementations, we provide a powerful
integration to SAP ME and an interface to legacy MES systems.

Straightforward Manufacturing execution:

What: Straightforward execution with modern Fiori UI for Production Confirmation, Fiori App
for Bar Code Scanning in the Inventory Management.

Why: Companies which have a lower degree of complexity in the production execution will only
need an efficient straightforward software support in this area. It mainly provides transparency
regarding schedule, time, tasks, and the confirmation that the work is done. For these customers,
a feature-rich MES requiring a large configuration effort would be too complex.

Innovation: Automation, Ux, Complete the process

Integration to SAP Manufacturing Execution Suite:

What: Integration / Interface to Manufacturing Execution System – Integration to SAP ME and
Whitelisted API for non-SAP MES.

Why: Manufacturing processes can be very complex, with highly specific customer requirements.
These environments can present with a high degree of automation and machine connectivity, and
can require high performance with very short transaction times. In addition, in the future these
kind of software products might be deployed directly in the shop floor and not part of a cloud
delivery. The idea is to have the standardized processes in the MFG Cloud and the complex and
highly customized system OP. This MES system could then also be the layer for IOT regarding
the manufacturing E2E process.

Innovation: Industry 4.0 integration

IOT / Industry 4.0 in production execution:

What: Currently we see that Industry 4.0 regarding the manufacturing business process is mostly
discussed in the context of manufacturing execution. Intelligent machines enabling process
automation and status updates, decision support, quality assurance with big data analysis. IoT
enables also the creation and processing of intelligent materials that know where they are, what
business information belongs to them, and also gives information about the usage at the customer.

Why: Need to leverage the benefits about connected / intelligent products and machines. How
decisions in planning or execution can be optimized by using direct product or machine data in a
way that was not possible before.

Innovation: IoT, Industry 4.0

Efficient sales and operation planning by integrating advanced planning capabilities like SAP
Integrated Business Planning (Supply Chain)

Forecasting, Sales and Operation planning:

What: With the topic of demand driven manufacturing, a very modern way of material planning
will be included in the Manufacturing Cloud Edition. Sales and Operation planning using SAP
IBP will perfectly enhance these capabilities regarding an advanced demand planning. It is planned
to provide an integration with the Sales and Operation planning of SAP IBP which can be also
used as interface for other forecasting tools. Also in the demand driven approach the IBP solution
can help to better define parameters to control the planning like reorder limits, decoupling points
and inventory buffers.

Why: S&OP is the "function of setting the overall level of manufacturing output (production plan)
and other activities to best satisfy the current planned levels of sales (sales plan and/or forecasts),
while meeting general business objectives of profitability, productivity, competitive customer lead
times, etc., as expressed in the overall business plan.”

Innovation: Cloud Integration

Instant value for manufacturing business user by using an ERP SaaS offering

Instant value with Cloud deployment:

What: By providing the ERP processes for manufacturing companies in the cloud, the
manufacturing customer simplifies their IT infrastructure. Tightly integrated ERP and
manufacturing standard processes. Justification of digitizing manufacturing data: (1) in the
straightforward scenario, one system handles ERP and Manufacturing processing and (2) in the
complex scenario, the systems are tightly integrated and unified by a common front-end.
Standardized work instructions are pushed down to the shop floor through the common thin-client
interface, when they are needed and for the correct context (Operation, Material, etc). New
lightweight innovations are possible like worker planning with doodle, or other collaboration
capabilities.

Why: Real-time reporting of confirmations and goods movements fed by thin clients located at the
shop floor drive immediate insights and faster reaction times.

Innovation: Cloud Integration, Simplified infrastructure, Immediate Insights

Standardized, pre-configured and complete business content to run core processes (Sell, Produce,
Procure, and Finance) of manufacturing companies’ in the Cloud

End-to-end Manufacturing:

What: Tracking and transparency with Serial number and Batch management, High throughput
and insight to action in inventory management, embedded quality management, embedded
material genealogy (assembly history), Rework processes, Basic Warehouse Management,
Distributed Manufacturing (3d-Printing)

Why: Standardized manufacturing processes and best practices drive higher quality, more reliable
production repeatability.

Innovation: Integrated end-to-end processes in SaaS

Procure:

What: Provide the core Procure to Pay Process with focus on purchase components, raw materials
and production resources and tools. Scenarios like Procurement for direct materials, Requisitioning,
Subcontracting, Supplier performance, Ariba Integration (which is optional).

Why: Run your production end to end Procure to Pay is a must. It provides the components, raw
materials and production resources you need for building the products.

Innovation: Ux, Embedded Analytics, Ariba Network Integration

Sell:
What: Provide the core Order to Cash processes with Sales Order Management, Sales Quotation,
Billing, and Delivery.

Why: Run you production end to end you need to fulfill the orders of your customers, deliver the
products and bill them. Order to Cash is one of the needed pillar of the system.

Innovation: Ux, Embedded Analytics

Finance:

Core Finance processes which are needed to run customers’ business (“for closing the books”),
and additional capabilities relevant for manufacturing like production costs and inventory costs
(Material Ledger).

Integration:

Distributed Manufacturing: Integration to 3d Printing App (on HCP)

External Warehouse Management: Interface to SAP eWM or other warehouse systems

Global Trade Service (GTS): Interface

S/4HANA OP Integration (2-Tier): 2-Tier using S/4HANA MFG Cloud for production processes
for “standard” products with synchronized master data like Material Master, BOMs, and Business
Partner.