SAP Sourcing & Procurement

The buyer's area of responsibility is changing rapidly due to digitalization. Operative procurement processes are to be automated as far as possible and strategic tasks are to be supported by the system as best as possible.

In order to achieve the purchasing goals of "reducing process costs" and "increasing purchasing success" in your company, digitalization and state-of-the-art support in the daily doings of the buyer are indispensable.

SAP Sourcing & Procurement in S/4HANA offers you considerable advantages over the previous version SAP MM in SAP ECC. You will find a wide range of supplier relationship management and supplier lifecycle management functionalities in S/4HANA Core.

In addition, there are strategic tools and reporting options perfectly tailored to purchasing.
CONSILIO helps you to successfully implement your S/4HANA implementation and get the most out of your purchasing opportunities.

SAP Sourcing & Procurement functionalities

Long gone are the times in which the procurement of indirect goods was not in the focus of the enterprises. User-friendly, "Amazon-like", automated, compliant - just a few of the bullet points that an indirect procurement process should fulfill today. This is exactly what SAP is now implementing with SAP Sourcing & Procurement:

Creation of purchase requisitions

While creating purchase requisitions in SAP ERP (MM) was still a complicated matter, SAP now uses three Fiori apps to satisfy every user group.

  • For occasional users, SAP offers access via the Fiori app "Create purchase requisition" with which an "Amazon feeling" is created through the comprehensive catalog search and the possibility of adding free text articles
  • The Fiori app "Manage Purchase Requisition - Professional" offers the usual scope of free text, material, service material and limit item.  All of this in a new Fiori interface
  • For those who do not want to miss the transaction ME51n or its full range of functions, the familiar GUI transaction is still available as a Web-GUI

Manage purchase requisitions

SAP can also create contracts, tenders, reservations or purchase orders directly from purchase requisitions and assign sources of supply with just one Fiori App: "Manage Purchase Requisitions"

Catalog management

  • A major innovation in S/4HANA is the integrated catalog management. You can now create your own catalog articles, connect external supplier catalogs via OCI and make them available to your users via a cross-catalog search, provided your external catalogs meet all technical requirements
  • You can also extend your catalog functionality with the SAP add-on Lean Catalog or Ariba Catalog

Flexible Workflow

  • Previously, you could have your documents, such as purchase requisitions or purchase orders, approved via the release strategy
  • With the flexible workflow, SAP now offers a new framework to simplify the creation of approval processes via Fiori Apps
  • The new flexible workflow offers an adequate alternative to the conventional release strategy
  • You can find more information here

Lean Services

The new service processing "LeanServices" offers considerable advantages over the previous SAP service processing:

  • Services can be created with the new material type SERV
  • The time-consuming maintenance of service master records is no longer necessary
  • Activity recording can be easily performed by any end user in a Fiori app


The procurement of direct material can be processed both via individual orders and via scheduling agreements. Both variants continue to support subcontracting and consignment. MRP Live creates either purchase requisitions or scheduling agreement schedule lines. But what innovations does SAP bring with S/4HANA?

MRP Live

Material requirements planning in SAP S/4HANA plans exclusively at plant and MRP area level. Planning at storage locations is no longer supported.

Source of supply determination

Sourcing through the planning run without source list is now possible.

The following search logic is used by the MRP:

  1. Quotation + Order book with disposition indicator
  2. Order book with MRP indicator
  3. Scheduling agreements
  4. Contracts
  5. Info record with indicator "Automatic source determination" (new)

Delivery schedule

Scheduling agreements can now also be created using Fiori apps. Approval can be carried out using the new flexible Workflow

Rebate processing (condition contracts)

Rebate processing in SAP is carried out via condition contracts. Bonuses can be individually customized according to the requirements of the company. Through your integrated monitoring, the achievement of bonuses can be tracked by the buyer and then be passed on to the supplier via settlement documents.


Strategic purchasers are now also finding their way more and more into S/4HANA.

  • Tenders can be created over a Fiori-App and sent to several suppliers, allowing price comparisons to be made
  • Rebate agreements can be stored in the system via condition contracts, monitored and automatically processed via FI integration
  • Suppliers can now also be evaluated and developed directly in S/4HANA. Keyword: supplier evaluation and activity management!

Within inventory management you can record and display your physical stocks. In addition, inventory changes are updated on both a quantity and value basis.

  • Within Inventory Management (IM), you can use storage locations to manage your plant stocks.
  • Goods movements continue to be recorded via the MIGO transaction or via a new Fiori app.
  • Physical inventories can be carried out using the methods of annual inventory count, sampling inventory or cycle counting.
  • To use a more detailed warehouse management, it is necessary to use SAP WM or SAP EWM

Logistical invoice verification forms the interface for the following payment activities in Finance:

  • Invoices can be captured via MIRO, Fiori or automatically via OCR tools
  • Deviations from the order are sent for approval via the flexible workflow

You use several backend systems such as ECC and/or S/4HANA and want to create only one entry point within the purchasing process for your requisitioners, approvers and buyers? Use the SAP S/4HANA Central Procurement (Procurement Hub) to bundle all your operative purchasing activities in one system. In a S/4HANA system defined by you, the hub function is activated and all other SAP backend systems are connected.
The following functionalities are available:

  • Central Requisitioning
  • Central Contract Management
  • Central Purchasing
  • Central Sourcing
  • Central Invoicing

Learn more about Central Procurement

Our customers:

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Stefan Oberlik - CONSILIO GmbH

We support you in automating your operative procurement processes. Thus, your company is able to reduce process costs and to increase the purchasing success in the long run.

Stefan Oberlik, Managing Consultant Digital ProcurementCONSILIO GmbH

Automate the procurement process!

Use our experience!

Contact us now
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