An S/4HANA implementation brings many new functionalities for purchasing - this applies to both operational and strategic purchasing. However, there are also new cross-module and cross-divisional features that can be used in purchasing as well as in other areas. For example, the use of FIORI applications represents various simplifications, enhancements and graphical possibilities compared to GUI transactions. FIORI also makes SAP applications user-friendly on all end devices for the first time, since the FIORI interface works independently of the device.
Another achievement in purchasing under S/4HANA is the transformation of the architecture: the satellite systems Supplier Relationship Management (SRM) and Supplier Lifecycle Management (SLC) will be integrated into S/4HANA on the one hand, as well as replaced by cloud platforms such as Ariba or Fieldglass. A multibackend connection can be mapped via Central Procurement, in which an S/4HANA is defined as a hub.
Master data is also organized differently in S/4HANA: Table structures have been partially consolidated or adapted, although the familiar tables are still available via so-called views.
Master Data - what´s new?
For purchasing, there are some changes within the master data. In detail, they affect the following objects:
Business Partner:
Suppliers and customers become business partners with correspondingly distinct business partner roles. In principle, all persons and organizations in which a company has a business interest are understood as business partners. Business partners are maintained centrally in one transaction - BP - making transactions XK0x, XD0x, FK0x, FD0x, etc. obsolete. Depending on the respective business partner role, corresponding tabs and fields must be maintained.
A conversion to Business Partner is mandatory - as part of the S/4HANA conversion or as a preliminary project already in the ECC system. Integration takes place with the help of customer-vendor integration (CVI). CVI can be understood as a kind of data switch that synchronizes the ECC vendors/customers with the new overarching object business partner.
It is recommended to plan and execute the Business Partner conversion project several months in advance of the actual S/4HANA implementation. Although the conversion to Business Partner is extensive and time-consuming, it also brings benefits because redundancies and duplicate data maintenance are avoided thanks to central data management. Assigning documents - for example, an invoice in accounting - is also simplified because a central business partner number is maintained with the business partner.
Material:
A new simplified data model is introduced, where the data is stored in the central table MATDOC. The 11 inventory tables, 13 inventory development tables and the master data tables in inventory aggregates MARD and MARC are merged in the MATDOC table. In the MARD and MARC tables, only master data without inventory aggregate fields are stored in S/4HANA. Merging several tables leads to an increase in performance; evaluations also run faster.
The length of the material number can be extended from the previous 18 characters to up to 40. In doing so, the material number becomes alphanumeric from 18 characters.
A new material type SERV is introduced for service procurement. Compared to other material types, SERV is somewhat leaner, as irrelevant fields in the material master are hidden.
The material ledger becomes mandatory in S/4HANA.
Purchasing info records:
An enhancement: In the info record, a checkbox additional field "Aut. Source Determination" is introduced for automatic source determination: A source list entry is thus no longer mandatory.
Quota Arrangement:
Quota arrangement no longer has to be activated separately in the material master, but is always taken into account.
Source list:
Under Simplified Sourcing, maintenance of the source list is no longer mandatory, although it is still necessary when using it for time-dependent sources of supply.
Purchasing category:
A new master data is introduced in S/4HANA, namely the purchasing category: a new entity for structuring expenses, which is to be understood as a superior level between commodity groups, suppliers and teams. It is controlled in FIORI and is not available in the GUI. Purchasing categories are used, for example, in supplier evaluation or as a filter criterion in purchasing analyses. Furthermore, suppliers and employees can be assigned to certain purchasing categories.
New functions can also be found in other areas of purchasing under S/4HANA. In the next parts of our series of articles on digital procurement, we will provide an overview of innovations in operational and strategic purchasing. You can also visit our webinar on Digital Procurement, in which CONSILIO experts present the innovations in purchasing in detail.
With an S/4HANA implementation, users in purchasing are faced with a number of changes - for example, S/4HANA offers new functions that significantly enhance the user experience and simplify the daily work of purchasers. We support you during implementation and show you which innovations you can benefit from.
