Table of Contents

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Foreword
19
SAP S/4HANA: A New ERP Platform
21
About This Book
22
Acknowledgments
23
PART I Foundation
25
1 Architecture Challenges of a Modern ERP Solution
27
1.1 Characteristics of a Modern ERP System
28
1.1.1 Even Higher Performance and Scalability
28
1.1.2 Consumer-Grade User Experience
30
1.1.3 Extensible Architecture
31
1.1.4 Intelligent ERP Processes
32
1.1.5 Simplified and Standardized Implementation
32
1.1.6 Cloud and On-Premise Deployment Models
33
1.1.7 Security, Privacy, Compliance, and Data Isolation
35
1.2 SAP S/4HANA Architecture Principles
35
1.2.1 Stable but Flexible Digital Core
36
1.2.2 Simplification with the Principle of One
36
1.2.3 Open for Innovations through Service Orientation
37
1.2.4 Modularization into (Hybrid) Integration Scenarios
38
1.2.5 Cloud First, but Not Cloud Only
39
1.2.6 Semantic Compatibility to Support Evolution with the Least Possible Disruption
40
1.3 Evolving a Cloud ERP System from the Best Possible Origins
40
1.4 Summary
41
2 Technical Architecture Foundation
43
2.1 Virtual Data Model
43
2.1.1 Core Data Services
44
2.1.2 Naming Conventions
44
2.1.3 Structure of the Virtual Data Model
45
2.1.4 Consumption Scenarios
47
2.2 ABAP RESTful Application Programming Model
49
2.2.1 Defining and Developing Business Objects
49
2.2.2 Defining Business Services
56
2.2.3 Runtime Architecture
59
2.3 Summary
66
3 Simplified Experience
67
3.1 User Experience
67
3.1.1 SAP Fiori
67
3.1.2 User Experience Adoption Strategy
68
3.1.3 SAP Fiori Launchpad
69
3.1.4 SAP Fiori Apps
73
3.1.5 SAP Fiori Elements Apps
74
3.2 Search
77
3.2.1 Search Architecture
78
3.2.2 SAP HANA Search Functionality
79
3.2.3 Enterprise Search Extensibility
80
3.3 Summary
82
4 Intelligence and Analytics
83
4.1 Analytics
83
4.1.1 Embedded Analytics Architecture
85
4.1.2 Embedded Analytical Applications
87
4.1.3 Modeling Analytical Artifacts
88
4.1.4 Analytics Extensibility
89
4.1.5 Enterprise Analytics Applications
91
4.2 Machine Learning
92
4.2.1 Machine Learning Architecture
93
4.2.2 Embedded Machine Learning
94
4.2.3 Side-by-Side Machine Learning Architecture
95
4.2.4 Machine Learning in SAP S/4HANA Applications
97
4.3 Intelligent Situation Handling
100
4.3.1 Example: Contract Is Ready as Source of Supply
100
4.3.2 Technical Background
102
4.3.3 Custom Use Cases
104
4.3.4 Message-Based Situation Handling
105
4.3.5 Intelligent Situation Automation
105
4.3.6 User Experience
108
4.3.7 Use Cases
111
4.4 Summary
112
5 Extensibility
113
5.1 Key User Extensibility
113
5.1.1 Stability Criteria for Extensibility
114
5.1.2 Use Cases across the Software Stack
116
5.1.3 Lifecycle Management
122
5.2 In-Stack Developer Extensibility
123
5.3 Side-by-Side Extensions
126
5.3.1 Introduction to Cloud-Native Applications
126
5.3.2 SAP BTP and Programming Models
130
5.3.3 Integrating with SAP S/4HANA Using the SAP Cloud SDK
131
5.3.4 API Consumption with the SAP Cloud SDK
132
5.3.5 Business Event Consumption in Extensions
136
5.4 Summary
136
6 Integration
139
6.1 SAP S/4HANA Integration Interface Technologies
139
6.1.1 Interface Technologies Overview
139
6.1.2 SAP S/4HANA API Strategy
141
6.2 SAP API Business Hub
141
6.3 Interface Monitoring and Error Handling
142
6.4 Communication Management in SAP S/4HANA Cloud
145
6.4.1 Communication Scenario
147
6.4.2 Communication User
147
6.4.3 Communication System
148
6.4.4 Communication Arrangement
148
6.4.5 Calling Inbound Services with User Propagation
148
6.5 Cloud Connector
149
6.5.1 Cloud Connector Principles
149
6.5.2 RFC Communication with SAP S/4HANA Cloud
151
6.6 Process Integration Technology
151
6.7 Event-Based Integration
154
6.7.1 SAP Event Mesh
154
6.7.2 Business Events Architecture
155
6.7.3 Business Events in SAP S/4HANA
156
6.7.4 Event Channels and Topic Filters
157
6.8 Data Integration
158
6.8.1 CDS-Based Data Extraction
158
6.8.2 Data Replication Framework
161
6.8.3 SAP Master Data Integration
162
6.9 Summary
163
7 Data Protection and Privacy
165
7.1 Compliance Baseline
166
7.2 Definitions and Principles
166
7.2.1 Basics in SAP S/4HANA
168
7.2.2 Data Subject Rights
169
7.2.3 Technical and Organizational Measures
171
7.3 Summary
173
PART II Application Architecture
175
8 Master Data
177
8.1 Product Master
177
8.1.1 Product Master Data Model
178
8.1.2 Product Hierarchy
182
8.1.3 Data Migration
184
8.1.4 Product SOAP Service API
185
8.1.5 Product Master Extensibility
186
8.1.6 Self-Service Configuration
187
8.2 Bill of Materials, Characteristics, and Configurations
187
8.2.1 Bill of Materials
188
8.2.2 Classification System
189
8.2.3 Variant Configuration
190
8.2.4 Variant Classes
192
8.2.5 Super BOM
192
8.2.6 BOM with Class Items
193
8.2.7 Variant Configuration Profiles
193
8.2.8 Object Dependencies in Variant Configuration
193
8.2.9 User Interface and Grouping
194
8.2.10 Extensibility
194
8.2.11 High-Level and Low-Level Configuration
194
8.2.12 Embedded Analytics for Classification and Configuration Data
195
8.3 Business Partners
197
8.3.1 Architecture of Business Partner Master Data
198
8.3.2 SAP S/4HANA System Conversion Scenarios
203
8.3.3 Data Protection and Policy
205
8.3.4 Extensibility
205
8.3.5 Business Partner APIs
206
8.4 Summary
207
9 Sales
209
9.1 Architecture Overview
209
9.2 Sales Documents Structure
211
9.3 Authorizations
212
9.4 Sales Inquiries and Sales Quotations
213
9.5 Sales Order Processing
214
9.6 Sales Contracts
215
9.7 Sales Scheduling Agreements
216
9.8 Claims, Returns, and Refund Management
217
9.9 Billing
217
9.10 Sales Monitoring and Analytics
219
9.11 Pricing
221
9.12 Integration
223
9.13 Summary
224
10 Service Operations
225
10.1 Architecture Overview
225
10.2 Business Objects and Processes in Service Operations
226
10.2.1 Field Service
227
10.2.2 In-House Repair
228
10.2.3 Service Contracts
228
10.2.4 Solution Business
229
10.2.5 Interaction Center
229
10.3 Master Data and Organizational Model
229
10.4 Data Model and Business Transactions Framework
231
10.4.1 Business Transactions Framework
231
10.4.2 Data Model
231
10.4.3 Transaction Type and Item Category
233
10.4.4 Common Functions for Service Transactions
233
10.4.5 Virtual Data Model
234
10.4.6 Public APIs
234
10.5 Integration
235
10.5.1 Data Exchange Manager
235
10.5.2 Backward Integration
236
10.5.3 Integration with SAP Field Service Management
237
10.5.4 User Interface Technology
237
10.6 Summary
238
11 Sourcing and Procurement
239
11.1 Architecture Overview
240
11.2 Procurement Processes
242
11.2.1 Direct Procurement
243
11.2.2 Indirect Procurement
244
11.3 Business Objects in Procurement
244
11.4 Central Procurement
246
11.5 Product Sourcing
249
11.6 Enterprise Contract Management
250
11.7 APIs and Integration
252
11.8 Analytics
257
11.9 Innovation and Intelligent Procurement
258
11.10 Summary
259
12 Logistics and Manufacturing
261
12.1 Architecture Overview
262
12.2 Organizational Units
264
12.3 Master Data Objects
265
12.4 Transactional Business Objects
266
12.5 Calculated Business Objects, Engines, and Process Controls
269
12.5.1 Inventory
269
12.5.2 Available-to-Promise
271
12.5.3 Material Requirements Planning
276
12.5.4 Demand-Driven Material Requirements Planning
278
12.5.5 Kanban
279
12.5.6 Just-in-Time Processing
280
12.5.7 Predictive Material and Resource Planning
283
12.5.8 Capacity Planning
285
12.5.9 Production Planning and Detailed Scheduling
286
12.6 Cross-Functions in Logistics and Manufacturing
286
12.6.1 Batch Management
287
12.6.2 Quality Management
287
12.6.3 Handling Unit Management
290
12.6.4 Serial Number Management
291
12.6.5 Inter-/Intracompany Stock Transport
292
12.6.6 Value Chain Monitoring Framework
292
12.7 Logistics Integration Scenarios
292
12.7.1 Warehouse Management
293
12.7.2 Manufacturing Execution Systems
293
12.8 Summary
293
13 Extended Warehouse Management
295
13.1 Architecture Overview
295
13.2 Organizational Structure
297
13.3 Master Data
298
13.4 Stock Management
299
13.5 Application Components
301
13.6 Monitoring and Reporting
303
13.7 Process Automation
304
13.8 User Interface
305
13.9 Technical Frameworks
305
13.10 Warehouse Automation
306
13.11 Summary
307
14 Finance, Governance, Risk, and Compliance
309
14.1 Finance Architecture Overview
311
14.2 Accounting
313
14.2.1 General Ledger
316
14.2.2 Fixed Asset Accounting
316
14.2.3 Inventory Accounting
318
14.2.4 Lease Accounting
320
14.2.5 Service and Sales Accounting
321
14.2.6 Group Reporting
325
14.2.7 Financial Closing
331
14.3 Tax and Legal Management
333
14.4 Financial Planning and Analysis
335
14.4.1 Budgetary Accounting
335
14.4.2 Predictive Accounting
337
14.4.3 Financial Planning
341
14.4.4 Margin Analysis
346
14.4.5 Overhead Cost
349
14.4.6 Production Cost
351
14.5 Payables Management
354
14.5.1 Supplier Invoicing
354
14.5.2 Open Payables Management
354
14.5.3 Automatic Payment Processing
354
14.6 Receivables Management
356
14.6.1 Open Receivables Management
357
14.6.2 Credit Evaluation and Management
361
14.6.3 Customer Invoicing
363
14.6.4 Dispute Resolution
365
14.6.5 Collections Management
366
14.6.6 Convergent Invoicing
367
14.6.7 Contract Accounting
372
14.7 Treasury Management
376
14.7.1 Advanced Payment Management
376
14.7.2 Bank Integration Using SAP Multi-Bank Connectivity
380
14.7.3 Connectivity to Payment Service Providers and Payment Gateways
381
14.7.4 Cash Management
382
14.7.5 Treasury and Risk Management
386
14.8 Central Finance
390
14.8.1 Replication
392
14.8.2 Mapping
395
14.8.3 Accounting Views of Logistics Information
396
14.8.4 Temporary Postings
398
14.8.5 Centralized Capabilities
401
14.8.6 Cross-System Process Control
401
14.9 Finance Extensibility
405
14.10 Governance, Risk, and Compliance
405
14.10.1 Overview of SAP GRC Solutions
406
14.10.2 SAP GRC Solutions and SAP S/4HANA Integration
408
14.11 Summary
413
15 Localization in SAP S/4HANA
415
15.1 Document and Reporting Compliance
415
15.1.1 Architecture
416
15.1.2 Outlook
420
15.2 Localization as a Self-Service for SAP S/4HANA Cloud
421
15.2.1 Components of Localization as a Self-Service
421
15.2.2 Extensibility Scenario Guides and the Community
422
15.3 Summary
423
PART III SAP S/4HANA Cloud-Specific Architecture and Operations
425
16 Scoping and Configuration
427
16.1 Reference Content
427
16.2 SAP Central Business Configuration
429
16.2.1 Organizational Setup
430
16.2.2 Business Processes
431
16.2.3 Business Adaptation Catalog
432
16.2.4 Constraints
435
16.2.5 From Scoping to Deployment
436
16.2.6 Reference Configuration Content Updates
438
16.2.7 Localization of Business Configuration
439
16.2.8 Scope-Dependent Technical Objects
440
16.3 Summary
440
17 Identity and Access Management
441
17.1 Architecture Overview
441
17.1.1 Identity Management
442
17.1.2 Authentication
443
17.1.3 ABAP Authorization Concept
444
17.1.4 Identity and Access Entities and Their Relationships
445
17.1.5 Developer Extensibility
448
17.1.6 Identity and Access Management Tools
449
17.1.7 SAP Fiori Pages and Spaces
451
17.2 Managing Users, Roles, and Catalogs
452
17.2.1 Communication Arrangements
453
17.2.2 PFCG Roles and Business Catalogs
453
17.2.3 Management of Users, Roles, and Catalogs by Customers
454
17.2.4 Lifecycle Changes of SAP-Delivered Roles and Catalogs
455
17.2.5 Auditors
456
17.3 Summary
458
18 Output Management
459
18.1 Architecture Overview
459
18.2 Printing
460
18.3 Email
462
18.4 Electronic Data Interchange
463
18.5 Form Templates
463
18.6 Output Control
464
18.7 Summary
467
19 Cloud Operations
469
19.1 SAP S/4HANA Cloud Landscape
469
19.2 Data Centers
472
19.3 Multitenancy
474
19.3.1 System Architecture of SAP S/4HANA
475
19.3.2 Sharing the SAP HANA Database System
476
19.3.3 Sharing of ABAP System Resources
477
19.3.4 Table Sharing Architecture in Detail
478
19.4 Software Maintenance
480
19.4.1 Maintenance Events
481
19.4.2 Blue-Green Deployment
481
19.5 Built-In Support
483
19.5.1 Support Journey without Built-In Support
483
19.5.2 Built-In Support Architecture
484
19.5.3 Comparison of Support Interactions
486
19.6 Summary
488
20 Sizing and Performance in the Cloud
489
20.1 Performance-Optimized Programming
489
20.1.1 Minimal Number of Network Round Trips and Transferred Data Volume
490
20.1.2 Content Delivery Networks
492
20.1.3 Buffers and Caches
492
20.1.4 Nonerratic Performance
493
20.2 Sizing
493
20.2.1 Sizing SAP S/4HANA Cloud, Public Edition
494
20.2.2 Sizing for SAP S/4HANA Cloud, Private Edition
496
20.3 Elasticity and Fair Resource Sharing for SAP S/4HANA Cloud, Public Edition
497
20.3.1 Elastic Scalability
497
20.3.2 Dynamic Capacity Management
498
20.4 Sustainability
500
20.5 Summary
501
21 Cloud Security and Compliance
503
21.1 Network and Data Security Architecture
503
21.1.1 Access Levels
504
21.1.2 Resource and Data Separation
505
21.1.3 Resource Sharing
506
21.1.4 Data Security and Data Residency
506
21.1.5 Business Continuity and Disaster Recovery
506
21.2 Security Processes
506
21.3 ABAP Application Server Security
508
21.4 Certification and Compliance
508
21.4.1 SAP Operations
509
21.4.2 SAP Software Development
509
21.5 Summary
510
22 Outlook
511
The Authors
513
Editors
513
Authors
514
Index
531