SAP has taken a gutsy approach to modernizing the entire code base of their 30+ year old ERP. This is bringing an unprecedented wave of changes in the SAP landscape. For instance, in the last few months, Simple Logistics was split up into Simple Supply Chain, HR, etc. Then the "Simple" term has been dropped summarily and the new name for Suite on HANA's successor is S/4 HANA Enterprise Management. I think the following graphic best describes what SAP is up to. The way forward seems to be to merge SAP add-on solutions such as Ariba and CRM into the new ERP core called S/4 Enterprise Management.

With everything going on the Cloud, "merging" would mean more tighter coupling between these apps, in terms of data usage and data modelling.

Advantages for the customer

• Revamped business processes such as major simplifications in Finance, Materials Resource Planning (MRP), Inventory Management, Capacity Planning, Sales & Distribution, and Procurement.
• Faster / guided configuration to aid agile deployments.
• Seamless integration for Ariba, BPC and other SAP platforms.
• Reporting/BW with a wild number of flexible options.
• Built in support for Big Data using Spark on Hadoop, Hive or SybaseIQ.
• Finally all the benefits of HANA's in-memory system are being realized. All of this is necessary to keep SAP relevant in the age of disruption.

The Dark Side

The disadvantage of this is that, as SAP continues to rapidly innovate, the risk is high of finding yourself on the wrong side of the technology march. For example, on my current S/4 HANA 1511 project, we deployed Fiori on MS SQL Server. Then in December 2015, SAP pulled support for all non-SAP databases. This was an evil move and it forced us to re-implement all the apps, when the Fiori machine had to be re-built on MaxDB. SAP's approach resembles Google's to keeping apps in beta such as Gmail. Thus allowing the company to continuously innovate.

In conclusion, I am surprised how much our customers' appetite for risk has changed. Quite a few are bravely accepting the changes that SAP is bringing forth. Perhaps it's the age old debate whether IT is a key enabler of business or just supports it.

By Sonja Winschel & Sven Denecken

In the first two blogs of this series we covered Co-Innovation as a state of mind that comes with the shift to the subscription economy on the one hand. On the other hand we pointed out how Co-Innovation helps understand the value levers of business and how technology can contribute to them with SAP S/4HANA as an example. You can find the second blog here: http://scn.sap.com/community/s4hana/blog/2015/10/13/co-innovation-leads-to-co-validation-part1--the-value-lever-of-sap-s4hana

Today we will turn to some examples of Co-Innovation done right and the win-win situation if it’s done right.

Digitalization requires re-thinking

Even though the topic of digitalization still is the cause of many debates, there are no doubts that the pace of technological change has severely accelerated over the last years. Constantly evolving customer demands rapidly change the marketplace. Studies show that every third company expects a severe or even fundamental change of their business model until 2020. With the Co-Innovation approach the barriers brought by this change can be overcome easier and therefore helps customers to respond to the digital transformed world.

If enterprises do not keep up with the technological trends like cloud, business networks, big data and mobile, 40% of the S&P 500 will no longer exist in the next 10 years (see also https://www.capgemini.com/resource-file-access/resource/pdf/The_Digital_Advantage__How_Digital_Leaders_Outperform_their_Peers_in_Every_Industry.pdf).

Early adopters of the digital transformation are already now able to yield benefits from their shift to digital innovations and derive significant financial advantages compared to their industry competitors. Co-Innovation is the key to open the path for customers to change the way they work, adjusting to new business models and being prepared for the trends of tomorrow’s digital economy.

Listen, divide and conquer

There are several ways to listen and react on potential co-innovation ideas. One driving aspect can be studies from research companies. In addition networking with multiple business experts from customers and partners as well as acting as thought leaders will add good indicators to agree on dedicated Co-Innovation projects.

As every Co-Innovation interaction works differently, the process is not predetermined nor inflexible. It is thought to be individually adjusted to each defined topic in a “not one size fits all” approach. Overall we differentiate between three innovation types, strategic, enriching and transformational innovation.

First the strategic innovation focuses on the long-term vision of future breakthrough ideas and ground breaking innovation. It is a very high level view on what might drive the business growth in the upcoming years. It brings up new business models and processes, which could make the difference. This type creates the most noticeable business value.

Contrary to the strategic innovation, which is about new objectives, the enriching innovation revolves around improving, enhancing, and optimizing already existing solutions. It is a short- and mid-term amendment achieved in a continuous and iterative cycle to meet the changing business needs. This type of innovation also creates valuable business impact.

Last but not least the transformational innovation is a necessary component to build the framework for the other two innovation types. For instance, with this type companies follow the trendsetters to keep up with the changing market requirements. Often it is difficult to assess the generated value, because there might be no direct impact for the operational business. More precisely, the basic elements of a company, such as processes, technologies, and legal requirements, are what the transformational innovation is all about.

Pick the best-fit methodologies for your project

We have already learned about the Design Thinking methodology as a part of a suite of tools to help solve problems and unlock potential in the Co-Innovation process. Now we want to have a look at the Business Model Innovation. The focus of this methodology is to understand the economic viability, both from vendor’s and customer’s perspective. Digging deeper into business models and creating a business model canvas per Co-Innovation topic can be one outcome. The stages to run through having those insights in focus are design, test and run. For example, in the test stage a minimal viable scope can be evaluated and verified with the ones who should gain benefit.

To derive the most out of customer engagement via Co-Innovation projects, it is important to involve business and IT users in a collaborative, iterative, and sustainable process from the beginning. The earlier the engagement the more space to influence the future roadmap – both on SAP side as well as on customer side. With the figure above we want to outline three stages and an exemplary process of an early customer engagement. As Co-Innovation takes place mainly in the first two phases, we will explain them shortly. In the first phase it is all about inspiration. Brainstorming on expectations of future users and new processes are crucial to facilitate user-centric design and business value, e.g. via Design Thinking. In the ‘Plan and Design’ phase close collaboration with customers can focus on building mock-ups, running demos, and evaluating business models. By understanding customer needs, SAP significantly boosts the efficiency and effectiveness of the product development process.

The Business Model Innovation methodology was used in an example of a successful Co-Innovation project. The idea was to illustrate what SAP, its customers, partners, and the consumer would need in order to be part of the ‘Buy now’ trend. Giving consumers the possibility to buy their goods within their used social media environment and without having to enter their information again and again, makes lives easier for them but also brings new challenges for enterprises.  In a workshop we were able to work hand-in-hand with affected stakeholders to elaborate how processes and functionalities should be adjusted in order to overcome these challenges. Afterwards use cases have been defined successfully, followed by business model canvas creation. This is an example for a strategic innovation that completed the ‘Ideate’ and ‘Plan & Design’ phase in order to bring ideas to life.

Summary and Outlook

Co-Innovation is a flexible approach which needs to be individually adjusted per topic and innovation type. With the help of different methodologies the impact and speed of Co-Innovation projects can be significantly increased. The necessity for companies to be prepared for the digital economy requires to start now.

There is an updated Co-Innovation @S/4HANA brochure available , where you can read about these topics and find out more.

Want to engage right away? Looking forward to your co-innovation engagement @ MAILTO: s4hana-coinnovation@sap.com

...and follow us for frequent updates @SDenecken and @BeSchulze

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Co-innovation leads to co-validation (Part1) - the relevance of co-innvation

Co-innovation leads to co-validation (Part2) - the value lever of SAP S/4HANA

Intelligent Services: Create a smart and intelligent federation of systems

Today, we would like to share with this blog a work we recently intensified – Intelligent Services for S/4HANA. It is all about how we continue to simplify interactions across multiple business systems to make it smarter for end-users with S/4 by concepts of machine learning - which we call intelligent services.

We all know business processes are complex. One event creates many repercussions in several other areas, almost like a ‘rock thrown into a pond creating ripples’. Thousands of personnel, logistics, sales, procurement, financial and other events happen in a company every day. Inter-dependencies between systems are common and known, but mostly manually implemented. And you cannot solve this just with workflows – you need to build some intelligence in.

Imagine the situation where upcoming new hires have affects to financial and project systems. Consider a project manager who has pressure on staffing a project. She would like to understand when the new hires are available after onboarding and IT setup to plan the project accordingly. Automated and context rich notifications for line managers, project managers or assistants are very beneficial in that case.

Another example - hiring offers are out, but employees have not yet started. It cannot be seen in the books and the impact to budget is not reflected in the financial system, which certainly is of high interest for controllers in this area. Controllers may have to run a new forecast and line managers should be notified when the forecast shows a budget overrun.

With Intelligent Services, we have an open and flexible platform bulid in the cloud, which spans across SAP cloud solutions and beyond. Already SuccessFactors is leveraging this technology today. It is based on events and simple rules that are configurable and flexible. Software responds to business events quickly and create follow-up actions on your behalf supporting end-users and taking complexity out – bringing intelligence in.

We are working on extending the reach of Intelligent Services to S/4HANA, starting with HR and extending it to Finance, Projects and ultimately the entire Suite. Events and preconfigured actions will be defined upfront. But at the end, the power of the entire concept will be apparent when customers can model events flexibly and customer-specific. So all needed process steps and experts are intelligently combined.

With Intelligent Services, S/4 Cloud will get even smarter. Be part of this journey, be our guest and co-innovate with us on this exciting concept. Shape with us this future innovation and make S/4HANA an efficient and intelligent system.

Reach out to us to co-innovate. Want to engage right away? Looking forward to your co-innovation engagement @ MAILTO: s4hana-coinnovation@sap.com

More Information? First check out the S/4HANA training and content hubs, as well as our very active S/4HANA community here on SCN… and also discover.sap.com/s4hana for more

Looking forward to see you in Orlando! Follow us via@SAPand #S4HANA, or myself via@SDenecken

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Check out SAP S/4HANA @SAPPHIRENOW 2016 - be prepared #S4HANA prep for #Sapphire - on the transition to SAP S/4HANA

If you’re looking for an SAP S/4HANA expert, SAPPHIRE NOW is the place! Stop by our demo stations in the Line of Business Campus to talk with the experts and learn the latest news. We’ll have seven different stations, covering a variety of topics:

1.  SAP S/4HANA Enterprise Management (LB351)

Start here for an overview of SAP S/4HANA, the digital core for enterprises in today’s digital economy. You’ll see how massive simplification can unlock value across the enterprise.

2.  Journey to SAP S/4HANA (LB349)

If you want to learn how to get started with SAP S/4HANA, or how to accelerate your adoption plans, don’t miss this demo station. We’ll help you map your end-to-end journey, whether you’re a long time customer or just getting started. Get the clarity you need for faster time-to-value.

3.  Extended Supply Chain with SAP S/4HANA (LB346)

With the 1511 release last fall, we delivered a massive wave of innovation across lines of business. Learn how SAP S/4HANA can help you gain deep visibility across your supply chain, manufacturing, asset management, and product development operations.

4.  SAP S/4HANA Finance and SAP S/4HANA HR (LB347)

Interested in driving your company’s success now and into the future? Experience how SAP S/4HANA can help you gain the financial and talent insights your company needs in today’s competitive market.

5.  SAP S/4HANA Cloud (LB350)

Interested in cloud offerings? Come learn how SAP S/4HANA Cloud can deliver value for your organization. Whether you’ve got a cloud-first, cloud-only, or hybrid strategy, our experts will lay out your options. Come and see how SAP S/4HANA Cloud can help you realize your digital transformation goals.

6.  Cloud Deployment of SAP S/4HANA (LB348)

Interested in simplifying and optimizing your IT landscape to create a foundation for innovation? Here, you’ll understand how deploying SAP S/4HANA solutions using SAP HANA Enterprise Cloud (HEC) can help you implement faster and realize lower total cost of ownership.

7.  Industry Scenarios with SAP S/4HANA (LB345) – Come hear from the experts how reimagined business processes can lead to higher performance across a variety of industry scenarios. From product innovation and agile manufacturing, to responsive supply networks, our experts will show you how SAP S/4HANA is delivering new value across end-to-end business processes.

Get the most out of your trip to Orlando and start building your SAPPHIRE NOW agenda. Be sure to check out the recommended SAP S/4HANA sample agenda or the SAP S/4HANA for IT Professionals sample agenda.

Interested in S/4HANA Cloud? Considering how it might fit in your landscape? We realize that customers have different strategies, policies, and approaches to leveraging cloud solutions. If you’re coming to SAPPHIRE NOW, add these three sessions to your agenda to learn more.

1.  Speed Your Transformation with a Digital Core in the Cloud (LB33750)

Learn how you can deploy a digital core in the cloud with SAP S/4HANA Cloud. Sven Denecken and Bert Schulze will be your guides as you explore the opportunities to optimize your operations and leverage the SAP Fiori UX.

2.  Target the Best Customers with SAP S/4HANA Marketing Cloud (LB33751)

Execute marketing campaigns more efficiently. Engage with customers better by developing a deeper understanding of their needs and wants. Discover prospects, develop targeted segmentation, and close the gap between market strategy and execution with SAP S/4HANA Marketing Cloud.

3.  Deploy a Digital Core in the Cloud (LB33766)

Discover what you need to know about launching your cloud strategy. Learn about the options for deploying SAP S/4HANA in the cloud, whether you are planning a hybrid deployment model for a particular line of business or engaging in an enterprise-wide move to the cloud. Examine the end-to-end journey, from trials to final rollout.

Don’t forget: To make the most of your trip to Orlando, start building your SAPPHIRE NOW agenda. Be sure to check out the recommended SAP S/4HANA sample agenda or the SAP S/4HANA for IT Professionals sample agenda.

With the TOP Simplification List Items approach we want to start a S/4HANA SCN Blog series to provide more information about dedicated simplification items. Simplification items where we assume that any customer project has to deal with. The following S/4HANA SCN Blog is collecting these TOP Simplification Items with the links to the dedicated S/4HANA blogs.

The TOP Simplification List Items

Within this blog we want to provide additional information regarding the Simplification Item: Output Management

Simplification List Item Description

• SAP S/4HANA introduces a new style of output management.
• The new output management replaces all legacy frameworks (SD Output Control, FI Correspondence, FI-CA Print Workbench, CRM Post-Processing Framework).
• However, it is not possible to adapt all business applications at once.  Therefore, there will be a transition phase during which the old and the new output management will coexist.
• Note: Even if a business application has been adapted, it may still ship form templates using legacy technologies. In the future, forms of this type will be replaced with PDF-based print forms using fragments.

Business Impact

Business applications like Billing and Purchasing already use the new output management and require a setup of the new output management in order to be able to output business documents.

Required and Recommended Action(s)

Follow the technical setup and customizing activities for the new output management.

Refer to SAP Notes 2292571 and 2292539.

For more details see the PDF attached to the following SAP Note:

http://service.sap.com/sap/support/notes/2228611

In good tradition we will extend the FAQ series for SAP S/4HANA, thanks again to many feedback received. Let´s dive right into the Q2/2016 update.

What is the right reporting option in SAP S/4HANA: SAP BW powered by HANA, or SAP S/4HANA Core Data Services?

Here there is not right or wrong. SAP BW powered by HANA will continue to represent the preferred solution for strategic enterprise data warehousing to help customers consolidate data from different sources (including SAP and non-SAP data sources) and get a consistent view across the enterprise.

SAP S/4HANA Core Data Services built in SAP S/4HANA, delivers real-time operational reporting capabilities covering all typical analytics use-cases in the context of the suite.  You can do all your operational reporting and process analytics covering all typical business suite analytics use-cases with the CDS views. This is the new “HR IS”, for embedded reporting.

SAP BW powered by HANA will continue to act as SAP’s central enterprise data warehouse solution. SAPS/4 HANA and SAP BW on HANA complement each other. This document will give you more details on this topic.

What is the authorization concept in SAP S/4HANA? It is the same as ECC 6.0?

SAP S/4HANA, on-premise edition 1511 generally relies on the user management and authentication mechanisms provided with the SAP NetWeaver platform, in particular the SAP NetWeaver ABAP Application Server and the SAP HANA Platform. Therefore, the security recommendations and guidelines for user administration and authentication as described in the SAP NetWeaver Application Server ABAP Security Guide and SAP HANA Platform also apply to SAP S/4HANA.

In addition to these guidelines, we include information about user administration and authentication that specifically applies to SAP S/4HANA in the following topics:

• User Management This topic lists the tools to use for user management, the types of users required, and the standard users that are delivered with SAP S/4HANA.
• User Data Synchronization SAP S/4HANAcan share user data with other components. This topic describes how the user data is synchronized with these other sources.
• Integration into Single Sign-On Environments

See the Security Guide for SAP S/4HANA, on-premise edition 1511

Concerning the migration from SAP ECC to S/4HANA, what are the options and services offered by SAP for the migrations?

To move from an SAP ECC System to SAP S/4HANA, we have to consider different implementation scenarios supporting the move to SAP S/4HANA

• Scenario 1 - System Conversion: Existing SAP Business Suite Customer who wants to move to SAP S/4HANA
• Scenario 2 – Landscape Transformation: Existing SAP Business Suite Customer who want to optimize their system landscape and move to SAP S/4HANA
• Scenario 3 – New Implementation: New SAP customer who want to move from legacy systems to SAP: 
• See more details in the cookbook“The road to SAP S/4HANA”

Considering the Data Migration, SAP offers with SAP Activate for SAP S/4HANA a innovation adoption framework that expedites SAP S/4HANA implementations throughout the customer lifecycle. It offers ready-to-run digitized business and technology processes, guided configuration, and next-generation methodology.

The data migration content from SAP Activate to SAP S/4HANA, on-premise edition allows the customer to extract and analyze selected data from virtually any source system. See also for more details the SAP service market place for SAP Best-Practice for data-Migration

Scenario 1: Procedure of System Conversion

Is there to possibility to have Custom Code also in SAP S/4HANA Cloud?

We want to answer this question in two ways. On the one hand side, this question might refer to a customer who runs SAP ECC and considers moving into SAP S/4HANA Cloud.

On the other hand side, the question is of pure technical nature.

There are two transformation scenarios for moving into SAP S/4HANA Cloud which are “New Implementation” and “Landscape Transformation. Both scenarios imply a new system installation in SAP Data Centers. Customers can initially migrate business data into the system and further on are able to integrate their SAP S/4HANA Cloud instance with other SAP Cloud solutions and with on-premise solutions. Having said this, the consequence is that there is no option to move any ABAP-code from any SAP ECC system to SAP S/4HANA Cloud.

Instead the way forward has much to do with the technical options and concepts of extending SAP S/4HANA Cloud, which is now referred to in the second part of the answer.

SAP offers two flavors of extensibility in the cloud, which are complementary and can be combined:

• Side-by-side extensibility is the capability to extend the applications by new functionality implemented on HCP – in Java and server-side JavaScript are the current development languages. Developers are the target group.
• In-app extensibility is the capability of extending the existing S/4 HANA applications. The target group is the business expert in the company or from a consulting partner (aka key user). The tool set consists of web-based apps for end-to-end creation of extensions, for example custom fields, custom logic, etc.

More information can be found here: http://scn.sap.com/community/s4hana/blog/2015/07/15/s4hana-extensibility-the-new-white-paper

Is there any changes in the Simplification list coming with the feature pack stacks FSP01, FSP02 ... ?

SAP has published a simplification list for SAP S/4HANA on premise 1511. The Simplification List consists of simplification items with the focus on what has to be considered by customers in an implementation / system conversion project from SAP ERP 6.0 to SAP S/4HANA, on-premise edition.

New innovations that also can result in changes of the Simplification list are shipped on a yearly basis for each mayor release of SAP S/4HANA. The next major release is planned for end of 2016. For more information about the release strategy check this blog that will give you more information.

Note that the simplification list is not a replacement for the product documentation but a complement. The document – Feature Scope Description – is accessible here. SAP will provide a new version for all Feature Pack Stack.

Keep the feedback and your questions coming, we will prioritize accordingly and update our FAQ for you. Keep the feedback coming.
Also check frequently sap.com/s4hana.

Stay tuned for the next update in Q3 and let´s stay connected@SDenecken

Series:SAP S/4HANA - Frequently Asked Questions - the collection

Hi everyone,

We'd like to share this quarter's on premise shipment for SAP S/4HANA with you, as SAP is releasing SAP S/4HANA, on-premise edition 1511 FPS 02 on May 12 2016.

Check this short launch video on the key information about the new product.

Quick update on the shipment strategy for SAP S/4HANA

Let me elude again the shipment strategy for the on-premise product as we get this question frequently: SAP is shipping one key release per year for the on premise market, and 3 successive Feature Pack Stacks (FPS). The most recent release is known as the "1511" release, shipped in November 2015.

The next key release is planned for Q4, and will bring additional simplification and innovation to the core of application.

So back to this release: on May 12 SAP is shipping the Feature Pack Stack 02 (FPS02) for SAP S/4HANA  On Premise 1511. What does this mean concretely?

What is the product SAP S/4HANA?

SAP S/4HANA has been launched in February 2015 as SAP's next-generation business suite designed to help customer operate in the digital economy. This new suite is built on our advanced in-memory platform, SAP HANA, and offers a personalized user experience with SAP Fiori. To make it a bit more concrete, let me give you a few examples of key innovations of this product, picking the areas Procurement and Inventory Management.

In Procurement, I'd like to mention the inclusion of key capabilities like Self-Service Requisitioning in the heart of the application. So far, the solution for  this was SAP SRM. Now this capability is supported at the core of the ERP. Beside this, note the very high coverage of Fiori Apps for central role like Purchaser, and the usage of the newest controls like Object Pages, My Inbox, KPI Tiles, for those applications. You can find more details about this on the Fiori Library.

One key innovations in inventory management is the ability to manage high volume back flush (parallel production combined postings), and other one is the broader support of the "segment of one", so the ability to build and manage micro segments that allow to target each customer uniquely.

These are only a few example of SAP S/4HANA innovations. If you want to get more knowledgeable on this new suite, have a look at the SAP Learning Hub curriculum for S/4HANA.

What is the content of the Feature Pack Stack 02 shipped on May 12?

Here is an overview of the new features or functionalities in the product:

• Enhancement of Intrastat: enhancement of the core application and ability to send declaration to more countries (Estonia,...)
• Verify Nota Fiscal (for example, tax calculation, transport and product information)
• Factoring in Accounts Payable: new functions are provided for non-notified factoring
• Smart business modeler: new feature for the creation of own tiles are now provided
• Master data: new "Product Master" app to manage master data in SAP S/4HANA
  

On the Industry side:

• Enhancements in Curriculum Management, Grading and Advising in SAPHigher Education and Research
• Virtual data modeler for SAP Utilities that give direct access to SAP S/4HANA data for embedded reporting

Country specific update:

• India: Create and Manage Outgoing Excise Invoices
• China: manage outgoing checks and checkbooks
  

New on integration and extensibility:

• Integration with SAP SuccessFactorsCentral for employee and organisational data integration
• Operational Load from SAP Hybris Reporting into SAP Revenue Accounting
• New UI generation feature for customer business object
  

Check the feature scope description (FSD) for more details on the application, it will explain the new content coming with FPS 02 as well. If you want to get even more details on this FPS02, read the "What's new" document that has been published.

What is new regarding User Experience with FPS02?

SAP Fiori is the new user experience (UX) for SAP software. SAP Fiori UX represents a personalized, responsive and simple user experience across devices and deployment options. SAP S/4HANA new innovations are all leveraging this innovative, people-centric technology, with new or enhanced applications coming regularly to the market.

Linked to the Higher Education and Research enhancements mentioned above, SAP is shipping new apps for the "Student" like "My Courses", "My timetable" or "My Results". For the role "Billing clerk" the new apps "Create Excise Invoice" and "Manage Outgoing excise invoice" were added.

And there are more new user experiences with this FPS02, in areas like Procurement, Account Receivable or Goods and Service confirmation

Example of new Fiori App with FPS02: Create Purchase Requisition

Check the Fiori Library if you want to get the complete list of new or enhanced apps with FPS02.

More details on the next release? Check the roadmap update

Check the SAP S/4HANAroadmap document available in the Service Marketplace. Go to "Product Road Map", then "Cross Topics", and you will find it there.

The next blog update is planned for the cloud product in a couple days, let's stay connected.

Follow me @ypeterschmitt

Today we will take a look at some of the latest SAP S/4HANA Demos and give you a short insight into innovations that are coming with the latest versions. And of course there is much more – these are just my personal picks.

Hey and this is not glossy version - I think some of my colleagues might be smiling to hear themselves on their recorded demo not knowing this will be public - but come on, I think this is direct form the source - i like it.

Let’ start with the Material Requirements Planning Demo, where we are demonstrating how to solve the issue of broken or missing parts. We begin in the ‘Manage Stock’ app, where the warehouse clerk, can scrap material with only a few clicks. The system then immediately recognizes, that there is an open production order, and shows this directly on the Launchpad. Of course color-coding in the app makes it simple to see what is missing.

Then we move on to the ‘Manage Component’ app, where we have a graphical view, which gives us an in-app precise overview on the incoming and outgoing material, as well as material shortages. There are several options the system suggests to solve this issue based on intelligence build in like:  procure it, reschedule another already existing order, or increase an upcoming order - all directly from one screen. By completing one option, we have solved the matter in no time and my production can start on time.

Next example up is the Procurement Overview Page. Perfect examples how modern UX can look like – all you need on one page – fitting to your expert role. In this scenario a purchaser wants to inform himself about the most important topics and KPI´s. On the Procurement Overview Page I get all analytical and transactional information necessary. For example, if there are urgent purchase requisitions where no source of supply has been assigned. The purchaser is able to drill down to the performance of the suppliers of the material in question. He can easily assign a supplier to the order; by clicking directly on the ‘Urgent Purchase Requirement order’ he wants to work on.

In the Marketing Cloud Demo, we are looking at two scenarios. First we want to take a look at the ‘Contact Engagement’ app, to find the best-suited contacts for the project currently next in line. The system helps you distinguish between business contacts and others. By using the various filters for time, topics and communication channels, we can easily find the people that fit best to the project and take a look at them individually. Second we want to focus on an email campaign.  To create a target group for this campaign, we are working with a graphical segmentation, which you can see, and helps to define appropriate action. From there you can start the email campaign directly and even display the approach through a graphical display. All these tools help you in your projects and make your work more efficient – in real-time, live.

The next Demo will be interesting for all of you watching and thinking mobile first. As all the Fiori apps, this one is also accessible through mobile devices. Here you can see new pilot for the ‘Time Recording’ app.  Simple – when we tab on the Time Recording tile, you only need to add the duration and work description, which you even can do via voice. By just confirming the data, all information is captured and can be utilized for follow-up activities.

Last, but not least we want to showcase with this example about how easy it is to find a colleague and assign another person to his or her project. At the ‘Employee Self Service’ Launchpad, you can just enter a person’s name in the search field and find a brief overview. You can drill down easily and see all needed additional information.  In the second scenario, we showcase for a project manager how to leverage the ‘Plan Customer Projects’ app. The overview page gives him all relevant information regarding the project, including activities that need to be executed. The icons on the right side show in real time the staffing status of each activity. When we need to replace someone, we can just go into the edit mode – remove and staff again – via a simple overview about availability and qualification.

Now, these have been just some of the recent highlights – do you want more Information?

First check out the S/4 training and content hubs, as well as our very active S/4 community on SCN.  For demos, make sure you frequently check the S/4HANA channel on Youtube… and as always discover.sap.com/s4hana for more.

Looking forward to see you in Orlando! Follow us via@SAPand #S4HANA, or myself via@SDenecken

FPS2 Update

This is my SAP S/4HANA blog related to the status and outlook for Business Functions for SAP S/4HANA, on-premise edition 1511  FPS2. Similar Blogs exist for:

• SAP S/4HANA, on-premise edition 1511 Initial Shipment:  SAP S/4HANA, on-premise edition system conversion: Additional remarks regarding Business Functions
• SAP S/4HANA, on-premise edition 1511 Initial Shipment: SAP S/4HANA, on-premise edition 1511 FPS1: Remarks regarding Business Functions

Kind Regards,

Frank

Introduction

As a first step within the SAP S/4HANA, on-premise system conversion the customer will execute the Maintenance Planner. The Maintenance Planner checks the system with regards to business functions, industry solutions, and add-ons. If there is no valid path for the conversion (for example, the add-on is not released yet), the Maintenance Planner prevents the conversion.

• For more details see Conversion Guide (SAP Help) or the related SCN Blog (The System Conversion to SAP S/4HANA, on-premise edition 1511 - Technical procedure and semantic adaption tasks SCN Link).
• It is recommended to get familiar with the SAP S/4HANA system conversion basic information.
• The following SCN Blog provides specific information about the role of Business Functions within SAP S/4HANA, on-premise edition 1511 and is based on the basic understanding of the system conversion process.

Business Functions

A business function is a building block of a business function set. From a business perspective, it represents a self-contained function that you can switch on. From a technical point of view, it is a set of switches that assign repository objects to the business function. Business functions are switched on at a system level. For more details regarding Business Functions see SAP Help: Link

Business Functions Sets

The business functions are grouped in business function sets in your ABAP-based ECC system. There are two types of business functions sets:

• For most Industry Business Solutions, there is one business function set for each industry. You use this to change your clients of an ECC system over to the applications and solutions tailored for an industry. This business function set covers all industry business functions that can be used for an industry solution to be used exclusively on one system/one instance.
• In addition to the industry-specific business function sets, there is a general business function set. This contains the Enterprise business functions and the Enterprise Extensions. These contain functions for the standard applications of Accounting, Logistics, Human Capital Management, and some additional industry-specific applications.

A business function set is activated when you have activated at least one of the related business functions. We therefore recommend that you activate the business function set when you start configuring your system, since the required industry-specific view of your Implementation Guide is only created once you have activated the related business function.For more details regarding SAP ERP Business Functions and Industry Business Solutions see SAP Help:Link

Business Functions Status in SAP S/4HANA, on-premise edition 1511

Business Functions can have the following status:

• Always on,
• Customer switchable,
• Always off.

During the system conversion to SAP S/4HANA, on-premise edition 1511 the following figure gives an overview about the handling of different status of Business Functions.

ALWAYS OFF in SAP S/4HANA

If a business function was switched“ON”in the Business Suite start release system, but defined as “always_off”in the SAP S/4HANA, on-premise edition target release, then a system conversion is not possible with this release(for Business Functions where the status cannot be reverted on start release). See aswellSAP Note 2240359 - SAP S/4HANA, on-premise edition 1511 Feature Pack Stack 1 (FPS1): Always-Off Business Functions

Find attached the list of Business Functions which are in state ALWAYS_OFF in SAP S/4HANA, on-premise edition 1511 FPS2 (as well included in SAP note as attachment):

Note 1:
In this constellation it is not possible to convert this system and start a conversion program with the target of productive use. If the intention is a proof of concept to experience SAP S/4HANA it is possible to convert the system by applying a workaround in a non-productive testing environment.

ALWAYS ON in SAP S/4HANA

If a business function was switched "OFF" in the start release system, but defined as "always_on" in the target release, then the business function will be activated during the conversion. See aswell SAP Note2240360 - SAP S/4HANA, on-premise edition 1511 Feature Pack Stack 2 (FPS2): Always-On Business Functions. Find attached the list of Business Functions which are in state ALWAYS_ON in SAP S/4HANA, on-premise edition 1511 FPS2 (as well included in SAP note as attachment):

Business Functions on the SAP S/4HANA roadmap

The following List contain Business Functions which are related to industries or functionslities which are on the roadmap for SAP S/4HANA. For example the Business Functions related to an industry which are not yet available for SAP S/4HANA (for example industry retail) are consequently still in status ALWAYS_OFF (for example Business Function EA-RET).

Most of us are following the innovations & simplifications in S/4 HANA and wondering about the functionalities & business benefits of implementing S/4 HANA (S4H).Find lot of questions on differences in ECC with S/4 HANA (S4H). Trying to highlight the major(not a full list) differences in digital core of S4H as planned by SAP w.r.t ECC

Hana database

S4H can only be run on Hana database unlike ECC which can be run on Oracle , IBM DB2 etc.  Back bone of S4H’s design is with HANA’s in memory capability and below design principles

• In-memory database means that data is read from memory i.e data always reside in main memory  RAM (though Write happens in hard disk) and hence in-memory database reads data much faster w.r.t traditional databases (fetching the data from hard disk)
• Hana’s column based tables provide faster access (as only affected columns need to be read in a query), better compression (due to few distinct values compared to rows), parallel processing (different columns can be easily processed parallely)
• OLTP and OLAP capability in same system with real time reporting and predictive analysis
• There will be no aggregate (total), index and history tables in S4H.  Aggregates are created dynamically based on line item table instantaneously (on the fly).

Single source of truth

S4H combines the data structures of different components (for FI , AA , CO , CO-PA and ML) into a single line item table ACDOCA, called as Universal journal . It eliminates several aggregate and index tables. Now, data needs to be inserted only a single table instead of several tables thus reducing the data foot print drastically.

MATDOC is also a new line item table for inventory management and it eliminates 26+ tables. Material documents will be stored in MATDOC but not in MKPF or MSEG tables.

Merger of CO and FI

In ECC , FI GL accounts are mapped to CO primary cost elements . In S4H, only one field of universal journal is used to store both GL account and cost element. Cost elements (both primary and secondary) are now GL accounts and hence created / maintained (in FS00) with relevant Cost element category. Reconcilation (as in case of CO to FI) is not needed now. Period end closing also will be faster.

New GL

S4H is technically very similar to new GL of ECC due to its data structure. Customers using classic GL need not use Document split or parallel ledger. Hpwever, new GL's functionality (Parallel ledger) is a pre-requisite for new Asset accounting .

CO-PA

Account based CO-PA is now the default option with Costing based CO-PA as optional. Both options can be run simultaneously. Refer URL http://scn.sap.com/docs/DOC-65828 for more details.

Custom code

Read operations in custom code will be redirected to compatibility views (like V_COEP for CO line item table COEP) via a special setting at database interface level (i.e invisible to source code) so that the custom reports can work without any disruption.

Business partner

All customer and vendor master need to integrated / migrated as Business partner . Probably, SAP is trying to align the concept of business partner as in other SCM applications like APO , EWM , TM etc as these SCM applications also will be natively integrated with core of S4H in future releases. Customer-vendor integration (CVI) is a mandatory step. Refer URL https://websmp201.sap-ag.de/~sapidp/012002523100007374172016E.pdf for more details.

Extension of Material number field : Material number can now be 40 characters from existing 18. It is a optional feature. Impact of this extension on custom coding, interfaces, other SAP applications need to be evaluated before switching on 40 characters. Refer note 2267140 for more details.

Credit management

ECC’s FI-AR-CR is replaced by credit management of FSCM (Financial supply chain management) . FSCM-CR is based on a distributed architecture which allows interfaces with external credit rating agencies.  Traditional FI-AR-CR credit control setting requires high degree of manual work. However, FSCM-CR has advanced features like

• Credit rule engine for automatic risk scoring & credit limit calculations
• Automatic update to master data on approval of credit limit etc.
• Work flow for credit events etc

ATP

ECC provides the option of availability check at the individual or summarized requirements (aggregated at daily or weekly level) , however S4H uses only individual requirements (with no VBBS table) and probably the rationale is that S4H does not have any aggregate table with its simplified data model.

SAP also has plans to integrate APO’s GATP (Global ATP) functionality in S4 core. Not sure whether all functionalities of GATP will be integrated in S4 core.  Rule based ATP (For substitution of location (plant) or material), Multi-level ATP check, advanced check for product allocation with ATP, advanced BOP (Back order processing) etc are some of the unique features of GATP w.r.t ATP in ECC.

Location substitution allows to check the material availability at plant B (as set in master data or business rule) if the material is not available at sales order plant A. If material is available in plant B, then a stock transfer order from plant B to A is created automatically. This rule can be extended to a network of plants also.

SD pricing

There are some changes in data model in pricing and condition techniques like existing table KONV replaced by new table PRCD_ELEMENTS with extended fields etc. Refer note 2267308 for more details.

MRP

MRP in ECC is run through batch jobs and during off peak hours. However, there is no need of batch job in S4H and MRP can now be run in real time with HANA.

MRP can be run on plant and MRP area level, but not on storage location level. In ECC , Storage location can either be excluded from MRP or planned separately . SAP recommends to use MRP area  with MRP type (ND in case of exclusion or VB for re-order point planning) for those scenarios at storage location level. MRP with subcontracting has also been simplified.

SAP has plans to integrate the functionality of APO’s PPDS in core of S4H in future releases and hence probably aligning the APO features like BOM to be selected through production version for in-house ,  unified source of supply (no source list , only info record ) for external procurements with S4H core.

Foreign trade

Foreign trade functionality has been replaced by GTS (Global trade services). Advanced features in GTS w.r.t foreign trade are SPL (Sanctioned party list) screening, automated embargo check (Manual in ECC), automatic & simplified license check (manual and complex in ECC) , Automatic import / export declaration etc.

Material ledger

Activation of material ledger (ML) is mandatory. ML valuates inventory in multiple currencies. Traditionally inventory is mainly valuated with a single currency in SAP ERP. ML allows valuation in two additional currencies. Today’s global organizations operating in different countries desire to valuate inventory in multiple currencies. Like for example, a company in Norway dealing with oil needs to maintain their books in Norwegian currency (NOK), they will also like to evaluate their inventory in USD as oil is traded in international market in USD. This functionality is available in Release 1511 of S/4 HANA.

Refer the blog in URL http://scn.sap.com/community/s4hana/blog/2016/02/22/material-ledger-embedded-in-s4-hana--benefits-and-challenges for more details on ML and its benefits & challenges.

Revenue recognition

ECC SD revenue recognition is being replaced by SAP Revenue Accounting and Reporting (RAR)  due to  new accounting standard released jointly by the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB). New guide line is also in IFRS 15 issued in 2014.

Existing SD revenue recognition of ECC is based on Generally Accepted Accounting Principles (US-GAAP), International Accounting Standards (IAS) / Financial Reporting Standards (FRS) and it provides the option of recognizing the revenue based on an event (like Goods issue, proof of delivery ) or over a period of time (based on specific set of dates)  apart from standard way of realizing revenue on billing. New standard introduces the 5 step model (Identify the contract, separate performance obligations, determine transaction price, allocate transaction price and recognize revenue). SAP’s new Revenue Accounting and Reporting (RAR) solution is in S4H.  for fundamental changes with IFRS 15 and also to meet the requirement of parallel accounting and cost recognition .

Rebate

Customer rebates through existing SD rebate processing has been replaced by settlement management through Condition contracts. Some details on condition contracts are in URL Condition Contract - Compensation Management - SAP Library

Output management

ECC message determination through table NAST is replaced by Business rule framework plus (BRF +) and target architecture is based on Adobe document server and Adobe forms only. Refer OSS note 2228611 for more details.

Warehouse management

Existing WM module will be replaced by SAP's new application for warehouse management EWM . There will be 2 options

• Native integration i.e inbuilt in S4H
• Side car approach for decentralized deployment

There are several advantages in EWM w.r.t WM like complex warehouse processing through Process oriented storage control (POSC) , improved (easily customisable) RF functionality , Value added service like kitting , enhanced wave & replenishment processes, labour management etc.

Native integration of SCM applications

Other SCM applications like  TM etc will be natively integrated with digital core of S4H. Refer URL https://scn.sap.com/community/s4hana/blog/2015/11/19/sap-s-road-map-for-supply-chain-solution-with-s4-hana-and-its-expected-benefits for more details.

User interface

Fiori is a new user interface . Refer URL  https://experience.sap.com/files/SAP_Fiori_UX_Overview.pdf for more details.

Activate implementation methodology

There is no concept of Blueprinting in S4H implementation. S4H has introduced new ‘Activate’ methodology. SAP offers pre-built demo system with SAP’s best practices for specific business processes. Business users can now test in demo system whether it meets their business requirement or not . Fit-gap analysis can be done after initial trial period . Refer URL http://www.akili.com/wp-content/uploads/2016/01/SAP-Activate_Customer_v03.pdf for more details.

Note : All the above information are based on several sources like SAP Documents , Open SAP courses , SCN blogs etc  and hence subject to change. Also the features stated above are target functionalities i.e may not be available in present edition of S4H (Like tables for material ledger have not yet been merged to ACDOCA in 1511).

Will appreciate if you can highlight other important/fundamental differences or if anything is misinterpreted.

If you're in Orlando for SAPPHIRE NOW, welcome! We've got an incredible S/4HANA line up here. If you haven't already, be sure to check out the sample agendas we have: SAP S/4HANA sample agenda or the SAP S/4HANA for IT Professionals sample agenda.

To get you started, let me highlight 3 sessions available tomorrow (Tuesday):

Design Your Strategy for Digital Transformation with SAP S/4HANA

Explore how companies are competing in today’s economy and understand the role of a digital core in your transformation strategy. Get an overview of the road map for SAP S/4HANA software. Discover your migration path, including important considerations for your long-term business plan.

Road Map: Strategy of SAP S/4HANA

Join Ruid Hois for an update on the strategy and corresponding development roadmap of SAP S/4HANA. Both the cloud aspects and the on-premise route will be discussed.

Ensure Insight-to-Action Inventory Management with SAP S/4HANA

Explore the business benefits of more efficient inventory management. Understand how new enhancements in SAP S/4HANA software provide business users with instant visibility into slow moving items, supplier lead times, and production patterns. Make fast decisions that can shorten lead times and increase inventory turnover.

If you couldn't make it to Orlando this year, key sessions from SAPPHIRE NOW will be live streamed: View Live Agenda

We're looking forward to seeing you!

With the TOP Simplification List Items approach we want to start a S/4HANA SCN Blog series to provide more information about dedicated simplification items. Simplification items where we assume that any customer project has to deal with. The following S/4HANA SCN Blog is collecting these TOP Simplification Items with the links to the dedicated S/4HANA blogs.

The TOP Simplification List Items

Within this blog we want to provide additional information regarding the Simplification Item: Simplified Sopurcing

Description

In MRP, the system calculates material shortages, then the lot sizes, and then it determines the sources of supply. In lot sizing, the system can decide to cover several material shortages with just one material receipt. After lot sizing, the planned material receipts and their requirement dates and quantities are known.  Subsequently, sourcing determines whether the required quantity is manufactured or purchased and, if purchased, from which supplier.

The basic idea of this simplification is a reduced set of possible sources of supply with a clear and symmetric definition that do not require any additional settings in the material master or in customizing. In addition, quota arrangements are always considered if they exist. Consideration of quota arrangements is not dependent on any material master attributes.

Business Impact

SAP S/4HANA supports the following types of sources of supply:

• If the material is manufactured, production versions are the only valid source of supply (irrespective of any material master attributes or customizing).
• If the material is purchased, delivery schedules, purchasing contracts, and purchasing info records are valid sources of supply even without using source list records.

If defined, quota arrangements will always be taken into consideration.

Required and Recommended Action(s)

Make sure you have production versions for all manufactured materials (using the Production Version Migration Report)

For more details see the PDF attached to the following SAP Note:

http://service.sap.com/sap/support/notes/2268069

If you're here in Orlando with us for SAPPHIRE NOW, here are three Wednesday sessions to add to your agenda.

Speed Your Transformation with a Digital Core in the Cloud

Optimize your operations by launching your cloud strategy. Use the SAP S/4HANA Enterprise Management Cloud to establish your digital core. Benefit from an SAP Fiori user experience that is responsive and easy to use.

Grow Your SAP HANA Investment with SAP S/4HANA

Expand the benefits of an in-memory platform and optimize your operations. Understand why customers already running the SAP Business Warehouse application or SAP Business Suite powered by SAP HANA software should move to SAP S/4HANA software, and explore new suite innovations. Hear about customers that have taken this step and see what is involved.

Discover the Power of Embedded Analytics in SAP S/4HANA

Enable live contextualized insights and proactive decision making. Explore how SAP S/4HANA embedded analytics software brings together analytics and transactions. Compare SAP HANA Live offerings and SAP S/4HANA embedded analytics and see the best use cases for each. Learn what analytic content is delivered and how to build your own analytics.

With the TOP Simplification List Items approach we want to start a S/4HANA SCN Blog series to provide more information about dedicated simplification items. Simplification items where we assume that any customer project has to deal with. The following S/4HANA SCN Blog is collecting these TOP Simplification Items with the links to the dedicated S/4HANA blogs.

The TOP Simplification List Items

Within this blog we want to provide additional information regarding the Simplification Item: Subcontracting in MRP

Simplification List Item Description

SAP ERP had three different ways of planning parts to be provided to a subcontractor:

•Planning subcontracting demand together with internal demand in the make-to-stock planning segment (3.0 logic)

•Separating subcontracting demand and stock into single subcontracting planning segments and planning uncovered subcontracting demand together with internal demand in the make-to-stock planning segment (4.0 logic)

•Planning the demand of each subcontractor separately using subcontracting MRP areas (available from SAP ERP release 4.5)

In SAP S/4HANA 1511, the 4.0 logic was removed while the 4.5 logic was simplified. The SAP S/4HANA MRP uses default planning parameters if MRP area–specific material master records do not exist. You only have to create an MRP area for every subcontractor. Of course, it is still possible to create MRP area/supplier-specific material master data if required.

Business Impact

The default way of planning parts to be provided to subcontractors is based on MRP areas. A subcontracting MRP area should be created for every subcontractor. You do not have to create an MRP area-specific material master record for every part to be provided to the subcontractor but of course this is possible if you want to overrule the default planning parameters.

Required and Recommended Action(s)

If you have several subcontractors requiring the same component materials and if you do not yet use MRP areas to plan the required components then proceed as follows:

• Create MRP areas for every subcontractor (can be done before or after upgrade)
• Run regenerative MRP after the upgrade

For more details see the PDF attached to the following SAP Note:

http://service.sap.com/sap/support/notes/2268044

With the TOP Simplification List Items approach we want to start a S/4HANA SCN Blog series to provide more information about dedicated simplification items. Simplification items where we assume that any customer project has to deal with. The following S/4HANA SCN Blog is collecting these TOP Simplification Items with the links to the dedicated S/4HANA blogs.

The TOP Simplification List Items

Within this blog we want to provide additional information regarding the Simplification Item: Storage Location MRP

Description

In SAP ERP, storage locations can be excluded from MRP or they can be planned separately from other storage locations. In the latter case, where storage locations are excluded from MRP, a reorder point procedure with maximum lot size is used to trigger transport reservations to fill up the storage location.

MRP areas cover the very same business requirements. Materials with the MRP area-specific MRP type 'ND' (no MRP) can be used instead of materials with a storage location excluded from MRP. Materials with the MRP area-specific MRP type 'VB' (reorder point planning) can be used instead of materials with separately planned storage locations. The storage location functionality is a subset of the MRP areas capabilities.

The S/4HANA MRP only plans on plant and MRP area level. Planning on storage location level is not available in SAP S/4HANA.

Business Impact

Storage location MRP is not available in SAP S/4HANA. You have to use planning on MRP area level instead.

Required and Recommended Action(s)

• Execute the related conversion pre-checks. Adaption required depending on the pre-check results
• Run report MRP_AREA_STORAGE_LOC_MIGRATION if the pre-checks detect that storage location MRP is used
• Remove and avoid inconsistent customizing and generate the required material master records for planning on MRP area level using the storage location material records

For more details see the PDF attached to the following SAP Note:

http://service.sap.com/sap/support/notes/2268045

Alright everyone, tomorrow's the last day of SAPPHIRE. Here are the can't miss sessions before heading to the concert!

Explore SAP S/4HANA Now and in the Future

Explore the benefits of staying current when it comes to software innovation. Learn about the innovations delivered in the digital core, SAP S/4HANA, and understand the road map for the suite. Uncover the resources available for you to research and learn more.

Make Strategic Deployment Choices for SAP S/4HANA

Explore deployment strategies based on your organization's technology starting point. Understand the available transition paths for SAP S/4HANA software. Learn from the experience of existing SAP S/4HANA suite customers about the decisions that need to be taken in each phase of the journey.

Align Business and IT Priorities for Strategic Digital Transformation

Embrace co-innovation throughout your business to enable digital transformation. Hear SAP customers discuss how IT and lines of business are working together to transform business processes and models. Learn how the SAP S/4HANA suite is helping companies run in real time and is making an impact on the bottom line.

While I don't think you'll be able to see the concert via the live stream, there are some great sessions, so head over there now! View Live Agenda

Be on the lookout for recorded sessions coming soon!

Explore Next Generation Procurement with SAP S/4HANA

Streamline purchasing processes with SAP S/4HANA. Leverage state of the art enterprise management software by integrating vendor information and KPIs to support insight to action procurement processing. See how intuitive self-services or direct procurement activities improve your companies' efficiency in operational procurement.

Streamline and Integrate the Order-to-Cash Process

Understand how integrated master data optimizes data flows. See how SAP S/4HANA software overcomes line-of-business silos so you can proactively manage the order-to-cash process. Learn how you can respond swiftly to queries, anywhere and anytime, through the integration of mobile devices.

Why ERP is the DNA of Every Company and Why This Is Important for SAP S/4HANA

SAP ERP training for non-ERP people: Understand why ERP is the DNA of every company and how to realize this value with SAP S/4HANA. Understand the opportunities when integrating SAP S/4HANA into SAP cloud solutions like SAP Ariba, SAP SuccessFactors, Concur, or SAP Fieldglass.

Explore other sessions…

With the TOP Simplification List Items approach we want to start a S/4HANA SCN Blog series to provide more information about dedicated simplification items. Simplification items where we assume that any customer project has to deal with. The following S/4HANA SCN Blog is collecting these TOP Simplification Items with the links to the dedicated S/4HANA blogs.

The TOP Simplification List Items

Within this blog we want to provide additional information regarding the Simplification Item: Material Field Length Extension

Simplification List Item Description

• With SAP S/4HANA, on-premise edition 1511, the maximum field length of the material number is extended from 18 to 40 characters.

• The appropriate related SAP development entities (domains, structures, table types, and transparent tables, external and internal interfaces, user interfaces, and so on) have been adapted accordingly. Where required, automated logic is in place and executed automatically in case a customer converts his current SAP Business Suite system into SAP S/4HANA 1511.
• The default setting, both after the move to SAP S/4HANA and for new installations, is that the extended material number functionality is NOT activated. To use a material number with 40 characters, the customer needs to activate this functionality

Business Impact

• In case the customer continues to use to 18 characters long material number functionality, there is no business impact. Depending from the details there might be an impact on existing custom code.
• In case the customer does activate the extended material number functionality the impact within the multi-system landscape need to be considered where not all related systems are able to deal with a 40 character material number.

Required and Recommended Action(s)

• Execute the related conversion pre-checks and custom code migration worklist to get detailed information about the potentially required custom code adaption effort.

For more details see the PPT attached to the following SAP Note:

http://service.sap.com/sap/support/notes/2267140

With the TOP Simplification List Items approach we want to start a S/4HANA SCN Blog series to provide more information about dedicated simplification items. Simplification items where we assume that any customer project has to deal with. The following S/4HANA SCN Blog is collecting these TOP Simplification Items with the links to the dedicated S/4HANA blogs.

The TOP Simplification List Items

Within this blog we want to provide additional information regarding the Simplification Item: Credit Management

Simplification List Item Description

• FI-AR-CR Credit Management is not available in SAP S/4HANA, on-premise edition 1511. It has been replaced by SAP Credit Management (FIN-FSCM-CR) for Financials and Sales and Distribution (SD).

Business Impact

• If you are not using FI-AR-CR Credit Management there is no business impact for you.
• If you are using FIN-FSCM-CR SAP Credit Management already today, there is no business impact for you.
• If you are using FI-AR-CR Credit Management you need to migrate to FIN-FSCM-CR SAP Credit Management. S/4HANA provides various tools in order to support and automate this migration.
• FIN-FSCM-CR SAP Credit Management provides additional functionality compared to FI-AR-CR Credit Management. The configuration and activation of the additional functionality is not required in the context of the migration. However, we recommend that you get familiar with these additional capabilities in order to leverage the full value of FIN-FSCM-CR SAP Credit Management and to optimize your credit management processes.

Required and Recommended Action(s)

• In case a migration is required (see above), you need to migrate configuration data, master data, credit exposure data and credit decision data.
• FIN-FSCM-CR SAP Credit Management is available since ERP 6.0 (without any enhancement packages). Therefore you have the option to activate to FIN-FSCM-CR SAP Credit Management in your existing ERP 6.0 landscape, independent of / before your S/4HANA migration project. This way you can take out complexity out of your S/4HANA migration project. However, there are no tools available on those releases that do an automatic migration of configuration data and master data, as they are on S/4HANA.

For more details see the PPT attached to the following SAP Note:

http://service.sap.com/sap/support/notes/2270544