I am writing this blog post not in S/4HANA space but SCM – APO space for a particular reason. The title of the blog post says it all – why should we APO consultants pay attention to S/4HANA On Premise version 1511 released mid-November 2015 (hence the version 1511 – yymm). Ever since SAP announced SCM 7 support availability date initially 2020 then 2020 but now 2025, there has been some concern amongst APO consultants about future work. There are at least 2 schools of thought –

a) Still 10 years away and hopefully SAP will extend it further or come up with a new release of APO

b) I shall retire / move on to other roles much before the deadline, so not to worry.

Both divine and rational thoughts but rather than getting bogged down into it, as consultants we look for challenges, new learning and transition to new areas.

Considering that as I outlined earlier in this blog – APO it will get split into two parts, DP and SNP capabilities moving into SAP IBP while PPDS and GATP capabilities likely to get into S/4 HANA in future. Remember it would not be 1:1 mapping but similar capabilities brought in this Cloud & On Premise applications.

Coming back – going through the published Simplification List that you can find here in help.sap.com 1511 Section 3 [note its heavy reading and there is reference to around 100 more SAP notes] happy to note Simplified Sourcing (page 127) and MRP in HANA or MRP Live (page 134) are very similar to key APO capability of SNP and PPDS Heuristics. Simplified Sourcing logic very much follows source of supply selection exactly as in APO. Procurement Type E and X will cause In-house Production master data as Source of Supply, Production Version in S/4HANA that map to PPM/PDS in APO since beginning combination of BOM and Routing from ERP. In case of Procurement Type F, External Procurement Source of Supply selection will be first Delivery Schedule i.e. Outline Agreement then Purchasing Contracts and finally Purchasing InfoRecord. In APO all these 3 types of Master Data upon transfer from ERP creates Procurement Relationships that automatically create Transportation Lane (differentiated by Document Type) which is the Source of Supply for external procurement requirement. Note Source List is not required any more in S/4HANA and in APO there is no corresponding master data but only Quota Arrangement. Finally in S/4HANA Quota Arrangement is used to prioritize between sources of supply when multiple simultaneously are valid – this is same logic in APO.

Next MRP in HANA or MRP Live; while the key to simplification is Data Model change (MATDOC as single table for all Material Document postings) the other fact is removal of MRP Lists, MRP Run will be real-time (Interactive Heuristics Run in APO PPDS), MRP Run to create Planned Order in case of Procurement Type E and X and Purchase Requisitions for F. BOM explosion will be real-time after MRP Live determines the sequence in which Materials need to be planned across several plant locations considering supplying plant and receiving plant combinations. Again no doubt about similarity to APO Heuristics logic.

These two functionalities apart there are key Master Data changes. Material Master code now is extended from 18 CHAR to 40 CHAR, Production BOMs must have valid Production Version for BOM explosion and pickup during MRP Run, Business Partner is the central Master Data element to maintain Customers and Vendors (no longer there will be separate XD* and XK* transaction codes to manage Customer and Vendor master). There are very similar capabilities in APO too 9AMATNR is CHAR 40 data type, Production Version translates to PDS and PPM in APO while Business Partner is must in SNC for Customer and Vendor master (in addition to the respective masters).

So keep an eye on the Logistics portion of stuff coming up in S/4HANA – by bet we will find more and more APO PPDS & GATP like functionalities in future.

For more details you can refer to this document that summarize the Simplification List document.

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  1. Deepak G

    Thanks Somnath.

    Very useful blog to get an idea on how the APO transformation can happen to S/4 HANA tool.

    As per my understanding (may be wrong), currently; APO’s PPDS capability is not generally being used (or NOT thoroughly adopted) compare to other APO capabilities (DP, SNP, GATP etc.) as it is very close to R/3 Production Planning functionalities and hope, PPDS will gain full throttle in S/4 HANA.

    Regards,

    Deepak

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    1. Somnath Manna Post author

      APO PP/DS is actually 2 capabilities – Production Planning and Detailed Scheduling each with different transactions (although lot of it is overlapping) and screens to manage order creation and further order – operation sequencing on workcenters / resources.

      In 1511 On Premise the PP capability of APO PPDS capability is brought into ERP but the DS – Scheduling Board capability is not. Hope to get it introduced in first Support Pack expected by end of Q1 2016 and EhP8 of ECC 6.

      Getting PPDS functionalities into S/4HANA is clearly in SAP’s roadmap.

      Hope this helps,

      Somnath

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      1. Rami AbdElFattah Mohamed

        Hi Somnath

        Sorry maybe I ‘m not using the suitable word , but we watch a lot of information around this subject from long time and we unable to recognize how it will going , I had a CIO prospect change his mind to something completely non-SAP because of conflicting messaging and positioning campaign in this APS space. They wanted to do some new work on APO shelf-ware.

        • Please check this note 1648480 Core application releases of SAP Business Suite 7 Mainstream maintenance for SAP ERP 6.0, SAP CRM 7.0, SAP SCM 7.0, SAP SRM 7.0, SAP PLM 7.0 (delivered with SAP ERP 6.0 enhancement package 4) and enhancement packages to these releases will be extended through December 2020 This Normal for SAP to support until specific date for specific release , and if APO will end in 2020 the others core application like  ERP 6.0, SAP CRM 7.0, SAP SRM 7.0, SAP PLM  will be ended also ??!

        • The functions in IBP will be similar in APO plus IBP provides a different approach and for different customer
          APO will not sunset not after over 20 years of innovation and thousand of functionalities
          No, SAP APO remains an important part of SAP’s supply chain portfolio and delivers significant value to companies. This year SAP has significantly enhanced SAP APO in the areas of usability, analytics, performance, and total cost of ownership. It is a proven solution and has been adopted by thousands of customers around the world. Customers should continue to deploy and use SAP APO, considering that in the short term most new capabilities within SAP’s new supply chain strategy are incremental to SAP APO and will work with it rather than replace it. SAP’s solutions for integrated business planning create options that otherwise would not be available. Now companies can continue with SAP APO while deploying the different integrated business planning solutions in parallel as they become available and meet business requirements. SAP APO is part of SAP Business Suite and inherits the planned maintenance timeframes. On October 14, 2014, SAP announced that SAP is complementing its innovation commitment by prolonging mainstream maintenance until the end of 2025 for SAP Business Suite 7 core application releases, including SAP Supply Chain Management 7.0.

          Integrated Business Planning for Demand Transparency</title><meta name="news_keywords" content=&quot…

          I hope i can clear my point

          Thanks

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        1. Somnath Manna Post author

          I had blogged earlier about What’s next for SAP APO, hope you have read it.

          Yes as of now APO (SCM 7.0) is planned to finish mainstream maintenance in 2025 – its about 10 years time left for mandated support from SAP but there is no commitment of new functionalities.

          Among APO modules, DP and SNP functionalities are moving to IBP S&OP, Demand and Supply components while PPDS and GATP functionalities will move to S/4HANA. As I mentioned in this blog, the Simplification List for S/4HANA 1511 does mention IBP components will be available in S/4HANA replacing classic ERP Flexible Planning, SOP functionalities. So essentially you can see convergence of Business Suite functionalities back to central core or as I perceive unified Business Process Platform as in S/4HANA.

          At the same time I know of at least 2 net new APO projects that have started last year despite the fact client knew / assessed IBP and other competing applications (mainly cloud-based). The primary reason for APO to win over competition is the out of box and robust integration with SAP ERP that competition cannot match.

          Hope this helps. But I am still not clear on your point on what was bad in the blog 😀 .

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          1. Rami AbdElFattah Mohamed

            For Example :

            You said What’s next for SAP APO,  ‘Currently SCM 7 EhP 3 is most recent Enhancement Package for APO, there is no guidance for EhP 4 or any future enhancement packs for SCM or APO.’

            SAP Coming with new EHP 4 for SCM 7.0 and planned to come in the first Q1 2016

            Check the SAP site SAP Product Availability Matrix

            a lot of information which some of it is becoming true and some not , i will depend on the information coming only from SAP if they want to say something

            Regards

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            1. Somnath Manna Post author

              Rami,

              Official news and updates from SAP are provided through separate channel – primarily Service Market Place and Partner Edge (if you are part of Partner organisation).

              SCN Blogs are meant to be more of an open platform for all in SAP Eco-system to share knowledge, learning and engage in meaningful discussion. We (or at least I and many other) share interesting findings, features, learning with the community in that spirit and are interested in engaging discussion to broaden our understanding and knowledge of the applications that are source of our (ok my) livelihood.

              Cheers,

              Somnath 

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