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Author's profile photo Sven Denecken

#S4HANA Cloud 2-Tier ERP series: The Collection

Welcome to the new #S4HANA Cloud 2-Tier ERP series. After ending the last series on SAP S/4HANA Cloud use cases we are happy to take the tradition of blogging series to the 2-tier scenario, what motivates enterprises to run independent ERP systems in their subsidiary and what advantages S/4HANA Cloud brings to the table. These blogs will be posted by several experts on the topic, but you can find all the links in this collection.

Bookmark this blog and follow the collection here:

#S4HANA Cloud 2-Tier ERP series: 1 – The Case for 2-Tier ERP


#S4HANA Cloud 2-Tier ERP series: 2 – Running Local Sales Office


#S4HANA Cloud 2-Tier ERP series – 3 Financial Consolidation in 2-tier ERP


#S4HANA Cloud 2-Tier ERP series – 4 API based Financial Consolidation, Cash Visibility & Planning


#S4HANA Cloud 2-Tier ERP series – 5 Manufacturing in 2-Tier ERP


#S4HANA Cloud 2-Tier ERP series – 6 Procurement in 2-Tier ERP


#S4HANA Cloud 2-Tier ERP series – 7 Integration in 2-Tier ERP


#S4HANA Cloud 2-Tier ERP series – 8 Master Data in 2-Tier ERP


#S4HANA Cloud 2-Tier ERP series  – 9 Analytics in 2-Tier ERP


#S4HANA Cloud 2-Tier ERP series – 10 Concluding the 2-Tier ERP series


Read this research report to discover how S/4 HANA Cloud can help you progress from Two-tier ERP to the N-tier Enterprise.


For more information on SAP S/4HANA Cloud, check out the following links:

Follow us via @SAP and #S4HANA, or myself via @SDenecken and @MHaendly



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      Author's profile photo Johannes Bacher
      Johannes Bacher

      Dear Sven,

      You describe many 2-tier Scenarios, what I am missing is a "2-tier professional Services" Scenario. The idea is this: A Company runs a hugely complex ERP (ECC 6.x) but Needs fast, nice, agile Project Management, as offered by S4HC PFS. Now I want to run my Projects in the Cloud, but still integrate to on-prem with regards to Accounting objects, Maybe financial data etc..

      So it is not really About subsidiaries, but rather taking the PFS process and moving this to the Cloud.

      Is such a Scenario viable?

      thank you,


      Author's profile photo Eric Van Zundert
      Eric Van Zundert

      Hi Sven,


      At this moment we have the following situation:

      • Subsidiaries (S4HC) procures from the Mothership on SAP ECC (via Purchase order > Sales order)
      • Mothership will process the sales order and delivery. During the delivery creation process unplanned delivery cost will be added in a condition record (HD00).
      • Mothership will create the billing document (including the delivery costs) and via an IDOC/CPI the supplier invoice will pop up in the app "Supplier Invoices List"
      • But there is no invoice match because the subsidiary didn't order the unplanned delivery cost.
      • Status set by SAP: "with errors" and manual processing is required.

      Is there a way that we can manage (automatic) the unplanned cost in a way that we can post these cost as unplanned delivery cost (invoice header field) or on a separate General Ledger account?


      Thank you,




      Author's profile photo Klaus Löhnert
      Klaus Löhnert

      Dear Sven,

      does that approach supports huge globally distributed warehouses with millions order lines per day?

      Which architecture does SAP recommend in that case

      • Local EWM's linked to an global ERP?
      • Local ERP's and related EWM's linked to an global ERP?

      Best Regards


      Author's profile photo Marco Valencia
      Marco Valencia

      Hi Klaus,

      Sven blog and information is mainly referring to the 2-Tier ERP deployment between SAP S/4HANA Cloud (SaaS) and a ECC/S/4HANA on-premise.

      On this specific setting we do support a 2-Tier ERP deployment between SAP S/4HANA Cloud (SaaS) and EWM (on-premise).  This is a scenarios supported using the following scope item elements-see:

      SAP S/4HAN Cloud also support embedded WM, with no need to implement a 2-Tier deployment -
      Now, to your question, the decision on how to architect the WM will depend on the business need, but if you have a high complex EWM with a high volume of orders and throughput the 2-Tier ERP scenario using EWM might make sense. However I recommend to look a requirements vs. options to make an inform decision.