Intelligent ERP Update: SAP S/4HANA Cloud 1811 for Subsidiaries (2-Tier ERP Deployment)
In this blog I would like to showcase some key highlights of the new functionalities of SAP S/4HANA Cloud for Subsidiaries with 1811 and the end-to-end business cases that can realised for Two-Tier ERP Deployment.
In the video below, Hima briefly explains the key highlights of our 1811 release for SAP S/4HANA Cloud for Subsidiaries (2-Tier ERP Deployment)
Sales and Distribution
B2B scenario for Accelerated Sales Returns in Two-Tier
This innovation provides the integration between buyer and seller system. In the buyer system returns order will get created, goods received and inspected. Return Purchase order will get generated automatically and subsequently delivery, picking and goods issue is done. This scenario is envisioned with both the headquarters and subsidiary running on SAP S/4HANA Cloud.
Let’s see the process flow in detail.
- In this process, the return sales order is being created at subsidiary by referring to the original sales order and subsequently return delivery will be generated.
- Customer has the flexibility to select the type of refund, whether to create credit memo or to replace the material. Return Purchase Order gets generated based on the follow-up activity during quality inspection process.
- Subsidiary will generate a credit memo if the end customer refund type is to generate the credit memo. If the refund type is replacement material, customer need to follow the process of subsequent delivery with free of charge for 3rd party.
Figure 1: B2B scenario for Accelerated Sales Returns in Two-Tier
Finance Master data replication
Replication of FIN master data like Profit center and cost center at Subsidiary from Headquarters(HQ) using SAP Cloud Platform Integration.
The replication is triggered from SAP ERP or S/4 HANA (HQ) On premise system through IDocs to SAP Cloud Platform Integration(CPI). In SAP Cloud Platform Integration the IDocs are processed and sent to S/4HANA Cloud (subsidiary) using SOAP API services.
The point of creation of Profit center and Cost center at the HQ’s SAP S/4HANA On-Premise or SAP ECC is the trigger for creating the subsequent master data at subsidiary. Field mapping is done in SAP Cloud Platform. Finally, Cost center or Profit center that is replicated from On Premise side can be displayed in S/4HANA Cloud system using “Manage cost center” app.
Figure 2: Finance Master data replication
Master Data Replication- Bill of Material and Change Master
This innovation helps customer to replicate bills of materials & Engineering Change Master from On-premise to S4HANA Cloud. The replication is triggered from SAP ERP or S/4 HANA (HQ) On premise system through IDocs to SAP Cloud Platform Integration. In CPI the IDocs are processed and sent to S/4HANA Cloud (subsidiary) using ODATA API services.
In a two-tier model, Head Quarters will maintain the most of the Master Data’s and this will be replicated to the Subsidiary organisation.
In this case Engineering BOM along with change master is created in On-premise ERP (headquarters) and sent to S4HANA Cloud (subsidiary). At Subsidiary Hand over of Engineering BOM to Manufacturing BOM takes place in SAP S/4HANA Cloud system.
Figure 3: Master Data Replication- Bill of Material and Change Master
For more information on SAP S/4HANA Cloud, check out the following links:
- SAP S/4HANA Cloud release info: http://www.sap.com/s4-cloudrelease
- Sven Denecken’s SAP S/4HANA Cloud 1811 Release Blog
- Best practices for SAP S/4HANA Cloud here
- SAP S/4HANA Cloud User Community: register here
- Feature Scope Description here
- What’s New here
- Help Portal Product Page here
Follow us via @SAP and #S4HANA, or myself via Srivatsan Santhanam and LinkedIn