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Intelligent ERP Update: SAP S/4HANA Cloud 1905 for Sourcing & Procurement

This blog post provides you an overview of key highlights in the area of Sourcing & Procurement of our SAP S/4HANA Cloud 1905 release.

 

Situation Handling for Predictive Contract Consumption (BMD)

First, I’d like to start with new situation handling functionality coming from the area of operational procurement.

All of you that have been following past S/4HANA cloud releases closely, might be already aware that with 1705 release, we launched the predictive analytics for contract consumption. Now on top of this existing functionality, we have enhanced further and included situation handling for predictive contract consumption. With the new functionality, purchasing organization is proactively informed about the contract consumption which is expected to be consumed 100%.

The situation notification is sent to the responsible purchasing department which can be configured in the Manage Teams and Responsibilities app. By default, the situation is triggered 30 days prior but the date is configurable and also parameters like supplier, material group, purchase organization can be used additionally for the configuration.

 

Shop on behalf in self-service requisition (18J)

The next highlight brings further enhancement to existing self-service requisition process.

In self-service requisitions, now one can shop on behalf of other users. To do this, you can assign a requestor (other than yourself) to purchase requisitions during creation. You can further restrict a group of users to shop on behalf of the “requestor” role. For example, an assistant can create purchase requisitions for a manager.

There are two options to shop on behalf:

1) Group-based: Here You can only shop on behalf of the employee who belongs to the same Requisitioning Group.

2) Company Code based: You can shop on behalf of the employee who belongs to the same company code.

Both parties will receive a notification requesting confirmation of goods. And also, both parties receive a notification if a purchase requisition has been rejected by the approver.

 

Monitor Central Purchase Requisition items (1QR)

Let`s now turn to the next highlight, Monitor Central Purchase Requisition items. Over the last releases, we enabled the main functionalities, such as Monitoring central purchase orders and central purchase contracts. Now we take the next step and provide analytical capabilities for central purchase requisitions. In this scenario, global purchasers at the headquarters can now monitor purchase requisitions fetched from connected back-end systems in their central S/4HANA cloud system. For procurement department, this transparency is crucial, so that purchasing organizations can take the right actions to ensure business to run smoothly.

 

Centralized business with Central Purchase Requisitions & Central Procurement Operations Monitor (2XT, 1XI)

Another key highlight of the 1905 release is Central Procurement Operations Monitor. this app provides a holistic view of procurement-document transfers between S/4HANA hub system and connected backend systems. With this, the procurement team can monitor the errors that occurred during data transfers such as replication of purchase requisitions and extracting the source of supply in Hub and connected systems.

The app monitors the number of purchase requisition replications that have failed due to errors. And also displays the number of replications that need you to take action in either the SAP S/4HANA hub system or in the corresponding connected systems. Selecting either of the Need Attention in Hub System or Need Attention in Connected System options opens the Central Procurement Interface Monitor app, which provides more detailed information about the failed replication and allows you to investigate the cause.

Similarly, Monitors the number of source of supply extraction jobs that have failed due to errors. Selecting the Failed Source of Supply Extraction Jobs option opens the Central Procurement Job Monitor app, which provides more detailed information about the failed job and allows you to restart the job if necessary.

To further streamline business processes across headquarter and subsidiaries, we have enhanced the Manage Purchase Requisitions Centrally App. With this enhancement, we can directly create centralized purchase contracts within the app and also map existing Purchase orders to Central purchase Requisitions. While creating centralized purchase contracts, if an info record exists in the subsidiary at plant or purchasing organization level, changes are then updated in the connected systems accordingly.

 

SAP Enable Now

Another hot topic that I would like to draw your attention to is the new SAP Enable Now framework, our harmonized onboarding and continuous enablement concept which is embedded directly in SAP S/4HANA Cloud. The framework provides standard enablement content which is constantly updated and comprises context-sensitive help, guided tours and tutorials directly within SAP S/4HANA Cloud. In addition, you can customize or produce your own enablement content and upload to SAP S/4HANA Cloud. For more information on efficient End-User enablement with SAP Enable Now, check out the following links:

 

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

 

Follow us via @SAP and #S4HANA, or myself via @SSaimadhav and LinkedIn

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