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Author's profile photo Beth Grant

Innovation: Sourcing and Procurement in SAP’s Cloud ERP World – Part 2

This is the second part of my two-part blog post Innovation: Sourcing and Procurement in SAP’s Cloud ERP World – Part 1. If you haven’t read the first-part, you can check it out here.

In the first part, we summarised the release highlights from 1905 and then took a deeper dive into the latest innovations from SAP S/4HANA Cloud’s 1908 release in the areas of: Operational Procurement and Sourcing and Contract Management. Now, we’ll take a look at the developments in the areas of Central Procurement, Procurement Analytics and Invoice and Payables Management, and how the latest innovations from 1908 help tackle the common pain points experienced by procuring organisations.

Central Procurement


Pain Point: Manual effort, Managing the sourcing of requirements, Difficulties saving

1908 Innovation: Reduce manual effort by initiating sourcing events for purchase requisitions from Manage Purchase Requisitions Centrally app

  • Process purchase requisitions across different connected SAP software systems, using Manage Purchase Requisitions Centrally app
  • Collect central supplier quotations for purchase requisitions that originated from multiple back-end systems
  • Award appropriate central supplier quotations from collected quotations
  • Create central contract for distribution to the connected systems by creating purchase orders/central contracts
  • Create purchase orders in systems from which the purchase requisitions originated so that requests can be fulfilled


Pain Point: Lack of efficiency, Field control not enabled, Ineffective use of data

S4HC Innovation: Increase process efficiency by providing flexible field control in central purchase contracts

  • Enable user with BAdI MM_PUR_S4_CCTR_FLDCTRL_SIMPLE
  • Control field properties of standard fields
  • Use data in a central contract to dynamically control field properties at runtime


Pain Point: Poor focus on worklist, Central control not enabled

S4HC Innovation: Reduced manual efforts through the ability to resubmit and close purchase requisitions in the Manage Purchase Requisitions Centrally app

  • Close Purchase Requisitions – Follow-on activity is stopped
  • Defer Purchase Requisitions – User able to set timelines to start showing purchase requisitions automatically after a set time


Pain Point: Check/Change Data inconsistency, Lack of custom validations/values

1908 Innovation: Increase data consistency by implementing “check” and “change” business add-ins (BAdIs) in central purchase contracts

  • “Check” BAdI – Check consistency of business object data before saving central contract and perform custom validations for header, item, item conditions, and distribution data of central contract
  • “Change” BAdI – Change business object data before saving central contract and determine custom values for header, header distribution, item, and item distribution data of central contract


Pain Point: No single place to monitor/view/access errors, Lack of ability to further investigate

1908 Innovation: Improvisations Centralized business and technical monitoring in SAP S/4HANA for central procurement

  • Holistic view of procurement document transfers that resulted in errors
  • View of extractions of purchase requisition and purchase order data that resulted in errors
  • Access to errors that occurred during data transfers/job extractions


Pain Point: No single point of access

1908 Innovation: Increase process transparency by providing central invoice monitoring in S/4HANA for Central Procurement

  • Central worklist provided for supplier invoices that originate in connected SAP ERP, SAP S/4HANA, or SAP S/4HANA Cloud software systems
  • Supports SAP ERP application, as of SAP ERP Central Component 6.0 enhancement package 6, and SAP S/4HANA, as of version 1709
  • Displays only the object page for supplier invoices along with the option to navigate to invoice display transactions in connected systems


Procurement Analytics


Pain Point: Lack of transparency, Need for improved real-time analytics

1908 Innovation: Increase real-time visibility into analytics for sourcing in SAP S/4HANA Cloud

  • Real-time analytics about sourcing events
  • Compare different sourcing events such as: Internal sourcing requests, external sourcing requests, external pricing request


Invoice and Payables Management


Pain Point: Lack of flexibility in area of taxes

1908 Innovation: Improve tax invoicing efficiency by enabling time-dependent taxes

  • Ability to maintain use of a tax code, even if it varies over time
  • Maintenance of new tax rates in a single location once a tax rate is adapted, versus having to adapt tax codes in many different configuration UIs
  • In supplier invoice processing, time-dependent taxes allow user to define one tax code for several periods with individual tax rates
  • One tax code for different tax rates


Important Links:

This concludes the list of innovations from SAP S/4HANA Cloud’s 1908 release for Sourcing and Procurement. Happy Procuring in the Cloud!

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