SAP S/4HANA for Central Procurement HUB system as backend/Connected system

SAP S/4HANA for central procurement HUB system as backend/Connected system

Introduction:

In this blog post i will discuss about the options for centralizing the business process of procurement artifacts in the central hub system where the S/4HANA system can acts as both Central hub system and connected backend system  to centralize all the procurement business artifacts getting created in central hub system.

System

What is SAP S/4HANA for central procurement hub system?

SAP S/4HANA for central procurement hub system is the system where the companies procurement processes / Data are executed  / Consolidated centrally in location and this software is delivered as an addon to SAP S/4HANA OP and  in SAP S/4HANA cloud it does not require any addon installation as its delivered based on scenario subscription.

How to align the procurement process which is executed locally in S/4HANA after the installation of central procurement addon? 

SAP S/4HANA for central procurement business process can also be aligned with the local procurement process which is already executed in the SAP S/4HANA system.

For Ex: Consider a company headquarters and subsidiary locations where SAP S/4HANA system is   already used, and company procurement processes are executed locally and their procurement processes are decentralized and later the company decides to centralize the procurement process between the company headquarters and subsidiary location.

In order to centralize the business process company goes for SAP S/4HANA for central procurement which is delivered as an addon to the SAP S/4HANA system which is used in the company headquarters, SAP S/4HANA for central procurement which is installed on top of SAP S/4HANA system also supports to align the local procurement process carried out in Headquarters location system to the central procurement process and setup, SAP S/4HANA for central procurement supports the approach of same hub system can also be used as backend system and the process and the procurement process can be executed executed centrally like one other backend system and the process are enabled and we have two options to support this process of enabling same hub system as backend system.

1.  SAP S/4HANA Cloud HUB system setup

SAP S/4HANA HUB system can also be used as the backend/Connected system, In order to enable the communication to the same system.

•     Steps to configure communication arrangement in SAP S/4HANA CLOUD System.

Create In/out bound communication user to the same system

Create Communication system to the same hub system

Create communication arrangement for the communication scenario as per the                                     business requirement

•       Communication scenario:

SAP_COM_0090 – Central requisition

SAP_COM_0243 – Central Contract

SAP_COM_0267 – Central Purchasing   Etc…

 2. SAP S/4HANA OP HUB system

SAP S/4HANA OP HUB system can be used also as a backend system with the required addon installation mentioned in the note below and configure the required points as per requirement in the setup guide.

https://launchpad.support.sap.com/#/notes/2817365

https://launchpad.support.sap.com/#/notes/2689143

Conclusion:

Customers also have an option to align the procurement process which is executed locally in SAP S/4HANA HUB system with the central procurement setup and process which is executed globally in different locations of the company.

DISCLAIMER:

All views expressed in this blogs are my own, it may also subject to change