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Product Information

Discrete Industries in SAP S/4HANA Cloud 2102

Hello everyone, in my role at SAP I focus on product content; especially on discrete industry content here at SAP S/4HANA Product Content and Co-Innovation. I would like to share that content with you so that you can benefit in your end-to-end processes.

With the SAP S/4HANA Cloud 2102 release, the first discrete manufacturing Produce and Sell Standard Products end-to-end scenario was introduced.

Why the start going end-to-end with release 2102? 

By capturing an end to end process you can monitor and evaluate everything that your company does to achieve a certain result. The entire process should work as efficiently as possible for you from start to finish.

What was introduced for discrete industries with 2102 release? 

With this first end-to-end scenario for Produce and Sell Standard Products customers and partners can focus on production planning and execution for a serial-number-managed finished good in make-to-stock scenarios, as well as prompt reactions to incoming sales orders (sell from stock) in one batch:

Produce%20and%20Sell%20Standard%20ProductsFigure 1: Process Flow: Produce and Sell Standard Products Scenario (54U)

 

What is happening in this end-to-end scenario? 

I decided to divided this end-to-end scenario into its ingredients; like in a good cooking recipe, so that you can go through the whole process of baking a cake or just go to the steps where you need further information/help. This will give you the benefit for your business and a quick and easy baking time. I hope the result will be delicious.

Production Planning

This process enables you to ensure the availability of materials. It is typically performed by the MRP controller who monitors the material shortage situation and solves any issues on time. Another main task is to ensure that sufficient supplies have been planned to cover requirements — whether from sales orders, stock transfer orders, or from production, for example. The goal is to ensure that both customer and production demand are available on time and to avoid any disruptions due to missing parts.

I start this end-to-end video scenario by creating Planned Independent Requirements (PIRs). PIRs are used to perform demand management functions. A planned independent requirement contains one planned quantity and one date, or a number of planned independent requirements schedule lines, such as one planned quantity split according to dates. After that I will take a look at the material coverage.

Video 1: Material Requirements Planning with material coverage 

 

Sourcing and Procurement 

Purchasing allows you to order direct materials, consumable materials, and services. The purchasing department keeps track of the procurement process with the purchase order, the goods and invoice receipts, and service entry sheets. I the following video I will take a look at purchase requisitions, orders and inbound deliveries.

 

Video 2: Procurement with purchase requisitions and orders and inbound delivery 

 

To sum the document flow in this end-to-end scenario:

Procurement_Document_Overview

Figure 2: Document Flow Procurement

 

Manufacturing 

Manufacturing in SAP S/4HANA Cloud comprises solution capabilities for planning and controlling production, for manufacturing execution, and for quality management.

I focus in this video on monitoring material coverage, managing production orders, confirming production operation and posting goods movement for the finished product.

Let’s see what that looks like:

Video 3: Monitor Material Coverage and Manufacturing process 

 

To sum the document flow in this end-to-end scenario:

Operational_Document_Flow_ManufacturingFigure 3: Document Flow Manufacturing

Sales 

Sales supports your order and contract management, including sales master data, pricing, sales quotations, sales contracts, sales order management, billing, and sales rebates. You can create incentives for your sales agents. You can handle claims and process returns and refunds for your customers. You can monitor and analyze your sales business processes. You can also create output for your sales documents and billing documents. You can integrate your SAP S/4HANA Cloud system with other systems to optimize your sales processes. You can use APIs to connect business processes across your system landscape and integrate with external consumers of your services. Last but not least, you can manage your data through data aging, by blocking and deleting personal data, and through data destruction.

In the end-to-end video scenario; I focus on managing sales orders and creating outbound deliveries.

Video 4: Sales order and creating outbound delivery 

 

To sum the document flow in this end-to-end scenario:

Document%20Flow%20SalesFigure 4: Document Flow Sales

Quality Management

Quality Management enables you to ensure the quality of your products, processes, and services right from the start. It helps you to plan, execute, and monitor different types of quality inspections, for example, in procurement, production, or sales scenarios. Inspection plans help you to define how a quality inspection of one or several materials is to take place. For reuse purposes, you can integrate master data in your inspection plans. If defects occur, efficient nonconformance management features help you to report and process these defects to eliminate them and prevent them from recurring. By gaining better insights into your quality-related data, you can improve your processes and products and thereby achieve your corporate quality goals.

In this end-to-end scenario I will focus on record inspection results and making usage decisions.

Video 5: Quality Inspections and making using decisions  

Supply Chain 

Supply Chain in SAP S/4HANA Cloud comprises solution capabilities for managing sophisticated business processes for planning and optimizing stock and goods movements, checking the availability of products in the order creation process as well as handling shipping, warehousing, and transportation (in this scenario that means focus on outbound deliveries. Fully fledged transportation management capabilities are currently not supported, but internally discussed of how and when to integrate into the end-to-end scenario).

For scope item 54U it is important to mention that this scenario is inventory management based only. For a cloud warehouse-based scenario a new scope item is planned for the 2105 release.

In this end-to-end scenario I focus on outbound delivery management.

Video 6: Outbound delivery management

To sum the document flow in this end-to-end scenario:

Document%20Flow%20Supply%20ChainFigure 5: Document Flow Supply Chain

Finance 

With SAP S/4HANA Cloud you can simplify your financials with real-time data that is always reconciled. With journal entries as the single source of truth, data redundancies are eliminated enabling instant financial insight and a faster, more transparent close. Financial operations are optimized by using shared services to standardize processes and achieve lower costs per transaction. Predictive analytics streamlines decision-making and performance analysis, enabling you to improve the financial health of your organization.

In this end-to-end scenario I focus on accounts receivables and payables.

Video 7: Accounts receivables and payables

 

To sum the document flow in this end-to-end scenario:

Billing_Documents

Figure 6: Billing Journal Entries T-Account View

 

Supplier_Invoice

Figure 7: Supplier Invoice Journal Entries T-Account View

 

With this first Produce and Sell Standard Products end-to-end scenario in SAP S/4HANA Cloud our customers and partners get the benefits of:

  • Trigger production execution with a production plan
  • Explode the bill of material automatically when running the material requirements planning
  • Calculate target costs during order creation
  • Perform availability check and automatically determine a shipping point when an order is entered
  • Create billing document and postings for financials and controlling

Enjoy exploring and applying in your system and stay curious for more product content to come in the discrete/manufacturing industries. I am looking forward collaborating and exchanging ideas with you.

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