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Author's profile photo Sahil Grover

Ariba Integration with S/4HANA Cloud Business Process

Introduction

The SAP S/4HANA Cloud to Ariba Network integration through SAP Ariba Cloud Integration Gateway supports the exchange of documents related to standard procurement process like Request for Quotation, Purchase Order, Advance Ship Notice, Goods Receipt, Invoice, Invoice Status Update, and Payment Advice.

 

In this blog series, I will give you the overview to set up  Ariba Integration with SAP S/4HANA Public cloud.

The blog is built as a series of 4 parts and present the key highlights for:

Part 1 : Ariba Integration with S/4HANA Cloud Business Process

Part 2 : Technical configuration in S/4HANA Cloud for integrating S/4HANA Cloud with Ariba

Part 3 : Technical configuration in Ariba for integrating S/4HANA Cloud  with Ariba

Part 4 : Trouble Shooting and FAQ’s for integrating Ariba with S/4HANA Cloud

Business Process Flow

For our blog we have modeled scope item Automation of Source-to-Pay with Ariba Network (‏42K‏). The process flow is a subset of process flow in 42K. For more details you can check the setup guide as per 42K scope item.

Automation of purchase order to payment processing enables  to connect seamlessly from SAP S/4HANA Cloud to  suppliers in the Ariba Network. The Purchase Order created can be directly send to Supplier in Ariba Network & confirmation of Invoice, Shipping notification/service entry sheet and invoice can be directly received in S/4HANA Cloud from Supplier in Ariba Network. Procurement is possible for both direct or indirect materials and in the procurement of project-based services processes.

Process Flow for buying Goods in SAP S/4HANA Cloud to your suppliers in the Ariba Network

  • Automatically approved  Purchase Orders are sent from SAP S/4HANA Cloud to Supplier via Ariba Network
  • Automatic Order confirmations from Suppliers
  • Shipping Note created by Supplier in Ariba Network is automatically converted into Inbound Delivery in S/4HANA Cloud
  • Put away of goods and Post goods receipt is done in S/4HANA Cloud
  • Automatically goods receipt is sent to Suppliers
  • Receive Supplier Invoice electronically from Suppliers

 

 

 

Process Flow for buying Services in SAP S/4HANA Cloud to your suppliers in the Ariba Network

  • Automatically approved  Purchase Orders are sent from SAP S/4HANA Cloud to Supplier via Ariba Network
  • Automatic Order confirmations from Suppliers
  • Process Service Entry Sheet sent by your suppliers electronically in the Ariba Network
  • Receive invoices from suppliers electronically in the Ariba Network
  • Receive Supplier Invoice electronically from Suppliers

Business Benefits

  • Reduce transaction costs
  • Speed up procurement processes by eliminating the paperwork and digitizing the process
  • Improve compliance
  • Reduce inquiries about payments from suppliers
  • Enhance Productivity of the various staff involved in the process

Conclusion

This blog post should help you to understand in detail about business process flow between Ariba and SAP S/4HANA Cloud.

Thanks for reading this blog post, hopefully the blog post was informative.

For more information

https://rapid.sap.com/bp/#/browse/scopeitems/42K

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      5 Comments
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      Author's profile photo CHANDRASHEKHAR TIPRE
      CHANDRASHEKHAR TIPRE

      Thanks for Excellent Information with  great coverage with Video !

      Author's profile photo Anshul Dalal
      Anshul Dalal

      Great post Sahil, will look forward to the follow-up posts in this series.

       

      Thanks

      Anshul

      Author's profile photo Sahil Grover
      Sahil Grover
      Blog Post Author

      Thanks Anshul,

       

      All blogs are published now.

       

      Regards

      Sahil

      Author's profile photo Syambabu Allu
      Syambabu Allu

      Hi Sahil,

      Thanks for sharing in detail.

      Thank you,

      Syam

      Author's profile photo Lysa Zhang
      Lysa Zhang

      HI Sahil,

      Thank you for sharing in detail.

      I would have a question about the standard business processes between SAP ARIBA & S/4 HANA Cloud. Is it possible to remove or add some processes which are not shown in the process flow ?

      As example, we would like to Create PO IN ARIBA, and then replicates the PO in S/4 HANA CLOUD ?

      I can see that there are some standard API which can exports PO.

      The modification of flows are possible in the 2NV scope for example ?

       

      Thank you

      Regards

      Lysa